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, 2003 - May 31, 2004
Item 1: Reports to Shareholders
VANGUARD(R) NEW YORK TAX-EXEMPT FUNDS
MAY 31, 2004
SEMIANNUAL REPORT
VANGUARD(R) NEW YORK TAX-EXEMPT MONEY MARKET FUND
VANGUARD(R)NEW YORK LONG-TERM TAX-EXEMPT FUND
THE VANGUARD GROUP(R) LOGO
HOW TO READ YOUR FUND REPORT
This report contains information that can help you evaluate your investment. It
includes details about your fund's return and presents data and analysis that
provide insight into the fund's performance and investment approach.
By reading the letter from Vanguard's chairman, John J. Brennan, together with
the letter from the managers who select securities for your fund, you'll get an
understanding of how the fund invests and how the market environment affected
its performance. The statistical information that follows can help you
understand how the fund's performance and characteristics stack up against those
of similar funds and market benchmarks.
It's important to keep in mind that the opinions expressed by Vanguard's
investment managers are just that: informed opinions. They should not be
considered promises or advice. The opinions, like the statistics, cover the
period through the date on the cover of this report. As things change--and in
the financial markets you can be certain only of change--an investment manager's
job is to evaluate new information and make adjustments, if necessary. Of
course, the risks of investing in the fund are spelled out in the prospectus.
Frequent updates on the fund's performance and information about some of its
holdings are available on Vanguard.com(R).
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CONTENTS
1 LETTER FROM THE CHAIRMAN
6 REPORT FROM THE ADVISOR
9 FUND PROFILES
11 GLOSSARY OF INVESTMENT TERMS
12 PERFORMANCE SUMMARIES
14 ABOUT YOUR FUND'S EXPENSES
16 FINANCIAL STATEMENTS
37 ADVANTAGES OF VANGUARD.COM
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SUMMARY
* The Vanguard New York Tax-Exempt Funds provided returns consistent with an
environment of low, but rising, interest rates.
* The yield of the Tax-Exempt Money Market Fund budged only slightly, while the
yield of the Long-Term Tax-Exempt Fund rose as the prices of its bonds
declined.
* Both funds outperformed their average peer funds.
WANT LESS CLUTTER IN YOUR MAILBOX? JUST REGISTER WITH VANGUARD.COM AND OPT TO
GET FUND REPORTS ONLINE.
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LETTER FROM THE CHAIRMAN
Dear Shareholder,
During the six months ended May 31, 2004, surprisingly strong economic growth
fueled fears of inflation, boosting the yields (and depressing the prices) of
most municipal bonds. The shortest-term securities--those held by money market
portfolios--were an exception to this pattern.
[PICTURES OF JOHN J. BRENNAN]
- -------------------------------------------------------------
TOTAL RETURNS SIX MONTHS ENDED
MAY 31, 2004
- -------------------------------------------------------------
Vanguard New York Tax-Exempt Money Market Fund
(SEC 7-Day Annualized Yield: 0.91%) 0.4%
Average New York Tax-Exempt
Money Market Fund* 0.2
- -------------------------------------------------------------
Vanguard New York Long-Term Tax-Exempt Fund
Investor Shares -0.7%
Admiral Shares -0.7
Lehman 10 Year Municipal Bond Index -0.1
Average New York Municipal Debt Fund* -0.8
Lehman Municipal Bond Index -0.2
- -------------------------------------------------------------
*Derived from data provided by Lipper Inc.
Their yields held steady as investors awaited the Federal Reserve Board's June
meeting on monetary policy.
The Vanguard New York Tax-Exempt Funds provided returns consistent with these
trends. The Long-Term Tax-Exempt Fund returned -0.7%, as its interest income was
not enough to offset the decline in bond prices. The Tax-Exempt Money Market
Fund returned 0.4%. Both funds' returns exceeded the average returns of their
peer groups. The funds' starting and ending net asset values and distributions
to shareholders in the period appear on page 5.
The funds' yields also reflected the market environment, rising slightly for the
Tax-Exempt Money Market Fund and more significantly for the Long-Term Tax-Exempt
Fund. At the end of the six-month period, the Tax-Exempt Money Market Fund
offered a yield of 0.91%, representing a taxable-equivalent yield of 1.52% for
investors in the highest federal tax bracket. (This calculation accounts for
federal and state taxes, but not local taxes or the possibility that an investor
might be subject to the alternative minimum tax.) The Investor Shares of the
Long-Term Tax-Exempt
1
Fund provided a yield of 3.80%, for a taxable-equivalent yield of 6.33%. The
Admiral Shares' 3.86% yield was equivalent to a taxable yield of 6.43%.
