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: 811-4570
Name of Registrant: Vanguard New York Tax-Free 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: November 30
Date of reporting period: December 1, 2002 - May 31, 2003
Item 1: Reports to Shareholders
VANGUARD(R) NEW YORK TAX-EXEMPT FUNDS
SEMIANNUAL REPORT
MAY 31, 2003
VANGUARD(R) NEW YORK TAX-EXEMPT MONEY MARKET FUND
VANGUARD(R) NEW YORK LONG-TERM TAX-EXEMPT FUND
[THE VANGUARD GROUP LOGO]
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.
================================================================================
SUMMARY
================================================================================
* Vanguard New York Tax-Exempt Money Market Fund and Vanguard New York Long-Term
Tax-Exempt Fund returned 0.5% and 7.5%, respectively, during the six months
ended May 31, 2003, outperforming their average peers.
* Interest rates continued to decline from already-low levels.
* The investing skills of the funds' adviser and the funds' low costs explained
the strong relative returns.
================================================================================
CONTENTS
================================================================================
1 Letter from the Chairman
5 Report from the Adviser
8 Fund Profiles
10 Glossary of Investment Terms
11 Performance Summaries
13 Financial Statements
Letter from the Chairman [PHOTO JOHN J. BRENNAN]
John J. Brennan
Dear Shareholder,
During the first half of the Vanguard New York Tax-Exempt Funds' 2003 fiscal
year, interest rates declined to levels not seen in decades, boosting prices for
bonds, particularly those with the longest maturities. The funds outperformed
their average peer funds during the six months ended May 31, 2003, with both
share classes of the Long-Term Tax-Exempt Fund returning 7.5% and the Tax-Exempt
Money Market Fund returning 0.5%.
During the period, the yield of the Long-Term Tax-Exempt Fund's Investor
Shares slid 72 basis points (0.72 percentage point) to 2.97%. For Admiral
Shares, the yield fell 78 basis points to 3.02%. For a New York resident in the
highest federal tax bracket, that amounts to a taxable equivalent yield
(accounting for both state and federal taxes, but not for local tax or the
possibility that an individual might be subject to the alternative minimum tax)
of 4.91% (4.99% for Admiral Shares). The yield of the Money Market Fund changed
less dramatically, dropping 13 basis points to 0.99%, a taxable equivalent yield
of 1.64%.
- -------------------------------------------------
TOTAL RETURNS SIX MONTHS ENDED
MAY 31, 2003
- -------------------------------------------------
VANGUARD NEW YORK TAX-EXEMPT
MONEY MARKET FUND 0.5%
(SEC 7-Day Annualized Yield: 0.99%)
Average New York Tax-Exempt
Money Market Fund* 0.3
- -------------------------------------------------
VANGUARD NEW YORK
LONG-TERM TAX-EXEMPT FUND
Investor Shares 7.5%
Admiral Shares 7.5
Average New York Municipal Debt Fund* 6.2
Lehman 10 Year Municipal Bond Index 7.2
Lehman Municipal Bond Index 6.5
- -------------------------------------------------
*Derived from data provided by Lipper Inc.
The returns of the Vanguard New York Tax-Exempt Funds and those of their
comparative standards appear in the table above; the components of the funds'
returns are presented in the table on page 4.
INTEREST RATES CONTINUED THEIR DOWNWARD MARCH
During the past six months, both taxable and tax-exempt bonds outpaced the 5.1%
return of the broad U.S. stock market, as represented by the Wilshire 5000 Total
Market Index. The Lehman Brothers Aggregate Bond Index, a proxy for the broad
taxable investment-grade bond market, returned 6.3%, and the Lehman Municipal
Bond Index returned 6.5%.
--------------------------
ADMIRAL(TM) SHARES
A lower-cost class of
shares available to many
longtime shareholders
and to those with
significant investments
in the fund.
--------------------------
1
- --------------------------------------------------------------------------------
MARKET BAROMETER TOTAL RETURNS
PERIODS ENDED MAY 31, 2003
- --------------------------------------------------------------------------------
SIX ONE FIVE
MONTHS YEAR YEARS*
- --------------------------------------------------------------------------------
BONDS
Lehman Aggregate Bond Index 6.3% 11.6% 7.8%
(Broad taxable market)
Lehman Municipal Bond Index 6.5 10.4 6.5
Citigroup 3-Month Treasury Bill Index 0.6 1.5 4.0
- --------------------------------------------------------------------------------
STOCKS
Russell 1000 Index (Large-caps) 4.6% -7.7% -0.8%
Russell 2000 Index (Small-caps) 9.3 -8.2 0.6
Wilshire 5000 Index (Entire market) 5.1 -7.2 -0.9
MSCI All Country World Index Free
ex USA (International) 4.6 -10.8 -3.4
================================================================================
CPI
Consumer Price Index 1.2% 2.1% 2.4%
- --------------------------------------------------------------------------------
*Annualized.
At the short-term end of the fixed income maturity range, the yield of a
high-quality 1-year municipal note fell 35 basis points to 0.98%. Longer-term
interest rates fell more dramatically, with the yield of a 10-year municipal
note declining 77 basis points to 3.10%. In an unusual turn of events, the
yields of the shortest-term municipal securities finished the period almost as
high or higher than those of their fully taxable counterparts. On May 31, for
example, the New York Tax-Exempt Money Market Fund yielded more than Vanguard(R)
Prime Money Market Fund, before taking the tax-exempt fund's significant tax
advantages into account.
STOCKS RALLIED AFTER A WEAK START
U.S. stocks initially drifted lower during the six-month period, but began a
rally at the start of the Iraqi war in mid-March. The overall U.S. stock market,
as measured by the Wilshire 5000 Index, sustained a loss of -9.5% during the
first three months of the period, followed by a return of 16.1% in the latter
half, for a six-month return of 5.1%.
TIMES GOT TOUGH, BUT RETURNS WERE STRONG
Sluggishness in the broad U.S. economy has reverberated through state and local
budgets, reducing--or, at the least, arresting the growth of--tax revenues that
had burnished governments' financial statements during the economic boom of the
late 1990s. Despite a reversal of fortune in New York's fiscal condition, the
state's municipal bonds turned in strong returns during the past six months as
investors demonstrated enthusiasm for New York debt. The New York Long-Term
Tax-Exempt Fund produced a return in capital of 5.3%. Including income
distributions, the fund's total returns were a very strong 7.5%.
The flip side of rising prices is, of course, falling yields, and, as noted
earlier, the yield of the Long-Term Tax Exempt Fund's Investor Shares fell to
2.97%.
Declining interest rates were especially tough on money market fund
investors. Because the New York Tax-Exempt Money Market Fund, like all money
2
market funds, strives to maintain a share price of $1 (which is expected, but
not guaranteed), lower interest rates simply meant lower returns, not rising
share prices. For the half-year, the fund returned just 0.5%.
Both of our New York funds outpaced their average peers. This
outperformance reflects not only the skillful credit analysis and portfolio
management of our adviser, Vanguard Fixed Income Group, but also our funds' low
costs. While the average New York tax-exempt municipal fund charged an expense
ratio of 1.08%, our Long-Term Tax-Exempt Fund's Investor Shares' annualized
expense ratio was 0.19% ($1.90 per $1,000 invested); for Admiral Shares, the
expense ratio was 0.12%. Our funds' sizable cost advantage relative to
competitors is especially important with current bond yields being so low. This
cost advantage is also equally imposing on the money market side: our fund's
expense ratio, 0.16%; the average competitor's, 0.62%.
A SIMPLE STRATEGY FOR LONG-TERM SUCCESS
Industrywide, taxable and tax-exempt bonds have attracted strong interest as
investors have sought refuge from an unsettled stock market and economy. We are
concerned that some investors may be buying bonds not as a component of a
diversified portfolio but simply because bonds have "done best" lately-- a
recipe for disappointment.
We advise establishing an asset allocation of stock, bond, and money market
funds, consistent with each investor's unique circumstances and goals, and then
sitting tight. This approach is the most effective means for withstanding market
fluctuations en route to long-term financial goals.
Thank you for entrusting your assets to us.
Sincerely,
/S/ JOHN J. BRENNAN
John J. Brennan
Chairman and Chief Executive Officer
June 19, 2003
3
- --------------------------------------------------------------------------------
YOUR FUND'S PERFORMANCE AT A GLANCE NOVEMBER 30, 2002-MAY 31, 2003
DISTRIBUTIONS PER SHARE
--------------------------------
STARTING ENDING INCOME CAPITAL
SHARE PRICE SHARE PRICE DIVIDENDS GAINS
- --------------------------------------------------------------------------------
New York Tax-Exempt Money Market Fund $ 1.00 $ 1.00 $0.005 $0.000
- --------------------------------------------------------------------------------
New York Long-Term Tax-Exempt Fund
Investor Shares $11.38 $11.85 $0.244 $0.125
Admiral Shares 11.38 11.85 0.247 0.125
- --------------------------------------------------------------------------------
================================================================================
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 for serving our shareholders with
great skill, integrity, and commitment since he formed 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
================================================================================
4
REPORT FROM THE ADVISER
During the six months ended May 31, 2003, the Vanguard New York Tax-Exempt Funds
earned total returns that topped those of their average peers, with the
Long-Term Tax-Exempt Fund returning 7.5% and the Tax-Exempt Money Market Fund
returning 0.5%. However, the funds' yields finished the period lower than they
were six months ago, reflecting a decline in 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 GDP
expanded at an annual rate of 1.4%, unchanged from 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 ended. However, the postwar "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 even though interest rates have fallen to
levels not seen since the 1950s. After an extended string of rate cuts in 2001
and one cut in 2002, the target federal funds rate remained unchanged during the
period at 1.25%. (The Federal Reserve Board shaved 25 basis points--0.25
percentage point--from the rate on June 25.) The Fed 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 costs) was just 1.6% for the 12 months ended May 31. Although
unlikely, deflation has recently emerged as a threat.
