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: 811-2687
Name of Registrant: Vanguard Municipal Bond Funds
Address of Registrant: P.O. Box 2600
Valley Forge, PA 19482
Name and address of agent for service: R. Gregory Barton, Esquire
P.O. Box 876
Valley Forge, PA 19482
Registrant's telephone number, including area code: (610) 669-1000
Date of fiscal year end: October
Date of reporting period: November 1, 2002 - April 30, 2003
Item 1: Reports to Shareholders
VANGUARD(R) MUNICIPAL BOND FUNDS
SEMIANNUAL REPORT
APRIL 30, 2003
VANGUARD(R) TAX-EXEMPT MONEY MARKET FUND VANGUARD(R) SHORT-TERM TAX-EXEMPT FUND
VANGUARD(R) LIMITED-TERM TAX-EXEMPT FUND VANGUARD(R) INTERMEDIATE-TERM
TAX-EXEMPT FUND VANGUARD(R) INSURED LONG-TERM TAX-EXEMPT FUND VANGUARD(R)
LONG-TERM TAX-EXEMPT FUND VANGUARD(R) HIGH-YIELD TAX-EXEMPT FUND
THE VANGUARD GROUP LOGO(R)
ETERNAL PRINCIPLES
Markets change, but the principles of successful investing do not. During the
past few years, radical upheaval in the stock market has displayed the power of
this simple truth to dramatic effect.
In the late 1990s, stocks experienced one of the greatest bull markets in
financial history. Then, in March 2000, the longest downturn since the Great
Depression began.
In both bull and bear markets, however, the principles of successful
investing are identical: balance, diversification, and attention to costs.
Balance among stock, bond, and money market funds allows you to pursue long-term
growth while moderating your risk. Diversification limits your exposure to the
disasters that can befall any one security or sector. Attention to costs means
you keep a larger share of any rewards produced by your investments.
These principles are timeless. In fact, they're the basis of our very first
mutual fund--Vanguard(R) Wellington(TM) Fund, a balanced portfolio established
in 1929. Over time, balance, diversification, and attention to costs have proven
to be the master keys to investment success.
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SUMMARY
* Six of the seven Vanguard Municipal Bond Funds outpaced the average returns
of their peers during the period.
* During a period of heightened sensitivity to risk, both taxable and
tax-exempt bonds provided solid returns.
* In a rare turn of events, the shortest-term tax-exempt securities provided
higher yields than their fully taxable counterparts.
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CONTENTS
1 Letter from the Chairman
7 Report from the Adviser
10 Fund Profiles
17 Glossary of Investment Terms
18 Performance Summaries
22 Results of Proxy Voting
23 Financial Statements
42 Advantages of Vanguard.com
LETTER FROM THE CHAIRMAN
FELLOW SHAREHOLDER,
Most fixed income securities generated solid returns during the six months ended
April 30, 2003, as declining interest rates boosted bond prices. Tax-exempt
bonds performed especially well, outpacing U.S. Treasury securities.
The Vanguard Municipal Bond Funds provided six-month returns ranging from
0.6% for the Tax-Exempt Money Market Fund to 4.3% for the Long-Term Tax-Exempt
Fund's Admiral Shares. Of our seven funds, six returned more than the average
for their respective peer groups. The exception, the Intermediate-Term
Tax-Exempt Fund, matched the 3.2% return of its average rival.
The table at left lists total returns for all share classes in our
municipal bond portfolios. (Details on the per-share components of your fund's
returns appear on page 5.) Total return is presented as the sum of capital
return--the overall change in share price--and income return. With the exception
of the Money Market Fund, all of the funds experienced meaningful price
appreciation during the past six months. (The Money Market Fund maintained a
share price of $1, as is expected but not guaranteed.)
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COMPONENTS OF TOTAL RETURNS SIX MONTHS ENDED
APRIL 30, 2003
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SEC
VANGUARD TOTAL INCOME CAPITAL ANNUALIZED
TAX-EXEMPT FUND RETURN RETURN RETURN YIELD*
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MONEY MARKET** 0.6% 0.6% 0.0% 1.24%
SHORT-TERM
Investor Shares 1.4 1.0 0.4 1.37
Admiral Shares 1.5 1.1 0.4 1.45
LIMITED-TERM
Investor Shares 2.7 1.7 1.0 2.12
Admiral Shares 2.7 1.7 1.0 2.20
INTERMEDIATE-TERM
Investor Shares 3.2 2.2 1.0 3.05
Admiral Shares 3.2 2.2 1.0 3.12
INSURED LONG-TERM
Investor Shares 4.0 2.3 1.7 3.47
Admiral Shares 4.1 2.4 1.7 3.54
LONG-TERM
Investor Shares 4.2 2.3 1.9 3.73
Admiral Shares 4.3 2.4 1.9 3.80
HIGH-YIELD
Investor Shares 3.9 2.6 1.3 4.28
Admiral Shares 3.9 2.6 1.3 4.36
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* 7-day yield for the Tax-Exempt Money Market Fund; 30-day yield for the
other funds.
** An investment in a money market fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.
Although the fund seeks to preserve the value of your investment at $1 per
share, it is possible to lose money by investing in the fund.
The flip side of rising bond prices, however, is shrinking bond yields. The
table also shows our funds' April 30 yields, all of which were down
substantially
1
from the levels of just six months ago. The steepest declines were experienced
by those funds with the shortest maturities. For example, the yield of the Money
Market Fund declined by about one-fourth (0.41 percentage point) to 1.24%. At
the other end of the maturity spectrum, the yield of the Long-Term Tax-Exempt
Fund's Investor Shares declined by a more modest 19 basis points (0.19
percentage point).
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MARKET BAROMETER TOTAL RETURNS PERIODS ENDED APRIL 30, 2003
SIX ONE FIVE
BONDS MONTHS YEAR YEARS*
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Lehman Aggregate Bond Index 4.3% 10.5% 7.6%
(Broad taxable market)
Lehman Municipal Bond Index 3.6 8.5 6.3
Citigroup 3-Month Treasury Bill Index 0.6 1.5 4.0
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STOCKS
Russell 1000 Index (Large-caps) 4.8% -13.5% -2.3%
Russell 2000 Index (Small-caps) 7.6 -20.8 -2.5
Wilshire 5000 Index (Entire market) 5.0 -13.6 -2.6
MSCI All Country World Index Free
ex USA (International) 3.1 -15.2 -4.9
================================================================================
CPI
Consumer Price Index 1.4% 2.2% 2.5%
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*Annualized.
It's worth noting that a bond fund's semiannual return includes just a half
year's worth of interest income but reflects the full impact of any price
changes resulting from interest rate trends. For a full-year perspective on the
interplay of these components, we also present a 12-month breakdown of your
fund's capital and income returns on page 4.
BONDS DEFIED EXPECTATIONS BY RISING
During the six months ended April 30, 2003, the Lehman Brothers Aggregate Bond
Index--a broad measure of the taxable bond market--returned 4.3%. Despite
intense fiscal pressure on state and local governments, municipal bonds also
performed well, with the Lehman Municipal Bond Index returning 3.6%.The strong
results are somewhat surprising given that bonds began the period with prices
already high and yields very low, a situation that would generally portend
unimpressive returns. Nonetheless, the bond market rallied further, largely as a
result of two factors: First, the combination of war in Iraq and continuing
gloom in the U.S. economy heightened investors' interest in the relative safety
of fixed income securities. Second, corporate bonds rebounded as investors
regained some confidence in the sector.
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Admiral(TM) Shares A lower-cost class of shares available to many longtime
shareholders and to those with significant investments in the fund.
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Long- and intermediate-term interest rates fell modestly during the period,
and the yield of the
2
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TOTAL RETURNS SIX MONTHS ENDED
APRIL 30, 2003
---------------------------------------------
AVERAGE
TAX-EXEMPT FUND VANGUARD COMPETING
INVESTOR SHARES FUND FUND* DIFFERENCE
- --------------------------------------------------------------------------------
Money Market 0.6% 0.3% +0.3%
Short-Term 1.4 1.2 +0.2
Limited-Term 2.7 2.0 +0.7
Intermediate-Term 3.2 3.2 0.0
Insured Long-Term 4.0 3.7 +0.3
Long-Term 4.2 3.3 +0.9
High-Yield 3.9 2.7 +1.2
- --------------------------------------------------------------------------------
*Derived from data provided by Lipper Inc.
3-month U.S. Treasury bill--a fair proxy for the shortest-term
securities--declined 34 basis points (0.34 percentage point) to 1.11%. The
pattern was the same in the municipal bond market, with short-term interest
rates dropping more steeply than longer-term rates. The half-year saw one very
unusual development: The shortest-term municipal securities, such as those in
the Tax-Exempt Money Market Fund, provided higher yields than their taxable
counterparts, even before accounting for the significant tax advantages of
municipal notes.
STOCKS OPENED AND CLOSED STRONGLY
During the six months, the overall U.S. stock market (as measured by the
Wilshire 5000 Total Market Index) returned 5.0%, a performance reflecting strong
rallies at the beginning and end of the period. Inside these bookends, however,
stock prices drifted lower.
TALENTED MANAGERS AND LOW COSTS CARRIED THE DAY
The Vanguard Municipal Bond Funds made the most of a favorable six months for
bond investors. Six of the seven funds outperformed the average returns of their
peer funds, as shown in the above table.
The Intermediate-Term Fund matched its peers' average result. This fund's
performance was hampered somewhat by its holdings in airline-related bonds,
which are municipal securities issued to finance airport improvements and
expansions. The prices of these bonds have declined as the airline industry
continues to experience one of the worst periods in its history. To a lesser
extent, airline-related securities were also a drag on some of our other
tax-exempt funds, but these funds kept ahead of peer averages thanks both to
generally good security selection by Vanguard's Fixed Income Group and to our
low operating costs.
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Six of the seven municipal bond funds outperformed their average rivals. The
Intermediate-Term Fund matched its average peer.
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3
The High-Yield Tax-Exempt Fund's margin of outperformance was especially
impressive: Its return was more than a percentage point higher than the average
for peer funds. The fund benefited from its customary emphasis on higher-quality
issues within the high-yield sector, as these securities outperformed those with
lower credit ratings during the six-month period. Our fund's low costs also
contributed significantly to its advantage. The annualized expense ratio of the
High-Yield Fund's Investor Shares for the half-year was 0.17%, while the average
competing fund charged an imposing 1.24%. Such a difference is particularly
notable in the municipal market, where yields are typically lower than in the
taxable bond market or the stock market. When yields are lower, investment costs
have a proportionally larger impact. If a stock fund returns 10% a year, an
expense ratio of 1% may not seem egregious. In a municipal bond fund returning
3% a year, however, 1% is very substantial.
All of our municipal bond funds had notably lower expenses than their
average peers. Five of the seven funds' Investor Shares had expense ratios of
0.17%, while the Money Market Fund incurred annualized operating costs equal to
0.16% of its average net assets and the Long-Term Fund had an expense ratio of
0.18%. The funds' Admiral Shares had even lower expenses than the Investor
Shares.
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COMPONENTS OF TOTAL RETURNS TWELVE MONTHS ENDED
APRIL 30, 2003
---------------------------------------------
TAX-EXEMPT FUND TOTAL INCOME CAPITAL
INVESTOR SHARES RETURN RETURN RETURN
- --------------------------------------------------------------------------------
Money Market 1.3% 1.3% 0.0%
Short-Term 3.1 2.4 0.7
Limited-Term 5.5 3.7 1.8
Intermediate-Term 6.2 4.4 1.8
Insured Long-Term 9.1 4.8 4.3
Long-Term 8.8 4.9 3.9
High-Yield 6.4 5.4 1.0
- --------------------------------------------------------------------------------
Low costs also allow our experienced fund managers to do what they do best:
select securities and structure portfolios so as to deliver superior long-term
performance while strictly controlling risk. Because our managers aren't
fighting against a crushing expense burden, they feel no pressure to chase
suspect securities, or engage in iffy trading strategies, in a quest for return.
DIVERSIFICATION: THE PRUDENT RESPONSE
During the stock market's long downturn, municipal and taxable bonds have
provided strong returns. The lesson is not that bonds are a better asset class,
but that a long-term portfolio should be diversified across stock, bond, and
money market funds. Bonds won't always lead, and stocks won't always lag. Over
time, diversification has proven to be the only prudent strategy in the face of
changing market conditions.
4
That's why we advise investors to establish an allocation of stock, bond,
and money market funds consistent with their goals, time horizon, risk
tolerance, and unique financial circumstances. Our municipal bond funds can play
an important role in a diversified portfolio, providing both income and some
counterweight to the ups and downs of the stock market.
Sincerely,
/S/ JOHN J. BRENNAN
John J. Brennan
Chairman and Chief Executive Officer
MAY 14, 2003
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FUND STATISTICS OCTOBER 31, 2002-APRIL 30, 2003
NET ASSET VALUE
PER SHARE SIX MONTHS
----------------------- ---------------------
OCTOBER 31, APRIL 30, INCOME CAPITAL
TAX-EXEMPT FUND 2002 2003 DIVIDENDS GAINS
- --------------------------------------------------------------------------------
MONEY MARKET $ 1.00 $ 1.00 $0.006 $0.000
SHORT-TERM
Investor Shares 15.73 15.79 0.167 0.000
Admiral Shares 15.73 15.79 0.172 0.000
LIMITED-TERM
Investor Shares 11.00 11.11 0.184 0.000
Admiral Shares 11.00 11.11 0.188 0.000
INTERMEDIATE-TERM
Investor Shares 13.55 13.65 0.286 0.040
Admiral Shares 13.55 13.65 0.290 0.040
INSURED LONG-TERM
Investor Shares 12.85 12.99 0.287 0.083
Admiral Shares 12.85 12.99 0.291 0.083
LONG-TERM
Investor Shares 11.36 11.52 0.264 0.051
Admiral Shares 11.36 11.52 0.268 0.051
HIGH-YIELD
Investor Shares 10.54 10.68 0.267 0.000
Admiral Shares 10.54 10.68 0.270 0.000
- --------------------------------------------------------------------------------
5
- --------------------------------------------------------------------------------
IAN MACKINNON TO RETIRE
Vanguard Managing Director Ian A. MacKinnon, who has served this company and its
shareholders for more than two decades as head of our Fixed Income Group, will
retire on June 30. It's impossible to adequately summarize Ian's many
accomplishments, but I must express my deep gratitude to him for establishing
our fixed-income practices and philosophy, and serving our shareholders with
great skill, integrity, and commitment since he started up our Fixed Income
Group in 1981. He will leave behind an outstanding performance record in our
money market and bond funds, a tradition of excellence, and a terrific team of
investment professionals. We wish him the very best.
Robert F. Auwaerter, who also has more than 20 years' experience managing
Vanguard's fixed income funds, will oversee all of the group's portfolio
management activities.
George U. Sauter, managing director of our Quantitative Equity Group, will
assume overall responsibility for the Fixed Income Group in the newly created
position of chief investment officer.
- --John J. Brennan
- --------------------------------------------------------------------------------
6
REPORT FROM THE ADVISER
During the six months ended April 30, 2003, six of the seven Vanguard Municipal
Bond Funds earned total returns that topped those of their average mutual fund
peers. However, the yield of each of our funds was lower than it was six months
ago, reflecting the declining level of interest rates.
THE INVESTMENT ENVIRONMENT
The economy appears to be muddling along. The nation's inflation-adjusted gross
domestic product is growing but hardly by leaps and bounds. First-quarter real
GDP expanded at an annual rate of 1.9%, up from a rate of 1.4% in the final
three months of 2002.
Other economic data have been mixed. Consumer confidence fell dramatically
during the prelude to the war in Iraq but bounced back shortly after the major
hostilities there ended. However, the post-war "relief rally" in sentiment has
been anemic at best. Manufacturers continue to struggle, and business investment
has shown few signs of improvement.
Economic weakness has persisted despite a level of interest rates not seen
since the 1950s. After an extended string of cuts, the target federal funds rate
stands at 1.25%. The Federal Reserve Board has signaled that rate cuts are on
hold for now and seems to be taking a "do whatever it takes" attitude to
preserve a recovery. Inflation is no longer a concern--the core rate of
inflation in consumer prices (which excludes food and energy prices) was just
1.5% for the 12 months ended April 30. Although unlikely, deflation has recently
emerged as a threat.
- --------------------------------------------------------------------------------
INVESTMENT PHILOSOPHY
Each fund holds a diversified group of municipal bonds designed to produce a
high level of current, tax-exempt income consistent with each fund's maturity
and quality mandates. In managing the funds, Vanguard Fixed Income Group follows
a disciplined investment policy, meeting well-defined standards for credit
quality and keeping each fund within its stated maturity range, while seeking to
exceed, with reasonable consistency over the long term, average returns achieved
by comparable funds.
- --------------------------------------------------------------------------------
Some market observers are predicting another Fed rate cut. Federal Reserve
Chairman Alan Greenspan hasn't tipped his hand, saying in recent testimony
before Congress only that the Fed intends to help keep the economy moving.
Overall, it appears as though consumers are still carrying the economy on
their backs. However, they are showing signs of tiring. Unemployment rose to 6%
in April, sending a chill throughout the labor market.
7
The economy's bright spot is still the housing market. Price increases seem
to be holding and financing remains at extremely attractive levels, thanks to
low--and falling--interest rates.
- --------------------------------------------------------------------------------
YIELDS ON MUNICIPAL BONDS
(AAA RATED GENERAL-OBLIGATION ISSUES)
CHANGE
MATURITY APRIL 30, 2003 OCTOBER 31, 2002 (BASIS POINTS)
- --------------------------------------------------------------------------------
2 years 1.37% 1.70% -33
5 years 2.44 2.66 -22
10 years 3.54 3.64 -10
30 years 4.61 4.92 -31
- --------------------------------------------------------------------------------
Source: The Vanguard Group.
MUNIS TOP TREASURIES, BUT ALL IS NOT ROSY IN THE MUNI WORLD
Municipal securities outperformed U.S. Treasury securities during the recent
bond market rally. For munis, prices rose--and yields fell--across maturities. A
good portion of the outperformance occurred during the later stages of the
six-month period, when muni prices rose more than Treasury prices. The table
above provides details on the decline in muni yields.
State tax revenues continued to fall in the fiscal half-year, and the
declines created large state and local government budget gaps. Cuts in
government services and staffs have been ongoing, but these moves haven't helped
balance many budgets. It still remains politically difficult to raise taxes,
although many municipalities are considering this option out of desperation.
Most states are also looking at one-time revenue enhancement options, such
as securitizing tobacco-settlement payments, or are focusing on multiple smaller
usage-based tax increases. The issuance of tobacco-settlement debt has recently
swept the tax-exempt market. Lately, these issues have run into trouble as a
result of potentially large litigation settlement awards in individual and class
action suits against the tobacco companies. Because of this, it now appears that
states will be forced to focus on other means to raise funds until the market
obtains a clear view of the durability of tobacco-settlement payments. (The
Vanguard Municipal Bond Funds do not currently own any tobacco-related debt.)
The difficulties of several major airline carriers affected the municipal
debt market. Particularly troublesome was the filing by UAL (the parent of
United Airlines) for reorganization under Chapter 11 of the federal bankruptcy
laws. Separately, in early 2003, American Airlines came close to filing for
bankruptcy but averted the move after successful negotiations with its unions to
restructure labor costs and further cost-cutting. American still remains in a
difficult and critical condition. The Vanguard Municipal Bond Funds own "special
facilities" debt from both United Airlines and American in their portfolios.
8
DEBT SUPPLY RISES
During the half-year, the supply of municipal debt increased 16.6% from the same
period a year earlier. As noted in our annual report to you six months ago,
there were several large municipal refinancings and restructuring issues early
in the fiscal period, including a New York Metropolitan Transportation Authority
issue that totaled $15.6 billion. In addition, the State of California brought
to market the largest single municipal offering ($10.8 billion) in history. The
proceeds will be used to reimburse the state for expenditures resulting from the
energy crisis in 2001 and to stabilize California's energy needs. The State of
California has also experienced several credit downgrades as a result of its
significant and troublesome budget deficit. What's more, New York City is still
having financial difficulty related to the September 11, 2001, tragedy. The loss
of jobs and the decrease in economic activity since the tragedy have created
budget deficits that are requiring ongoing tax-exempt financing.
MUNIS OFFER GOOD VALUE FOR MANY INVESTORS
During the six months, municipal bonds offered terrific value. The yield of a
2-year, tax-exempt municipal note on April 30 was 1.37%, just a bit lower than
the 1.48% yield of a comparable Treasury security, whose income is subject to
federal tax. For longer AAA-quality maturities, 5-year notes offered 89% of the
yield of Treasuries; 10-year notes, 92%; and 30-year bonds, 97%.
Of course, such value is not always available in the municipal bond market.
But for many investors, well-managed, low-cost portfolios of municipal bonds can
be an integral part of a diversified investment program. With yields at such low
levels--money market yields were hovering around 1% on April 30--low costs are
especially valuable.
IAN A. MACKINNON, Managing Director
CHRISTOPHER M. RYON, Principal
PAMELA WISEHAUPT TYNAN, Principal
REID O. SMITH, Principal
Vanguard Fixed Income Group
MAY 23, 2003
9
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FUND PROFILES AS OF APRIL 30, 2003
These Profiles provide snapshots of each fund's characteristics, compared where
indicated with both an appropriate market index and a broad market index. Key
terms are defined on page 17.
TAX-EXEMPT MONEY MARKET FUND
- -----------------------------------------
FINANCIAL ATTRIBUTES
Yield 1.2%
Average Maturity 20 days
Average Quality MIG-1
Expense Ratio 0.16%*
- -----------------------------------------
- ------------------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
MIG-1/SP-1 69.4%
A-1/P-1 28.0
A-2/MIG-2 1.0
AAA 1.6
- ------------------------------------------------------
Total 100.0%
- ------------------------------------------------------
- ------------------------------------------------------
LARGEST STATE CONCENTRATIONS (% OF TOTAL NET ASSETS)
Texas 12.3%
Illinois 9.8
California 6.6
Michigan 5.4
Pennsylvania 5.0
Florida 4.2
Colorado 4.0
New York 4.0
Georgia 3.8
Massachusetts 3.2
- ------------------------------------------------------
Top Ten 58.3%
- ------------------------------------------------------
*Annualized.
10
SHORT-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Issues 400 5,765 46,235
Yield 1.8% 3.6%
Investor Shares 1.4%
Admiral Shares 1.5%
Yield to Maturity 1.5% -- --
Average Coupon 3.5% 5.2% 5.2%
Average Maturity 440 days 2.9 years 13.8 years
Average Quality AA+ AA+ AA+
Average Duration 1.1 years 2.5 years 7.8 years
Expense Ratio -- --
Investor Shares 0.17%+
Admiral Shares 0.11%+
Cash Investments 0.3% -- --
- --------------------------------------------------------------------------------
- ------------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
AAA 32.2%
AA 62.6
A 3.4
BBB 1.7
BB 0.1
B 0.0
Not Rated 0.0
- ------------------------------------------------
Total 100.0%
- ------------------------------------------------
- ------------------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 51.1%
1-3 Years 38.5
3-5 Years 10.4
Over 5 Years 0.0
- ------------------------------------------------
Total 100.0%
- ------------------------------------------------
- -------------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- -------------------------------------------------------------------
R-Squared 0.89 1.00 0.62 1.00
Beta 0.42 1.00 0.19 1.00
- -------------------------------------------------------------------
- ---------------------------------
INVESTMENT FOCUS
CREDIT QUALITY HIGH
AVERAGE MATURITY SHORT
- ---------------------------------
- ----------------------------------------------------
LARGEST STATE CONCENTRATIONS (% OF TOTAL NET ASSETS)
Texas 11.1%
Pennsylvania 7.8
California 6.9
Illinois 5.5
New York 7.3
Georgia 3.8
Michigan 3.8
Massachusetts 3.7
Nevada 3.7
Ohio 3.6
- ----------------------------------------------------
Top Ten 57.2%
- ----------------------------------------------------
*Lehman 3 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Annualized.
VISIT OUR WEBSITE AT
WWW.VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
11
FUND PROFILES (CONTINUED)
LIMITED-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Issues 616 5,765 46,235
Yield 1.8% 3.6%
Investor Shares 2.1%
Admiral Shares 2.2%
Yield to Maturity 2.1% -- --
Average Coupon 4.3% 5.2% 5.2%
Average Maturity 2.9 years 2.9 years 13.8 years
Average Quality AA+ AA+ AA+
Average Duration 2.6 years 2.5 years 7.8 years
Expense Ratio -- --
Investor Shares 0.17%+
Admiral Shares 0.11%+
Cash Investments 0.7% -- --
- --------------------------------------------------------------------------------
- ----------------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
AAA 47.3%
AA 42.6
A 5.8
BBB 3.8
BB 0.5
B 0.0
Not Rated 0.0
- ----------------------------------------------------
Total 100.0%
- ----------------------------------------------------
- -------------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 24.0%
1-3 Years 23.7
3-5 Years 34.8
Over 5 Years 17.5
- -------------------------------------------
Total 100.0%
- -------------------------------------------
- -----------------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- -----------------------------------------------------------------------
R-Squared 0.96 1.00 0.84 1.00
Beta 1.01 1.00 0.51 1.00
- -----------------------------------------------------------------------
- -----------------------------
INVESTMENT FOCUS
CREDIT QUALITY HIGH
AVERAGE MATURITY SHORT
- -----------------------------
- -----------------------------------------------------
LARGEST STATE CONCENTRATIONS (% OF TOTAL NET ASSETS)
Texas 13.1%
New York 8.1
Illinois 5.6
California 5.2
Massachusetts 4.8
Michigan 4.1
Florida 4.1
Colorado 4.0
Ohio 3.9
Georgia 3.8
- ----------------------------------------------------
Top Ten 56.7%
- -----------------------------------------------------
*Lehman 3 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Annualized.
12
INTERMEDIATE-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Issues 1,152 5,430 46,235
Yield 3.0% 3.6%
Investor Shares 3.1%
Admiral Shares 3.1%
Yield to Maturity 3.2% -- --
Average Coupon 4.5% 5.3% 5.2%
Average Maturity 6.1 years 6.9 years 13.8 years
Average Quality AA+ AA+ AA+
Average Duration 4.9 years 5.4 years 7.8 years
Expense Ratio -- --
Investor Shares 0.17%+
Admiral Shares 0.11%+
Cash Investments 1.2% -- --
- --------------------------------------------------------------------------------
- -----------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
AAA 70.5%
AA 20.1
A 4.1
BBB 4.5
BB 0.5
B 0.2
Not Rated 0.1
- -----------------------------------------------
Total 100.0%
- -----------------------------------------------
- -----------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 14.4%
1-5 Years 18.7
5-10 Years 56.6
10-20 Years 8.2
20-30 Years 1.1
Over 30 Years 1.0
- -----------------------------------------
Total 100.0%
- -----------------------------------------
- -----------------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- -----------------------------------------------------------------------
R-Squared 0.96 1.00 0.96 1.00
Beta 0.90 1.00 0.89 1.00
- -----------------------------------------------------------------------
- -----------------------------
INVESTMENT FOCUS
CREDIT QUALITY HIGH
AVERAGE MATURITY MEDIUM
- -----------------------------
- ----------------------------------------------------
LARGEST STATE CONCENTRATIONS (% OF TOTAL NET ASSETS)
New York 11.1%
Texas 10.4
California 9.7
Massachusetts 7.1
New Jersey 6.2
Illinois 5.0
Pennsylvania 4.3
Florida 3.9
Colorado 3.8
Georgia 3.7
- ----------------------------------------------------
Top Ten 65.2%
- ----------------------------------------------------
*Lehman 7 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Annualized.
VISIT OUR WEBSITE AT
WWW.VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
13
FUND PROFILES (CONTINUED)
INSURED LONG-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Issues 301 8,716 46,235
Yield 3.5% 3.6%
Investor Shares 3.5%
Admiral Shares 3.5%
Yield to Maturity 3.6% -- --
Average Coupon 4.5% 5.2% 5.2%
Average Maturity 8.5 years 9.9 years 13.8 years
Average Quality AAA AA+ AA+
Average Duration 6.6 years 6.8 years 7.8 years
Expense Ratio -- --
Investor Shares 0.17%+
Admiral Shares 0.11%+
Cash Investments 0.0% -- --
- --------------------------------------------------------------------------------
- ------------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
AAA 93.2%
AA 6.8
A 0.0
BBB 0.0
BB 0.0
B 0.0
Not Rated 0.0
- ------------------------------------------------
Total 100.0%
- ------------------------------------------------
- -----------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 13.3%
1-5 Years 12.9
5-10 Years 47.6
10-20 Years 20.8
20-30 Years 4.2
Over 30 Years 1.2
- -----------------------------------------
Total 100.0%
- -----------------------------------------
- -----------------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- -----------------------------------------------------------------------
R-Squared 0.97 1.00 0.98 1.00
Beta 1.09 1.00 1.20 1.00
- -----------------------------------------------------------------------
- -----------------------------------
INVESTMENT FOCUS
CREDIT QUALITY HIGH
AVERAGE MATURITY LONG
- -----------------------------------
- ----------------------------------------------------
LARGEST STATE CONCENTRATIONS (% OF TOTAL NET ASSETS)
Texas 10.0%
New York 9.9
California 8.0
New Jersey 7.7
Illinois 7.5
Pennsylvania 5.7
Colorado 5.4
Massachusetts 5.1
Hawaii 4.6
Georgia 3.8
- ----------------------------------------------------
Top Ten 67.7%
- ----------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Annualized.
14
LONG-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Issues 242 8,716 46,235
Yield 3.5% 3.6%
Investor Shares 3.7%
Admiral Shares 3.8%
Yield to Maturity 3.7% -- --
Average Coupon 3.8% 5.2% 5.2%
Average Maturity 9.1 years 9.9 years 13.8 years
Average Quality AA+ AA+ AA+
Average Duration 7.2 years 6.8 years 7.8 years
Expense Ratio -- --
Investor Shares 0.18%+
Admiral Shares 0.11%+
Cash Investments 1.3% -- --
- --------------------------------------------------------------------------------
- ----------------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
AAA 71.1%
AA 19.2
A 4.4
BBB 5.2
BB 0.0
B 0.1
Not Rated 0.0
- ----------------------------------------------------
Total 100.0%
- ----------------------------------------------------
- -----------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 8.6%
1-5 Years 7.5
5-10 Years 53.3
10-20 Years 23.1
20-30 Years 5.7
Over 30 Years 1.8
- -----------------------------------------
Total 100.0%
- -----------------------------------------
- -----------------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- -----------------------------------------------------------------------
R-Squared 0.95 1.00 0.97 1.00
Beta 1.13 1.00 1.24 1.00
- -----------------------------------------------------------------------
- -----------------------------
INVESTMENT FOCUS
CREDIT QUALITY HIGH
AVERAGE MATURITY LONG
- -----------------------------
- ----------------------------------------------------
LARGEST STATE CONCENTRATIONS (% OF TOTAL NET ASSETS)
Texas 18.3%
California 10.9
New York 10.7
Illinois 7.3
Massachusetts 6.2
Colorado 4.3
Michigan 3.7
Georgia 3.5
Pennsylvania 3.5
Louisiana 2.5
- ----------------------------------------------------
Top Ten 70.9%
- ----------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Annualized.
VISIT OUR WEBSITE AT
WWW.VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
15
FUND PROFILES (CONTINUED)
HIGH-YIELD TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Issues 367 8,716 46,235
Yield 3.5% 3.6%
Investor Shares 4.3%
Admiral Shares 4.4%
Yield to Maturity 4.6% -- --
Average Coupon 4.5% 5.2% 5.2%
Average Maturity 8.3 years 9.9 years 13.8 years
Average Quality A+ AA+ AA+
Average Duration 6.1 years 6.8 years 7.8 years
Expense Ratio -- --
Investor Shares 0.17%+
Admiral Shares 0.11%+
Cash Investments 1.8% -- --
- --------------------------------------------------------------------------------
- -----------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
AAA 40.9%
AA 17.0
A 12.8
BBB 17.2
BB 4.3
B 1.2
Not Rated 6.6
- -----------------------------------------------
Total 100.0%
- -----------------------------------------------
- -----------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 13.6%
1-5 Years 13.7
5-10 Years 49.7
10-20 Years 12.2
20-30 Years 8.2
Over 30 Years 2.6
- -----------------------------------------
Total 100.0%
- -----------------------------------------
- -----------------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- -----------------------------------------------------------------------
R-Squared 0.86 1.00 0.90 1.00
Beta 0.83 1.00 0.92 1.00
- -----------------------------------------------------------------------
- ------------------------------
INVESTMENT FOCUS
CREDIT QUALITY MEDIUM
AVERAGE MATURITY LONG
- ------------------------------
- ----------------------------------------------------
LARGEST STATE CONCENTRATIONS (% OF TOTAL NET ASSETS)
New York 12.0%
California 10.8
Texas 8.2
Illinois 5.8
New Jersey 5.8
Massachusetts 4.7
Pennsylvania 4.5
Virginia 4.0
Colorado 3.5
Ohio 3.4
- ----------------------------------------------------
Top Ten 62.7%
- ----------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Annualized.
VISIT OUR WEBSITE AT
WWW.VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
16
GLOSSARY OF INVESTMENT TERMS
AVERAGE COUPON. The average interest rate paid on the securities held by a fund.
It is expressed as a percentage of face value.
- --------------------------------------------------------------------------------
AVERAGE DURATION. An estimate of how much a bond fund's share price will
fluctuate in response to a change in interest rates. To see how the price could
shift, multiply the fund's duration by the change in rates. If interest rates
rise by one percentage point, the share price of a fund with an average duration
of five years would decline by about 5%. If rates decrease by a percentage
point, the fund's share price would rise by 5%.
- --------------------------------------------------------------------------------
AVERAGE MATURITY. The average length of time until securities held by a fund
reach maturity (or are called) and are repaid. In general, the longer the
average maturity, the more a fund's share price will fluctuate in response to
changes in market interest rates.
- --------------------------------------------------------------------------------
AVERAGE QUALITY. An indicator of credit risk, this figure is the average of the
ratings assigned to a fund's holdings by credit-rating agencies. The agencies
make their judgment after appraising an issuer's ability to meet its
obligations. Quality is graded on a scale, with Aaa or AAA indicating the most
creditworthy bond issuers and A-1 or MIG-1 indicating the most creditworthy
issuers of money market securities.
- --------------------------------------------------------------------------------
BETA. A measure of the magnitude of a fund's past share-price fluctuations in
relation to the ups and downs of a comparative index and an overall market
index. Each index is assigned a beta of 1.00. Compared with a given index, a
fund with a beta of 1.20 typically would have seen its share price rise or fall
by 12% when the index rose or fell by 10%. However, a fund's beta should be
reviewed in conjunction with its R-squared (see definition below). The lower the
R-squared, the less correlation there is between the fund and the benchmark, and
the less reliable beta is as an indicator of volatility.
- --------------------------------------------------------------------------------
CASH INVESTMENTS. The percentage of a fund's net assets invested in "cash
equivalents"--highly liquid, short-term, interest-bearing securities. This
figure does not include cash invested in futures contracts to simulate bond
investment.
- --------------------------------------------------------------------------------
EXPENSE RATIO. The percentage of a fund's average net assets used to pay its
annual administrative and advisory expenses. These expenses directly reduce
returns to investors.
- --------------------------------------------------------------------------------
LARGEST STATE CONCENTRATIONS. An indicator of diversification. The less
concentrated a fund's holdings of bonds, the less the fund will be hurt by any
financial problems in a single state or region.
- --------------------------------------------------------------------------------
R-SQUARED. A measure of how much of a fund's past returns can be explained by
the returns from the market in general, as measured by a comparative index or an
overall market index. If a fund's total returns were precisely synchronized with
an index's returns, its R-squared would be 1.00. If the fund's returns bore no
relationship to the index's returns, its R-squared would be 0.
- --------------------------------------------------------------------------------
YIELD. A snapshot of a fund's interest income. The yield, expressed as a
percentage of the fund's net asset value, is based on income earned over the
past 30 days (7 days for money market funds) and is annualized, or projected
forward for the coming year.
- --------------------------------------------------------------------------------
YIELD TO MATURITY. The rate of return an investor would receive if the
securities held by a fund were held to their maturity dates. (degree)
- --------------------------------------------------------------------------------
17
PERFORMANCE SUMMARIES AS OF APRIL 30, 2003
All of the returns in this report represent past performance, which cannot be
used to predict future returns that may be achieved by the funds. An investment
in a money market fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Tax-Exempt
Money Market Fund seeks to preserve the value of your investment at $1 per
share, it is possible to lose money by investing in the fund. For bond funds,
both share price and return can fluctuate widely. An investor's shares, when
redeemed, could be worth more or less than their original cost. The returns
shown do not reflect taxes that a shareholder would pay on fund distributions or
on the redemption of fund shares. The annualized yield shown for the money
market fund reflects the current earnings of the fund more closely than do the
total returns.
TAX-EXEMPT MONEY MARKET FUND
- ------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) OCTOBER 31, 1992-APRIL 30, 2003
- ------------------------------------------------------------------------
TAX-EXEMPT AVERAGE
MONEY MARKET FUND FUND*
FISCAL TOTAL TOTAL
YEAR RETURN RETURN
- ------------------------------------------------------------------------
1993 2.5% 2.0%
1994 2.5 2.1
1995 3.7 3.3
1996 3.4 3.0
1997 3.5 3.0
1998 3.4 3.0
- ------------------------------------------------------------------------
* Average Tax-Exempt Money Market Fund; derived from data provided by Lipper
Inc. **Six months ended April 30, 2003.
Note: See Financial Highlights table on page 29 for dividend information.
- ------------------------------------------------------------------------
TAX-EXEMPT AVERAGE
MONEY MARKET FUND FUND*
FISCAL TOTAL TOTAL
YEAR RETURN RETURN
- ------------------------------------------------------------------------
1999 3.1% 2.6%
2000 3.9 3.4
2001 3.2 2.6
2002 1.5 0.9
2003** 0.6 0.3
- ------------------------------------------------------------------------
SEC 7-Day Annualized Yield (4/30/2003): 1.24%
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2003
This table presents average annual total returns through the latest calendar
quarter--rather than through the end of the fiscal period. Securities and
Exchange Commission rules require that we provide this information.
TEN YEARS
INCEPTION ONE FIVE ----------------------
DATE YEAR YEARS CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
Tax-Exempt Money Market Fund 6/10/1980 1.31% 2.81% 0.00% 3.01% 3.01%
- --------------------------------------------------------------------------------
18
SHORT-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) OCTOBER 31, 1992-APRIL 30, 2003
- --------------------------------------------------------------------------------
SHORT-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1993 0.3% 3.9% 4.2% 6.6%
1994 -1.3 3.5 2.2 1.4
1995 1.2 4.1 5.3 8.0
1996 -0.1 4.0 3.9 4.5
1997 0.0 4.0 4.0 5.5
1998 0.5 4.0 4.5 5.7
- --------------------------------------------------------------------------------
SHORT-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1999 -1.0% 3.7% 2.7% 2.2%
2000 0.1 4.1 4.2 4.9
2001 1.5 4.2 5.7 8.7
2002 -0.1 2.9 2.8 4.8
2003** 0.4 1.0 1.4 2.6
- --------------------------------------------------------------------------------
*Lehman 3 Year Municipal Bond Index.
**Six months ended April 30, 2003.
Note: See Financial Highlights tables on page 30 for dividend and capital gains
information.
LIMITED-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) OCTOBER 31, 1992-APRIL 30, 2003
- --------------------------------------------------------------------------------
LIMITED-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1993 2.4% 4.6% 7.0% 6.6%
1994 -3.1 4.2 1.1 1.4
1995 2.5 4.7 7.2 8.0
1996 -0.2 4.6 4.4 4.5
1997 0.5 4.5 5.0 5.5
1998 1.0 4.4 5.4 5.7
- --------------------------------------------------------------------------------
LIMITED-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1999 -2.4% 4.2% 1.8% 2.2%
2000 0.5 4.5 5.0 4.9
2001 3.3 4.6 7.9 8.7
2002 0.1 3.9 4.0 4.8
2003** 1.0 1.7 2.7 2.6
- --------------------------------------------------------------------------------
*Lehman 3 Year Municipal Bond Index.
**Six months ended April 30, 2003.
Note: See Financial Highlights tables on page 31 for dividend information.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2003
This table presents average annual total returns through the latest calendar
quarter--rather than through the end of the fiscal period. Securities and
Exchange Commission rules require that we provide this information.
TEN YEARS
ONE FIVE ----------------------
INCEPTION YEAR YEARS CAPITAL INCOME TOTAL
DATE
- --------------------------------------------------------------------------------
Short-Term Tax-Exempt Fund
Investor Shares 9/1/1977 3.63% 3.89% 0.12% 3.74% 3.86%
Admiral Shares 2/12/2001 3.68 3.59* -- -- --
- --------------------------------------------------------------------------------
Limited-Term Tax-Exempt Fund
Investor Shares 8/31/1987 6.61% 4.86% 0.35% 4.39% 4.74%
Admiral Shares 2/12/2006 6.67 5.05* -- -- --
- --------------------------------------------------------------------------------
*Return since inception.
19
PERFORMANCE SUMMARIES (CONTINUED)
INTERMEDIATE-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) OCTOBER 31, 1992-APRIL 30, 2003
- --------------------------------------------------------------------------------
INTERMEDIATE-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1993 8.4% 5.9% 14.3% 12.0%
1994 -6.5 5.0 -1.5 -1.9
1995 6.3 5.8 12.1 12.4
1996 -0.3 5.2 4.9 4.7
1997 1.3 5.3 6.6 7.4
1998 1.7 5.1 6.8 7.4
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INTERMEDIATE-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1999 -5.2% 4.8% -0.4% 0.0%
2000 2.0 5.3 7.3 6.8
2001 4.3 5.1 9.4 9.9
2002 -0.2 4.6 4.4 6.3
2003** 1.0 2.2 3.2 3.7
- --------------------------------------------------------------------------------
*Lehman 7 Year Municipal Bond Index.
**Six months ended April 30, 2003.
Note: See Financial Highlights tables on page 32 for dividend and capital gains
information.
INSURED LONG-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) OCTOBER 31, 1992-APRIL 30, 2003
- --------------------------------------------------------------------------------
INSURED LONG-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1993 10.7% 6.4% 17.1% 14.7%
1994 -10.8 5.2 -5.6 -3.4
1995 9.5 6.4 15.9 14.8
1996 0.7 5.6 6.3 5.0
1997 1.9 5.7 7.6 8.7
1998 2.4 5.5 7.9 8.3
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INSURED LONG-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1999 -7.7% 5.0% -2.7% -1.2%
2000 3.8 5.9 9.7 8.2
2001 5.6 5.4 11.0 10.2
2002 0.9 4.8 5.7 6.2
2003** 1.7 2.3 4.0 3.4
- --------------------------------------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Six months ended April 30, 2003.
Note: See Financial Highlights tables on page 33 for dividend and capital gains
information.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2003
This table presents average annual total returns through the latest calendar
quarter--rather than through the end of the fiscal period. Securities and
Exchange Commission rules require that we provide this information.
TEN YEARS
INCEPTION ONE FIVE ---------------------------
DATE YEAR YEARS CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
Intermediate-Term Tax-Exempt Fund
InvestorShares 9/1/1977 7.58% 5.37% 0.67% 5.10% 5.77%
Admiral Shares 2/12/2001 7.64 5.51* -- -- --
- --------------------------------------------------------------------------------
Insured Long-Term Tax-Exempt Fund
Investor Shares 9/30/1984 10.23% 6.11% 0.93% 5.49% 6.42%
Admiral Shares 2/12/20011 10.29 6.56* -- -- --
- --------------------------------------------------------------------------------
*Return since inception.
20
LONG-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) OCTOBER 31, 1992-APRIL 30, 2003
- --------------------------------------------------------------------------------
LONG-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1993 10.5% 6.4% 16.9% 14.7%
1994 -10.7 5.2 -5.5 -3.4
1995 9.5 6.5 16.0 14.8
1996 1.1 5.6 6.7 5.0
1997 2.6 5.6 8.2 8.7
1998 2.4 5.4 7.8 8.3
- --------------------------------------------------------------------------------
LONG-TERM TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1999 -8.3% 4.8% -3.5% -1.2%
2000 3.8 5.8 9.6 8.2
2001 6.1 5.4 11.5 10.2
2002 0.1 4.9 5.0 6.2
2003** 1.9 2.3 4.2 3.4
- --------------------------------------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Six months ended April 30, 2003.
Note: See Financial Highlights tables on page 34 for dividend and capital gains
information.
HIGH-YIELD TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) OCTOBER 31, 1992-APRIL 30, 2003
- --------------------------------------------------------------------------------
HIGH-YIELD TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1993 10.0% 6.8% 16.8% 14.7%
1994 -10.5 5.5 -5.0 -3.4
1995 9.0 6.8 15.8 14.8
1996 0.3 5.7 6.0 5.0
1997 2.5 5.9 8.4 8.7
1998 2.6 5.6 8.2 8.3
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
HIGH-YIELD TAX-EXEMPT FUND
INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1999 -7.8% 5.0% -2.8% -1.2%
2000 1.8 6.0 7.8 8.2
2001 4.0 5.8 9.8 10.2
2002 -1.7 5.4 3.7 6.2
2003** 1.3 2.6 3.9 3.4
- --------------------------------------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Six months ended April 30, 2003.
Note: See Financial Highlights tables on page 35 for dividend and capital gains
information.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2003
This table presents average annual total returns through the latest calendar
quarter--rather than through the end of the fiscal period. Securities and
Exchange Commission rules require that we provide this information.
TEN YEARS
INCEPTION ONE FIVE ---------------------------
DATE YEAR YEARS CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
Long-Term Tax-Exempt Fund
Investor Shares 9/1/1977 9.66% 5.88% 0.96% 5.48% 6.44%
Admiral Shares 2/12/2001 9.73 6.46* -- -- --
- --------------------------------------------------------------------------------
High-Yield Tax-Exempt Fund
Investor Shares 12/27/1978 6.93% 5.05% 0.30% 5.75% 6.05%
Admiral Shares 11/12/2006 6.99 4.22* -- -- --
- --------------------------------------------------------------------------------
*Return since inception.
21
- --------------------------------------------------------------------------------
NOTICE TO SHAREHOLDERS
At a special meeting of shareholders on December 3, 2002, fund shareholders
approved the following proposals:
* ELECT TRUSTEES FOR EACH FUND.* The individuals listed in the table below were
elected as trustees for each fund. All trustees except Mr. Gupta served as
trustees to the funds prior to the shareholder meeting.
- --------------------------------------------------------------------------------
TRUSTEE FOR WITHHELD PERCENTAGE FOR
- --------------------------------------------------------------------------------
John J. Brennan 19,639,255,112 440,146,523 97.8%
Charles D. Ellis 19,651,170,807 428,230,827 97.9
Rajiv L. Gupta 19,618,990,723 460,410,911 97.7
JoAnn Heffernan Heisen 19,656,116,097 423,285,538 97.9
Burton G. Malkiel 19,601,019,652 478,381,982 97.6
Alfred M. Rankin, Jr. 19,661,955,586 417,446,048 97.9
J. Lawrence Wilson 19,617,366,108 462,035,527 97.7
- --------------------------------------------------------------------------------
* CHANGE EACH FUND'S POLICY ON INVESTING IN OTHER MUTUAL FUNDS. This change
enables each fund to invest its cash reserves in specially created money market
and short-term bond funds. This new cash management program, which is similar to
those of other large mutual fund complexes, should help the funds to achieve
greater diversification and to earn modestly higher returns on their cash
reserves. The funds will need Securities and Exchange Commission approval before
implementing this new cash management program.
- --------------------------------------------------------------------------------------------------------------
BROKER PERCENTAGE
VANGUARD FUND FOR AGAINST ABSTAIN NON-VOTES FOR
- --------------------------------------------------------------------------------------------------------------
Tax-Exempt Money Market 4,627,623,874 457,206,878 160,129,480 133,382,705 86.0%
Short-Term Tax-Exempt 1,564,669,678 78,650,398 52,315,022 321,681,190 77.6
Limited-Term Tax-Exempt 2,062,590,917 115,449,223 81,817,565 550,220,350 73.4
Intermediate-Term
Tax-Exempt 4,972,619,558 374,370,071 187,254,681 1,118,009,401 74.8
Insured Long-Term
Tax-Exempt 1,332,781,537 114,324,326 59,470,308 179,613,022 79.0
Long-Term Tax-Exempt 940,696,930 68,984,845 39,362,176 166,316,413 77.4
High-Yield Tax-Exempt 1,806,470,574 137,287,323 68,094,989 325,324,488 77.3
- --------------------------------------------------------------------------------------------------------------
* CHANGE EACH FUND'S POLICY ON BORROWING MONEY. This change enables each fund to
manage cash flows more efficiently and minimize administrative expenses.
- --------------------------------------------------------------------------------------------------------------
BROKER PERCENTAGE
VANGUARD FUND FOR AGAINST ABSTAIN NON-VOTES FOR
- --------------------------------------------------------------------------------------------------------------
Tax-Exempt Money Market 4,561,277,841 474,050,932 209,631,459 133,382,705 84.8%
Short-Term Tax-Exempt 1,525,227,254 129,094,527 41,313,316 321,681,190 75.6
Limited-Term Tax-Exempt 1,996,664,024 170,224,742 92,968,938 550,220,350 71.1
Intermediate-Term
Tax-Exempt 4,878,473,832 436,842,670 218,927,808 1,118,009,401 73.31
Insured Long-Term
Tax-Exempt 1,309,063,711 131,978,211 65,534,250 179,613,022 77.6
Long-Term Tax-Exempt 921,862,676 82,621,611 44,559,662 166,316,413 75.9
High-Yield Tax-Exempt 1,761,960,960 154,135,871 95,756,056 325,324,488 75.4
- --------------------------------------------------------------------------------------------------------------
*Results are for all funds within the same trust.
Note: Vote tabulations are rounded to the nearest whole number.
22
FINANCIAL STATEMENTS AS OF APRIL 30, 2003 (UNAUDITED)
The Statement of Net Assets--an integral part of the Financial Statements for
each of the Vanguard Municipal Bond Funds--is included as an insert to this
report. Statement of Operations
This Statement shows interest income earned by each fund during the reporting
period, and details the operating expenses charged to each class of its shares.
These expenses directly reduce the amount of investment income available to pay
to shareholders as tax-exempt income dividends. This Statement also shows any
Net Gain (Loss) realized on the sale of investments, and the increase or
decrease in the Unrealized Appreciation (Depreciation) of investments during the
period. For money market funds, Realized Net Gain (Loss) should always be
minimal, and Unrealized Appreciation (Depreciation) should be zero.
- -------------------------------------------------------------------------------------------------------------
TAX-EXEMPT SHORT-TERM LIMITED-TERM INTERMEDIATE-
MONEY MARKET TAX-EXEMPT TAX-EXEMPT TERM TAX-EXEMPT
FUND FUND FUND FUND
--------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
--------------------------------------------------------------------------------
(000) (000) (000) (000)
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Interest $70,766 $42,706 $ 96,335 $259,888
- -------------------------------------------------------------------------------------------------------------
Total Income 70,766 42,706 96,335 259,888
- -------------------------------------------------------------------------------------------------------------
EXPENSES
The Vanguard Group--Note B
Investment Advisory Services 730 245 358 797
Management and Administrative--
Investor Shares 7,171 1,330 1,935 4,946
Management and Administrative--
Admiral Shares -- 633 1,065 1,833
Marketing and Distribution--
Investor Shares 1,021 188 258 544
Marketing and Distribution--
Admiral Shares -- 138 171 274
Custodian Fees 15 21 28 58
Shareholders' Reports and Proxies--
Investor Shares 34 23 32 101
Shareholders' Reports and Proxies--
Admiral Shares -- 2 3 9
Trustees' Fees and Expenses 7 2 3 7
- -------------------------------------------------------------------------------------------------------------
Total Expenses 8,978 2,582 3,853 8,569
Expenses Paid Indirectly--Note C -- (58) (151) (213)
- -------------------------------------------------------------------------------------------------------------
Net Expenses 8,978 2,524 3,702 8,356
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 61,788 40,182 92,633 251,532
- -------------------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS)
Investment Securities Sold 322 (838) (26,237) (27,499)
Futures Contracts -- -- (177) (41,821)
- -------------------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS) 322 (838) (26,414) (69,320)
- -------------------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
Investment Securities -- 15,977 79,094 175,123
Futures Contracts -- -- (239) 21,337
- -------------------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) -- 15,977 78,855 196,460
- -------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $62,110 $55,321 $145,074 $378,672
=============================================================================================================
23
STATEMENT OF OPERATIONS (CONTINUED)
- --------------------------------------------------------------------------------
INSURED LONG-TERM LONG-TERM HIGH-YIELD
TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND
-----------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
-----------------------------------------------------
(000) (000) (000)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Interest $ 67,814 $ 49,387 $102,347
- --------------------------------------------------------------------------------
Total Income 67,814 49,387 102,347
- --------------------------------------------------------------------------------
EXPENSES
The Vanguard Group--Note B
Investment Advisory Services 197 140 266
Management and Administrative--
Investor Shares 1,324 866 1,812
Management and Administrative--
Admiral Shares 379 352 529
Marketing and Distribution--
Investor Shares 124 87 195
Marketing and Distribution--
Admiral Shares 56 46 66
Custodian Fees 16 14 24
Shareholders' Reports and Proxies--
Investor Shares 32 21 44
Shareholders' Reports and Proxies--
Admiral Shares 3 2 3
Trustees' Fees and Expenses 2 1 2
- --------------------------------------------------------------------------------
Total Expenses 2,133 1,529 2,941
Expenses Paid Indirectly--
Note C -- (126) (130)
- --------------------------------------------------------------------------------
Net Expenses 2,133 1,403 2,811
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 65,681 47,984 99,536
- --------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS)
Investment Securities Sold 26,044 (15,354) (34,883)
Futures Contracts (11,147) (6,399) (15,468)
- --------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS) 14,897 (21,753) (50,351)
- --------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
Investment Securities 28,497 57,493 94,310
Futures Contracts 6,943 1,489 8,156
- --------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) 35,440 58,982 102,466
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $116,018 $85,213 $151,651
================================================================================
24
STATEMENT OF CHANGES IN NET ASSETS
This Statement shows how each fund's total net assets changed during the two
most recent reporting periods. The Operations section summarizes information
detailed in the Statement of Operations. Because the fund distributes its income
to shareholders each day, the amounts of Distributions--Net Investment Income
generally equal the net income earned as shown under the Operations section. The
amounts of Distributions--Realized Capital Gain may not match the capital gains
shown in the Operations section, because distributions are determined on a tax
basis and may be made in a period different from the one in which the gains were
realized on the financial statements. The Capital Share Transactions section
shows the net amount shareholders invested in or redeemed from the fund.
Distributions and Capital Share Transactions are shown separately for each class
of shares.
- ----------------------------------------------------------------------------------------------------------------
TAX-EXEMPT SHORT-TERM
MONEY MARKET FUND TAX-EXEMPT FUND
--------------------------------- --------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APR. 30, 2003 OCT. 31, 2002 APR. 30, 2003 OCT. 31, 2002
(000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 61,788 $ 139,958 $ 40,182 $ 85,736
Realized Net Gain (Loss) 322 441 (838) (128)
Change in Unrealized Appreciation
(Depreciation) -- -- 15,977 (1,376)
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 62,110 140,399 55,321 84,232
- ----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (61,788) (139,958) (21,423) (46,243)
Admiral Shares -- -- (18,759) (39,493)
Realized Capital Gain
Investor Shares -- -- -- --
Admiral Shares -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Total Distributions (61,788) (139,958) (40,182) (85,736)
- ----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--NOTE F
Investor Shares 717,238 1,735,787 81,485 626,318
Admiral Shares -- -- 330,395 546,229
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions 717,238 1,735,787 411,880 1,172,547
- ----------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) 717,560 1,736,228 427,019 1,171,043
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 10,864,274 9,128,046 3,543,677 2,372,634
- ----------------------------------------------------------------------------------------------------------------
End of Period $11,581,834 $10,864,274 $3,970,696 $3,543,677
================================================================================================================
25
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------
LIMITED-TERM INTERMEDIATE-TERM
TAX-EXEMPT FUND TAX-EXEMPT FUND
--------------------------------- --------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APR. 30, 2003 OCT. 31, 2002 APR. 30, 2003 OCT. 31, 2002
(000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 92,633 $ 169,117 $ 251,532 $ 494,613
Realized Net Gain (Loss) (26,414) (292) (69,320) 33,176
Change in Unrealized Appreciation
(Depreciation) 78,855 7,394 196,460 (63,995)
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 145,074 176,219 378,672 463,794
- ----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (47,125) (90,161) (152,856) (312,311)
Admiral Shares (45,508) (78,956) (98,676) (182,302)
Realized Capital Gain*
Investor Shares -- -- (21,117) (15,424)
Admiral Shares -- -- (13,296) (8,381)
- ----------------------------------------------------------------------------------------------------------------
Total Distributions (92,633) (169,117) (285,945) (518,418)
- ----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--NOTE F
Investor Shares 326,461 511,521 (29,103) 307,452
Admiral Shares 422,652 908,371 159,133 1,021,670
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions 749,113 1,419,892 130,030 1,329,122
- ----------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) 801,554 1,426,994 222,757 1,274,498
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 5,129,261 3,702,267 11,712,878 10,438,380
- ----------------------------------------------------------------------------------------------------------------
End of Period $5,930,815 $5,129,261 $11,935,635 $11,712,878
================================================================================================================
* Includes fiscal 2003 and 2002 short-term gain distributions by the
Intermediate-Term Tax-Exempt Fund totaling $3,398,000 and $0, respectively.
Short-term gain distributions are treated as ordinary income dividends for tax
purposes.
26
- ----------------------------------------------------------------------------------------------------------------
INSURED LONG-TERM LONG-TERM
TAX-EXEMPT FUND TAX-EXEMPT FUND
--------------------------------- --------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APR. 30, 2003 OCT. 31, 2002 APR. 30, 2003 OCT. 31, 2002
(000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 65,681 $ 132,710 $ 47,984 $ 96,911
Realized Net Gain (Loss) 14,897 26,376 (21,753) 9,285
Change in Unrealized Appreciation
(Depreciation) 35,440 (2,196) 58,982 (6,012)
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 116,018 156,890 85,213 100,184
- ----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (43,508) (89,841) (28,438) (59,082)
Admiral Shares (22,173) (42,869) (19,546) (37,829)
Realized Capital Gain*
Investor Shares (12,454) (11,850) (5,568) (3,228)
Admiral Shares (6,273) (5,439) (3,729) (1,955)
- ----------------------------------------------------------------------------------------------------------------
Total Distributions (84,408) (149,999) (57,281) (102,094)
- ----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--NOTE F
Investor Shares (4,222) 940 (47,963) (12,433)
Admiral Shares 38,155 118,007 6,636 108,992
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions 33,933 118,947 (41,327) 96,559
- ----------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) 65,543 125,838 (13,395) 94,649
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 2,909,897 2,784,059 2,073,959 1,979,310
- ----------------------------------------------------------------------------------------------------------------
End of Period $2,975,440 $2,909,897 $2,060,564 $2,073,959
================================================================================================================
* Includes fiscal 2003 and 2002 short-term gain distributions by the Insured
Long-Term Tax-Exempt Fund totaling $2,789,000 and $9,002,000, respectively, and
by the Long-Term Tax-Exempt Fund totaling $108,000 and $207,000, respectively.
Short-term gain distributions are treated as ordinary income dividends for tax
purposes.
27
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
HIGH-YIELD
TAX-EXEMPT FUND
----------------------------
SIX MONTHS YEAR
ENDED ENDED
APR. 30, 2003 OCT. 31, 2002
(000) (000)
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 99,536 $ 203,179
Realized Net Gain (Loss) (50,351) (4,185)
Change in Unrealized Appreciation (Depreciation) 102,466 (60,769)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 151,651 138,225
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (66,616) (145,957)
Admiral Shares (32,920) (57,222)
Realized Capital Gain
Investor Shares -- --
Admiral Shares -- --
- --------------------------------------------------------------------------------
Total Distributions (99,536) (203,179)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--NOTE F
Investor Shares (55,850) (904,504)
Admiral Shares 38,490 1,287,946
- --------------------------------------------------------------------------------
Net Increase (Decrease) from Capital Share
Transactions (17,360) 383,442
- --------------------------------------------------------------------------------
Total Increase (Decrease) 34,755 318,488
- --------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 3,945,466 3,626,978
- --------------------------------------------------------------------------------
End of Period $3,980,221 $3,945,466
================================================================================
28
FINANCIAL HIGHLIGHTS
This table summarizes each fund's investment results and distributions to
shareholders on a per-share basis for each class of shares. It also presents the
Total Return and shows net investment income and expenses as percentages of
average net assets. These data will help you assess: the variability of the
fund's net income and total returns from year to year; the relative
contributions of net income and capital gains to the fund's total return; how
much it costs to operate the fund; and the extent to which the fund tends to
distribute capital gains. The table also shows the Portfolio Turnover Rate, a
measure of trading activity. A turnover rate of 100% means that the average
security is held in the fund for one year. Money market funds are not required
to report a Portfolio Turnover Rate.
TAX-EXEMPT MONEY MARKET FUND
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED -------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .006 .015 .031 .038 .030 .034
Net Realized and Unrealized Gain (Loss)
on Investments -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .006 .015 .031 .038 .030 .034
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.006) (.015) (.031) (.038) (.030) (.034)
Distributions from Realized Capital Gains -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions (.006) (.015) (.031) (.038) (.030) (.034)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======================================================================================================================
TOTAL RETURN 0.55% 1.46% 3.15% 3.91% 3.08% 3.44%
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $11,582 $10,864 $9,128 $8,214 $7,144 $6,246
Ratio of Total Expenses to Average Net Assets 0.16%* 0.17% 0.18% 0.18% 0.18% 0.20%
Ratio of Net Investment Income to Average Net Assets 1.11%* 1.45% 3.08% 3.84% 3.03% 3.37%
======================================================================================================================
*Annualized.
29
FINANCIAL HIGHLIGHTS (CONTINUED)
SHORT-TERM TAX-EXEMPT FUND INVESTOR SHARES
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED -------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $15.73 $15.74 $15.50 $15.48 $15.65 $15.58
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .167 .449 .628 .623 .578 .609
Net Realized and Unrealized Gain (Loss)
on Investments .060 (.010) .240 .020 (.164) .076
- ----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .227 .439 .868 .643 .414 .685
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.167) (.449) (.628) (.623) (.578) (.609)
Distributions from Realized Capital Gains -- -- -- -- (.006) (.006)
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions (.167) (.449) (.628) (.623) (.584) (.615)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $15.79 $15.73 $15.74 $15.50 $15.48 $15.65
======================================================================================================================
TOTAL RETURN 1.45% 2.83% 5.70% 4.24% 2.69% 4.49%
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $2,033 $1,943 $1,318 $2,004 $1,893 $1,654
Ratio of Total Expenses to Average Net Assets 0.17%* 0.17% 0.19% 0.18% 0.18% 0.20%
Ratio of Net Investment Income to Average Net Assets 2.14%* 2.80% 4.04% 4.03% 3.71% 3.90%
Portfolio Turnover Rate 21%* 53% 47% 45% 56% 36%
======================================================================================================================
*Annualized.
SHORT-TERM TAX-EXEMPT FUND ADMIRAL SHARES
- ---------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED FEB. 12* TO
ENDED OCT. 31, OCT. 31,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $15.73 $15.74 $15.66
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .172 .457 .448
Net Realized and Unrealized Gain (Loss) on Investments .060 (.010) .080
- ---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .232 .447 .528
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.172) (.457) (.448)
Distributions from Realized Capital Gains -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions (.172) (.457) (.448)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $15.79 $15.73 $15.74
======================================================================================================================
TOTAL RETURN 1.48% 2.88% 3.42%
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,938 $1,601 $1,055
Ratio of Total Expenses to Average Net Assets 0.11%** 0.12% 0.13%**
Ratio of Net Investment Income to Average Net Assets 2.20%** 2.86% 3.96%**
Portfolio Turnover Rate 21%** 53% 47%
======================================================================================================================
*Inception.
**Annualized.
30
LIMITED-TERM TAX-EXEMPT FUND INVESTOR SHARES
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED -------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.00 $10.99 $10.64 $10.59 $10.85 $10.74
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .184 .425 .474 .470 .457 .460
Net Realized and Unrealized Gain (Loss)on Investments .110 .010 .350 .050 (.260) .110
- ----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .294 .435 .824 .520 .197 .570
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.184) (.425) (.474) (.470) (.457) (.460)
Distributions from Realized Capital Gains -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions (.184) (.425) (.474) (.470) (.457) (.460)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.11 $11.00 $10.99 $10.64 $10.59 $10.85
======================================================================================================================
TOTAL RETURN 2.69% 4.05% 7.89% 5.04% 1.83% 5.42%
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $2,998 $2,645 $2,130 $2,775 $2,577 $2,340
Ratio of Total Expenses to Average Net Assets 0.17%* 0.17% 0.19% 0.18% 0.18% 0.21%
Ratio of Net Investment Income to Average Net Assets 3.35%* 3.84% 4.40% 4.45% 4.25% 4.27%
Portfolio Turnover Rate 8%* 17% 19% 32% 14% 35%
======================================================================================================================
*Annualized.
LIMITED-TERM TAX-EXEMPT FUND ADMIRAL SHARES
- ---------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED FEB. 12* TO
ENDED OCT. 31, OCT. 31,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.00 $10.99 $10.87
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .188 .431 .342
Net Realized and Unrealized Gain (Loss) on Investments .110 .010 .120
- ---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .298 .441 .462
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.188) (.431) (.342)
Distributions from Realized Capital Gains -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions (.188) (.431) (.342)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.11 $11.00 $10.99
=====================================================================================================================
TOTAL RETURN 2.72% 4.10% 4.31%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $2,933 $2,484 $1,572
Ratio of Total Expenses to Average Net Assets 0.11%** 0.12% 0.13%**
Ratio of Net Investment Income to Average Net Assets 3.41%** 3.88% 4.42%**
Portfolio Turnover Rate 8% 17% 19%
=====================================================================================================================
*Inception.
**Annualized.
31
FINANCIAL HIGHLIGHTS (CONTINUED)
INTERMEDIATE-TERM TAX-EXEMPT FUND INVESTOR SHARES
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED -------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.55 $13.61 $13.05 $12.79 $13.52 $13.35
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .286 .605 .637 .646 .648 .661
Net Realized and Unrealized Gain (Loss)on Investments .140 (.029) .560 .260 (.695) .222
- ----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .426 .576 1.197 .906 (.047) .883
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.286) (.605) (.637) (.646) (.648) (.661)
Distributions from Realized Capital Gains (.040) (.031) -- -- (.035) (.052)
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions (.326) (.636) (.637) (.646) (.683) (.713)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.65 $13.55 $13.61 $13.05 $12.79 $13.52
======================================================================================================================
TOTAL RETURN 3.17% 4.36% 9.36% 7.28% -0.40% 6.78%
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $7,243 $7,215 $6,944 $8,553 $8,228 $7,773
Ratio of Total Expenses to Average Net Assets 0.17%* 0.17% 0.19% 0.18% 0.18% 0.21%
Ratio of Net Investment Income to Average Net Assets 4.25%* 4.48% 4.77% 5.03% 4.83% 4.93%
Portfolio Turnover Rate 22%* 13% 13% 17% 17% 14%
======================================================================================================================
*Annualized.
INTERMEDIATE-TERM TAX-EXEMPT FUND ADMIRAL SHARES
- ---------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED FEB. 12* TO
ENDED OCT. 31, OCT. 31,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $13.55 $13.61 $13.44
Investment Operations
Net Investment Income .290 .612 .458
Net Realized and Unrealized Gain (Loss) on Investments .140 (.029) .170
- ---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .430 .583 .628
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.290) (.612) (.458)
Distributions from Realized Capital Gains (.040) (.031) --
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions (.330) (.643) (.458)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.65 $13.55 $13.61
=====================================================================================================================
TOTAL RETURN 3.21% 4.41% 4.77%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $4,693 $4,498 $3,494
Ratio of Total Expenses to Average Net Assets 0.11%** 0.12% 0.14%**
Ratio of Net Investment Income to Average Net Assets 4.31%** 4.53% 4.74%**
Portfolio Turnover Rate 22%** 13% 13%
=====================================================================================================================
*Inception.
**Annualized.
32
INSURED LONG-TERM TAX-EXEMPT FUND INVESTOR SHARES
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED -------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.85 $12.82 $12.14 $11.69 $12.73 $12.51
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .287 .597 .628 .649 .644 .658
Net Realized and Unrealized Gain (Loss)on Investments .223 .110 .680 .450 (.971) .301
- ----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .510 .707 1.308 1.099 (.327) .959
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.287) (.597) (.628) (.649) (.644) (.658)
Distributions from Realized Capital Gains (.083) (.080) -- -- (.069) (.081)
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions (.370) (.677) (.628) (.649) (.713) (.739)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.99 $12.85 $12.82 $12.14 $11.69 $12.73
======================================================================================================================
TOTAL RETURN 4.03% 5.74% 10.99% 9.68% -2.74% 7.88%
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,968 $1,191 $1,940 $2,300 $2,160 $2,235
Ratio of Total Expenses to Average Net Assets 0.17%* 0.18% 0.19% 0.19% .019% 0.20%
Ratio of Net Investment Income to Average Net Assets 4.51%* 4.72% 5.00% 5.48% 5.20% 5.22%
Portfolio Turnover Rate 20% 20% 21% 34% 17% 16%
======================================================================================================================
*Annualized.
INSURED LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES
- ---------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED FEB. 12* TO
ENDED OCT. 31, OCT. 31,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $12.85 $12.82 $12.64
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .291 .604 .452
Net Realized and Unrealized Gain (Loss) on Investments .223 .110 .180
- ---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .514 .714 .632
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.291) (.604) (.452)
Distributions from Realized Capital Gains (.083) (.080) --
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions (.374) (.684) (.452)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.99 $12.85 $12.82
=====================================================================================================================
TOTAL RETURN 4.06% 5.80% 5.11%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,008 $959 $844
Ratio of Total Expenses to Average Net Assets 0.11%** 0.12% 0.14%**
Ratio of Net Investment Income to Average Net Assets 4.57%** 4.77% 4.98%**
Portfolio Turnover Rate 20%** 20% 21%
=====================================================================================================================
*Inception.
**Annualized.
33
FINANCIAL HIGHLIGHTS (CONTINUED)
LONG-TERM TAX-EXEMPT FUND INVESTOR SHARES
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED --------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.36 $11.38 $10.73 $10.34 $11.39 $11.18
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .264 .539 .561 .572 .565 .580
Net Realized and Unrealized Gain (Loss)on Investments .211 .010 .650 .390 (.935) .268
- -----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .475 .549 1.211 .962 (.370) .848
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.264) (.539) (.561) (.572) (.565) (.580)
Distributions from Realized Capital Gains (.051) (.030) -- -- (.115) (.058)
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions (.315) (.569) (.561) (.572) (.680) (.638)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.52 $11.36 $11.38 $10.73 $10.34 $11.39
=======================================================================================================================
TOTAL RETURN 4.24% 5.00% 11.52% 9.58% -3.45% 7.78%
=======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,218 $1,249 $1,264 $1,649 $1,527 $1,509
Ratio of Total Expenses to Average Net Assets 0.18%* 0.17% 0.19% 0.19% 0.18% 0.21%
Ratio of Net Investment Income to Average Net Assets 4.65%* 4.80% 5.07% 5.46% 5.13% 5.13%
Portfolio Turnover Rate 12%* 15% 16% 25% 15% 18%
======================================================================================================================
*Annualized.
LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES
- ---------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED FEB. 12* TO
ENDED OCT. 31, OCT. 31,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.36 $11.38 $11.18
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .268 .545 .403
Net Realized and Unrealized Gain (Loss) on Investments .211 .010 .200
- ---------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .479 .555 .603
- ---------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.268) (.545) (.403)
Distributions from Realized Capital Gains (.051) (.030) --
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions (.319) (.575) (.403)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.52 $11.36 $11.38
=====================================================================================================================
TOTAL RETURN 4.28% 5.06% 5.51%
=====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $843 $825 $715
Ratio of Total Expenses to Average Net Assets 0.11%** 0.12% 0.13%**
Ratio of Net Investment Income to Average Net Assets 4.72%** 4.85% 5.02%**
Portfolio Turnover Rate 12%** 15% 16%
=====================================================================================================================
*Inception.
**Annualized.
34
HIGH-YIELD TAX-EXEMPT FUND INVESTOR SHARES
- ----------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED OCTOBER 31,
ENDED -------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.54 $10.72 $10.31 $10.13 $11.06 $10.83
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .267 .563 .576 .582 .571 .582
Net Realized and Unrealized Gain (Loss)on Investments .140 (.180) .410 .180 (.858) .282
- ----------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .407 .383 .986 .762 (.287) .864
- ----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.267) (.563) (.576) (.582) (.571) (.582)
Distributions from Realized Capital Gains -- -- -- -- (.072) (.052)
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions (.267) (.563) (.576) (.582) (.643) (.634)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.68 $10.54 $10.72 $10.31 $10.13 $11.06
======================================================================================================================
TOTAL RETURN 3.90% 3.67% 9.77% 7.79% -2.77% 8.19%
======================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $2,649 $2,670 $3,627 $3,033 $2,867 $2,704
Ratio of Total Expenses to Average Net Assets 0.17%* 0.17% 0.19% 0.19% 0.18% 0.20%
Ratio of Net Investment Income to Average Net Assets 5.06%* 5.30% 5.43% 5.74% 5.33% 5.28%
Portfolio Turnover Rate 17%* 18% 18% 32% 22% 24%
======================================================================================================================
*Annualized.
HIGH-YIELD TAX-EXEMPT FUND ADMIRAL SHARES
- ------------------------------------------------------------------------------------------------------------
SIX MONTHS NOV. 12, 2001* TO
ENDED OCT. 31,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD APR. 30, 2003 2001
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $10.54 $10.78
- ------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .270 .549
Net Realized and Unrealized Gain (Loss) on Investments .140 (.240)
- ------------------------------------------------------------------------------------------------------------
Total from Investment Operations .410 .309
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.270) (.549)
Distributions from Realized Capital Gains -- --
- ------------------------------------------------------------------------------------------------------------
Total Distributions (.270) (.549)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.68 $10.54
============================================================================================================
TOTAL RETURN 3.94% 2.96%
============================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,331 $1,275
Ratio of Total Expenses to Average Net Assets 0.11%** 0.12%**
Ratio of Net Investment Income to Average Net Assets 5.13%** 5.35%**
Portfolio Turnover Rate 17%** 18%
============================================================================================================
*Inception.
**Annualized.
35
NOTES TO FINANCIAL STATEMENTS
Vanguard Municipal Bond Funds comprise the Tax-Exempt Money Market, Short-Term
Tax-Exempt, Limited-Term Tax-Exempt, Intermediate-Term Tax-Exempt, Insured
Long-Term Tax-Exempt, Long-Term Tax-Exempt, and High-Yield Tax-Exempt Funds,
each of which is registered under the Investment Company Act of 1940 as an
open-end investment company, or mutual fund. Each fund invests in debt
instruments of many municipal issuers; the issuers' abilities to meet their
obligations may be affected by economic and political developments in a specific
state or region.
Each fund, except the Tax-Exempt Money Market Fund, offers two classes of
shares, Investor Shares and Admiral Shares. Investor Shares are available to any
investor who meets the funds' minimum purchase requirements. Admiral Shares are
designed for investors who meet certain administrative, servicing, tenure, and
account-size criteria. The Tax-Exempt Money Market Fund offers only Investor
Shares. A. The following significant accounting policies conform to generally
accepted accounting principles for U.S. mutual funds. The funds consistently
follow such policies in preparing their financial statements.
1. SECURITY VALUATION: Tax-Exempt Money Market Fund: Investment securities
are valued at amortized cost, which approximates market value. Other funds:
Bonds, and temporary cash investments acquired over 60 days to maturity, are
valued using the latest bid prices or using valuations based on a matrix system
(which considers such factors as security prices, yields, maturities, and
ratings), both as furnished by independent pricing services. Other temporary
cash investments are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available, or whose
values have been materially affected by events occurring before the funds'
pricing time but after the close of their primary markets, are valued by methods
deemed by the board of trustees to represent fair value.
2. FUTURES CONTRACTS: Each fund, except the Tax-Exempt Money Market Fund,
may use Municipal Bond Index, U.S. Treasury Bond, and U.S. Treasury Note futures
contracts, with the objectives of enhancing returns, managing interest-rate
risk, maintaining liquidity, diversifying credit risk, and minimizing
transaction costs. The funds may purchase or sell futures contracts instead of
bonds to take advantage of pricing differentials between the futures contracts
and the underlying bonds. The funds may also seek to take advantage of price
differences among bond market sectors by simultaneously buying futures (or
bonds) of one market sector and selling futures (or bonds) of another sector.
Futures contracts may also be used to simulate a fully invested position in the
underlying bonds while maintaining a cash balance for liquidity. The primary
risks associated with the use of futures contracts are imperfect correlation
between changes in market values of bonds held by the funds and the prices of
futures contracts, and the possibility of an illiquid market.
Futures contracts are valued based upon their quoted daily settlement
prices. The aggregate principal amounts of the contracts are not recorded in the
financial statements. Fluctuations in the value of the contracts are recorded in
the Statement of Net Assets as an asset (liability) and in the Statement of
Operations as unrealized appreciation (depreciation) until the contracts are
closed, when they are recorded as realized futures gains (losses).
3. FEDERAL INCOME TAXES: Each fund intends to continue to qualify as a
regulated investment company and distribute all of its income. Accordingly, no
provision for federal income taxes is required in the financial statements.
4. DISTRIBUTIONS: Distributions from net investment income are declared
daily and paid on the first business day of the following month. Annual
distributions from realized capital gains, if any, are recorded on the
ex-dividend date.
36
5. OTHER: Security transactions are accounted for on the date securities
are bought or sold. Costs used to determine realized gains (losses) on the sale
of investment securities are those of the specific securities sold. Premiums and
discounts are amortized and accreted, respectively, to interest income over the
lives of the respective securities.
Each class of shares has equal rights as to assets and earnings, except
that each class separately bears certain class-specific expenses related to
maintenance of shareholder accounts (included in Management and Administrative
expenses), shareholder reporting, and proxies. Marketing and distribution
expenses are allocated to each class of shares based on a method approved by the
board of trustees. Income, other non-class-specific expenses, and gains and
losses on investments are allocated to each class of shares based on its
relative net assets.
B. The Vanguard Group furnishes at cost investment advisory, corporate
management, administrative, marketing, and distribution services. The costs of
such services are allocated to each fund under methods approved by the board of
trustees. Each fund has committed to provide up to 0.40% of its net assets in
capital contributions to Vanguard. At April 30, 2003, the funds had contributed
capital to Vanguard (included in Other Assets) of:
- --------------------------------------------------------------------------------
CAPITAL CONTRIBUTION PERCENTAGE PERCENTAGE OF
TO VANGUARD OF FUND VANGUARD'S
TAX-EXEMPT FUND (000) NET ASSETS CAPITALIZATION
- --------------------------------------------------------------------------------
Money Market $2,191 0.02% 2.19%
Short-Term 736 0.02 0.74
Limited-Term 1,106 0.02 1.11
Intermediate-Term 2,273 0.02 2.27
Insured Long-Term 557 0.02 0.56
Long-Term 388 0.02 0.39
High-Yield 749 0.02 0.75
The funds' trustees and officers are also directors and officers of Vanguard.
C. The funds' investment adviser may direct new issue purchases, subject to
obtaining the best price and execution, to underwriters who have agreed to
rebate or credit to the funds part of the underwriting fees generated. Such
rebates or credits are used solely to reduce the funds' management and
administrative expenses. The funds' custodian bank has also agreed to reduce its
fees when the funds maintain cash on deposit in their non-interest-bearing
custody accounts. For the six months ended April 30, 2003, these arrangements
reduced expenses by:
- --------------------------------------------------------------------------------
EXPENSE REDUCTION
(000)
--------------------------- TOTAL EXPENSE REDUCTION
MANAGEMENT AND CUSTODIAN AS A PERCENTAGE OF
TAX-EXEMPT FUND ADMINISTRATIVE FEES AVERAGE NET ASSETS
- --------------------------------------------------------------------------------
Short-Term $ 49 $9 --
Limited-Term 142 9 0.01%*
Intermediate-Term 206 7 --
Long-Term 123 3 0.01*
High-Yield 125 5 0.01*
- --------------------------------------------------------------------------------
*Annualized.
37
NOTES TO FINACIAL STATEMENTS (CONTINUED)
D. Capital gain distributions are determined on a tax basis and may differ from
realized capital gains for financial reporting purposes. Differences may be
permanent or temporary. Permanent differences are reclassified among capital
accounts in the financial statements to reflect their tax character. Temporary
differences arise when gains or losses are recognized in different periods for
financial statement and tax purposes; these differences will reverse at some
time in the future.
The funds' tax-basis capital gains and losses are determined only at the
end of each fiscal year. For tax purposes, at October 31, 2002, the following
funds had tax-basis capital losses available to offset future net capital gains:
- --------------------------------------------------------------------------------
CAPITAL LOSSES
----------------------------------------
EXPIRATION: FISCAL
AMOUNT YEAR(S) ENDING
TAX-EXEMPT FUND (000) OCTOBER 31,
- --------------------------------------------------------------------------------
Short-Term $ 142 2008-2010
Limited-Term 3,694 2008-2009
High-Yield 19,184 2007-2010
- --------------------------------------------------------------------------------
The funds will use these capital losses to offset net taxable capital gains, if
any, realized during the year ending October 31, 2003; should the funds realize
net capital losses for the year, the losses will be added to the loss
carryforward balances above.
The following funds had realized losses through October 31, 2002, which are
deferred for tax purposes and reduce the amount of unrealized appreciation on
investment securities for tax purposes.
- --------------------------------------------------------------------------------
DEFERRED LOSSES
TAX-EXEMPT FUND (000)
- --------------------------------------------------------------------------------
Limited-Term $ 3,288
Intermediate-Term 67,883
Insured Long-Term 34,899
Long-Term 15,550
High-Yield 27,933
- --------------------------------------------------------------------------------
At April 30, 2003, net unrealized appreciation of investment securities for tax
purposes was:
- --------------------------------------------------------------------------------
(000)
----------------------------------------------
NET UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION
TAX-EXEMPT FUND SECURITIES SECURITIES (DEPRECIATION)
- --------------------------------------------------------------------------------
Short-Term $ 47,499 $ (2,625) $ 44,874
Limited-Term 192,882 (7,008) 185,874
Intermediate-Term 668,029 (73,109) 594,920
Insured Long-Term 243,472 (333) 243,139
Long-Term 182,086 (2,572) 179,514
High-Yield 242,923 (101,154) 141,769
- --------------------------------------------------------------------------------
38
At April 30, 2003, the aggregate settlement value of open futures contracts
expiring in June 2003 and the related unrealized appreciation (depreciation)
were:
- --------------------------------------------------------------------------------
(000)
---------------------------------------------
NUMBER OF AGGREGATE UNREALIZED
LONG (SHORT) SETTLEMENT APPRECIATION
TAX-EXEMPT FUND/FUTURES CONTRACTS CONTRACTS VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
Intermediate-Term
10-Year U.S. Treasury Note (6,094) $701,572 $(7,081)
Insured Long-Term
10-Year U.S. Treasury Note (1,035) 119,154 (1,228)
30-Year U.S. Treasury Bond 250 28,508 124
Long-Term
10-Year U.S. Treasury Note (1,256) 144,597 (1,076)
High-Yield
10-Year U.S. Treasury Note (1,695) 195,137 (2,077)
- --------------------------------------------------------------------------------
Unrealized appreciation (depreciation) on open futures contracts is required to
be treated as realized gain (loss) for tax purposes.
E. During the six months ended April 30, 2003, purchases and sales of investment
securities other than temporary cash investments were:
- --------------------------------------------------------------------------------
(000)
----------------------------------------
TAX-EXEMPT FUND PURCHASES SALES
- --------------------------------------------------------------------------------
Short-Term $ 603,562 $ 238,708
Limited-Term 903,635 184,447
Intermediate-Term 1,170,761 1,294,737
Insured Long-Term 268,452 365,483
Long-Term 117,772 112,595
High-Yield 317,389 510,413
- --------------------------------------------------------------------------------
F. Capital share transactions for each class of shares were:
- --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
------------------- --------------------
AMOUNT SHARES AMOUNT SHARES
TAX-EXEMPT FUND (000) (000) (000) (000)
- --------------------------------------------------------------------------------
Money Market
Issued $6,029,603 6,029,603 $10,570,551 10,570,551
Issued in Lieu of Cash
Distributions 58,315 58,315 131,741 131,741
Redeemed (5,370,680) (5,370,680) (8,966,505) (8,966,505)
-------------------------------------------------
Net Increase (Decrease) 717,238 717,238 1,735,787 1,735,787
- --------------------------------------------------------------------------------
39
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
----------------------------------------------
AMOUNT SHARES AMOUNT SHARES
TAX-EXEMPT FUND (000) (000) (000) (000)
- --------------------------------------------------------------------------------
SHORT-TERM
Investor Shares
Issued $683,832 43,317 $1,470,890 93,613
Issued in Lieu of Cash
Distributions 17,734 1,123 38,676 2,461
Redeemed (620,081) (39,287) (883,248) (56,196)
------------------------------------------------
Net Increase (Decrease)--
Investor Shares 81,485 5,153 626,318 39,878
------------------------------------------------
Admiral Shares
Issued 714,912 45,294 1,261,348 80,270
Issued in Lieu of Cash
Distributions 14,596 924 31,080 1,978
Redeemed (399,113) (25,283) (746,199) (47,494)
------------------------------------------------
Net Increase (Decrease)--
Admiral Shares 330,395 20,935 546,229 34,754
-------------------------------------------------
LIMITED-TERM
Investor Shares
Issued $848,844 76,636 $1,440,689 131,521
Issued in Lieu of Cash
Distributions 38,169 3,442 73,657 6,722
Redeemed (560,552) (50,629) (1,002,825) (91,554)
-------------------------------------------------
Net Increase (Decrease)--
Investor Shares 326,461 29,449 511,521 46,689
-------------------------------------------------
Admiral Shares
Issued 873,995 78,946 1,486,083 135,684
Issued in Lieu of Cash
Distributions 34,311 3,094 59,364 5,416
Redeemed (485,654) (43,870) (637,076) (58,219)
-------------------------------------------------
Net Increase (Decrease)--
Admiral Shares 422,652 38,170 908,371 82,881
-------------------------------------------------
INTERMEDIATE-TERM
Investor Shares
Issued $866,276 63,799 $2,084,416 154,140
Issued in Lieu of Cash
Distributions 136,089 10,004 254,713 18,879
Redeemed (1,031,468) (75,950) (2,031,677) (150,447)
-------------------------------------------------
Net Increase (Decrease)--
Investor Shares (29,103) (2,147) 307,452 22,572
-------------------------------------------------
Admiral Shares
Issued 722,192 53,118 1,765,226 130,635
Issued in Lieu of Cash
Distributions 78,963 5,804 136,523 10,115
Redeemed (642,022) (47,259) (880,079) (65,383)
-------------------------------------------------
Net Increase (Decrease)--
Admiral Shares 159,133 11,663 1,021,670 75,367
- --------------------------------------------------------------------------------
40
- --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
----------------------------------------------
AMOUNT SHARES AMOUNT SHARES
TAX-EXEMPT FUND (000) (000) (000) (000)
- --------------------------------------------------------------------------------
INSURED LONG-TERM
Investor Shares
Issued $196,399 15,280 $363,340 28,663
Issued in Lieu of Cash
Distributions 38,357 2,978 67,875 5,365
Redeemed (238,978) (18,600) (430,275) (33,974)
-------------------------------------------------
Net Increase (Decrease)--
Investor Shares (4,222) (342) 940 54
-------------------------------------------------
Admiral Shares
Issued 124,414 9,678 302,979 23,904
Issued in Lieu of Cash
Distributions 18,928 1,469 31,451 2,498
Redeemed (105,187) (8,185) (216,423) (17,144)
-------------------------------------------------
Net Increase (Decrease)--
Admiral Shares 38,155 2,962 118,007 9,258
-------------------------------------------------
LONG-TERM
Investor Shares
Issued $130,722 11,503 $319,401 28,384
Issued in Lieu of Cash
Distributions 24,407 2,136 44,555 3,969
Redeemed (203,092) (17,839) (376,389) (33,517)
-------------------------------------------------
Net Increase (Decrease)--
Investor Shares (47,963) (4,200) (12,433) (1,164)
-------------------------------------------------
Admiral Shares
Issued 116,770 10,254 307,013 27,315
Issued in Lieu of Cash
Distributions 14,765 1,292 26,091 2,324
Redeemed (124,899) (10,972) (224,112) (19,947)
-------------------------------------------------
Net Increase (Decrease)--
Admiral Shares 6,636 574 108,992 9,692
-------------------------------------------------
HIGH-YIELD
Investor Shares
Issued $305,787 28,890 $764,108 71,970
Issued in Lieu of Cash
Distributions 46,203 4,354 99,159 9,347
Redeemed (407,840) (38,516) (1,767,771) (166,237)
-------------------------------------------------
Net Increase (Decrease)--
Investor Shares (55,850) (5,272) (904,504) (84,920)
-------------------------------------------------
Admiral Shares
Issued 217,383 20,513 1,500,895 141,120
Issued in Lieu of Cash
Distributions 20,107 1,895 35,334 3,328
Redeemed (199,000) (18,787) (248,283) (23,421)
-------------------------------------------------
Net Increase (Decrease)--
Admiral Shares 38,490 3,621 1,287,946 121,027
- --------------------------------------------------------------------------------
41
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42
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BOND FUNDS
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New Jersey, New York, Ohio, Pennsylvania)
Total Bond Market Index Fund
MONEY MARKET FUNDS
Admiral(TM) Treasury Money Market Fund
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State Tax-Exempt Money Market Funds
(California, New Jersey,
New York, Ohio, Pennsylvania)
Tax-Exempt Money Market Fund
Treasury Money Market Fund
VARIABLE ANNUITY
Balanced Portfolio
Capital Growth Portfolio
Diversified Value Portfolio
Equity Income Portfolio
Equity Index Portfolio
Growth Portfolio
High Yield Bond Portfolio
International Portfolio
Mid-Cap Index Portfolio
Money Market Portfolio
REIT Index Portfolio
Short-Term Corporate Portfolio
Small Company Growth Portfolio
Total Bond Market Index Portfolio
Total Stock Market Index Portfolio
For information about Vanguard funds and annuities, including charges and
expenses, obtain a prospectus from The Vanguard Group, P.O. Box 2600, Valley
Forge, PA 19482-2600. Read it carefully before you invest or send money.
THE PEOPLE WHO GOVERN YOUR FUND
The trustees of your mutual fund are there to see that the fund is operated and
managed in your best interests since, as a shareholder, you are a part owner of
the fund. Your fund trustees also serve on the board of directors of The
Vanguard Group, Inc., which is owned by the Vanguard(R) funds and provides
services to them on an at-cost basis.
A majority of Vanguard's board members are independent, meaning that they
have no affiliation with Vanguard or the funds they oversee, apart from the
investments they have made as private individuals. Our independent board members
bring distinguished backgrounds in business, academia, and public service to
their task of working with Vanguard officers to establish the policies and
oversee the activities of the funds.
Among board members' responsibilities are selecting investment advisers for
the funds; monitoring fund operations, performance, and costs; reviewing
contracts; nominating and selecting new trustees/directors; and electing
Vanguard officers. The dates in parentheses below show when each trustee was
initially elected.
- --------------------------------------------------------------------------------
JOHN J. BRENNAN* Chairman of the Board, Chief Executive Officer, and
(1987) Director/Trustee of The Vanguard Group, Inc., and of each
of the investment companies served by The Vanguard Group.
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
CHARLES D. ELLIS The Partners of '63 (pro bono ventures in education);
(2001) Senior Adviser to Greenwich Associates (international
business strategy consulting); Successor Trustee of Yale
University; Overseer of the Stern School of Business at
New York University; Trustee of the Whitehead Institute
for Biomedical Research.
- --------------------------------------------------------------------------------
RAJIV L. GUPTA Chairman and Chief Executive Officer(since October 1999),
(2001) Vice Chairman (January-September 1999),and Vice President
(prior to September1999) of Rohm and Haas Co.(chemicals);
Director of Technitrol, Inc. (electronic components), and
Agere Systems (communications components); Board Member
of the American Chemistry Council; Trustee of Drexel
University.
- --------------------------------------------------------------------------------
JOANN HEFFERNAN HEISEN Vice President, Chief Information Officer, and Member of
(1998) the Executive Committee of Johnson & Johnson
(pharmaceuticals/consumer products); Director of the
Medical Center at Princeton and Women's Research and
Education Institute.
- --------------------------------------------------------------------------------
BURTON G. MALKIEL Chemical Bank Chairman's Professor of Economics,Princeton
(1977) University; Director of Vanguard Investment Series plc
(Irish investmentfund) (since November 2001), Vanguard
Group (Ireland)Limited (Irish investment management firm)
(since November 2001), Prudential Insurance Co. of
America, BKF Capital (investment management firm), The
Jeffrey Co. (holding company), and NeuVis, Inc. (software
company).
- --------------------------------------------------------------------------------
ALFRED M. RANKIN, JR. Chairman, President, Chief Executive Officer, and
(1993) Director of NACCO Industries, Inc. (forklift trucks/
housewares/lignite); Director of Goodrich Corporation
(industrial products/aircraft systems and services);
Director until 1998 of Standard Products Company (a
supplier for the automotive industry).
- --------------------------------------------------------------------------------
J. LAWRENCE WILSON Retired Chairman and Chief Executive Officer of Rohm and
(1985) Haas Co.(chemicals); Director of Cummins Inc. (diesel
engines), MeadWestvaco Corp. (paper products), and
AmerisourceBergen Corp. (pharmaceutical distribution);
Trustee of Vanderbilt University.
- --------------------------------------------------------------------------------
EXECUTIVE OFFICERS*
R. GREGORY BARTON Secretary; Managing Director and General Counsel of The
Vanguard Group, Inc. (since September 1997); Secretary of
The Vanguard Group and of each of the investment
companies served by The Vanguard Group; Principal of The
Vanguard Group (prior to September 1997).
THOMAS J. HIGGINS Treasurer; Principal of The Vanguard Group, Inc.;
Treasurer of each of the investment companies served by
The Vanguard Group.
- --------------------------------------------------------------------------------
*Officers of the funds are "interested persons" as defined in the Investment
Company Act of 1940.
More information about the trustees is in the Statement of Additional
Information, available from The Vanguard Group.
- --------------------------------------------------------------------------------
VANGUARD SENIOR MANAGEMENT TEAM
MORTIMER J. BUCKLEY, Information Technology. F. William McNabb, III, Client
Relationship Group.
JAMES H. GATELY, Investment Programs and Services. Michael S. Miller,
Planning and Development.
KATHLEEN C. GUBANICH, Human Resources. Ralph K. Packard, Finance.
IAN A. MACKINNON, Fixed Income Group. George U. Sauter, Quantitative
Equity Group.
- --------------------------------------------------------------------------------
JOHN C. BOGLE, Founder; Chairman and Chief Executive Officer, 1974-1996.
[PICTURE OF SHIP]
THE VANGUARD GROUP(R)
POST OFFICE BOX 2600
VALLEY FORGE, PA 19482-2600
Vanguard, The Vanguard Group, Vanguard.com, Vanguard IRA, Admiral, Consolidated
View, Explorer, Morgan, LifeStrategy, PlainTalk, STAR, Wellesley, Wellington,
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500 is a trademark of The McGraw- Hill Companies, Inc., and has been licensed
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endorsed, sold, or promoted by Standard & Poor's, and Standard & Poor's makes no
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licensed for use by The Vanguard Group, Inc. Vanguard Calvert Social Index Fund
is not sponsored, endorsed, sold, or promoted by Calvert Group, Ltd., and
Calvert Group, Ltd., makes no representation regarding the advisability of
investing in the fund.
All other marks are the exclusive property of their respective owners.
ABOUT OUR COVER
The photographs of the sails and ship that appear on the cover of this report
are copyrighted by Michael Kahn.
FOR MORE INFORMATION
This report is intended for the funds' shareholders. It may not be distributed
to prospective investors unless it is preceded or accompanied by the current
fund prospectus.
To receive a free copy of the prospectus or the Statement of Additional
Information, or to request additional information about the funds or other
Vanguard funds, please contact us at one of the adjacent telephone numbers or by
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All comparative mutual fund data are from Lipper Inc. or Morningstar, Inc.,
unless otherwise noted.
WORLD WIDE WEB
www.vanguard.com
FUND INFORMATION
1-800-662-7447
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1-800-662-2739
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(C) 2003 THE VANGUARD GROUP, INC.
ALL RIGHTS RESERVED.
VANGUARD MARKETING
CORPORATION, DISTRIBUTOR.
Q952 062003
VANGUARD(R) MUNICIPAL BOND FUNDS
SEMIANNUAL REPORT * APRIL 30, 2003 (UNAUDITED)
STATEMENT OF NET ASSETS
The Statement of Net Assets should be read in conjunction with the Statement of
Operations, Statement of Changes in Net Assets, Financial Highlights, and Notes
to Financial Statements, all of which appear in the accompanying report.
This Statement provides a detailed list of each fund's municipal bond
holdings by state, including each security's market value on the last day of the
reporting period and information on credit enhancements such as insurance or
letters of credit. Other assets are added to, and liabilities are subtracted
from, the value of Total Municipal Bonds to calculate the fund's Net Assets.
Finally, Net Assets are divided by the outstanding shares of the fund to arrive
at its share price, or Net Asset Value (NAV) Per Share.
At the end of the Statement of Net Assets of each fund, you will find a
table displaying the composition of the fund's net assets. Undistributed Net
Investment Income is usually zero because the fund distributes its net income to
shareholders as a dividend each day. Any realized gains must be distributed
annually, so the bulk of net assets consists of Paid-in Capital (money invested
by shareholders). The balance shown for Accumulated Net Realized Gains may
differ from the amount available to distribute to shareholders as taxable
capital gains as of the statement date because certain investments or
transactions may be treated differently for financial statement and tax
purposes. Any Accumulated Net Realized Losses, and any cumulative excess of
distributions over net realized gains, will appear as negative balances.
Unrealized Appreciation (Depreciation) is the difference between the value of
the fund's investments and their cost, and reflects the gains (losses) that
would be realized if the fund were to sell all of its investments at their
statement-date values.
- --------------------------------------------------------------------------------
CONTENTS
Tax-Exempt Money Market Fund 1
Short-Term Tax-Exempt Fund 20
Limited-Term Tax-Exempt Fund 32
Intermediate-Term Tax-Exempt Fund 49
Insured Long-Term Tax-Exempt Fund 78
Long-Term Tax-Exempt Fund 88
High-Yield Tax-Exempt Fund 96
Key to Abbreviations 108
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (98.8%)
- ----------------------------------------------------------------------------------------------------------------------------------
ALABAMA (0.8%)
Alabama Public School & College Auth. TOB VRDO 1.46% 5/7/2003(3)++ $ 5,000 $ 5,000
Birmingham AL GO VRDO 1.30% 5/7/2003(2)LOC 36,750 36,750
Jefferson County AL Sewer Rev.
(Capital Improvement) VRDO 1.35% 5/7/2003(3) 20,000 20,000
Mobile AL IDR (Kimberly-Clark Tissue Co.) VRDO 1.35% 5/7/2003 33,550 33,550
---------------
$ 95,300
---------------
ALASKA (0.9%)
Alaska Housing Finance Corp. (State Capital) VRDO 1.35% 5/7/2003(1) 10,000 10,000
Alaska Housing Finance Corp.
Governmental Purpose VRDO 1.45% 5/7/2003(1) 14,900 14,900
Alaska Housing Finance Corp. Home Mortgage VRDO 1.50% 5/7/2003(4) 50,000 50,000
Anchorage AK Electric Util.
(Muni. Light & Power) VRDO 1.30% 5/7/2003 LOC 19,990 19,990
Anchorage AK GO TOB VRDO 1.44% 5/7/2003 ++ 3,115 3,115
Valdez AK Marine Terminal Rev.
(Exxon Pipeline Co.) VRDO 1.30% 5/1/2003 800 800
---------------
$ 98,805
---------------
1
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
ARIZONA (0.9%)
Arizona School Fac. Board Rev. TOB VRDO 1.42% 5/7/2003 ++ 7,770 7,770
Arizona Transp. Board Highway Rev. 3.00% 7/1/2003 5,785 5,798
Phoenix AZ Civic Improvement Corp.
Water System Rev. TOB VRDO 1.42% 5/7/2003(Prere.) ++ 4,800 4,800
Pima County AZ IDA Draw Down-
Single Family Mortgage Rev. FR 1.25% 5/25/2003 27,940 27,940
Salt River Project Arizona Agricultural
Improvement & Power Dist. Rev. CP 1.10% 7/8/2003 5,000 5,000
Tucson & Pima County AZ IDA Draw Down-
Single Family Mortgage Rev. FR 1.29% 5/25/2003 50,000 50,000
---------------
$ 101,308
---------------
ARKANSAS (0.7%)
Pulaski County AR Health Fac. St. Vincent Infirmary
(Catholic Health Initiatives) VRDO 1.45% 5/7/2003 37,400 37,400
Univ. of Arkansas Board of Trustees Rev. VRDO 1.38% 5/7/2003(1) 45,455 45,455
---------------
$ 82,855
---------------
CALIFORNIA (6.6%)
Access To Loans For Learning Student Loan Corp.
California Rev. Student Loan Program VRDO 1.35% 5/7/2003 LOC 11,500 11,500
Access To Loans For Learning Student Loan Corp.
California Rev. Student Loan Program VRDO 1.35% 5/7/2003 LOC 18,800 18,800
California GO CP 1.20% 5/23/2003 44,000 44,000
California GO CP 1.35% 6/12/2003 10,000 10,000
California GO CP 1.35% 6/13/2003 58,000 58,000
California Higher Educ. Loan Auth.
Student Loan Rev. PUT 1.80% 6/1/2003 LOC 37,500 37,500
California State Dept. Water Resources
Power Supply Rev. VRDO 1.35% 5/1/2003 LOC 50,000 50,000
California State Dept. Water Resources
Power Supply Rev. VRDO 1.35% 5/7/2003 LOC 40,000 40,000
California State Dept. Water Resources
Power Supply Rev. VRDO 1.50% 5/7/2003 LOC 55,000 55,000
California State Dept. Water Resources
Power Supply Rev. VRDO 1.50% 5/7/2003(2) 31,000 31,000
Los Angeles CA TRAN 3.00% 6/30/2003 92,600 92,815
Los Angeles CA Unified School Dist. TRAN 3.25% 7/1/2003 50,000 50,132
Los Angeles County CA TRAN 3.00% 6/30/2003 75,000 75,166
Sacramento County CA TRAN 3.00% 8/1/2003 50,000 50,162
San Diego CA TAN 3.00% 8/1/2003 59,650 59,866
San Diego CA Unified School Dist. TRAN 3.00% 7/28/2003 50,000 50,177
Ventura County CA TRAN 3.00% 7/1/2003 30,000 30,067
---------------
$ 764,185
---------------
COLORADO (4.0%)
Colorado General Fund TRAN 3.00% 6/27/2003 33,000 33,066
Colorado Health Fac. Auth. Rev.
(Catholic Health Initiatives) VRDO 1.45% 5/7/2003 81,400 81,400
Colorado Health Fac. Auth. Rev.
(Exempla Inc.) VRDO 1.39% 5/7/2003 LOC 25,000 25,000
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Leavenworth) VRDO 1.40% 5/7/2003 10,000 10,000
Colorado Housing & Finance Auth.
Multi-Family Mortgage Bonds Class I VRDO 1.35% 5/7/2003(1) 12,200 12,200
2
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Colorado Housing & Finance Auth.
Multi-Family Mortgage Bonds Class I VRDO 1.70% 10/1/2003 10,000 10,000
Colorado Housing & Finance Auth. Single Family
Mortgage Bonds Class I Rev. 1.20% 3/1/2004 5,000 5,000
Colorado Housing & Finance Auth. Single Family
Mortgage Bonds Class I VRDO 1.35% 5/7/2003 5,000 5,000
Colorado Housing & Finance Auth. Single Family
Mortgage Bonds Class I VRDO 1.35% 5/7/2003 37,000 37,000
Colorado Housing & Finance Auth. Single Family
Mortgage Bonds Class I VRDO 1.35% 5/7/2003 12,215 12,215
Colorado Springs CO Util. System Rev. VRDO 1.30% 5/7/2003 35,000 35,000
Colorado Student Obligation Bond Auth. VRDO 1.40% 5/7/2003(2) 26,600 26,600
Denver CO City & County Airport Rev. VRDO 1.45% 5/7/2003(1) 135,200 135,200
Denver CO City & County Airport Rev. VRDO 1.55% 5/7/2003(1) 20,000 20,000
Regional Transp. Dist. of Colorado COP
(Transit Vehicles Project) VRDO 1.35% 5/7/2003(2) 15,000 15,000
---------------
$ 462,681
---------------
CONNECTICUT (0.6%)
Connecticut GO VRDO 1.35% 5/7/2003 7,740 7,740
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) VRDO 1.35% 5/7/2003(2) 44,245 44,245
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) VRDO 1.35% 5/7/2003(3) 13,200 13,200
---------------
$ 65,185
---------------
DELAWARE (0.4%)
Delaware GO 4.00% 7/1/2003 9,880 9,923
New Castle County DE Airport Fac. Rev.
(FlightSafety) VRDO 1.38% 5/7/2003 16,600 16,600
Univ. of Delaware Rev. VRDO 1.35% 5/1/2003 8,655 8,655
Univ. of Delaware Rev. VRDO 1.35% 5/7/2003 13,540 13,540
---------------
$ 48,718
---------------
DISTRICT OF COLUMBIA (2.7%)
District of Columbia
(Henry J. Kaiser Family Foundation) 1.38% 5/7/2003 12,000 12,000
VRDO
District of Columbia (National
Geographic Society) VRDO 1.30% 5/7/2003 17,670 17,670
District of Columbia (National
Public Radio Inc.) VRDO 1.35% 5/7/2003 LOC 13,400 13,400
District of Columbia
(Smithsonian Institute) VRDO 1.35% 5/7/2003 54,435 54,435
District of Columbia GO TOB VRDO 1.46% 5/7/2003(4) ++ 3,770 3,770
District of Columbia GO VRDO 1.35% 5/7/2003(3) 67,200 67,200
District of Columbia Housing Finance
Agency Draw Down-
Single Family Mortgage Rev. FR 1.31% 5/25/2003 78,750 78,750
District of Columbia Univ. Rev.
(George Washington Univ.) VRDO 1.35% 5/7/2003(1) 41,765 41,765
District of Columbia Water & Sewer Auth.
Public Util. Rev. TOB VRDO 1.46% 5/7/2003(4) ++ 18,875 18,875
District of Columbia Water & Sewer Auth.
Public Util. Rev. TOB VRDO 1.46% 5/7/2003(4) ++ 4,705 4,705
---------------
$ 312,570
---------------
FLORIDA (4.2%)
Dade County FL School Dist. GO 6.25% 2/15/2003(1) 5,520 5,737
Dade County FL Water & Sewer System Rev. VRDO 1.35% 5/7/2003(3) 78,395 78,395
Florida Board of Educ. Capital Outlay TOB VRDO 1.42% 5/7/2003 ++ 7,980 7,980
Florida Board of Educ. Rev.
(Lottery Rev.) TOB VRDO 1.42% 5/7/2003(1) ++ 34,130 34,130
3
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Florida Dept. of Transp. TOB VRDO 1.44% 5/7/2003 ++ $ 6,925 $ 6,925
Florida Dept. of Transp. TOB VRDO 1.44% 5/7/2003 ++ 7,585 7,585
Florida Division Board Financial Dept.
of General Services Systems Rev.
(Dept. of Environmental Protection) 5.25% 7/1/20(3) 18,350 18,461
Florida Division Board Financial
Dept. of General Services Systems Rev.
(Dept. of Environmental Protection) TOB VRDO 1.42% 5/7/2003(4) ++ 17,930 17,930
Hillsborough County FL Water &
Sewer Rev. TOB VRDO 1.43% 5/7/2003(2) ++ 10,095 10,095
Jacksonville FL Electric Auth. Rev.
(Electric System) VRDO 1.35% 5/1/2003 27,800 27,800
Jacksonville FL Electric Auth. Rev.
(Electric System) VRDO 1.35% 5/1/2003 10,100 10,100
Orange County FL Educ. Fac. Auth.Rev.
(Rollins College) VRDO 1.35% 5/1/2003 LOC 500 500
Orange County FL Health Fac. Auth.Rev.
(Adventist Sunbelt Group) VRDO 1.35% 5/7/2003 LOC 52,300 52,300
Orange County FL Housing Finance Auth.
Single Family Mortgage 1.52% 5/7/2003 ++ 15,995 15,995
Rev. TOB VRDO
Orange County FL School Board VRDO 1.40% 5/1/2003(1) 1,400 1,400
Orlando & Orange County FL
Expressway Auth. VRDO 1.35% 5/7/2003(4) 40,235 40,235
Orlando FL Util. Comm. Water &
Electric Rev. VRDO 1.35% 5/7/2003 2,000 2,000
Palm Beach County FL School Dist. TAN 3.00% 9/30/2003 44,000 44,275
Palm Beach County FL Special Purpose Fac. Rev.
(FlightSafety) VRDO 1.38% 5/7/2003 18,000 18,000
Sunshine State Florida Govt.
Financing Comm. Rev. VRDO 1.34% 5/7/2003(2) 7,500 7,500
Sunshine State Florida Govt.
Financing Comm. Rev. VRDO 1.35% 5/7/2003(2) 74,875 74,875
Tampa Bay FL Water Util. System Rev. TOB VRDO 1.42% 5/7/2003(3)(Prere.)++ 2,500 2,500
---------------
$ 484,718
---------------
GEORGIA (3.8%)
Atlanta GA Water & Wastewater Rev. TOB VRDO 1.43% 5/7/2003(1) ++ 9,995 9,995
Atlanta GA Water & Wastewater Rev. TOB VRDO 1.43% 5/7/2003(3) ++ 18,495 18,495
Atlanta GA Water & Wastewater Rev. VRDO 1.40% 5/1/2003(4) 7,490 7,490
Atlanta GA Water & Wastewater Rev. VRDO 1.40% 5/7/2003(4) 45,540 45,540
Burke County GA Dev. Auth. PCR
(Oglethorpe Power Corp.) VRDO 1.33% 5/7/2003(3)(Prere.) 59,135 59,135
Cobb County GA Rev. (Kennesaw State Univ.) VRDO 1.35% 5/7/2003 LOC 22,700 22,700
Floyd County GA Dev. Auth. Rev.
(Berry College) VRDO 1.35% 5/7/2003 LOC 15,000 15,000
Fulco GA Hosp. Auth. Rev.
(Piedmont Hosp.) VRDO 1.35% 5/7/2003 LOC 14,000 14,000
Fulco GA Hosp. Auth. Rev.
(Shepherd Center) VRDO 1.35% 5/7/2003 LOC 7,300 7,300
Fulton County GA Dev. Auth.
(Robert A. Woodruff Arts 1.30% 5/7/2003 10,000 10,000
Center) VRDO
Fulton County GA Fac. Corp. COP Fulton County GA
Public Purpose Project TOB VRDO 1.44% 5/7/2003(2) ++ 16,695 16,695
Fulton County GA School Dist. TOB VRDO 1.44% 5/7/2003 ++ 21,000 21,000
Georgia GO 6.50% 12/1/2003 5,000 5,155
Georgia GO TOB PUT 1.25% 7/17/2003 ++ 11,150 11,150
Georgia GO TOB VRDO 1.42% 5/7/2003 ++ 31,420 31,420
Georgia GO TOB VRDO 1.44% 5/7/2003 ++ 10,580 10,580
Georgia GO TOB VRDO 1.44% 5/7/2003 ++ 6,260 6,260
Georgia Road & Tollway Auth. Rev. TOB VRDO 1.44% 5/7/2003 ++ 4,885 4,885
Gwinnett County GA Hosp. Auth. Rev.
(Gwinnett Hosp. System Inc.) VRDO 1.35% 5/7/2003 LOC 10,000 10,000
Macon-Bibb County GA Hosp. Auth.
(Medical Center of Central Georgia) VRDO 1.35% 5/7/2003 LOC 15,350 15,350
4
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Metro. Atlanta GA Rapid Transp. Auth.
Georgia Sales Tax Rev. VRDO 1.35% 5/7/2003 LOC 38,570 38,570
Private Colleges & Univ. Auth. of Georgia Rev.
(Emory Univ.) TOB VRDO 1.44% 5/7/2003 ++ 5,000 5,000
Private Colleges & Univ. Auth. of Georgia Rev.
(Emory Univ.) VRDO 1.35% 5/7/2003 19,945 19,945
Private Colleges & Univ. Fac. Auth. of Georgia Rev.
(Emory Univ.) VRDO 1.35% 5/7/2003 4,000 4,000
Richmond County GA Hosp. Auth.
(Univ. of Health Services)VRDO 1.35% 5/7/2003 LOC 27,100 27,100
---------------
$ 436,765
---------------
HAWAII (0.7%)
Hawaii GO TOB VRDO 1.42% 5/7/2003(4) ++ 4,000 4,000
Hawaii GO TOB VRDO 1.44% 5/7/2003(4) ++ 8,435 8,435
Honolulu HI City & County PUT 1.30% 12/4/2003(3) 16,700 16,700
Honolulu HI City & County PUT 1.30% 12/4/2003(3) 16,700 16,700
Honolulu HI City & County PUT 1.30% 12/4/2003(3) 4,200 4,200
Honolulu HI Multifamily Housing Rev.
Hillside Apartments VRDO 1.40% 5/7/2003 LOC 27,500 27,500
---------------
$ 77,535
---------------
IDAHO (0.7%)
Idaho Housing & Finance Assn. Single Family
Mortgage Rev. VRDO 1.40% 5/7/2003 10,500 10,500
Idaho Housing & Finance Assn. Single Family
Mortgage Rev. VRDO 1.40% 5/7/2003 12,250 12,250
Idaho Housing & Finance Assn. Single Family
Mortgage Rev. VRDO 1.40% 5/7/2003 12,000 12,000
Idaho Housing & Finance Assn. Single Family
Mortgage Rev. VRDO 1.40% 5/7/2003 9,500 9,500
Idaho Housing & Finance Assn. Single Family
Mortgage Rev. VRDO 1.40% 5/7/2003 12,500 12,500
Idaho Housing & Finance Assn. Single Family
Mortgage Rev. VRDO 1.40% 5/7/2003 12,500 12,500
Idaho Housing & Finance Assn. Single Family
Mortgage Rev. VRDO 1.40% 5/7/2003 8,300 8,300
Idaho Housing & Finance Assn. Single Family
Mortgage Rev. VRDO 1.40% 5/7/2003 6,700 6,700
---------------
$ 84,250
---------------
ILLINOIS (9.8%)
Chicago IL Board of Educ. TOB VRDO 1.42% 5/7/2003(4) ++ 7,085 7,085
Chicago IL Board of Educ. TOB VRDO 1.44% 5/7/2003(1) ++ 5,370 5,370
Chicago IL Board of Educ. TOB VRDO 1.44% 5/7/2003(2) ++ 6,045 6,045
Chicago IL Board of Educ. VRDO 1.35% 5/7/2003(4) 69,100 69,100
Chicago IL Board of Educ. VRDO 1.35% 5/7/2003(4) 31,400 31,400
Chicago IL Board of Educ. VRDO 1.35% 5/7/2003(4) 52,200 52,200
Chicago IL GO 1.28% 12/4/2003 LOC 40,000 40,000
Chicago IL GO TOB VRDO 1.42% 5/7/2003(3) ++ 7,905 7,905
Chicago IL GO TOB VRDO 1.42% 5/7/2003(3) ++ 3,620 3,620
Chicago IL GO TOB VRDO 1.43% 5/7/2003(2) ++ 19,995 19,995
Chicago IL GO TOB VRDO 1.44% 5/7/2003(1) ++ 2,500 2,500
Chicago IL GO VRDO 1.38% 5/7/2003(3) 45,000 45,000
Chicago IL Metro. Water Reclamation Dist. GO 5.85% 12/1/2003 6,355 6,526
5
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Chicago IL Metro. Water Reclamation Dist.
GO TOB VRDO 1.44% 5/7/2003 ++ 5,390 5,390
Chicago IL Metro. Water Reclamation Dist.
GO VRDO 1.30% 5/7/2003 69,700 69,700
Chicago IL Metro. Water Reclamation Dist.
GO VRDO 1.33% 5/7/2003 33,000 33,000
Chicago IL Park Dist. GO TOB VRDO 1.43% 5/7/2003(3) ++ 9,990 9,990
Chicago IL Park Dist. TOB VRDO 1.43% 5/7/2003(3) ++ 5,660 5,660
Chicago IL Park Dist. TOB VRDO 1.43% 5/7/2003(3) ++ 5,310 5,310
Chicago IL Public Building Comm.
(Chicago School Reform Board) TOB VRDO 1.42% 5/7/2003(3) ++ 5,400 5,400
Chicago IL Public Building Comm. GO TOB VRDO 1.42% 5/7/2003(2) ++ 6,910 6,910
Chicago IL Sales Tax Rev. TOB VRDO 1.42% 5/7/2003(3) ++ 5,393 5,392
Chicago IL Sales Tax Rev. VRDO 1.35% 5/7/2003(3) 70,000 70,000
Chicago IL Water Rev. TOB VRDO 1.42% 5/7/2003(2) ++ 12,775 12,775
Chicago IL Water Rev. VRDO 1.35% 5/7/2003 LOC 30,125 30,125
Cook County IL GO 5.75% 11/15/2003(3) 5,000 5,123
Cook County IL GO TOB VRDO 1.42% 5/7/2003(2) ++ 13,550 13,550
Cook County IL GO TOB VRDO 1.43% 5/7/2003(3) ++ 11,500 11,500
Illinois Dev. Finance Auth. Hosp. Rev.
(Evanston Northwestern Healthcare Corp.) VRDO 1.35% 5/7/2003 58,100 58,100
Illinois Dev. Finance Auth. Rev.
(Bradley Univ.) VRDO 1.37% 5/7/2003(3) 19,750 19,750
Illinois Educ. Fac. Auth. Rev.
(Adler Planetarium) VRDO 1.35% 5/7/2003 LOC 23,600 23,600
Illinois Educ. Fac. Auth. Rev.
(DePaul Univ.) VRDO 1.35% 5/7/2003 LOC 36,500 36,500
Illinois Educ. Fac. Auth. Rev.
(Field Museum of Natural History) VRDO 1.40% 5/7/2003 LOC 15,000 15,000
Illinois GO TOB PUT 1.30% 7/17/2003(1) ++ 15,320 15,320
Illinois GO TOB VRDO 1.42% 5/7/2003(1) ++ 6,925 6,925
Illinois GO TOB VRDO 1.42% 5/7/2003(1) ++ 4,270 4,270
Illinois GO TOB VRDO 1.42% 5/7/2003(1) ++ 5,380 5,380
Illinois GO TOB VRDO 1.42% 5/7/2003(1) ++ 5,135 5,135
Illinois GO TOB VRDO 1.42% 5/7/2003(1) ++ 7,510 7,510
Illinois GO TOB VRDO 1.42% 5/7/2003 ++ 7,630 7,630
Illinois GO TOB VRDO 1.44% 5/7/2003(3) ++ 22,000 22,000
Illinois GO TOB VRDO 1.46% 5/7/2003(4) ++ 15,165 15,165
Illinois GO TOB VRDO 1.46% 5/7/2003(2) ++ 2,940 2,940
Illinois GO TOB VRDO 1.46% 5/7/2003(1) ++ 5,765 5,765
Illinois GO TOB VRDO 1.30% 7/17/2003(3) ++ 9,670 9,670
Illinois Health Fac. Auth. Rev.
(Carle Foundation) VRDO 1.35% 5/7/2003(2) 38,000 38,000
Illinois Health Fac. Auth. Rev. (Gottlieb Health
Resources Inc. Obligated Group) VRDO 1.35% 5/7/2003 LOC 27,800 27,800
Illinois Health Fac. Auth. Rev.
(Northwestern Memorial Hosp.) VRDO 1.35% 5/1/2003 7,500 7,500
Illinois Health Fac. Auth. Rev.
(Northwestern Memorial Hosp.) VRDO 1.35% 5/1/2003 3,500 3,500
Illinois Health Fac. Auth. Rev.
(Northwestern Memorial Hosp.) VRDO 1.36% 5/1/2003 19,800 19,800
Illinois Health Fac. Auth. Rev.
(OSF Healthcare System) VRDO 1.40% 5/1/2003 LOC 25,300 25,300
Illinois RAN 3.00% 6/15/2003 50,000 50,092
Illinois Regional Transp. Auth. Rev. TOB VRDO 1.42% 5/7/2003(3) ++ 12,895 12,895
Illinois Sales Tax Rev. TOB VRDO 1.42% 5/7/2003YY 10,630 10,630
Illinois Sales Tax Rev. TOB VRDO 1.42% 5/7/2003(3) ++ 3,500 3,500
Illinois Sales Tax Rev. TOB VRDO 1.42% 5/7/2003(4) ++ 5,480 5,480
6
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Illinois Sales Tax Rev. TOB VRDO 1.42% 5/7/2003 ++ $ 8,390 $ 8,390
Illinois Sales Tax Rev. TOB VRDO 1.42% 5/7/2003 ++ 5,775 5,775
Illinois Student Assistance Comm.
Student Loan Rev. VRDO 1.42% 5/7/2003 LOC 9,000 9,000
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. TOB VRDO 1.42% 5/7/2003(2) ++ 5,495 5,495
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. TOB VRDO 1.42% 5/7/2003(1) ++ 6,145 6,145
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. TOB VRDO 1.42% 5/7/2003(1) ++ 14,995 14,995
Metro. Pier & Exposition Auth. Illinois Dedicated
Tax Rev. TOB VRDO 1.44% 5/7/2003(1)++ 10,000 10,000
Regional Transp. Auth. Cook, Du Page,
Kane, Lake, McHenry, and Will Counties IL GO 3.00% 6/1/2003(3) 4,360 4,365
Regional Transp. Auth. Cook, Du Page,
Kane, Lake, McHenry, and Will Counties IL GO
TOB VRDO 1.42% 5/7/2003(1) ++ 10,320 10,320
Schaumburg IL GO VRDO 1.35% 5/7/2003 14,200 14,200
---------------
$ 1,140,413
---------------
Indiana (2.1%)
Delaware County IN Hosp. Auth. Rev.
(Cardinal Health Systems) VRDO 1.40% 5/7/2003(2) 37,300 37,300
Indiana Dev. Finance Auth. Rev.
(Indianapolis Museum of Art) VRDO 1.40% 5/7/2003 LOC 13,000 13,000
Indiana Educ. Fac. Auth. (Wabash College) VRDO 1.40% 5/7/2003 LOC 34,020 34,020
Indiana Health Fac. Auth. Finance Auth. Rev.
(Ascension Health Credit Group) PUT 1.83% 7/3/2003 15,000 15,000
Indiana Health Fac. Auth. Finance Auth. Rev.
(Ascension Health Credit Group) PUT 1.83% 7/3/2003 13,000 13,000
Indiana Housing Finance Auth. Single Family
Mortgage Rev. PUT 1.35% 12/10/2003 6,495 6,495
Indiana Muni. Power Agency Rev. VRDO 1.35% 5/7/2003 LOC 10,000 10,000
Indiana Office Building Comm. Fac. Rev.
(Indiana Govt. Center South) VRDO 1.35% 5/7/2003 36,100 36,100
Indiana Office Building Comm. Fac. Rev.
(Miami Correctional Fac.) VRDO 1.35% 5/7/2003 23,000 23,000
Indiana Office Building Comm. Fac. Rev.
(Pendleton Juvenile Corrections Fac.) VRDO 1.35% 5/7/2003 32,400 32,400
Indianapolis IN Local Public Improvement
Bond Bank TOB VRDO 1.42% 5/7/2003(1) ++ 9,745 9,745
Whiting IN Environmental Fac. Rev.
(BP Products) VRDO 1.40% 5/1/2003 9,580 9,580
---------------
$ 239,640
---------------
Iowa (0.3%)
Iowa Finance Auth. Rev. TOB VRDO 1.44% 5/7/2003 ++ 6,045 6,045
Iowa Higher Educ. Loan Auth. Rev. Private
College Fac.(Grinnell College Project) VRDO 1.40% 5/7/2003 25,000 25,000
---------------
$ 31,045
---------------
KANSAS (2.7%)
Kansas Dept. of Transp. Highway Rev. VRDO 1.32% 5/7/2003 25,000 25,000
Kansas Dept. of Transp. Highway Rev. VRDO 1.32% 5/7/2003 18,800 18,800
Kansas Dept. of Transp. Highway Rev. VRDO 1.32% 5/7/2003 37,000 37,000
Kansas Dept. of Transp. Highway Rev. VRDO 1.35% 5/7/2003 22,500 22,500
Kansas Dept. of Transp. Highway Rev. VRDO 1.35% 5/7/2003 34,400 34,400
7
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Kansas Dev. Finance Auth. TOB VRDO 1.44% 5/7/2003 ++ 5,375 5,375
Koch Industries Multi-State TOB VRDO 1.61% 5/7/2003(2) ++ 138,548 138,548
Sedgwick County KS Airport Fac. Rev.
(FlightSafety) VRDO 1.38% 5/7/2003 34,000 34,000
---------------
$ 315,623
---------------
KENTUCKY (2.2%)
Berea KY Educ. Fac. Rev. (Berea College) VRDO 1.40% 5/1/2003 12,000 12,000
Jeffersontown KY Lease Program
(Kentucky League of Cities Funding) VRDO 1.36% 5/7/2003 LOC 5,200 5,200
Kentucky Asset/Liability Comm. General Fund FR 1.51% 5/7/2003 60,000 60,000
Kentucky Asset/Liability Comm. General Fund Rev. 2.75% 6/26/2003 12,270 12,290
Kentucky Econ. Dev. Finance Auth. Hosp. Fac. Rev.
(Baptist Healthcare) VRDO 1.35% 5/7/2003(1) 20,865 20,865
Kentucky Housing Corp. Single Family Mortgage Rev.
Draw Down TOB VRDO 1.52% 5/7/2003 ++ 5,665 5,665
Kentucky Housing Corp. Single Family Mortgage Rev.
Draw Down TOB VRDO 1.52% 5/7/2003 ++ 16,665 16,665
Kentucky Housing Corp. Single Family Mortgage Rev.
Draw Down TOB VRDO 1.52% 5/7/2003 ++ 5,100 5,100
Kentucky Property & Building Comm. Rev. TOB VRDO 1.42% 5/7/2003(4) ++ 5,900 5,900
Louisville & Jefferson County KY Regional Airport Auth.