Overall, it appears as if consumers are still carrying the economy on their
backs. They are, however, showing signs of tiring. Unemployment rose to 6.1% in
May, sending a chill through the labor market.
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 interest rates.
STATE GOVERNMENTS CAME UNDER FISCAL PRESSURE
Short-term municipal securities underperformed their U.S. Treasury counterparts
during the recent bond market rally, while longer-term municipal bonds performed
comparably to longer-term Treasuries.
----------------------------------------
INVESTMENT PHILOSOPHY
The adviser believes that each fund,
while operating within stated
maturity and stringent quality
targets, can achieve a high
lelve of current income that
is exempt from federal and
New Jersey income taxes by
investing in high-quality securities
issued by New Jersey state, county,
and municipal governments.
----------------------------------------
5
The adjacent table provides details on the decline in muni yields.
- -----------------------------------------------------------------
MUNICIPAL BOND YIELDS (AAA-RATED GENERAL-OBLIGATION ISSUES)
CHANGE
MATURITY MAY 31, 2003 NOV. 30, 2002 (BASIS POINTS)
- -----------------------------------------------------------------
2 years 1.13% 1.70% -57
5 years 2.08 2.75 -67
10 years 3.10 3.87 -77
30 years 4.34 5.01 -67
- -----------------------------------------------------------------
Source: The Vanguard Group, Inc.
Across the country, state tax revenues continued to fall in the fiscal
half-year, and the declines created large gaps in state government budgets. 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 options for one-time revenue enhancement,
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 investors fear large 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 New York Tax-Exempt
Funds did not own any tobacco-related debt on May 31.)
Both the State and the City of New York are facing significant financial
pressures brought on by the aftermath of September 11, 2001, and a prolonged
downturn in the stock market. Both have been engaged in tough negotiations over
ways to cut spending and raise revenues. As of this writing, the state has
passed a budget over the governor's veto, and the passage of the city's budget
is imminent. As noted in our annual report to you six months ago, New York has
been issuing significant amounts of new municipal debt. During the past six
months, the state issued $18.7 billion in new municipal debt, at a rate of
issuance 21% higher than that of a year ago.
MUNIS OFFER GOOD VALUE FOR MANY INVESTORS
During the six months, municipal bonds offered good value. The yield of a
2-year, tax-exempt municipal note on May 31 was 1.13%, just a bit lower than the
1.33% yield of a comparable Treasury security, whose income is subject to
federal tax. For longer maturities, 5-year notes offered 91% of the yield of
Treasuries; 10-year notes, 92%; and 30-year bonds, 99%.
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
6
levels--money market yields were hovering around 1% on May 31--low costs are
especially valuable.
Ian A. MacKinnon, Managing Director
Christopher M. Ryon, Principal
Pamela Wisehaupt Tynan, Principal
Kathryn Allen, Principal
Vanguard Fixed Income Group
June 26, 2003
7
FUND PROFILES AS OF MAY 31, 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 10.
NEW YORK TAX-EXEMPT
MONEY MARKET FUND
- ----------------------------------
FINANCIAL ATTRIBUTES
Yield 1.0%
Average Maturity 34 days
Average Quality MIG-1
Expense Ratio 0.16%*
- ----------------------------------
- -------------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
MIG-1/SP-1+ 56.4%
A-1/P-1 32.0
AAA/AA 10.5
A 1.1
- -------------------------------------------------
Total 100.0%
- -------------------------------------------------
*Annualized.
8
NEW YORK LONG-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Issues 264 8,755 46,532
Yield 3.1% 3.2%
Investor Shares 3.0%
Admiral Shares 3.0%
Yield to Maturity 3.0% -- --
Average Coupon 4.8% 5.2% 5.2%
Average Maturity 7.5 years 9.8 years 13.8 years
Average Quality AAA AA+ AA+
Average Duration 5.8 years 6.6 years 7.8 years
Expense Ratio -- --
Investor Shares 0.19%+
Admiral Shares 0.12%+
Cash Investments 1.1% -- --
- --------------------------------------------------------------------------------
- -----------------------------------------------
Distribution by Credit Quality (% of portfolio)
- -----------------------------------------------
AAA 81.2%
AA 16.8
A 0.9
BBB 1.1
- -----------------------------------------------
Total 100.0%
- -----------------------------------------------
- -----------------------------
INVESTMENT FOCUS
AVERAGE MATURITY LONG
CREDIT QUALITY HIGH
- -----------------------------
- -------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- -------------------------------------------------------------
R-Squared 0.97 1.00 0.98 1.00
Beta 1.07 1.00 1.20 1.00
- -------------------------------------------------------------
- -------------------------------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 10.8%
1-5 Years 18.2
5-10 Years 56.6
10-20 Years 10.9
20-30 Years 2.4
Over 30 Years 1.1
- -------------------------------------------------------------
Total 100.0%
- -------------------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Annualized.
Visit our website at
www.vanguard.com
for regularly updated fund information.
9
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 1 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.
- --------------------------------------------------------------------------------
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)
- --------------------------------------------------------------------------------
10
PERFORMANCE SUMMARIES AS OF MAY 31, 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 does the
total return.
NEW YORK TAX-EXEMPT MONEY MARKET FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) SEPTEMBER 3, 1997-MAY 31, 2003
- --------------------------------------------------------------------------------
NEW YORK TAX-EXEMPT AVERAGE
MONEY MARKET FUND FUND*
FISCAL TOTAL TOTAL
YEAR RETURN RETURN
- --------------------------------------------------------------------------------
1997 0.8% 0.8%
1998 3.3 2.9
1999 3.0 2.6
2000 3.9 3.4
2001 2.8% 2.4%
2002 1.3 0.9
2003** 0.5 0.3
- --------------------------------------------------------------------------------
SEC 7-Day Annualized Yield (5/31/2003): 0.99%
- --------------------------------------------------------------------------------
*Average New York Tax-Exempt Money Market Fund; derived from data provided by
Lipper Inc.
**Six months ended May 31, 2003.
Note: See Financial Highlights table on page 28 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.
SINCE INCEPTION
ONE FIVE ---------------------------
INCEPTION DATE YEAR YEARS CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
New York Tax-Exempt
Money Market Fund 9/3/1997 1.20% 2.70% 0.00% 2.77% 2.77%
- --------------------------------------------------------------------------------
11
PERFORMANCE SUMMARIES (CONTINUED)
NEW YORK LONG-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) NOVEMBER 30, 1992-MAY 31, 2003
- --------------------------------------------------------------------------------
NEW YORK LONG-TERM
TAX-EXEMPT FUND INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
1993 6.4% 6.0% 12.4% 11.7%
1994 -11.5 5.1 -6.4 -4.5
1995 13.5 6.4 19.9 18.6
1996 0.4 5.4 5.8 5.7
1997 0.9 5.5 6.4 7.1
1998 2.4 5.3 7.7 8.1
1999 -7.0 4.7 -2.3 -0.4
2000 3.9 5.7 9.6 7.7
2001 3.4 5.0 8.4 8.2
2002 2.2 4.6 6.8 6.7
2003** 5.3 2.2 7.5 7.2
- --------------------------------------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Six months ended May 31, 2003.
Note: See Financial Highlights tables on page 29 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
ONE FIVE ---------------------------
INCEPTION DATE YEAR YEARS CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
New York Long-Term
Tax-Exempt Fund
Investor Shares 4/7/1986 10.78% 6.18% 1.11% 5.30% 6.41%
Admiral Shares 5/14/2001 10.85 7.84* -- -- --
- --------------------------------------------------------------------------------
*Return since inception.
12
FINANCIAL STATEMENTS MAY 31, 2003 (UNAUDITED)
STATEMENT OF NET ASSETS
This Statement provides a detailed list of each fund's municipal bond holdings,
including each security's market value on the last day of the reporting period
and information on credit enhancements (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, 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 usually approximates the amount
available to distribute to shareholders as taxable capital gains as of the
statement date, but may differ 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.
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (99.4%)
- -----------------------------------------------------------------------------------------------------------
Allegany County NY IDA (Atlantic Richfield Project) VRDO 1.38% 6/2/2003 3,700 3,700
Bedford NY Central School District BAN 2.25% 6/27/2003 3,500 3,502
East Hampton Township NY BAN 2.25% 7/31/2003 11,172 11,187
Erie County NY Water Auth. Rev. VRDO 1.10% 6/9/2003(2) 11,400 11,400
Half Hollow Hills NY Central School Dist. TAN 2.25% 6/26/2003 10,000 10,006
Hempstead NY BAN 1.75% 4/16/2003 5,075 5,104
Jericho NY Unified Free School Dist.TAN 2.50% 6/25/2003 10,000 10,006
Long Island NY Power Auth. Electric System Rev. VRDO 1.30% 6/2/2003LOC 23,300 23,300
Long Island NY Power Auth. Electric System Rev. VRDO 1.30% 6/2/2003LOC 19,000 19,000
Long Island NY Power Auth. Electric System Rev. VRDO 1.10% 6/9/2003(1) 4,000 4,000
Metro. New York Transp. Auth. Rev. (Transit Rev.) TOB VRDO 1.22% 6/9/2003(1)* 3,300 3,300
Metro. New York Transp. Auth. Rev. (Transit Rev.) VRDO 1.15% 6/9/2003(4) 25,000 25,000
Metro. New York Transp. Auth. Rev. VRDO 1.15% 6/9/2003(4) 16,900 16,900
Nassau County NY Interim Finance Auth. VRDO 1.10% 6/9/2003(4) 8,500 8,500
Nassau County NY Interim Finance Auth. VRDO 1.15% 6/9/2003(4) 27,500 27,500
New York City NY Cultural Resources
Rev. (Asia Society) VRDO 1.15% 6/9/2003LOC 12,000 12,000
New York City NY Cultural Resources
Rev. (Carnegie Hall) VRDO 1.20% 6/9/2003LOC 14,835 14,835
New York City NY Cultural Resources
Rev. (Solomon R. Guggenheim Foundation) VRDO 1.30% 6/2/2003LOC 18,607 18,607
New York City NY GO TOB VRDO 1.20% 6/9/2003(1)* 9,995 9,995
New York City NY GO TOB VRDO 1.24% 6/9/2003(3)* 8,475 8,475
New York City NY GO TOB VRDO 1.24% 6/9/2003(3)* 5,830 5,830
New York City NY GO TOB VRDO 1.21% 6/9/2003(4)* 6,144 6,144
New York City NY GO TOB VRDO 1.24% 6/9/2003(3)* 5,645 5,645
New York City NY GO VRDO 1.30% 6/2/2003(1) 1,500 1,500
- -----------------------------------------------------------------------------------------------------------
13
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
New York City NY GO VRDO 1.30% 6/2/2003LOC 1,600 1,600
New York City NY GO VRDO 1.30% 6/2/2003(4) 2,000 2,000
New York City NY GO VRDO 1.15% 6/9/2003LOC 6,050 6,050
New York City NY GO VRDO 1.22% 6/9/2003LOC 5,700 5,700
New York City NY GO VRDO 1.22% 6/9/2003LOC 16,700 16,700
New York City NY IDA (National Audubon Society) VRDO 1.30% 6/2/2003LOC 14,700 14,700
New York City NY Muni. Water Finance Auth.
Water & Sewer System CP 1.12% 7/8/2003 22,600 22,600
New York City NY Muni. Water Finance Auth.
Water & Sewer System CP 1.05% 8/11/2003 10,000 10,000
New York City NY Muni. Water Finance Auth
Water & Sewer System CP 1.00% 8/14/2003 25,000 25,000
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. TOB VRDO 1.21% 6/9/2003(1)(4) * 12,075 12,075
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. TOB VRDO 1.23% 6/9/2003* 20,500 20,500
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.22% 6/2/2003 4,200 4,200
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.25% 6/2/2003(3) 5,600 5,600
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.30% 6/2/2003(3) 400 400
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.30% 6/2/2003(3) 5,700 5,700
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.30% 6/2/2003(3) 9,695 9,695
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.35% 6/2/2003 2,600 2,600
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.15% 6/9/2003 11,500 11,500
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.20% 6/9/2003 6,000 6,000
New York City NY Transitional Finance Auth. Rev.
TOB VRDO 1.20% 6/9/2003(3)* 6,085 6,085
New York City NY Transitional Finance Auth. Rev.
TOB VRDO 1.27% 6/9/2003* 9,850 9,850
New York City NY Transitional Finance Auth. Rev. VRDO 1.30% 6/2/2003 5,100 5,100
New York City NY Transitional Finance Auth. Rev. VRDO 1.30% 6/2/2003 400 400
New York City NY Transitional Finance Auth. Rev. VRDO 1.30% 6/2/2003 2,000 2,000
New York City NY Transitional Finance Auth. Rev. VRDO 1.30% 6/2/2003 4,100 4,100
New York City NY Transitional Finance Auth. Rev. VRDO 1.35% 6/2/2003 6,000 6,000
New York City NY Transitional Finance Auth. Rev. VRDO 1.35% 6/2/2003 1,300 1,300
New York City NY Transitional Finance Auth. Rev. VRDO 1.14% 6/9/2003 8,000 8,000
New York City NY Transitional Finance Auth. Rev. VRDO 1.14% 6/9/2003 13,350 13,350
New York City NY Transitional Finance Auth. Rev. VRDO 1.14% 6/9/2003 5,000 5,000
New York City NY Transitional Finance Auth. Rev. VRDO 1.15% 6/9/2003 21,500 21,500
New York City NY Transitional Finance Auth. Rev. VRDO 1.20% 6/9/2003 10,000 10,000
New York City NY Transitional Finance Auth. Rev. VRDO 1.20% 6/9/2003 9,500 9,500
New York Dormitory Auth. Rev. (State Univ.) TOB VRDO 1.23% 6/9/2003* 8,995 8,995
New York Metro. Transp. Auth. Transit Fac. CP 1.00% 8/11/2003 15,000 15,000
New York Metro. Transp. Auth. Transit Fac. CP 1.05% 11/10/2003 20,000 20,000
- -----------------------------------------------------------------------------------------------------------
14
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
New York State Dormitory Auth.
(Rochester Institute of Technology) TOB VRDO 1.15% 6/9/2003(2) 10,000 10,000
New York State Dormitory Auth. Rev. (Columbia Univ.) 1.05% 3/5/2004 9,000 9,000
New York State Dormitory Auth. Rev. (Columbia Univ.) CP 1.00% 7/15/2003 11,635 11,635
New York State Dormitory Auth. Rev. (Columbia Univ.) CP 1.00% 7/16/2003 21,005 21,005
New York State Dormitory Auth. Rev. (Cornell Univ.) VRDO 1.15% 6/9/2003 27,500 27,500
New York State Dormitory Auth. Rev. (Cornell Univ.) VRDO 1.15% 6/9/2003 22,235 22,235
New York State Dormitory Auth. Rev.
(Foundling Charities Corp.) VRDO 1.14% 6/9/2003LOC 16,245 16,245
New York State Dormitory Auth. Rev.
(Mental Health Services) TOB VRDO 1.22% 6/9/2003(1)* 16,455 16,455
New York State Dormitory Auth. Rev.
(New York Public Library) VRDO 1.10% 6/9/2003(1) 41,360 41,360
New York State Dormitory Auth. Rev.
(New York Public Library) VRDO 1.10% 6/9/2003(1) 11,000 11,000
New York State Dormitory Auth. Rev.
(Rockefeller Univ.) VRDO 1.15% 6/9/2003 36,800 36,800
New York State Dormitory Auth. Rev.