Special Fac. (UPS Worldwide Forwarding) VRDO 1.40% 5/1/2003 3,800 33,800
Louisville & Jefferson County KY TOB VRDO 1.44% 5/7/2003(1) ++ 15,000 15,000
Warren County KY Rev.
(Western Kentucky Univ. Student Life) VRDO 1.35% 5/7/2003 LOC 65,455 65,455
---------------
$ 257,940
---------------
LOUISIANA
Louisiana GO TOB VRDO 1.42% 5/7/2003(2) ++ 5,325 5,325
MAINE (0.3%)
Maine GO TAN 2.25% 6/30/2003 10,000 10,012
Maine Health & Higher Educ. Fac. Auth. Rev.
(Bowdoin College) VRDO 1.31% 5/7/2003 LOC 12,405 12,405
Maine Housing Auth. Mortgage PUT 1.60% 7/15/2003 4,000 4,000
Maine Housing Auth. Mortgage PUT 1.65% 7/15/2003 8,000 8,000
---------------
$ 34,417
---------------
MARYLAND (0.8%)
Baltimore County MD Metro. Dist. CP 1.20% 6/2/2003 10,200 10,200
Baltimore Mayor & City Council Maryland Consolidated
Public Improvement Project Refunding VRDO 1.30% 5/7/2003(3) 17,000 17,000
Frederick County MD Consolidated Public
Improvement VRDO 1.35% 5/7/2003 3,805 3,805
Maryland Dept. of Housing & Community Dev.
Mortgage TOB VRDO 1.52% 5/7/2003 ++ 19,630 19,630
Maryland Dept. of Housing & Community Dev.
TOB VRDO 1.47% 5/7/2003 ++ 5,165 5,165
Univ. of Maryland System Auxiliary Fac. &
Tuition Rev. TOB VRDO 1.42% 5/7/2003 ++ 7,073 7,073
Washington Suburban Sanitation Dist.
Maryland VRDO 1.35% 5/7/2003 32,600 32,600
---------------
$ 95,473
---------------
Massachusetts (3.2%)
Brookline MA BAN 3.50% 5/15/2003 15,500 15,510
Massachusetts Bay Transp. Auth. Rev. VRDO 1.35% 5/7/2003 33,400 33,400
8
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Dev. Finance Agency Rev.
(Boston Univ.) VRDO 1.45% 5/7/2003(10) 7,700 7,700
Massachusetts Dev. Finance Agency Rev.
(Smith College) VRDO 1.35% 5/7/2003 700 700
Massachusetts GO 4.00% 9/1/2003 52,670 53,168
Massachusetts GO TOB VRDO 1.42% 5/7/2003(3) ++ 10,000 10,000
Massachusetts GO VRDO 1.35% 5/1/2003 1,700 1,700
Massachusetts GO VRDO 1.35% 5/7/2003 2,900 2,900
Massachusetts GO VRDO 1.40% 5/7/2003 11,600 11,600
Massachusetts GO VRDO 1.50% 5/7/2003 125,900 125,900
Massachusetts GO VRDO 1.50% 5/7/2003 33,100 33,100
Massachusetts Housing Finance
Agency Housing Rev. VRDO 1.35% 5/7/2003 50,000 50,000
Massachusetts Water Resources Auth. Rev. VRDO 1.30% 5/1/2003LOC 6,000 6,000
Massachusetts Water Resources Auth. Rev. VRDO 1.40% 5/1/2003LOC 15,250 15,250
---------------
$ 366,928
---------------
MICHIGAN (5.4%)
Detroit MI City School Dist. TOB VRDO 1.44% 5/7/2003(3) ++ 3,725 3,725
Detroit MI Sewage Disposal System VRDO 1.35% 5/7/2003(3) 21,300 21,300
DetroitMI Water Supply System VRDO 1.35% 5/7/2003(3) 46,380 46,380
Detroit MI Water Supply System VRDO 1.35% 5/7/2003(1) 54,000 54,000
Huron Valley MI School Dist. TOB VRDO 1.44% 5/7/2003 ++ 11,000 11,000
Michigan Building Auth. Rev. TOB VRDO 1.42% 5/7/2003(4) ++ 9,635 9,635
Michigan Building Auth. Rev. TOB VRDO 1.42% 5/7/2003 ++ 8,925 8,925
Michigan Building Auth. Rev. VRDO 1.35% 5/7/2003 67,310 67,310
Michigan GAN VRDO 1.35% 5/7/2003(4) 32,900 32,900
Michigan GAN VRDO 1.35% 5/7/2003(4) 33,100 33,100
Michigan GAN VRDO 1.35% 5/7/2003(4) 16,300 16,300
Michigan GAN VRDO 1.35% 5/7/2003(4) 31,000 31,000
Michigan GO School Loan CP 1.05% 6/3/2003 30,000 30,000
Michigan Higher Educ. Student Loan Auth. VRDO 1.40% 5/7/2003(2) 34,100 34,100
Michigan Housing Dev. Auth. Rev. VRDO 1.33% 5/7/2003 LOC 23,145 23,145
Michigan Housing Dev. Auth. Rev. VRDO 1.35% 5/7/2003(1) 8,395 8,395
Michigan Housing Dev. Auth. Rev. VRDO 1.38% 5/7/2003(1) 43,770 43,770
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) TOB VRDO 1.42% 5/7/2003 ++ 5,690 5,690
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) TOB VRDO 1.42% 5/7/2003 ++ 7,580 7,580
Michigan State Univ. Board of Trustees VRDO 1.30% 5/7/2003 13,980 13,980
Oakland County MI Econ. Dev. Corp.
(Cranbrook Educ. Comm.) VRDO 1.40% 5/7/2003 6,500 6,500
Saline Area Schools Washtenaw County MI VRDO 1.35% 5/7/2003 50,000 50,000
Univ. of Michigan Hosp. Rev.
(Medical Service Plan) VRDO 1.40% 5/1/2003 8,895 8,895
Univ. of Michigan Hosp. Rev.
(Medical Service Plan) VRDO 1.40% 5/1/2003 8,400 8,400
Univ. of Michigan Hosp. Rev. VRDO 1.40% 5/1/2003 15,000 15,000
Univ. of Michigan Univ. Rev. VRDO 1.30% 5/7/2003 34,600 34,600
---------------
$ 625,630
---------------
MINNESOTA (1.1%)
Dakota County MN CDA Draw Down-
Single Family Mortgage Rev. TOB VRDO 1.52% 5/7/2003 ++ 7,245 7,245
Minneapolis St. Paul MN Housing Finance Board
Rev. TOB VRDO 1.46% 5/7/2003 ++ 3,610 3,610
9
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Minneapolis St. Paul MN Housing Finance Board
Rev. TOB VRDO 1.51% 5/7/2003 ++ 4,895 4,895
Minnesota GO TOB VRDO 1.42% 5/7/2003 ++ 7,995 7,995
Minnesota GO TOB VRDO 1.42% 5/7/2003 ++ 5,790 5,790
Minnesota GO TOB VRDO 1.44% 5/7/2003 ++ 5,000 5,000
Regents of the Univ. of Minnesota GO VRDO 1.35% 5/7/2003 89,400 89,400
Southern MN Muni. Power Agency Power Supply
System Rev. TOB VRDO 1.46% 5/7/2003(2) ++ 7,715 7,715
---------------
$ 131,650
---------------
MISSISSIPPI (0.3%)
Mississippi GO 6.50% 5/1/2003 4,285 4,285
Mississippi GO TOB VRDO 1.43% 5/7/2003(4) ++ 9,200 9,200
Mississippi GO TOB VRDO 1.43% 5/7/2003 ++ 12,515 12,515
Mississippi GO TOB VRDO 1.44% 5/7/2003(3) ++ 4,000 4,000
Mississippi GO TOB VRDO 1.44% 5/7/2003(3) ++ 4,400 4,400
---------------
$ 34,400
---------------
MISSOURI (1.7%)
Bi-State Dev. Agency of the Missouri-Illinois
Metro. Dist. (St. Clair County Metrolink
Extension) VRDO 1.35% 5/7/2003(4) 26,000 26,000
Missouri Building GO TOB VRDO 1.42% 5/7/2003 ++ 10,653 10,653
Missouri Environmental Improvement & Energy Resource
Auth. Water PCR (Clean Water SRF Program)
TOB VRDO 1.42% 5/7/2003 ++ 7,620 7,620
Missouri Health & Educ. Fac. Auth.
(Washington Univ.) VRDO 1.40% 5/1/2003 6,000 6,000
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(Sisters of Mercy Health Care System) VRDO 1.40% 5/7/2003 13,350 13,350
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(Sisters of Mercy Health Care System) VRDO 1.40% 5/7/2003 12,000 12,000
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(Sisters of Mercy Health Care System) VRDO 1.40% 5/7/2003 13,350 13,350
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(Sisters of Mercy Health Care System) VRDO 1.40% 5/7/2003 11,100 11,100
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(Sisters of Mercy Health Care System) VRDO 1.40% 5/7/2003 14,300 14,300
Missouri Health & Educ. Fac. Auth. Rev.
(Medical Research Fac.-Stowers Institute) VRDO 1.35% 5/7/2003(1) 50,000 50,000
Missouri Higher Educ. Student Loan Auth. VRDO 1.35% 5/7/2003 LOC 24,900 24,900
Missouri Housing Dev. Corp. Single
Family Mortgage Rev. TOB VRDO 1.47% 5/7/2003 ++ 6,460 6,460
---------------
$ 195,733
---------------
NEBRASKA (1.3%)
Lincoln NE Lincoln Electric System CP 1.15% 5/13/2003 48,350 48,350
Nebraska Higher Educ. Loan Program VRDO 1.45% 5/7/2003(1) ++ 24,700 24,700
Nebraska Higher Educ. Loan Program VRDO 1.45% 5/7/2003(1) ++ 20,575 20,575
Nebraska Higher Educ. Loan Program VRDO 1.45% 5/7/2003(1) ++ 24,280 24,280
Nebraska Higher Educ. Loan Program VRDO 1.45% 5/7/2003(1) ++ 27,675 27,675
---------------
$ 145,580
---------------
NEVADA (0.2%)
Clark County NV Airport System Rev. TOB VRDO 1.43% 5/7/2003(3) ++ 10,095 10,095
Clark County NV GO TOB VRDO 1.42% 5/7/2003(3) ++ 4,000 4,000
Nevada TOB GO VRDO 1.42% 5/7/2003 ++ 5,125 5,125
---------------
$ 19,220
---------------
10
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE (0.5%)
New Hampshire Health & Educ. Fac. Auth. Rev.
(Dartmouth College) VRDO 1.30% 5/7/2003 $ 29,000 $ 29,000
New Hampshire Health & Educ. Fac. Auth. Rev.
(St. Paul's School) VRDO 1.45% 5/7/2003 25,000 25,000
---------------
$ 54,000
---------------
NEW JERSEY (1.3%)
New Jersey TRAN 3.00% 6/12/2003 150,000 150,256
NEW MEXICO (0.8%)
Jicarilla New Mexico Apache Nation Rev. PUT 1.45% 8/13/2003 17,000 17,000
New Mexico Mortgage Finance Auth. Single Family
Mortgage Draw Down TOB VRDO 1.52% 5/7/2003 ++ 16,045 16,045
New Mexico Mortgage Finance Auth. Single Family
Mortgage TOB VRDO 1.47% 5/7/2003 ++ 3,745 3,745
New Mexico Mortgage Finance Auth. Single Family
Mortgage TOB VRDO 1.52% 5/7/2003 ++ 5,600 5,600
Univ. of New Mexico Univ. Rev. VRDO 1.35% 5/7/2003 20,000 20,000
Univ. of New Mexico Univ. Rev. VRDO 1.35% 5/7/2003 12,000 12,000
Univ. of New Mexico Univ. Rev. VRDO 1.40% 5/7/2003 22,900 22,900
---------------
$ 97,290
---------------
NEW YORK (4.0%)
Long Island NY Power Auth. Electric
System Rev. VRDO 1.30% 5/1/2003 LOC 3,600 3,600
Long Island NY Power Auth. Electric
System Rev. VRDO 1.40% 5/1/2003 LOC 15,600 15,600
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) VRDO 1.35% 5/7/2003(4) 38,600 38,600
Metro. New York Transp. Auth. Rev. VRDO 1.35% 5/7/2003(4) 10,050 10,050
New York City NY GO VRDO 1.40% 5/1/2003(4) 9,500 9,500
New York City NY GO VRDO 1.35% 5/7/2003 LOC 10,000 10,000
New York City NY Muni. Water Finance Auth.
Water & Sewer System CP 1.12% 5/1/2003 22,400 22,400
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.30% 5/1/2003 13,100 13,100
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.40% 5/1/2003(3) 10,390 10,390
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.40% 5/1/2003(3) 4,500 4,500
New York City NY Transitional Finance
Auth. Rev. VRDO 1.30% 5/1/2003 6,200 6,200
New York City NY Transitional Finance
Auth. Rev. VRDO 1.40% 5/1/2003 16,100 16,100
New York City NY Transitional Finance
Auth. Rev. VRDO 1.40% 5/1/2003 7,700 7,700
New York City NY Transitional Finance
Auth. Rev. VRDO 1.27% 5/7/2003 23,515 23,515
New York City NY Transitional Finance
Auth. Rev. VRDO 1.27% 5/7/2003 30,000 30,000
New York City NY Transitional Finance
Auth. Rev. VRDO 1.27% 5/7/2003 8,400 8,400
New York City NY Transitional Finance
Auth. Rev. VRDO 1.35% 5/7/2003 16,530 16,530
New York City NY Transitional Finance
Auth. Rev. VRDO 1.35% 5/7/2003 38,350 38,350
New York City NY Transitional Finance
Auth. Rev. VRDO 1.35% 5/7/2003 18,270 18,270
New York City NY Transitional Finance
Auth. Rev. VRDO 1.35% 5/7/2003 21,300 21,300
New York City NY Transitional Finance
Auth. Rev. VRDO 1.35% 5/7/2003 10,000 10,000
New York State Local Govt. Assistance
Corp. VRDO 1.25% 5/7/2003(3) 70,000 70,000
New York State Local Govt. Assistance
Corp. VRDO 1.35% 5/7/2003 LOC 23,415 23,415
Triborough Bridge & Tunnel Auth. New
York Rev. VRDO 1.32% 5/7/2003 30,000 30,000
---------------
$ 457,520
---------------
11
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA (2.5%)
Charlotte NC Water & Sewer System Rev. VRDO 1.32% 5/7/2003 84,390 84,390
Charlotte NC Water & Sewer System Rev. VRDO 1.35% 5/7/2003 41,000 41,000
Mecklenburg County NC GO VRDO 1.35% 5/7/2003 7,000 7,000
Mecklenburg County NC GO VRDO 1.35% 5/7/2003 8,200 8,200
Mecklenburg County NC GO VRDO 1.35% 5/7/2003 8,200 8,200
Mecklenburg County NC GO VRDO 1.35% 5/7/2003 9,000 9,000
Mecklenburg County NC GO VRDO 1.35% 5/7/2003 7,000 7,000
Mecklenburg County NC GO VRDO 1.35% 5/7/2003 7,000 7,000
Mecklenburg County NC GO VRDO 1.35% 5/7/2003 8,200 8,200
Mecklenburg County NC GO VRDO 1.35% 5/7/2003 10,000 10,000
Mecklenburg County NC GO VRDO 1.35% 5/7/2003 5,000 5,000
North Carolina Capital Fac. Finance Agency
(YMCA of Greater Winston-Salem) VRDO 1.35% 5/7/2003 LOC 15,650 15,650
North Carolina GO TOB VRDO 1.42% 5/7/2003 ++ 4,080 4,080
North Carolina Medical Care Comm. Hosp.
(Moses H. Cone Memorial Hosp.) VRDO 1.35% 5/7/2003 47,700 47,700
Winston-Salem NC Water & Sewer System Rev. VRDO 1.35% 5/7/2003 5,000 5,000
Winston-Salem NC Water & Sewer System Rev. VRDO 1.35% 5/7/2003 20,000 20,000
- -
----------------
$ 287,420
----------------
OHIO (2.9%)
Cleveland OH Airport System Rev. VRDO 1.35% 5/7/2003(4) 37,200 37,200
Cleveland OH Water Works Rev. 6.00% 1/1/2004(1) 6,855 7,072
Columbus OH City School Dist. School Fac.
Construction & Improvement GO 2.00% 6/19/2003 122,000 122,147
Franklin County OH Hosp. Rev. (U.S. Health Corp.)
VRDO 1.35% 5/7/2003 LOC 16,810 16,810
Hamilton County OH Hosp. Fac. Rev.
(Health Alliance of Greater Cincinnati) VRDO 1.25% 5/7/2003(1) 1,400 1,400
Hamilton OH Electric Sytem Rev. VRDO 1.36% 5/7/2003(4) 28,000 28,000
Montgomery Country OH Rev.
(Catholic Health Initiatives) VRDO 1.40% 5/7/2003 19,950 19,950
Ohio Air Quality Dev. Auth.
(Cincinnati Gas & Electric Co.) VRDO 1.40% 5/1/2003 LOC 7,615 7,615
Ohio GO VRDO 1.30% 5/7/2003 20,000 20,000
Ohio GO VRDO 1.35% 5/7/2003 1,500 1,500
Ohio Higher Educ. Fac. Comm. Rev.
(Case Western Reserve Univ.) VRDO 1.40% 5/1/2003 15,200 15,200
Ohio Housing Finance Agency Mortgage Rev. VRDO 1.40% 5/7/2003 9,960 9,960
Ohio Housing Finance Agency Mortgage Rev. VRDO 1.40% 5/7/2003 4,000 4,000
Ohio Solid Waste Rev. (BP Exploration &
Oil Inc.) VRDO 1.40% 5/1/2003 12,200 12,200
Ohio Solid Waste Rev. (BP Exploration &
Oil Inc.) VRDO 1.40% 5/1/2003 7,400 7,400
Ohio Solid Waste Rev. (BP Exploration &
Oil Inc.) VRDO 1.40% 5/1/2003 2,700 2,700
Ohio Solid Waste Rev. (BP Exploration &
Oil Inc.) VRDO 1.40% 5/1/2003 5,800 5,800
Ohio Solid Waste Rev. (BP Exploration &
Oil Inc.) VRDO 1.40% 5/1/2003 6,200 6,200
Ohio State Univ. General Receipts Rev. VRDO 1.36% 5/7/2003 5,200 5,200
Ohio Water Dev. Auth. Rev. (Timken Co.) VRDO 1.30% 5/7/20LOC 7,700 7,700
----------------
$ 338,054
----------------
OREGON (1.4%)
Oregon GO VRDO 1.25% 5/7/2003 16,150 16,150
Oregon GO VRDO 1.25% 5/7/2003 44,350 44,350
Oregon GO VRDO 1.35% 5/7/2003 3,000 3,000
12
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FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Oregon Health, Housing, Educ. & Cultural
Fac. Auth.(Peacehealth) VRDO 1.35% 5/7/2003 LOC 12,285 12,285
Oregon Housing & Community Service Dept.
Single Family Mortgage Rev. 1.30% 12/23/2003 9,000 9,000
Oregon TAN 3.25% 5/1/2003 44,000 44,000
Portland OR Econ. Dev. (Broadway Project) VRDO 1.40% 5/7/2003(2) 5,000 5,000
Tri-County Metro. Transp. Dist. OR
(Interstate Max Project) VRDO 1.30% 5/7/2003 LOC 25,000 25,000
---------------
$ 158,785
---------------
PENNSYLVANIA (5.0%)
Berks County PA IDA (Lutheran Health Care) VRDO 1.35% 5/7/2003(2) 9,400 9,400
Geisinger Health System Auth. of Pennsylvania Rev.
(Penn State Geisinger Health System) VRDO 1.28% 5/1/2003 4,000 4,000
Pennsylvania Higher Educ. Assistance Agency
Student Loan PUT 1.40% 5/7/2003(2) 13,500 13,500
Pennsylvania Higher Educ. Assistance Agency
Student Loan PUT 2.35% 7/1/2003(4) 30,000 30,038
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 1.40% 5/7/2003(2) 38,900 38,900
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 1.40% 5/7/2003(2) 5,500 5,500
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 1.40% 5/7/2003(2) 27,900 27,900
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 1.40% 5/7/2003(2) 46,100 46,100
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 1.40% 5/7/2003(2) 20,000 20,000
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 1.40% 5/7/2003(2) 51,100 51,100
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 1.40% 5/7/2003(2) 52,900 52,900
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Carnegie Mellon Univ.) VRDO 1.35% 5/1/2003 7,300 7,300
Pennsylvania Higher Educ. Fac. Auth. Rev. (Univ. of
Pennsylvania Health System Obligated Group)
VRDO 1.35% 5/7/2003 LOC 14,800 14,800
Pennsylvania Higher Educ. Fac. Auth. Rev. (Univ. of
Pennsylvania Health System Obligated Group)
VRDO 1.35% 5/7/2003 LOC 15,000 15,000
Pennsylvania State Univ. Rev. VRDO 1.33% 5/7/2003 25,000 25,000
Pennsylvania Turnpike Comm. Rev. VRDO 1.35% 5/1/2003 400 400
Pennsylvania Turnpike Comm. Rev. VRDO 1.30% 5/7/2003 35,000 35,000
Pennsylvania Turnpike Comm. Rev. VRDO 1.35% 5/7/2003 24,500 24,500
Pennsylvania Turnpike Comm. Rev. VRDO 1.35% 5/7/2003 9,290 9,290
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Hosp. of Philadelphia) VRDO 1.35% 5/1/2003 2,500 2,500
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Hosp. of 1.35% 5/1/2003 (1) 28,000 28,000
Philadelphia) VRDO
Philadelphia PA Water & Waste Water Rev. VRDO 1.30% 5/7/2003(4) 50,000 50,000
Sayre PA Health Care Fac. Auth. Rev.
(VHA of Pennsylvania, Pooled Capital Asset 5/7/2003(2) 2,000 2,000
Financial Program) VRDO 1.40%
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003(2) 8,700 8,700
13
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FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003(2) 6,800 6,800
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003(2) 2,700 2,700
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003(2) 6,200 6,200
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003(2) 400 400
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003(2) 2,100 2,100
Southcentral Pennsylvania General Auth. Rev. VRDO 1.44% 5/7/2003(2) 5,400 5,400
Univ. of Pittsburgh of the Commonwealth System of
Higher Educ. Pennsylvania (Univ. Capital
Project) VRDO 1.35% 5/7/2003 5,000 5,000
Univ. of Pittsburgh of the Commonwealth System of
Higher Educ. Pennsylvania (Univ. Capital
Project) VRDO 1.35% 5/7/2003 5,000 5,000
Univ. of Pittsburgh of the Commonwealth System of
Higher Educ. Pennsylvania (Univ. Capital
Project) VRDO 1.35% 5/7/2003 5,000 5,000
Univ. of Pittsburgh of the Commonwealth System of
Higher Educ. Pennsylvania (Univ. Capital Project)
VRDO 1.35% 5/7/2003 5,000 5,000
Univ. of Pittsburgh of the Commonwealth System of
Higher Educ. Pennsylvania (Univ. Capital
Project) VRDO 1.35% 5/7/2003 5,000 5,000
Univ. of Pittsburgh of the Commonwealth System of
Higher Educ. Pennsylvania (Univ. Capital
Project) VRDO 1.35% 5/7/2003 4,000 4,000
Washington County PA Higher Educ.
(Pooled Equipment LeaseProgram) VRDO 1.40% 5/7/2003 LOC 6,150 6,150
---------------
$ 580,578
---------------
RHODE ISLAND (0.1%)
Rhode Island Health & Educ. Building Corp. Rev.
(Brown Univ.) VRDO 1.35% 5/7/2003 10,270 10,270
Rhode Island Housing & Mortgage Finance Corp.
Rev. TOB VRDO 1.47% 5/7/2003(4) ++ 5,995 5,995
---------------
$ 16,265
---------------
SOUTH CAROLINA (0.2%)
Berkeley County SC Exempt Fac. Ind.
(Amoco Chemical Co.) VRDO 1.40% 5/1/2003 21,400 21,400
SOUTH DAKOTA (0.2%)
South Dakota Health & Educ. Fac. Auth. Rev.
(Sioux Valley Hosp. & Health System) VRDO 1.45% 5/7/2003 LOC 17,090 17,090
South Dakota Housing Dev. Auth. Homeownership
Mortgage Rev. TOB VRDO 1.47% 5/7/2003 ++ 2,530 2,530
South Dakota Housing Dev. Auth. TOB VRDO 1.42% 5/7/2003 ++ 7,795 7,795
---------------
$ 27,415
---------------
TENNESSEE (2.2%)
Blount County TN Public Building Auth.
(Local Govt. Public Improvement Bonds) VRDO 1.33% 5/1/2003 6,200 6,200
Chattanooga TN Health, Educ., & Housing Fac. Board Rev.
(Student Housing CDFI PHASE I) VRDO 1.35% 5/7/2003 LOC 60,140 60,140
Knox County TN Public Improvement TOB VRDO 1.42% 5/7/2003 ++ 8,485 8,485
Knox County TN Public Improvement TOB VRDO 1.42% 5/7/2003 ++ 29,625 29,625
Metro. Govt. of Nashville & Davidson County TN
Health & Educ. Fac. (Vanderbilt Univ.) VRDO 1.32% 5/1/2003 5,300 5,300
14
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------------
Metro. Govt. of Nashville & Davidson County TN
Health & Educ. Fac. (Vanderbilt Univ.) VRDO 1.32% 5/1/2003 27,700 27,700
Metro. Govt. of Nashville & Davidson County TN
Ind. Dev. Board (Country Music
Hall of Fame) VRDO 1.39% 5/7/2003 LOC 14,100 14,100
Metro. Govt. of Nashville TN Airport Auth.
Improvement Refunding VRDO 1.35% 5/7/2003(3) LOC 36,600 36,600
Putnam County TN School Rev. TOB VRDO 1.42% 5/7/2003(2) ++ 8,590 8,590
Shelby County TN GO TOB VRDO 1.42% 5/7/2003 ++ 5,000 5,000
Shelby County TN GO VRDO 1.35% 5/7/2003 16,900 16,900
Sumner County TN Capital Outlay VRDO 1.35% 5/7/2003 LOC 20,000 20,000
Sumner County TN Capital Outlay VRDO 1.35% 5/7/2003 LOC 13,000 13,000
---------------
$ 251,640
---------------
TEXAS (12.3%)
Austin TX Combined Util. System Rev. 5.75% 11/15/2003(4) 6,850 7,016
Austin TX Electric Util. System Rev. TOB VRDO 1.44% 5/7/2003(1) ++ 4,830 4,830
Austin TX Public Improvement GO TOB VRDO 1.42% 5/7/2003 ++ 8,880 8,880
Austin TX Public Improvement GO TOB VRDO 1.42% 5/7/2003 (Prere.)++ 6,195 6,195
Board of Regents of the Univ. of Texas System
Permanent Univ. Fund VRDO 1.10% 5/12/2003 21,800 21,800
Board of Regents of the Univ. of Texas System
Rev. Financing System TOB VRDO 1.43% 5/7/2003 ++ 10,215 10,215
Board of Regents of the Univ. of Texas
System Rev. Financing System VRDO 1.35% 5/7/2003 16,065 16,065
Cypress-Fairbanks TX Independent School
Dist. TOB VRDO 1.44% 5/7/2003 ++ 11,880 11,880
Cypress-Fairbanks TX Independent School Dist.
Unlimited Tax Schoolhouse TOB VRDO 1.42% 5/7/2003 ++ 7,915 7,915
Dallas TX Area Rapid Transit TOB VRDO 1.44% 5/7/2003(2) ++ 6,000 6,000
Dallas TX GO TOB VRDO 1.42% 5/7/2003 ++ 15,520 15,520
Dallas TX Rapid Transit Tax TOB VRDO 1.43% 5/7/2003(2) ++ 9,920 9,920
Dallas TX Waterworks & Sewer System Rev. 3.00% 10/1/2003 15,000 15,104
Dallas TX Waterworks & Sewer System Rev. TOB VRDO 1.44% 5/7/2003 ++ 19,085 19,085
Dallas-Fort Worth TX International Airport Fac.
Improvement Corp. Rev.(Learjet Inc.) VRDO 1.45% 5/7/2003 LOC 16,110 16,110
Greater East Texas Higher Educ. Auth.
Student Loan Rev. VRDO 1.38% 5/7/2003 LOC ++ 10,000 10,000
Greater East Texas Higher Educ. Auth.
Student Loan Rev. VRDO 1.45% 5/7/2003 LOC ++ 11,000 11,000
Gulf Coast TX IDA Marine Terminal
(Amoco Oil Co.) VRDO 1.40% 5/1/2003 12,200 12,200
Gulf Coast TX Waste Disposal Auth. PCR
(Amoco Oil Co.) VRDO 1.40% 5/1/2003 4,000 4,000
Gulf Coast TX Waste Disposal Auth. PCR
(Amoco Oil Co.) VRDO 1.40% 5/1/2003 29,750 29,750
Gulf Coast TX Waste Disposal Auth. PCR
(Amoco Oil Co.) VRDO 1.40% 5/1/2003 29,660 29,660
Gulf Coast TX Waste Disposal Auth. PCR
(Amoco Oil Co.) VRDO 1.40% 5/1/2003 39,900 39,900
Gulf Coast TX Waste Disposal Auth. PCR
(Amoco Oil Co.) VRDO 1.40% 5/1/2003 18,500 18,500
Gulf Coast TX Waste Disposal Auth. PCR
(BP Products North America Project) VRDO 1.40% 5/1/2003 4,000 4,000
Harris County TX GO TOB VRDO 1.44% 5/7/2003(4) ++ 7,255 7,255
Harris County TX GO VRDO 1.35% 5/7/2003 6,600 6,600
15
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Harris County TX Health Fac. Dev. Corp.
Rev.(Methodist Hosp.) VRDO 1.35% 5/1/2003 85,300 85,300
Harris County TX Health Fac. Dev. Corp.
Rev.(St. Luke's Episcopal Hosp.) TOB VRDO 1.43% 5/7/2003 ++ 4,245 4,245
Harris County TX Health Fac. Dev. Corp. Rev.
(St. Luke's Episcopal Hosp.) TOB VRDO 1.46% 5/7/2003 ++ 5,500 5,500
Harris County TX Health Fac. Dev. Corp. Rev.
(St. Luke's Episcopal Hosp.) VRDO 1.35% 5/1/2003 137,100 137,100
Harris County TX Health Fac. Dev. Corp. Rev.
(Young Men's Christian Assoc. of
Greater Houston) VRDO 1.35% 5/1/2003 LOC 22,250 22,250
Harris County TX IDA (Shell Oil Co.) VRDO 1.40% 5/1/2003 12,000 12,000
Harris County TX Permanent Improvement &
Refunding TOB VRDO 1.42% 5/7/2003 ++ 6,095 6,095
Harris County TX Toll Road Rev. VRDO 1.35% 5/7/2003 13,005 13,005
Houston TX GO CP 1.20% 6/10/2003 5,000 5,000
Houston TX Independent School Dist. GO TOB VRDO 1.44% 5/7/2003(4) ++ 19,205 19,205
Houston TX TRAN 3.00% 6/30/2003 65,000 65,149
Houston TX Water & Sewer System Rev. TOB VRDO 1.43% 5/7/2003(1) ++ 9,995 9,995
Houston TX Water & Sewer System Rev. TOB VRDO 1.44% 5/7/2003(4) ++ 25,000 25,000
Judson TX Independent School Dist. TOB VRDO 1.44% 5/7/2003 ++ 6,320 6,320
Laredo TX Independent School Dist. Unlimited Tax
School Building & Refunding TOB VRDO 1.43% 5/7/2003 ++ 18,905 18,905
North Texas Higher Educ. Auth. Student Loan VRDO 1.40% 5/7/2003 LOC 22,840 22,840
North Texas Higher Educ. Auth. Student Loan VRDO 1.40% 5/7/2003 LOC 18,000 18,000
North Texas Higher Educ. Auth. Student Loan VRDO 1.40% 5/7/2003 LOC 18,080 18,080
North Texas Higher Educ. Auth. Student Loan VRDO 1.40% 5/7/2003 LOC 18,000 18,000
Plano TX Independent School Dist. Unlimited Tax
School Building Bonds (Collin County TX)
TOB VRDO 1.37% 5/7/2003 ++ 7,615 7,615
Red River TX Auth. PCR (Southwestern Public
Service) VRDO 1.35% 5/7/2003(2) 20,000 20,000
San Antonio TX Independent School Dist.
GO TOB VRDO 1.44% 5/7/2003 ++ 17,710 17,710
Southwest Texas Higher Educ. Auth. Inc.
(Southern Methodist Univ.) VRDO 1.35% 5/7/2003 LOC 7,800 7,800
Southwest Texas Higher Educ. Auth. Inc.
(Southern Methodist Univ.) VRDO 1.35% 5/7/2003 LOC 22,000 22,000
Spring Branch TX Independent School Dist.
GO TOB VRDO 1.42% 5/7/2003 ++ 6,295 6,295
Texas A & M Univ. System Rev. Financing Bonds
TOB VRDO 1.42% 5/7/2003 (Prere.) ++ 5,635 5,635
Texas GO Veterans Housing Assistance Program
Fund II VRDO 1.40% 5/7/2003 5,000 5,000
Texas State Univ. System TOB VRDO 1.44% 5/7/2003(4) ++ 12,180 12,180
Texas TOB VRDO 1.35% 5/7/2003 ++ 25,000 25,000
Texas TRAN 2.75% 8/29/2003 275,000 276,196
Texas Turnpike Auth. Central Texas Turnpike System
Rev. TOB VRDO 1.44% 5/7/2003(2) ++ 12,000 12,000
Texas Turnpike Auth. Central Texas Turnpike System
Rev. TOB VRDO 1.44% 5/7/2003(2) ++ 5,995 5,995
Texas Water Dev. Board Rev. TOB VRDO 1.42% 5/7/2003 ++ 5,000 5,000
Texas Water Dev. Board Rev. TOB VRDO 1.42% 5/7/2003 ++ 7,700 7,700
Texas Water Dev. Board Rev. TOB VRDO 1.42% 5/7/2003 ++ 7,395 7,395
Texas Water Dev. Board Rev. VRDO 1.40% 5/1/2003 24,400 24,400
Waco TX Educ. Finance Corp. (Baylor Univ.) VRDO 1.35% 5/7/2003(10) 99,500 99,500
---------------
$ 1,428,810
---------------
16
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH (1.3%)
Central Utah Water Conservancy Dist. VRDO 1.35% 5/7/2003(2) $ 6,445 $ 6,445
Central Utah Water Conservancy Dist. VRDO 1.35% 5/7/2003(2) 18,600 18,600
Intermountain Power Agency Utah TOB VRDO 1.44% 5/7/2003(1) YY 23,000 23,000
Intermountain Power Agency Utah TOB VRDO 1.44% 5/7/2003(1) YY 14,600 14,600
Utah GO TOB VRDO 1.42% 5/7/2003 YY 14,000 14,000
Utah GO TOB VRDO 1.44% 5/7/2003 YY 3,000 3,000
Utah Housing Corp. Single Family Mortgage
Rev. VRDO 1.40% 5/7/2003 1,735 1,735
Utah Housing Corp. Single Family Mortgage
Rev. VRDO 1.40% 5/7/2003 16,500 16,500
Utah Housing Corp. Single Family Mortgage
Rev. VRDO 1.40% 5/7/2003 20,060 20,060
Utah Housing Corp. Single Family Mortgage
Rev. VRDO 1.40% 5/7/2003 14,800 14,800
Utah Housing Finance Auth.
(Single Family Mortgage) TOB VRDO 1.42% 5/7/2003 ++ 5,180 5,180
Utah Housing Finance Auth. (Single Family
Mortgage) VRDO 1.40% 5/7/2003 9,000 9,000
Weber County UT Hosp. Rev. (IHC Health
Services) VRDO 1.35% 5/7/2003 7,500 7,500
---------------
$ 154,420
---------------
VIRGINIA (1.1%)
Montgomery County VA IDA (Virginia Tech
Foundation) VRDO 1.39% 5/7/2003 LOC 21,430 21,430
Richmond VA GO TOB VRDO 1.42% 5/7/2003(4) 13,490 13,490
Roanoke VA IDA Hosp. Rev.
(Carilion Health System) VRDO 1.30% 5/1/2003 20,535 20,535
Roanoke VA IDA Hosp. Rev.
(Carilion Health System) VRDO 1.35% 5/1/2003 22,500 22,500
Roanoke VA IDA Hosp. Rev.
(Carilion Health System) VRDO 1.40% 5/1/2003 22,000 22,000
Univ. of Virginia TOB VRDO 1.46% 5/7/2003 4,765 4,765
Virginia College Building Auth. Educ. Fac. Rev.
(Public Higher Educ. Financing Program) VRDO 1.42% 5/7/2003 11,895 11,895
Virginia Public School Auth. Rev. TOB VRDO 1.46% 5/7/2003(4) 10,065 10,065
---------------
$ 126,680
---------------
WASHINGTON (1.9%)
Everett WA Ind. Dev. Corp. (Kimberly-Clark Corp.)
VRDO 1.45% 5/7/2003 6,400 6,400
Grant County WA Public Util. Dist. No.002
TOB VRDO 1.42% 5/7/2003(4) 15,365 15,365
King County WA GO TOB VRDO 1.44% 5/7/2003(4) 5,355 5,355
Port Bellingham WA Ind. Dev. Corp. Environmental Fac.
(BP Amoco West Coast LLC) VRDO 1.40% 5/1/2003 3,300 3,300
Port of Seattle WA Rev. TOB VRDO 1.47% 5/7/2003(3) 4,430 4,430
Port of Seattle WA Rev. TOB VRDO 1.47% 5/7/2003 2,315 2,315
Port of Seattle WA Rev. TOB VRDO 1.47% 5/7/2003(1) 5,255 5,255
Seattle WA Muni. Light & Power Rev. RAN 2.50% 11/21/2003 17,000 17,094
Seattle WA Water System Rev. VRDO 1.25% 5/7/2003 LOC 23,000 23,000
Seattle WA Water System Rev. VRDO 1.35% 5/7/2003 LOC 12,000 12,000
Snohomish County WA Public Util. Dist. TOB VRDO 1.44% 5/7/2003(4) 5,460 5,460
Snohomish County WA TOB VRDO 1.44% 5/7/2003(1) 4,950 4,950
Snohomish County WA TOB VRDO 1.46% 5/7/2003(1) 4,500 4,500
Tacoma WA Sewer TOB VRDO 1.43% 5/7/2003(3) 10,625 10,625
Washington GO TOB VRDO 1.42% 5/7/2003(1) 15,870 15,870
Washington GO TOB VRDO 1.42% 5/7/2003(1) 10,595 10,595
Washington GO TOB VRDO 1.42% 5/7/2003(1) 4,430 4,430
Washington GO TOB VRDO 1.45% 5/7/2003(3) 4,780 4,780
Washington Health Care Fac. Auth
(Catholic Health Initiatives) VRDO 1.45% 5/7/2003 22,000 22,000
Washington Higher Educ. Fac. Auth.
(Seattle Pacific Univ.) VRDO 1.35% 5/7/2003 LOC 12,000 12,000
17
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Washington Housing Finance Comm.
Single Family Mortgage Rev. TOB VRDO 1.52% 5/7/2003 $ 10,850 $ 10,850
Washington Housing Finance Comm.
Single Family Program TOB VRDO 1.52% 5/7/2003 20,530 20,530
---------------
$ 221,104
---------------
WEST VIRGINIA (0.5%)
Putnam County WV Solid Waste Disposal Rev.
(Toyota Manufacturing Corp.) VRDO 1.38% 5/7/2003 16,700 16,700
Putnam County WV Solid Waste Disposal Rev.
(Toyota Manufacturing Corp.) VRDO 1.38% 5/7/2003 40,000 40,000
---------------
$ 56,700
---------------
WISCONSIN (2.2%)
Milwaukee WI TOB VRDO 1.42% 5/7/2003(4) 15,220 15,220
Univ. of Wisconsin Hosp. & Clinics Auth. Rev.
(Univ. of Wisconsin Hosp.) VRDO 1.35% 5/7/2003(1) 16,700 16,700
Wisconsin Clean Water Rev. TOB VRDO 1.42% 5/7/2003 12,580 12,580
Wisconsin GO 6.25% 5/1/2003 (Prere.) 9,375 9,375
Wisconsin GO TOB VRDO 1.42% 5/7/2003(4) 17,865 17,865
Wisconsin GO TOB VRDO 1.42% 5/7/2003(1) 26,200 26,200
Wisconsin GO TOB VRDO 1.42% 5/7/2003 (Prere.) 6,825 6,825
Wisconsin GO TOB VRDO 1.43% 5/7/2003(4) 20,855 20,855
Wisconsin GO TOB VRDO 1.43% 5/7/2003(1) 18,995 18,995
Wisconsin Housing & Econ. Dev. Auth.
Home Ownership Rev. VRDO 1.35% 5/7/2003 2,500 2,500
Wisconsin Housing & Econ. Dev. Auth.
Home Ownership Rev. VRDO 1.37% 5/7/2003 25,000 25,000
Wisconsin Housing & Econ. Dev. Auth.
Home Ownership Rev. VRDO 1.40% 5/7/2003 7,780 7,780
Wisconsin Housing & Econ. Dev. Auth.
Home Ownership Rev. VRDO 1.40% 5/7/2003 2,845 2,845
Wisconsin Housing & Econ. Dev. Auth.
Single Family Draw Down Rev. TOB VRDO 1.52% 5/7/2003 19,155 19,155
Wisconsin Housing & Econ. Dev. Auth.
Single Family Rev. TOB VRDO 1.52% 5/7/2003 34,695 34,695
Wisconsin Transp. Rev. TOB VRDO 1.43% 5/7/2003(2) 13,715 13,715
Wisconsin Transp. Rev. TOB VRDO 1.46% 5/7/2003 10,075 10,075
---------------
$ 260,380
---------------
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $11,442,609) $ 11,442,609
- ---------------------------------------------------------------------------------------------------------------------------------
18
- ----------------------------------------------------------------------------------------------------------------------------------
MARKET
VALUE*
(000)
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.2%)
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets-Note B 199,802
Liabilities (60,577)
----------------
$ 139,225
----------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
- ----------------------------------------------------------------------------------------------------------------------------------
Applicable to 11,582,058,068 outstanding $.001 par value
shares of beneficial interest (unlimited authorization) $ 11,581,834
==================================================================================================================================
NET ASSET VALUE PER SHARE $ 1.00
==================================================================================================================================
(Y)See Note A in Notes to Financial Statements.
Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from registration,
normally to qualified institutional buyers. At April 30, 2003, the aggregate
value of these securities was $2,005,621,000, representing 17.3% of net assets.
For key to abbreviations and other references, see page 108.
- --------------------------------------------------------------------------------
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
- --------------------------------------------------------------------------------
Paid-in Capital $11,582,091 $1.00
Undistributed Net Investment Income -- --
Accumulated Net Realized Losses (257) --
Unrealized Appreciation -- --
- --------------------------------------------------------------------------------
NET ASSETS $11,581,834 $1.00
================================================================================
19
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FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (99.7%)
- ----------------------------------------------------------------------------------------------------------------------------------
ALABAMA (0.4%)
Alabama GO 5.50% 10/1/2003 $ 14,640 $ 14,909
ALASKA (2.4%)
Alaska GO 5.00% 8/1/2005(4) 14,880 16,058
Alaska Housing Finance Corp.
(State Capital) 5.25% 6/1/2003(1) 7,295 7,320
Alaska Housing Finance Corp.
(State Capital) 5.25% 6/1/2005(1) 3,050 3,285
Alaska Housing Finance Corp.
(State Capital) 5.00% 12/1/2005(1) 8,240 8,952
Alaska Housing Finance Corp.
Governmental Purpose VRDO 1.34% 5/7/2003(1) 27,710 27,710
Alaska Student Loan Corp. Student Loan Rev. 3.75% 7/1/2004(2) 3,285 3,367
Alaska Student Loan Corp. Student Loan Rev. 3.95% 7/1/2005(2) 3,525 3,666
Valdez AK Marine Terminal Rev.
(Phillips Transp. Alaska, Inc. Project) PUT 2.00% 1/1/2004 6,000 6,021
Valdez AK Marine Terminal Rev.
(Phillips Transp. Alaska, Inc. Project) PUT 2.00% 1/1/2004 6,000 6,021
Valdez AK Marine Terminal Rev.
(Phillips Transp. Alaska, Inc. Project) PUT 2.00% 1/1/2004 13,000 13,046
---------------
$ 95,446
---------------
ARIZONA (3.2%)
Arizona COP 5.00% 9/1/2005(4) 6,050 6,539
Arizona School Fac. Board Rev.
(State School Improvement) 5.25% 7/1/2004 3,500 3,668
Arizona State Univ. Rev. 5.00% 7/1/2005(4) 3,930 4,232
Arizona Transp. Board Highway Rev. 5.00% 7/1/2004 2,775 2,900
Arizona Transp. Board Highway Rev. 5.00% 7/1/2005 3,025 3,258
Maricopa County AZ PCR
(Arizona Public Service) PUT 1.70% 3/4/2004 11,000 11,001
Maricopa County AZ Public Finance Corp.
Lease Rev. 5.00% 7/1/2003(2) 16,185 16,291
Maricopa County AZ Public Finance Corp.
Lease Rev. 5.00% 7/1/2005(2) 5,520 5,939
Phoenix AZ Civic Improvement Corp.
Wastewater System Rev. 5.75% 7/1/2006 (Prere.) 5,000 5,624
Phoenix AZ GO 5.10% 7/1/2004 3,335 3,489
Salt River Project Arizona Agricultural
Improvement & Power Dist. Rev. 5.00% 1/1/2004 40,000 41,045
Salt River Project Arizona Agricultural
Improvement & Power Dist. Rev. 5.25% 1/1/2006 20,000 21,894
---------------
$ 125,880
---------------
ARKANSAS (0.1%)
Clark County AR Solid Waste Disposal Rev.
(Alcoa Inc. Project) VRDO 1.86% 5/7/2003 3,750 3,750
CALIFORNIA (6.9%)
California Community College Financing
Auth. TRAN 3.00% 7/31/2003(4) 10,000 10,046
California RAN FR 1.32% 5/7/2003 50,000 49,925
California RAN FR 1.32% 5/7/2003 20,000 19,970
California State Dept. Water
Resources Power Supply Rev. 5.25% 5/1/2007(1) 18,000 20,153
California State Dept. Water
Resources Power Supply Rev. 5.50% 5/1/2007 9,000 10,007
California State Dept. Water
Resources Power
Supply Rev. VRDO 1.50% 5/7/2003 LOC 45,000 45,000
California Statewide Community Dev. Auth. Multifamily
Rev. Housing (Santee Court Apartments) PUT 1.70% 11/15/2004 26,650 26,654
California Statewide Community Dev. Auth. Rev.
(Kaiser Permanente) PUT 4.35% 2/28/2007 8,000 8,438
20
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FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Chula Vista CA IDR (San Diego Gas & Electric)
PUT 7.00% 12/1/2005 $ 20,000 $ 22,199
Long Beach CA Harbor Rev. PUT 4.00% 5/14/2004(1) 25,000 25,717
Natomas CA Unified School Dist. COP PUT 2.50% 2/1/2005(2) 10,000 10,123
Santa Clara County CA Financing Auth. Special Obligation
Bonds (Measure B Transp. Improvement Program)
Rev. 5.00% 8/1/2005 4,000 4,279
Santa Clara Valley CA Water Dist. Ref.
& Improvement COP 5.00% 2/1/2007(3) 4,165 4,614
Southern California Rapid Transit Dist. Rev. 5.70% 9/1/2004(2) 14,040 14,877
----------------
$ 272,002
----------------
COLORADO (2.1%)
Arapahoe County CO Capital Improvement Trust Fund
Highway Rev. 7.00% 8/31/2005 (Prere.) 10,000 11,563
Colorado Health Fac. Auth. Rev.
(Catholic Health Initiatives) VRDO 1.45% 5/7/2003 18,800 18,800
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Leavenworth) VRDO 1.40% 5/7/2003 4,900 4,900
Colorado Housing & Finance Auth. Single Family
Mortgage Bonds Class I VRDO 1.35% 5/7/2003 11,305 11,305
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2005(1) 17,200 16,523
Lowry Econ. Redev. Auth. Colorado Rev. VRDO 1.35% 5/7/2003 LOC 21,365 21,365
----------------
$ 84,456
----------------
CONNECTICUT (3.0%)
Connecticut GO 6.00% 10/1/2004 5,485 5,850
Connecticut GO 5.00% 11/15/2004 19,910 21,043
Connecticut GO 5.00% 11/15/2004 12,525 13,238
Connecticut GO 5.00% 12/15/2004 9,630 10,206
Connecticut GO 5.00% 4/15/2005 4,675 4,999
Connecticut GO 5.00% 4/15/2005 11,130 11,900
Connecticut GO 5.00% 12/15/2005 16,110 17,550
Connecticut GO VRDO 1.35% 5/7/2003 10,245 10,245
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 5.00% 10/1/2004 5,000 5,265
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 5.25% 10/1/2004 11,000 11,622
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 5.00% 10/1/2005(4) 5,300 5,748
----------------
$ 117,666
----------------
DELAWARE (0.5%)
Delaware GO 5.00% 7/1/2006 6,690 7,383
Univ. of Delaware Rev. VRDO 1.35% 5/1/2003 12,045 12,045
---------------
$ 19,428
---------------
FLORIDA (2.9%)
Broward County FL Resource Recovery Rev.
(Wheelabrator Series A) 5.00% 12/1/2005 12,975 13,839
Dade County FL School Dist. GO 6.00% 7/15/2005(1) 4,000 4,398
Dade County FL Water & Sewer System Rev. VRDO 1.35% 5/7/2003(3) 1,000 1,000
Florida Board of Educ. 5.00% 6/1/2004 4,505 4,694
Florida Board of Educ. 5.00% 6/1/2005 4,610 4,953
Florida Board of Educ. 5.00% 6/1/2005 2,150 2,310
Florida Board of Educ. 5.25% 6/1/2006 4,740 5,248
Florida Board of Educ. Capital Outlay 5.00% 6/1/2005 6,000 6,443
Florida Board of Educ. Capital Outlay 5.875% 6/1/2005 (Prere.) 5,000 5,507
Florida Board of Educ. Capital Outlay 5.00% 6/1/2006 6,765 7,435
21
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FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Florida Board of Educ. Public Educ. 5.00% 6/1/2004 $ 5,000 $ 5,210
Florida Board of Educ. Rev. (Lottery Rev.) 5.25% 7/1/2005(3) 3,640 3,940
Florida Dept. of General Services Division Fac.
Management Rev. (Florida Fac. Pool) 5.25% 9/1/2005(4) 5,925 6,420
Florida Turnpike Auth. Rev. 5.25% 7/1/2007(4) 5,000 5,617
Greater Orlando Aviation Auth. Orlando
FL Airport Fac. Rev. 3.00% 10/1/2003(1) 8,730 8,799
Jacksonville FL Electric Auth. Rev.
(Electric System) VRDO 1.35% 5/1/2003 7,400 7,400
Jacksonville FL Electric Auth. Rev.
(Electric System) VRDO 1.35% 5/1/2003 3,150 3,150
Orange County FL Sales Tax Rev. 5.00% 1/1/2006(3) 4,220 4,589
Palm Beach County FL School Dist. GO 5.00% 8/1/2003(1) 5,825 5,882
Sunshine State Florida Govt. Financing
Comm. Rev. VRDO 1.34% 5/7/2003(2) 8,500 8,500
----------------
$ 115,334
----------------
GEORGIA (3.8%)
Athens-Clarke County GA Unified Govt. Dev. Auth. Rev.
(Univ. Georgia Athletic Assn.) VRDO 1.35% 5/1/2003 LOC 17,000 17,000
Atlanta GA Water & Wastewater Rev. VRDO 1.40% 5/7/2003(4) 34,500 34,500
Burke County GA Dev. Auth. PCR
(Oglethorpe Power Corp.) VRDO 1.35% 5/1/2003(2) 16,805 16,805
Cobb County GA School Dist. 6.25% 2/1/2004 5,000 5,191
Georgia GO 5.75% 8/1/2003 5,000 5,059
Georgia GO 6.25% 4/1/2004 5,000 5,235
Georgia GO 5.75% 7/1/2004 5,645 5,948
Georgia GO 5.75% 9/1/2005 8,000 8,800
Georgia GO 6.25% 4/1/2006 2,700 3,051
Gwinnett County GA School Dist. GO 6.40% 2/1/2006 3,500 3,944
Metro. Atlanta GA Rapid Transp. Auth.
Georgia Sales Tax Rev. 6.25% 7/1/2006(1) 10,000 11,388
Monroe County GA Dev. Auth. PCR
(Oglethorpe Power Corp.) VRDO 1.35% 5/1/2003(2) 10,400 10,400
Private Colleges & Univ. Auth. of Georgia Rev.
(Emory Univ.) VRDO 1.35% 5/7/2003 13,200 13,200
Richmond County GA Board of Educ. GO 5.00% 11/1/2004 11,000 11,611
----------------
$ 152,132
----------------
HAWAII (1.0%)
Hawaii Airport System Rev. 5.50% 7/1/2005(3) 7,390 7,954
Hawaii GO 5.00% 2/1/2004 10,000 10,132
Hawaii GO 6.25% 3/1/2005(3) 5,000 5,436
Hawaii GO 5.00% 8/1/2005(3) 3,715 4,006
Hawaii GO 5.00% 4/1/2007(1) 7,330 8,111
Honolulu HI City & County GO 5.25% 11/1/2003(3) (ETM) 2,550 2,603
Honolulu HI City & County GO 5.25% 11/1/2003(3) 5 5
---------------
$ 38,247
---------------
ILLINOIS (5.5%)
Chicago IL Metro. Water Reclamation Dist.
GO VRDO 1.30% 5/7/2003 26,500 26,500
Chicago IL O'Hare International Airport Rev. 5.25% 1/1/2004(2) 1,925 1,977
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2004(2) 2,305 2,369
Chicago IL O'Hare International Airport Rev. 5.25% 1/1/2005(2) 1,085 1,153
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2005(2) 4,180 4,435
Chicago IL O'Hare International Airport Rev. 5.25% 1/1/2006(2) 2,015 2,200
Chicago IL Water Rev. VRDO 1.35% 5/7/2003 LOC 28,500 28,500
Illinois Dev. Finance Auth. Hosp. Rev.
(Evanston Northwestern Healthcare Corp.) VRDO 1.35% 5/7/2003 7,500 7,500
Illinois Educ. Fac. Auth. Rev. (Univ. of Chicago) 5.70% 12/1/2003 (Prere.) 13,875 14,524
22
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FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Illinois GO 5.50% 12/1/2003 $ 4,255 $ 4,364
Illinois GO 5.00% 4/1/2004 10,000 10,353
Illinois GO 5.25% 4/1/2004 5,485 5,691
Illinois GO 5.00% 8/1/2004 5,000 5,235
Illinois GO 5.00% 8/1/2005 1,000 1,078
Illinois GO 5.25% 8/1/2005 8,175 8,858
Illinois GO 5.00% 11/1/2005 6,200 6,729
Illinois GO 5.50% 4/1/2006(4) 3,000 3,322
Illinois GO 5.00% 8/1/2006 8,160 8,991
Illinois Health Fac. Auth. Rev.
(Northwestern Memorial Hosp.) VRDO 1.35% 5/1/2003 6,000 6,000
Illinois Health Fac. Auth. Rev.
(Northwestern Memorial Hosp.) VRDO 1.36% 5/1/2003 15,900 15,900
Illinois Health Fac. Auth. Rev.
(Univ. of Chicago Hosp. & Health Systems) VRDO 1.35% 5/1/2003(1) 11,400 11,400
Illinois Regional Transp. Auth. Rev. 6.25% 6/1/2004(2)(Prere.) 11,720 12,599
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 6.50% 6/15/2003 (Prere.) 10,020 10,288
Univ. of Illinois Board of Trustees
(Un-integrate Project) COP 5.25% 10/1/2004(2) 8,840 9,326
Univ. of Illinois Board of Trustees
(Un-integrate Project) COP 5.25% 10/1/2005(2) 7,925 8,617
----------------
$ 217,909
----------------
INDIANA (0.3%)
Indiana Office Building Comm. Fac. Rev.
(Miami Correctional Fac.) VRDO 1.35% 5/7/2003 13,600 13,600
KANSAS (1.4%)
Kansas Dept. of Transp. Highway Rev. 3.00% 9/1/2004 4,500 4,607
Kansas Dept. of Transp. Highway Rev. VRDO 1.32% 5/7/2003 1,800 1,800
Kansas Dept. of Transp. Highway Rev. VRDO 1.35% 5/7/2003 10,000 10,000
Kansas Dept. of Transp. Highway Rev. VRDO 1.35% 5/7/2003 18,900 18,900
Kansas Dept. of Transp. Highway Rev. VRDO 1.35% 5/7/2003 15,600 15,600
Kansas Turnpike Rev. 5.375% 9/1/2005(2) 5,855 6,380
----------------
$ 57,287
----------------
KENTUCKY (0.7%)
Kentucky Econ. Dev. Finance Auth. Hosp. Fac. Rev.
(Baptist Healthcare) VRDO 1.35% 5/7/2003(1) 29,700 29,700
LOUISIANA (0.4%)
Lafayette LA Public Improvement Sales Tax Rev. 3.00% 3/1/2004(2) 3,465 3,519
Lafayette LA Public Improvement Sales Tax Rev. 4.75% 3/1/2005(2) 5,640 5,982
Louisiana GO 6.25% 4/15/2005(3) 6,455 7,054
----------------
$ 16,555
----------------
MARYLAND (0.7%)
Anne Arundel County MD GO 5.00% 3/1/2007 6,000 6,651
Maryland GO 5.25% 3/1/2007 10,000 11,201
Washington Suburban Sanitation Dist. Maryland
General Construction GO 5.25% 6/1/2007 7,330 8,250
----------------
$ 26,102
----------------
MASSACHUSETTS (3.7%)
Massachusetts Dev. Finance Agency Resource
Recovery Rev. (SEMASS System) 5.00% 1/1/2004(1) 4,000 4,093
Massachusetts Dev. Finance Agency Resource
Recovery Rev. (SEMASS System) 5.00% 1/1/2005(1) 8,635 9,062
23
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Dev. Finance Agency Rev.
(Boston Univ.) VRDO 1.45% 5/7/2003(10) $ 3,500 $ 3,500
Massachusetts GO 4.00% 9/1/2003 40,000 40,384
Massachusetts GO 7.00% 11/1/2004(3)(Prere.) 6,800 7,453
Massachusetts GO 5.75% 2/1/2005 3,000 3,218
Massachusetts GO 5.00% 2/1/2006 20,000 21,707
Massachusetts GO 5.50% 2/1/2007(1) 7,150 8,013
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.50% 7/1/2005 2,585 2,660
Massachusetts Health & Educ. Fac. Auth. Rev.
(Williams College) PUT 1.85% 4/1/2006 10,000 10,016
Massachusetts Muni. Wholesale Electric Co.
Power System Rev. 5.25% 7/1/2004(1) 12,450 13,026
Massachusetts Muni. Wholesale Electric Co.
Power System Rev. 5.25% 7/1/2005(1) 23,615 25,477
---------------
$ 148,609
---------------
MICHIGAN (3.8%)
Detroit MI Sewage Disposal System VRDO 1.35% 5/7/2003(3) 6,400 6,400
Detroit MI Water Supply System VRDO 1.35% 5/7/2003(3) 32,000 32,000
Detroit MI Water Supply System VRDO 1.35% 5/7/2003(1) 20,000 20,000
Michigan (New Center Dev. Inc.) COP 5.375% 9/1/2004 2,190 2,309
Michigan Building Auth. Rev. 5.00% 10/15/2005 5,000 5,424
Michigan Building Auth. Rev. VRDO 1.35% 5/7/2003 4,210 4,210
Michigan GAN VRDO 1.35% 5/7/2003(4) 27,300 27,300
Michigan Housing Dev. Auth. Rev. VRDO 1.35% 5/7/2003(1) 16,700 16,700
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.00% 10/1/2005 8,135 8,819
Michigan Public Power Agency Rev. (Belle River) 5.00% 1/1/2006(1) 1,500 1,630
Univ. of Michigan Hosp. Rev.
(Medical Service Plan) VRDO 1.40% 5/1/2003 10,480 10,480
Univ. of Michigan Hosp. Rev. VRDO 1.40% 5/1/2003 3,800 3,800
Univ. of Michigan Hosp. Rev. VRDO 1.40% 5/1/2003 10,100 10,100
---------------
$ 149,172
---------------
MINNESOTA (1.4%)
Minnesota Housing Finance Agency Residential
Housing Finance PUT 3.00% 4/29/2004 11,035 11,201
Minnesota Housing Finance Agency Residential
Housing Finance PUT 3.20% 4/29/2004 5,000 5,085
Minnesota Housing Finance Agency Residential
Housing Finance PUT 2.15% 7/29/2004 8,000 8,014
Regents of the Univ. of Minnesota GO VRDO 1.35% 5/7/2003 32,700 32,700
---------------
$ 57,000
---------------
MISSISSIPPI (1.0%)
Mississippi GO 5.50% 11/1/2003 3,265 3,337
Mississippi GO 5.25% 10/1/2004 18,445 19,480
Mississippi GO 5.50% 11/1/2004 7,265 7,722
Mississippi GO 5.00% 8/15/2005 3,000 3,239
Mississippi GO 5.25% 8/15/2006 5,215 5,798
---------------
$ 39,576
---------------
MISSOURI (3.2%)
Bi-State Dev. Agency of the Missouri-Illinois
Metro. Dist.(St. Clair County Metrolink Extension)
TOB VRDO 1.46% 5/7/2003(4) 10,630 10,630
Curators Univ. of Missouri System Fac. Rev. VRDO 1.35% 5/1/2003 28,900 28,900
24
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FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Missouri Health & Educ. Fac. Auth. Rev.
(Medical Research Fac.-Stowers Institute) VRDO 1.35% 5/7/2003(1) $ 20,000 $ 20,000
Missouri Health & Educ. Fac. Auth. Rev.
(SSM Health Care) 5.00% 6/1/2005 4,805 5,107
Missouri Third State Building GO 4.00% 10/1/2004 25,345 26,359
Missouri Third State Building GO 5.00% 10/1/2006 27,505 30,565
Missouri Water Pollution Control GO 4.00% 10/1/2004 5,630 5,855
----------------
$ 127,416
----------------
NEBRASKA (0.5%)
Lincoln NE Lincoln Electric System Rev. 4.00% 9/1/2004 8,385 8,691
Omaha NE Public Power Dist. Electric Rev. 5.30% 2/1/2005 9,725 10,385
----------------
$ 19,076
----------------
NEVADA (3.7%)
Clark County NV GO 6.20% 6/1/2004(1)(Prere.) 15,500 16,501
Clark County NV Passenger Fac. Rev.
(Las Vegas McCarran International Airport) 6.25% 7/1/2004(1) 8,240 8,684
Clark County NV School Dist. GO 6.00% 6/15/2004(3) 5,000 5,269
Clark County NV School Dist. GO 5.00% 6/1/2005(3) 25,840 27,729
Clark County NV School Dist. GO 5.00% 6/15/2005(1) 5,000 5,372
Clark County NV School Dist. GO 5.00% 6/1/2007(3) 29,020 32,223
Clark County NV School Dist. GO 5.50% 6/15/2007(4) 10,000 11,309
Las Vegas Valley Water Dist. NV GO Water
Improvement & Refunding TOB VRDO 1.42% 5/7/2003(1) 12,065 12,065
Las Vegas Valley Water Dist. NV GO Water
Improvement & Refunding TOB VRDO 1.42% 5/7/2003(3) 5,310 5,310
Nevada Dept. Business & Ind. Solid Waste
Disposal Rev. (Waste Management Inc.) PUT 4.55% 10/1/2004 8,500 8,690
Nevada Highway Improvement Rev.
(Motor Vehicle Fuel Tax) 5.25% 12/1/2003 8,820 9,033
Nevada State Colorado River Comm. GO 6.50% 7/1/2004 (Prere.) 5,000 5,361
----------------
$ 147,546
----------------
NEW HAMPSHIRE (0.3%)
New Hampshire Business Finance Auth. PCR
(United Illuminating) PUT 3.25% 12/3/2007(2) 5,000 5,087
New Hampshire GO 5.00% 11/1/2005 5,000 5,433
----------------
$ 10,520
----------------
NEW JERSEY (2.8%)
New Jersey COP 5.25% 6/15/2003 8,460 8,503
New Jersey Econ. Dev. Auth. Market Transition
Fac. Rev. 5.70% 7/1/2004(1)(Prere.) 6,330 6,790
New Jersey Econ. Dev. Auth. Market Transition
Fac. Rev. 5.80% 7/1/2004(1)(Prere.) 4,000 4,295
New Jersey Econ. Dev. Auth. Market Transition
Fac. Rev. 5.80% 7/1/2004(1)(Prere.) 17,800 19,114
New Jersey Econ. Dev. Auth. Market Transition
Fac. Rev. 5.875% 7/1/2004(1)(Prere.) 6,000 6,448
New Jersey GO 6.00% 7/15/2005 6,455 7,093
New Jersey GO 5.00% 7/15/2007 11,000 12,243
New Jersey Sports & Exposition Auth. Rev. 8.30% 1/1/2005 (ETM) 5,500 6,127
New Jersey Transit Corp. Capital GAN 5.50% 2/1/2004(2) 17,030 17,589
New Jersey Transit Corp. Capital GAN 5.50% 2/1/2006(2) 10,000 11,028
New Jersey Transp. Corp. COP 5.25% 9/15/2004(2) 12,000 12,656
----------------
$ 111,886
----------------
NEW MEXICO (0.9%)
New Mexico GO 5.00% 9/1/2004 7,485 7,861
New Mexico GO 5.00% 9/1/2006 8,560 9,470
New Mexico Highway Comm. Tax Rev. 4.50% 6/15/2003(2) 1,610 1,617
New Mexico Highway Comm. Tax Rev. 5.00% 6/15/2004(2) 1,200 1,252
25
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
New Mexico Highway Comm. Tax Rev. 5.00% 6/15/2004 $ 2,025 $ 2,113
New Mexico Severance Tax Rev. 5.00% 7/1/2004 10,990 11,480
----------------
$ 33,793
----------------
NEW YORK (7.3%)
Long Island NY Power Auth. Electric System Rev. 5.00% 12/1/2006 10,000 10,827
New York City NY GO 5.00% 8/1/2005 14,475 15,427
New York City NY GO 5.00% 8/1/2005 18,185 19,382
New York City NY GO 5.00% 8/1/2005 8,970 9,560
New York City NY GO VRDO 1.35% 5/1/2003(1) 3,200 3,200
New York City NY GO VRDO 1.35% 5/1/2003(1) 1,075 1,075
New York City NY GO VRDO 1.40% 5/1/2003 LOC 5,900 5,900
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.30% 5/1/2003 3,000 3,000
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.40% 5/1/2003(3) 3,400 3,400
New York City NY Transitional Finance Auth. Rev.
Future Tax 2.00% 2/1/2005 6,990 7,057
New York City NY Transitional Finance Auth. Rev.
Future Tax 4.50% 2/1/2007 1,000 1,081
New York City NY Transitional Finance Auth. Rev.
Future Tax 4.50% 2/1/2008 1,000 1,084
New York City NY Transitional Finance Auth. Rev.
VRDO 1.30% 5/1/2003 4,700 4,700
New York City NY Transitional Finance Auth. Rev.
VRDO 1.40% 5/1/2003 7,630 7,630
New York City NY Transitional Finance Auth. Rev.
VRDO 1.40% 5/1/2003 22,500 22,500
New York City NY Transitional Finance Auth. Rev.
VRDO 1.40% 5/1/2003 6,300 6,300
New York City NY Transitional Finance Auth. Rev.
VRDO 1.40% 5/1/2003 13,000 13,000
New York City NY Transitional Finance Auth. Rev.
VRDO 1.35% 5/7/2003 5,800 5,800
New York City NY Transitional Finance Auth. Rev.
VRDO 1.35% 5/7/2003 8,465 8,465
New York State Dormitory Auth. Rev. (City Univ.) 6.25% 7/1/2004(2) 6,570 6,951
New York State Dormitory Auth. Rev.
(Cornell Univ.) VRDO 1.30% 5/7/2003 1,200 1,200
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 7/1/2004(2) 4,000 4,224
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.00% 6/15/2007 3,515 3,912
New York State Mortgage Agency Rev. PUT 2.95% 10/1/2005 3,750 3,756
New York State Urban Dev. Corp. Rev.
(Correctional & Youth Fac.) 5.00% 1/1/2005 2,000 2,111
New York State Urban Dev. Corp. Rev.
(Correctional & Youth Fac.) 5.00% 1/1/2006 10,000 10,776
Port Auth. of New York & New Jersey Rev. 5.25% 7/15/2003 8,195 8,263
Port Auth. of New York & New Jersey Rev. 3.625% 4/15/2004 60,000 61,430
Triborough Bridge & Tunnel Auth. New York Rev. 5.00% 11/15/2005 10,000 10,866
Triborough Bridge & Tunnel Auth. New York Rev.
VRDO 1.30% 5/7/2003(4) 13,890 13,890
Triborough Bridge & Tunnel Auth. New York Rev.
VRDO 1.32% 5/7/2003 10,000 10,000
United Nations Dev. Corp. New York Rev. 6.00% 7/1/2003 (Prere.) 4,000 4,113
----------------
$ 290,880
----------------
NORTH CAROLINA (2.0%)
Charlotte NC Water & Sewer System Rev. VRDO 1.35% 5/7/2003 14,000 14,000
Mecklenburg County NC GO 5.50% 4/1/2006 11,625 12,909
North Carolina Eastern Muni. Power Agency Rev. 6.00% 1/1/2006(1) 6,000 6,664
North Carolina GO 5.00% 3/1/2006 2,000 2,188
North Carolina GO 5.00% 3/1/2007 5,000 5,545
North Carolina GO VRDO 1.30% 5/7/2003 25,000 25,000
North Carolina GO VRDO 1.35% 5/7/2003 13,000 13,000
----------------
$ 79,306
----------------
26
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FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Cleveland OH Water Works Rev. 6.00% 1/1/2005(1) $ 4,545 $ 4,888
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.00% 10/1/2005 7,220 7,715
Ohio Air Quality Dev. Auth. (Ohio Edison) PUT 3.25% 2/1/2008(2) 10,000 10,214
Ohio Air Quality Dev. Auth. PCR
(Toledo Edison) CP 3.00% 7/18/2003 10,100 10,101
Ohio Building Auth. Rev. (Admin. Building Fund) 5.00% 10/1/2004(4) 4,145 4,362
Ohio Building Auth. Rev.
(State Correctional Fac.) 6.50% 10/1/2003(1) 5,710 5,839
Ohio GO 4.50% 6/15/2003 6,760 6,789
Ohio GO 5.00% 3/15/2006 9,000 9,840
Ohio GO 5.00% 8/1/2006 5,000 5,520
Ohio Higher Educ. Capital Fac. Rev. 5.25% 12/1/2005 10,000 10,943
Ohio Higher Educ. Fac. Comm. Rev.
(Case Western Reserve Univ.) VRDO 1.40% 5/1/2003 4,500 4,500
Ohio Higher Educ. Fac. Comm. Rev.
(Case Western Reserve Univ.) VRDO 1.30% 5/7/2003 4,200 4,200
Ohio Higher Educ. Fac. Comm. Rev.
(Kenyon College) VRDO 1.40% 5/7/2003 5,500 5,500
Ohio Highway Capital Improvements Rev. 5.00% 5/1/2004 3,705 3,849
Ohio Highway Capital Improvements Rev. 5.00% 5/1/2005 10,000 10,721
Ohio Highway Capital Improvements Rev. 5.00% 5/1/2005 5,970 6,400
Ohio Highway Capital Improvements Rev. 5.00% 5/1/2006 2,500 2,744
Ohio Housing Finance Agency Mortgage Rev. 3.95% 9/1/2003 2,235 2,255
Ohio Solid Waste Rev. (BP Exploration &
Oil Inc.) VRDO 1.40% 5/1/2003 3,800 3,800
Ohio State Univ. General Receipts Rev. VRDO 1.36% 5/7/2003 11,400 11,400
Ohio State Univ. General Receipts Rev. VRDO 1.36% 5/7/2003 3,000 3,000
Ohio Water Dev. Auth. PCR (Cleveland Electric)
PUT 3.40% 10/1/2004 4,350 4,344
Ohio Water Dev. Auth. PCR (Ohio Edison Co.) PUT 4.40% 12/1/2003 5,000 5,046
----------------
$ 143,970
----------------
OKLAHOMA (1.4%)
Grand River Dam Auth. Oklahoma Rev. 5.70% 6/1/2005(4) 10,150 11,048
Oklahoma City OK GO 5.00% 7/1/2006 2,055 2,261
Oklahoma County OK GO 5.00% 2/1/2005(3) 6,000 6,378
Oklahoma County OK GO 5.00% 2/1/2005(3) 5,500 5,846
Oklahoma Transp. Auth. Turnpike System Rev.
Refunding 4.75% 1/1/2004(2) 10,340 10,592
Oklahoma Transp. Auth. Turnpike System Rev.
Refunding 4.75% 1/1/2004(2) 3,000 3,073
Tulsa County OK Ind. Auth. Rev. 5.00% 1/1/2005(2) 6,100 6,466
Tulsa County OK Ind. Auth. Rev. 5.00% 7/1/2005(2) 6,300 6,784
Tulsa OK Muni. Airport Transp. Rev.
(American Airlines) PUT 5.80% 12/1/2004 5,500 3,223
----------------
$ 55,671
----------------
OREGON (0.7%)
Oregon Health, Housing, Educ. & Cultural Fac. Auth.
(College Housing Project Portland State Univ.)
PUT 5.00% 5/1/2003 (Prere.) LOC 5,240 5,241
Oregon State Dept. Administrative Services 4.00% 9/1/2005(4) 6,000 6,354
Portland OR Sewer System Rev. 6.00% 6/1/2006(3) 14,720 16,604
----------------
$ 28,199
----------------
PENNSYLVANIA (7.8%)
Delaware River Joint Toll Bridge Comm.
Pennsylvania & New Jersey Rev. 5.00% 7/1/2007 4,865 5,358
Geisinger Health System Auth. of Pennsylvania Rev.
(Penn State Geisinger Health System) VRDO 1.35% 5/1/2003 400 400
Pennsylvania GO 5.25% 10/15/2003 10,500 10,699
Pennsylvania GO 0.00% 7/1/2004(1) 7,500 7,391
27
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania GO 5.00% 9/15/2004 $ 10,000 $ 10,515
Pennsylvania GO 5.00% 2/1/2005 12,870 13,677
Pennsylvania GO 5.125% 9/15/2005(2) 3,200 3,476
Pennsylvania GO 5.00% 10/15/2005 5,700 6,185
Pennsylvania GO 5.00% 1/15/2006 4,250 4,627
Pennsylvania GO 5.00% 2/1/2006 11,810 12,871
Pennsylvania GO 5.00% 2/1/2006 10,865 11,841
Pennsylvania GO 5.00% 10/1/2006 13,685 15,160
Pennsylvania GO 5.00% 1/15/2007 3,150 3,476
Pennsylvania GO 5.00% 4/15/2007 1,890 1,923
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. PUT 3.15% 7/1/2003(4) 30,000 30,096
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Carnegie Mellon Univ.) VRDO 1.35% 5/1/2003 13,700 13,700
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Carnegie Mellon Univ.) VRDO 1.35% 5/1/2003 3,500 3,500
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Drexel Univ.) PUT 2.25% 2/1/2005 LOC 21,140 21,367
Pennsylvania Higher Educ. Fac. Auth. Rev.
(St. Joseph's Univ.) PUT 2.80% 11/1/2003 LOC 9,200 9,210
Pennsylvania Higher Educ. Fac. Auth. Rev.
(State System of Higher Educ.) VRDO 1.25% 5/7/2003(2) 6,900 6,900
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Washington & Jefferson Colleges) PUT 2.80% 11/1/2003 LOC 10,500 10,579
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Washington & Jefferson Colleges) PUT 2.80% 11/1/2003 LOC 6,250 6,297
Pennsylvania State Univ. Rev. 5.00% 8/15/2004 3,000 3,146
Pennsylvania State Univ. Rev. 5.00% 8/15/2005 6,045 6,528
Philadelphia PA GO 5.00% 5/15/2003(3) 5,845 5,855
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Hosp. of Philadelphia) PUT 5.00% 7/1/2007(1) 11,000 12,212
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Hosp. of Philadelphia) VRDO 1.35% 5/1/2003 14,500 14,500
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Hosp. of Philadelphia) VRDO 1.35% 5/1/2003 18,800 18,800
Philadelphia PA IDA Rev.
(Philadelphia Airport System) 5.25% 7/1/2004(3) 3,580 3,732
Sayre PA Health Care Fac. Auth. Rev. (VHA of
Pennsylvania, Pooled Capital Asset
Financial Program) VRDO 1.40% 5/7/2003(2) 3,600 3,600
Sayre PA Health Care Fac. Auth. Rev.
(VHA of Pennsylvania, Pooled Capital
Asset Financial Program) VRDO 1.40% 5/7/2003(2) 4,600 4,600
St. Mary's Hosp. Auth. Bucks County PA Rev.
(Catholic Health Initiatives) VRDO 1.35% 5/7/2003 11,600 11,600
Univ. of Pittsburgh of the Commonwealth System of
Higher Educ. Pennsylvania (Univ.
Capital Project) VRDO 1.35% 5/7/2003 5,700 5,700
Washington County PA Higher Educ.
(Pooled Equipment Lease Program) VRDO 1.40% 5/7/2003 LOC 9,100 9,100
----------------
$ 308,621
----------------
PUERTO RICO (0.2%)
Puerto Rico Muni. Finance Agency 4.25% 8/1/2005(4) 4,000 4,258
Puerto Rico Muni. Finance Agency 4.00% 8/1/2006(4) 2,000 2,149
----------------
$ 6,407
----------------
28
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND (2.7%)
Rhode Island Health & Educ. Building Corp. Rev.
(Brown Univ.) VRDO 1.35% 5/7/2003 $ 37,400 $ 37,400
Rhode Island Housing & Mortgage Finance Corp.
Rev. 4.50% 10/1/2003 5,490 5,552
Rhode Island Housing & Mortgage Finance Corp.
Rev. 5.00% 10/1/2003 10,000 10,129
Rhode Island Housing & Mortgage Finance Corp.
Rev. 4.50% 3/22/2004 25,000 25,732
Rhode Island Housing & Mortgage Finance Corp.
Rev. 4.00% 3/24/2005 13,125 13,713
Rhode Island Housing & Mortgage Finance Corp.
Rev. 3.375% 1 1/1/2005 12,500 12,933
----------------
$ 105,459
----------------
SOUTH CAROLINA (1.2%)
Chesterfield County SC School Dist. BAN 2.50% 9/26/2003 20,000 20,112
South Carolina GO 5.25% 4/1/2004 12,525 13,003
South Carolina GO 5.00% 1/1/2005 10,000 10,607
South Carolina Public Service Auth. Rev. 5.00% 1/1/2005 2,000 2,118
South Carolina Public Service Auth. Rev. 5.00% 1/1/2006 3,000 3,255
---------------
$ 49,095
---------------
TENNESSEE (0.6%)
Memphis-Shelby County TN Airport Auth. Rev. 5.50% 3/1/2005(4) 7,835 8,351
Metro. Govt. of Nashville & Davidson County TN GO 5.00% 10/15/2004 9,940 10,479
Tennessee GO 5.25% 2/1/2005(3) 5,000 5,335
----------------
$ 24,165
----------------
TEXAS (11.1%)
Abilene TX Waterworks & Sewer Systems GO 2.02% 2/15/2004 2,500 2,501
Abilene TX Waterworks & Sewer Systems GO 2.45% 2/15/2005 2,475 2,477
Austin TX Public Improvement GO 5.25% 9/1/2004 6,000 6,319
Austin TX Water & Wastewater System Rev. 5.25% 11/15/2005(2) 6,070 6,634
Board of Regents of the Univ. of Texas System Rev.
Financing System 5.00% 8/15/2005 5,000 5,398
Brazos River TX Harbor Navigation Dist. Brazoria County
Environmental (Dow Chemical Co. Project) PUT 4.40% 5/15/2005 10,000 10,193
Cypress-Fairbanks TX Independent School Dist. Unlimited
Tax Schoolhouse PUT 4.00% 8/15/2005 10,000 10,534
Dallas-Fort Worth TX International Airport Rev. 5.50% 11/1/2004(3) 2,355 2,491
Dallas-Fort Worth TX International Airport Rev. 5.00% 11/1/2005(1) 4,235 4,550
Dallas-Fort Worth TX International Airport Rev. 5.50% 11/1/2005(3) 2,450 2,664
Denton TX Independent School Dist. PUT 3.45% 1/31/2005 8,100 8,120
Fort Worth TX GO 4.00% 3/1/2004 5,500 5,632
Harris County TX Flood Control Dist. 5.00% 10/1/2004 4,000 4,210
Harris County TX GO VRDO 1.35% 5/7/2003 2,000 2,000
Harris County TX GO VRDO 1.35% 5/7/2003 10,820 10,820
Harris County TX Health Fac. Dev. Corp. Rev.
(Methodist Hosp.) VRDO 1.35% 5/1/2003 48,700 48,700
Harris County TX Health Fac. Dev. Corp. Rev.
(St. Luke's Episcopal Hosp.) VRDO 1.35% 5/1/2003 61,345 61,345
Harris County TX Health Fac. Dev. Corp. Rev.
(Texas Medical Center) VRDO 1.35% 5/1/2003(1) 22,200 22,200
Harris County TX Health Fac. Dev. Corp. Rev.
(Young Men's Christian Assoc. of Greater Houston)
VRDO 1.35% 5/1/2003 LOC 8,100 8,100
Harris County TX IDA (Shell Oil Co.) VRDO 1.40% 5/1/2003 6,800 6,800
Houston TX GO 5.00% 3/1/2004(1) 2,150 2,219
Houston TX GO 5.00% 3/1/2006(1) 7,060 7,700
Houston TX Water & Sewer System Rev. 0.00% 12/1/2004(2) 10,740 10,497
29
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Lewisville TX Independent School Dist. 5.25% 8/15/2006 $ 5,000 $ 5,554
Matagorda County TX Navigation Dist. PCR
(Central Power & Light) PUT 4.00% 11/1/2003 15,000 15,031
Red River TX Educ. Finance Rev.
(Texas Christian Univ.) VRDO 1.35% 5/7/2003 13,000 13,000
Richardson TX Independent School Dist. GO 5.00% 2/15/2005 5,000 5,317
San Antonio TX Electric & Gas Rev. 5.65% 2/1/2007 (Prere.) 10,740 12,219
San Antonio TX GO 4.50% 2/1/2004 2,610 2,676
San Antonio TX GO 5.00% 8/1/2005 9,900 10,674
Southwest Texas Higher Educ. Auth. Inc.
(Southern Methodist Univ.) VRDO 1.35% 5/1/2003 LOC 4,800 4,800
Texas A & M Univ. Rev. Financing System 4.00% 5/15/2005 1,750 1,841
Texas GO Public Finance Auth. 5.75% 10/1/2004 (Prere.) 5,000 5,321
Texas GO Public Finance Auth. 5.75% 10/1/2004 (Prere.) 8,625 9,179
Texas Muni. Power Agency Rev. 0.00% 9/1/2005(2) 5,490 5,274
Texas TOB VRDO 1.35% 5/7/2003 25,000 25,000
Texas Water Dev. Board Rev. VRDO 1.40% 5/1/2003 6,800 6,800
Trinity River Auth. Texas PCR
(Texas Util. System) PUT 5.00% 11/1/2006 20,000 19,943
Univ. of Texas Permanent Univ. Fund Rev. 5.00% 7/1/2005 5,000 5,379
Waco TX Educ. Finance Corp. (Baylor Univ.) VRDO 1.35% 5/7/2003 (10) 8,975 38,975
----------------
$ 439,087
----------------
UTAH (0.5%)
Utah GO 5.00% 7/1/2006 17,875 19,716
VERMONT (0.1%)
Vermont Housing Finance Agency Single Family 4.00% 3/1/2004 5,500 5,623
VIRGINIA (2.1%)
Loudoun County VA GO 5.25% 11/1/2005 4,410 4,822
Metro. Washington Airports Auth. Airport
System Rev. 5.50% 10/1/2004(1) 3,005 3,169
Metro. Washington Airports Auth. Airport
System Rev. 5.50% 10/1/2005(1) 4,290 4,651
Norfolk VA 5.00% 7/1/2006(4) 8,810 9,712
Pittsylvania County VA GO 4.00% 6/1/2003 6,500 6,513
Richmond VA GO 4.50% 7/15/2005(4) 3,640 3,886
Virginia Commonwealth Transp. Board Federal
Highway Rev. 5.50% 10/1/2003 13,750 14,005
Virginia Housing Dev. Auth. Rev. 3.375% 1/1/2004 7,130 7,233
Virginia Public School Auth. Rev. 4.00% 8/1/2006 7,500 8,048
Virginia Public School Educ. Technology Notes 4.50% 4/15/2004 11,325 11,694
Virginia Public School Educ. Technology Notes 5.00% 4/15/2005 10,445 11,178
----------------
$ 84,911
----------------
WASHINGTON (1.1%)
King County WA Sewer Rev. 5.00% 1/1/2005(4) 2,250 2,383
King County WA Sewer Rev. 5.00% 1/1/2006(4) 3,000 3,259
Port of Seattle WA Rev. 5.00% 9/1/2004(3) 3,000 3,135
Port of Seattle WA Rev. 5.25% 9/1/2006(3) 3,000 3,296
Seattle WA GO 5.00% 7/1/2005 12,025 12,936
Seattle WA GO 3.00% 10/1/2005 13,055 13,522
Washington GO 5.00% 9/1/2005 5,180 5,594
----------------
$ 44,125
----------------
WEST VIRGINIA (0.1%)
West Virginia GO 5.50% 6/1/2005(4) 5,160 5,591
30
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
SHORT-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Wisconsin (0.6%)
Milwaukee WI GO 6.00% 2/1/2005 $ 9,300 10,035
Milwaukee WI Metro. Sewer Dist. GO 6.125% 10/1/2003 2,000 2,042
Univ. of Wisconsin Hosp. & Clinics Auth. Rev.
(Univ. of Wisconsin Hosp.) VRDO 1.35% 5/7/2003(1) 6,000 6,000
Wisconsin GO 6.00% 5/1/2003 4,000 4,001
---------------
$ 22,078
---------------
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $3,913,027) $ 3,957,901
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.3%)
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets-Note B 41,358
Liabilities (28,563)
----------------
$ 12,795
----------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%) $ 3,970,696
==================================================================================================================================
(+)See Note A in Notes to Financial Statements.
Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from registration,
normally to qualified institutional buyers. At April 30, 2003, the aggregate
value of these securities was $53,005,000, representing 1.3% of net assets.
For key to abbreviations and other references, see page 108.
- --------------------------------------------------------------------------------
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
Amount
(000)
- --------------------------------------------------------------------------------
Paid-in Capital $ 3,926,802
Undistributed Net Investment Income --
Accumulated Net Realized Losses (980)
Unrealized Appreciation 44,874
- --------------------------------------------------------------------------------
NET ASSETS $ 3,970,696
================================================================================
Investor Shares-Net Assets
Applicable to 128,710,433 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $ 2,032,694
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-INVESTOR SHARES $ 15.79
================================================================================
Admiral Shares-Net Assets
Applicable to 122,714,492 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $ 1,938,002
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-ADMIRAL SHARES $ 15.79
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
31
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (99.3%)
- ----------------------------------------------------------------------------------------------------------------------------------
Alabama (0.5%)
Birmingham AL GO 5.25% 4/1/2005(4) 5,000 5,364
Huntsville AL Health Care Fac. Auth. PUT 4.65% 6/1/2005(1) 23,650 24,881
Huntsville AL Health Care Fac. Auth. PUT 4.65% 6/1/2005(1) 1,415 1,489
------------
31,734
------------
Alaska (1.3%)
Alaska GO 5.25% 8/1/2007(4) 6,760 7,610
Alaska GO 5.00% 7/15/2008(4) 6,605 7,413
Alaska Housing Finance Corp.
Governmental Purpose VRDO 1.45% 5/7/2003(1) 4,000 4,000
Alaska Housing Finance Corp. (State Capital) 5.50% 6/1/2004(1) 7,245 7,567
North Slope Borough AK GO 0.00% 6/30/2004(4) 8,955 8,824
North Slope Borough AK GO 0.00% 6/30/2006(1) 19,250 18,023
North Slope Borough AK GO 0.00% 6/30/2007(1) 8,000 7,187
North Slope Borough AK GO 0.00% 6/30/2008(1) 17,100 14,691
Valdez AK Marine Terminal Rev.
(Exxon Pipeline Co.) VRDO 1.30% 5/1/2003 2,500 2,500
------------
77,815
------------
Arizona (2.0%)
Arizona COP 5.00% 9/1/2006(4) 6,780 7,492
Arizona Transp. Board Excise Tax Rev. 5.00% 7/1/2004 14,365 15,011
Arizona Transp. Board Excise Tax Rev. 5.00% 7/1/2004(ETM) 800 836
Arizona Transp. Board Highway Rev. 5.50% 7/1/2004 15,040 15,803
Arizona Transp. Board Highway Rev. 8.00% 7/1/2004 6,300 6,799
Maricopa County AZ Community College Dist. GO 5.25% 7/1/2003 8,350 8,409
Maricopa County AZ PCR
(Arizona Public Service) PUT 1.70% 3/4/2004 11,000 11,001
Mesa AZ Util. System Rev. 5.00% 7/1/2008(1) 6,500 7,293
Phoenix AZ Civic Improvement Corp.
Wastewater System Rev. 6.125% 7/1/2003(Prere.) 10,000 10,285
Salt River Project Arizona Agricultural
Improvement & Power Dist. Rev. 5.25% 1/1/2006 9,375 10,263
Salt River Project Arizona Agricultural
Improvement & Power Dist. Rev. 5.15% 1/1/2007 7,630 8,459
Salt River Project Arizona Agricultural
Improvement & Power Dist. Rev. 5.00% 1/1/2009 10,000 11,157
Univ. of Arizona Board of Regents 5.90% 6/1/2008(4) 4,095 4,754
------------
117,562
------------
California (5.2%)
California Dept. of Water Resources Water System Rev.
(Central Valley) 8.25% 12/1/2005 5,685 6,663
California GO 7.50% 11/1/2003(3) 6,000 6,189
California GO 5.25% 3/1/2006 26,000 28,211
California GO 5.25% 11/1/2008 10,000 11,133
California Higher Educ. Loan Auth.
Student Loan Rev. PUT 6.50% 6/1/2005 7,000 7,462
California PCR Financing Auth. Rev.
(Southern California Edison Co.) PUT 7.00% 2/28/2008 20,000 20,334
California Pollution Control Financing Auth.
Solid Waste Disposal Rev. (Waste Management) PUT 4.85% 11/30/2007 6,000 6,247
California RAN FR 1.32% 5/7/2003 50,000 49,925
California RAN FR 1.32% 5/7/2003 15,000 14,977
California State Dept. Water Resources
Power Supply Rev. 5.25% 5/1/2007(1) 14,725 16,487
California State Dept. Water Resources
Power Supply Rev. 5.50% 5/1/2007 25,335 28,169
California State Dept. Water Resources
Power Supply Rev. 5.25% 5/1/2009(1) 10,000 11,282
32
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
California Statewide Community Dev. Auth. Rev.
(Kaiser Permanente) PUT 3.85% 8/1/2006 15,000 15,681
California Statewide Community Dev. Auth. Rev.
(Kaiser Permanente) PUT 4.35% 2/28/2007 19,325 20,382
Chula Vista CA IDR (San Diego Gas & Electric) PUT 7.00% 12/1/2005 10,000 11,099
East Bay CA Muni. Util. Dist. Water System Rev. 5.20% 6/1/2008(1) 5,800 5,935
Long Beach CA Harbor Rev. PUT 4.00% 5/14/2004(1) 25,000 25,719
Los Angeles CA Dept. of Water & Power Rev. 9.00% 5/15/2003 5,355 5,372
Los Angeles County CA Public Works
Financing Auth. Rev. 6.00% 10/1/2003 12,010 12,253
Santa Clara Valley CA Water Dist.
Ref. & Improvement COP 5.00% 2/1/2008(3) 4,385 4,895
Southern California Public Power Auth. Rev.
(Transmission Project) VRDO 1.35% 5/7/2003 (4) 1,000 1,000
------------
309,415
------------
Colorado (4.0%)
Arapahoe County CO Capital Improvement Trust
Fund Highway Rev. 0.00% 8/31/2005 (Prere.) 11,920 8,217
Arapahoe County CO Capital Improvement Trust
Fund Highway Rev. 0.00% 8/31/2005 (Prere.) 114,235 53,582
Arapahoe County CO Capital Improvement Trust
Fund Highway Rev. 0.00% 8/31/2005 (Prere.) 280,005 56,357
Arapahoe County CO Capital Improvement Trust
Fund Highway Rev. 7.00% 8/31/2005 (Prere.) 17,000 19,657
Colorado Dept. of Transp. Rev. 5.25% 6/15/2006 2,335 2,585
Colorado Dept. of Transp. Rev. 5.25% 6/15/2007 2,035 2,282
Colorado Dept. of Transp. Rev. 5.50% 6/15/2007 (1) 18,000 20,363
Colorado Dept. of Transp. Rev. 5.25% 6/15/2008 2,530 2,862
Colorado Health Fac. Auth. Rev.
(Catholic Health Initiatives) 5.50% 9/1/2006 5,490 6,040
Colorado Springs CO Util. System Rev. 5.25% 11/15/2006 9,265 10,364
Colorado Springs CO Util. System Rev. 5.25% 11/15/2007 5,890 6,665
Denver CO City & County Airport Rev. 5.50% 11/15/2003 (2) 3,000 3,068
Denver CO City & County Airport Rev. 5.50% 11/15/2005 (2) 9,375 10,185
Denver CO City & County Auditorium Theatre & ZooGO5.50% 8/1/2008 12,835 14,726
Denver CO City & County GO 5.00% 8/1/2007 5,000 5,574
Lowry Econ. Redev. Auth. Colorado Rev. VRDO 1.35% 5/7/2003 LOC 14,135 14,135
------------
236,662
------------
Connecticut (2.3%)
Connecticut GO 6.25% 5/15/2005 10,000 10,980
Connecticut GO 6.25% 5/15/2005 (ETM) 80 88
Connecticut GO 5.00% 6/15/2005 13,810 14,840
Connecticut GO 5.00% 4/15/2007 17,985 19,910
Connecticut GO 5.25% 6/15/2007 12,760 14,299
Connecticut GO 5.00% 11/15/2007 7,250 8,118
Connecticut GO 5.00% 11/15/2007 19,340 21,655
Connecticut GO 5.00% 12/15/2007 7,000 7,849
Connecticut GO 5.25% 12/15/2007 7,370 8,344
Connecticut GO 5.00% 11/15/2008 10,000 11,259
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) VRDO 1.35% 5/7/2003 (2) 19,000 19,000
------------
136,342
------------
Delaware (0.6%)
Delaware GO 5.25% 7/1/2007 20,260 22,829
33
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FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Delaware Transp. Auth. Transp. System Rev. 5.40% 7/1/2003 (Prere.) 4,630 4,756
Delaware Transp. Auth. Transp. System Rev. 5.00% 7/1/2005 (1) 8,890 9,575
------------
37,160
------------
District of Columbia (1.0%)
District of Columbia GO 5.00% 6/1/2003 (1) 3,935 3,948
District of Columbia GO 5.00% 6/1/2003 (1)(ETM) 2,060 2,067
District of Columbia GO 5.80% 6/1/2004 (3) 5,480 5,751
District of Columbia GO 5.80% 6/1/2004 (3)(ETM) 1,125 1,182
District of Columbia GO 5.30% 6/1/2005 (2) 10,900 11,752
District of Columbia GO 5.25% 6/1/2007 (1) 16,000 17,875
District of Columbia GO 5.25% 6/1/2008 (1) 5,355 6,030
District of Columbia GO 5.50% 6/1/2008 (4) 3,530 4,017
District of Columbia GO 5.50% 6/1/2008 (4)(ETM) 1,220 1,396
District of Columbia GO VRDO 1.35% 5/7/2003 (1) 3,895 3,895
District of Columbia Univ. Rev.
(George Washington Univ.) 5.50% 9/15/2004 (1) 4,000 4,230
------------
62,143
------------
Florida (4.1%)
Broward County FL GO 5.00% 1/1/2007 8,300 9,155
Broward County FL GO 5.00% 1/1/2008 4,000 4,451
Broward County FL Resource Recovery Rev.
(Wheelabrator Series A) 5.375% 12/1/2010 4,900 5,294
Broward County FL Resource Recovery Rev.
(Wheelabrator Series A) 4.50% 12/1/2011 5,900 6,022
Broward County FL Resource Recovery Rev.
(Wheelabrator-South) 5.50% 12/1/2008 22,980 25,614
Broward County FL Resource Recovery Rev.
(Wheelabrator-South) 5.375% 12/1/2009 2,000 2,198
Broward County FL School Dist. GO 5.00% 2/15/2006 3,170 3,459
Broward County FL School Dist. GO 5.00% 2/15/2007 2,890 3,194
Florida Board of Educ. 5.25% 6/1/2007 4,890 5,483
Florida Board of Educ. 5.25% 6/1/2008 5,055 5,726
Florida Board of Educ. Capital Outlay 6.50% 6/1/2004 5,565 5,884
Florida Board of Educ. Capital Outlay 5.25% 1/1/2006 3,540 3,872
Florida Board of Educ. Public Educ. 5.00% 6/1/2008 (4) 19,600 21,969
Florida Correctional Privatization Comm. COP 5.25% 8/1/2008 (1) 4,335 4,917
Florida Dept. of Transp. 5.25% 7/1/2008 4,670 5,299
Florida Division Board Financial Dept. of General Services
Systems Rev. (Dept. of Environmental Protection) 6.00% 7/1/2004 (2) 10,815 11,424
Florida Turnpike Auth. Rev. 5.25% 7/1/2007 (4) 5,855 6,577
Greater Orlando Aviation Auth. Orlando
FL Airport Fac. Rev. 5.00% 10/1/2005 (1) 6,855 7,435
Greater Orlando Aviation Auth. Orlando
FL Airport Fac. Rev. 5.25% 10/1/2006 (1) 7,830 8,741
Greater Orlando Aviation Auth. Orlando
FL Airport Fac. Rev. 5.25% 10/1/2007 (1) 6,995 7,895
JEA Florida St. Johns River Power Park Rev. 5.00% 10/1/2008 21,000 23,532
Orange County FL Health Fac. Auth. Rev.
(Orlando Regional Healthcare) 6.00% 10/1/2004 (1) 1,160 1,238
Orange County FL Health Fac. Auth. Rev.
(Orlando Regional Healthcare) 6.00% 10/1/2004 (1)(ETM) 2,815 3,006
Orange County FL School Board VRDO 1.40% 5/1/2003 (1) 15,200 15,200
Orlando FL Util. Comm. Water & Electric Rev. 5.00% 10/1/2008 4,835 5,444
Orlando FL Util. Comm. Water & Electric Rev. VRDO 1.30% 5/7/2003 15,300 15,300
Palm Beach County FL Airport System Rev. 5.50% 10/1/2005 (1) 8,830 9,677
Palm Beach County FL School Dist. GO 5.00% 8/1/2004 (1) 8,715 9,134
34
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FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Tampa-Hillsborough County FL Expressway Auth. Rev.6.50% 7/1/2003 (2) 4,770 4,813
------------
241,953
------------
Georgia (3.8%)
Atlanta GA Airport Fac. Rev. 0.00% 1/1/2010 (1) 10,000 7,113
Atlanta GA Water & Sewer Rev. 5.25% 1/1/2007 (3)(Prere.) 15,300 17,158
Atlanta GA Water & Wastewater Rev. VRDO 1.40% 5/7/2003 (4) 18,200 18,200
Burke County GA Dev. Auth. PCR
(Georgia Power Co. Plant Vogtle) PUT 4.45% 12/1/2008 25,000 26,663
Burke County GA Dev. Auth. PCR
(Oglethorpe Power Corp.) VRDO 1.35% 5/1/2003 (2) 11,270 11,270
Douglas County GA School Dist. GO 5.25% 4/1/2004 4,200 4,358
Fulton County GA Dev. Auth.
(Robert A. Woodruff Arts Center) VRDO 1.30% 5/7/2003 33,580 33,580
Georgia GO 6.00% 7/1/2003 8,300 8,369
Georgia GO 6.25% 3/1/2006 5,000 5,634
Georgia GO 6.00% 7/1/2007 10,580 12,219
Georgia Road & Tollway Auth. Rev.
(Governors Transp. Choices) 5.25% 3/1/2007 6,185 6,901
Georgia Road & Tollway Auth. Rev.
(Governors Transp. Choices) 5.25% 3/1/2009 10,355 11,719
Metro. Atlanta GA Rapid Transp. Auth.
Georgia Sales Tax Rev. 6.25% 7/1/2006 (1) 10,000 11,388
Metro. Atlanta GA Rapid Transp. Auth.
Georgia Sales Tax Rev. 6.25% 7/1/2008 (1) 4,000 4,719
Newton County GA School Dist. GO 5.25% 8/1/2003 5,765 5,825
Newton County GA School Dist. GO 5.50% 8/1/2004 6,185 6,516
Private Colleges & Univ. Auth. of Georgia Rev.
(Emory Univ.) 5.50% 11/1/2006 8,000 9,008
Private Colleges & Univ. Auth. of Georgia Rev.
(Emory Univ.) 5.50% 11/1/2007 6,270 7,153
Private Colleges & Univ. Auth. of Georgia Rev.
(Emory Univ.) 5.25% 9/1/2008 10,000 11,360
Richmond County GA Board of Educ. GO 5.00% 11/1/2005 5,000 5,429
------------
224,582
------------
Hawaii (2.5%)
Hawaii Airport System Rev. 5.50% 7/1/2006 (3) 10,000 11,021
Hawaii Airport System Rev. 5.50% 7/1/2007 (3) 10,000 11,155
Hawaii Airport System Rev. 6.00% 7/1/2007 (3) 6,000 6,809
Hawaii Airport System Rev. 5.50% 7/1/2009 (3) 10,275 11,521
Hawaii GO 5.25% 4/1/2004 (1) 14,600 15,150
Hawaii GO 5.50% 4/1/2004 (1) 11,920 12,396
Hawaii GO 5.70% 10/1/2004 (1)(ETM) 10,000 10,622
Hawaii GO 6.25% 3/1/2005 (3) 8,585 9,333
Hawaii GO 5.50% 4/1/2005 (1) 13,630 14,682
Hawaii GO 6.00% 11/1/2005 (3) 5,000 5,548
Hawaii GO 5.25% 2/1/2007 (4) 10,375 11,539
Hawaii GO 5.50% 8/1/2007 (3) 2,330 2,643
Hawaii GO 5.75% 4/1/2008 (1) 4,005 4,602
Hawaii GO 5.50% 8/1/2008 (3) 6,755 7,739
Honolulu HI City & County GO 5.25% 11/1/2003 (3) 13,135 13,407
------------
148,167
------------
Illinois (5.6%)
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2006 (2) 16,120 17,540
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2006 (2) 3,970 4,320
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2007 (2) 3,140 3,468
35
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Chicago IL School Finance Auth. GO 5.00% 6/1/2003 (3) 25,190 25,273
Chicago IL School Finance Auth. GO 5.10% 6/1/2004 (3) 10,000 10,233
Chicago IL Transit Auth. Capital Grant Receipts Rev.
(Douglas Branch Project) 4.00% 6/1/2006 (2) 6,500 6,657
Illinois Dev. Finance Auth. Hosp. Rev.
(Evanston Northwestern Healthcare Corp.) VRDO 1.35% 5/7/2003 9,500 9,500
Illinois Dev. Finance Auth. PCR
(Commonwealth Edison) 4.40% 12/1/2006 (2) 19,000 20,675
Illinois Dev. Finance Auth. Rev.
(Provena Health) 5.50% 5/15/2004 (1) 4,740 4,940
Illinois Dev. Finance Auth. Rev.
(Provena Health) 5.50% 5/15/2005 (1) 2,500 2,688
Illinois Dev. Finance Auth. Rev.
(Provena Health) 5.50% 5/15/2006 (1) 2,000 2,203
Illinois Dev. Finance Auth. Solid Waste Disp. Rev.
(Waste Management) 5.85% 2/1/2007 7,185 7,667
Illinois Educ. Fac. Auth. Rev.
(Univ. of Chicago) PUT 4.40% 7/1/2004 6,225 6,444
Illinois GO 5.25% 8/1/2003 3,515 3,551
Illinois GO 5.60% 4/1/2004 (Prere.) 4,100 4,350
Illinois GO 5.50% 12/1/2004 12,000 12,790
Illinois GO 5.00% 2/1/2005 (3) 4,500 4,780
Illinois GO 4.00% 12/1/2006 5,000 5,377
Illinois GO 5.00% 10/1/2007 (4) 9,000 10,060
Illinois GO 5.25% 11/1/2007 (3) 5,000 5,651
Illinois GO 5.00% 12/1/2007 5,475 6,134
Illinois GO 5.25% 8/1/2008 14,500 16,420
Illinois GO 5.00% 10/1/2008 (4) 7,000 7,874
Illinois GO 5.25% 11/1/2008 (3) 4,000 4,556
Illinois GO 5.75% 1/1/2009 3,000 3,456
Illinois Health Fac. Auth. Rev.
(Advocate Health Care Network) 5.25% 8/15/2005 (ETM) 2,085 2,263
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.00% 6/1/2003 (1) 2,895 2,904
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.00% 6/1/2004 (1) 3,080 3,199
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.00% 6/1/2006 (1) 4,400 4,789
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.25% 6/1/2007 (1) 5,270 5,836
Illinois Health Fac. Auth. Rev.
(Northwestern Memorial Hosp.) VRDO 1.35% 5/1/2003 15,075 15,075
Illinois Health Fac. Auth. Rev.
(Univ. of Chicago Hosp. & Health Systems) VRDO 1.35% 5/1/2003 (1) 9,100 9,100
Illinois Sales Tax Rev. 5.60% 6/15/2004 4,000 4,198
Illinois Student Assistance Comm.Student Loan Rev.5.70% 3/1/2006 4,000 4,135
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 6.50% 6/15/2003 (Prere.) 29,455 30,242
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2008 (3) 170 146
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2008 (3)(ETM) 1,220 1,057
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2008 (3)(ETM) 6,500 5,630
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 5.25% 6/15/2008 (1) 3,250 3,671
Regional Transp. Auth. Cook, Du Page, Kane, Lake, McHenry,
and Will Counties IL GO 5.00% 6/1/2005 (3) 5,000 5,366
Regional Transp. Auth. Cook, Du Page, Kane, Lake, McHenry,
and Will Counties IL GO 5.00% 6/1/2006 (3) 6,950 7,632
Regional Transp. Auth. Cook, Du Page, Kane, Lake, McHenry,
and Will Counties IL GO 5.00% 6/1/2007 (3) 9,710 10,782
36
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Regional Transp. Auth. Cook, Du Page, Kane, Lake, McHenry,
and Will Counties IL GO 5.25% 6/1/2008 (3) 9,855 11,133
------------
333,765
------------
Indiana (0.6%)
Indiana Office Building Comm. Fac. Rev.
(New Castle Correctional Fac.) 5.25% 7/1/2008 (3) 3,040 3,430
Indiana Univ. Rev. (Student Fee) 5.25% 8/1/2004 (1) 4,000 4,201
Indiana Univ. Rev. (Student Fee) 5.25% 8/1/2005 (1) 1,345 1,457
Indiana Univ. Rev. (Student Fee) 5.25% 8/1/2007 (1) 1,000 1,123
Indianapolis IN Airport Auth. Rev. 5.00% 7/1/2004 (3) 5,000 5,198
Rockport IN PCR (AEP Generating Co.) PUT 4.05% 7/13/2006 (2) 21,000 22,374
------------
37,783
------------
Kansas (0.7%)
Kansas Dept. of Transp. Highway Rev. 7.25% 3/1/2006 5,820 6,710
Kansas Dept. of Transp. Highway Rev. 5.50% 9/1/2006 6,000 6,731
Kansas Dept. of Transp. Highway Rev. VRDO 1.32% 5/7/2003 22,300 22,300
Wichita KS Sales Tax Rev. 5.00% 4/1/2007 2,610 2,891
------------
38,632
------------
Kentucky (2.4%)
Jefferson County KY GO 0.00% 8/15/2004 (4) 3,980 3,915
Jefferson County KY GO 0.00% 8/15/2005 (4) 4,780 4,606
Kentucky Property & Building Comm. Rev. 5.25% 2/1/2005 4,090 4,363
Kentucky Property & Building Comm. Rev. 5.50% 8/1/2006 (4) 10,520 11,768
Kentucky Property & Building Comm. Rev. 5.25% 2/1/2007 (4) 1,500 1,669
Kentucky Property & Building Comm. Rev. 5.25% 8/1/2007 (4) 13,000 14,619
Kentucky Property & Building Comm. Rev. 5.50% 8/1/2007 4,550 5,163
Kentucky Property & Building Comm. Rev. 5.50% 8/1/2008 210 241
Kentucky Property & Building Comm. Rev. 5.50% 8/1/2008 (ETM) 7,290 8,364
Kentucky Property & Building Comm. Rev. 6.00% 10/1/2008 10,000 11,747
Kentucky Turnpike Auth. Econ. Dev. Road Rev.
(Revitalization Project) 6.50% 7/1/2007 (2) 18,000 21,075
Kentucky Turnpike Auth. Econ. Dev. Road Rev.
(Revitalization Project) 5.50% 7/1/2008 (2) 5,060 5,789
Kentucky Turnpike Auth. Econ. Dev. Road Rev.
(Revitalization Project) 5.75% 7/1/2008 (4) 26,760 30,938
Kentucky Turnpike Auth. Econ. Dev. Road Rev.
(Revitalization Project) 5.50% 7/1/2009 (2) 15,000 17,238
------------
141,495
------------
Louisiana (1.3%)
Jefferson Parish LA Sales Tax Dist.
Special Sales Tax Rev. 5.50% 12/1/2004 (4) 5,145 5,486
Jefferson Parish LA Sales Tax Dist.
Special Sales Tax Rev. 5.50% 12/1/2005 (4) 3,790 4,172
Jefferson Parish LA School Board Sales & Tax Rev. 5.25% 2/1/2005 (1) 8,300 8,853
Jefferson Parish LA School Board Sales & Tax Rev. 5.25% 2/1/2006 (1) 8,740 9,579
Jefferson Parish LA School Board Sales & Tax Rev. 5.25% 2/1/2007 (1) 9,190 10,224
Louisiana GO 5.25% 4/1/2006 (3) 9,335 10,275
Louisiana Offshore Term Auth. Deep Water Port Auth.
(LOOP LLC Project) PUT 4.00% 9/1/2008 5,000 5,166
Louisiana Public Fac. Auth. Hosp. Rev.
(Franciscan Missionaries) 5.50% 7/1/2005 (4) 5,865 6,334
St. Charles Parish LA PCR (Entergy Inc.) PUT 5.35% 10/1/2003 14,775 14,861
------------
74,950
------------
Maryland (1.7%)
Anne Arundel County MD GO 5.00% 3/1/2008 7,375 8,242
37
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Maryland Dept. of Transp. 5.25% 2/1/2007 9,000 10,033
Maryland GO 5.25% 3/1/2007 21,005 23,527
Maryland GO 5.25% 2/1/2008 5,000 5,648
Maryland GO 5.25% 3/1/2008 24,935 28,209
Washington Suburban Sanitation Dist. Maryland
General Construction GO 5.25% 6/1/2007 10,000 11,255
Washington Suburban Sanitation Dist. Maryland
Water Supply GO 5.25% 6/1/2009 12,785 14,587
------------
101,501
------------
Massachusetts (4.8%)
Boston MA GO 5.00% 2/1/2008 (1) 5,000 5,576
Massachusetts Dev. Finance Agency Resource
Recovery Rev. (SEMASS System) 5.25% 1/1/2006 (1) 15,170 16,330
Massachusetts Dev. Finance Agency Resource
Recovery Rev. (SEMASS System) 5.25% 1/1/2007 (1) 15,070 16,409
Massachusetts Educ. Finance Auth. Educ. Loan Rev. 4.40% 12/1/2005 (1) 1,955 2,078
Massachusetts Educ. Finance Auth. Educ. Loan Rev. 4.50% 12/1/2006 (1) 2,370 2,561
Massachusetts Educ. Finance Auth. Educ. Loan Rev. 4.55% 12/1/2007 (1) 3,185 3,458
Massachusetts GAN 5.75% 6/15/2007 9,650 10,999
Massachusetts GAN 5.75% 12/15/2008 16,210 18,907
Massachusetts GO 5.00% 1/1/2005 4,500 4,757
Massachusetts GO 5.00% 2/1/2006 7,820 8,487
Massachusetts GO 5.50% 2/1/2007 (1) 20,000 22,415
Massachusetts GO 5.25% 12/1/2007 10,000 11,261
Massachusetts GO 5.50% 2/1/2008 (1) 10,000 11,336
Massachusetts GO 5.25% 8/1/2008 (Prere.) 7,945 9,079
Massachusetts GO 5.375% 8/1/2008 10,000 11,333
Massachusetts GO 5.75% 10/1/2008 6,710 7,753
Massachusetts GO VRDO 1.50% 5/7/2003 21,800 21,800
Massachusetts GO VRDO 1.50% 5/7/2003 10,000 10,000
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2004 2,500 2,563
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2006 3,000 3,072
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.75% 7/1/2006 5,385 5,592
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.75% 7/1/2007 5,785 6,019
Massachusetts Health & Educ. Fac. Auth. Rev.
(Harvard Univ.) VRDO 1.20% 5/7/2003 1,000 1,000
Massachusetts Health & Educ. Fac. Auth. Rev.
(Univ. of Massachusetts) VRDO 1.35% 5/7/2003 LOC 3,100 3,100
Massachusetts Muni. Wholesale Electric Co.
Power System Rev. 5.50% 7/1/2008 (1) 15,400 17,499
Massachusetts Muni. Wholesale Electric Co.
Power System Rev. 5.00% 7/1/2009 (1) 14,110 15,701
Massachusetts Special Obligation Rev. 7.50% 6/1/2007 (3) 16,425 19,778
Massachusetts Water Resources Auth. Rev. VRDO 1.35% 5/7/2003 (3) 12,700 12,700
Massachusetts Water Resources Auth. Rev. VRDO 1.35% 5/7/2003 (3) 3,300 3,300
------------
284,863
------------
Michigan (4.1%)
Greater Detroit MI Resource Recovery Auth. 5.50% 12/13/2003 (2) 10,995 11,284
Greater Detroit MI Resource Recovery Auth. 5.50% 12/13/2003 (2) 7,000 7,184
38
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Greater Detroit MI Resource Recovery Auth. 5.50% 12/13/2004 (2) 12,990 13,828
Michigan Building Auth. Rev. 5.25% 10/15/2003 13,890 14,153
Michigan Building Auth. Rev. 6.50% 10/1/2004 14,500 15,565
Michigan Building Auth. Rev. 5.25% 10/15/2004 19,885 21,032
Michigan Building Auth. Rev. 5.50% 10/15/2007 3,855 4,395
Michigan Building Auth. Rev. 5.50% 10/15/2007 5,945 6,778
Michigan Building Auth. Rev. 5.50% 10/15/2008 6,790 7,825
Michigan Building Auth. Rev. 5.50% 10/15/2008 6,435 7,416
Michigan Comprehensive Transp. Rev. 5.00% 5/15/2008 (4) 1,230 1,374
Michigan GO 5.25% 12/1/2005 5,750 6,301
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.25% 10/1/2003 (ETM) 2,500 2,543
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.50% 10/1/2005 (ETM) 6,655 7,288
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.50% 10/1/2006 (ETM) 7,575 8,516
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.25% 10/1/2007 10,190 11,515
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.50% 10/1/2007 (ETM) 9,405 10,718
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.25% 10/1/2008 11,960 13,624
Michigan (New Center Dev. Inc.) COP 5.375% 9/1/2003 1,300 1,318
Michigan Public Power Agency Rev. (Belle River) 5.00% 1/1/2007 (1) 6,000 6,611
Michigan Strategic Fund Fac. Rev.
(Waste Management Inc.) PUT 4.20% 8/1/2004 10,000 10,152
Michigan Trunk Line Rev. 5.00% 10/1/2006 (4) 1,000 1,107
Michigan Trunk Line Rev. 5.00% 10/1/2007 (4) 1,000 1,118
Univ. of Michigan Hosp. Rev.
(Medical Service Plan) VRDO 1.40% 5/1/2003 10,605 10,605
Univ. of Michigan Hosp. Rev.
(Medical Service Plan) VRDO 1.40% 5/1/2003 6,000 6,000
Univ. of Michigan Hosp. Rev. VRDO 1.40% 5/1/2003 14,400 14,400
Univ. of Michigan Hosp. Rev. VRDO 1.40% 5/1/2003 4,100 4,100
Univ. of Michigan Univ. Rev. 5.00% 4/1/2008 2,705 3,017
Wayne Charter County MI Airport Rev. 5.25% 12/1/2006 (1) 6,620 7,313
Wayne Charter County MI Airport Rev.
(Detroit Metro. Wayne County) 5.25% 12/1/2008 (3) 7,065 7,876
------------
244,956
------------
Minnesota (1.2%)
Minneapolis MN Community Dev. Agency
Tax Increment Rev. 0.00% 9/1/2003 (1) 5,875 5,853
Minnesota GO 6.00% 8/1/2004 5,000 5,302
Minnesota GO 5.00% 8/1/2005 26,000 28,094
Minnesota GO 6.00% 8/1/2005 8,255 9,100
Minnesota GO 5.50% 6/1/2006 8,730 9,747
Minnesota Public Fac. Water PCR 5.50% 3/1/2009 4,500 5,161
Southern MN Muni. Power Agency Power
Supply System Rev. 5.00% 1/1/2009 (2) 5,000 5,581
------------
68,838
------------
Mississippi (0.5%)
Mississippi GO 7.00% 5/1/2004 4,555 4,819
Mississippi GO 5.00% 10/1/2006 10,160 11,248
Mississippi GO 5.75% 11/1/2007 5,000 5,755
Mississippi Home Corp. Single Family Rev. 5.10% 12/1/2022 5,645 5,939
------------
27,761
------------
39
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Missouri (0.5%)
Curators Univ. of Missouri System Fac. Rev. VRDO 1.35% 5/1/2003 4,700 4,700
Missouri Health & Educ. Fac. Auth. Rev.
(SSM Health Care) 5.25% 6/1/2006 10,230 11,152
Missouri Water Pollution Control GO 5.00% 10/1/2008 11,350 12,835
------------
28,687
------------
Nevada (2.7%)
Clark County NV GO 5.00% 11/1/2004 6,570 6,933
Clark County NV Passenger Fac. Rev.
(Las Vegas McCarran International Airport) 6.25% 7/1/2005 (1) 4,310 4,705
Clark County NV School Dist. GO 6.00% 6/15/2003 (3) 4,830 4,859
Clark County NV School Dist. GO 5.00% 6/15/2005 (1) 13,330 14,321
Clark County NV School Dist. GO 5.00% 6/15/2007 (1) 13,475 14,974
Clark County NV School Dist. GO 5.25% 6/15/2007 (4) 12,335 13,828
Clark County NV School Dist. GO 5.00% 6/1/2008 (3) 30,735 34,356
Clark County NV School Dist. GO 5.00% 6/15/2008 (1) 6,000 6,712
Clark County NV School Dist. GO 5.50% 6/15/2008 (4) 33,555 38,337
Clark County NV School Dist. GO 4.00% 6/1/2009 (3) 16,265 17,302
Nevada GO 5.00% 7/1/2004 5,030 5,253
------------
161,580
------------
New Hampshire (1.2%)
New Hampshire Business Finance Auth. PCR
(United Illuminating) PUT 4.55% 2/1/2004 36,000 36,478
New Hampshire Business Finance Auth. PCR
(United Illuminating) PUT 3.25% 12/3/2007 (2) 6,950 7,072
New Hampshire GO 5.00% 11/1/2008 6,000 6,763
New Hampshire Health & Educ. Fac. Auth. Rev.
(Dartmouth College) VRDO 1.30% 5/7/2003 21,875 21,875
------------
72,188
------------
New Jersey (3.1%)
New Jersey Econ. Dev. Auth. Rev.
(Waste Management New Jersey Inc. Project) PUT 4.00% 10/31/2004 5,000 5,080
New Jersey Environmental Infrastructure Trust 5.50% 9/1/2007 5,960 6,774
New Jersey Environmental Infrastructure Trust 5.50% 9/1/2008 6,280 7,201
New Jersey GO 5.00% 2/1/2007 4,500 4,963
New Jersey GO 5.00% 7/15/2007 10,000 11,130
New Jersey Transit Corp. Capital GAN 5.75% 2/1/2007 (2) 15,000 16,948
New Jersey Transp. Corp. COP 5.50% 9/15/2008 (2) 25,000 28,632
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2003 (2) 5,000 5,030
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2005 (2) 10,000 10,954
New Jersey Transp. Trust Fund Auth. Rev. 5.00% 12/15/2006 26,000 28,882
New Jersey Transp. Trust Fund Auth. Rev. 5.50% 6/15/2007 (ETM) 10,000 11,328
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2007 (2)(Prere.) 15,000 17,568
New Jersey Transp. Trust Fund Auth. Rev. 5.375% 12/15/2007 (4) 25,530 28,960
Passaic Valley NJ Sewer System Rev. 5.70% 12/1/2003 (2)(ETM) 2,475 2,542
------------
185,992
------------
New Mexico (1.0%)
Albuquerque NM Water & Sewer System Rev. 5.00% 7/1/2004 4,500 4,701
New Mexico Educ. Assistance Funding
Student Loan Rev. 6.60% 3/1/2005 4,885 5,070
New Mexico GO 5.00% 3/1/2007 12,130 13,426
New Mexico GO 5.00% 9/1/2007 9,515 10,636
New Mexico GO 5.00% 9/1/2008 5,000 5,629
New Mexico Highway Comm. Tax Rev. 5.00% 6/15/2005 4,740 5,096
40
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
New Mexico Highway Comm. Tax Rev. 5.00% 6/15/2005 (2) 3,000 3,226
New Mexico Highway Comm. Tax Rev. 5.00% 6/15/2007 (2) 2,500 2,783
New Mexico Highway Comm. Tax Rev. 5.25% 6/15/2007 7,540 8,462
------------
59,029
------------
New York (8.1%)
Long Island NY Power Auth. Electric System Rev. 5.00% 6/1/2006 10,000 10,759
Muni. Assistance Corp. for New York City NY 5.75% 7/1/2003 6,020 6,067
Muni. Assistance Corp. for New York City NY 6.00% 7/1/2004 9,500 10,034
Muni. Assistance Corp. for New York City NY 6.00% 7/1/2005 10,370 11,390
Muni. Assistance Corp. for New York City NY 6.00% 7/1/2007 9,700 11,173
New York City NY GO 8.00% 8/1/2003 7,500 7,620
New York City NY GO 7.50% 2/1/2004 5,250 5,364
New York City NY GO 5.25% 8/1/2008 16,450 18,047
New York City NY GO 5.25% 8/1/2008 7,670 8,415
New York City NY GO 5.25% 8/1/2008 (3) 10,000 11,253
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.00% 6/15/2005 25,000 26,847
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.25% 6/15/2006 30,000 33,125
New York City NY Transitional
Finance Auth. Rev. VRDO 1.30% 5/1/2003 15,200 15,200
New York City NY Transitional
Finance Auth. Rev. VRDO 1.40% 5/1/2003 13,800 13,800
New York State Dormitory Auth. Rev.
(Brookdale Hosp.) 5.50% 2/15/2004 6,040 6,238
New York State Dormitory Auth. Rev.
(Presbyterian Hosp.) 5.50% 2/15/2004 (2) 4,500 4,652
New York State Dormitory Auth. Rev.
(State Univ.) 5.25% 5/15/2003 6,255 6,265
New York State Dormitory Auth. Rev.
(State Univ.) 5.50% 5/15/2003 5,300 5,309
New York State Energy Research & Dev. Auth. PCR
(Central Hudson Gas & Electric Corp.) PUT 4.20% 12/1/2003 (2) 7,390 7,509
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.00% 6/15/2004 570 595
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.00% 6/15/2004 (ETM) 3,430 3,580
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.00% 6/15/2008 9,415 10,560
New York State Environmental Fac. PCR 5.50% 6/15/2003 (1) 3,000 3,016
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care) 4.40% 11/1/2004 (1) 8,280 8,658
New York State Power Auth. Rev. 5.50% 11/15/2007 13,565 15,463
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 6.00% 4/1/2004 (1) 11,195 11,694
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 6.25% 4/1/2004 (1) 10,185 10,660
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.25% 4/1/2007 (1) 4,000 4,459
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.25% 4/1/2008 (1) 3,730 4,198
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.25% 4/1/2008 (2) 13,220 14,880
New York State Thruway Auth. Rev.
(Service Contract) 5.00% 4/1/2007 21,370 23,605
New York State Thruway Auth. Rev.
(Service Contract) 5.00% 4/1/2008 20,480 22,786
New York State Urban Dev. Corp. Rev.
(Community Enhancement Fac.) 5.00% 4/1/2004 8,570 8,862
New York State Urban Dev. Corp. Rev.
(Correctional & Youth Fac.) 5.00% 1/1/2006 5,000 5,388
41
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
New York State Urban Dev. Corp. Rev.
(Correctional & Youth Fac.) 5.00% 1/1/2007 14,865 16,236
New York State Urban Dev. Corp. Rev.
(Personal Income Tax) 5.00% 12/15/2006 10,000 11,096
Port Auth. of New York & New Jersey Rev. 3.625% 4/15/2004 40,000 40,953
Suffolk County NY Water Auth. Rev. 5.25% 6/1/2004 (2)(Prere.) 10,000 10,449
Triborough Bridge & Tunnel Auth. New York Rev. 5.00% 11/15/2005 10,000 10,866
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2008 14,000 15,903
Triborough Bridge & Tunnel Auth.