(Rockefeller Univ.) VRDO 1.15% 6/9/2003 39,000 39,000
New York State Dormitory Auth. Rev. TOB 1.20% 9/4/2003(1)* 6,870 6,870
New York State Dormitory Auth. Rev. TOB VRDO 1.19% 6/9/2003* 8,900 8,900
New York State Dormitory Auth. Rev. TOB VRDO 1.22% 6/9/2003* 4,725 4,725
New York State Environmental Fac. Corp. PCR TOB VRDO 1.22% 6/9/2003(4)* 26,725 26,725
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 1.22% 6/9/2003* 8,250 8,250
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 1.22% 6/9/2003* 2,720 2,720
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) TOB VRDO 1.22% 6/9/2003* 6,500 6,500
New York State Environmental Fac. Corp. Solid Waste
Disposal Rev. (General Electric Co.) CP 1.05% 6/12/2003 21,400 21,400
New York State Environmental Fac. Corp. Solid Waste
Disposal Rev. (General Electric Co.) CP 1.02% 6/13/2003 11,500 11,500
New York State GO PUT 1.50% 8/7/2003LOC 29,100 29,100
New York State GO PUT 1.50% 10/9/2003LOC 24,800 24,800
New York State Housing Finance Agency
Service Contract Rev. VRDO 1.125% 6/9/2003LOC 9,000 9,000
New York State Local Govt. Assistance Corp. VRDO 1.10% 6/9/2003LOC 13,915 13,915
New York State Local Govt. Assistance Corp. VRDO 1.10% 6/9/2003LOC 14,920 14,920
New York State Local Govt. Assistance Corp. VRDO 1.10% 6/9/2003LOC 7,300 7,300
New York State Local Govt. Assistance Corp. VRDO 1.12% 6/9/2003(3) 25,000 25,000
New York State Local Govt. Assistance Corp. VRDO 1.13% 6/9/2003LOC 11,400 11,400
New York State Local Govt. Assistance Corp. VRDO 1.15% 6/9/2003LOC 4,400 4,400
New York State Mortgage Agency Rev. PUT 1.125% 4/2/2004 11,000 11,000
New York State Mortgage Agency Rev. TOB VRDO 1.23% 6/9/2003* 2,795 2,795
New York State Mortgage Agency Rev. TOB VRDO 1.23% 6/9/2003(1)* 11,920 11,920
New York State Mortgage Agency Rev. TOB VRDO 1.23% 6/9/2003(1)* 2,845 2,845
New York State Mortgage Agency Rev. TOB VRDO 1.27% 6/9/2003* 5,995 5,995
New York State Power Auth. Rev. CP 1.05% 7/16/2003 19,500 19,500
New York State Power Auth. Rev. CP 1.05% 8/7/2003 8,000 8,000
New York State Power Auth. Rev. CP 1.08% 8/19/2003 20,000 20,000
New York State Power Auth. Rev. PUT 2.90% 9/2/2003 5,500 5,522
- -----------------------------------------------------------------------------------------------------------
15
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
New York State Power Auth. Rev. VRDO 1.10% 6/9/2003 11,500 11,500
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 1.75% 4/1/2004 25,935 26,078
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) TOB VRDO 1.19% 6/9/2003(3)* 8,215 8,215
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) TOB VRDO 1.24% 6/9/2003(1)* 8,605 8,605
New York State Thruway Auth. Rev. CP 1.05% 7/10/2003 5,000 5,000
New York State Thruway Auth. Rev. CP 1.05% 7/15/2003 15,000 15,000
New York State Thruway Auth. Rev. CP 1.05% 9/5/2003 26,000 26,000
New York State Thruway Auth. Rev. CP 1.05% 9/9/2003 9,500 9,500
New York State Urban Dev. Corp. Rev.
(Correctional & Youth Fac.) TOB VRDO 1.19% 6/9/2003* 19,995 19,995
Oneida County NY IDA Rev. (Hamilton College) VRDO 1.25% 6/9/2003(1) 23,245 23,245
Pelham NY Unified Free School Dist. TAN 2.50% 6/26/2003 1,600 1,601
Port Auth. of New York & New Jersey CP 1.05% 6/12/2003 4,620 4,620
Port Auth. of New York & New Jersey CP 1.00% 8/15/2003 17,520 17,520
Port Auth. of New York & New Jersey Rev. 2.00% 10/15/2003 15,000 15,053
Port Washington NY Unified Free School Dist. BAN 2.50% 7/9/2003 6,000 6,006
Port Washington NY Unified Free School Dist. TAN 2.25% 6/26/2003 10,000 10,005
Roslyn NY Unified Free School Dist. TAN 2.25% 6/26/2003 10,000 10,005
St. Lawrence County NY IDA Environmental
Improvement Rev. (Alcoa Corp.) VRDO 1.23% 6/9/2003LOC 14,100 14,100
Suffolk County NY Water Auth. Rev. VRDO 1.15% 6/9/2003 66,200 66,200
Suffolk County NY Water Auth. Rev. VRDO 1.15% 6/9/2003 6,100 6,100
Syosset NY Central School Dist. BAN 2.00% 2/13/2004 6,000 6,037
Syosset NY Central School Dist. TAN 2.50% 6/26/2003 11,400 11,408
Tompkins County NY IDA Civic Fac. (Cornell Univ.) VRDO 1.15% 6/9/2003 12,300 12,300
Tompkins County NY IDA Civic Fac. (Cornell Univ.) VRDO 1.15% 6/9/2003 8,390 8,390
Triborough Bridge & Tunnel Auth.
New York Rev. TOB VRDO 1.21% 6/9/2003* 16,260 16,260
Triborough Bridge & Tunnel Auth.
New York Rev. TOB VRDO 1.22% 6/9/2003(1)* 7,200 7,200
Triborough Bridge & Tunnel Auth.
New York Rev. TOB VRDO 1.24% 6/9/2003(2)* 16,700 16,700
Triborough Bridge & Tunnel Auth.
New York Rev. TOB VRDO 1.24% 6/9/2003* 9,285 9,285
Triborough Bridge & Tunnel Auth. New York Rev. VRDO 1.15% 6/9/2003(4) 15,400 15,400
Triborough Bridge & Tunnel Auth. New York Rev. VRDO 1.15% 6/9/2003(4) 25,200 25,200
Triborough Bridge & Tunnel Auth. New York Rev. VRDO 1.18% 6/9/2003 14,400 14,400
Troy County NY IDA Civic Fac. Rev.
(Rensselaer Polytechnic Institute) VRDO 1.25% 6/9/2003 11,250 11,250
United Nations Dev. Corp. New York Rev. 6.25% 7/1/2003(Prere.) 3,305 3,384
OUTSIDE NEW YORK:
Puerto Rico Govt. Dev. Bank VRDO 1.05% 6/9/2003(1) 200 200
Puerto Rico Highway & Transp. Auth. Rev. VRDO 1.10% 6/9/2003(2) 25,600 25,600
Puerto Rico TRAN 2.50% 7/30/2003 10,000 10,016
- -----------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $1,678,851) 1,678,851
- -----------------------------------------------------------------------------------------------------------
16
- -----------------------------------------------------------------------------------------------------------
MARKET
VALUE*
(000)
- -----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.6%)
- -----------------------------------------------------------------------------------------------------------
Other Assets--Note B 15,409
Liabilities (5,958)
-------
9,451
-------
- -----------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
- -----------------------------------------------------------------------------------------------------------
Applicable to 1,688,260,136 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $1,688,302
===========================================================================================================
NET ASSET VALUE PER SHARE $1.00
===========================================================================================================
*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 May 31, 2003, the aggregate value
of these securities was $287,854,000, representing 17.1% of net assets.
For key to abbreviations and other references, see page 25.
- -----------------------------------------------------------------------------------------------------------
AT MAY 31, 2003, NET ASSETS CONSISTED OF:
- -----------------------------------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
- -----------------------------------------------------------------------------------------------------------
Paid-in-Capital $1,688,279 $1.00
Undistributed New Investment Income --- ---
Accumulated New Realized Gains 23 ---
Unrealized Appreciation --- ---
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $1,688,279 $1.00
===========================================================================================================
17
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (98.9%)
- -----------------------------------------------------------------------------------------------------------
Albany County NY GO 5.00% 10/1/2012(3) 4,400 5,118
Albany NY GO 7.00% 1/15/2005(2) 20 20
Battery Park City NY Auth. Rev. 5.50% 11/1/2026(2) 11,750 13,147
Broome County NY Public Safety Fac. Project COP 5.25% 4/1/2015(1) 335 351
Broome County NY Public Safety Fac. Project COP 5.25% 4/1/2015(1)(ETM) 2,665 2,838
Buffalo & Erie Counties NY Toll Bridge Auth. Rev. 6.00% 1/1/2015(1) 4,500 4,830
Buffalo NY GO 5.125% 2/1/2012(2) 1,870 2,123
Buffalo NY GO 5.125% 2/1/2013(2) 2,945 3,335
Buffalo NY Sewer Auth. System Rev. 5.25% 7/1/2008(3) 3,500 3,512
Erie County NY Water Auth. Rev. 6.00% 12/1/2008(2)(ETM) 1,600 1,847
Hempstead NY GO 5.50% 8/1/2005(3)(Prere.) 190 212
Hempstead NY GO 5.625% 2/1/2006(3)(Prere.) 270 305
Hempstead NY GO 5.625% 2/1/2006(3)(Prere.) 210 238
Hempstead NY GO 5.50% 8/1/2011(3) 2,260 2,485
Hempstead NY GO 5.625% 2/1/2012(3) 1,220 1,358
Hempstead NY GO 5.625% 2/1/2013(3) 960 1,067
Huntington NY GO 6.70% 2/1/2011(3) 310 388
Huntington NY GO 5.50% 4/1/2013(3) 3,400 3,513
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2011(4) 16,690 12,856
Long Island NY Power Auth. Electric System Rev. 5.25% 6/1/2013 15,690 17,521
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2014(4) 5,000 3,348
Long Island NY Power Auth. Electric System Rev. 5.00% 12/1/2018(4) 6,000 6,507
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2019(4) 2,460 1,267