New York Rev. VRDO 1.35% 5/7/2003 (4) 9,600 9,600
------------
482,574
------------
North Carolina (1.2%)
Mecklenburg County NC GO 4.00% 2/1/2009 10,500 11,180
North Carolina Eastern Muni. Power Agency Rev. 5.50% 1/1/2010 5,400 5,850
North Carolina Eastern Muni. Power Agency Rev. 5.50% 1/1/2011 8,000 8,632
North Carolina GO 5.00% 3/1/2008 5,000 5,590
North Carolina Muni. Power Agency Rev. 5.00% 1/1/2005 3,000 3,147
North Carolina Muni. Power Agency Rev. 8.00% 1/1/2006 (2) 18,000 20,906
Wake County NC Public Improvement GO 4.50% 3/1/2007 8,500 9,270
Wake County NC Public Improvement GO 5.00% 4/1/2007 8,000 8,884
------------
73,459
------------
Ohio (3.9%)
Cleveland OH Airport System Rev. 5.50% 1/1/2008 (4) 8,070 8,980
Cleveland OH Airport System Rev. VRDO 1.35% 5/7/2003 (4) 3,600 3,600
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.00% 10/1/2006 5,000 5,428
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.25% 10/1/2007 5,000 5,515
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.25% 10/1/2008 6,945 7,681
Ohio Air Quality Dev. Auth. (Ohio Edison) PUT 3.25% 2/1/2008 (2) 5,000 5,107
Ohio Air Quality Dev. Auth. PCR
(Cleveland Electric) PUT 4.60% 10/1/2003 4,500 4,527
Ohio GO 5.75% 6/15/2005 5,810 6,340
Ohio GO 0.00% 9/1/2007 5,000 4,476
Ohio GO 5.00% 3/15/2008 3,000 3,349
Ohio GO 5.00% 8/1/2008 14,800 16,631
Ohio Higher Educ. Capital Fac. Rev. 5.75% 5/1/2007 6,930 7,891
Ohio Higher Educ. Capital Fac. Rev. 5.50% 12/1/2007 24,500 28,005
Ohio Higher Educ. Capital Fac. Rev. 5.50% 12/1/2008 18,440 21,297
Ohio Highway Capital Improvements Rev. 5.50% 5/1/2006 22,500 25,023
Ohio Highway Capital Improvements Rev. 5.00% 5/1/2007 5,000 5,557
Ohio Housing Finance Agency Mortgage Rev. 5.625% 3/1/2032 4,455 4,804
Ohio Infrastructure Improvement GO 5.25% 8/1/2006 3,995 4,442
Ohio State Univ. General Receipts Rev. VRDO 1.36% 5/7/2003 4,800 4,800
Ohio Turnpike Comm. Turnpike Rev. 5.75% 2/15/2004 (Prere.) 14,250 15,054
Ohio Water Dev. Auth. PCR (Cleveland Electric) PUT4.60% 10/1/2003 12,255 12,326
Ohio Water Dev. Auth. PCR (Cleveland Electric) PUT5.58% 6/15/2004 21,700 22,089
Ohio Water Dev. Auth. PCR (Ohio Edison Co.) VRDO 1.30% 5/1/2003 LOC 2,500 2,500
Ohio Water Dev. Auth. Water PCR 5.25% 12/1/2009 3,625 4,145
------------
229,567
------------
Oklahoma (1.0%)
Grand River Dam Auth. Oklahoma Rev. 5.75% 6/1/2006 (4) 18,250 20,467
Oklahoma County OK GO 5.00% 2/1/2007 (3) 5,700 6,300
Tulsa County OK Ind. Auth. Rev. 5.00% 1/1/2006 (2) 6,450 7,015
Tulsa County OK Ind. Auth. Rev. 5.00% 7/1/2006 (2) 6,450 7,106
42
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Tulsa County OK Ind. Auth. Rev. 5.00% 1/1/2007 (2) 6,450 7,119
Tulsa OK Muni. Airport Transp. Rev.
(American Airlines) PUT 5.80% 12/1/2004 15,000 8,791
------------
56,798
------------
Oregon (0.6%)
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.50% 5/1/2005 7,000 7,487
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.50% 5/1/2007 6,000 6,631
Oregon GO VRDO 1.25% 5/7/2003 1,418 1,418
Oregon State Dept. Administrative Services 5.00% 9/1/2007 (4) 10,900 12,184
Port Auth. of Portland OR Airport Rev.
(Portland International Airport) 5.00% 7/1/2003 (3) 5,035 5,067
------------
32,787
------------
Pennsylvania (2.9%)
Beaver County PA IDA PCR (Ohio Edison) PUT 4.65% 6/1/2004 10,000 10,114
Beaver County PA IDA PCR (Toledo Edison) PUT 4.85% 6/1/2004 3,000 3,034
Berks County PA IDA (Lutheran Health Care) VRDO 1.35% 5/7/2003 (2) 9,600 9,600
Delaware County PA IDA PCR (PECO Energy Co.) PUT 5.20% 10/1/2004 11,000 11,442
Delaware River Joint Toll Bridge Comm.
Pennsylvania & New Jersey Rev. 5.00% 7/1/2008 4,365 4,824
Geisinger Health System Auth. of Pennsylvania Rev.
(Penn State Geisinger Health System) VRDO 1.28% 5/1/2003 3,000 3,000
Pennsylvania GO 5.25% 10/15/2004 13,850 14,651
Pennsylvania GO 5.00% 2/1/2007 7,260 8,017
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Carnegie Mellon Univ.) VRDO 1.35% 5/1/2003 3,500 3,500
Pennsylvania Intergovernmental
Cooperation Auth. Rev. 5.00% 6/15/2003 (3) 5,000 5,024
Pennsylvania State Univ. Rev. 5.00% 3/1/2008 8,025 8,941
Philadelphia PA GO 5.125% 5/15/2003 (3) 8,000 8,013
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Hosp. of Philadelphia) PUT 5.00% 7/1/2007 (1) 18,250 20,262
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Hosp. of Philadelphia) VRDO 1.35% 5/1/2003 1,300 1,300
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Hosp. of Philadelphia) VRDO 1.35% 5/1/2003 (1) 2,600 2,600
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Jefferson Health System) 5.50% 5/15/2003 (2) 1,425 1,428
Philadelphia PA IDA Rev.
(Philadelphia Airport System) 6.00% 6/15/2005 (3) 4,835 5,247
Philadelphia PA IDA Rev.
(Philadelphia Airport System) 5.50% 7/1/2005 (3) 3,775 4,067
Philadelphia PA IDA Rev.
(Philadelphia Airport System) 5.00% 7/1/2006 (3) 3,700 4,021
Philadelphia PA IDA Rev.
(Philadelphia Airport System) 5.25% 7/1/2007 (3) 3,905 4,326
Philadelphia PA IDA Rev.
(Philadelphia Airport System) 5.25% 7/1/2009 (3) 4,085 4,536
Philadelphia PA School Dist. GO 5.25% 3/1/2004 (1) 9,150 9,467
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003 (2) 5,000 5,000
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003 (2) 12,800 12,800
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003 (2) 800 800
Sayre PA Health Care Fac. Auth. Rev. (VHA of Pennsylvania,
Pooled Capital Asset Financial Program) VRDO 1.40% 5/7/2003 (2) 3,200 3,200
------------
169,214
------------
43
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico (0.3%)
Puerto Rico Highway & Transp. Auth. Rev. 5.00% 7/1/2007 15,000 16,370
Rhode Island (0.8%)
Rhode Island GO 6.00% 8/1/2003 (1) 9,665 9,784
Rhode Island GO 6.00% 8/1/2004 (1) 11,345 12,023
Rhode Island Housing & Mortgage Finance Corp. Rev.5.00% 10/1/2003 15,000 15,194
Rhode Island Housing & Mortgage Finance Corp. Rev.3.75% 8/11/2005 10,250 10,734
------------
47,735
------------
South Carolina (0.8%)
South Carolina GO 5.10% 2/1/2004 3,940 4,019
South Carolina GO 5.75% 1/1/2006 5,000 5,541
South Carolina GO 5.50% 4/1/2008 14,515 16,584
South Carolina Jobs Econ. Dev. Auth. Hosp.
Improvement Rev. (Palmetto Health Alliance) 7.00% 12/15/2004 3,245 3,392
South Carolina Jobs Econ. Dev. Auth. Hosp.
Improvement Rev. (Palmetto Health Alliance) 7.00% 12/15/2005 3,500 3,716
South Carolina Jobs Econ. Dev. Auth. Hosp.
Improvement Rev. (Palmetto Health Alliance) 6.70% 12/15/2006 2,640 2,809
South Carolina Jobs Econ. Dev. Auth. Hosp.
Improvement Rev. (Palmetto Health Alliance) 7.00% 12/15/2007 5,265 5,694
South Carolina Public Service Auth. Rev. 5.00% 1/1/2007 5,000 5,491
------------
47,246
------------
South Dakota (0.3%)
South Dakota Health & Educ. Fac. Auth. Rev.
(Sioux Valley Hosp. & Health System) PUT 4.85% 5/1/2006 15,000 15,868
Tennessee (1.1%)
Johnson City TN Health & Educ. Rev.
(Johnson City Medical Center) 5.00% 7/1/2005 (1)(ETM) 4,265 4,571
Metro. Govt. of Nashville & Davidson County TN GO 5.25% 10/15/2006 10,000 11,171
Metro. Govt. of Nashville & Davidson County TN GO 5.25% 10/15/2007 20,470 23,132
Metro. Govt. of Nashville & Davidson County TN GO 5.00% 10/15/2008 5,000 5,635
Metro. Govt. of Nashville & Davidson County TN
Health & Educ. Fac. (Vanderbilt Univ.) VRDO 1.32% 5/1/2003 16,800 16,800
Metro. Govt. of Nashville & Davidson County TN IDR
(Waste Management Team) PUT 4.10% 8/1/2004 3,500 3,551
------------
64,860
------------
Texas (13.1%)
Abilene TX Waterworks & Sewer Systems GO 2.80% 2/15/2006 2,500 2,502
Abilene TX Waterworks & Sewer Systems GO 3.10% 2/15/2007 2,500 2,503
Abilene TX Waterworks & Sewer Systems GO 3.41% 2/15/2008 2,500 2,504
Austin TX Combined Util. System Rev. 5.60% 5/15/2005 (1)(Prere.) 15,000 16,266
Austin TX Combined Util. System Rev. 5.375% 11/15/2005 6,495 6,642
Austin TX Independent School Dist. GO 5.625% 8/1/2006 (Prere.) 4,010 4,508
Austin TX Public Improvement GO 5.25% 9/1/2005 10,000 10,866
Austin TX Water & Wastewater System Rev. 5.25% 11/15/2005 (2) 10,000 10,929
Board of Regents of the Univ. of Texas System Rev.
Financing System 5.00% 8/15/2007 5,000 5,576
Brazos River Auth. Texas PCR
(Texas Util. Electric Co.) PUT 4.95% 4/1/2004 7,000 6,992
Brazos River Auth. Texas PCR
(Texas Util. Electric Co.) PUT 5.40% 5/1/2006 20,000 19,956
Brazos River Auth. Texas PCR
(Texas Util. Electric Co.) PUT 5.75% 11/1/2011 7,185 7,059
44
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Brazos River TX Harbor Navigation Dist. Brazoria County
Environmental (Dow Chemical Co. Project) PUT 4.75% 5/15/2007 11,050 11,336
Brazos River TX Harbor Navigation Dist. Brazoria County
Environmental (Dow Chemical Co. Project) PUT 5.20% 5/15/2008 9,000 9,314
Central Texas Higher Educ. Auth. 5.50% 12/1/2005 5,000 5,365
Colorado River TX Muni. Water Dist. Water Rev. 5.00% 1/1/2006 (2) 1,750 1,901
Colorado River TX Muni. Water Dist. Water Rev. 5.00% 1/1/2007 (2) 2,500 2,749
Colorado River TX Muni. Water Dist. Water Rev. 5.00% 1/1/2008 (2) 2,975 3,295
Cypress-Fairbanks TX Independent School Dist.
Unlimited Tax Schoolhouse PUT 4.50% 8/15/2006 10,000 10,794
Cypress-Fairbanks TX Independent School Dist.
Unlimited Tax Schoolhouse PUT 5.00% 8/15/2007 12,750 14,020
Dallas-Fort Worth TX International Airport Rev. 5.50% 11/1/2006 (3) 2,150 2,391
Dallas-Fort Worth TX International Airport Rev. 5.50% 11/1/2007 (3) 3,000 3,372
Dallas-Fort Worth TX Regional Airport Rev. 7.80% 11/1/2004 (3) 4,655 5,041
El Paso County TX Hosp. Dist. GO 0.00% 8/15/2003 (1) 2,260 2,252
El Paso TX GO 5.50% 8/15/2007 (4) 6,860 7,773
El Paso TX GO 5.50% 8/15/2008 (4) 2,465 2,819
Fort Worth TX GO 5.00% 3/1/2006 1,250 1,364
Fort Worth TX GO 5.00% 3/1/2007 2,500 2,763
Gulf Coast TX Waste Disposal Auth. PCR
(Amoco Oil Co.) VRDO 1.40% 5/1/2003 1,500 1,500
Gulf Coast TX Waste Disposal Auth. PCR
(Amoco Oil Co.) VRDO 1.40% 5/1/2003 4,500 4,500
Harris County TX GO 6.125% 8/15/2004 (Prere.) 6,375 6,906
Harris County TX GO 0.00% 8/15/2007 (3) 5,000 4,485
Harris County TX GO VRDO 1.35% 5/7/2003 12,600 12,600
Harris County TX Health Fac. Dev. Corp. Rev.
(Christus Health) 5.00% 7/1/2003 12,250 12,315
Harris County TX Health Fac. Dev. Corp. Rev.
(Methodist Hosp.) VRDO 1.35% 5/1/2003 69,200 69,200
Harris County TX Health Fac. Dev. Corp. Rev.
(St. Luke's Episcopal Hosp.) 5.25% 2/15/2007 3,000 3,289
Harris County TX Health Fac. Dev. Corp. Rev.
(St. Luke's Episcopal Hosp.) 5.25% 2/15/2008 2,500 2,755
Harris County TX Health Fac. Dev. Corp. Rev.
(St. Luke's Episcopal Hosp.) VRDO 1.35% 5/1/2003 9,330 9,330
Harris County TX Health Fac. Dev. Corp. Rev.
(Texas Medical Center) VRDO 1.35% 5/1/2003 (1) 11,700 11,700
Harris County TX Health Fac. Dev. Corp. Rev.
(Young Men's Christian Assoc. of Greater Houston)
VRDO 1.35% 5/1/2003 LOC 8,900 8,900
Harris County TX IDA (Shell Oil Co.) VRDO 1.40% 5/1/2003 6,300 6,300
Houston TX Airport System Rev. 6.00% 7/1/2008 (4) 6,385 7,286
Houston TX GO 5.00% 3/1/2004 16,000 16,514
Houston TX GO 5.50% 3/1/2004 8,620 8,933
Houston TX GO 5.00% 3/1/2005 (1) 4,500 4,792
Houston TX GO 5.30% 4/1/2005 (Prere.) 6,055 6,504
Houston TX GO 5.00% 3/1/2006 (1) 10,000 10,906
Houston TX Independent School Dist. GO 0.00% 2/15/2006 4,000 3,783
Houston TX Water & Sewer System Rev. 6.20% 12/1/2005 (1)(Prere.) 9,075 10,147
Houston TX Water & Sewer System Rev. 0.00% 12/1/2006 (2) 5,000 4,628
Houston TX Water & Sewer System Rev. 5.50% 12/1/2007 (4) 12,500 14,259
45
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Lewisville TX Independent School Dist. 6.55% 8/15/2003 (ETM) 5,000 5,079
Lower Colorado River Auth. TX Rev. 0.00% 1/1/2004 (1)(ETM) 3,000 2,977
Lower Colorado River Auth. TX Rev. 6.00% 5/15/2007 (4) 3,000 3,434
Lubbock TX Health Fac. Dev. Corp. Rev.
(St. Joseph's Health System) 5.00% 7/1/2003 6,505 6,543
Lubbock TX Health Fac. Dev. Corp. Rev.
(St. Joseph's Health System) 5.00% 7/1/2004 5,940 6,175
Lubbock TX Health Fac. Dev. Corp. Rev.
(St. Joseph's Health System) 5.00% 7/1/2005 (4) 7,610 8,142
Matagorda County TX Navigation Dist. PCR
(Central Power & Light) PUT 4.55% 11/1/2006 38,970 38,924
North East TX Independent School Dist. GO 6.50% 10/1/2005 4,075 4,556
North East TX Independent School Dist. GO 6.50% 10/1/2006 4,350 5,023
Plano TX GO 5.00% 9/1/2005 5,975 6,457
Plano TX GO 5.25% 9/1/2006 5,030 5,597
San Antonio TX Electric & Gas Rev. 5.00% 2/1/2008 14,000 15,526
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2008 1,045 1,170
San Antonio TX Electric & Gas Rev. 5.00% 2/1/2009 7,400 8,224
San Antonio TX GO 5.00% 2/1/2007 4,545 5,014
San Antonio TX GO 5.00% 2/1/2008 1,815 2,018
San Antonio TX Independent School Dist. GO 6.00% 8/15/2004 4,165 4,419
Southwest Texas Higher Educ. Auth. Inc.
(Southern Methodist Univ.) VRDO 1.35% 5/1/2003 LOC 14,500 14,500
Spring Branch TX Independent School Dist. GO 0.00% 2/1/2005 5,725 5,567
Spring Branch TX Independent School Dist. GO 0.00% 2/1/2006 5,710 5,405
Texas A & M Univ. Rev. Financing System 6.00% 5/15/2004 7,665 8,048
Texas A & M Univ. Rev. Financing System 5.00% 5/15/2007 4,925 5,466
Texas Dept. of Housing and Community
Affairs Single Mortgage Rev. 5.35% 3/1/2033 (1) 10,785 11,719
Texas GO Public Finance Auth. 5.00% 8/1/2004 4,735 4,780
Texas GO Public Finance Auth. 5.00% 8/1/2005 3,405 3,437
Texas GO Public Finance Auth. 5.00% 10/1/2005 22,500 24,375
Texas GO Public Finance Auth. 5.50% 10/1/2006 4,000 4,494
Texas GO Public Finance Auth. 5.25% 10/1/2007 15,240 17,194
Texas Muni. Power Agency Rev. 5.80% 9/1/2003 (1) 6,750 6,855
Texas Muni. Power Agency Rev. 5.25% 9/1/2004 (1) 5,300 5,424
Texas Public Building Auth. Building
Rev. Capital Appreciation 0.00% 8/1/2007 (1)(ETM) 10,000 9,028
Texas TOB VRDO 1.35% 5/7/2003 * 25,000 25,000
Texas Turnpike Auth. Central Texas
Turnpike System Rev. 5.00% 6/1/2007 7,675 8,493
Texas Turnpike Auth. Central Texas
Turnpike System Rev. 5.00% 6/1/2008 36,300 40,394
Trinity River Auth. Texas Regional
Wastewater Rev. 5.00% 8/1/2005 (1) 7,265 7,843
West Side Calhoun County TX Dev.
(British Petroleum) VRDO 1.35% 5/1/2003 14,000 14,000
------------
775,684
------------
Utah (0.7%)
Intermountain Power Agency Utah Power Supply Rev. 5.00% 7/1/2007 (4) 5,000 5,559
Salt Lake County UT GO 5.50% 12/15/2007 5,870 6,724
Utah County UT Hospital Rev.
(Intermountain Health Care Health Services) 5.00% 5/15/2005 2,000 2,125
Utah County UT Hospital Rev.
(Intermountain Health Care Health Services) 5.00% 5/15/2006 2,000 2,165
Utah GO 5.50% 7/1/2003 18,475 18,612
Utah GO 5.50% 7/1/2003 (ETM) 1,525 1,536
46
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Utah Muni. Finance Coop. Local Govt. Rev. 0.00% 3/1/2011 (4) 6,000 4,425
------------
41,146
------------
Virginia (2.3%)
Loudoun County VA GO 5.25% 11/1/2008 4,410 5,038
Loudoun County VA IDA Rev.
(Howard Hughes Medical Institute) VRDO 1.35% 5/1/2003 12,800 12,800
Metro. Washington Airports Auth.
Airport System Rev. 5.50% 10/1/2006 4,745 5,222
Metro. Washington Airports Auth.
Airport System Rev. 5.50% 10/1/2010 (1) 6,145 6,874
Virginia College Building Auth. Educ. Fac. Rev. 4.75% 2/1/2004 11,660 11,981
Virginia College Building Auth. Educ. Fac. Rev. 5.00% 2/1/2005 7,345 7,809
Virginia Commonwealth Transp. Board
Federal Highway Rev. 5.50% 10/1/2006 18,500 20,819
Virginia Commonwealth Transp. Board
Federal Highway Rev. 5.75% 10/1/2007 8,150 9,380
Virginia Commonwealth Transp. Board
Federal Highway Rev. 5.00% 10/1/2008 15,160 17,102
Virginia Commonwealth Transp. Board Transp. Rev.
(U.S. Route 58 Corridor) 5.25% 5/15/2003 4,650 4,658
Virginia Port Auth. Rev. 4.75% 7/1/2004 8,210 8,517
Virginia Public School Auth. Rev. 5.25% 8/1/2007 5,185 5,841
Virginia Public School Auth. Rev. 5.25% 8/1/2008 6,950 7,900
Virginia Public School Educ. Technology Notes 5.00% 4/15/2006 10,965 12,020
------------
135,961
------------
Washington (2.5%)
Energy Northwest Washington Electric Refunding Rev.
(Project No. 1) 5.50% 7/1/2003 6,405 6,453
Energy Northwest Washington Electric Refunding Rev.
(Project No. 1) 5.50% 7/1/2004 (4) 5,600 5,878
King & Snohomish Counties WA School Dist. No. 417
Northshore GO 6.30% 6/1/2004 (1)(Prere.) 4,100 4,329
King County WA GO 6.25% 1/1/2004 (Prere.) 10,000 10,542
King County WA GO 5.00% 6/1/2007 10,000 11,095
King County WA School Dist. GO 6.30% 12/1/2003 5,375 5,451
King County WA Sewer Rev. 5.00% 1/1/2007 (4) 5,000 5,504
King County WA Sewer Rev. 5.25% 1/1/2008 (4) 5,000 5,602
Port of Seattle WA Passenger Fac. Charge Rev. 5.00% 12/1/2003 (2) 7,110 7,264
Port of Seattle WA Passenger Fac. Charge Rev. 5.00% 12/1/2004 (2) 7,465 7,860
Port of Seattle WA Rev. 5.25% 9/1/2007 (3) 3,000 3,327
Port of Seattle WA Rev. 5.50% 9/1/2008 (3) 3,815 4,291
Seattle WA GO 5.00% 7/1/2007 5,315 5,911
Seattle WA Water System Rev. 4.50% 9/1/2007 (1) 6,625 7,251
Spokane WA Regional Solid Waste
Management System Rev. 6.25% 1/1/2004 (2) 8,440 8,718
Spokane WA Regional Solid Waste
Management System Rev. 6.25% 1/1/2005 (2) 8,975 9,632
Spokane WA Regional Solid Waste
Management System Rev. 6.50% 1/1/2007 (2) 8,650 9,856
Washington GO 5.625% 5/1/2004 (Prere.) 85 89
Washington GO 5.625% 5/1/2004 (Prere.) 4,915 5,136
Washington GO 6.00% 7/1/2005 6,500 7,123
Washington GO 6.25% 9/1/2007 4,285 4,991
Washington GO 5.50% 9/1/2008 (4) 4,650 5,333
Washington GO 6.25% 9/1/2008 3,725 4,402
Washington (Motor Vehicle Fuel Tax) GO 6.50% 9/1/2003 4,635 4,718
------------
150,756
------------
47
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
LIMITED-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
West Virginia (0.3%)
West Virginia GO 0.00% 11/1/2005 (3) 3,850 3,685
West Virginia GO 0.00% 11/1/2006 (3) 6,850 6,366
West Virginia State Road GO 5.50% 6/1/2007 (4) 5,000 5,651
West Virginia State Road GO 5.50% 6/1/2008 (4) 3,000 3,425
------------
19,127
------------
Wisconsin (0.7%)
Milwaukee WI GO 6.00% 2/1/2006 6,675 7,444
Milwaukee WI Metro. Sewer Dist. GO 6.25% 10/1/2004 10,000 10,698
Wisconsin GO 7.00% 5/1/2004 6,145 6,500
Wisconsin GO 6.125% 11/1/2006 7,210 8,260
Wisconsin Petroleum Inspection Fee Rev. 6.00% 7/1/2004 10,500 11,056
------------
43,958
------------
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $5,699,503) 5,888,665
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.7%)
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets-Note B 88,918
Liabilities (46,768)
------------
42,150
------------
NET ASSETS (100%) $5,930,815
==================================================================================================================================
(Y)See Note A in Notes to Financial Statements.
*Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be sold in transactions exempt
from registration, normally to qualified institutional buyers. At April 30, 2003, the value of this security was $25,000,000,
representing 0.4% of net assets.
For key to abbreviations and other references, see page 108.
- --------------------------------------------------------------------------------
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
Amount
(000)
- --------------------------------------------------------------------------------
Paid-in Capital $5,775,289
Undistributed Net Investment Income --
Accumulated Net Realized Losses (33,636)
Unrealized Appreciation 189,162
- --------------------------------------------------------------------------------
NET ASSETS $5,930,815
================================================================================
Investor Shares-Net Assets
Applicable to 269,899,060 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $2,997,895
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-INVESTOR SHARES $11.11
================================================================================
Admiral Shares-Net Assets
Applicable to 264,049,444 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $2,932,920
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-ADMIRAL SHARES $11.11
- --------------------------------------------------------------------------------
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
48
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (98.8%)
- ----------------------------------------------------------------------------------------------------------------------------------
ALABAMA (0.4%)
Alabama GO 5.25% 6/1/2012 5,105 5,722
Alabama GO 5.25% 6/1/2013 5,105 5,673
Alabama GO 5.25% 6/1/2014 5,155 5,713
Alabama GO 5.25% 6/1/2015 3,455 3,808
Huntsville AL Health Care Fac. Auth. PUT 4.65% 6/1/2005 (1) 20,820 21,903
------------
42,819
------------
ALASKA (0.5%)
Alaska Housing Finance Corp.
Governmental Purpose VRDO 1.34% 5/7/2003 (1) 29,690 29,690
Alaska Housing Finance Corp.
Governmental Purpose VRDO 1.45% 5/7/2003 (1) 5,500 5,500
Anchorage AK Electric Rev. 8.00% 12/1/2011 (1) 5,395 7,178
Matanuska-Susitna Borough AK GO 5.50% 3/1/2012 (3) 6,000 6,884
North Slope Borough AK GO 0.00% 6/30/2010 (1) 8,000 6,156
------------
55,408
------------
ARIZONA (1.8%)
Arizona GO 7.375% 7/1/2013 4,500 5,894
Arizona School Fac. Board Rev.
(State School Improvement) 5.50% 7/1/2014 11,030 12,501
Arizona School Fac. Board Rev.
(State School Improvement) 5.50% 7/1/2015 5,000 5,644
Arizona School Fac. Board Rev.
(State School Improvement) 5.50% 7/1/2016 5,500 6,180
Arizona Transp. Board Excise Tax Rev. 6.00% 7/1/2005 (2) 7,515 8,242
Arizona Transp. Board Excise Tax Rev. 6.00% 7/1/2005 (2) 11,370 12,471
Arizona Transp. Board Highway Rev. 6.00% 7/1/2010 25,000 29,522
Arizona Transp. Board Highway Rev. 5.25% 7/1/2018 4,000 4,377
Arizona Transp. Board Highway Rev. 5.25% 7/1/2019 4,110 4,465
Maricopa County AZ COP 6.00% 6/1/2004 2,775 2,813
Maricopa County AZ Rev.
(Samaritan Health Service) 7.15% 12/1/2005 (1)(ETM) 3,900 4,248
Maricopa County AZ Unified School Dist. 0.00% 1/1/2007 (3) 6,000 5,501
Mesa AZ GO 5.70% 7/1/2003 (1)(Prere.) 5,600 5,727
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.25% 7/1/2009 (4) 4,795 5,358
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.25% 7/1/2010 (4) 2,500 2,800
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.25% 7/1/2011 (4) 3,000 3,318
Phoenix AZ Civic Improvement Corp.
Wastewater System Rev. 5.375% 7/1/2012 (3) 9,645 10,876
Phoenix AZ Civic Improvement Corp.
Wastewater System Rev. 5.375% 7/1/2013 (3) 5,000 5,597
Phoenix AZ Civic Improvement Corp.
Wastewater System Rev. 5.375% 7/1/2014 (3) 6,820 7,609
Phoenix AZ Civic Improvement Corp.
Water System Rev. 5.95% 7/1/2006 (Prere.) 6,600 7,464
Phoenix AZ Civic Improvement Corp.
Water System Rev. 5.50% 7/1/2014 (3) 4,215 4,807
Phoenix AZ GO 7.50% 7/1/2008 5,000 6,201
Phoenix AZ Highway Rev. GO 9.25% 7/1/2007 4,000 5,111
Tucson & Pima County AZ IDA Draw Down-
Single Family Mortgage Rev. FR 1.32% 5/25/2003 19,837 19,837
Tucson AZ Unified School Dist. 7.50% 7/1/2006 (3) 8,840 10,411
Tucson AZ Unified School Dist. 7.50% 7/1/2007 (3) 8,000 9,692
Yavapai County AZ IDA, Solid Waste Disposal
Project Rev. (Waste Management Inc.) 4.625% 6/1/2027 13,500 13,891
------------
220,557
------------
CALIFORNIA (9.7%)
Access To Loans For Learning Student Loan Corp.
California Rev. Student Loan Program VRDO 1.35% 5/7/2003 LOC 6,500 6,500
==================================================================================================================================
49
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Anaheim CA Public Finance Auth. Lease Rev. 6.00% 9/1/2009 (4) 2,000 2,369
California Dept. of Veteran Affairs Rev. 5.45% 12/1/2019 (2) 8,865 9,640
California Dept. of Water Resources Water System Rev.
(Central Valley) 8.25% 12/1/2003 5,000 5,206
California GO 5.70% 8/1/2004 (Prere.) 16,500 17,769
California GO 5.75% 8/1/2004 (3)(Prere.) 14,145 15,242
California GO 7.10% 6/1/2005 12,495 13,830
California GO 7.00% 10/1/2005 (1) 5,000 5,656
California GO 11.00% 3/1/2006 13,185 16,319
California GO 5.70% 8/1/2007 1,000 1,066
California GO 5.75% 8/1/2008 (3) 855 919
California GO 6.30% 9/1/2010 4,000 4,682
California GO 6.00% 4/1/2018 11,980 14,161
California GO 6.00% 4/1/2019 2,660 3,140
California Health Fac. Finance Auth. Rev.
(Catholic Healthcare West) 6.25% 7/1/2004 (1) 4,515 4,775
California Health Fac. Finance Auth. Rev.
(Catholic Healthcare West) 6.25% 7/1/2005 (1) 5,875 6,476
California Health Fac. Finance Auth. Rev.
(Catholic Healthcare West) 6.25% 7/1/2006 (1) 5,000 5,689
California Health Fac. Finance Auth. Rev.
(Catholic Healthcare West) 6.25% 7/1/2007 (1) 5,290 6,119
California Health Fac. Finance Auth. Rev.
(Sisters of Providence) 6.00% 10/1/2003 4,095 4,174
California Health Fac. Finance Auth. Rev.
(Sisters of Providence) 6.00% 10/1/2004 4,340 4,616
California PCR Financing Auth. Rev.
(Southern California Edison Co.) PUT 7.00% 2/28/2008 31,000 31,518
California PCR Financing Auth. Rev.
(Southern California Edison Co.) PUT 7.00% 2/28/2008 10,000 10,167
California Public Works Board Lease Rev.
(Dept. of Corrections) 6.00% 1/1/2008 (2) 14,865 16,797
California Public Works Board Lease Rev.
(Dept. of Corrections) 5.375% 11/1/2011 6,500 6,942
California Public Works Board Lease Rev.
(Dept. of Corrections) 5.375% 11/1/2012 7,990 8,504
California Public Works Board Lease Rev.
(Dept. of Corrections) 5.50% 1/1/2015 (2) 5,000 5,521
California Public Works Board Lease Rev.
(State Archives) 5.375% 12/1/2009 4,555 4,955
California Public Works Board Lease Rev.
(State Archives) 5.375% 12/1/2010 6,635 7,140
California Public Works Board Lease Rev.
(State Archives) 5.375% 12/1/2012 7,895 8,410
California Public Works Board Lease Rev.
(Univ. of California) 6.10% 12/1/2005 (2) 6,515 6,672
California RAN FR 1.32% 5/7/2003 40,000 39,940
California RAN FR 1.32% 5/7/2003 74,000 73,889
California RAN FR 1.37% 5/7/2003 80,000 79,720
California State Dept. Water Resources
Power Supply Rev. 6.00% 5/1/2013 20,000 23,337
California State Dept. Water Resources
Power Supply Rev. 5.50% 5/1/2015 (2) 37,000 41,870
California State Dept. Water Resources
Power Supply Rev. 6.00% 5/1/2015 15,000 17,281
California State Dept. Water Resources
Power Supply Rev. 5.50% 5/1/2016 (2) 60,000 67,702
California State Dept. Water Resources
Power Supply Rev. 5.375% 5/1/2018 (2) 30,000 33,135
California Statewide Community Dev. Auth. Rev.
(Catholic Healthcare West) 6.00% 7/1/2009 3,935 4,402
==================================================================================================================================
50
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
California Statewide Community Dev. Auth. Rev.
(Irvine Apartments) PUT 4.90% 5/15/2008 73,000 78,218
California Statewide Community Dev. Auth. Rev.
(Irvine Apartments) PUT 5.10% 5/17/2010 8,750 9,268
California Statewide Community Dev. Auth. Rev.
(Kaiser Permanente) PUT 4.70% 5/31/2009 55,000 58,423
Chula Vista CA IDR (San Diego Gas & Electric) 7.00% 12/1/2027 45,000 49,947
Contra Costa CA (Merrithew Memorial Hosp.) COP 5.50% 11/1/2011 (1) 5,660 6,397
East Bay CA Muni. Util. Dist. Water System Rev. 5.25% 6/1/2017 (1) 8,110 8,857
Fresno CA Sewer Rev. 6.25% 9/1/2014 (2) 12,000 14,687
Long Beach CA Harbor Rev. 5.75% 5/15/2013 7,630 8,487
Los Angeles CA Dept. of Water & Power Rev. 5.25% 7/1/2015 20,000 22,064
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2011 (2) 5,865 6,573
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2012 (2) 6,190 6,949
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2013 (2) 6,535 7,275
Los Angeles CA Unified School Dist. GO 5.25% 7/1/2020 (4) 10,105 11,001
Los Angeles CA Unified School Dist. GO 5.00% 7/1/2021 (3) 17,540 18,542
Los Angeles CA Unified School Dist. GO 5.00% 7/1/2022 (3) 7,500 7,884
Los Angeles County CA Transp.
Comm. Sales Tax Rev. 6.50% 7/1/2010 (4) 51,070 61,824
Metro. Water Dist. of Southern
California Rev. VRDO 1.35% 5/1/2003 300 300
Northern California Power Agency
(Hydroelectric Project) 6.10% 7/1/2005 (1) 5,575 6,137
Northern California Power Agency
(Hydroelectric Project) 6.20% 7/1/2006 (1) 5,940 6,763
Northern California Power Agency
(Hydroelectric Project) 6.25% 7/1/2007 (1) 6,685 7,775
Orange County CA Local Transp.
Auth. Sales Tax Rev. 5.50% 2/15/2009 (1) 5,000 5,722
Orange County CA Local Transp.
Auth. Sales Tax Rev. 5.50% 2/15/2010 (1) 10,035 11,478
Port of Oakland CA Rev. 5.25% 11/1/2006 (3) 6,700 7,427
San Bernardino County CA Medical Center COP 5.50% 8/1/2004 (1) 4,100 4,317
San Bernardino County CA Medical Center COP 5.50% 8/1/2005 (1) 10,000 10,916
San Bernardino County CA Medical Center COP 7.00% 8/1/2008 (1) 9,045 11,041
San Bernardino County CA Medical Center COP 7.00% 8/1/2009 (1) 9,705 12,001
San Bernardino County CA Medical Center COP 7.00% 8/1/2010 (1) 10,525 13,109
San Diego County CA Regional Transp.
Auth. Sales Tax Rev. 7.00% 4/1/2006 635 635
San Francisco CA City & County
International Airport Rev. 5.50% 5/1/2011 (1) 4,215 4,698
San Francisco CA City & County
International Airport Rev. 5.50% 5/1/2012 (1) 4,930 5,450
San Francisco CA City & County
International Airport Rev. 5.50% 5/1/2013 (1) 5,115 5,611
San Francisco CA City & County
International Airport Rev. 5.50% 5/1/2014 (1) 5,565 6,088
San Francisco CA City & County
International Airport Rev. 5.50% 5/1/2015 (1) 5,880 6,403
San Francisco CA City & County
International Airport Rev. 5.50% 5/1/2016 (1) 6,215 6,733
South Orange County CA Public Finance Auth. Rev. 7.00% 9/1/2006 (1) 500 586
Southern California Public Power Auth. Rev.
(Palo Verde Project) VRDO 1.30% 5/7/2003 (2) 4,470 4,470
Southern California Public Power Auth. Rev.
(Transmission Project) VRDO 1.35% 5/7/2003 (4) 1,200 1,200
Univ. of California Rev.
(Multiple Purpose Project) 10.00% 9/1/2003 (2) 3,790 3,901
Univ. of California Rev.
(Multiple Purpose Project) 9.25% 9/1/2005 (1) 5,000 5,891
------------
1,161,298
------------
COLORADO (3.8%)
Colorado Dept. of Transp. Rev. 6.00% 6/15/2010 (2)(Prere.) 18,935 22,527
Colorado Dept. of Transp. Rev. 6.00% 6/15/2010 (2)(Prere.) 10,000 11,897
Colorado Dept. of Transp. Rev. 6.00% 6/15/2010 (2)(Prere.) 10,000 11,897
Colorado Dept. of Transp. Rev. 6.00% 6/15/2010 (2)(Prere.) 20,000 23,794
Colorado Dept. of Transp. Rev. 5.50% 6/15/2011 (1)(Prere.) 20,795 24,191
Colorado Dept. of Transp. Rev. 5.50% 6/15/2011 (1)(Prere.) 6,185 7,195
==================================================================================================================================
51
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Colorado Dept. of Transp. Rev. 5.50% 6/15/2012 (1) 11,780 13,567
Colorado Dept. of Transp. Rev. 5.50% 6/15/2013 (1) 14,500 16,740
Colorado Dept. of Transp. Rev. 5.50% 6/15/2014 (1) * 25,185 28,548
Colorado Dept. of Transp. Rev. 5.375% 6/15/2016 8,500 9,556
Colorado Educ. & Cultural Fac. Auth.
Nature Conservancy Project VRDO 1.35% 5/7/2003 25,053 25,053
Colorado Health Fac. Auth. Rev.
(Poudre Valley Health) 6.00% 12/1/2013 (4) 5,185 5,909
Colorado Health Fac. Auth. Rev.
(Poudre Valley Health) 6.00% 12/1/2014 (4) 5,500 6,270
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Health System Inc.) 8.50% 5/15/2004 (1) 7,510 7,762
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Health System Inc.) 5.25% 12/1/2009 (1) 2,965 3,280
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Health System Inc.) 5.25% 12/1/2010 (1) 1,740 1,894
Colorado Health Fac. Auth. Rev.
(Sisters of Charity Health System Inc.) 5.25% 12/1/2011 (1) 3,415 3,687
Colorado Springs CO Util. System Rev. 5.375% 11/15/2012 12,620 14,277
Colorado Springs CO Util. System Rev. 5.375% 11/15/2014 12,745 14,259
Colorado Springs CO Util. System Rev. VRDO 1.30% 5/7/2003 7,500 7,500
Denver CO City & County Airport Rev. 5.50% 11/15/2010 (3) 10,000 11,164
Denver CO City & County Airport Rev. 5.50% 11/15/2011 (3) 15,070 16,755
Denver CO City & County Airport Rev. 6.00% 11/15/2011 (2) 14,895 16,875
Denver CO City & County Airport Rev. 5.625% 11/15/2012 (3) 6,000 6,669
Denver CO City & County Airport Rev. 6.00% 11/15/2012 (2) 10,460 11,791
Denver CO City & County Airport Rev. 5.50% 11/15/2013 (3) 15,085 16,506
Denver CO City & County Airport Rev. 5.50% 11/15/2014 (3) 35,820 39,106
Denver CO City & County Airport Rev. 5.50% 11/15/2015 (3) 23,520 25,554
Denver CO City & County Airport Rev. 5.50% 11/15/2016 (3) 10,000 10,805
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2011 (1) 8,000 5,774
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2011 (1) 6,600 4,764
E-470 Public Highway Auth. Colorado Rev. 5.00% 9/1/2011 (1) 7,250 7,959
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2012 (1) 8,100 5,454
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2017 (1) 24,490 12,529
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2019 (1) 5,000 2,246
Northern Colorado Water Conservation Dist. Rev. 6.35% 12/1/2007 (2) 4,155 4,820
------------
458,574
------------
CONNECTICUT (2.2%)
Connecticut GO 6.00% 5/15/2003 5,000 5,010
Connecticut GO 5.30% 11/15/2003 (Prere.) 250 261
Connecticut GO 5.40% 11/15/2003 (Prere.) 135 141
Connecticut GO 6.00% 10/1/2004 (ETM) 175 187
Connecticut GO 5.30% 11/15/2006 16,690 17,393
Connecticut GO 5.00% 4/15/2007 12,110 13,406
Connecticut GO 5.40% 11/15/2007 10,375 10,817
Connecticut GO 5.00% 4/15/2008 4,510 5,028
Connecticut GO 5.25% 6/15/2008 7,000 7,910
Connecticut GO 5.00% 4/15/2009 6,810 7,609
Connecticut GO 5.375% 6/15/2013 5,000 5,594
Connecticut GO 5.125% 11/15/2013 5,675 6,273
Connecticut GO 5.125% 11/15/2013 19,000 21,001
Connecticut GO 5.375% 12/15/2013 6,165 6,955
Connecticut GO 5.50% 12/15/2013 4,705 5,453
Connecticut GO 5.125% 11/15/2014 25,375 27,912
==================================================================================================================================
52
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Connecticut GO 5.50% 12/15/2014 8,700 10,168
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 5.125% 9/1/2005 7,000 7,231
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 5.25% 9/1/2006 42,550 43,970
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 7.125% 6/1/2010 12,000 14,844
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 5.375% 10/1/2013 (4) 20,000 22,581
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) VRDO 1.35% 5/7/2003 (2) 18,000 18,000
------------
257,744
------------
DELAWARE
Univ. of Delaware Rev. VRDO 1.35% 5/1/2003 400 400
------------
DISTRICT OF COLUMBIA (1.4%)
District of Columbia GO 5.75% 6/1/2003 (2)(Prere.) 190 195
District of Columbia GO 5.75% 6/1/2003 (2)(ETM) 2,900 2,968
District of Columbia GO 5.50% 6/1/2004 (4)(ETM) 3,280 3,434
District of Columbia GO 5.50% 6/1/2004 (4) 9,565 10,009
District of Columbia GO 5.80% 6/1/2004 (3)(ETM) 955 1,003
District of Columbia GO 6.00% 6/1/2004 (1)(Prere.) 8,890 9,532
District of Columbia GO 6.10% 6/1/2004 (1)(Prere.) 7,000 7,513
District of Columbia GO 5.50% 6/1/2006 (4) 6,205 6,894
District of Columbia GO 5.50% 6/1/2007 (4)(ETM) 1,265 1,432
District of Columbia GO 5.50% 6/1/2007 (4) 2,195 2,474
District of Columbia GO 5.75% 6/1/2007 (2) 1,960 2,007
District of Columbia GO 5.20% 6/1/2008 (2) 4,390 4,911
District of Columbia GO 5.25% 6/1/2008 (1)(ETM) 2,145 2,429
District of Columbia GO 5.25% 6/1/2008 (1) 7,855 8,846
District of Columbia GO 5.50% 6/1/2008 (4)(ETM) 1,275 1,459
District of Columbia GO 5.50% 6/1/2008 (4) 3,725 4,239
District of Columbia GO 5.50% 6/1/2008 (2) 10,000 11,380
District of Columbia GO 5.30% 6/1/2009 (2) 4,600 5,168
District of Columbia GO 5.50% 6/1/2009 (4)(Prere.) 1,890 2,194
District of Columbia GO 5.50% 6/1/2010 (2) 10,490 11,971
District of Columbia GO 5.75% 6/1/2010 (1)(ETM) 5,000 5,846
District of Columbia GO 5.75% 6/1/2010 (1) 15,465 17,892
District of Columbia GO 5.375% 6/1/2011 (2) 5,255 5,834
District of Columbia GO 6.00% 6/1/2011 (1) 6,550 7,690
District of Columbia GO 5.50% 6/1/2012 (4) 4,630 5,184
District of Columbia GO 5.50% 6/1/2013 (2) 5,750 6,424
District of Columbia Hosp. Rev.
(Medlantic Health Group) 6.00% 8/15/2007 (1)(ETM) 2,985 3,442
District of Columbia Hosp. Rev.
(Medlantic Health Group) 6.00% 8/15/2008 (1)(ETM) 3,160 3,690
District of Columbia Hosp. Rev.
(Medlantic Health Group) 6.00% 8/15/2010 (1)(ETM) 2,555 3,019
District of Columbia Hosp. Rev.
(Medlantic Health Group) 6.00% 8/15/2012 (1)(ETM) 2,995 3,574
------------
162,653
------------
FLORIDA (3.9%)
Broward County FL Resource Recovery Rev.
(Wheelabrator Series A) 5.375% 12/1/2009 15,885 17,456
Broward County FL Resource Recovery Rev.
(Wheelabrator Series A) 5.375% 12/1/2010 5,000 5,402
==================================================================================================================================
53
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Broward County FL Resource Recovery Rev.
(Wheelabrator Series A) 4.50% 12/1/2011 5,000 5,103
Broward County FL Resource Recovery Rev.
(Wheelabrator-South) 5.375% 12/1/2009 2,000 2,198
Broward County FL Resource Recovery Rev.
(Wheelabrator-South) 5.375% 12/1/2010 21,330 23,047
Broward County FL School Board COP 5.75% 7/1/2003 (2) 4,870 4,908
Broward County FL School Board COP 5.75% 7/1/2003 (2) 4,130 4,162
Broward County FL School Board COP 5.75% 7/1/2004 (2) 5,150 5,426
Broward County FL School Board COP 5.75% 7/1/2004 (2) 4,365 4,599
Broward County FL School Board COP 5.75% 7/1/2005 (2) 5,445 5,947
Broward County FL School Board COP 5.25% 7/1/2020 (1) 4,155 4,506
Dade County FL School Board COP 5.375% 5/1/2006 (2)(Prere.) 4,775 5,337
Dade County FL Water & Sewer System Rev. VRDO 1.35% 5/7/2003 (3) 3,950 3,950
Florida Board of Educ. 5.375% 6/1/2013 6,820 7,786
Florida Board of Educ. Capital Outlay 6.50% 6/1/2005 5,000 5,517
Florida Board of Educ. Capital Outlay 6.00% 6/1/2006 6,605 7,450
Florida Board of Educ. Capital Outlay 5.00% 6/1/2008 5,000 5,604
Florida Board of Educ. Capital Outlay 5.25% 1/1/2010 15,775 17,552
Florida Board of Educ. Capital Outlay 6.00% 6/1/2011 4,530 5,315
Florida Board of Educ. Capital Outlay 5.25% 6/1/2013 3,845 4,374
Florida Board of Educ. Public Educ. 5.25% 6/1/2013 (4) 12,825 14,519
Florida Board of Educ. Rev. (Lottery Rev.) 5.25% 7/1/2010 (3) 5,800 6,497
Florida Board of Educ. Rev. (Lottery Rev.) 5.25% 7/1/2011 (3) 10,840 12,071
Florida Board of Educ. Rev. (Lottery Rev.) 5.25% 7/1/2012 (3) 11,410 12,708
Florida Board of Educ. Rev. (Lottery Rev.) 5.25% 7/1/2013 (3) 7,150 8,101
Florida Board of Educ. Rev. (Lottery Rev.) 5.50% 7/1/2013 (2) 10,875 12,386
Florida Board of Educ. Rev. (Lottery Rev.) 5.50% 7/1/2013 (3) 7,860 9,057
Florida Board of Educ. Rev. (Lottery Rev.) 5.25% 7/1/2014 (3) 3,700 4,181
Florida Board of Educ. Rev. (Lottery Rev.) 5.375% 7/1/2015 (3) 5,000 5,575
Florida Board of Educ. Rev. (Lottery Rev.) 5.375% 7/1/2017 (3) 6,000 6,714
Florida Dept. of Environmental Protection &
Preservation Rev. 5.00% 7/1/2009 (4) 18,580 20,875
Florida Dept. of Environmental Protection &
Preservation Rev. 5.75% 7/1/2010 (3) 3,615 4,220
Florida Dept. of Environmental Protection &
Preservation Rev. 5.50% 7/1/2013 (4) 11,920 13,806
Florida Dept. of Transp. 5.25% 7/1/2015 4,000 4,405
Florida Division Board Financial Dept. of General Services
Systems Rev. (Dept. of Environmental
Protection) 6.00% 7/1/2012 (2) 11,500 13,743
Florida Division Board Financial Dept. of General Services
Systems Rev. (Dept. of Environmental
Protection) 5.375% 7/1/2013 (1) 7,645 8,735
Florida Muni. Power Agency Rev.
(Stanton Project) 5.50% 10/1/2013 (4) 3,905 4,477
Florida Turnpike Auth. Rev. 5.25% 7/1/2011 (3) 2,185 2,433
Greater Orlando Aviation Auth. Orlando
FL Airport Fac. Rev. 5.25% 10/1/2011 (3) 10,415 11,294
Hillsborough County FL School Board COP 5.50% 7/1/2014 (1) 4,370 5,062
Jacksonville FL Electric Auth. Rev.
(Electric System) VRDO 1.35% 5/1/2003 9,900 9,900
Jacksonville FL Sales Taxes Rev. 5.50% 10/1/2013 (3) 3,045 3,532
Lakeland FL Electric & Water Rev. 6.30% 10/1/2003 (4) 6,465 6,604
Lakeland FL Electric & Water Rev. 6.05% 10/1/2012 (4) 10,000 12,033
Lee County FL School Board COP 6.00% 8/1/2005 (4) 4,975 5,476
Miami-Dade County FL School Board COP 5.25% 8/1/2009 (2) 11,320 12,741
==================================================================================================================================
54
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Miami-Dade County FL School Board COP 5.25% 8/1/2010 (2) 12,140 13,614
Orange County FL School Board VRDO 1.40% 5/1/2003 (1) 1,800 1,800
Orlando & Orange County FL Expressway Auth. 5.00% 7/1/2008 (2) 11,745 13,172
Orlando FL Util. Comm. Water & Electric Rev. 5.25% 10/1/2013 10,000 11,385
Orlando FL Util. Comm. Water & Electric Rev. 5.25% 10/1/2014 5,000 5,711
Palm Beach County FL School Board 6.00% 8/1/2005 (2) 6,115 6,732
Palm Beach County FL School Board 6.00% 8/1/2006 (2) 6,480 7,349
Palm Beach County FL Solid Waste Auth. Rev. 5.25% 10/1/2003 (2)(ETM) 1,240 1,262
Palm Beach County FL Solid Waste Auth. Rev. 5.25% 10/1/2003 (2) 7,760 7,894
Tallahassee FL Health Fac. Rev.
(Tallahassee Memorial Healthcare, Inc.) 6.25% 12/1/2020 10,000 10,511
Tampa FL Health System Rev.
(Catholic Healthcare East) 5.25% 11/15/2011 (1) 3,000 3,317
------------
459,531
------------
GEORGIA (3.7%)
Atlanta GA Airport Fac. Rev. 0.00% 1/1/2010 (1) 54,195 38,551
Atlanta GA Airport Fac. Rev. 6.00% 1/1/2011 (3) 7,000 7,927
Atlanta GA Airport Fac. Rev. 6.125% 1/1/2012 (3) 7,500 8,491
Atlanta GA Airport Fac. Rev. 6.25% 1/1/2014 (3) 5,000 5,707
Atlanta GA Airport Fac. Rev. 5.875% 1/1/2015 (3) 11,930 13,686
Atlanta GA Airport Fac. Rev. 5.875% 1/1/2016 (3) 5,000 5,731
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2010 (3) 10,000 11,534
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2011 (3) 10,000 11,510
Burke County GA Dev. Auth. PCR
(Georgia Power Co. Plant Vogtle) PUT 4.45% 12/1/2008 37,375 39,861
Burke County GA Dev. Auth. PCR
(Oglethorpe Power Corp.) VRDO 1.35% 5/1/2003 (2) 2,500 2,500
Burke County GA Dev. Auth. PCR
(Oglethorpe Power Corp.) VRDO 1.33% 5/7/2003 (3)(Prere.) 23,835 23,835
Fulton County GA COP 5.75% 11/1/2011 (2) 6,000 6,957
Fulton County GA COP 6.00% 11/1/2012 (2) 5,985 7,043
Fulton County GA COP 6.00% 11/1/2013 (2) 6,325 7,449
Fulton County GA COP 6.00% 11/1/2014 (2) 4,675 5,507
Fulton County GA School Dist. GO 6.375% 5/1/2010 15,000 17,868
Georgia GO 7.25% 7/1/2004 3,500 3,747
Georgia GO 7.00% 11/1/2004 5,000 5,428
Georgia GO 6.50% 7/1/2005 5,000 5,545
Georgia GO 7.25% 9/1/2005 3,630 4,113
Georgia GO 7.00% 11/1/2005 15,670 17,798
Georgia GO 6.25% 4/1/2006 12,200 13,786
Georgia GO 7.25% 9/1/2006 7,860 9,257
Georgia GO 7.00% 11/1/2006 16,780 19,760
Georgia GO 6.25% 8/1/2007 5,500 6,417
Georgia GO 6.75% 8/1/2007 6,100 7,232
Georgia GO 7.40% 8/1/2007 11,200 13,565
Georgia GO 7.00% 11/1/2007 17,960 21,654
Georgia GO 7.40% 8/1/2008 5,900 7,306
Georgia GO 7.10% 9/1/2009 7,900 9,840
Georgia GO 7.45% 1/1/2010 4,000 5,028
Georgia GO 6.25% 8/1/2010 7,800 9,377
Georgia GO 6.75% 9/1/2010 8,000 9,881
Georgia GO 5.70% 7/1/2011 4,470 5,229
Georgia GO 5.75% 9/1/2011 2,500 2,941
Georgia Muni. Electric Power Auth. Rev. 6.30% 1/1/2005 (1)(ETM) 1,365 1,476
==================================================================================================================================
55
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Georgia Muni. Electric Power Auth. Rev. 6.30% 1/1/2005 (1) 6,410 6,898
Georgia Road & Tollway Auth. Rev.
(Governors Transp. Choices) 5.375% 3/1/2014 9,385 10,618
Georgia Road & Tollway Auth. Rev.
(Governors Transp. Choices) 5.375% 3/1/2015 8,775 9,881
Georgia Road & Tollway Auth. Rev.
(Governors Transp. Choices) 5.375% 3/1/2016 9,000 10,069
Monroe County GA Dev. Auth. PCR
(Oglethorpe Power Corp.) 6.65% 1/1/2008 (1) 9,220 10,878
------------
441,881
------------
HAWAII (3.1%)
Hawaii Airport System Rev. 5.95% 7/1/2003 (1) 2,590 2,611
Hawaii Airport System Rev. 6.05% 7/1/2004 (1) 3,145 3,233
Hawaii Airport System Rev. 6.15% 7/1/2005 (1) 10,735 11,039
Hawaii Airport System Rev. 6.25% 7/1/2006 (1) 5,000 5,140
Hawaii Airport System Rev. 5.75% 7/1/2010 (3) 10,780 12,196
Hawaii Airport System Rev. 6.375% 7/1/2012 (3) 9,140 10,534
Hawaii Airport System Rev. 6.90% 7/1/2012 (ETM) 20,195 24,601
Hawaii Airport System Rev. 5.75% 7/1/2013 (3) 23,000 25,611
Hawaii Airport System Rev. 5.75% 7/1/2014 (3) 12,510 13,994
Hawaii Airport System Rev. 5.75% 7/1/2015 (3) 19,450 21,643
Hawaii GO 5.00% 2/1/2005 6,650 6,737
Hawaii GO 5.125% 2/1/2006 11,605 11,758
Hawaii GO 6.40% 3/1/2007 5,555 6,412
Hawaii GO 6.00% 12/1/2009 (3) 3,550 4,206
Hawaii GO 5.875% 10/1/2010 (1)(Prere.) 2,000 2,366
Hawaii GO 6.00% 11/1/2010 (4) 10,000 11,844
Hawaii GO 5.75% 10/1/2011 (1) 2,210 2,544
Hawaii GO 5.375% 8/1/2012 (3) 14,490 16,364
Hawaii GO 5.375% 8/1/2012 (3) 14,200 16,037
Hawaii GO 5.625% 9/1/2012 (4) 5,000 5,724
Hawaii GO 5.75% 10/1/2012 (1) 2,130 2,462
Hawaii GO 5.375% 8/1/2013 (3) 16,595 18,603
Hawaii GO 5.375% 8/1/2013 (3) 14,700 16,479
Hawaii GO 5.375% 8/1/2014 (3) 17,985 20,080
Hawaii GO 5.375% 8/1/2014 (3) 11,650 13,007
Hawaii GO 5.75% 2/1/2015 (4) 5,000 5,891
Honolulu HI City & County GO 5.75% 1/1/2006 10 11
Honolulu HI City & County GO 5.75% 1/1/2006 (ETM) 8,815 9,765
Honolulu HI City & County GO 6.00% 1/1/2008 5 6
Honolulu HI City & County GO 8.00% 10/1/2009 (ETM) 3,620 4,714
Honolulu HI City & County GO 8.00% 10/1/2009 26,940 34,628
Honolulu HI City & County GO 5.125% 7/1/2010 (3) 16,275 18,154
Honolulu HI City & County GO 5.125% 7/1/2011 (3) 5,000 5,524
------------
363,918
------------
ILLINOIS (5.0%)
Chicago IL (City Colleges Improvement) GO 0.00% 1/1/2012 (3) 26,000 18,288
Chicago IL (City Colleges Improvement) GO 0.00% 1/1/2013 (3) 32,670 21,734
Chicago IL Housing Auth. Capital Project Rev. 5.375% 7/1/2013 5,540 6,042
Chicago IL Housing Auth. Capital Project Rev. 5.375% 7/1/2014 13,425 14,705
Chicago IL Housing Auth. Capital Project Rev. 5.375% 7/1/2015 7,150 7,775
Chicago IL Housing Auth. Capital Project Rev. 5.375% 7/1/2017 15,715 16,872
==================================================================================================================================
56
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Chicago IL Metro. Water Reclamation Dist. GO 6.25% 12/1/2005 (Prere.) 15,000 16,799
Chicago IL Metro. Water Reclamation Dist. GO 5.90% 12/1/2006 4,450 5,079
Chicago IL Metro. Water Reclamation Dist. GO 6.10% 12/1/2006 5,300 5,867
Chicago IL Metro. Water Reclamation Dist. GO 6.05% 12/1/2009 3,000 3,564
Chicago IL Metro. Water Reclamation Dist. GO VRDO 1.30% 5/7/2003 15,000 15,000
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2008 (2) 23,020 25,583
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2009 (2) 15,890 17,675
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2014 (2) 13,540 14,673
Chicago IL O'Hare International Airport
Special Fac. Rev. (United Airlines) PUT 5.80% 5/1/2007 ** 63,000 16,222
Chicago IL School Finance Auth. GO 5.20% 6/1/2005 (3) 3,000 3,070
Chicago IL School Finance Auth. GO 5.375% 6/1/2008 (3) 9,500 9,723
Chicago IL Water Rev. 5.50% 11/1/2003 (2) 5,000 5,109
Chicago IL Water Rev. 5.50% 11/1/2013 (2) 3,595 4,064
Chicago IL Water Rev. 5.50% 11/1/2014 (2) 3,200 3,610
Chicago IL Water Rev. 5.50% 11/1/2015 (2) 4,035 4,539
Chicago IL Water Rev. 5.50% 11/1/2016 (2) 2,000 2,239
Illinois Dev. Finance Auth. PCR
(Commonwealth Edison) PUT 4.40% 12/1/2006 (2) 25,000 27,205
Illinois Dev. Finance Auth. Solid Waste Disp. Rev.
(Waste Management) 5.85% 2/1/2007 10,000 10,670
Illinois Dev. Finance Auth. Solid Waste Disp. Rev.
(Waste Management) 5.05% 1/1/2010 9,750 9,826
Illinois GO 5.375% 7/1/2013 (1) 5,500 6,224
Illinois GO 5.50% 8/1/2013 (1) 14,005 16,165
Illinois GO 5.375% 7/1/2014 (1) 5,000 5,634
Illinois GO 5.50% 8/1/2017 (1) 7,500 8,399
Illinois GO 5.50% 8/1/2018 (1) 6,000 6,675
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.25% 6/1/2010 (1) 5,000 5,432
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.25% 6/1/2011 (1) 4,000 4,319
Illinois Health Fac. Auth. Rev.
(Hosp. Sisters Services Inc.) 5.25% 6/1/2012 (1) 4,280 4,603
Illinois Health Fac. Auth. Rev.
(Northwestern Memorial Hosp.) VRDO 1.35% 5/1/2003 13,800 13,800
Illinois Health Fac. Auth. Rev.
(Univ. of Chicago Hosp. & Health Systems) VRDO 1.35% 5/1/2003 (1) 3,100 3,100
Illinois Regional Transp. Auth. Rev. 9.00% 6/1/2005 (2) 4,500 5,183
Illinois Regional Transp. Auth. Rev. 9.00% 6/1/2005 (2) 720 829
Illinois Regional Transp. Auth. Rev. 9.00% 6/1/2008 (2) 945 1,230
Illinois Regional Transp. Auth. Rev. 9.00% 6/1/2008 (2) 5,895 7,673
Illinois Regional Transp. Auth. Rev. 9.00% 6/1/2009 (2) 3,225 4,300
Illinois Regional Transp. Auth. Rev. 9.00% 6/1/2009 (2) 1,030 1,373
Illinois Sales Tax Rev. 6.125% 6/15/2010 (Prere.) 4,250 5,070
Illinois Sales Tax Rev. 6.50% 6/15/2013 5,000 5,979
Illinois Sales Tax Rev. 6.125% 6/15/2014 6,850 8,017
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 7.25% 6/15/2005 (2)(ETM) 6,395 7,175
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 7.25% 6/15/2005 (2)(ETM) 2,105 2,362
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 7.25% 6/15/2005 (2) 275 307
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 7.25% 6/15/2005 (2)(ETM) 6,225 6,986
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 6.75% 6/1/2010 (2) 25,000 30,044
==================================================================================================================================
57
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2019 (3) 39,340 17,910
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 12/15/2021 (1) 17,550 6,869
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 12/15/2022 (1) 16,225 5,959
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 12/15/2023 (1) 17,500 6,034
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2024 (1) 9,000 2,999
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2030 (1) 48,690 11,490
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 12/15/2030 (1) 15,000 3,447
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2031 (1) 15,690 3,511
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 12/15/2031 (1) 136,695 29,757
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2032 (1) 27,000 5,722
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 12/15/2032 (1) 45,000 9,277
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2033 (1) 50,000 10,040
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2035 (1) 44,190 7,951
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2037 (1) 50,690 8,156
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2038 (1) 35,000 5,331
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 6/15/2039 (1) 20,000 2,885
Metro. Pier & Exposition Auth. Illinois Dedicated
Sales Tax Rev. 0.00% 12/15/2039 (1) 60,945 8,554
Univ. of Illinois Univ. Rev. Auxiliary Fac. 0.00% 4/1/2016 (1) 15,270 8,464
------------
601,168
------------
INDIANA
Indiana Muni. Power Agency Rev. 5.875% 1/1/2010 (1) 4,500 5,215
------------
KANSAS
Kansas Dept. of Transp. Highway Rev. VRDO 1.28% 5/1/2003 3,730 3,730
------------
KENTUCKY (1.1%)
Kentucky Property & Building Comm. Rev. 5.50% 9/1/2003 6,720 6,819
Kentucky Property & Building Comm. Rev. 5.60% 9/1/2004 (Prere.) 2,505 2,564
Kentucky Property & Building Comm. Rev. 5.25% 11/1/2008 2,500 2,760
Kentucky Property & Building Comm. Rev. 5.75% 10/1/2010 (Prere.) 6,135 7,207
Kentucky Property & Building Comm. Rev. 5.50% 8/1/2012 (4) 10,000 11,533
Kentucky Property & Building Comm. Rev. 5.25% 8/1/2013 (4) 39,355 43,769
Kentucky Property & Building Comm. Rev. 5.375% 10/1/2013 (1) 5,000 5,618
Kentucky Property & Building Comm. Rev. 5.75% 10/1/2013 3,500 4,024
Kentucky Property & Building Comm. Rev. 5.25% 8/1/2015 (4) 25,205 27,753
==================================================================================================================================
58
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Kentucky Turnpike Auth. Econ. Dev. Road Rev.
(Revitalization Project) 5.50% 7/1/2007 (4) 4,315 4,887
Louisville & Jefferson County KY Regional Airport Auth.
Airport System Rev. 5.75% 7/1/2012 (4) 4,495 5,066
Louisville & Jefferson County KY Regional Airport Auth.
Airport System Rev. 5.75% 7/1/2013 (4) 4,755 5,329
------------
127,329
------------
LOUISIANA (1.1%)
Louisiana GO 7.75% 8/1/2006 (1) 10,970 13,015
Louisiana GO 5.25% 4/15/2011 (4) 11,395 12,661
Louisiana GO 5.50% 5/15/2012 (3) 12,660 14,386
Louisiana GO 5.75% 11/15/2012 (3) 17,865 20,677
Louisiana GO 5.50% 5/15/2013 (3) 5,345 6,030
Louisiana GO 5.75% 11/15/2013 (3) 18,825 21,776
Louisiana GO 5.75% 11/15/2014 (3) 8,500 9,822
Louisiana Public Fac. Auth. Hosp. Rev.
(Franciscan Missionaries) 5.375% 7/1/2011 (1) 4,990 5,412
St. Charles Parish LA PCR (Entergy Inc.) PUT 5.35% 10/1/2003 24,000 24,140
------------
127,919
------------
MARYLAND (0.5%)
Maryland GO 5.50% 7/15/2009 16,490 19,095
Maryland GO 5.50% 7/15/2014 18,390 21,570
Maryland GO 5.50% 3/1/2016 8,035 9,439
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 6.625% 7/1/2020 4,000 4,467
------------
54,571
------------
MASSACHUSETTS (7.1%)
Boston MA Water & Sewer Comm. Rev. 5.75% 11/1/2013 5,785 6,658
Chelsea MA GO 5.50% 6/15/2009 (2) 3,000 3,467
Chelsea MA GO 5.50% 6/15/2011 (2) 5,000 5,668
Chelsea MA GO 5.50% 6/15/2012 (2) 5,000 5,671
Massachusetts Bay Transp. Auth. Rev. 7.00% 3/1/2009 8,880 10,817
Massachusetts Bay Transp. Auth. Rev. 5.125% 3/1/2012 5,820 6,408
Massachusetts Dev. Finance Agency Resource
Recovery Rev. (SEMASS System) 5.625% 1/1/2013 (1) 11,670 13,121
Massachusetts Dev. Finance Agency Resource
Recovery Rev. (SEMASS System) 5.625% 1/1/2014 (1) 7,340 8,207
Massachusetts Dev. Finance Agency Resource
Recovery Rev. (SEMASS System) 5.625% 1/1/2015 (1) 8,310 9,259
Massachusetts Dev. Finance Agency Resource
Recovery Rev. (SEMASS System) 5.625% 1/1/2016 (1) 3,500 3,878
Massachusetts Dev. Finance Agency Rev.
(Brooks School) VRDO 1.35% 5/7/2003 (1) 1,100 1,100
Massachusetts Dev. Finance Agency Rev.
(Smith College) VRDO 1.35% 5/7/2003 4,500 4,500
Massachusetts GAN 5.125% 6/15/2010 10,755 11,920
Massachusetts GAN 5.25% 6/15/2010 23,675 26,425
Massachusetts GAN 5.125% 12/15/2010 5,000 5,575
Massachusetts GAN 5.25% 12/15/2010 26,275 29,515
Massachusetts GAN 5.125% 6/15/2011 8,555 9,422
Massachusetts GAN 5.25% 6/15/2011 15,000 16,651
Massachusetts GAN 5.25% 12/15/2011 14,820 16,537
==================================================================================================================================
59
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Massachusetts GAN 5.75% 12/15/2011 20,000 23,091
Massachusetts GAN 5.75% 6/15/2012 11,280 12,953
Massachusetts GAN 5.125% 12/15/2012 5,000 5,525
Massachusetts GAN 5.125% 6/15/2013 5,000 5,473
Massachusetts GAN 5.75% 6/15/2013 10,000 11,463
Massachusetts GO 7.50% 6/1/2004 850 854
Massachusetts GO 7.50% 6/1/2004 (ETM) 105 109
Massachusetts GO 7.50% 6/1/2004 (ETM) 1,790 1,878
Massachusetts GO 5.125% 11/1/2006 (Prere.) 10,500 11,778
Massachusetts GO 6.00% 2/1/2010 (Prere.) 5,450 6,459
Massachusetts GO 5.75% 6/1/2010 (Prere.) 10,000 11,678
Massachusetts GO 6.00% 11/1/2010 5,000 5,872
Massachusetts GO 5.50% 11/1/2014 10,000 11,522
Massachusetts GO 5.50% 11/1/2016 (1) 75,000 87,332
Massachusetts GO 5.50% 11/1/2016 25,000 28,940
Massachusetts GO 5.50% 11/1/2016 (2) 50,000 58,165
Massachusetts GO 5.50% 11/1/2017 (1) 20,000 23,277
Massachusetts GO 5.50% 11/1/2017 (4) 7,000 8,147
Massachusetts GO VRDO 1.35% 5/1/2003 5,700 5,700
Massachusetts GO VRDO 1.35% 5/7/2003 3,500 3,500
Massachusetts GO VRDO 1.40% 5/7/2003 2,600 2,600
Massachusetts GO VRDO 1.40% 5/7/2003 24,000 24,000
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston Medical Center) 5.25% 7/1/2009 (1) 4,215 4,676
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston Medical Center) 5.25% 7/1/2010 (1) 4,440 4,854
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston Medical Center) 5.25% 7/1/2011 (1) 4,670 5,059
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston Medical Center) 5.25% 7/1/2012 (1) 1,850 1,998
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2006 6,400 6,553
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2007 5,390 5,500
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.25% 7/1/2008 5,030 5,113
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.875% 7/1/2008 6,140 6,429
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 6.50% 7/1/2012 10,000 10,491
Massachusetts Health & Educ. Fac. Auth. Rev.
(Harvard Univ.) VRDO 1.30% 5/7/2003 1,200 1,200
Massachusetts Health & Educ. Fac. Auth. Rev.
(Partners Healthcare System) 5.25% 7/1/2003 (4) 3,725 3,750
Massachusetts Ind. Finance Agency Resource
Recovery Rev. (Refusetech Inc.) 6.30% 7/1/2005 31,250 31,983
Massachusetts Ind. Finance Agency Rev.
(BioMed Research Corp.) 0.00% 8/1/2004 9,480 9,307
Massachusetts Muni. Wholesale Electric Co.
Power System Rev. 5.25% 7/1/2012 (1) 22,865 25,617
Massachusetts Muni. Wholesale Electric Co.
Power System Rev. 5.25% 7/1/2013 (1) 20,000 22,253
==================================================================================================================================
60
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Port Auth. Special Fac. Rev.
(Delta Airlines Inc.) 5.50% 1/1/2012 (2) 7,000 7,637
Massachusetts Port Auth. Special Fac. Rev.
(Delta Airlines Inc.) 5.50% 1/1/2013 (2) 6,730 7,292
Massachusetts Port Auth. Special Fac. Rev.
(Delta Airlines Inc.) 5.50% 1/1/2014 (2) 6,040 6,511
Massachusetts Port Auth. Special Fac. Rev.
(Delta Airlines Inc.) 5.50% 1/1/2015 (2) 4,000 4,287
Massachusetts Water Pollution Abatement Trust 5.25% 8/1/2011 (ETM) 6,475 7,390
Massachusetts Water Pollution Abatement Trust 5.125% 8/1/2009 3,000 3,352
Massachusetts Water Pollution Abatement Trust 6.00% 8/1/2010 5,000 5,821
Massachusetts Water Pollution Abatement Trust 5.125% 8/1/2011 5,000 5,529
Massachusetts Water Pollution Abatement Trust 5.25% 8/1/2011 830 925
Massachusetts Water Pollution Abatement Trust 6.00% 8/1/2011 4,150 4,839
Massachusetts Water Pollution Abatement Trust 5.25% 8/1/2012 295 329
Massachusetts Water Pollution Abatement Trust 6.00% 8/1/2012 6,455 7,575
Massachusetts Water Pollution Abatement Trust 6.00% 8/1/2013 5,000 5,868
Massachusetts Water Pollution Abatement Trust 5.125% 8/1/2014 2,500 2,741
Massachusetts Water Resources Auth. Rev. 6.50% 7/15/2010 30,220 36,558
Massachusetts Water Resources Auth. Rev. 6.50% 7/15/2019 37,515 47,480
Massachusetts Water Resources Auth. Rev. VRDO 1.30% 5/7/2003 (3) 2,300 2,300
Massachusetts Water Resources Auth. Rev. VRDO 1.35% 5/7/2003 (2) 4,165 4,165
------------
850,497
------------
MICHIGAN (2.7%)
Detroit MI GO 5.90% 5/1/2003 (2) 9,490 9,491
Detroit MI Sewage Disposal System VRDO 1.35% 5/7/2003 (3) 10,900 10,900
Detroit MI Sewer System Rev. 5.25% 7/1/2015 (1) 4,000 4,309
Detroit MI Sewer System Rev. 0.00% 7/1/2016 (3) 7,500 4,201
Detroit MI Water Supply System VRDO 1.35% 5/7/2003 (3) 18,500 18,500
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2005 (2) 10,065 11,216
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2005 (2) 7,140 7,957
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2006 (2) 13,500 15,466
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2006 (2) 10,175 11,657
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2007 (2) 6,070 7,067
Greater Detroit MI Resource Recovery Auth. 6.25% 12/13/2007 (2) 5,000 5,821
Michigan Building Auth. Rev. 6.00% 10/15/2007 9,000 10,439
Michigan Building Auth. Rev. 5.375% 10/15/2010 5,880 6,660
Michigan Building Auth. Rev. 5.50% 10/15/2012 8,440 9,656
Michigan Building Auth. Rev. 5.50% 10/15/2012 6,695 7,659
Michigan Building Auth. Rev. 5.25% 10/15/2013 2,500 2,783
Michigan Building Auth. Rev. 5.50% 10/15/2013 6,000 6,808
Michigan Building Auth. Rev. 5.50% 10/15/2013 6,010 6,819
Michigan Building Auth. Rev. 5.50% 10/15/2014 10,000 11,354
Michigan Building Auth. Rev. 5.50% 10/15/2015 5,000 5,648
Michigan GAN VRDO 1.30% 5/7/2003 (4) 8,350 8,350
Michigan GAN VRDO 1.35% 5/7/2003 (4) 4,000 4,000
Michigan GO 5.50% 11/1/2009 (Prere.) 5,120 5,941
Michigan GO 5.50% 11/1/2009 (Prere.) 5,395 6,260
Michigan GO 5.50% 12/1/2013 6,125 7,142
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.50% 10/1/2006 (ETM) 3,340 3,752
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.50% 10/1/2007 (ETM) 3,910 4,450
==================================================================================================================================
61
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.30% 10/1/2011 (ETM) 10,840 12,135
Michigan Hosp. Finance Auth. Rev.
(Genesys Regional Medical Center) 5.375% 10/1/2013 (ETM) 4,000 4,505
Michigan Housing Dev. Auth. Rev. VRDO 1.35% 5/7/2003 (1) 17,705 17,705
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.75% 10/1/2011 (Prere.) 10,390 12,296
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.875% 10/1/2012 (Prere.) 7,680 9,152
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.875% 10/1/2013 (Prere.) 10,740 12,799
Univ. of Michigan Hosp. Rev.
(Medical Service Plan) VRDO 1.40% 5/1/2003 2,870 2,870
Univ. of Michigan Hosp. Rev. VRDO 1.40% 5/1/2003 1,500 1,500
Wayne Charter County MI Airport Rev. 5.25% 12/1/2010 (1) 12,000 13,049
Wayne Charter County MI Airport Rev. 5.25% 12/1/2011 (1) 10,845 11,626
Wayne Charter County MI Airport Rev. 5.25% 12/1/2012 (1) 15,270 16,276
------------
328,219
------------
MINNESOTA (0.4%)
Minnesota GO 5.00% 8/1/2008 12,965 14,624
Northern Minnesota Muni. Power Agency
Electric System Rev. 5.25% 1/1/2012 (4) 6,000 6,665
Western Minnesota Muni. Power Agency 5.375% 1/1/2008 (2) 5,645 6,240
Western Minnesota Muni. Power Agency 5.50% 1/1/2010 (2) 14,045 15,630
------------
43,159
------------
MISSISSIPPI (0.9%)
Mississippi GO 5.25% 5/1/2005 (Prere.) 5,805 6,248
Mississippi GO 7.00% 5/1/2005 4,840 5,369
Mississippi GO 6.50% 9/1/2006 5,125 5,907
Mississippi GO 6.00% 12/1/2006 6,380 7,305
Mississippi GO 6.00% 11/1/2009 (Prere.) 9,225 10,971
Mississippi GO 6.00% 11/1/2009 (Prere.) 9,725 11,565
Mississippi GO 5.75% 11/1/2010 (Prere.) 7,860 9,245
Mississippi GO 5.75% 11/1/2010 (Prere.) 5,205 6,122
Mississippi GO 5.75% 11/1/2010 (Prere.) 5,540 6,516
Mississippi GO 5.25% 12/1/2010 8,800 10,015
Mississippi GO 5.75% 11/1/2011 4,665 5,383
Mississippi GO 5.75% 12/1/2011 6,000 7,038
Mississippi GO 5.75% 11/1/2012 4,825 5,582
Mississippi GO 5.50% 12/1/2016 8,435 9,848
Mississippi GO 5.50% 12/1/2017 4,000 4,668
------------
111,782
------------
MISSOURI (0.7%)
Missouri Environmental Improvement & Energy
Resource Auth. Water PCR 5.50% 7/1/2012 4,190 4,835
Missouri Environmental Improvement & Energy
Resource Auth. Water PCR 5.50% 7/1/2013 5,250 6,069
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(St. Luke's Episcopal-Presbyterian Hosp.) 5.50% 12/1/2012 (4) 3,365 3,785
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(St. Luke's Episcopal-Presbyterian Hosp.) 5.50% 12/1/2013 (4) 3,580 3,987
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(St. Luke's Episcopal-Presbyterian Hosp.) 5.50% 12/1/2014 (4) 3,780 4,196
Missouri Highways & Transp. Comm. Road Rev. 5.625% 2/1/2012 5,000 5,715
==================================================================================================================================
62
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Missouri Highways & Transp. Comm. Road Rev. 5.625% 2/1/2013 3,000 3,403
Missouri Highways & Transp. Comm. Road Rev. 5.625% 2/1/2014 3,430 3,891
Missouri Highways & Transp. Comm. Road Rev. 5.625% 2/1/2016 2,000 2,247
Missouri Highways & Transp. Comm. Road Rev. 5.25% 2/1/2017 11,410 12,516
St. Louis MO Airport Rev. Airport Dev. Program 5.625% 7/1/2013 (1) 11,560 13,133
St. Louis MO Airport Rev. Airport Dev. Program 5.625% 7/1/2014 (1) 10,260 11,626
St. Louis MO Airport Rev. Airport Dev. Program 5.625% 7/1/2015 (1) 5,000 5,650
------------
81,053
------------
MONTANA (0.1%)
Montana Health Fac. Auth. Rev.
(Sisters of Charity Health System) 5.25% 12/1/2009 (1) 3,330 3,730
Montana Health Fac. Auth. Rev.
(Sisters of Charity Health System) 5.25% 12/1/2010 (1) 2,445 2,700
Montana Health Fac. Auth. Rev.
(Sisters of Charity Health System) 5.25% 12/1/2011 (1) 4,980 5,508
Montana Health Fac. Auth. Rev.
(Sisters of Charity Health System) 5.25% 12/1/2012 (1) 2,725 3,010
------------
14,948
------------
NEBRASKA (0.9%)
Nebraska Public Power Dist. Rev. 5.25% 1/1/2010 (1) 26,500 29,486
Nebraska Public Power Dist. Rev. 5.25% 1/1/2011 (1) 10,000 11,076
Nebraska Public Power Dist. Rev. 5.25% 1/1/2012 (1) 5,000 5,543
Nebraska Public Power Dist. Rev. 5.25% 1/1/2013 (1) 51,565 57,038
Omaha NE Public Power Dist. Electric Rev. 5.50% 2/1/2007 5,000 5,611
------------
108,754
------------
NEVADA (2.7%)
Clark County NV Airport Improvement Rev. 5.375% 7/1/2010 (1) 8,470 9,555
Clark County NV Airport Improvement Rev. 5.25% 7/1/2012 (1) 4,225 4,671
Clark County NV GO 7.50% 6/1/2006 (2) 3,575 4,184
Clark County NV GO 7.50% 6/1/2007 (2) 4,630 5,577
Clark County NV GO 7.50% 6/1/2007 (2) 4,920 5,926
Clark County NV GO 8.00% 6/1/2008 (2) 5,285 6,637
Clark County NV GO 8.00% 6/1/2008 (2) 4,590 5,764
Clark County NV GO 7.50% 6/1/2009 (2) 1,115 1,397
Clark County NV GO 7.50% 6/1/2009 (2) 5,710 7,156
Clark County NV GO 5.50% 6/1/2012 (3) 6,365 7,125
Clark County NV GO 5.60% 6/1/2013 (3) 7,175 8,057
Clark County NV GO 5.625% 6/1/2014 (3) 7,450 8,358
Clark County NV Passenger Fac. Rev.
(Las Vegas McCarran International Airport) 5.375% 7/1/2010 (1) 6,435 7,259
Clark County NV Passenger Fac. Rev.
(Las Vegas McCarran International Airport) 5.375% 7/1/2011 (1) 9,445 10,530
Clark County NV Passenger Fac. Rev.
(Las Vegas McCarran International Airport) 5.375% 7/1/2012 (1) 8,295 9,251
Clark County NV School Dist. GO 5.375% 5/1/2003 (3)(Prere.) 3,740 3,778
Clark County NV School Dist. GO 5.375% 5/1/2003 (3)(Prere.) 9,195 9,288
Clark County NV School Dist. GO 5.70% 6/15/2005 (1)(Prere.) 10,825 11,901
Clark County NV School Dist. GO 5.875% 6/15/2005 (1)(Prere.) 14,485 15,978
Clark County NV School Dist. GO 5.875% 6/15/2005 (1)(Prere.) 9,275 10,231
Clark County NV School Dist. GO 5.60% 6/15/2006 (3)(Prere.) 9,640 10,874
Clark County NV School Dist. GO 5.90% 6/15/2006 (3)(Prere.) 10,000 11,371
Clark County NV School Dist. GO 5.50% 6/15/2007 (3)(Prere.) 16,325 18,642
Clark County NV School Dist. GO 5.625% 6/15/2007 (3)(Prere.) 10,000 11,468
==================================================================================================================================
63
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Clark County NV School Dist. GO 5.375% 6/15/2016 (1) 28,385 31,619
Clark County NV School Dist. GO 5.375% 6/15/2017 (1) 29,765 32,939
Las Vegas NV Convention & Visitors Auth. 6.00% 7/1/2011 (2) 10,000 11,647
Las Vegas NV Convention & Visitors Auth. 6.00% 7/1/2012 (2) 5,000 5,859
Las Vegas NV Convention & Visitors Auth. 6.00% 7/1/2014 (2) 4,500 5,276
Nevada GO 6.00% 5/15/2010 6,680 7,844
Nevada GO 5.25% 5/15/2011 6,000 6,675
Truckee Meadows NV Water Auth. Rev. 5.50% 7/1/2012 (4) 5,335 6,051
Truckee Meadows NV Water Auth. Rev. 5.50% 7/1/2013 (4) 4,790 5,393
Washoe County NV Hosp. Medical Center 6.00% 6/1/2009 (2) 6,310 6,739
------------
325,020
------------
NEW HAMPSHIRE (0.6%)
New Hampshire Business Finance Auth. PCR
(Public Service Co. of New Hampshire) 6.00% 5/1/2021 25,800 25,996
New Hampshire Business Finance Auth. PCR
(Public Service Co. of New Hampshire) 6.00% 5/1/2021 (2) 21,600 23,191
New Hampshire Business Finance Auth. PCR
(United Illuminating) PUT 4.55% 2/1/2004 15,000 15,199
New Hampshire IDA 5.90% 8/1/2018 7,000 7,214
------------
71,600
------------
NEW JERSEY (6.2%)
Camden County NJ Muni. Util. Auth. Rev. 0.00% 9/1/2003 (3) 18,545 18,466
Essex County NJ Solid Waste Util. Auth. 5.50% 4/1/2006 (4)(Prere.) 3,000 3,386
Gloucester County NJ Improvement Auth.
Solid Waste Resource Rev. PUT 6.85% 12/1/2009 4,000 4,535
New Jersey Econ. Dev. Auth. Market
Transition Fac. Rev. 5.00% 7/1/2008 (1) 17,000 19,013
New Jersey Econ. Dev. Auth. Market
Transition Fac. Rev. 5.00% 7/1/2010 (1) 26,045 29,008
New Jersey Econ. Dev. Auth. Rev.
(Transp. Project) 5.50% 5/1/2008 (4) 10,520 11,978
New Jersey GO 6.00% 7/15/2006 3,300 3,738
New Jersey GO 5.50% 8/1/2011 3,500 4,016
New Jersey GO 5.25% 7/1/2014 (4) 25,000 28,444
New Jersey GO 5.25% 7/1/2015 (4) 50,000 57,009
New Jersey Health Care Fac. Financing Auth. Rev.
(St. Barnabas Health Care) 5.25% 7/1/2010 (1) 8,050 8,927
New Jersey Health Care Fac. Financing Auth. Rev.
(St. Barnabas Health Care) 5.25% 7/1/2011 (1) 8,230 9,085
New Jersey Health Care Fac. Financing Auth. Rev.
(St. Barnabas Health Care) 5.25% 7/1/2012 (1) 2,000 2,206
New Jersey Health Care Fac. Financing Auth. Rev.
(St. Barnabas Health Care) 5.25% 7/1/2014 (1) 2,850 3,147
New Jersey Transp. Corp. COP 5.25% 9/15/2004 (2) 4,000 4,219
New Jersey Transp. Corp. COP 5.50% 9/15/2007 (2) 14,000 15,901
New Jersey Transp. Corp. COP 5.50% 9/15/2010 (2) 12,500 14,350
New Jersey Transp. Corp. COP 5.50% 9/15/2011 (2) 45,000 51,680
New Jersey Transp. Corp. COP 5.75% 9/15/2013 (2) 25,000 28,937
New Jersey Transp. Corp. COP 5.75% 9/15/2014 (2) 28,470 32,930
New Jersey Transp. Trust Fund Auth. Rev. 5.50% 6/15/2005 (1)(Prere.) 990 1,094
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2005 (2) 11,310 12,390
New Jersey Transp. Trust Fund Auth. Rev. 6.50% 6/15/2005 (2) 5,000 5,528
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2007 (Prere.) 37,000 43,317
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 6/15/2008 34,660 39,822
New Jersey Transp. Trust Fund Auth. Rev. 6.50% 6/15/2011 (1)(ETM) 7,510 9,210
New Jersey Transp. Trust Fund Auth. Rev. 6.50% 6/15/2011 (1) 12,490 15,189
==================================================================================================================================
64
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 12/15/2011 (1)(Prere.) 19,720 23,671
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 12/15/2011 (1)(Prere.) 20,000 24,007
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 12/15/2011 (1)(Prere.) 30,000 36,011
New Jersey Transp. Trust Fund Auth. Rev. 7.00% 6/15/2012 (1)(ETM) 7,510 9,568
New Jersey Transp. Trust Fund Auth. Rev. 7.00% 6/15/2012 (1) 12,490 15,813
New Jersey Transp. Trust Fund Auth. Rev. 6.00% 12/15/2014 (1) 10,280 12,087
New Jersey Turnpike Auth. Rev. 5.90% 1/1/2004 (2) 12,920 13,100
New Jersey Turnpike Auth. Rev. 4.75% 1/1/2006 (ETM) 4,380 4,534
New Jersey Turnpike Auth. Rev. 6.50% 1/1/2009 (2) 50,000 59,403
New Jersey Turnpike Auth. Rev. 5.75% 1/1/2010 (1) 35,220 40,642
New Jersey Turnpike Auth. Rev. 5.625% 1/1/2015 (1) 16,215 18,441
Rutgers State Univ. NJ 6.40% 5/1/2013 4,675 5,587
------------
740,389
------------
NEW MEXICO (0.3%)
New Mexico Highway Comm. Tax Rev. 6.00% 6/15/2011 12,780 14,902
New Mexico Highway Comm. Tax Rev. 5.75% 6/15/2012 16,310 18,783
------------
33,685
------------
NEW YORK (11.1%)
Long Island NY Power Auth. Electric System Rev. 5.50% 12/1/2009 (2) 6,000 6,906
Long Island NY Power Auth. Electric System Rev. 5.125% 4/1/2012 (1) 25,195 27,421
Long Island NY Power Auth. Electric System Rev. 5.25% 6/1/2012 40,505 43,568
Long Island NY Power Auth. Electric
System Rev. VRDO 1.30% 5/1/2003 LOC 17,092 17,092
Long Island NY Power Auth. Electric
System Rev. VRDO 1.40% 5/1/2003 LOC 10,400 10,400
Long Island NY Power Auth. Electric
System Rev. VRDO 1.40% 5/1/2003 LOC 6,900 6,900
Metro. New York Transp. Auth. Rev. 5.50% 11/15/2015 (2) 45,130 51,454
Metro. New York Transp. Auth. Rev.
(Commuter Fac.) 5.00% 1/1/2012 (1)(Prere.) 8,100 9,098
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 5.50% 4/1/2015 (1)(Prere.) 4,500 5,238
Metro. New York Transp. Auth. Rev.
(Service Contract) 5.40% 7/1/2003 (ETM) 5,860 5,903
Metro. New York Transp. Auth. Rev.
(Service Contract) 0.00% 7/1/2011 (ETM) 21,200 15,776
Metro. New York Transp. Auth. Rev.
(Transit Rev.) 7.00% 7/1/2009 (2)(ETM) 10,000 11,999
Metro. New York Transp. Auth. Rev.
(Transit Rev.) 5.125% 1/1/2012 (4)(Prere.) 5,030 5,697
Metro. New York Transp. Auth. Rev.
(Transit Rev.) 5.125% 1/1/2012 (4)(Prere.) 3,290 3,726
Metro. New York Transp. Auth. Rev.
(Transit Rev.) 5.125% 7/1/2012 (4)(ETM) 7,475 8,300
Metro. New York Transp. Auth. Rev.
(Transit Rev.) 5.50% 11/15/2012 (1) 5,530 6,403
Metro. New York Transp. Auth. Rev.
(Transp. Fac.) 5.25% 7/1/2009 (4)(ETM) 20,000 22,847
Metro. New York Transp. Auth. Rev.
(Transp. Fac.) 5.25% 1/1/2010 (4)(ETM) 2,575 2,897
Muni. Assistance Corp. for New York City NY 6.25% 7/1/2005 5,000 5,515
Muni. Assistance Corp. for New York City NY 6.00% 7/1/2006 7,000 7,920
Muni. Assistance Corp. for New York City NY 5.00% 7/1/2008 10,000 11,205
Muni. Assistance Corp. for New York City NY 6.00% 7/1/2008 10,000 11,545
Nassau County NY GO 7.00% 3/1/2004 7,500 7,826
Nassau County NY GO 5.00% 9/1/2011 (3) 7,550 8,236
Nassau County NY GO 5.00% 9/1/2012 (3) 6,720 7,290
Nassau County NY GO 5.00% 9/1/2013 (3) 5,730 6,216
New York City NY GO 7.00% 8/1/2005 6,500 7,203
New York City NY GO 8.00% 4/1/2006 (2) 5,955 6,969
New York City NY GO 5.70% 8/1/2007 9,800 10,843
New York City NY GO 5.90% 8/1/2009 6,125 6,643
New York City NY GO 5.90% 8/1/2010 4,750 5,099
New York City NY GO 6.00% 8/1/2011 5,600 6,200
New York City NY GO 6.00% 8/1/2012 4,000 4,429
New York City NY GO 5.875% 8/15/2012 (3) 7,000 7,860
==================================================================================================================================
65
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
New York City NY GO 5.75% 8/1/2013 (2) 8,500 9,745
New York City NY GO 5.75% 8/1/2015 (2) 38,000 43,446
New York City NY GO VRDO 1.35% 5/1/2003 (1) 1,725 1,725
New York City NY GO VRDO 1.35% 5/7/2003 LOC 16,100 16,100
New York City NY IDA
(USTA National Tennis Center) 6.375% 11/15/2007 (4) 6,200 6,796
New York City NY IDA
(USTA National Tennis Center) 6.40% 11/15/2008 (4) 4,105 4,498
New York City NY IDA
(USTA National Tennis Center) 6.50% 11/15/2009 (4) 6,745 7,401
New York City NY IDA
(USTA National Tennis Center) 6.50% 11/15/2010 (4) 3,500 3,838
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.30% 6/15/2006 19,065 19,983
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.375% 6/15/2019 7,500 8,198
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.40% 5/1/2003 (3) 3,000 3,000
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.40% 5/1/2003 (3) 24,300 24,300
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.40% 5/1/2003 (3) 14,500 14,500
New York City NY Transitional Finance Auth. Rev. 1.27% 5/7/2003 19,400 19,400
New York City NY Transitional Finance Auth. Rev. 5.50% 11/15/2008 2,000 2,284
New York City NY Transitional Finance Auth. Rev. 5.75% 8/15/2009 (3)(Prere.) 14,740 17,449
New York City NY Transitional Finance Auth. Rev. 5.00% 11/15/2009 3,550 3,912
New York City NY Transitional Finance Auth. Rev. 5.50% 2/15/2010 (Prere.) 3,500 4,068
New York City NY Transitional Finance Auth. Rev. 5.75% 2/15/2010 (Prere.) 4,365 5,140
New York City NY Transitional Finance Auth. Rev. 5.125% 11/1/2010 7,570 8,359
New York City NY Transitional Finance Auth. Rev. 5.00% 11/15/2010 6,375 6,914
New York City NY Transitional Finance Auth. Rev. 5.00% 11/15/2010 10,000 10,980
New York City NY Transitional Finance Auth. Rev. 5.125% 11/1/2011 7,245 7,959
New York City NY Transitional Finance Auth. Rev. 5.25% 11/15/2011 12,585 13,944
New York City NY Transitional Finance Auth. Rev. 5.50% 2/15/2012 5,945 6,689
New York City NY Transitional Finance Auth. Rev. 5.25% 5/1/2012 3,475 3,834
New York City NY Transitional Finance Auth. Rev. 5.125% 11/1/2012 7,000 7,687
New York City NY Transitional Finance Auth. Rev. 5.875% 11/1/2012 6,000 6,944
New York City NY Transitional Finance Auth. Rev. 5.25% 11/15/2012 5,000 5,542
New York City NY Transitional Finance Auth. Rev. 5.375% 2/1/2013 14,000 15,570
New York City NY Transitional Finance Auth. Rev. 5.125% 11/1/2013 6,000 6,580
New York City NY Transitional Finance Auth. Rev. 5.375% 2/1/2014 5,000 5,569
New York City NY Transitional Finance Auth. Rev. 5.75% 2/15/2014 5,960 6,816
New York City NY Transitional Finance Auth. Rev. 5.125% 11/15/2014 (3) 5,195 5,614
New York City NY Transitional Finance Auth. Rev. 5.25% 8/1/2018 (2) 5,000 5,459
New York City NY Transitional
Finance Auth. Rev. VRDO 1.40% 5/1/2003 8,700 8,700
New York City NY Transitional
Finance Auth. Rev. VRDO 1.40% 5/1/2003 17,400 17,400
New York City NY Transitional
Finance Auth. Rev. VRDO 1.35% 5/7/2003 15,000 15,000
New York City NY Transitional
Finance Auth. Rev. VRDO 1.35% 5/7/2003 1,800 1,800
New York City NY Transitional
Finance Auth. Rev. VRDO 1.35% 5/7/2003 8,000 8,000
New York State Dormitory Auth. Rev.
(City Univ. of New York) 5.50% 7/1/2013 4,090 4,568
New York State Dormitory Auth. Rev.
(City Univ.) 6.25% 7/1/2003 (ETM) 4,250 4,287
New York State Dormitory Auth. Rev.
(City Univ.) 6.35% 7/1/2004 (ETM) 2,500 2,651
New York State Dormitory Auth. Rev.
(City Univ.) 6.45% 7/1/2005 (ETM) 1,500 1,663
New York State Dormitory Auth. Rev.
(City Univ.) 5.75% 7/1/2013 (1) 14,645 16,998
New York State Dormitory Auth. Rev.
(City Univ.) 5.75% 7/1/2013 (1) 11,500 13,525
==================================================================================================================================
66
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Auth. Rev.
(Jewish Medical Center) 5.25% 7/1/2010 (1) 4,000 4,405
New York State Dormitory Auth. Rev.
(Jewish Medical Center) 5.25% 7/1/2011 (1) 8,170 8,901
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.25% 2/15/2011 (1) 7,370 8,045
New York State Dormitory Auth. Rev.
(Second Hosp.) 5.00% 2/15/2010 (4) 4,500 4,923
New York State Dormitory Auth. Rev.
(Second Hosp.) 5.10% 2/15/2011 (4) 6,285 6,840
New York State Dormitory Auth. Rev.
(Second Hosp.) 5.10% 2/15/2011 (2) 6,000 6,530
New York State Dormitory Auth. Rev.
(Second Hosp.) 5.10% 2/15/2011 (2) 4,040 4,397
New York State Dormitory Auth. Rev.
(State Univ.) 5.90% 5/15/2004 (Prere.) 2,000 2,139
New York State Dormitory Auth. Rev.
(State Univ.) 5.80% 5/15/2005 5,400 5,745
New York State Dormitory Auth. Rev.
(Univ. of Rochester) 5.75% 7/1/2014 (1) 9,725 10,364
New York State Dormitory Auth. Rev.
(Univ. System) 5.25% 7/1/2017 (1) 14,500 15,836
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.25% 7/1/2010 (2) 3,920 4,405
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.25% 7/1/2011 (2) 3,610 3,996
New York State GO 6.00% 10/1/2004 4,195 4,475
New York State Medical Care Fac. Finance Agency Rev.
(Mental Health Services) 5.375% 2/15/2014 (4) 4,460 4,676
New York State Power Auth. Rev. 5.25% 11/15/2017 20,710 22,764
New York State Power Auth. Rev. 5.25% 11/15/2018 35,425 38,673
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 6.25% 4/1/2006 (1) 10,000 11,037
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.25% 4/1/2007 (2)(Prere.) 5,000 5,702
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 6.25% 4/1/2010 (4) 6,725 7,990
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.25% 4/1/2011 (3) 4,000 4,416
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.25% 4/1/2012 (3) 6,220 6,877
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.50% 4/1/2012 (1) 20,000 22,951
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.25% 4/1/2015 (2) 10,000 11,006
New York State Thruway Auth. Rev.
(Personal Income Tax) 5.50% 3/15/2016 (1) 3,000 3,379
New York State Thruway Auth. Rev.
(Service Contract) 5.375% 4/1/2009 (1) 16,500 18,558
New York State Thruway Auth. Rev.
(Service Contract) 5.25% 4/1/2013 9,545 10,542
New York State Urban Dev. Corp. Rev.
(Correctional Fac.) 6.40% 1/1/2004 (ETM) 9,685 10,028
Niagara County NY IDA Solid
Waste Disposal Rev. PUT 5.45% 11/15/2012 16,000 16,895
Onondaga County NY PCR
(Anheuser-Busch Cos., Inc.) 6.625% 8/1/2006 10,000 11,360
Port Auth. of New York & New Jersey Rev. 5.00% 8/1/2007 4,900 5,369
Port Auth. of New York & New Jersey Rev. 5.50% 9/15/2008 (3) 5,810 6,541
Port Auth. of New York & New Jersey Rev. 5.25% 7/15/2010 11,095 11,999
Port Auth. of New York & New Jersey Rev. 5.00% 8/1/2015 10,000 10,415
Suffolk County NY Water Auth. Rev. 6.80% 6/1/2012 (ETM) 10,660 13,072
Triborough Bridge & Tunnel Auth. New York Rev. 6.60% 1/1/2010 (ETM) 55,325 66,905
Triborough Bridge & Tunnel Auth. New York Rev. 5.50% 1/1/2012 (ETM) 20,295 22,872
Triborough Bridge & Tunnel Auth. New York Rev. 6.00% 1/1/2012 (ETM) 12,000 14,181
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2015 5,000 5,675
==================================================================================================================================
67
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2017 20,000 21,933
Triborough Bridge & Tunnel Auth.
New York Rev. VRDO 1.35% 5/7/2003 (4) 28,365 28,365
------------
1,322,641
------------
NORTH CAROLINA (2.1%)
Concord NC Util. System Rev. VRDO 1.30% 5/7/2003 (4) 14,000 14,000
Cumberland County NC Hosp. Fac. Rev.
(Cape Fear Hosp.) 5.25% 10/1/2019 10,000 10,350
North Carolina Eastern Muni. Power Agency Rev. 5.30% 1/1/2015 4,000 4,200
North Carolina Eastern Muni. Power Agency Rev. 5.375% 1/1/2016 3,000 3,141
North Carolina Eastern Muni. Power Agency Rev. 5.375% 1/1/2017 4,700 4,885
North Carolina GO VRDO 1.30% 5/7/2003 9,000 9,000
North Carolina GO VRDO 1.32% 5/7/2003 4,600 4,600
North Carolina Muni. Power Agency Rev. 5.25% 1/1/2009 (1) 8,500 9,561
North Carolina Muni. Power Agency Rev. 5.25% 1/1/2014 (2) 26,585 29,770
North Carolina Muni. Power Agency Rev. 5.25% 1/1/2016 (4) 10,000 11,044
North Carolina Muni. Power Agency Rev. 5.25% 1/1/2017 (4) 15,290 16,771
North Carolina Muni. Power Agency Rev. 5.25% 1/1/2018 (1) 69,720 75,947
North Carolina Muni. Power Agency Rev. 5.25% 1/1/2019 (1) 38,600 41,759
North Carolina Muni. Power Agency Rev. 5.25% 1/1/2020 (1) 10,000 10,736
Winston-Salem NC Water & Sewer System Rev. 5.50% 6/1/2011 (Prere.) 2,380 2,767
Winston-Salem NC Water & Sewer System Rev. 5.50% 6/1/2011 (Prere.) 1,970 2,290
Winston-Salem NC Water & Sewer System Rev. 5.50% 6/1/2013 1,500 1,706
Winston-Salem NC Water & Sewer System Rev. 5.50% 6/1/2014 1,240 1,412
------------
253,939
------------
OHIO (3.0%)
Cleveland OH Airport System Rev. 5.25% 1/1/2009 (4) 8,535 9,398
Cleveland OH Airport System Rev. 5.25% 1/1/2010 (4) 9,010 9,873
Cleveland OH Airport System Rev. 5.25% 1/1/2012 (4) 5,000 5,407
Cleveland OH Airport System Rev. 5.25% 1/1/2013 (4) 5,000 5,370
Cleveland OH GO 5.50% 8/1/2008 (1) 6,295 7,168
Cleveland OH Water Works Rev. 6.00% 1/1/2006 (1) 2,100 2,336
Cleveland OH Water Works Rev. 5.25% 1/1/2009 (4) 10,110 11,261
Cleveland OH Water Works Rev. 5.25% 1/1/2010 (4) 7,000 7,789
Cleveland OH Water Works Rev. 5.375% 1/1/2013 (4) 3,455 3,894
Cuyahoga County OH Hosp. Rev.
(Cleveland Clinic Foundation) VRDO 1.45% 5/7/2003 LOC 3,550 3,550
Franklin County OH Hosp. Rev. 5.75% 5/15/2012 (2) 5,000 5,117
Hamilton County OH Hosp. Fac. Rev.
(Health Alliance of Greater Cincinnati) VRDO 1.25% 5/7/2003 (1) 4,535 4,535
Hamilton County OH Hosp. Fac. Rev.
(Health Alliance of Greater Cincinnati) VRDO 1.34% 5/7/2003 (1) 15,347 15,347
Kent State Univ. Ohio VRDO 1.35% 5/7/2003 (1) 8,000 8,000
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.625% 10/1/2012 6,800 7,575
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.625% 9/1/2013 (1) 3,000 3,388
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.625% 10/1/2013 6,810 7,530
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.625% 10/1/2014 6,000 6,630
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.625% 10/1/2015 4,000 4,393
Ohio Air Quality Dev. Auth.
(Cincinnati Gas & Electric Co.) VRDO 1.40% 5/1/2003 LOC 900 900
==================================================================================================================================
68
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Ohio Building Auth. Rev. (Admin. Building Fund) 5.50% 10/1/2013 (4) 6,605 7,461
Ohio Building Auth. Rev. (Data Center) 5.75% 10/1/2005 3,070 3,379
Ohio Building Auth. Rev.
(Highway Safety Building) 6.00% 4/1/2007 (2) 4,640 5,321
Ohio Building Auth. Rev.
(Highway Safety Building) 5.75% 10/1/2008 (2) 5,055 5,706
Ohio Building Auth. Rev.
(Highway Safety Building) 5.375% 10/1/2009 (2) 4,605 5,169
Ohio Building Auth. Rev.
(State Correctional Fac.) 5.70% 10/1/2003 3,305 3,368
Ohio Building Auth. Rev.
(State Correctional Fac.) 5.70% 10/1/2004 2,725 2,894
Ohio Building Auth. Rev.
(State Correctional Fac.) 5.90% 10/1/2004 (1)(Prere.) 4,435 4,816
Ohio Building Auth. Rev.
(State Correctional Fac.) 5.80% 10/1/2006 4,360 4,939
Ohio Building Auth. Rev.
(State Correctional Fac.) 5.90% 10/1/2007 2,500 2,887
Ohio Building Auth. Rev.
(State Correctional Fac.) 6.00% 10/1/2007 (2) 3,710 4,269
Ohio Building Auth. Rev.
(State Correctional Fac.) 5.75% 4/1/2008 (2) 5,375 6,070
Ohio Building Auth. Rev.
(State Correctional Fac.) 5.75% 4/1/2009 (2) 5,485 6,234
Ohio Building Auth. Rev.
(State Correctional Fac.) 5.50% 10/1/2012 (4) 5,000 5,690
Ohio Building Auth. Rev.
(State Correctional Fac.) 5.50% 10/1/2013 (4) 3,000 3,389
Ohio GO 5.625% 5/1/2010 (Prere.) 5,065 5,878
Ohio GO 7.625% 8/1/2010 3,510 4,508
Ohio GO 5.375% 2/1/2012 7,255 8,186
Ohio GO 5.375% 2/1/2013 7,645 8,560
Ohio GO 5.25% 8/1/2013 (4) 12,435 14,178
Ohio GO 5.50% 8/1/2013 2,945 3,413
Ohio GO 5.375% 2/1/2014 5,000 5,588
Ohio GO 5.375% 2/1/2015 3,485 3,880
Ohio GO 5.375% 2/1/2017 5,500 6,050
Ohio Higher Educ. Capital Fac. Rev. 5.00% 12/1/2007 5,000 5,611
Ohio Higher Educ. Fac. Comm. Rev.
(Case Western Reserve Univ.) VRDO 1.40% 5/1/2003 5,800 5,800
Ohio Higher Educ. Fac. Comm. Rev.
(Kenyon College) VRDO 1.40% 5/7/2003 1,900 1,900
Ohio Housing Finance Agency Mortgage Rev. 5.025% 3/1/2021 6,770 6,828
Ohio Housing Finance Agency Mortgage Rev. 5.45% 9/1/2031 17,400 18,043
Ohio Housing Finance Agency Mortgage Rev. 5.625% 3/1/2032 8,900 9,596
Ohio Housing Finance Agency Mortgage Rev. VRDO 1.40% 5/7/2003 3,000 3,000
Ohio Public Fac. Comm. Higher Educ. Capital Fac. 5.25% 5/1/2005 (2)(Prere.) 5,950 6,404
Ohio Solid Waste Rev.
(BP Exploration & Oil Inc.) VRDO 1.40% 5/1/2003 4,800 4,800
Ohio State Univ. General Receipts Rev. VRDO 1.36% 5/7/2003 11,800 11,800
Ohio State Univ. General Receipts Rev. VRDO 1.36% 5/7/2003 9,700 9,700
Ohio Turnpike Comm. Turnpike Rev. 5.50% 2/15/2006 (1)(Prere.) 4,435 4,983
Ohio Water Dev. Auth. Rev. 6.00% 12/1/2004 (2)(Prere.) 2,520 2,580
Univ. of Cincinnati OH General Receipts 5.50% 6/1/2013 (3) 2,700 3,065
Univ. of Cincinnati OH General Receipts 5.50% 6/1/2014 (3) 1,000 1,136
------------
356,540
------------
OKLAHOMA (0.3%)
Grand River Dam Auth. Oklahoma Rev. 6.25% 6/1/2011 (2) 7,600 9,085
Oklahoma Dev. Finance Auth. Rev.
(Hillcrest Hosp.) 5.75% 8/15/2014 5,805 4,833
Oklahoma Turnpike Auth. 5.50% 1/1/2009 (3) 6,000 6,854
Tulsa OK Muni. Airport Transp. Rev.
(American Airlines) PUT 5.80% 12/1/2004 18,355 10,757
Tulsa OK Muni. Airport Transp. Rev.
(American Airlines) PUT 6.00% 12/1/2008 16,000 8,964
------------
40,493
------------
OREGON (0.9%)
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.50% 2/15/2009 7,715 8,533
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.50% 2/15/2010 9,955 10,997
==================================================================================================================================
69
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.75% 5/1/2012 2,955 3,305
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.75% 5/1/2013 5,580 6,184
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.75% 5/1/2014 5,825 6,429
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.75% 5/1/2015 4,395 4,835
Oregon State Dept. Administrative Services 5.00% 9/1/2009 (4) 23,030 25,919
Oregon State Dept. Administrative Services 5.75% 4/1/2010 (4) 7,560 8,673
Oregon State Dept. Administrative Services 5.75% 4/1/2011 (4) 8,715 9,976
Oregon State Dept. Administrative Services 5.75% 4/1/2012 (4) 2,500 2,881
Oregon State Dept. Administrative Services 5.75% 4/1/2013 (4) 3,000 3,457
Port Auth. of Portland OR Airport Rev.
(Portland International Airport) 5.00% 7/1/2013 (3) 2,520 2,651
Port Auth. of Portland OR Airport Rev.
(Portland International Airport) 5.50% 7/1/2014 (2) 5,325 5,754
Portland OR Sewer System Rev. 6.00% 6/1/2007 (3) 5,600 6,436
------------
106,030
------------
PENNSYLVANIA (4.3%)
Beaver County PA IDA PCR (Ohio Edison) PUT 4.65% 6/1/2004 59,000 59,676
Delaware County PA IDA PCR (PECO Energy Co.) PUT 5.20% 10/1/2004 1,500 1,560
Delaware County PA IDA Resource Recovery Rev.
(American Fuel) 6.10% 1/1/2004 5,000 5,063
Delaware County PA IDA Resource Recovery Rev.
(American Fuel) 6.10% 1/1/2007 7,955 8,629
Delaware County PA IDA Resource Recovery Rev.
(American Fuel) 6.00% 1/1/2009 5,355 5,797
Delaware County PA IDA Resource Recovery Rev.
(American Fuel) 6.10% 7/1/2013 9,750 10,305
Geisinger Health System Auth. of Pennsylvania Rev.
(Penn State Geisinger Health System) VRDO 1.28% 5/1/2003 1,500 1,500
Geisinger Health System Auth. of Pennsylvania Rev.
(Penn State Geisinger Health System) VRDO 1.35% 5/1/2003 8,200 8,200
Montgomery County PA IDA PCR (PECO Energy) PUT 5.20% 10/1/2030 24,500 25,485
Pennsbury PA School Dist. GO 5.50% 8/15/2014 (3) 6,000 6,462
Pennsylvania Convention Center Auth. Rev. 6.25% 9/1/2004 6,655 6,893
Pennsylvania Convention Center Auth. Rev. 6.70% 9/1/2014 (1) 4,000 4,352
Pennsylvania Convention Center Auth. Rev. 6.70% 9/1/2016 (3)(ETM) 3,000 3,769
Pennsylvania GO 5.00% 6/1/2003 (1) 4,500 4,515
Pennsylvania GO 5.50% 5/1/2005 (3)(Prere.) 8,025 8,794
Pennsylvania GO 5.25% 10/15/2005 10,400 11,347
Pennsylvania GO 5.00% 4/15/2008 1,370 1,393
Pennsylvania GO 6.00% 7/1/2008 8,220 9,598
Pennsylvania GO 5.00% 9/15/2008 7,150 8,047
Pennsylvania GO 5.375% 5/15/2013 (3) 3,515 3,882
Pennsylvania GO 5.50% 5/1/2014 (4) 10,000 11,461
Pennsylvania GO COP 5.00% 7/1/2003 (2) 4,555 4,584
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 1.40% 5/7/2003 (2) 500 500
Pennsylvania Higher Educ. Fac. Auth. Health Services Rev.
(Allegheny/Delaware Valley Obligated Group) 5.00% 11/15/2003 (1) 7,380 7,519
==================================================================================================================================
70
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Higher Educ. Fac. Auth. Health Services Rev.
(Allegheny/Delaware Valley Obligated Group) 5.00% 11/15/2004 (1) 9,295 9,759
Pennsylvania Higher Educ. Fac. Auth. Health Services Rev.
(Allegheny/Delaware Valley Obligated Group) 5.00% 11/15/2005 (1) 7,690 8,259
Pennsylvania Higher Educ. Fac. Auth. Health Services Rev.
(Allegheny/Delaware Valley Obligated Group) 5.00% 11/15/2006 (1) 4,375 4,777
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Univ. of Pittsburgh Medical Center) 5.25% 8/1/2011 (4) 8,195 8,998
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Univ. of Pittsburgh Medical Center) 5.25% 8/1/2012 (4) 2,750 2,978
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Univ. of Pittsburgh Medical Center) 5.25% 8/1/2013 (4) 4,000 4,326
Pennsylvania Housing Finance Agency Rev. 5.40% 10/1/2024 4,175 4,300
Pennsylvania Intergovernmental
Cooperation Auth. Rev. 5.25% 6/15/2010 (3) 6,700 7,472
Pennsylvania Intergovernmental
Cooperation Auth. Rev. 5.25% 6/15/2011 (3) 10,000 11,131
Pennsylvania Intergovernmental
Cooperation Auth. Rev. 5.25% 6/15/2012 (3) 6,660 7,415
Pennsylvania Intergovernmental
Cooperation Auth. Rev. 5.25% 6/15/2013 (3) 5,000 5,551
Pennsylvania Turnpike Comm.
Oil Franchise Tax Rev. 5.25% 12/1/2011 (2) 5,000 5,593
Pennsylvania Turnpike Comm.
Oil Franchise Tax Rev. 5.25% 12/1/2011 (2) 6,000 6,711
Philadelphia PA Gas Works Rev. 5.50% 7/1/2007 (4) 8,025 9,091
Philadelphia PA Gas Works Rev. 5.50% 7/1/2009 (4) 10,820 12,197
Philadelphia PA Gas Works Rev. 5.25% 7/1/2010 (4) 10,180 11,403
Philadelphia PA Gas Works Rev. 5.25% 7/1/2011 (4) 5,000 5,575
Philadelphia PA GO 5.125% 5/15/2009 (3) 2,000 2,256
Philadelphia PA GO 5.25% 3/15/2010 (4) 1,755 1,967
Philadelphia PA GO 5.125% 5/15/2010 (3) 11,695 13,060
Philadelphia PA GO 5.25% 3/15/2011 (4) 3,610 4,007
Philadelphia PA GO 5.125% 5/15/2011 (3) 12,290 13,561
Philadelphia PA GO 5.25% 3/15/2012 (4) 3,000 3,332
Philadelphia PA GO 5.125% 5/15/2012 (3) 4,975 5,487
Philadelphia PA GO 5.125% 5/15/2013 (3) 5,000 5,496
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Children's Hosp. of Philadelphia) VRDO 1.35% 5/1/2003 23,100 23,100
Philadelphia PA IDA Rev.
(Philadelphia Airport System) 5.75% 6/15/2011 (3) 4,695 5,330
Philadelphia PA Muni. Auth. Rev. 6.00% 7/15/2003 1,305 1,317
Philadelphia PA Parking Auth. Rev. 5.25% 9/1/2010 (2) 4,875 5,473
Philadelphia PA School Dist. GO 6.25% 9/1/2005 (2) 5,000 5,549
Philadelphia PA School Dist. GO 6.25% 9/1/2006 (2) 2,000 2,291
Philadelphia PA School Dist. GO 6.25% 9/1/2008 (2) 4,000 4,745
Philadelphia PA School Dist. GO 6.25% 9/1/2009 (2) 2,080 2,488
Philadelphia PA School Dist. GO 5.25% 4/1/2011 (1) 3,920 4,354
Philadelphia PA School Dist. GO 5.50% 8/1/2012 (3) 10,815 12,390
Philadelphia PA Water & Waste Water Rev. 6.25% 8/1/2007 (1) 5,000 5,823
Pittsburgh PA GO 5.20% 3/1/2010 (3) 17,000 18,369
Pittsburgh PA Water & Sewer Auth. Rev. 5.60% 9/1/2005 (3)(Prere.) 6,000 6,571
Sayre PA Health Care Fac. Auth. Rev.
(VHA of Pennsylvania, Pooled Capital Asset
Financial Program) VRDO 1.40% 5/7/2003 (2) 8,400 8,400
Sayre PA Health Care Fac. Auth. Rev.
(VHA of Pennsylvania, Pooled Capital Asset
Financial Program) VRDO 1.40% 5/7/2003 (2) 6,300 6,300
Sayre PA Health Care Fac. Auth. Rev.
(VHA of Pennsylvania, Pooled Capital Asset
Financial Program) VRDO 1.40% 5/7/2003 (2) 4,650 4,650
------------
511,183
------------
==================================================================================================================================
71
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO (1.0%)
Puerto Rico Electric Power Auth. Rev. 5.00% 7/1/2011 (1) 5,000 5,462
Puerto Rico Electric Power Auth. Rev. 5.00% 7/1/2011 (4) 3,500 3,823
Puerto Rico GO 5.50% 7/1/2011 (4) 8,500 9,823
Puerto Rico GO 5.50% 7/1/2013 (1) 5,000 5,798
Puerto Rico GO 5.50% 7/1/2014 (1) 5,000 5,822
Puerto Rico Highway & Transp. Auth. Rev. 6.25% 7/1/2011 (1) 2,835 3,427
Puerto Rico Muni. Finance Agency 5.75% 8/1/2012 (4) 2,470 2,857
Puerto Rico Muni. Finance Agency 5.875% 8/1/2014 (4) 4,000 4,662
Puerto Rico Public Buildings
Auth. Govt. Fac. Rev. 0.00% 7/1/2011 (3) 48,810 36,512
Puerto Rico Public Buildings
Auth. Govt. Fac. Rev. 0.00% 7/1/2012 (3) 34,465 24,614
Puerto Rico Public Buildings
Auth. Govt. Fac. Rev. 5.50% 7/1/2017 (2) 6,390 7,472
Puerto Rico Public Buildings
Auth. Govt. Fac. Rev. 5.50% 7/1/2018 (2) 6,430 7,503
------------
117,775
------------
RHODE ISLAND (0.3%)
Rhode Island Depositors Econ. Protection Corp. 6.55% 8/1/2010 (1)(ETM) 18,465 22,236
Rhode Island Depositors Econ. Protection Corp. 6.55% 8/1/2010 (1)(ETM) 8,385 10,046
Rhode Island GO 6.00% 8/1/2005 (1) 3,000 3,302
Rhode Island GO 6.00% 8/1/2006 (1) 3,000 3,403
------------
38,987
------------
SOUTH CAROLINA (0.8%)
Berkeley County SC Water & Sewer System Rev. 5.00% 6/1/2007 (1) 4,140 4,602
Medical Univ. SC Hosp. Auth. Hosp. Fac. Rev. 6.25% 8/15/2022 13,000 13,614
Piedmont SC Muni. Power Agency Rev. 5.40% 1/1/2007 (1) 1,800 1,997
Piedmont SC Muni. Power Agency Rev. 5.40% 1/1/2007 (1)(ETM) 1,400 1,564
South Carolina Jobs Econ. Dev. Auth. Hosp.
Improvement Rev. (Palmetto Health Alliance) 7.00% 12/15/2010 10,500 11,411
South Carolina Jobs Econ. Dev. Auth. Hosp.
Improvement Rev. (Palmetto Health Alliance) 7.125% 12/15/2015 7,000 7,717
South Carolina Public Service Auth. Rev. 5.375% 1/1/2013 (4) 7,300 8,246
South Carolina Public Service Auth. Rev. 5.50% 1/1/2013 (4) 5,000 5,743
South Carolina Transp. Infrastructure Rev. 5.00% 10/1/2010 (1) 8,000 8,794
South Carolina Transp. Infrastructure Rev. 5.75% 10/1/2011 (1) 6,925 7,987
South Carolina Transp. Infrastructure Rev. 5.75% 10/1/2012 (1) 6,245 7,234
South Carolina Transp. Infrastructure Rev. 5.75% 10/1/2013 (1) 9,020 10,446
South Carolina Transp. Infrastructure Rev. 5.75% 10/1/2014 (1) 8,495 9,821
------------
99,176
------------
SOUTH DAKOTA
South Dakota Building Auth. Lease Rev. 5.25% 12/1/2010 (2) 4,800 5,406
------------
TENNESSEE (0.5%)
Blount County TN Public Building Auth.
(Local Govt. Public Improvement Bonds) VRDO 1.33% 5/1/2003 5,800 5,800
Knoxville TN Health, Educ. & Housing Board Rev.
(Univ. Health System, Inc.) 5.40% 4/1/2011 3,465 3,674
Knoxville TN Health, Educ. & Housing Board Rev.
(Univ. Health System, Inc.) 5.50% 4/1/2012 2,660 2,820
Knoxville TN Health, Educ. & Housing Board Rev.
(Univ. Health System, Inc.) 5.50% 4/1/2013 4,495 4,734
Knoxville TN Health, Educ. & Housing Board Rev.
(Univ. Health System, Inc.) 5.625% 4/1/2014 2,000 2,111
==================================================================================================================================
72
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Knoxville TN Health, Educ. & Housing Board Rev.
(Univ. Health System, Inc.) 5.75% 4/1/2019 13,000 13,481
Metro. Govt. of Nashville & Davidson County TN
Water & Sewer Rev. 7.70% 1/1/2012 (3) 5,000 6,416
Montgomery County TN Public Building Auth. Pooled
Financial Rev. (Tennessee County Loan Pool) VRDO 1.40% 5/1/2003 LOC 5,000 5,000
Shelby County TN GO 5.625% 4/1/2005 (Prere.) 1,245 1,357
Shelby County TN GO 0.00% 12/1/2011 10,000 7,179
Shelby County TN GO 5.625% 4/1/2012 3,755 4,051
------------
56,623
------------
TEXAS (10.4%)
Austin TX Combined Util. System Rev. 5.20% 11/15/2003 (1) 3,360 3,434
Austin TX Combined Util. System Rev. 5.75% 11/15/2003 (4)(ETM) 650 666
Austin TX Combined Util. System Rev. 7.25% 11/15/2003 (ETM) 395 408
Austin TX Combined Util. System Rev. 5.30% 5/15/2004 (1) 5,770 5,905
Austin TX Combined Util. System Rev. 0.00% 11/15/2010 (2) 5,000 3,795
Austin TX Combined Util. System Rev. 0.00% 11/15/2011 (2) 16,050 11,495
Austin TX Combined Util. System Rev. 0.00% 11/15/2011 (1) 18,100 12,964
Austin TX Combined Util. System Rev. 0.00% 5/15/2018 (3) 25,215 12,318
Austin TX Combined Util. System Rev. 0.00% 5/15/2019 (3) 28,160 12,892
Austin TX Independent School Dist. GO 5.75% 8/1/2006 (Prere.) 3,470 3,915
Austin TX Independent School Dist. GO 5.75% 8/1/2012 1,530 1,693
Board of Regents of the Univ. of Texas System Rev.
Financing System 5.375% 8/15/2012 8,290 9,360
Brazos River Auth. Texas PCR
(Texas Util. Electric Co.) PUT 4.95% 4/1/2004 65,000 64,925
Brazos River Auth. Texas PCR
(Texas Util. Electric Co.) PUT 5.40% 5/1/2006 25,000 24,944
Brazos River Auth. Texas PCR
(Texas Util. Electric Co.) PUT 5.75% 11/1/2011 3,500 3,439
Brazos River TX Harbor Navigation Dist. Brazoria County
Environmental (Dow Chemical Co. Project) PUT 5.20% 5/15/2008 66,000 68,303
Carrollton TX Independent School Dist. GO 6.00% 2/15/2009 (Prere.) 2,760 3,239
Carrollton TX Independent School Dist. GO 6.00% 2/15/2009 (Prere.) 3,105 3,644
Dallas TX Civic Center Refunding &
Improvement Rev. 4.80% 8/15/2011 (1) 4,635 4,962
Dallas TX Independent School Dist. GO 5.60% 8/15/2003 (Prere.) 2,220 2,249
Dallas TX Independent School Dist. GO 5.70% 8/15/2003 (Prere.) 1,230 1,246
Dallas TX Independent School Dist. GO 5.70% 8/15/2003 (Prere.) 1,180 1,196
Dallas TX Independent School Dist. GO 5.30% 8/15/2005 (Prere.) 3,780 4,108
Dallas TX Independent School Dist. GO 5.40% 8/15/2005 (Prere.) 7,890 8,593
Dallas TX Independent School Dist. GO 5.50% 8/15/2005 (Prere.) 18,300 19,971
Dallas TX Independent School Dist. GO 5.30% 8/15/2008 1,220 1,319
Harris County TX Health Fac. Dev. Corp. Rev.
(Christus Health) 5.25% 7/1/2004 9,000 9,346
Harris County TX Health Fac. Dev. Corp. Rev.
(Methodist Hosp.) VRDO 1.35% 5/1/2003 21,200 21,200
Harris County TX Health Fac. Dev. Corp. Rev.
(St. Luke's Episcopal Hosp.) VRDO 1.35% 5/1/2003 16,425 16,425
Harris County TX Health Fac. Dev. Corp. Rev.