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2021(4) 13,355 6,133
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2023(4) 25,500 10,388
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2024(4) 16,880 6,455
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2027(4) 23,905 7,765
Long Island NY Power Auth. Electric System Rev. VRDO 1.30% 6/2/2003LOC 25,500 25,500
Metro. New York Transp. Auth. Rev. (Commuter Fac.) 5.125% 7/1/2009(3)(Prere.) 3,000 3,476
Metro. New York Transp. Auth. Rev. (Commuter Fac.) 5.30% 7/1/2009(3)(Prere.) 17,475 20,420
Metro. New York Transp. Auth. Rev. (Commuter Fac.) 5.00% 7/1/2013(2)(Prere.) 5,500 6,415
Metro. New York Transp. Auth. Rev. (Commuter Fac.) 5.50% 7/1/2013(2)(Prere.) 11,585 14,011
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 5.25% 10/1/2010(1)(Prere.) 34,060 40,077
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 5.25% 10/1/2010(1)(Prere.) 7,900 9,296
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 6.00% 4/1/2020(1)(ETM) 32,500 40,954
Metro. New York Transp. Auth. Rev. (Transit Rev.) 7.00% 7/1/2009(2)(ETM) 9,050 10,982
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.00% 1/1/2012(2)(Prere.) 5,000 5,772
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2014(2) 8,000 9,770
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2016(1) 4,000 4,678
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2016(2) 28,075 32,834
Metro. New York Transp. Auth. Rev.(Transit Rev.) 5.50% 11/15/2017(2)* 35,000 40,625
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2017(1) 5,000 5,804
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2019(1) 6,000 6,876
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2020(1) 7,000 7,977
Metro. New York Transp. Auth. Rev. VRDO 1.15% 6/9/2003(4) 800 800
Nassau County NY Combined Sewer Dist. GO 6.20% 5/15/2007(1) 840 868
Nassau County NY Combined Sewer Dist. GO 6.20% 5/15/2008(1) 835 863
Nassau County NY Combined Sewer Dist. GO 6.25% 5/15/2009(1) 825 852
- -----------------------------------------------------------------------------------------------------------
18
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
Nassau County NY Combined Sewer Dist. GO 5.00% 5/1/2010(3) 2,875 3,278
Nassau County NY Combined Sewer Dist. GO 6.25% 5/15/2010(1) 820 847
Nassau County NY Combined Sewer Dist. GO 5.00% 5/1/2011(3) 1,770 2,018
Nassau County NY Combined Sewer Dist. GO 5.875% 8/1/2012(3) 825 847
Nassau County NY GO 5.70% 8/1/2004(3)(Prere.) 2,000 2,167
Nassau County NY GO 5.50% 7/15/2007(1) 1,270 1,302
Nassau County NY GO 5.50% 7/15/2008(1) 1,300 1,340
Nassau County NY GO 5.50% 7/15/2009(1) 1,325 1,372
Nassau County NY GO 5.50% 7/15/2010(1) 1,345 1,393
Nassau County NY GO 5.75% 2/1/2011(1) 1,100 1,130
Nassau County NY GO 5.25% 6/1/2011(2) 3,670 4,184
Nassau County NY GO 5.50% 7/15/2011(1) 1,370 1,419
Nassau County NY GO 5.25% 6/1/2012(2) 4,670 5,316
Nassau County NY GO 5.25% 6/1/2013(2) 6,905 7,855
Nassau County NY GO 5.125% 3/1/2014(2) 5,000 5,525
Nassau County NY GO 5.25% 6/1/2014(2) 6,585 7,456
Nassau County NY Interim Finance Auth. VRDO 1.10% 6/9/2003(4) 21,500 21,500
Nassau County NY Interim Finance Auth. VRDO 1.15% 6/9/2003(4) 11,825 11,825
New York City NY Cultural Resources Rev.
(American Museum of Natural History) 5.70% 4/1/2016(1) 12,730 14,387
New York City NY Cultural Resources Rev.
(American Museum of Natural History) 5.60% 4/1/2018(1) 2,635 2,964
New York City NY Cultural Resources Rev.
(American Museum of Natural History) 5.65% 4/1/2022(1) 5,000 5,616
New York City NY Cultural Resources Rev.
(Museum of Modern Art) 5.40% 1/1/2006(2)(ETM) 85 94
New York City NY Cultural Resources Rev.
(Museum of Modern Art) 5.50% 1/1/2007(2)(ETM) 35 40
New York City NY Cultural Resources Rev.
(Museum of Modern Art) 5.50% 1/1/2016(2) 2,000 2,244
New York City NY GO 5.75% 8/1/2011(1) 15,750 18,583
New York City NY GO 5.125% 8/1/2013(4) 19,025 21,442
New York City NY GO 5.375% 8/1/2013(3) 8,295 9,465
New York City NY GO 5.20% 8/1/2014(4) 5,000 5,620
New York City NY GO 5.25% 3/15/2016(2) 5,000 5,608
New York City NY GO 5.75% 3/15/2027(4) 5,000 5,623
New York City NY GO VRDO 1.30% 6/2/2003(1) 2,605 2,605
New York City NY GO VRDO 1.30% 6/2/2003LOC 3,300 3,300
New York City NY GO VRDO 1.30% 6/2/2003(1) 3,000 3,000
New York City NY GO VRDO 1.30% 6/2/2003(4) 6,400 6,400
New York City NY GO VRDO 1.15% 6/9/2003LOC 1,350 1,350
New York City NY GO VRDO 1.22% 6/9/2003LOC 2,800 2,800
New York City NY IDA (USTA National Tennis Center) 6.375% 11/15/2014(4) 2,000 2,173
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.875% 6/15/2012(2) 18,500 22,490
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.35% 6/15/2013(1) 5,300 5,519
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.875% 6/15/2013(2) 20,000 24,515
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 0.00% 6/15/2017 10,000 5,695
- -----------------------------------------------------------------------------------------------------------
19
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.375% 6/15/2017 25,015 28,478
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 0.00% 6/15/2018 10,000 5,399
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.375% 6/15/2018 25,095 28,382
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 0.00% 6/15/2021 4,490 2,048
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.50% 6/15/2027(1) 23,955 26,809
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.75% 6/15/2029(1) 15,000 16,992
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.75% 6/15/2031(3) 30,650 35,689
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.25% 6/2/2003 600 600
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.25% 6/2/2003(3) 2,600 2,600
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.30% 6/2/2003(3) 3,250 3,250
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.35% 6/2/2003 100 100
New York City NY Transitional Finance Auth. Rev. 5.50% 5/1/2009(Prere.) 1,325 1,569
New York City NY Transitional Finance Auth. Rev. 5.75% 8/15/2009(Prere.) 5,000 6,029
New York City NY Transitional Finance Auth. Rev. 5.75% 5/15/2010(Prere.) 930 1,124
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2011(Prere.) 3,995 4,766
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2011(Prere.) 2,265 2,702
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2011(Prere.) 1,150 1,372
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2011(Prere.) 2,955 3,526
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2012 2,805 3,266
New York City NY Transitional Finance Auth. Rev. 5.25% 5/1/2013 12,270 14,122
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2014 9,735 11,258
New York City NY Transitional Finance Auth. Rev. 5.25% 5/1/2014 17,720 20,306
New York City NY Transitional Finance Auth. Rev. 5.375% 2/1/2015 7,310 8,318
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2015 3,850 4,421
New York City NY Transitional Finance Auth. Rev. 5.375% 2/15/2015 9,395 10,760
New York City NY Transitional Finance Auth. Rev. 5.375% 2/1/2016 8,415 9,514
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2016 11,045 12,612
New York City NY Transitional Finance Auth. Rev. 5.50% 2/15/2016 2,735 3,145
New York City NY Transitional Finance Auth. Rev. 5.75% 11/15/2020 9,070 10,539
New York City NY Transitional Finance Auth. Rev. 5.50% 5/1/2025 1,675 1,860
New York City NY Transitional Finance Auth. Rev. VRDO 1.30% 6/2/2003 7,150 7,150
New York City NY Transitional Finance Auth. Rev. VRDO 1.30% 6/2/2003 2,200 2,200
New York City NY Transitional Finance Auth. Rev. VRDO 1.30% 6/2/2003 200 200
New York City NY Transitional Finance Auth. Rev. VRDO 1.35% 6/2/2003 600 600
New York State Dormitory Auth. Rev. (Barnard College) 5.25% 7/1/2026(2) 4,370 4,732
New York State Dormitory Auth. Rev. (Catholic Health) 5.50% 7/1/2022(1) 10,000 10,876
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2011(3) 5,950 7,141
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2015(3) 31,620 36,804
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2015(3) 2,215 2,578
New York State Dormitory Auth. Rev. (City Univ.) 5.50% 7/1/2016(2) 16,000 17,794
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2016(3) 7,255 8,444
- -----------------------------------------------------------------------------------------------------------
20
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2016(3) 4,475 5,209
New York State Dormitory Auth. Rev. (Columbia Univ.) 5.125% 7/1/2019 5,100 5,716
New York State Dormitory Auth. Rev. (Cornell Univ.) VRDO 1.30% 6/2/2003 800 800
New York State Dormitory Auth. Rev. (Court Fac.) 5.75% 5/15/2023(2) 21,370 24,617
New York State Dormitory Auth. Rev.