(Texas Medical Center) VRDO 1.35% 5/1/2003 (1) 4,100 4,100
Harris County TX Sports Auth. Rev. 0.00% 11/15/2023 (1) 7,000 2,429
Harris County TX Sports Auth. Rev. 0.00% 11/15/2025 (1) 11,000 3,361
Harris County TX Sports Auth. Rev. 0.00% 11/15/2027 (1) 11,000 2,984
Harris County TX Sports Auth. Rev. 0.00% 11/15/2031 (1) 7,570 1,648
Houston TX Airport System Rev. 5.75% 7/1/2011 (4) 6,560 7,291
==================================================================================================================================
73
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Houston TX Airport System Rev. 6.00% 7/1/2011 (3) 4,200 4,699
Houston TX Airport System Rev. 5.875% 7/1/2012 (4) 7,015 7,788
Houston TX Airport System Rev. 6.00% 7/1/2012 (3) 4,460 5,008
Houston TX Airport System Rev. 5.875% 7/1/2014 (4) 5,000 5,543
Houston TX Airport System Special Fac. Rev.
(Continental Airlines Inc.) 6.75% 7/1/2021 21,000 12,505
Houston TX Airport System Special Fac. Rev.
(Continental Airlines Inc.) 6.75% 7/1/2029 4,565 2,696
Houston TX GO 7.00% 3/1/2008 48,405 56,653
Houston TX GO 5.25% 3/1/2011 6,000 6,619
Houston TX GO 5.50% 3/1/2011 (4) 11,935 13,498
Houston TX GO 5.75% 3/1/2012 (4) 12,555 14,287
Houston TX GO 5.75% 3/1/2013 (4) 4,300 4,918
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.25% 7/1/2005 (4)(Prere.) 7,085 7,731
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.50% 9/1/2010 (2) 9,155 10,496
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.375% 9/1/2012 (2) 4,460 5,014
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.375% 9/1/2012 (2) 9,995 11,237
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.375% 9/1/2013 (2) 10,545 11,775
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.75% 9/1/2013 (2) 13,840 15,855
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.375% 9/1/2014 (2) 6,190 6,889
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.375% 9/1/2015 (2) 10,750 11,917
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.75% 9/1/2016 (2) 5,540 6,280
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 0.00% 9/1/2017 (2) 13,760 7,040
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.75% 9/1/2017 (2) 5,855 6,606
Houston TX Independent School Dist. GO 0.00% 8/15/2015 5,355 3,096
Houston TX Water & Sewer System Rev. 7.00% 12/1/2003 (2) 1,500 1,551
Houston TX Water & Sewer System Rev. 0.00% 12/1/2010 (2) 5,000 3,788
Houston TX Water & Sewer System Rev. 5.50% 12/1/2014 (4) 22,500 25,335
Houston TX Water & Sewer System Rev. 5.50% 12/1/2015 (4) 7,250 8,140
Lower Colorado River Auth. TX Rev. 5.50% 5/15/2010 (4) 4,155 4,700
Lower Colorado River Auth. TX Rev. 5.75% 5/15/2011 (4) 14,200 16,209
Lower Colorado River Auth. TX Rev. 5.00% 1/1/2012 (4)(ETM) 2,520 2,814
Lower Colorado River Auth. TX Rev. 5.375% 5/15/2012 (1) 3,975 4,456
Lower Colorado River Auth. TX Rev. 5.375% 5/15/2013 (1) 3,000 3,341
Lower Colorado River Auth. TX Rev. 5.375% 5/15/2014 (1) 4,475 4,964
Lower Colorado River Auth. TX Rev. 5.875% 5/15/2014 (4) 5,000 5,772
Lower Colorado River Auth. TX Rev. 5.875% 5/15/2015 (4) 24,000 27,708
Lower Colorado River Auth. TX Rev. 5.375% 5/15/2016 (1) 2,000 2,198
Lower Colorado River Auth. TX Rev. 5.375% 5/15/2017 (1) 3,000 3,277
==================================================================================================================================
74
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Lower Colorado River Auth. TX Rev. 5.375% 5/15/2019 (1) 3,000 3,238
Lower Colorado River Auth. TX Rev. 5.375% 5/15/2020 (1) 2,000 2,146
North Texas Health Fac. Dev. 5.75% 2/15/2010 (1) 4,115 4,588
Sabine River Auth. TX PCR
(Texas Util. Electric Co.) PUT 5.75% 11/1/2011 5,900 5,749
San Antonio TX Electric & Gas Rev. 5.80% 2/1/2006 6,120 6,676
San Antonio TX Electric & Gas Rev. 5.80% 2/1/2006 (ETM) 1,535 1,673
San Antonio TX Electric & Gas Rev. 5.80% 2/1/2006 (ETM) 345 376
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2007 (Prere.) 610 685
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2007 (Prere.) 725 815
San Antonio TX Electric & Gas Rev. 5.60% 2/1/2007 (Prere.) 745 847
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2009 (Prere.) 2,985 3,407
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2010 6,140 6,828
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2010 (Prere.) 7,635 8,577
San Antonio TX Electric & Gas Rev. 5.75% 2/1/2010 (Prere.) 20,440 23,791
San Antonio TX Electric & Gas Rev. 5.75% 2/1/2010 (Prere.) 10,205 11,878
San Antonio TX Electric & Gas Rev. 5.75% 2/1/2010 (Prere.) 12,100 14,084
San Antonio TX Electric & Gas Rev. 5.75% 2/1/2010 (Prere.) 9,200 10,708
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2012 5,515 6,097
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2013 3,890 4,289
San Antonio TX Electric & Gas Rev. 5.25% 2/1/2013 (Prere.) 2,110 2,408
San Antonio TX Electric & Gas Rev. 5.375% 2/1/2013 10,000 11,367
San Antonio TX Electric & Gas Rev. 5.375% 2/1/2015 7,250 8,250
San Antonio TX Electric & Gas Rev. 5.375% 2/1/2016 23,315 25,806
San Antonio TX Electric & Gas Rev. 5.375% 2/1/2017 13,025 14,326
San Antonio TX Electric & Gas Rev. 5.375% 2/1/2018 8,140 8,896
San Antonio TX Electric & Gas Rev. 5.375% 2/1/2019 10,000 10,860
Tarrant County TX Health Resources 5.75% 2/15/2013 (1) 7,670 8,448
Texas A & M Univ. Permanent Univ. Fund 5.25% 7/1/2016 10,360 11,552
Texas A & M Univ. Permanent Univ. Fund 5.25% 7/1/2017 10,000 11,071
Texas A & M Univ. Permanent Univ. Fund 5.25% 7/1/2018 10,000 10,992
Texas GO 8.00% 10/1/2007 50,000 62,005
Texas GO Public Finance Auth. 5.50% 10/1/2009 7,000 8,078
Texas GO Public Finance Auth. 5.50% 10/1/2012 13,455 15,334
Texas GO Public Finance Auth. 5.50% 10/1/2013 19,175 21,659
Texas GO Public Finance Auth. 5.375% 10/1/2014 21,310 24,135
Texas Muni. Power Agency Rev. 0.00% 9/1/2010 (2) 11,525 8,824
Texas Muni. Power Agency Rev. 0.00% 9/1/2010 (2)(ETM) 315 243
Texas Muni. Power Agency Rev. 0.00% 9/1/2012 (2)(ETM) 195 135
Texas Muni. Power Agency Rev. 0.00% 9/1/2012 (2) 4,980 3,412
Texas Muni. Power Agency Rev. 0.00% 9/1/2013 (1) 11,500 7,461
Texas Muni. Power Agency Rev. 0.00% 9/1/2014 (1) 5,600 3,438
Texas Muni. Power Agency Rev. 0.00% 9/1/2014 (1)(ETM) 65 40
Texas Muni. Power Agency Rev. 0.00% 9/1/2015 (1) 10,000 5,775
Texas Muni. Power Agency Rev. 0.00% 9/1/2017 (1)(ETM) 130 68
Texas Muni. Power Agency Rev. 0.00% 9/1/2017 (1) 11,700 5,994
Texas TOB VRDO 1.35% 5/7/2003 50,000 50,000
Texas Turnpike Auth. Central
Texas Turnpike System Rev. 5.00% 6/1/2008 53,195 59,194
Tomball TX Hosp. Auth. Rev. 5.75% 7/1/2014 8,500 8,906
Tomball TX Hosp. Auth. Rev. 6.00% 7/1/2019 3,600 3,735
------------
1,241,034
------------
==================================================================================================================================
75
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INTERMEDIATE-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH (0.5%)
Intermountain Power Agency Utah Power Supply Rev. 5.25% 7/1/2009 (1)(ETM) 5,180 5,814
Intermountain Power Agency Utah Power Supply Rev. 5.25% 7/1/2009 (1) 36,060 40,475
Salt Lake City UT Building Auth. Lease Rev. 5.90% 10/1/2004 (1)(Prere.) 4,000 4,305
Utah Muni. Finance Coop. Local Govt. Rev. 0.00% 3/1/2010 (4) 7,000 5,473
------------
56,067
------------
VIRGIN ISLANDS (0.1%)
Virgin Islands Public Finance Auth. Rev. 6.375% 10/1/2019 5,865 6,535
------------
VIRGINIA (0.5%)
Chesapeake Bay Bridge & Tunnel Virginia 5.40% 7/1/2005 (3) 6,090 6,609
Virginia Beach VA Refunding & Public Improvement 5.25% 8/1/2010 9,690 10,866
Virginia Beach VA Refunding & Public Improvement 5.25% 8/1/2011 5,000 5,573
Virginia Beach VA Refunding & Public Improvement 5.25% 8/1/2012 3,000 3,339
Virginia Beach VA Refunding & Public Improvement 5.25% 8/1/2013 1,750 1,943
Virginia College Building Auth. Educ. Fac. Rev.
Public Higher Educ. 5.75% 9/1/2011 4,085 4,717
Virginia College Building Auth. Educ. Fac. Rev.
Public Higher Educ. 5.75% 9/1/2012 4,310 4,987
Virginia Public School Auth. Rev. 5.40% 6/1/2005 (Prere.) 5,750 6,334
Virginia Public School Auth. Rev. 5.00% 8/1/2008 7,675 8,630
Virginia Public School Auth. Rev. 5.25% 8/1/2008 5,585 6,348
------------
59,346
------------
WASHINGTON (0.9%)
Chelan County WA Public Util. Dist.
(Rock Island Hydro) 0.00% 6/1/2015 (1) 10,000 5,812
King County WA School Dist. GO 5.50% 12/1/2016 (3) 5,635 6,309
Seattle WA Muni. Light & Power Rev. 5.10% 5/1/2005 10,575 10,989
Seattle WA Water System Rev. 5.00% 12/1/2003 2,000 2,045
Seattle WA Water System Rev. 5.10% 12/1/2004 4,000 4,093
Snohomish County WA Mukilteo School Dist. 6.50% 12/1/2011 5,825 7,122
Snohomish County WA Public Util. Dist. TOB VRDO 1.30% 5/7/2003 (4) 12,900 12,900
Spokane WA Regional Solid Waste
Management System Rev. 6.50% 1/1/2008 (2) 3,500 4,041
Spokane WA Regional Solid Waste
Management System Rev. 6.50% 1/1/2009 (2) 3,000 3,493
Washington GO 6.00% 7/1/2003 5,200 5,243
Washington GO 5.75% 5/1/2004 (Prere.) 85 89
Washington GO 6.25% 2/1/2011 6,680 7,847
Washington GO 5.50% 7/1/2011 6,755 7,614
Washington GO 5.00% 1/1/2013 4,925 5,316
Washington GO 5.70% 10/1/2015 (4) 10,000 11,561
Washington Health Care Fac. Auth.
(Sisters of Providence) 6.00% 10/1/2003 (2) 5,270 5,373
Washington Health Care Fac. Auth.
(Sisters of Providence) 6.00% 10/1/2004 (2) 5,515 5,863
Washington Health Care Fac. Auth.
(Sisters of Providence) 6.00% 10/1/2005 (2) 4,830 5,308
------------
111,018
------------
WEST VIRGINIA (0.2%)
West Virginia Building Comm. Rev. 5.25% 7/1/2008 (1) 2,150 2,418
West Virginia GO 5.25% 6/1/2016 (4) 10,000 10,985
West Virginia School Building Auth. Rev. 5.30% 7/1/2009 (2) 8,000 9,024
West Virginia State Road GO 5.75% 6/1/2013 5,000 5,747
------------
28,174
------------
==================================================================================================================================
76
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (1.1%)
Green Bay WI PCR (Procter & Gamble) 5.15% 5/1/2004 9,600 9,946
Wisconsin GO 5.20% 5/1/2006 (Prere.) 4,150 4,578
Wisconsin GO 5.75% 5/1/2011 (Prere.) 20,315 23,790
Wisconsin GO 5.75% 5/1/2011 (Prere.) 20,000 23,422
Wisconsin GO 5.75% 5/1/2012 18,000 20,688
Wisconsin GO 5.50% 5/1/2013 (1) 7,000 8,066
Wisconsin GO 5.50% 5/1/2014 (1) 18,000 20,836
Wisconsin GO 5.25% 5/1/2015 (1) 5,000 5,485
Wisconsin GO 5.50% 5/1/2015 (1) 10,000 11,616
------------
128,427
------------
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $11,130,412) 11,793,215
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.2%)
Other Assets-Note B 204,875
Liabilities (62,455)
------------
142,420
------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%) $11,935,635
==================================================================================================================================
- - See Note A in Notes to Financial Statements.
* Securities with a value of $16,642,000 have been segregated as initial margin
for open futures contracts.
**Non-income-producing security-interest payments in default.
++Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be sold in transactions exempt from registration,
normally to qualified institutional buyers. At April 30, 2003, the value of
this security was $50,000,000, representing 0.4% of net assets.
For key to abbreviations and other references, see page 108.
================================================================================
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
AMOUNT
(000)
- --------------------------------------------------------------------------------
Paid-in Capital $11,388,037
Undistributed Net Investment Income -
Accumulated Net Realized Losses (108,124)
Unrealized Appreciation (Depreciation)
Investment Securities 662,803
Futures Contracts (7,081)
- --------------------------------------------------------------------------------
NET ASSETS $11,935,635
================================================================================
Investor Shares-Net Assets
Applicable to 530,496,847 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $7,243,061
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-INVESTOR SHARES $13.65
================================================================================
Admiral Shares-Net Assets
Applicable to 343,693,636 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $4,692,574
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-ADMIRAL SHARES $13.65
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
77
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED lONG TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (100.2%)
- ----------------------------------------------------------------------------------------------------------------------------------
ALABAMA (0.5%)
Medical Clinic Board of Bessemer AL Rev.
(Bessemer Carraway Hosp.) 7.25% 4/1/2015 (1) $ 5,000 $ 5,021
Medical Clinic Board of Montgomery AL Rev.
(Jackson Hosp.) 6.00% 3/1/2026(2) 5,500 6,113
Mobile AL Water & Sewer Comm. 5.50% 1/1/2010 (3) 4,000 4,336
--------
15,470
--------
ALASKA (0.4%)
Anchorage AK Electric Rev. 8.00% 12/1/2009 (1) 2,565 3,332
Anchorage AK Electric Rev. 8.00% 12/1/2010 (1) 2,960 3,887
North Slope Borough AK GO 0.00% 6/30/2010 (1) 4,000 3,078
Valdez AK Marine Terminal Rev.
(Exxon Pipeline Co.) VRDO 1.30% 5/1/2003 1,700 1,700
--------
11,997
--------
ARIZONA (3.2%)
Arizona State Univ. COP 5.375% 7/1/2013 (1) 2,905 3,288
Arizona State Univ. COP 5.375% 7/1/2014 (1) 4,340 4,894
Arizona State Univ. COP 5.375% 7/1/2015 (1) 4,905 5,506
Arizona State Univ. COP 5.375% 7/1/2016 (1) 5,345 5,965
Arizona State Univ. COP 5.375% 7/1/2017 (1) 4,460 4,945
Arizona State Univ. COP 5.375% 7/1/2018 (1) 5,520 6,080
Arizona State Univ. COP 5.375% 7/1/2019 (1) 2,285 2,500
Maricopa County AZ Rev.
(Samaritan Health Service) 7.00% 12/1/2016 (1)(ETM) 8,650 11,231
Mesa AZ Util. System Rev. 5.25% 7/1/2014 (3) 10,000 11,437
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.75% 7/1/2015 (3) 5,290 5,852
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.75% 7/1/2016 (3) 5,595 6,177
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.875% 7/1/2017 (3) 5,915 6,572
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.875% 7/1/2019 (3) 6,630 7,361
Phoenix AZ Civic Improvement Corp. Airport Rev. 5.875% 7/1/2020 (3) 6,770 7,497
Tucson AZ Water System Rev. 5.50% 7/1/2017 (3) 4,850 5,499
---------
94,804
---------
ARKANSAS (0.3%)
North Little Rock AR Electric Rev. 6.50% 7/1/2010 (1) 3,500 4,231
North Little Rock AR Electric Rev. 6.50% 7/1/2015 (1) 4,500 5,563
---------
9,794
---------
CALIFORNIA (8.0%)
Alameda CA Corridor Transp. Auth. Rev. 0.00% 10/1/2030 (1) 22,625 5,291
California Dept. of Water Resources Water System Rev.
(Central Valley) 5.25% 12/1/2015 (3) 7,000 7,887
California Dept. of Water Resources Water System Rev.
(Central Valley) 5.25% 12/1/2016 (3) 10,000 11,187
California Dept. of Water Resources Water System Rev.
(Central Valley) 5.25% 12/1/2017 (3) 10,050 11,163
California Dept. of Water Resources Water System Rev.
(Central Valley) 5.25% 12/1/2018 (3) 7,890 8,695
California Dept. of Water Resources Water System Rev.
(Central Valley) 5.25% 12/1/2019 (3) 5,310 5,810
California Health Fac. Finance Auth. Rev.
(Pomona Valley Hosp.) 5.75% 7/1/2015 (1) 8,205 9,368
California Housing Finance Agency Home
Mortgage Rev. VRDO 1.28% 5/1/2003 (4) 5,000 5,000
78
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
California Infrastructure & Econ. Dev.
Bank Rev. VRDO 1.35% 5/1/2003 (2) $20,800 $ 20,800
California RAN FR 1.32% 5/7/2003 10,000 9,985
California RAN FR 1.37% 5/7/2003 20,000 19,930
Los Angeles CA Unified School Dist. GO 5.25% 7/1/2019 (4) 9,000 9,853
Los Angeles CA Unified School Dist. GO 5.25% 7/1/2020 (4) 9,000 9,798
Modesto CA Irrigation Dist. Finance Auth. Rev.
(Woodland Project) 6.50% 10/1/2022 (2)(ETM) 20,225 25,700
MSR California Public Power Agency
(San Juan Project) 6.125% 7/1/2013 (2) 9,000 10,818
MSR California Public Power Agency
(San Juan Project) 6.75% 7/1/2020 (1)(ETM) 12,895 16,309
Pasadena CA COP (City Hall & Park Improvement
Project) VRDO 1.35% 5/7/2003 (2) 6,000 6,000
Sacramento CA Muni. Util. Dist. Rev. 6.50% 9/1/2013 (1) 8,895 10,823
San Joaquin Hills CA Transp. Corridor
Agency Toll Road Rev. 0.00% 1/15/2032 (1) 70,150 15,408
San Joaquin Hills CA Transp. Corridor
Agency Toll Road Rev. 0.00% 1/15/2034 (1) 8,135 1,603
San Joaquin Hills CA Transp. Corridor
Agency Toll Road Rev. 0.00% 1/15/2036 (1) 5,000 879
Santa Clara CA Redev. Agency (Bayshore North) 7.00% 7/1/2010 (2) 2,000 2,423
Santa Rosa CA Waste Water Rev. 6.00% 9/1/2015 (3) 5,000 5,967
Ukiah CA Electric Rev. 6.25% 6/1/2018 (1) 6,330 7,842
---------
238,539
---------
COLORADO (5.4%)
Colorado Springs CO Util. System Rev. 5.375% 11/15/2016 (2) 12,790 14,313
Colorado Springs CO Util. System Rev. 5.375% 11/15/2017 (2) 13,490 14,994
Colorado Springs CO Util. System Rev. 5.375% 11/15/2018 (2) 10,000 11,040
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2008 (1) 14,355 12,265
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2009 (1) 16,500 13,415
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2015 (1) 5,795 3,343
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2019 (1) 8,000 3,593
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2024 (1) 17,000 5,569
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2025 (1) 4,900 1,507
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2029 (1) 23,500 5,761
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2030 (1) 20,000 4,648
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2032 (1) 41,000 8,544
E-470 Public Highway Auth. Colorado Rev. 5.75% 9/1/2035 (1) 9,750 10,950
Northern Colorado Water Conservation Dist. Rev. 6.50% 12/1/2012 (2) 20,575 24,123
Northwest Parkway Public Highway Auth.
Colorado Convertible Capital Appreciation 0.00% 6/15/2018 (4) 5,960 4,345
Northwest Parkway Public Highway Auth.
Colorado Convertible Capital Appreciation 0.00% 6/15/2021 (2) 15,000 10,685
Northwest Parkway Public Highway Auth.
Colorado Convertible Capital Appreciation 0.00% 6/15/2025 (4) 16,000 11,141
---------
160,236
---------
CONNECTICUT (0.7%)
Connecticut GO 5.125% 11/15/2016 10,000 10,898
Connecticut GO 5.125% 11/15/2017 5,000 5,415
Connecticut GO 5.125% 11/15/2018 5,000 5,385
---------
21,698
---------
DELAWARE (0.5%)
Delaware Health Fac. Auth.
(Delaware Medical Center) 7.00% 10/1/2004 (1)(Prere.) 6,000 6,370
Dover DE Electric Rev. 6.10% 7/1/2011 (3) 2,000 2,048
Dover DE Electric Rev. 5.75% 7/1/2015 (3) 5,225 5,347
--------
13,765
--------
79
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED lONG TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
FLORIDA (3.3%)
Broward County FL Airport System Rev. 5.25% 10/1/2010 (1) $11,365 $ 12,460
Davie FL Water & Sewer Rev. 6.375% 10/1/2012 (2) 2,620 3,225
Miami-Dade County FL School Board COP 6.00% 10/1/2017 (4) 5,765 6,764
Orange County FL Health Fac. Auth. Rev.
(Adventist Sunbelt Group) 6.25% 11/15/2010 (2) 4,000 4,530
Orlando & Orange County FL Expressway Auth. 8.25% 7/1/2013 (3) 9,695 13,370
Palm Beach County FL Criminal Justice Fac. Rev. 7.20% 6/1/2015 (3) 4,000 5,298
Sarasota County FL Public Hosp. Rev.
(Sarasota Memorial Hosp.) 5.75% 10/1/2017 (1) 14,500 16,374
Tampa FL Util. Rev. 6.75% 10/1/2010 (2) 9,330 11,535
Tampa FL Util. Rev. 6.75% 10/1/2011 (2) 9,965 12,453
Tampa FL Util. Rev. 6.75% 10/1/2012 (2) 10,635 13,409
-------
99,418
-------
GEORGIA (3.8%)
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2015 (3) 8,500 9,937
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2016 (3) 7,000 8,183
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2017 (3) 8,000 9,349
Atlanta GA Water & Wastewater Rev. VRDO 1.40% 5/1/2003 (4) 3,500 3,500
Burke County GA Dev. Auth. PCR
(Oglethorpe Power Corp.) VRDO 1.35% 5/1/2003 (2) 2,015 2,015
Burke County GA Dev. Auth. PCR
(Oglethorpe Power Corp.) VRDO 1.33% 5/7/2003 (3)(Prere.) 14,310 14,310
Dalton County GA Dev. Auth.
(Hamilton Health Care System) 5.50% 8/15/2026 (1) 12,000 13,313
George L. Smith Georgia World Congress Center Auth. Rev.
(Domed Stadium) 5.70% 7/1/2013 (1) 5,000 5,548
George L. Smith Georgia World Congress Center Auth. Rev.
(Domed Stadium) 5.75% 7/1/2014 (1) 5,000 5,588
George L. Smith Georgia World Congress Center Auth. Rev.
(Domed Stadium) 5.75% 7/1/2015 (1) 3,680 4,091
George L. Smith Georgia World Congress Center Auth. Rev.
(Domed Stadium) 5.50% 7/1/2020 (1) 24,740 26,292
Henry County GA School Dist. GO 6.45% 8/1/2011 (1) 4,000 4,774
Private Colleges & Univ. Fac. Auth. of Georgia Rev.
(Mercer Univ.) 6.50% 11/1/2015 (1)(ETM) 5,000 6,237
--------
113,137
--------
HAWAII (4.6%)
Hawaii Airport System Rev. 6.35% 7/1/2007 (1) 8,000 8,225
Hawaii Airport System Rev. 5.75% 7/1/2016 (3) 16,245 17,958
Hawaii Airport System Rev. 5.75% 7/1/2017 (3) 12,175 13,371
Hawaii Dept. of Budget & Finance (Hawaii
Electric Co. Inc.) 4.95% 4/1/2012 (1) 15,000 16,360
Hawaii Dept. of Budget & Finance (Hawaii
Electric Co. Inc.) 5.65% 10/1/2027 (1) 9,750 10,399
Hawaii GO 5.875% 9/1/2009 (4)(Prere.) 5,110 6,065
Hawaii GO 5.50% 7/1/2014 (4) 16,305 18,569
Hawaii Highway Rev. 5.25% 7/1/2011 1,150 1,275
Honolulu HI City & County GO 8.00% 10/1/2010 8,695 11,303
Honolulu HI City & County GO 8.00% 10/1/2010 (ETM) 2,305 3,042
Univ. of Hawaii Univ. System Rev. 5.50% 7/15/2018 (3) 4,615 5,136
Univ. of Hawaii Univ. System Rev. 5.50% 7/15/2019 (3) 2,330 2,576
Univ. of Hawaii Univ. System Rev. 5.50% 7/15/2029 (3) 21,000 22,535
--------
136,814
--------
80
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (7.5%)
Chicago IL Board of Educ. GO 5.50% 12/1/2031 (3) $ 7,000 7,551
Chicago IL GO 0.00% 1/1/2020 (1) 5,000 3,684
Chicago IL GO 0.00% 1/1/2022 (1) 5,000 3,620
Chicago IL GO 0.00% 1/1/2024 (1) 9,490 6,740
Chicago IL GO 0.00% 1/1/2025 (1) 5,000 3,540
Chicago IL GO 0.00% 1/1/2028 (1) 10,805 7,626
Chicago IL GO 5.50% 1/1/2038 (1) 24,845 26,446
Chicago IL Midway Airport Rev. 5.50% 1/1/2014 (4) 6,410 6,993
Chicago IL Midway Airport Rev. 5.50% 1/1/2015 (4) 4,760 5,174
Chicago IL Midway Airport Rev. 5.50% 1/1/2016 (4) 7,135 7,716
Chicago IL Midway Airport Rev. 5.50% 1/1/2017 (4) 7,525 8,087
Chicago IL Midway Airport Rev. 5.50% 1/1/2018 (4) 7,940 8,481
Chicago IL Neighborhoods Alive GO 5.50% 1/1/2036 (3) 4,950 5,242
Chicago IL Neighborhoods Alive GO 5.75% 1/1/2040 (3) 6,250 6,954
Chicago IL O'Hare International Airport Rev. 5.50% 1/1/2015 (2) 10,000 10,800
Chicago IL Public Building Comm. GO 7.00% 1/1/2020 (1)(ETM)* 21,500 28,367
Chicago IL Water Rev. 5.75% 11/1/2030 (2) 12,000 14,141
Cook County IL GO 7.25% 11/1/2007 (1)(ETM) 715 819
Cook County IL GO 7.25% 11/1/2007 (1)(ETM) 5,285 6,212
Illinois Dev. Finance Auth. PCR
(Illinois Power Co.) 7.40% 12/1/2024 (1) 14,000 15,511
Illinois Educ. Fac. Auth. Rev.
(Adler Planetarium) VRDO 1.35% 5/7/2003 LOC 800 800
Illinois Health Fac. Auth. Rev. (Univ. of Chicago
Hosp. & Health Systems) VRDO 1.35% 5/1/2003 (1) 5,395 5,395
Illinois Regional Transp. Auth. (Cook, DuPage, and
Kane Counties) GO 7.20% 11/1/2020 (2) 24,000 32,399
--------
222,298
-------
INDIANA (0.5%)
Indiana Muni. Power Agency Rev. 6.125% 1/1/2013 (1)(ETM) 13,250 15,634
Kansas (0.4%)
Kansas Health System Dev. Auth.
(St. Luke Mission) 5.375% 11/15/2006 (1)(Prere.) 6,300 7,186
Kansas Health System Dev. Auth.
(St. Luke Mission) 5.375% 11/15/2016 (1) 3,000 3,223
-------
10,409
-------
KENTUCKY (2.4%)
Jefferson County KY Health Fac. Rev.
(Jewish Hosp. Health) 5.75% 1/1/2026 (2) 3,000 3,277
Kentucky Econ. Dev. Finance Auth. Hosp. Fac. Rev.
(Baptist Healthcare) VRDO 1.35% 5/1/2003 (1) 2,300 2,300
Kentucky Property & Building Comm. Rev. 5.00% 8/1/2003 (4) 2,785 2,812
Louisville & Jefferson County KY Metro.
Sewer Dist. 6.00% 5/15/2031 (3) 51,960 60,096
Louisville & Jefferson County KY Metro.
Sewer Dist. 5.75% 5/15/2033 (3) 2,335 2,622
------
71,107
------
LOUISIANA (1.0%)
New Orleans LA GO 0.00% 9/1/2010 (2) 8,500 6,536
New Orleans LA GO 0.00% 9/1/2011 (2) 10,475 7,604
New Orleans LA GO 0.00% 9/1/2013 (2) 9,000 5,875
Ouachita Parish LA Hosp. Service
(Glenwood Medical Center) 5.70% 5/15/2016 (4) 4,900 5,409
Ouachita Parish LA Hosp. Service
(Glenwood Medical Center) 5.75% 5/15/2021 (4) 2,950 3,174
--------
28,598
--------
81
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED lONG TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
MARYLAND (1.6%)
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Medlantic/Helix) 5.25% 8/15/2038 (4) $30,000 $ 32,337
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 7.00% 7/1/2022 (3) 12,025 15,692
--------
48,029
--------
MASSACHUSETTS (5.1%)
Massachusetts College Building Auth. Rev. 0.00% 5/1/2017 (1)(ETM) 7,460 4,022
Massachusetts Dev. Finance Agency Rev.
(Brooks School) VRDO 1.35% 5/7/2003 (1) 2,500 2,500
Massachusetts GAN 5.75% 6/15/2012 (4) 10,000 11,452
Massachusetts GAN 5.75% 6/15/2013 10,000 11,463
Massachusetts GAN 5.75% 6/15/2014 10,000 11,471
Massachusetts GO 7.00% 7/1/2009 (3)(ETM) 22,250 26,909
Massachusetts GO 5.50% 11/1/2019 14,155 15,585
Massachusetts GO 5.50% 11/1/2020 19,275 21,111
Massachusetts GO VRDO 1.35% 5/1/2003 1,800 1,800
Massachusetts Health & Educ. Fac. Auth. Rev.
(Boston College) 6.75% 7/1/2011 (3) 210 213
Massachusetts Health & Educ. Fac. Auth. Rev.
(Harvard Univ.) VRDO 1.20% 5/7/2003 4,900 4,900
Massachusetts Health & Educ. Fac. Auth. Rev.
(Lahey Clinic Medical Center) 7.85% 7/1/2003 (1) 3,000 3,033
Massachusetts Health & Educ. Fac. Auth. Rev.
(Massachusetts General Hosp.) 6.25% 7/1/2012 (2) 19,150 22,584
Massachusetts Muni. Wholesale Electric Co.
Power System Rev. 5.25% 7/1/2014 (1) 11,135 12,328
Massachusetts Water Resources Auth. Rev. VRDO 1.40% 5/1/2003 LOC 1,500 1,500
Massachusetts Water Resources Auth. Rev. VRDO 1.35% 5/7/2003 (3) 2,200 2,200
---------
153,071
---------
MICHIGAN (3.1%)
Detroit MI Sewer System Rev. 5.45% 7/1/2007 (3)(ETM) 6,850 7,691
Detroit MI Sewer System Rev. 5.75% 1/1/2010 (3)(Prere.) 5,000 5,853
Detroit MI Water Supply System 5.50% 7/1/2033 (3) 22,000 23,595
Michigan Strategic Fund (Detroit Edison) 7.00% 7/15/2008 (1) 18,375 22,329
Monroe County MI Econ. Dev. Corp. (Detroit Edison)6.95% 9/1/2022 (3) 25,000 33,023
---------
92,491
---------
MINNESOTA (1.7%)
Minneapolis & St. Paul MN Metro. Airport 5.20% 1/1/2024 (2) 7,000 7,300
St. Cloud MN Health Care Rev.
(St. Cloud Hosp. Obligation Group) 5.75% 5/1/2026 (4) 37,665 40,671
St. Cloud MN Health Care Rev.
(St. Cloud Hosp. Obligation Group) 5.875% 5/1/2030 (4) 2,500 2,726
--------
50,697
--------
MISSOURI (0.2%)
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(Lester Cox Medical Center) 5.25% 6/1/2015 (1) 5,000 5,610
------
NEBRASKA (0.4%)
Nebraska Public Power Dist. Rev. 0.00% 1/1/2008 (1) 15,000 13,131
------
81
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Nevada (1.2%)
Clark County NV GO 6.50% 6/1/2017 (2) $ 5,000 $ 6,311
Clark County NV School Dist. GO VRDO 1.30% 5/1/2003 (4) 28,600 28,600
--------
34,911
--------
NEW JERSEY (7.7%)
Atlantic County NJ Public Fac. COP 7.40% 3/1/2012 (3) 4,335 5,552
Hoboken-Union City-Weehawken NJ
Sewerage Auth. Rev. 6.25% 8/1/2014 (1) 10,185 12,504
Hoboken-Union City-Weehawken NJ
Sewerage Auth. Rev. 6.25% 8/1/2015 (1) 10,820 13,385
New Jersey Econ. Dev. Auth. Rev.
(Transp. Project) 5.875% 5/1/2015 (4) 10,000 11,551
New Jersey Econ. Dev. Auth. Water Fac. Rev.
(United Water Co.) VRDO 1.30% 5/1/2003 (2) 3,800 3,800
New Jersey Health Care Fac. Financing Auth. Rev.
(St. Barnabas Health Care) 5.25% 7/1/2015 (1) 5,750 6,326
New Jersey Health Care Fac. Financing Auth. Rev.
(St. Clares Riverside Medical Center) 5.75% 7/1/2014 (1) 3,000 3,197
New Jersey Health Care Fac. Financing Auth. Rev.
(Virtua Health) 5.25% 7/1/2014 (4) 10,685 11,797
New Jersey Sports & Exposition Auth. Rev. 6.50% 3/1/2013 (1) 18,795 22,818
New Jersey Transit Corp. Capital GAN 5.50% 2/1/2010 (2) 64,260 64,489
New Jersey Transit Corp. Capital GAN 5.50% 2/1/2011 (2) 22,315 22,388
New Jersey Turnpike Auth. Rev. 6.50% 1/1/2013 (1) 30,000 36,802
New Jersey Turnpike Auth. Rev. 6.50% 1/1/2016 (1) 5,000 6,169
New Jersey Turnpike Auth. Rev. VRDO 1.30% 5/7/2003 (3) LOC 8,900 8,900
---------
229,678
---------
NEW MEXICO (1.3%)
Albuquerque NM Hosp. System Rev.
(Presbyterian Health) 6.375% 8/1/2007 (1) 4,000 4,092
Farmington NM Util. System Rev. 5.75% 5/15/2013 (3)(ETM) 1,500 1,560
New Mexico Highway Comm. Tax Rev. 5.25% 6/15/2010 7,750 8,779
New Mexico Highway Comm. Tax Rev. 5.25% 6/15/2012 (1) 19,720 21,880
New Mexico Highway Comm. Tax Rev. 6.00% 6/15/2015 3,000 3,513
---------
39,824
---------
NEW YORK (9.9%)
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2013 (4) 17,500 11,728
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 6.00% 4/1/2020 (1)(ETM) 18,000 21,940
Metro. New York Transp. Auth. Rev.
(Transit Rev.) VRDO 1.35% 5/7/2003 (4) 11,145 11,145
Metro. New York Transp. Auth. Rev. VRDO 1.35% 5/7/2003 (4) 2,300 2,300
New York City NY GO VRDO 1.35% 5/1/2003 (1) 1,400 1,400
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.375% 6/15/2016 (4) 31,265 34,852
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.40% 5/1/2003 (3) 23,400 23,400
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.40% 5/1/2003 (3) 29,550 29,550
New York City NY Transitional Finance Auth. Rev. 5.50% 11/1/2013 (3) 25,485 29,029
New York City NY Transitional Finance Auth. Rev. 5.50% 11/1/2014 (2) 13,000 14,805
New York City NY Transitional Finance Auth. Rev. 5.50% 11/1/2014 (3) 14,510 16,574
New York City NY Transitional Finance Auth.
Rev. VRDO 1.40% 5/1/2003 3,700 3,700
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care) 4.70% 11/1/2008 (1) 6,525 7,214
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care) 4.80% 11/1/2009 (1) 12,595 13,879
83
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED lONG TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care) 4.90% 11/1/2010 (1) $ 4,185 $ 4,556
New York State Medical Care Fac. Finance Agency Rev.
(Mental Health Services) 6.00% 8/15/2015 (1) 195 212
New York State Thruway Auth. Rev.
(Service Contract) 5.75% 4/1/2010 (2)(Prere.) 2,500 2,950
New York State Thruway Auth. Rev.
(Service Contract) 5.75% 4/1/2010 (2)(Prere.) 4,000 4,719
New York State Thruway Auth. Rev.
(Service Contract) 5.25% 4/1/2017 4,200 4,556
New York State Thruway Auth. Rev.
(Service Contract) 5.25% 4/1/2018 7,275 7,846
New York State Thruway Auth. Rev.
(Service Contract) 5.25% 4/1/2019 14,125 15,154
Suffolk County NY Water Auth. Rev. 5.75% 6/1/2013 (2)(ETM) 7,345 7,515
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 1/1/2022 (Prere.) 12,325 13,783
Triborough Bridge & Tunnel Auth. New York Rev. 5.50% 1/1/2022 (Prere.) 7,000 8,053
Triborough Bridge & Tunnel Auth. New York Rev.
VRDO 1.30% 5/7/2003 (4) 2,500 2,500
--------
293,360
--------
NORTH CAROLINA (0.5%)
North Carolina Medical Care Rev.
(Wake County Hosp.) 5.25% 10/1/2017 (1) 13,750 14,835
-------
NORTH DAKOTA (0.3%)
Mercer County ND PCR (Basin Electric Power) 6.05% 1/1/2019 (2) 9,500 10,312
-------
OHIO (1.7%)
Cleveland OH Airport System Rev. VRDO 1.35% 5/7/2003 (4) 6,400 6,400
Cuyahoga County OH Hosp. Refunding &
Improvement Rev. (Univ. Hosp.) 5.625% 1/15/2021 (1) 11,480 12,615
Franklin County OH Convention Center Rev. 0.00% 12/1/2006 (1) 4,355 4,045
Kent State Univ. Ohio VRDO 1.35% 5/7/2003 (1) 14,000 14,000
Ohio Air Quality Dev. Auth.
(Cincinnati Gas & Electric Co.) VRDO 1.30% 5/1/2003 LOC 700 700
Ohio GO 7.625% 8/1/2009 4,345 5,518
Ohio GO VRDO 1.35% 5/7/2003 4,600 4,600
Ohio Higher Educ. Fac. Comm. Rev.
(Case Western Reserve Univ.) VRDO 1.40% 5/1/2003 3,700 3,700
--------
51,578
--------
OREGON (1.2%)
Oregon Health, Housing, Educ. & Cultural Fac. Auth.
(Lewis & Clark College) 6.00% 10/1/2013 (1) 2,250 2,433
Oregon State Dept. Administrative Services 6.00% 5/1/2010 (2)(Prere.) 6,190 7,379
Oregon State Dept. Administrative Services 6.00% 5/1/2010 (2)(Prere.) 6,565 7,826
Oregon State Dept. Administrative Services 6.00% 5/1/2010 (2)(Prere.) 3,175 3,785
Portland OR Sewer System Rev. 5.50% 6/1/2017 (1) 14,250 15,596
--------
37,019
--------
PENNSYLVANIA (5.7%)
Allegheny County PA Airport Rev.
(Pittsburgh International Airport) 5.75% 1/1/2013 (1) 4,000 4,563
Armstrong County PA Hosp. Auth. Rev. 6.25% 6/1/2013 (2) 18,400 18,839
Dauphin County PA General Auth. Health
System Rev. (Pinnacle Health) 5.50% 8/15/2028 (1) 9,415 10,483
Lehigh County PA General Purpose Hosp. Auth. Rev.
(Lehigh Valley Health Network) VRDO 1.28% 5/1/2003 (1) 8,290 8,290
Lehigh County PA General Purpose Hosp. Auth. Rev.
(Lehigh Valley Health Network) VRDO 1.28% 5/1/2003 (2) 4,800 4,800
Pennsylvania Convention Center Auth. Rev. 6.70% 9/1/2016 (3)(ETM) 9,970 12,525
84
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Convention Center Auth. Rev. 6.00% 9/1/2019 (3)(ETM) $10,000 $ 12,151
Pennsylvania Higher Educ. Fac. Auth. Health Services Rev.
(Allegheny/Delaware Valley Obligated Group) 5.875% 11/15/2016 (1) 10,000 11,302
Pennsylvania Higher Educ. Fac. Auth. Health Services Rev.
(Allegheny/Delaware Valley Obligated Group) 5.875% 11/15/2016 (1) 10,000 11,302
Pennsylvania Higher Educ. Fac. Auth. Rev.
(State System of Higher Educ.) 5.50% 7/1/2015 (2) 20,805 23,790
Philadelphia PA Water & Waste Water Rev. 7.00% 6/15/2010 (3) 15,000 18,525
Philadelphia PA Water & Waste Water Rev. 7.00% 6/15/2011 (3) 16,500 20,554
Pittsburgh PA Water & Sewer Auth. Rev. 7.25% 9/1/2014 (3)(ETM) 5,000 6,288
South Fork PA Hosp. Auth. Rev.
(Conemaugh Valley Hosp.) VRDO 1.28% 5/1/2003 (1) 6,100 6,100
--------
169,512
--------
PUERTO RICO (0.1%)
Puerto Rico Govt. Dev. Bank VRDO 1.15% 5/7/2003 (1) 2,800 2,800
SOUTH CAROLINA (0.5%)
South Carolina Public Service Auth. Rev. 6.25% 1/1/2022 (2) 13,000 14,577
South Dakota (0.4%)
South Dakota Health & Educ. Fac. Auth. Rev.
(McKennan Hosp.) 7.625% 1/1/2008 (1)(Prere.) 10,065 12,206
TENNESSEE (1.4%)
Metro. Govt. of Nashville & Davidson County TN GO 5.50% 10/15/2014 (3) 16,950 19,259
Metro. Govt. of Nashville & Davidson County TN
Health & Educ. Fac. Board Rev.
(Meharry Medical College) 6.00% 12/1/2012 (2) 3,405 4,066
Shelby County TN GO 5.25% 4/1/2015 12,750 14,045
Tennessee Health, Educ. & Housing Fac.
(Methodist Health System) 5.50% 8/1/2012 (1) 815 881
Tennessee Health, Educ. & Housing Fac.
(Methodist Health System) 5.50% 8/1/2012 (1)(ETM) 1,685 1,936
--------
40,187
--------
TEXAS (10.0%)
Dallas-Fort Worth TX International Airport Rev. 5.75% 11/1/2015 (3) 10,000 11,182
Harris County TX GO 0.00% 10/1/2015 (1) 17,545 10,096
Harris County TX Health Fac. Dev. Corp. Rev.
(Methodist Hosp.) VRDO 1.35% 5/1/2003 1,800 1,800
Harris County TX Health Fac. Dev. Corp. Rev.
(Texas Medical Center) VRDO 1.35% 5/1/2003 (1) 30,500 30,500
Harris County TX Hosp. Dist. Rev. 6.00% 2/15/2013 (1) 12,910 14,582
Houston TX GO 5.375% 3/1/2013 (4) 6,500 7,238
Houston TX GO 5.375% 3/1/2015 (4) 6,485 7,162
Houston TX GO 5.50% 3/1/2015 (4) 8,440 9,410
Houston TX GO 5.375% 3/1/2016 (4) 4,210 4,626
Houston TX GO 5.50% 3/1/2016 (4) 5,235 5,803
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 0.00% 9/1/2020 (2) 16,695 7,056
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 0.00% 9/1/2029 (2) 23,565 5,762
85
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
INSURED lONG TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 0.00% 9/1/2030 (2) 12,940 $ 3,000
Houston TX Water & Sewer System Rev. 5.50% 12/1/2016 (4) 7,000 7,810
Houston TX Water & Sewer System Rev. 5.375% 12/1/2027 (3) 5,000 5,307
Houston TX Water & Sewer System Rev. 5.375% 12/1/2027 (3) 17,000 18,045
Houston TX Water Conveyance System COP 6.80% 12/15/2010 (2) 5,490 6,720
Lower Colorado River Auth. TX Rev. 6.00% 5/15/2013 (4) 12,500 14,617
Lower Colorado River Auth. TX Rev. 5.625% 1/1/2015 (4)(Prere.) 3,055 3,592
Lower Colorado River Auth. TX Rev. 5.875% 5/15/2015 (4) 8,000 9,236
Northeast Texas Hosp. Auth.
(Northeast Medical Center) 6.00% 5/15/2009 (4) 3,945 4,532
Northeast Texas Hosp. Auth.
(Northeast Medical Center) 6.00% 5/15/2010 (4) 2,000 2,299
Northeast Texas Hosp. Auth.
(Northeast Medical Center) 5.625% 5/15/2017 (4) 7,425 8,085
Northeast Texas Hosp. Auth.
(Northeast Medical Center) 5.625% 5/15/2022 (4) 7,110 7,588
Texas Muni. Power Agency Rev. 0.00% 9/1/2014 (1) 34,585 21,234
Texas Muni. Power Agency Rev. 0.00% 9/1/2014 (1)(ETM) 415 258
Texas Muni. Power Agency Rev. 0.00% 9/1/2015 (1) 16,815 9,711
Texas Muni. Power Agency Rev. 0.00% 9/1/2015 (1)(ETM) 185 109
Texas Muni. Power Agency Rev. 0.00% 9/1/2016 (1) 13,500 7,351
Texas Muni. Power Agency Rev. 0.00% 9/1/2016 (1)(ETM) 150 83
Texas Muni. Power Agency Rev. 0.00% 9/1/2017 (1) 19,780 10,134
Texas Muni. Power Agency Rev. 0.00% 9/1/2017 (1)(ETM) 220 115
Texas Turnpike Auth. Dallas Northway Rev.
(President George Bush Turnpike) 0.00% 1/1/2010 (2) 6,000 4,711
Texas Water Dev. Board GO 5.75% 8/1/2026 5,595 6,133
Texas Water Dev. Board GO 5.75% 8/1/2032 10,380 11,325
Texas Water Dev. Board Rev. 5.50% 7/15/2021 9,825 10,728
Texas Water Finance Assistance GO 5.50% 8/1/2024 7,850 8,467
---------
296,407
---------
UTAH (0.9%)
Intermountain Power Agency Utah Power Supply Rev. 5.75% 7/1/2019 (1) 23,000 25,852
Virginia (0.6%)
Metro. Washington Airports Auth.
Airport System Rev. 5.625% 10/1/2013 (3) 4,050 4,523
Metro. Washington
Airports Auth. Airport System Rev. 5.75% 10/1/2014 (3) 5,270 5,974
Metro. Washington
Airports Auth. Airport System Rev. 5.75% 10/1/2015 (3) 5,585 6,294
--------
16,791
--------
WASHINGTON (1.3%)
Chelan County WA Public Util. Chelan Hydro
Consolidated System Rev. 6.05% 7/1/2032 (1) 19,440 21,969
Chelan County WA Public Util. Dist.
(Rock Island Hydro) 0.00% 6/1/2009 (1) 10,950 8,949
Chelan County WA Public Util. Dist.
(Rock Island Hydro) 0.00% 6/1/2015 (1) 12,585 7,315
--------
38,233
--------
WEST VIRGINIA (0.9%)
West Virginia Building Comm. Rev.
(Jail & Correction Fac.) 7.00% 7/1/2011 (1)(ETM) 7,325 9,228
West Virginia Building Comm. Rev.
(Jail & Correction Fac.) 7.00% 7/1/2012 (1)(ETM) 7,840 9,997
West Virginia Hosp. Finance Auth. Rev.
(Charleston Medical Center) 5.75% 9/1/2013 (1) 8,000 8,724
-------
27,949
-------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $2,704,740) 2,982,778
- ------------------------------------------------------------------------------------------------------------------------------------
86
- ------------------------------------------------------------------------------------------------------------------------------------
Market
Value(Y)
(000)
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.2%)
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets-Note B $ 46,593
Liabilities (53,931)
---------
(7,338)
---------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%) $2,975,440
==================================================================================================================================
(Y)See Note A in Notes to Financial Statements.
*Securities with a value of $6,080,000 have been segregated as initial margin
for open futures contracts.
For key to abbreviations and other references, see page 108.
- ----------------------------------------------------------------------------------------------------------------------------------
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- ----------------------------------------------------------------------------------------------------------------------------------
Amount
(000)
- ----------------------------------------------------------------------------------------------------------------------------------
Paid-in Capital $2,710,485
Undistributed Net Investment Income -
Overdistributed Net Realized Gains (11,979)
Unrealized Appreciation (Depreciation)
Investment Securities 278,038
Futures Contracts (1,104)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $2,975,440
==================================================================================================================================
Investor Shares-Net Assets
Applicable to 151,488,209 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $1,967,534
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-INVESTOR SHARES $12.99
==================================================================================================================================
Admiral Shares-Net Assets
Applicable to 77,602,692 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $1,007,906
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE--ADMIRAL SHARES $12.99
==================================================================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net assets.
87
====================================================================================================================================
FACE MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
====================================================================================================================================
MUNICIPAL BONDS (98.7%)
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA (0.3%)
Valdez AK Marine Terminal Rev.
(Exxon Pipeline Co.) VRDO 1.30% 5/1/2003 $ 6,100 6,100
ARIZONA (1.0%)
Arizona School Fac. Board Rev.
(State School Improvement) 5.50% 7/1/2017 9,610 10,740
Scottsdale AZ IDA (Memorial Hosp.) 6.00% 9/1/2012 (2) 4,000 4,564
Scottsdale AZ IDA (Memorial Hosp.) 6.125% 9/1/2017 (2) 4,700 5,432
----------------------------------
20,736
----------------------------------
CALIFORNIA (10.9%)
Anaheim CA Public Finance Auth. Lease Rev. 6.00% 9/1/2013 (4) 7,000 8,385
Anaheim CA Public Finance Auth. Lease Rev. 6.00% 9/1/2014 (4) 2,500 3,017
California Dept. of Veteran Affairs Rev. 5.45% 12/1/2019 (2) 4,720 5,132
California GO 6.25% 9/1/2012 5,000 5,903
California GO 6.00% 4/1/2018 5,000 5,910
California Health Fac. Finance Auth. Rev.
(Cedars-Sinai Medical Center) 6.25% 12/1/2034 5,000 5,354
California Pollution Control Financing Auth.
Solid Waste Disposal Rev.
(Shell Oil Co.-Martinez) VRDO 1.30% 5/1/2003 7,600 7,600
California Public Works Board Lease Rev.
(Community College) 5.625% 3/1/2016 (2) 11,370 12,635
California RAN FR 1.32% 5/7/2003 10,000 9,985
California RAN FR 1.37% 5/7/2003 15,000 14,948
California State Dept.
Water Resources Power Supply Rev. 6.00% 5/1/2013 5,000 5,834
California State Dept.
Water Resources Power Supply Rev. 5.50% 5/1/2015 (2) 6,000 6,790
California State Dept.
Water Resources Power Supply Rev. 6.00% 5/1/2015 2,500 2,880
California State Dept.
Water Resources Power Supply Rev. 5.50% 5/1/2016 (2) 10,000 11,284
California State Dept.
Water Resources Power Supply Rev. 5.375% 5/1/2018 (2) 5,000 5,523
California Statewide Community Dev. Auth. Rev.
(Irvine Apartments) PUT 5.10% 5/17/2010 10,000 10,592
Foothill/Eastern Corridor Agency
California Toll Road Rev. 0.00% 1/1/2028 (ETM) 24,000 6,929
Fresno CA Sewer Rev. 6.25% 9/1/2010 (2) 6,395 7,687
Los Angeles CA Dept. of Water & Power Rev. 5.25% 7/1/2015 5,140 5,670
Los Angeles CA Harbor Dept. Rev. 5.50% 8/1/2015 (2) 4,670 5,158
Los Angeles County CA Public Works
Financing Auth. Rev. 5.50% 10/1/2011 5,000 5,654
Los Angeles County CA Public Works
Financing Auth. Rev. 5.50% 10/1/2012 6,750 7,668
San Bernardino County CA Medical Center COP 5.50% 8/1/2024 (1) 11,295 12,010
San Bernardino County CA Medical Center COP 6.875% 8/1/2024 (ETM) 18,000 23,435
San Diego CA Unified School Dist. GO 0.00% 7/1/2012 (3) 5,420 3,742
San Diego CA Unified School Dist. GO 0.00% 7/1/2013 (3) 7,160 4,683
San Francisco CA City & County International
Airport Rev. 5.50% 5/1/2017 (1) 6,570 7,076
San Francisco CA City & County International
Airport Rev. 5.50% 5/1/2018 (1) 6,945 7,432
Southern California Public Power Auth. Rev.
(Transmission Project) 0.00% 7/1/2014 8,500 5,205
----------------------------------
224,121
----------------------------------
COLORADO (4.3%)
Colorado Dept. of Transp. Rev. 6.00% 6/15/2010 (2)(Prere.) 20,000 23,794
Colorado Dept. of Transp. Rev. 5.50% 6/15/2011 (1)(Prere.) 6,000 6,980
Colorado Springs CO Util. System Rev. VRDO 1.30% 5/7/2003 1,900 1,900
Denver CO City & County Airport Rev. 6.00% 11/15/2013 (2) 7,090 7,967
Denver CO City & County Airport Rev. 5.50% 11/15/2016 (3) 10,000 10,806
88
====================================================================================================================================
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
====================================================================================================================================
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2013 (1) $ 10,000 6,475
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2016 (1) 10,185 5,539
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2020 (1) 15,165 6,388
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2025 (1) 9,700 2,983
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2030 (1) 10,000 2,324
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2031 (1) 15,000 3,302
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2032 (1) 10,000 2,084
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2033 (1) 45,760 9,035
----------------------------------
89,577
----------------------------------
CONNECTICUT (0.2%)
Connecticut Dev. Auth. PCR
(Connecticut Power & Light) 5.95% 9/1/2028 3,700 3,868
DISTRICT OF COLUMBIA (1.4%)
District of Columbia GO 6.75% 6/1/2005 (1) 40 40
District of Columbia GO 6.00% 6/1/2011 (1) 5,905 6,933
District of Columbia GO 6.00% 6/1/2011 (1)(ETM) 3,085 3,672
District of Columbia GO 0.00% 6/1/2012 (1) 19,000 13,185
District of Columbia GO 5.40% 6/1/2012 (2) 5,000 5,561
----------------------------------
29,391
----------------------------------
FLORIDA (1.7%)
Jacksonville FL Electric Auth. Rev.
(Electric System) VRDO 1.35% 5/1/2003 5,600 5,600
Orange County FL School Board COP 5.375% 8/1/2017 (1) 5,000 5,534
Sunrise FL Util. System Rev. 5.50% 10/1/2018 (2) 12,000 13,921
Tallahassee FL Health Fac. Rev.
(Tallahassee Memorial Healthcare, Inc.) 6.375% 12/1/2030 10,000 10,330
----------------------------------
35,385
----------------------------------
GEORGIA (3.5%)
Atlanta GA Airport Fac. Rev. 6.25% 1/1/2013 (3) 8,000 9,111
Atlanta GA Airport Fac. Rev. 5.875% 1/1/2015 (3) 7,750 8,891
Atlanta GA Airport Fac. Rev. 5.875% 1/1/2017 (3) 7,500 8,577
Atlanta GA Water & Wastewater Rev. 5.50% 11/1/2022 (3) 10,000 11,402
College Park GA IDA Lease Rev.
(Civic Center) 7.00% 9/1/2010 (ETM) 11,500 13,873
Fulton County GA COP 6.00% 11/1/2015 (2) 4,815 5,672
Metro. Atlanta GA Rapid Transp. Auth.
Georgia Sales Tax Rev. 6.25% 7/1/2018 12,170 14,733
----------------------------------
72,259
----------------------------------
HAWAII (2.2%)
Hawaii Airport System Rev. 5.75% 7/1/2016 (3) 5,000 5,527
Hawaii Airport System Rev. 5.75% 7/1/2017 (3) 5,000 5,491
Hawaii Dept. of Budget & Finance
(Hawaii Electric Co. Inc.) 5.75% 12/1/2018 (2) 12,470 13,730
Hawaii GO 5.875% 10/1/2010 (1)(Prere.) 2,860 3,383
Hawaii GO 5.875% 10/1/2010 (1)(Prere.) 3,220 3,809
Univ. of Hawaii Univ. System Rev. 5.50% 7/15/2029 (3) 12,980 13,929
----------------------------------
45,869
----------------------------------
ILLINOIS (7.3%)
Chicago IL Board of Educ. GO 0.00% 12/1/2013 (2) 5,000 3,200
Chicago IL Board of Educ. GO 0.00% 12/1/2014 (2) 5,000 3,027
Chicago IL Board of Educ. GO 0.00% 12/1/2029 (3) 10,000 2,402
Chicago IL (City Colleges Improvement) GO 0.00% 1/1/2016 (3) 8,500 4,763
Chicago IL GO 0.00% 1/1/2035 (3) 32,670 6,029
Chicago IL GO 0.00% 1/1/2036 (3) 32,670 5,703
Chicago IL Metro. Water Reclamation Dist. GO 7.00% 1/1/2011 (ETM) 20,000 24,597
89
====================================================================================================================================
FACE MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
====================================================================================================================================
Chicago IL Neighborhoods Alive GO 5.50% 1/1/2036 (3) $ 6,400 6,778
Chicago IL Neighborhoods Alive GO 5.75% 1/1/2040 (3) 16,690 18,570
Chicago IL Public Building Comm. GO 7.00% 1/1/2020 (1)(ETM) 6,000 7,916
Chicago IL School Finance Auth. GO 5.50% 1/1/2031 (2) 8,750 9,339
Chicago IL Water Rev. VRDO 1.35% 5/7/2003 LOC 2,040 2,040
Illinois Dev. Finance Auth. PCR
(Illinois Power Co.) 7.40% 12/1/2024 (1) 8,150 9,030
Illinois Sales Tax Rev. 6.125% 6/15/2010 (Prere.) 4,500 5,368
Metro. Pier & Exposition Auth. Illinois
Dedicated Sales Tax Rev. 6.75% 6/1/2010 (1) 6,000 7,184
Metro. Pier & Exposition Auth. Illinois
Dedicated Sales Tax Rev. 0.00% 12/15/2014 (1) 16,100 9,740
Metro. Pier & Exposition Auth. Illinois
Dedicated Sales Tax Rev. 0.00% 6/15/2028 (1) 21,850 5,758
Metro. Pier & Exposition Auth. Illinois
Dedicated Sales Tax Rev. 0.00% 12/15/2030 (1) 19,445 4,468
Metro. Pier & Exposition Auth. Illinois
Dedicated Sales Tax Rev. 0.00% 6/15/2038 (1) 30,690 4,674
Univ. of Illinois Rev. 0.00% 4/1/2012 (1) 5,795 4,036
Will County IL Community School Dist. 0.00% 11/1/2013 (4) 10,000 6,423
----------------------------------
151,045
----------------------------------
INDIANA (1.0%)
Indiana Office Building Comm. Rev. (Capitol Complex) 6.90% 7/1/2011 16,875 20,241
Kentucky (1.4%)
Kentucky Property & Building Comm. Rev. 5.75% 10/1/2014 6,405 7,355
Kentucky Property & Building Comm. Rev. 5.375% 8/1/2016 (4) 13,870 15,352
Louisville & Jefferson County KY Metro. Sewer Dist. 5.75% 5/15/2033 (3) 5,000 5,614
----------------------------------
28,321
----------------------------------
LOUISIANA (2.5%)
De Soto Parish LA PCR
(Southwestern Electric Power Co.) 7.60% 1/1/2019 24,300 25,063
Louisiana GO 5.50% 5/15/2014 (3) 6,180 6,953
Louisiana GO 5.75% 11/15/2014 (3) 9,855 11,387
Louisiana State Gas and Fuels Tax Rev. 5.375% 6/1/2018 (2) 5,000 5,507
New Orleans LA GO 0.00% 9/1/2016 (2) 5,785 3,187
----------------------------------
52,097
----------------------------------
MARYLAND (0.4%)
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 6.75% 7/1/2030 7,500 8,315
MASSACHUSETTS (6.2%)
Massachusetts Bay Transp. Auth. Rev. 7.00% 3/1/2021 15,000 19,515
Massachusetts GAN 5.75% 6/15/2014 10,000 11,471
Massachusetts GO 5.375% 10/1/2010 (Prere.) 10,000 11,487
Massachusetts GO 5.50% 11/1/2017 (1) 7,000 8,147
Massachusetts GO 5.50% 11/1/2017 (4) 13,250 15,421
Massachusetts GO VRDO 1.35% 5/1/2003 2,700 2,700
Massachusetts GO VRDO 1.35% 5/7/2003 1,100 1,100
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.70% 7/1/2015 9,705 9,222
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.625% 7/1/2020 2,575 2,294
Massachusetts Port Auth. Rev. 5.00% 7/1/2018 3,500 3,662
90
====================================================================================================================================
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
====================================================================================================================================
Massachusetts Water Resources Auth. Rev. 6.50% 7/15/2019 * $ 32,000 40,500
Massachusetts Water Resources Auth. Rev. VRDO 1.30% 5/7/2003 (3) 600 600
Massachusetts Water Resources Auth. Rev. VRDO 1.35% 5/7/2003 (3) 1,000 1,000
----------------------------------
127,119
----------------------------------
MICHIGAN (3.7%)
Detroit MI GO 6.375% 4/1/2007 4,500 4,846
Detroit MI Sewer System Rev. 5.75% 1/1/2010 (3)(Prere.) 5,000 5,853
Detroit MI Sewer System Rev. 5.50% 7/1/2029 (3) 18,000 20,509
Grand Rapids MI Tax Increment Rev.
(Downtown Project) 6.875% 6/1/2024 (1) 7,500 8,069
Michigan Building Auth. Rev. 5.50% 10/15/2016 5,500 6,179
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.875% 10/1/2010 (Prere.) 9,250 11,023
Michigan Muni. Bond Auth. Rev.