(Department of Health) 5.50% 7/1/2025(1) 3,870 4,287
New York State Dormitory Auth. Rev. (Fordham Univ.) 5.50% 7/1/2004(3)(Prere.) 10,150 10,737
New York State Dormitory Auth. Rev. (Fordham Univ.) 5.75% 7/1/2004(3)(Prere.) 1,500 1,593
New York State Dormitory Auth. Rev. (Fordham Univ.) 7.20% 7/1/2015(2) 7107 13
New York State Dormitory Auth. Rev.
(Lenox Hill Hosp. Obligation Group) 5.375% 7/1/2020 2,400 2,542
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.875% 8/15/2013(4) 2,475 2,914
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.875% 8/15/2014(4) 2,625 3,057
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.875% 8/15/2015(4) 2,785 3,228
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.375% 2/15/2026(1) 7,500 8,157
New York State Dormitory Auth. Rev.
(Montefiore Medical Center) 5.25% 2/1/2015(2) 42,750 46,117
New York State Dormitory Auth. Rev.
(Mt. Sinai School of Medicine) 6.75% 7/1/2015(1) 7,245 7,277
New York State Dormitory Auth. Rev.
(New School for Social Research) 5.625% 7/1/2016(1) 2,260 2,582
New York State Dormitory Auth. Rev. (New York Univ.) 5.75% 7/1/2016(1) 3,500 4,325
New York State Dormitory Auth. Rev. (New York Univ.) 5.50% 7/1/2031(2) 8,910 10,726
New York State Dormitory Auth. Rev. (New York Univ.) 5.50% 7/1/2040(2) 20,330 24,814
New York State Dormitory Auth. Rev.
(North Shore Univ. Hosp.) 5.20% 11/1/2017(1) 30,170 32,667
New York State Dormitory Auth. Rev. (Pace) 5.625% 7/1/2017(1) 11,185 12,779
New York State Dormitory Auth. Rev. (Queens Hosp.) 5.45% 8/15/2019(2) 5,010 5,508
New York State Dormitory Auth. Rev.
(Rochester Institute of Technology) 5.30% 7/1/2017(1) 6,275 7,033
New York State Dormitory Auth. Rev.
(Rochester Institute of Technology) 5.25% 7/1/2022(1) 3,000 3,290
New York State Dormitory Auth. Rev. (Rockefeller Univ.) 5.00% 7/1/2018 2,805 3,050
New York State Dormitory Auth. Rev.
(Sloan-Kettering Cancer Center) 5.75% 7/1/2019(1) 15,900 19,476
New York State Dormitory Auth. Rev.
(Sloan-Kettering Cancer Center) 5.75% 7/1/2020(1) 5,500 6,714
New York State Dormitory Auth. Rev.
(Sloan-Kettering Cancer Center) 5.50% 7/1/2023(1) 14,000 16,495
New York State Dormitory Auth. Rev. (St. John's Univ.) 5.25% 7/1/2020(1) 15,170 16,804
New York State Dormitory Auth. Rev. (St. John's Univ.) 5.70% 7/1/2026(1) 14,370 16,057
New York State Dormitory Auth. Rev. (St. Joseph's Hosp.) 5.25% 7/1/2018(1) 6,700 7,195
New York State Dormitory Auth. Rev.
(St. Vincent Hosp. Medical Center) 5.80% 8/1/2025(2) 4,250 4,631
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 7/1/2009(2) 1,590 1,908
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2012(1) 16,160 19,315
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2013(1) 27,285 32,518
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2014(1) 10,660 12,667
- -----------------------------------------------------------------------------------------------------------
21
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2015(1) 12,500 14,811
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2016(1) 5,000 5,924
New York State Dormitory Auth. Rev. (State Univ.) 5.75% 5/15/2017(4) 3,750 4,642
New York State Dormitory Auth. Rev. (State Univ.) 5.375% 7/1/2021 5,315 5,876
New York State Dormitory Auth. Rev.
(The New York & Presbyterian Hosp.) 5.50% 2/1/2010(2) 6,330 7,357
New York State Dormitory Auth. Rev.
(Univ. of Rochester) 5.00% 7/1/2017(1) 2,000 2,189
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.25% 7/1/2012(2) 6,170 7,085
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.00% 7/1/2015(2) 3,000 3,322
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.00% 7/1/2016(2) 1,250 1,376
New York State Dormitory Auth. Rev.
(Vassar Brothers Hosp.) 5.25% 7/1/2017(4) 8,025 8,698
New York State Dormitory Auth. Rev.
(Vassar Brothers Hosp.) 5.375% 7/1/2025(4) 7,000 7,443
New York State Energy Research & Dev. Auth. PCR
(NY Electric & Gas) VRDO 1.22% 6/2/2003LOC 6,830 6,830
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.375% 6/15/2015 7,650 8,902
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2016 3,095 3,537
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.375% 6/15/2016 6,000 6,931
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2018 10,000 11,288
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2019 36,610 41,056
New York State GO 5.75% 5/15/2011(4) 4,540 5,338
New York State GO 5.875% 5/15/2012(4) 4,670 5,526
New York State Local Govt. Assistance Corp. 5.25% 4/1/2015(2) 8,000 8,899
New York State Local Govt. Assistance Corp. 5.50% 4/1/2017 12,905 15,402
New York State Local Govt. Assistance Corp. 5.375% 4/1/2019(1) 3,000 3,351
New York State Local Govt. Assistance Corp. VRDO 1.10% 6/9/2003LOC 8,820 8,820
New York State Local Govt. Assistance Corp. VRDO 1.10% 6/9/2003LOC 570 570
New York State Local Govt. Assistance Corp. VRDO 1.13% 6/9/2003LOC 2,000 2,000
New York State Local Govt. Assistance Corp. VRDO 1.15% 6/9/2003LOC 22,735 22,735
New York State Medical Care Fac. Finance Agency Rev. 5.25% 2/15/2019(3) 16,230 16,928
New York State Medical Care Fac. Finance Agency Rev.
(Mental Health Services) 6.00% 8/15/2015(1) 150 163
New York State Power Auth. Rev. VRDO 1.10% 6/9/2003 4,500 4,500
New York State Thruway Auth. Rev. 5.25% 1/1/2014 5,560 6,224
New York State Thruway Auth. Rev.
(Highway & Bridge Transit Fund) 5.25% 4/1/2014(1) 7,500 8,517
New York State Thruway Auth. Rev.
(Highway & Bridge Transit Fund) 5.50% 4/1/2014(3) 2,500 2,919
New York State Thruway Auth. Rev.
(Highway & Bridge Transit Fund) 5.50% 4/1/2015(3) 2,000 2,317
New York State Thruway Auth. Rev.
(Highway & Bridge Transit Fund) 5.50% 4/1/2016(3) 3,000 3,455
- -----------------------------------------------------------------------------------------------------------
22
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.75% 4/1/2010(3)(Prere.) 5,575 6,719
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.75% 4/1/2013(3) 5,870 6,889
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.50% 4/1/2014(2) 32,875 38,709
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.75% 4/1/2014(3) 3,000 3,511
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.75% 4/1/2015(3) 2,500 2,917
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.00% 4/1/2016(4) 5,165 5,679
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.75% 4/1/2016(3) 2,080 2,427
New York State Thruway Auth. Rev. (Service Contract) 5.75% 4/1/2009(1)(Prere.) 4,000 4,784
New York State Thruway Auth. Rev. (Service Contract) 5.25% 4/1/2015 8,075 8,740
New York State Urban Dev. Corp. Rev.
(Community Enhancement Fac.) 5.125% 4/1/2015(2) 5,500 6,145
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 6.00% 1/1/2009(2)(Prere.) 4,110 4,941
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 6.00% 1/1/2009(2)(Prere.) 5,000 6,011
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 5.75% 1/1/2011(4)(Prere.) 6,380 7,658
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 6.00% 1/1/2011(2) 2,500 2,941
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 6.00% 1/1/2012(2) 3,000 3,529
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 5.50% 4/1/2016(1) 13,350 14,751
Niagara County NY IDA Solid Waste Disposal Rev. PUT 5.55% 11/15/2013 12,500 13,452
Niagara Falls NY Bridge Comm. Rev. 5.25% 10/1/2015(3) 5,000 5,931
Niagara Falls NY Bridge Comm. Rev. 6.25% 10/1/2020(3) 8,685 11,277
Niagara Falls NY Bridge Comm. Rev. 6.25% 10/1/2021(3) 9,230 11,952
North Hempstead NY GO 6.40% 4/1/2010(3) 1,500 1,839
North Hempstead NY GO 6.40% 4/1/2011(3) 2,075 2,567
North Hempstead NY Solid Waste Auth. 5.00% 2/1/2012(1) 3,370 3,512
Oneida County NY IDA Rev. (Hamilton College) VRDO 1.25% 6/9/2003(1) 2,700 2,700
Onondaga County NY Public Improvements 5.875% 2/15/2008 1,250 1,467
Onondaga County NY Public Improvements 5.875% 2/15/2008 1,225 1,431
Port Auth. of New York & New Jersey Rev. 5.25% 9/15/2012(3) 14,410 15,811
Port Auth. of New York & New Jersey Rev. 5.50% 12/15/2016(2) 4,190 4,823
Port Auth. of New York & New Jersey Rev. 5.50% 12/15/2017(2) 4,600 5,257
Port Auth. of New York & New Jersey Rev. 5.50% 12/15/2018(2) 4,620 5,272
Suffolk County NY Water Auth. Rev. 5.25% 6/1/2010(2)(ETM) 3,790 4,435
Suffolk County NY Water Auth. Rev. 5.25% 6/1/2011(2)(ETM) 2,380 2,796
Suffolk County NY Water Auth. Rev. 5.25% 6/1/2012(2)(ETM) 4,290 5,070
Suffolk County NY Water Auth. Rev. 5.75% 6/1/2013(2)(ETM) 7,340 7,510
Suffolk County NY Water Auth. Rev. 5.25% 6/1/2017(2)(ETM) 1,695 2,009
Suffolk County NY Water Auth. Rev. VRDO 1.15% 6/9/2003 1,000 1,000
Triborough Bridge & Tunnel Auth. New York Rev. 6.75% 1/1/2009(2)(ETM) 3,000 3,588
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 1/1/2014 3,000 3,432
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 1/1/2015 2,930 3,326
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 1/1/2016 2,500 2,816
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2017 16,770 18,957
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 1/1/2018 2,330 2,594
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2018 30,285 34,002
- -----------------------------------------------------------------------------------------------------------
23
- -----------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2019 43,025 47,978
Triborough Bridge & Tunnel Auth. New York Rev. VRDO 1.15% 6/9/2003(4) 3,500 3,500
Outside New York:
Puerto Rico Electric Power Auth. Rev. 5.25% 7/1/2015(1) 5,000 5,696
Puerto Rico Electric Power Auth. Rev. 5.25% 7/1/2015(1) 7,000 8,282
Puerto Rico Electric Power Auth. Rev. 5.375% 7/1/2016(1) 16,345 19,096
Puerto Rico Electric Power Auth. Rev. 5.375% 7/1/2018(1) 6,250 7,201
Puerto Rico Electric Power Auth. Rev. 5.375% 7/1/2019(1) 6,500 7,434
Puerto Rico GO 5.50% 7/1/2013(3) 6,000 7,233
Puerto Rico GO 5.50% 7/1/2014(3) 2,500 3,017
Puerto Rico GO 5.00% 7/1/2017(1) 11,475 12,740
Puerto Rico GO 5.00% 7/1/2018(1) 2,650 2,929
Puerto Rico GO 5.50% 7/1/2020(3) 6,305 7,590
Puerto Rico GO 5.50% 7/1/2021(1) 16,505 19,765
Puerto Rico Govt. Dev. Bank VRDO 1.05% 6/9/2003(1) 25,530 25,530
Puerto Rico Highway & Transp. Auth. Rev. VRDO 1.10% 6/9/2003(2) 8,100 8,100
Puerto Rico Muni. Finance Agency 5.75% 8/1/2011(4) 8,060 9,486
Puerto Rico Muni. Finance Agency 5.75% 8/1/2011(4) 7,750 9,121
Puerto Rico Muni. Finance Agency 5.875% 8/1/2014(4) 6,480 7,652
Puerto Rico Muni. Finance Agency 6.00% 8/1/2016(4) 2,645 3,142
Puerto Rico Muni. Finance Agency 5.25% 8/1/2017(4) 7,000 7,971
Puerto Rico Public Finance Corp. 6.00% 8/1/2026 10,000 12,046
- -----------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $2,020,990) 2,233,294
- -----------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.1%)
- -----------------------------------------------------------------------------------------------------------
Other Assets--Note B 29,518
Liabilities (4,798)
-------
24,720
-------
- -----------------------------------------------------------------------------------------------------------
NET ASSETS (100%) $2,258,014
===========================================================================================================
*See Note A in Notes to Financial Statements.
*Securities with a value of $6,442,000 have been segregated as initial margin
for open futures contracts.
For key to abbreviations and other references, see page 25.
24
- --------------------------------------------------------------------------------
AMOUNT
(000)
- --------------------------------------------------------------------------------
AT MAY 31, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
Paid-in Capital $2,048,468
Undistributed Net Investment Income --
Accumulated Net Realized Losses (1,205)
Unrealized Appreciation (Depreciation)
Investment Securities 212,304
Futures Contracts (1,553)
- --------------------------------------------------------------------------------
NET ASSETS $2,258,014
================================================================================
Investor Shares--Net Assets
Applicable to 118,342,410 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $1,401,932
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE--INVESTOR SHARES $11.85
================================================================================
Admiral Shares--Net Assets
Applicable to 72,265,084 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $856,082
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE--ADMIRAL SHARES $11.85
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
KEY TO ABBREVIATIONS
BAN--Bond Anticipation Note.
COP--Certificate of Participation.
CP--Commercial Paper.
GO--General Obligation Bond.
IDA--Industrial Development Authority Bond.
PCR--Pollution Control Revenue Bond.
PUT--Put Option Obligation.
TAN--Tax Anticipation Note.
TOB--Tender Option Bond.
TRAN--Tax Revenue Anticipation Note.
VRDO--Variable Rate Demand Obligation.
(ETM)--Escrowed to Maturity.
(Prere.)--Prerefunded.
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).
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.
25
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.
- --------------------------------------------------------------------------------
NEW YORK NEW YORK
TAX-EXEMPT LONG-TERM
MONEY MARKET TAX-EXEMPT
FUND FUND
- --------------------------------------------------------------------------------
SIX MONTHS ENDED MAY 31, 2003
----------------------------------------
(000) (000)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Interest $ 9,528 $ 48,109
- --------------------------------------------------------------------------------
Total Income 9,528 48,109
- --------------------------------------------------------------------------------
EXPENSES
The Vanguard Group--Note B
Investment Advisory Services 112 149
Management and Administrative
Investor Shares 1,055 1,044
Admiral Shares -- 394
Marketing and Distribution
Investor Shares 157 100
Admiral Shares -- 49
Custodian Fees 7 8
Shareholders' Reports and Proxies
Investor Shares 8 14
Admiral Shares -- 1
Trustees' Fees and Expenses 1 1
- --------------------------------------------------------------------------------
Total Expenses 1,340 1,760
Expenses Paid Indirectly--Note C -- (168)
- --------------------------------------------------------------------------------
Net Expenses 1,340 1,592
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 8,188 46,517
- --------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS)
Investment Securities Sold 24 4,315
Futures Contracts -- (5,183)
- --------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS) 24 (868)
- --------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
Investment Securities -- 114,239
Futures Contracts -- (1,269)
- --------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) -- 112,970
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $8,212 $158,619
================================================================================
26
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.
- -----------------------------------------------------------------------------------------------------------
NEW YORK TAX-EXEMPT NEW YORK LONG-TERM
MONEY MARKET FUND TAX-EXEMPT FUND
--------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
MAY 31, 2003 NOV. 30, 2002 MAY 31, 2003 NOV. 30, 2002
(000) (000) (000) (000)
- -----------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 8,188 $ 19,309 $ 46,517 $ 92,697
Realized Net Gain (Loss) 24 67 (868) 24,118
Change in Unrealized
Appreciation (Depreciation) -- -- 112,970 20,178
- -----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 8,212 19,376 158,619 136,993
- -----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (8,188) (19,309) (28,781) (59,863)
Admiral Shares -- -- (17,736) (32,834)
Realized Capital Gain*
Investor Shares -- -- (14,716) (7,382)
Admiral Shares -- -- (8,920) (3,566)
- -----------------------------------------------------------------------------------------------------------
Total Distributions (8,188) (19,309) (70,153) (103,645)
- -----------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--NOTE F
Investor Shares 60,864 268,821 7,448 (14,377)
Admiral Shares -- -- 11,211 173,497
- -----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions 60,864 268,821 18,659 159,120
- -----------------------------------------------------------------------------------------------------------
Total Increase (Decrease) 60,888 268,888 107,125 192,468
- -----------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 1,627,414 1,358,526 2,150,889 1,958,421
- -----------------------------------------------------------------------------------------------------------
End of Period $1,688,302 $1,627,414 $2,258,014 $2,150,889
===========================================================================================================
*Includes fiscal 2003 and 2002 short-term gain distributions by the New York
Long-Term Tax-Exempt Fund totaling $1,207,000 and $1,164,000, respectively.
Short-term gain distributions are treated as ordinary income dividends for tax
purposes.
27
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.
NEW YORK TAX-EXEMPT MONEY MARKET FUND
- ------------------------------------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
SIX MONTHS ENDED -------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD MAY 31,2003 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 .005 .013 .028 .038 .030 .032
Net Realized and Unrealized Gain (Loss) on Investments -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------
Total from Investment Operations .005 .013 .028 .038 .030 .032
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.005) (.013) (.028) (.038) (.030) (.032)
Distributions from Realized Capital Gains -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------
Total Distributions (.005) (.013) (.028) (.038) (.030) (.032)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
============================================================================================================
TOTAL RETURN 0.49% 1.32% 2.79% 3.87% 3.01% 3.27%
============================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,688 $1,627 $1,359 $1,154 $798 $483
Ratio of Total Expenses to Average Net Assets 0.16%* 0.17% 0.18% 0.14% 0.17% 0.19%
Ratio of Net Investment Income to Average Net Assets 0.99%* 1.31% 2.72% 3.81% 2.99% 3.19%
============================================================================================================
*Annualized.