(Clean Water Revolving Fund) 5.875% 10/1/2010 (Prere.) 7,980 9,510
Univ. of Michigan Hosp. Rev. VRDO 1.40% 5/1/2003 1,700 1,700
Univ. of Michigan Hosp. Rev. VRDO 1.40% 5/1/2003 8,800 8,800
----------------------------------
76,489
----------------------------------
MISSISSIPPI (1.0%)
Mississippi GO 6.00% 11/1/2009 (Prere.) 7,250 8,622
Mississippi GO 6.00% 11/1/2009 (Prere.) 10,800 12,844
----------------------------------
21,466
----------------------------------
MISSOURI (0.7%)
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(St. Luke's Episcopal-Presbyterian Hosp.) 5.50% 12/1/2016 (4) 4,195 4,611
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(St. Luke's Episcopal-Presbyterian Hosp.) 5.25% 12/1/2026 (4) 4,000 4,143
St. Louis MO Airport Rev. Airport Dev. Program 5.625% 7/1/2016 (1) 5,220 5,864
----------------------------------
14,618
NEVADA (1.1%) ----------------------------------
Clark County NV Passenger Fac. Rev.
(Las Vegas McCarran International Airport) 5.375% 7/1/2014 (1) 14,780 16,384
Truckee Meadows NV Water Auth. Rev. 5.50% 7/1/2016 (4) 5,000 5,562
----------------------------------
21,946
----------------------------------
NEW HAMPSHIRE (1.7%)
Manchester NH General Airport Rev. 5.625% 1/1/2030 (4) 23,000 25,103
New Hampshire Business Finance Auth. PCR
(Public Service Co. of New Hampshire) 6.00% 5/1/2021 (2) 10,000 10,737
----------------------------------
35,840
----------------------------------
NEW JERSEY (2.2%)
New Jersey Sports & Exposition Auth. Rev. 6.50% 3/1/2013 (4) 10,000 12,134
New Jersey Transp. Corp. COP 5.50% 9/15/2012 (2) 5,000 5,774
New Jersey Transp. Corp. COP 6.00% 9/15/2015 (2) 13,000 15,318
New Jersey Turnpike Auth. Rev. 5.625% 1/1/2015 (1) 10,000 11,373
----------------------------------
44,599
----------------------------------
NEW MEXICO (0.7%)
New Mexico Highway Comm. Tax Rev. 6.00% 6/15/2013 3,000 3,513
New Mexico Hosp. Equipment Loan Council Hosp.
System Rev. (Presbyterian Healthcare Services) 5.50% 8/1/2030 10,000 10,181
----------------------------------
13,694
----------------------------------
91
====================================================================================================================================
FACE MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
====================================================================================================================================
NEW YORK (10.7%)
Babylon NY Waste Water Fac. GO 9.00% 8/1/2008 (3) 4,900 6,408
Babylon NY Waste Water Fac. GO 9.00% 8/1/2009 (3) 2,800 3,746
Babylon NY Waste Water Fac. GO 9.00% 8/1/2010 (3) 4,900 6,666
Long Island NY Power Auth. Electric System Rev. 5.25% 6/1/2014 7,350 7,794
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 5.25% 10/1/2010 (1)(Prere.) 4,675 5,365
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 6.00% 4/1/2020 (1)(ETM) 6,165 7,514
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2014 (2) 10,000 11,740
New York City NY GO 5.75% 8/1/2015 (2) 12,000 13,720
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.75% 6/15/2026 3,500 3,898
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.30% 5/1/2003 18,400 18,400
New York City NY Transitional Finance Auth. Rev. 5.00% 5/1/2017 2,500 2,625
New York City NY Transitional Finance Auth. Rev. 6.25% 11/15/2017 265 314
New York State Dormitory Auth. Rev.
(Sloan-Kettering Cancer Center) 5.75% 7/1/2020 (1) 7,500 8,820
New York State Dormitory Auth. Rev. (State Univ.) 7.50% 5/15/2011 12,765 15,697
New York State Dormitory Auth. Rev. (State Univ.) 7.50% 5/15/2011 6,135 7,843
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2020 37,090 40,102
New York State Local Govt. Assistance Corp. 5.375% 4/1/2012 5,275 5,879
New York State Local Govt. Assistance Corp. 5.40% 4/1/2013 13,125 14,584
New York State Local Govt. Assistance Corp. 5.40% 4/1/2015 5,700 6,330
Oneida County NY IDA Rev. (Hamilton College) VRDO 1.30% 5/7/2003 (1) 1,615 1,615
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2017 10,000 10,967
Triborough Bridge & Tunnel Auth. New York Rev. 6.125% 1/1/2021 (ETM) 10,000 12,232
Triborough Bridge & Tunnel Auth. New York Rev. 5.50% 1/1/2030 (Prere.) 7,750 8,916
----------------------------------
221,175
----------------------------------
NORTH CAROLINA (0.8%)
North Carolina Eastern Muni. Power Agency Rev. 7.50% 1/1/2010 4,935 6,257
North Carolina Eastern Muni. Power Agency Rev. 6.50% 1/1/2018 (ETM) 4,625 5,898
Winston-Salem NC Water & Sewer System Rev. 5.50% 6/1/2011 (Prere.) 1,220 1,418
Winston-Salem NC Water & Sewer System Rev. 5.50% 6/1/2016 1,780 2,005
----------------------------------
15,578
----------------------------------
OHIO (0.7%)
Kent State Univ. Ohio VRDO 1.35% 5/7/2003 (1) 200 200
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.625% 10/1/2016 3,000 3,272
Lorain County OH Hosp. Fac. Rev.
(Catholic Healthcare Partners) 5.625% 10/1/2017 2,260 2,454
Ohio Air Quality Dev. Auth.
(Cincinnati Gas & Electric Co.) VRDO 1.40% 5/1/2003 LOC 3,400 3,400
Ohio GO VRDO 1.35% 5/7/2003 1,900 1,900
Ohio Housing Finance Agency Mortgage Rev. VRDO 1.40% 5/7/2003 3,900 3,900
----------------------------------
15,126
----------------------------------
OREGON (1.0%)
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.50% 2/15/2014 5,580 5,985
92
====================================================================================================================================
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
====================================================================================================================================
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.25% 5/1/2021 $ 5,000 5,130
Port Auth. of Portland OR Airport Rev.
(Portland International Airport) 5.50% 7/1/2014 (3) 3,865 4,251
Port Auth. of Portland OR Airport Rev.
(Portland International Airport) 5.50% 7/1/2016 (3) 4,305 4,688
----------------------------------
20,054
----------------------------------
PENNSYLVANIA (3.5%)
Chester County PA Health & Educ. Fac. Auth. Rev.
(Chester County Hosp.) 6.75% 7/1/2031 3,000 2,841
Delaware County PA IDA Resource Recovery Rev.
(American Fuel) 6.10% 7/1/2013 15,000 15,853
Geisinger Health System Auth. of Pennsylvania Rev.
(Penn State Geisinger Health System) VRDO 1.28% 5/1/2003 10,500 10,500
Pennsylvania Higher Educ. Assistance Agency
Student Loan Rev. VRDO 1.40% 5/7/2003 (2) 700 700
Philadelphia PA Water & Waste Water Rev. 7.00% 6/15/2010 (3) 20,000 24,701
Pittsburgh PA GO 5.25% 9/1/2016 (3) 3,845 4,229
Pittsburgh PA Water & Sewer Auth. Rev. 6.50% 9/1/2013 (3) 10,000 12,406
----------------------------------
71,230
----------------------------------
PUERTO RICO (0.8%)
Puerto Rico Electric Power Auth. Rev. 5.25% 7/1/2014 (1) 2,000 2,229
Puerto Rico Electric Power Auth. Rev. 5.25% 7/1/2014 (4) 2,000 2,229
Puerto Rico Public Finance Corp. 6.00% 8/1/2026 11,000 12,836
----------------------------------
17,294
----------------------------------
SOUTH CAROLINA (2.1%)
Medical Univ. South Carolina Hosp.
Auth. Hosp. Fac. Rev. 6.375% 8/15/2027 7,750 8,100
Piedmont SC Muni. Power Agency Rev. 6.50% 1/1/2015 (3) 12,210 15,046
Piedmont SC Muni. Power Agency Rev. 6.50% 1/1/2015 (3)(ETM) 2,035 2,566
South Carolina Jobs Econ. Dev. Auth. Hosp.
Improvement Rev. (Palmetto Health Alliance) 7.125% 12/15/2015 5,000 5,512
South Carolina Transp. Infrastructure Rev. 5.75% 10/1/2015 (1) 10,790 12,452
----------------------------------
43,676
----------------------------------
TENNESSEE (0.3%)
Metro. Govt. of Nashville & Davidson County TN
Health & Educ. Fac. (Vanderbilt Univ.) VRDO 1.32% 5/1/2003 5,400 5,400
TEXAS (18.3%)
Austin TX Combined Util. System Rev. 0.00% 5/15/2017 (3) 4,900 2,545
Brazos County TX Health Dev.
(Franciscan Service Corp.) 5.375% 1/1/2022 (1) 5,750 5,955
Brazos River Auth. Texas PCR
(Texas Util. Electric Co.) PUT 5.75% 11/1/2011 8,400 8,253
Brazos River TX Harbor Navigation Dist. Brazoria County
Environmental (Dow Chemical Co. Project) PUT 5.20% 5/15/2008 12,000 12,419
Gulf Coast TX Waste Disposal Auth. PCR (Exxon) VRDO 1.30% 5/1/2003 6,100 6,100
Harris County TX GO 0.00% 10/1/2014 (1) 5,550 3,394
Harris County TX Health Fac. Dev. Corp. Rev.
(Methodist Hosp.) VRDO 1.35% 5/1/2003 3,500 3,500
Harris County TX Health Fac. Dev. Corp. Rev.
(Young Men's Christian Assoc. of Greater Houston) VRDO 1.35% 5/1/2003 LOC 1,100 1,100
Houston TX Airport System Special Fac. Rev.
(Continental Airlines Inc.) 6.75% 7/1/2029 4,460 2,634
Houston TX GO 5.75% 3/1/2014 (4) 3,000 3,429
93
====================================================================================================================================
FACE MARKET
MATURITY AMOUNT VALUE*
LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
====================================================================================================================================
Houston TX GO 5.75% 3/1/2015 (4) $ 3,000 3,427
Houston TX GO 5.75% 3/1/2016 (4) 4,500 5,133
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 5.50% 7/1/2005 (4)(Prere.) 16,760 18,378
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 0.00% 9/1/2018 (2) 16,285 7,833
Houston TX Hotel Occupancy Tax & Special Rev.
(Convention & Entertainment) 0.00% 9/1/2021 (2) 22,720 9,007
Houston TX Independent School Dist. Lease Rev. 0.00% 9/15/2012 (2) 6,150 4,203
Houston TX Water & Sewer System Rev. 0.00% 12/1/2012 (2) 20,500 13,895
Houston TX Water & Sewer System Rev. 5.50% 12/1/2015 (4) 10,000 11,227
Lewisville TX Independent School Dist. 0.00% 8/15/2016 5,630 3,072
Lewisville TX Independent School Dist. 0.00% 8/15/2017 6,940 3,563
Lower Colorado River Auth. TX Rev. 6.00% 5/15/2011 (4) 12,605 14,605
Lower Colorado River Auth. TX Rev. 5.875% 5/15/2015 (4) 5,500 6,350
Lower Colorado River Auth. TX Rev. 5.875% 5/15/2016 (4) 27,500 31,748
Round Rock TX Independent School Dist. GO 0.00% 8/15/2011 (1) 5,000 3,618
San Antonio TX Electric & Gas Rev. 5.75% 2/1/2010 (Prere.) 11,435 13,310
San Antonio TX Electric & Gas Rev. 5.375% 2/1/2020 10,000 10,792
San Antonio TX GO 5.25% 2/1/2019 7,500 8,016
Texas City TX IDA (ARCO Pipeline) 7.375% 10/1/2020 17,000 22,476
Texas Muni. Power Agency Rev. 0.00% 9/1/2013 (1) 39,155 25,403
Texas Muni. Power Agency Rev. 0.00% 9/1/2013 (1)(ETM) 515 338
Texas Muni. Power Agency Rev. 0.00% 9/1/2015 (1) 16,555 9,561
Texas Muni. Power Agency Rev. 0.00% 9/1/2015 (1) 185 109
Texas Muni. Power Agency Rev. 0.00% 9/1/2017 (1) 39,530 20,252
Texas Muni. Power Agency Rev. 0.00% 9/1/2017 (1)(ETM) 440 230
Texas TOB VRDO 1.35% 5/7/2003 ** 25,000 25,000
Texas Turnpike Auth. Central Texas Turnpike System Rev. 0.00% 8/15/2028 (2) 90,650 23,487
Texas Water Dev. Board Rev. 6.50% 7/15/2010 17,425 21,073
Texas Water Dev. Board Rev. 7.05% 8/1/2025 5,655 6,030
Tomball TX Hosp. Auth. Rev. 6.00% 7/1/2025 3,350 3,421
Tomball TX Hosp. Auth. Rev. 6.00% 7/1/2029 2,800 2,852
----------------------------------
377,738
----------------------------------
UTAH (0.2%)
Intermountain Power Agency Utah Power Supply Rev. 5.75% 7/1/2019 (1) 3,000 3,372
VIRGIN ISLANDS (0.3%)
Virgin Islands Public Finance Auth. Rev. 6.50% 10/1/2024 5,000 5,544
VIRGINIA (0.5%)
Virginia College Building Auth. Educ. Fac. Rev.
(Washington & Lee Univ.) 5.75% 1/1/2034 9,540 11,476
WASHINGTON (1.7%)
Chelan County WA Public Util. Dist.
(Rock Island Hydro) 0.00% 6/1/2014 (1) 5,000 3,086
Chelan County WA Public Util. Dist.
(Rock Island Hydro) 0.00% 6/1/2017 (1) 11,685 6,025
Chelan County WA Public Util. Dist.
(Rock Island Hydro) 0.00% 6/1/2018 (1) 10,000 4,850
Port of Seattle WA Rev. 5.625% 2/1/2030 (1) 7,735 8,480
Washington GO 6.75% 2/1/2015 3,450 4,373
Washington GO 5.625% 7/1/2025 7,030 7,714
----------------------------------
34,528
----------------------------------
94
====================================================================================================================================
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
====================================================================================================================================
West Virginia (0.6%)
West Virginia Building Comm. Rev.
(Jail & Correction Fac.) 7.00% 7/1/2014 (1)(ETM) $ 8,975 11,683
Wisconsin (1.8%)
Wisconsin Clean Water Rev. 6.875% 6/1/2011 20,500 25,004
Wisconsin GO 5.75% 5/1/2011 (Prere.) 10,000 11,711
----------------------------------
36,715
----------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $1,838,621) 2,033,685
====================================================================================================================================
OTHER ASSETS AND LIABILITIES (1.3%)
Other Assets-Note B 33,689
Liabilities (6,810)
----------------------------------
26,879
----------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%) $2,060,564
====================================================================================================================================
(+)See Note A in Notes to Financial Statements.
*Securities with a value of $4,976,000 have been segregated as initial margin
for open futures contracts.
**Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be sold in transactions exempt from registration,
normally to qualified institutional buyers. At April 30, 2003, the value of this
security was $25,000,000, representing 1.2% of net assets.
For key to abbreviations and other references, see page 108.
================================================================================
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
AMOUNT
(000)
- --------------------------------------------------------------------------------
Paid-in Capital $1,899,033
Undistributed Net Investment Income -
Accumulated Net Realized Losses (32,457)
Unrealized Appreciation (Depreciation)
Investment Securities 195,064
Futures Contracts (1,076)
- --------------------------------------------------------------------------------
NET ASSETS $2,060,564
================================================================================
Investor Shares-Net Assets
Applicable to 105,728,814 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $1,217,860
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-INVESTOR SHARES $11.52
================================================================================
Admiral Shares-Net Assets
Applicable to 73,159,511 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $842,704
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-ADMIRAL SHARES $11.52
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
95
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (98.2%)
- ----------------------------------------------------------------------------------------------------------------------------------
ALABAMA (0.8%)
Alabama Special Care Fac.
(Baptist Health System) 5.875% 11/15/2026(1) $ 5,000 5,506
Courtland AL Dev. Board Solid Waste Disposal Rev.
(Champion International Corp.) 6.70% 11/1/2029 9,500 10,047
McIntosh AL IDR (Environmental Improvement) 5.375% 6/1/2028 17,000 17,143
----------------
$ 32,696
----------------
ARIZONA (2.0%)
Maricopa County AZ Pollution Control Corp. PCR
(El Paso Electric Co.) 6.25% 8/1/2005 10,800 10,909
Maricopa County AZ Pollution Control Corp. PCR
(El Paso Electric Co.) 6.375% 8/1/2005 31,000 31,550
Pima County AZ IDA Multi Family Mortgage
(La Cholla Project) 8.50% 7/1/2020 4,680 4,804
Pima County AZ IDA Multi Family Mortgage
(La Cholla Project) 8.50% 7/1/2020 1,560 1,601
Univ. of Arizona Board of Regents 6.20% 6/1/2016 26,660 32,237
----------------
$ 81,101
----------------
ARKANSAS (0.1%)
North Little Rock AR Electric Rev. 6.50% 7/1/2015(1) 3,450 4,265
CALIFORNIA (10.8%)
ABAG Finance Auth. for Non-Profit Corp.
California Multifamily Rev.
(Housing Archstone Redwood) 5.30% 10/1/2008 10,000 10,743
California Dept. of Water Resources
Water System Rev. 5.50% 12/1/2015 5,000 5,649
California Dept. of Water Resources
Water System Rev. 5.50% 12/1/2017 10,000 11,181
California GO 5.00% 2/1/2032 20,000 19,728
California PCR Financing Auth. Rev.
(Southern California Edison Co.) PUT 7.00% 3/1/2005 30,000 30,501
California Pollution Control Financing Auth.
Solid Waste Disposal Rev. (Waste Management)
PUT 4.85% 11/30/2007 7,000 7,288
California RAN FR 1.32% 5/7/2003 15,000 14,978
California RAN FR 1.32% 5/7/2003 16,000 15,976
California RAN FR 1.37% 5/7/2003 27,000 26,906
California State Dept. Water Resources
Power Supply Rev. 5.50% 5/1/2012(1) 25,000 28,604
California Statewide Community Dev. Auth.
Multifamily Rev. (Archstone/LeClub) 5.30% 6/1/2008 5,000 5,351
California Statewide Community Dev. Auth.
Multifamily Rev. (Archstone/Oak Ridge) PUT 5.30% 6/1/2008 5,650 6,047
California Statewide Community Dev. Auth.
Multifamily Rev. (Archstone/Pelican Hill) 5.30% 6/1/2008 5,000 5,351
California Statewide Community Dev. Auth.
Multifamily Rev. (Archstone/River Meadows) 5.30% 6/1/2008 5,000 5,351
California Statewide Community Dev. Auth. Rev.
(Irvine Apartments) PUT 5.10% 5/17/2010 22,000 23,302
California Statewide Community Dev. Auth. Rev.
(Irvine Apartments) PUT 5.25% 5/15/2013 37,785 39,412
California Statewide Community Dev. Auth. Rev.
(Kaiser Permanente) PUT 4.35% 2/28/2007 13,500 14,238
California Veterans GO 5.20% 12/1/2010 22,000 23,580
California Veterans GO 5.25% 12/1/2011 43,000 45,684
Roseville CA North Central Roseville
Community Fac. Dist. 5.40% 9/1/2008 1,950 2,108
96
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Sacramento CA Muni. Util. Dist. Rev. 5.25% 7/1/2028 $ 18,000 $ 18,285
San Bernardino County CA Medical Center COP 7.00% 8/1/2020 12,180 15,668
San Bernardino County CA Medical Center COP 6.875% 8/1/2024 (ETM) 25,220 32,835
San Joaquin Hills CA Transp. Corridor
Agency Toll Road Rev. 0.00% 1/15/2009(1) 3,000 2,491
San Joaquin Hills CA Transp. Corridor
Agency Toll Road Rev. 0.00% 1/15/2025 (1) 12,900 4,179
San Joaquin Hills CA Transp. Corridor
Agency Toll Road Rev. 0.00% 1/15/2026(1) 28,135 8,596
San Joaquin Hills CA Transp. Corridor
Agency Toll Road Rev. 0.00% 1/15/2036(1) 4,025 708
Santa Margarita CA Water Dist.
Special Tax Community Fac. Dist. No. 99-1 6.00% 9/1/2030 3,000 3,009
Southern California Public Power Auth. Rev. 6.00% 7/1/2018 3,985 3,991
----------------
$ 431,740
----------------
COLORADO (3.5%)
Colorado Health Fac. Auth. Rev.
(Catholic Health Initiatives) 5.50% 9/1/2011 7,775 8,710
Colorado Health Fac. Auth. Rev.
(Catholic Health Initiatives) 5.50% 9/1/2012 8,200 9,089
Colorado Health Fac. Auth. Rev.
(Catholic Health Initiatives) 5.50% 9/1/2013 3,000 3,303
Colorado Health Fac. Auth. Rev.
(Catholic Health Initiatives) 5.50% 9/1/2015 5,130 5,580
Colorado Health Fac. Auth. Rev.
(Catholic Health Initiatives) 5.50% 9/1/2017 5,215 5,596
Colorado Health Fac. Auth. Rev.
(Catholic Health Initiatives) 5.25% 9/1/2024 10,000 10,195
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2008(1) 14,000 11,962
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2009(1) 16,195 13,168
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2010(1) 7,185 5,497
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2012(1) 26,795 18,344
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2013(1) 5,000 3,237
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2014(1) 8,000 4,901
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2015(1) 5,000 2,884
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2018(1) 5,000 2,398
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2023(1) 7,500 2,614
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2025(1) 10,000 3,075
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2030(1) 50,200 11,667
E-470 Public Highway Auth. Colorado Rev. 0.00% 9/1/2033(1) 50,000 9,872
Northwest Parkway Public Highway Auth.
Colorado Convertible Capital Appreciation 0.00% 6/15/2025(4) 10,000 6,963
----------------
$ 139,055
----------------
CONNECTICUT (2.3%)
Connecticut Dev. Auth. PCR
(Connecticut Power & Light) 5.85% 9/1/2028 36,000 37,811
Connecticut Dev. Auth. PCR
(Connecticut Power & Light) 5.95% 9/1/2028 7,200 7,526
Connecticut GO 5.375% 4/15/2014 7,180 8,104
Connecticut GO 5.375% 4/15/2015 10,000 11,243
Connecticut GO 5.375% 4/15/2016 5,000 5,589
Connecticut GO 5.375% 4/15/2017 5,000 5,553
Connecticut GO 5.375% 11/15/2019 5,000 5,512
Connecticut GO 5.375% 11/15/2021 5,000 5,450
Connecticut Special Tax Obligation Rev.
(Transp. Infrastructure) 5.25% 11/1/2008(4) (Prere.) 5,880 6,740
----------------
$ 93,528
----------------
FLORIDA (2.6%)
Broward County FL School Board COP 5.375% 7/1/2016(4) 8,240 9,113
Jacksonville FL Electric Auth. Rev.
(Electric System) VRDO 1.35% 5/1/2003 23,700 23,700
Jacksonville FL Electric Auth. Rev.
(Electric System) VRDO 1.35% 5/1/2003 2,800 2,800
Lee County FL IDA Health Care Fac. Rev.
(Shell Point Village) 5.75% 11/15/2011 1,475 1,551
Lee County FL IDA Health Care Fac. Rev.
(Shell Point Village) 5.75% 11/15/2014 1,000 1,033
Lee County FL School Board COP 6.00% 8/1/2007(4) 5,820 6,671
97
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Northern Palm Beach County FL Improvement Dist.
Water Control & Improvement Unit Dev. 5.85% 8/1/2013 $ 2,225 $ 2,337
Northern Palm Beach County FL Improvement Dist.
Water Control & Improvement Unit Dev. 6.00% 8/1/2029 2,000 2,037
Orange County FL Educ. Fac. Auth. Rev.
(Rollins College) VRDO 1.35% 5/1/2003 LOC 2,800 2,800
Orlando FL Special Assessment Rev.
(Conroy Road Interchange) 5.25% 5/1/2005 565 566
Orlando FL Special Assessment Rev.
(Conroy Road Interchange) 5.50% 5/1/2010 1,000 1,008
Orlando FL Special Assessment Rev.
(Conroy Road Interchange) 5.80% 5/1/2026 3,000 2,981
Orlando FL Util. Comm. Water & Electric Rev. 6.75% 10/1/2017 (ETM) 2,200 2,803
Palm Beach County FL Airport System Rev. 5.75% 10/1/2012(1) 9,560 11,266
Palm Beach County FL Airport System Rev. 5.75% 10/1/2014(1) 8,500 10,102
Tallahassee FL Health Fac. Rev.
(Tallahassee Memorial Healthcare, Inc.) 6.375% 12/1/2030 23,000 23,758
----------------
$ 104,526
----------------
GEORGIA (0.5%)
Cartersville GA Water & Waste Water Fac.
(Anheuser-Busch Cos., Inc.) 7.40% 11/1/2010 5,000 6,153
Dalton County GA Dev. Auth.
(Hamilton Health Care System) 5.50% 8/15/2017(1) 5,000 5,699
Georgia Muni. Electric Power Auth. Rev. 6.60% 1/1/2018(1) 4,155 5,154
Georgia Muni. Electric Power Auth. Rev. 6.60% 1/1/2018(1) (ETM) 845 1,070
----------------
$ 18,076
----------------
HAWAII (0.6%)
Hawaii Harbor Capital Improvement Rev. 5.50% 7/1/2027(1) 18,500 19,414
Honolulu HI City & County GO 0.00% 7/1/2017(3) 6,000 3,098
Honolulu HI City & County GO 0.00% 7/1/2018(3) 2,000 971
----------------
$ 23,483
----------------
ILLINOIS (5.8%)
Chicago IL GO 0.00% 1/1/2026(1) 10,550 7,491
Chicago IL GO 0.00% 1/1/2027(1) 10,075 7,137
Chicago IL Metro. Water Reclamation Dist.
GO VRDO 1.30% 5/7/2003 45,000 45,000
Chicago IL O'Hare International Airport Special
Fac. Rev.(United Airlines) PUT 5.80% 5/1/2007** 17,570 4,524
Chicago IL Public Building Comm. GO 7.00% 1/1/2015(1) (ETM) 8,715 10,509
Chicago IL Public Building Comm. GO 7.00% 1/1/2020(1) (ETM) 10,000 13,194
Chicago IL School Finance Auth. GO 5.50% 1/1/2031(2) 20,000 21,347
Illinois Dev. Finance Auth. PCR
(Illinois Power Co.) 7.40% 12/1/2024(1) 20,000 22,159
Illinois Dev. Finance Auth. Solid Waste Disp. Rev.
(Waste Management) 5.85% 2/1/2007 10,000 10,670
Illinois Dev. Finance Auth. Solid Waste Disp. Rev.
(Waste Management) 5.05% 1/1/2010 4,000 4,031
Illinois Health Fac. Auth. Rev.
(Centegra Health System) 5.10% 9/1/2011(2) 3,105 3,339
Illinois Health Fac. Auth. Rev.
(Centegra Health System) 5.25% 9/1/2018(2) 2,500 2,615
Illinois Health Fac. Auth. Rev.
(Northwestern Memorial Hosp.) VRDO 1.35% 5/1/2003 9,100 9,100
Illinois Health Fac. Auth. Rev.
(United Medical Center) 8.125% 7/1/2003 (Prere.) 1,365 1,381
Illinois Sales Tax Rev. 5.50% 6/15/2016(3) 3,000 3,486
98
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Illinois Sales Tax Rev. 5.75% 6/15/2019(3) $ 5,000 $ 5,920
Metro. Pier & Exposition Auth.
Illinois Dedicated Sales Tax Rev. 0.00% 12/15/2033(1) 26,195 5,122
Metro. Pier & Exposition Auth.
Illinois Dedicated Sales Tax Rev. 0.00% 6/15/2034(1) 34,000 6,469
Metro. Pier & Exposition Auth.
Illinois Dedicated Sales Tax Rev. 0.00% 12/15/2034(1) 36,695 6,790
Metro. Pier & Exposition Auth.
Illinois Dedicated Sales Tax Rev. 0.00% 12/15/2035(1) 63,695 11,145
Metro. Pier & Exposition Auth.
Illinois Dedicated Sales Tax Rev. 0.00% 6/15/2036(1) 20,000 3,404
Metro. Pier & Exposition Auth.
Illinois Dedicated Sales Tax Rev. 0.00% 12/15/2036(1) 45,695 7,562
Metro. Pier & Exposition Auth.
Illinois Dedicated Sales Tax Rev. 0.00% 12/15/2037(1) 81,000 12,672
Metro. Pier & Exposition Auth.
Illinois Dedicated Sales Tax Rev. 0.00% 6/15/2038(1) 30,000 4,569
----------------
$ 229,636
----------------
INDIANA (1.8%)
Indiana Health Fac. Finance Auth. Rev.
(Ancilla System, Inc.) 7.375% 7/1/2023 (ETM) 19,400 26,144
Indiana Office Building Comm. Rev.
(Capitol Complex) 6.90% 7/1/2011 15,660 18,784
Indianapolis IN Local Public Improvement Rev. 6.75% 2/1/2014 21,500 26,385
----------------
$ 71,313
----------------
KANSAS (0.8%)
Overland Park KS Convention Center &
Hotel Project 7.375% 1/1/2032 9,000 9,155
Overland Park KS Convention Center &
Hotel Project 9.00% 1/1/2032 21,100 21,451
----------------
$ 30,606
----------------
KENTUCKY (0.9%)
Jefferson County KY Health Fac. Rev.
(Jewish Hosp. Health) 5.65% 1/1/2017(2) 8,000 8,914
Jefferson County KY Health Fac. Rev.
(Jewish Hosp. Health) 5.70% 1/1/2021(2) 2,000 2,200
Kentucky Turnpike Auth. Econ. Dev. Road Rev.
(Revitalization Project) 5.25% 7/1/2015(4) 6,000 6,570
Russell KY Rev. Bon Secours Health System 5.625% 11/15/2030 16,000 16,289
----------------
$ 33,973
----------------
LOUISIANA (0.7%)
Calcasieu Parish LA IDR PCR
(Entergy Gulf States Inc.) 5.45% 7/1/2010 5,000 4,944
West Feliciana Parish LA PCR
(Entergy Gulf States Inc.) PUT 5.65% 9/1/2004 19,000 19,343
West Feliciana Parish LA PCR
(Gulf States Util.) 9.00% 5/1/2015 4,000 4,118
----------------
$ 28,405
----------------
MAINE (0.2%)
Jay ME Solid Waste Disposal Rev. 6.20% 9/1/2019 9,250 9,599
Maryland (2.9%)
Hagerstown MD Energy Financing Administration
Solid Waste Disposal Rev. (Hagerstown Fiber) 9.00% 10/15/2016 ** 17,500 53
Maryland Econ. Dev. Corp.
(Chesapeake Bay Conference Center) 7.50% 12/1/2014 200 182
Maryland Econ. Dev. Corp.
(Chesapeake Bay Conference Center) 7.75% 12/1/2031 25,000 21,846
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Medlantic/Helix) 5.25% 8/15/2038(4) 32,055 34,552
99
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 5.75% 7/1/2021 $ 3,930 $ 4,210
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 6.00% 7/1/2022 3,000 3,271
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 5.25% 7/1/2028 9,570 9,715
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 6.75% 7/1/2030 15,000 16,631
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 6.00% 7/1/2032 6,500 6,953
Maryland Health & Higher Educ. Fac. Auth. Rev.
(Univ. of Maryland Medical System) 5.25% 7/1/2034 18,250 18,495
----------------
$ 115,908
----------------
MASSACHUSETTS (4.7%)
Massachusetts Dev. Finance Agency Resource
Recovery Rev. (Waste Management Inc.) PUT 6.90% 12/1/2009 2,000 2,259
Massachusetts GO 5.50% 8/1/2018(2) 10,000 11,588
Massachusetts GO 5.50% 8/1/2019(1) 15,000 17,376
Massachusetts Health & Educ. Fac. Auth. Rev.
(Caritas Christi Obligated Group) 5.70% 7/1/2015 22,500 21,381
Massachusetts Health & Educ. Fac. Auth. Rev.
(Univ. of Massachusetts Memorial
Health Care Inc.) 6.50% 7/1/2011 6,900 7,560
Massachusetts Health & Educ. Fac. Auth. Rev.
(Univ. of Massachusetts Memorial
Health Care Inc.) 6.625% 7/1/2032 17,000 17,489
Massachusetts Housing Finance Agency Rev. 5.95% 10/1/2008(2) 1,560 1,594
Massachusetts Ind. Finance Agency Resource
Recovery Rev. (Refusetech Inc.) 6.30% 7/1/2005 34,500 35,309
Massachusetts Ind. Finance Agency Solid Waste
Disposal Rev. (Massachusetts Paper Co.) 8.50% 11/1/2012 ** 5,098 483
Massachusetts Muni. Wholesale Electric Co.
Power System Rev. 5.25% 7/1/2015(1) 7,535 8,296
Massachusetts Water Resources Auth. Rev. 6.50% 7/15/2019 43,700 55,308
Massachusetts Water Resources Auth. Rev. VRDO 1.35% 5/7/2003 LOC 5,800 5,800
Massachusetts Water Resources Auth. Rev. VRDO 1.35% 5/7/2003(3) 4,300 4,300
----------------
$ 188,743
----------------
MICHIGAN (1.0%)
Delta County MI Econ. Dev. Corp. Rev.
(Mead Westvaco) 6.25% 4/15/2027 11,000 11,110
Dickinson County MI Memorial Hosp. System Rev. 7.625% 11/1/2004 (Prere.) 440 456
Dickinson County MI Memorial Hosp. System Rev. 8.00% 11/1/2004 (Prere.) 5,700 6,362
Michigan Hosp. Finance Auth. Rev.
(McLaren Health Care Corp.) 5.00% 6/1/2028 17,000 16,251
Michigan Strategic Fund Limited Obligation Rev.
(UTD Waste Systems) 5.20% 4/1/2010 1,500 1,530
Univ. of Michigan Hosp. Rev.
(Medical Service Plan) VRDO 1.40% 5/1/2003 3,570 3,570
----------------
$ 39,279
----------------
MINNESOTA (2.1%)
Minneapolis & St. Paul MN Metro. Airport 5.20% 1/1/2024(2) 7,000 7,300
Minneapolis MN Health Care System
(Allina Health System) 6.00% 11/15/2023 7,000 7,471
Minneapolis MN Health Care System
(Allina Health System) 5.75% 11/15/2032 39,000 40,596
Rochester MN Health Care Fac. Rev.
(Mayo Foundation) 5.375% 11/15/2018 8,850 9,463
Rochester MN Health Care Fac. Rev.
(Mayo Foundation) 5.50% 11/15/2027 4,500 4,776
100
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Washington County MN Housing & Redev. Auth. Rev.
(Woodland Park) 0.00% 5/1/2005 (Prere.) $ 13,457 $ 3,229
Washington County MN Housing & Redev. Auth. Rev.
(Woodland Park) 9.75% 5/1/2005 (Prere.) 10,035 11,961
----------------
$ 84,796
----------------
MISSOURI (0.9%)
Curator of the Univ. of Missouri
System Fac. VRDO 1.35% 5/1/2003 9,855 9,855
Missouri Health & Educ. Fac. Auth. Health Fac. Rev.
(St. Luke's Mission Health System) 5.375% 11/15/2016(1) 7,000 7,520
St. Louis MO IDA Senior Lien Rev. 7.25% 12/15/2035 17,065 17,235
----------------
$ 34,610
----------------
NEBRASKA (1.3%)
Lancaster County NE Hosp. Auth. Rev.
(BryanLGH Medical Center) 5.25% 6/1/2031(2) 5,500 5,679
Lincoln NE Lincoln Electric System Rev. 5.25% 9/1/2016 21,345 23,442
Lincoln NE Lincoln Electric System Rev. 5.25% 9/1/2017 22,370 24,434
----------------
$ 53,555
----------------
NEW HAMPSHIRE (0.3%)
New Hampshire Business Finance Auth. PCR
(United Illuminating) PUT 4.55% 2/1/2004 10,000 10,133
NEW JERSEY (5.8%)
Gloucester County NJ Improvement Auth.
Solid Waste Resource Rev. PUT 6.85% 12/1/2009 5,000 5,669
Gloucester County NJ Improvement Auth.
Solid Waste Resource Rev. PUT 7.00% 12/1/2009 1,500 1,702
Hudson County NJ Improvement Auth.
Solid Waste Systems Rev. 6.125% 1/1/2019 2,000 1,894
Hudson County NJ Improvement Auth.
Solid Waste Systems Rev. 6.00% 1/1/2029 7,500 6,884
Hudson County NJ Improvement Auth.
Solid Waste Systems Rev. 6.125% 1/1/2029 10,000 9,179
Hudson County NJ Improvement Auth.
Solid Waste Systems Rev. 6.125% 1/1/2029 6,000 5,507
New Jersey Econ. Dev. Auth. Market
Transition Fac. Rev. 5.875% 7/1/2004(1) (Prere.) 8,000 8,598
New Jersey Econ. Dev. Auth. Rev.
(Kapkowski Road Landfill-DST Project
Elizabeth) 6.375% 5/15/2014 (Prere.) 2,250 2,789
New Jersey Econ. Dev. Auth. Rev.
(Kapkowski Road Landfill-DST Project
Elizabeth) 6.375% 5/15/2014 (Prere.) 30,500 37,809
New Jersey Econ. Dev. Auth. Rev.
(Presbyterian Home at Montgomery) 6.375% 11/1/2031 10,000 10,062
New Jersey Econ. Dev. Auth. Special Fac. Rev.
(Continental Airlines, Inc.) 6.625% 9/15/2012 26,400 19,286
New Jersey Econ. Dev. Auth. Special Fac. Rev.
(Continental Airlines, Inc.) 7.00% 11/15/2030 15,000 10,249
New Jersey Sports & Exposition Auth. Rev. 6.50% 3/1/2013 15,000 18,211
New Jersey Transit Corp. Capital GAN 5.50% 2/1/2009(2) 61,405 61,624
New Jersey Transp. Corp. COP 5.75% 9/15/2015 26,620 29,877
----------------
$ 229,340
----------------
NEW MEXICO (1.2%)
Farmington NM PCR
(El Paso Electric Co. Project) 6.375% 8/1/2005 5,000 5,064
101
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
New Mexico Highway Comm. Tax Rev. 6.00% 6/15/2014 $ 11,000 $ 12,841
New Mexico Hosp. Equipment Loan Council Hosp.
System Rev. (Presbyterian Healthcare Services) 5.50% 8/1/2030 27,550 28,047
----------------
$ 45,952
----------------
NEW YORK (12.0%)
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2012(4) 10,000 7,060
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2015(4) 10,000 6,058
Long Island NY Power Auth. Electric System Rev.
VRDO 1.30% 5/1/2003 LOC 8,950 8,950
Long Island NY Power Auth. Electric System Rev.
VRDO 1.40% 5/1/2003 LOC 1,100 1,100
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 6.00% 4/1/2020(1)(ETM) 18,000 21,940
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) VRDO 1.35% 5/7/2003(4) 48,500 48,500
Metro. New York Transp. Auth. Rev.
(Service Contract) 7.375% 7/1/2008 (ETM) 22,870 26,259
Metro. New York Transp. Auth. Rev.
(Service Contract) 5.50% 7/1/2014 15,460 17,712
Metro. New York Transp. Auth. Rev.
(Service Contract) 5.50% 7/1/2015 28,165 32,379
New York City NY GO 5.625% 6/1/2013(1) 9,625 10,926
New York City NY GO 5.625% 8/1/2013(1) 15,760 17,917
New York City NY GO 5.625% 6/1/2014(1) 5,825 6,626
New York City NY GO 5.625% 8/1/2014(1) 8,605 9,805
New York City NY GO 5.625% 8/1/2014(1) 34,810 39,666
New York City NY GO 5.75% 8/1/2016(2) 20,000 22,799
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.30% 5/1/2003 2,200 2,200
New York City NY Transitional Finance Auth.
Rev. VRDO 1.40% 5/1/2003 1,900 1,900
New York City NY Transitional Finance Auth.
Rev. VRDO 1.40% 5/1/2003 4,200 4,200
New York City NY Transitional Finance Auth.
Rev. VRDO 1.35% 5/7/2003 2,100 2,100
New York State Dormitory Auth. Rev.
(City Univ.) 6.375% 7/1/2008 1,340 1,369
New York State Dormitory Auth. Rev.
(City Univ.) 7.50% 7/1/2010 5,500 6,663
New York State Dormitory Auth. Rev.
(State Univ.) 7.50% 5/15/2013 13,380 17,441
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care) 4.90% 11/1/2010(1) 9,045 9,846
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care) 5.00% 11/1/2011(1) 8,150 8,813
New York State Housing Finance Agency Rev.
(Nursing Home & Health Care) 5.10% 11/1/2012(1) 9,925 10,720
New York State Local Govt. Assistance Corp. 6.00% 4/1/2005 (Prere.) 5,245 5,814
Niagara Falls NY (High School Fac.) COP 5.875% 6/15/2019(1) 8,000 9,182
Port Auth. of New York & New Jersey Rev. 5.50% 7/15/2014 13,620 14,589
Port Auth. of New York & New Jersey Rev. 5.50% 7/15/2015 14,315 15,285
Port Auth. of New York & New Jersey Special
Obligation Rev. (JFK International Airport) 6.25% 12/1/2008(1) 4,000 4,623
Triborough Bridge & Tunnel Auth. New York Rev. 5.50% 1/1/2017 (ETM) 10,000 11,638
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2018 15,000 16,338
Triborough Bridge & Tunnel Auth. New York Rev.
(Convention Center) 7.25% 1/1/2010 13,500 15,869
Westchester County NY Health Care Corp. Rev. 5.875% 11/1/2025 17,500 18,471
Westchester County NY Health Care Corp. Rev. 6.00% 11/1/2030 21,000 22,449
----------------
$ 477,207
----------------
NORTH CAROLINA (2.3%)
New Hanover County NC Hosp. Rev.
(New Haven Regional Medical Center) 5.75% 10/1/2016(2) 12,500 14,066
102
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
North Carolina Capital Fac. Finance Agency Rev.
(Duke Univ.) 5.25% 10/1/2039 $ 35,000 $ 36,443
North Carolina Eastern Muni. Power Agency Rev. 6.50% 1/1/2018 (ETM) 6,665 8,500
North Carolina Medical Care Comm. Health Care Fac.
(The Presbyterian Homes, Inc.) 6.875% 10/1/2021 4,000 4,343
North Carolina Medical Care Comm. Health Care Fac.
(The Presbyterian Homes, Inc.) 7.00% 10/1/2031 15,000 16,255
North Carolina Medical Care Comm. Retirement Fac.
First Mortgage Rev.
(United Methodist Retirement Home) 7.25% 10/1/2032 13,000 13,656
----------------
$ 93,263
----------------
NORTHERN MARIANA ISLES (0.3%)
Northern Mariana Islands GO 7.375% 6/1/2030 * 10,500 10,789
OHIO (3.4%)
Butler County OH Transp. Improvement Dist. Rev. 5.50% 4/1/2009(4) 3,000 3,416
Cleveland OH Airport System Rev. VRDO 1.35% 5/7/2003(4) 2,400 2,400
Hamilton County OH Hosp. Fac. Rev.
(Health Alliance of Greater Cincinnati) VRDO 1.25% 5/7/2003(1) 2,095 2,095
Kent State Univ. Ohio VRDO 1.35% 5/7/2003(1) 1,500 1,500
Montgomery County OH Hosp. Fac. Rev.
(Grandview Hosp.) 5.25% 12/1/2004(9) (ETM) 2,250 2,387
Montgomery County OH Hosp. Fac. Rev.
(Grandview Hosp.) 5.375% 12/1/2005(9) (ETM) 2,400 2,625
Montgomery County OH Hosp. Fac. Rev.
(Grandview Hosp.) 5.20% 12/1/2006(9) (ETM) 5,000 5,567
Montgomery County OH Hosp. Fac. Rev.
(Grandview Hosp.) 5.75% 12/1/2007(9) (ETM) 3,300 3,784
Montgomery County OH Hosp. Fac. Rev.
(Grandview Hosp.) 5.35% 12/1/2008(9) (ETM) 4,615 5,238
Montgomery County OH Hosp. Fac. Rev.
(Grandview Hosp.) 5.40% 12/1/2009(9) (ETM) 3,850 4,412
Ohio Air Quality Dev. Auth.
(Cincinnati Gas & Electric Co.) VRDO 1.40% 5/1/2003 LOC 2,700 2,700
Ohio Air Quality Dev. Auth. PCR
(Cleveland Electric) PUT 4.60% 10/1/2003 4,500 4,527
Ohio Air Quality Dev. Auth. PCR
(Ohio Edison Co.) PUT 5.80% 12/1/2004 10,000 10,216
Ohio Higher Educ. Fac. Comm. Rev.
(Kenyon College) VRDO 1.40% 5/7/2003 3,800 3,800
Ohio PCR (Sohio Air British Petroleum Co.) VRDO 1.35% 5/1/2003 5,700 5,700
Ohio Solid Waste Rev.
(General Motors Corp.) 6.30% 12/1/2032 12,000 12,640
Ohio Solid Waste Rev. (Waste Management Inc.) 4.85% 11/1/2007 15,465 16,040
Ohio Water Dev. Auth. PCR
(Cleveland Electric) PUT 4.60% 10/1/2003 3,550 3,571
Ohio Water Dev. Auth. PCR
(Pennsylvania Power Co.) PUT 5.90% 12/1/2004 5,200 5,320
Ohio Water Dev. Auth. PCR (Toledo-Edison) PUT 5.58% 6/15/2004 18,800 19,137
Parma OH Hosp. Improvement Rev.
(Parma Community General Hosp.) 5.35% 11/1/2018 2,500 2,567
Scioto County OH Marine Terminal Fac.
(Norfolk Southern Corp.) 5.30% 8/15/2013 14,750 15,166
----------------
$ 134,808
----------------
OKLAHOMA (1.1%)
Jackson County OK Memorial Hosp. Auth. Rev.
(Jackson Memorial) 6.75% 8/1/2004 1,560 1,560
Oklahoma Dev. Finance Auth. Rev.
(Hillcrest Hosp.) 5.625% 8/15/2029 17,850 13,331
Tulsa OK Muni. Airport Transp. Rev.
(American Airlines) PUT 5.80% 12/1/2004 17,500 10,256
Tulsa OK Muni. Airport Transp. Rev.
(American Airlines) PUT 5.65% 12/1/2008 32,500 18,371
----------------
$ 43,518
----------------
OREGON (1.2%)
Clackamas County OR Hosp. Fac. Auth. Rev.
(Legacy Health System) 5.25% 5/1/2021 5,000 5,130
103
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
Klamath Falls OR Electric Rev. 5.50% 1/1/2007 $ 11,000 $ 11,688
Klamath Falls OR Electric Rev. 5.75% 1/1/2013 20,000 20,140
Portland OR Sewer System Rev. 5.50% 6/1/2017(1) 5,000 5,472
Umatilla County OR Hosp. Fac. Auth. Rev.
(Catholic Health Initiative) 5.75% 12/1/2020 3,000 3,213
Umatilla County OR Hosp. Fac. Auth. Rev.
(Catholic Health Initiative) 5.50% 3/1/2032 4,000 4,110
----------------
$ 49,753
----------------
PENNSYLVANIA (4.5%)
Allegheny County PA Airport Rev.
(Pittsburgh International Airport) 5.75% 1/1/2011(1) 6,000 6,746
Beaver County PA IDA PCR (Toledo Edison) PUT 4.85% 6/1/2004 20,850 21,085
Bucks County PA IDA (Chandler Health Care) 5.70% 5/1/2009 1,620 1,589
Bucks County PA IDA (Chandler Health Care) 6.20% 5/1/2019 1,000 954
Delaware County PA Hosp. Auth. Rev.
(Crozer Chester Medical Center) 5.30% 12/1/2027 8,905 7,781
Delaware County PA IDA PCR (PECO Energy Co.)
PUT 5.20% 10/1/2004 1,250 1,300
Delaware County PA IDA Resource Recovery Rev.
(American Fuel) 6.10% 1/1/2006 5,500 5,874
Geisinger Health System Auth. of Pennsylvania Rev.
(Penn State Geisinger Health System) 5.50% 8/15/2023 27,700 30,346
Geisinger Health System Auth. of Pennsylvania Rev.
(Penn State Geisinger Health System) VRDO 1.35% 5/1/2003 1,400 1,400
Montgomery County PA IDA PCR (PECO Energy) PUT 5.20% 10/1/2004 16,275 16,929
Pennsylvania Convention Center Auth. Rev. 6.60% 9/1/2009(4) 2,500 2,723
Pennsylvania Convention Center Auth. Rev. 6.70% 9/1/2014(4) 3,500 3,808
Pennsylvania Convention Center Auth. Rev. 6.75% 9/1/2019(4) 3,695 4,019
Pennsylvania Econ. Dev. Auth. Rev.
(Colver Project) 7.05% 12/1/2010 2,500 2,587
Pennsylvania Econ. Dev. Auth. Rev.
(Colver Project) 7.125% 12/1/2015 14,000 14,530
Pennsylvania Higher Educ. Fac. Auth. Rev.
(Univ. of Pennsylvania Health System Obligated
Group) VRDO 1.35% 5/7/2003 LOC 3,900 3,900
Philadelphia PA Auth. Ind. Dev. Special Fac. Rev. 7.50% 5/1/2010 ** 4,436 6
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Methodist Hosp.) 7.75% 7/1/2004 (Prere.) 11,355 12,320
Philadelphia PA Hosp. & Higher Educ. Fac. Auth. Rev.
(Roxborough Memorial Hosp.) 7.25% 12/31/2007 185 132
Philadelphia PA Muni. Auth. Rev. 6.125% 7/15/2008 4,000 4,105
Philadelphia PA Muni. Auth. Rev. 6.25% 7/15/2013 5,785 5,925
Philadelphia PA Muni. Auth. Rev. 6.30% 7/15/2017 1,750 1,791
Philadelphia PA Water & Waste Water Rev. 7.00% 6/15/2011(3) 21,500 26,782
Sayre PA Health Care Fac. Auth. Rev.
(VHA of Pennsylvania, Pooled Capital Asset
Financial Program) VRDO 1.40% 5/7/2003(2) 700 700
----------------
$ 177,332
----------------
RHODE ISLAND (0.1%)
Rhode Island Convention Center Auth. Rev. 5.75% 5/15/2003(2) (Prere.) 5,000 5,110
SOUTH CAROLINA (1.1%)
Richland County SC (International Paper) 6.10% 4/1/2023 22,750 22,873
South Carolina Jobs Econ. Dev. Auth. Hosp.
Improvement Rev. (Palmetto Health Alliance) 7.375% 12/15/2021 19,500 21,542
----------------
$ 44,415
----------------
104
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (2.0%)
Memphis-Shelby County TN Airport Auth. Rev. 5.05% 9/1/2012 $ 5,000 $ 5,297
Memphis-Shelby County TN Airport Auth. Rev. 6.00% 3/1/2024(2) 7,450 8,128
Metro. Govt. of Nashville & Davidson
County TN Electric Rev. 5.20% 5/15/2023 17,000 17,730
Metro. Govt. of Nashville & Davidson County TN GO 5.50% 10/15/2015(3) 14,935 16,872
Metro. Govt. of Nashville & Davidson County TN GO 5.50% 10/15/2016(3) 13,545 15,218
Metro. Govt. of Nashville & Davidson County TN
Health & Educ. Fac. (Vanderbilt Univ.) VRDO 1.32% 5/1/2003 14,500 14,500
Springfield TN Health & Educ. Fac. Board Hosp. Rev.
(Northcrest Medical Center) 4.90% 8/1/2008 3,490 3,516
----------------
$ 81,261
----------------
TEXAS (8.2%)
Austin TX Airport System Rev. 6.45% 11/15/2020(1) 17,040 18,962
Brazos River Auth. Texas PCR
(Texas Util. Electric Co.) PUT 5.40% 5/1/2006 10,970 10,946
Brazos River Auth. Texas PCR
(Texas Util. Electric Co.) PUT 5.40% 5/1/2006 24,770 24,715
Brazos River Auth. Texas Rev.
(Reliant Energy Inc.) 5.375% 4/1/2019 6,000 5,019
Brazos River Auth. Texas Rev.
(Reliant Energy Inc.) PUT 7.75% 12/1/2018 5,000 5,211
Brazos River TX Harbor Navigation Dist. Brazoria
County Environmental
(Dow Chemical Co. Project) PUT 5.20% 5/15/2008 35,200 36,428
Harris County TX GO 0.00% 10/1/2013(1) 9,630 6,221
Harris County TX GO VRDO 1.35% 5/7/2003 900 900
Harris County TX Health Fac. Dev. Corp. Rev.
(Methodist Hosp.) VRDO 1.35% 5/1/2003 16,800 16,800
Harris County TX Hosp. Dist. Rev. 7.40% 2/15/2010(2) 10,165 11,984
Harris County TX Hosp. Dist. Rev. 7.40% 2/15/2010(2)(ETM) 7,335 8,429
Harris County TX Hosp. Dist. Rev. 6.00% 2/15/2014(1) 13,985 15,813
Harris County TX Sports Auth. Rev. 0.00% 11/15/2026(1) 10,000 2,872
Harris County TX Sports Auth. Rev. 0.00% 11/15/2028(1) 10,000 2,560
Harris County TX Sports Auth. Rev. 0.00% 11/15/2030(1) 10,000 2,299
Hidalgo County TX Health Mission Hosp. 6.875% 8/15/2026 7,880 7,883
Houston TX Airport System Special Fac. Rev.
(Continental Airlines Inc.) 6.75% 7/1/2029 7,815 4,615
Houston TX Water & Sewer System Rev. 0.00% 12/1/2010(2) 5,000 3,788
Houston TX Water & Sewer System Rev. 0.00% 12/1/2011(2) 24,810 17,735
Houston TX Water & Sewer System Rev. 0.00% 12/1/2012(2) 26,000 17,623
Lower Colorado River Auth. TX PCR
(Samsung Austin Semiconductor LLC) 6.95% 4/1/2030 11,000 11,979
Lower Colorado River Auth. TX Rev. 6.00% 5/15/2013(4) 9,700 11,343
Odessa TX Junior College Dist. Rev. 8.125% 6/1/2005 (Prere.) 9,180 10,548
Sabine River Auth. TX PCR
(Texas Util. Electric Co.) PUT 5.75% 11/1/2011 11,000 10,719
San Antonio TX Electric & Gas Rev. 5.00% 2/1/2017 (ETM) 2,560 2,831
Texas Muni. Power Agency Rev. 0.00% 9/1/2016(1) 13,845 7,539
Texas Muni. Power Agency Rev. 0.00% 9/1/2016(1)(ETM) 155 86
Texas Turnpike Auth. Central Texas
Turnpike System Rev. 0.00% 8/15/2030(2) 55,000 12,779
Texas Turnpike Auth. Dallas Northway Rev.
(President George Bush Turnpike) 0.00% 1/1/2011(2) 7,000 5,186
Texas Water Dev. Board GO 5.75% 8/1/2031 21,395 23,343
Tyler TX Health Fac. Dev. Corp.
(Mother Frances Hosp.) 5.30% 7/1/2007 2,250 2,254
Tyler TX Health Fac. Dev. Corp.
(Mother Frances Hosp.) 5.40% 7/1/2008 2,500 2,503
Tyler TX Health Fac. Dev. Corp.
(Mother Frances Hosp.) 5.50% 7/1/2009 2,000 2,002
Tyler TX Health Fac. Dev. Corp.
(Mother Frances Hosp.) 5.625% 7/1/2013 1,680 1,681
----------------
$ 325,596
----------------
105
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
UTAH (1.0%)
Intermountain Power Agency Utah Power
Supply Rev. 5.70% 7/1/2017(1) $ 12,000 $ 13,451
Intermountain Power Agency Utah Power
Supply Rev. 5.00% 7/1/2021 9,460 9,476
Intermountain Power Agency Utah Power
Supply Rev. 5.00% 7/1/2021 12,500 12,710
Salt Lake County UT PCR (British Petroleum)
VRDO 1.35% 5/1/2003 5,200 5,200
----------------
$ 40,837
----------------
VIRGIN ISLANDS (1.5%)
Virgin Islands Public Finance Auth. Rev. 5.50% 10/1/2007 6,530 7,192
Virgin Islands Public Finance Auth. Rev. 6.00% 10/1/2008 4,915 5,312
Virgin Islands Public Finance Auth. Rev. 5.20% 10/1/2009 3,065 3,303
Virgin Islands Public Finance Auth. Rev. 5.75% 10/1/2013 11,000 11,365
Virgin Islands Public Finance Auth. Rev. 5.875% 10/1/2018 19,000 19,481
Virgin Islands Public Finance Auth. Rev. 6.375% 10/1/2019 10,000 11,143
----------------
$ 57,796
----------------
VIRGINIA (4.0%)
Alexandria VA Redev. & Housing Auth. Rev.
(Portals West) 7.25% 10/1/2031 5,860 5,715
Alexandria VA Redev. & Housing Auth. Rev.
(Portals West) 8.25% 4/1/2032 475 461
Charles City County VA IDA Solid Waste Disposal Rev.
(Waste Management) 4.875% 2/1/2009 7,750 7,868
Chesterfield County VA Mortgage Rev.
(Brandermill Woods) 6.50% 1/1/2028 15,586 15,303
Henrico County VA Econ. Dev. (Bon Secours) 5.60% 11/15/2030 7,600 7,878
Lynchburg VA IDA Healthcare Facs. Rev.
(Centra Health) 5.20% 1/1/2018 3,500 3,617
Metro. Washington Airports Auth. Airport
System Rev. 5.70% 10/1/2007(1) 12,900 13,706
Metro. Washington Airports Auth. Airport
System Rev. 5.50% 10/1/2009(3) 6,795 7,458
Metro. Washington Airports Auth. Airport
System Rev. 5.50% 10/1/2010(3) 7,270 8,062
Metro. Washington Airports Auth. Airport
System Rev. 5.50% 10/1/2013(1) 2,500 2,760
Metro. Washington Airports Auth. Airport
System Rev. 5.875% 10/1/2015(1) 7,400 7,899
Metro. Washington Airports Auth. Airport
System Rev. 5.50% 10/1/2016(1) 2,775 3,023
Metro. Washington Airports Auth. Airport
System Rev. 5.50% 10/1/2017(1) 2,000 2,164
Metro. Washington Airports Auth. Airport
System Rev. 5.50% 10/1/2018(1) 2,000 2,151
Metro. Washington Airports Auth. Airport
System Rev. 5.50% 10/1/2027(1) 24,000 25,080
Pocahontas Parkway Assoc. Virginia
Route 895 Connector Toll Road Rev. 5.25% 8/15/2007 4,600 4,026
Pocahontas Parkway Assoc. Virginia
Route 895 Connector Toll Road Rev. 5.25% 8/15/2009 6,000 4,961
Pocahontas Parkway Assoc. Virginia
Route 895 Connector Toll Road Rev. 5.00% 8/15/2010 6,100 4,829
Pocahontas Parkway Assoc. Virginia
Route 895 Connector Toll Road Rev. 5.00% 8/15/2011 3,900 2,992
Pocahontas Parkway Assoc. Virginia
Route 895 Connector Toll Road Rev. 5.50% 8/15/2028 30,000 19,867
Virginia Beach VA Dev. Auth. Residential Care Fac.
Mortgage Rev. (Westminster Canterbury) 7.25% 11/1/2032 9,000 9,611
----------------
$ 159,431
----------------
WASHINGTON (1.6%)
Chelan County WA Public Util. Dist.
(Rock Island Hydro) 0.00% 6/1/2010(1) 19,550 15,053
Chelan County WA Public Util. Dist.
(Rock Island Hydro) 0.00% 6/1/2011(1) 11,400 8,288
Chelan County WA Public Util. Dist.
(Rock Island Hydro) 0.00% 6/1/2012(1) 19,650 13,551
Port of Seattle WA Rev. 5.75% 5/1/2014 15,600 16,159
Spokane WA Downtown Parking Rev.
(River Park Square) 5.60% 8/1/2019 6,000 3,030
Washington (Motor Vehicle Fuel Tax) GO 5.75% 7/1/2018(3) 6,790 7,476
---------------
$ 63,557
---------------
106
- ----------------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
HIGH-YIELD TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA (0.3%)
West Virginia Building Comm. Rev.
(Jail & Correction Fac.) 7.00% 7/1/2013(1) (ETM) $ 8,390 $ 10,809
----------------
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $3,740,098) $ 3,909,800
- ----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.8%)
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets-Note B 114,692
Liabilities (44,271)
----------------
$ 70,421
----------------
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%) $3,980,221
==================================================================================================================================
(+)See Note A in Notes to Financial Statements.
*Securities with a value of $9,000,000 have been segregated as initial margin
for open futures contracts.
**Non-income-producing security-interest payments in default.
For key to abbreviations and other references, see page 108.
- --------------------------------------------------------------------------------
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
Amount
(000)
- --------------------------------------------------------------------------------
Paid-in Capital $ 3,899,832
Undistributed Net Investment Income --
Accumulated Net Realized Losses (87,236)
Unrealized Appreciation (Depreciation)
Investment Securities 169,702
Futures Contracts (2,077)
- --------------------------------------------------------------------------------
NET ASSETS $3,980,221
================================================================================
Investor Shares-Net Assets
Applicable to 248,105,843 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $ 2,649,250
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-INVESTOR SHARES $ 10.68
================================================================================
Admiral Shares-Net Assets
Applicable to 124,647,176 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $ 1,330,971
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-ADMIRAL SHARES $ 10.68
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
107
KEY TO ABBREVIATIONS
BAN-Bond Anticipation Note.
COP-Certificate of Participation.
CP-Commercial Paper.
FR-Floating Rate.
GAN-Grant Anticipation Note.
GO-General Obligation Bond.
IDA-Industrial Development Authority Bond.
IDR-Industrial Development Revenue Bond.
PCR-Pollution Control Revenue Bond.
PUT-Put Option Obligation.
RAN-Revenue Anticipation Note.
TAN-Tax Anticipation Note.
TOB-Tender Option Bond.
TRAN-Tax Revenue Anticipation Note.
VRDO-Variable Rate Demand Obligation.
(ETM)-Escrowed to Maturity.
(Prere.)-Prerefunded.
+ Security purchased on a when-issued or delayed delivery basis for which the
fund has not taken delivery as of April 30, 2003.
SCHEDULED PRINCIPAL AND INTEREST PAYMENTS ARE GUARANTEED BY:
(1) MBIA (Municipal Bond Insurance Association).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) FSA (Financial Security Assurance).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
The insurance does not guarantee the market value of the municipal bonds.
LOC-Scheduled principal and interest payments are guaranteed by bank letter of
credit.
108
ALL RIGHTS RESERVED.
VANGUARD MARKETING
CORPORATION, DISTRIBUTOR.
F952 062003
Item 2: Code(s) of Ethics for senior financial officers - Item not applicable to
semi-annual report.
Item 3: Audit Committee Financial Expert - Item not applicable to semi-annual
report.
Item 4: Principal Accountant Fees and Services - Item not applicable to
semi-annual report.
Item 5: Not Applicable.
Item 6: Reserved.
Item 7: Not applicable.
Item 8: Reserved.
Item 9: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and
Financial Officers concluded that the Registrant's Disclosure Controls and
Procedures are effective based on their evaluation of the Disclosure Controls
and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Controls. There were no significant changes in Registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Item 10: Exhibits attached hereto.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD MUNICIPAL BOND FUNDS
BY:_____________(signature)________________
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER
Date: June 16, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
VANGUARD MUNICIPAL BOND FUNDS
BY:_____________(signature)________________
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER
Date: June 16, 2003
VANGUARD MUNICIPAL BOND FUNDS
BY:_____________(signature)________________
(HEIDI STAM)
THOMAS J. HIGGINS*
TREASURER
Date: June 16, 2003
*By Power of Attorney. See File Number 2-57689, filed on December 26, 2002.
Incorporated by Reference.