28
NEW YORK LONG-TERM TAX-EXEMPT FUND INVESTOR SHARES
- ------------------------------------------------------------------------------------------------------------
YEAR ENDED NOVEMBER 30,
SIX MONTHS ENDED -------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD MAY 31,2003 2002 2001 2000 1999 1998
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.38 $11.20 $10.83 $10.42 $11.30 $11.05
- ------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .244 .503 .525 .556 .547 .564
Net Realized and Unrealized Gain (Loss) on Investments .595 .243 .370 .410 (.789) .267
- ------------------------------------------------------------------------------------------------------------
Total from Investment Operations .839 .746 .895 .966 (.242) .831
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.244) (.503) (.525) (.556) (.547) (.564)
Distributions from Realized Capital Gains (.125) (.063) -- -- (.091) (.017)
- ------------------------------------------------------------------------------------------------------------
Total Distributions (.369) (.566) (.525) (.556) (.638) (.581)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.85 $11.38 $11.20 $10.83 $10.42 $11.30
============================================================================================================
TOTAL RETURN 7.50% 6.84% 8.37% 9.56% -2.25% 7.69%
============================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,402 $1,340 $1,333 $1,664 $1,530 $1,406
Ratio of Total Expenses to Average Net Assets 0.19%* 0.18% 0.20% 0.20% 0.20% 0.21%
Ratio of Net Investment Income to Average Net Assets 4.24% 4.46% 4.71% 5.28% 5.02% 5.03%
Portfolio Turnover Rate 5%* 16% 12% 21% 5% 17%
============================================================================================================
*Annualized.
NEW YORK LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES
- ------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED MAY 14* TO
MAY 31, NOV. 30, NOV. 30,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.38 $11.20 $11.05
- ------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .247 .50 .284
Net Realized and Unrealized Gain (Loss) on Investments .595 .243 .150
- ------------------------------------------------------------------------------------------------------------
Total from Investment Operations .842 .752 .434
- ------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.247) (.509) (.284)
Distributions from Realized Capital Gains (.125) (.063) --
- ------------------------------------------------------------------------------------------------------------
Total Distributions (.372) (.572) (.284)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.85 $11.38 $11.20
============================================================================================================
TOTAL RETURN 7.53% 6.89% 3.94%
============================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $856 $811 $626
Ratio of Total Expenses to Average Net Assets 0.12%** 0.13% 0.15%**
Ratio of Net Investment Income to Average Net Assets 4.30%** 4.51% 4.58%**
Portfolio Turnover Rate 5%** 16% 12%
============================================================================================================
*Inception.
**Annualized.
29
NOTES TO FINANCIAL STATEMENTS
Vanguard New York Tax-Exempt Funds comprise the New York Tax-Exempt Money Market
Fund and New York Long-Term Tax-Exempt Fund, 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 municipal issuers whose ability
to meet their obligations may be affected by economic and political developments
in the state of New York.
The Long-Term Tax-Exempt Fund offers two classes of shares, Investor Shares
and Admiral Shares. Investor Shares are available to any investor who meets the
fund's minimum purchase requirements. Admiral Shares are designed for investors
who meet certain administrative, 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. Long-Term
Tax-Exempt Fund: 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 the securities'
primary markets, are valued by methods deemed by the board of trustees to
represent fair value.
2. FUTURES CONTRACTS: The Long-Term Tax-Exempt 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 fund
may purchase or sell futures contracts instead of bonds to take advantage of
pricing differentials between the futures contracts and the underlying bonds.
The fund 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 fund 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.
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
30
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 May 31, 2003, the funds had contributed
capital to Vanguard (included in Other Assets) of:
- --------------------------------------------------------------------------------
CAPITAL CONTRIBUTION PERCENTAGE PERCENTAGE OF
TO VANGUARD OF FUND VANGUARD'S
NEW YORK TAX-EXEMPT FUND (000) NET ASSETS CAPITALIZATION
- --------------------------------------------------------------------------------
Money Market $302 0.02% 0.30%
Long-Term 400 0.02 0.40
- --------------------------------------------------------------------------------
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 May 31, 2003, these arrangements
reduced the Long-Term Tax-Exempt Fund's management and administrative expenses
by $167,000 and custodian fees by $1,000. The total expense reduction
represented an effective annual rate of 0.02% of the fund's average net assets.
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.
The Long-Term Tax-Exempt Fund had realized losses totaling $595,000 through
November 30, 2002, which are deferred for tax purposes and reduce the amount of
unrealized appreciation on investment securities for tax purposes.
At May 31, 2003, net unrealized appreciation of Long-Term Tax-Exempt Fund
investment securities for tax purposes was $211,709,000, consisting entirely of
unrealized gains on securities that had risen in value since their purchase.
31
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
At May 31, 2003, the aggregate settlement value of open futures contracts
expiring through September 2003 and the related unrealized depreciation were:
- --------------------------------------------------------------------------------
(000)
NUMBER OF AGGREGATE UNREALIZED
LONG (SHORT) SETTLEMENT APPRECIATION
NEW YORK TAX-EXEMPT FUND/ CONTRACTS VALUE (DEPRECIATION)
FUTURES CONTRACTS
- --------------------------------------------------------------------------------
Long-Term/10-Year U.S. Treasury Note (590) $70,062 $(1,553)
- --------------------------------------------------------------------------------
Unrealized depreciation on open futures contracts is required to be treated as
realized loss for tax purposes.
E. During the six months ended May 31, 2003, the Long-Term Tax-Exempt Fund
purchased $47,767,000 of investment securities and sold $79,137,000 of
investment securities, other than temporary cash investments.
F. Capital share transactions for each class of shares were:
- --------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 2003 NOVEMBER 30, 2002
---------------- -------------------
AMOUNT SHARES AMOUNT SHARES
NEW YORK TAX-EXEMPT FUND (000) (000) (000) (000)
- --------------------------------------------------------------------------------
MONEY MARKET
Issued $ 766,305 766,305 $ 1,462,745 1,462,745
Issued in Lieu of
Cash Distributions 7,915 7,915 18,618 18,618
Redeemed (713,356) (713,356) (1,212,542) (1,212,542)
Net Increase (Decrease) 60,864 60,864 268,821 268,821
- --------------------------------------------------------------------------------
LONG-TERM
Investor Shares
Issued $ 127,827 11,097 $ 326,425 28,983
Issued in Lieu of
Cash Distributions 34,180 2,961 50,572 4,496
Redeemed (154,559) (13,432) (391,374) (34,750)
Net Increase (Decrease)
--Investor Shares 7,448 626 (14,377) (1,271)
Admiral Shares
Issued 82,764 7,196 315,702 28,030
Issued in Lieu of
Cash Distributions 18,324 1,588 25,281 2,246
Redeemed (89,877) (7,807) (167,486) (14,867)
Net Increase (Decrease)
--Admiral Shares 11,211 977 173,497 15,409
- --------------------------------------------------------------------------------
32
================================================================================
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 Director/Trustee of The Vanguard Group, Inc.,
(1987) 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); Senior Adviser to Greenwich Associates
(2001) (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), Vice Chairman (January-September 1999),
(2001) and Vice President (prior to September 1999) 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 the Executive Committee of Johnson &
(1998) 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 University; Director of Vanguard
(1977) Investment Series plc (Irish investment fund) (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 Director of NACCO Industries, Inc. (forklift
(1993) 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 Haas Co. (chemicals); Director of
(1985) 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.
[SHIP]
[THE VANGUARD GROUP LOGO]
Post Office Box 2600
Valley Forge, PS 19482-2600
Vanguard, The Vanguard Group,
Vanguard.com, Admiral, Wellington,
and the ship logo are trademarks of
The Vanguard Group, Inc.
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
e-mail through Vanguard.com(R).
Prospectuses may also be
viewed online.
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
DIRECT INVESTOR
ACCOUNT SERVICES
1-800-662-2739
INSTITUTIONAL INVESTOR
SERVICES
1-800-523-1036
TEXT TELEPHONE
1-800-952-3335
(C)2003 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing
Corporation, Distributor.
Q762 072003
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. (Attach certifications as exhibits)
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD NEW YORK TAX-FREE FUNDS
BY: (signature)
----------------------------------------
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER
Date: July 8, 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 NEW YORK TAX-FREE FUNDS
BY: (signature)
----------------------------------------
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER
Date: : July 8, 2003
VANGUARD NEW YORK TAX-FREE FUNDS
BY: (signature)
----------------------------------------
(HEIDI STAM)
THOMAS J. HIGGINS*
TREASURER
Date: : July 8, 2003
*By Power of Attorney. See File Number 2-57689, filed on December 26, 2002.
Incorporated by Reference.