STRENGTHENING ECONOMY PUSHED BOND YIELDS HIGHER
The fixed income markets were quiet for much of the six months, but interest
rates rose sharply in April as the economic expansion gathered momentum, raising
the specter of inflation. The yield of the benchmark 10-year U.S. Treasury note
increased 32 basis points, from 4.33% to 4.65%, during the period as bond prices
declined. The Lehman Brothers Aggregate Bond Index, a measure of the taxable
investment-grade bond market, returned 0.6%.
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ADMIRAL(TM) SHARES
A lower-cost class of shares available to many longtime shareholders and to
those with significant investments in the fund.
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The yields of short-term securities rose in expectation of actions by the Fed to
boost interest rates, but those of the shortest-term securities were relatively
stable. The yield of the 3-month Treasury bill, a proxy for money market rates,
closed the period at 1.06%, compared with 0.93% when the fiscal year began.
A more pronounced version of these dynamics was at play in the municipal bond
market. Municipal yields rose more sharply than Treasury rates, producing
steeper price declines and causing municipal bonds to trail their Treasury
counterparts. The yield of a 10-year AAA-rated general-obligation bond rose 38
basis points to 3.93%. The broad municipal market, as measured by the Lehman
Municipal Bond Index, returned -0.2%.
STOCKS ROSE, THEN STALLED
The fiscal half-year opened with strong returns in domestic and foreign stock
markets, as the bull market of 2003 spilled into January. Toward the end of the
period, stock prices retreated. For the six months, the U.S. stock market, as
measured by the Dow Jones Wilshire 5000 Composite Index, returned 6.4%.
Large-capitalization stocks fared better than smaller stocks, and value-oriented
shares (those that generally trade at below-market valuations relative to their
book values and other fundamental measures) posted better results than growth
stocks (those expected to produce above-average earnings growth).
2
PERFORMANCE WAS SUBDUED, BUT PROSPECTS BRIGHTENED
During the first half of fiscal 2004, the New York Long-Term Tax-Exempt Fund
produced a negative total return, but the period was marked by some positives.
The most significant influence on performance was the rise in interest rates
(or, put differently, the decline in bond prices). The increase in rates was
felt most by securities with maturities of less than 10 years.
- --------------------------------------------------------------------------------
MARKET BAROMETER TOTAL RETURNS
PERIODS ENDED MAY 31, 2004
--------------------------------
SIX ONE FIVE
MONTHS YEAR YEARS*
- --------------------------------------------------------------------------------
STOCKS
Lehman Aggregate Bond Index 0.6% -0.4% 6.8%
(Broad taxable market)
Lehman Municipal Bond Index -0.2 0.0 5.5
Citigroup 3-Month Treasury Bill Index 0.5 1.0 3.2
- --------------------------------------------------------------------------------
BONDS
Russell 1000 Index (Large-caps) 6.4% 18.9% -1.0%
Russell 2000 Index (Small-caps) 4.5 30.3 6.7
Dow Jones Wilshire 5000 Index 6.4 20.5 -0.5
(Entire market)
MSCI All Country World Index
ex USA (International) 9.6 33.2 1.4
================================================================================
CPI
Consumer Price Index 2.5% 3.1% 2.6%
- --------------------------------------------------------------------------------
*Annualized.
Rising rates reduced the capital value of the fund's shares by -2.8%, which was
partially offset by the fund's six-month income return of 2.1%. (It's worth
noting that a bond fund's semiannual return includes just a half-year's worth of
interest income but reflects the full impact of any price changes resulting from
interest rate trends.) During the six months, the fund's advisor--Vanguard Fixed
Income Group--kept the fund's duration (a measure of its interest rate
sensitivity) near the short end of its typical range. This positioning helped
moderate the effect of rising rates.
Two positive developments--mostly prospective--were New York's improving fiscal
strength, which enhances the attractiveness of the state's debt, and an
improvement in the relative valuation of Treasury and municipal securities. With
the latter, the bad news is that the more attractive valuation simply reflects
the swifter decline in municipal prices than in Treasury prices. The good news
is that new municipal investments and reinvested distributions can be put to
work at higher absolute yields and at more attractive yields relative to
Treasuries.
For the Tax-Exempt Money Market Fund, the half-year was static; its yield rose
just 3 basis points during the period. The fund maintained a net asset value of
$1 per share (as is expected, but not guaranteed) and generated a higher return
than its peer-group average. The advisor made few changes to the composition of
the high-credit-quality portfolio.
3
As I noted at the outset, both funds outperformed their average competitors, a
tribute to the talents of Vanguard Fixed Income Group and also to the funds'
very low operating expenses. Low costs are important in any environment, but
their value is especially apparent in times of low interest rates, such as those
of the past few years. For more information about the funds and the municipal
bond market, please see the Report from the Advisor on page 6; additional
information about expenses is on page 14.
THOUGH THERE ARE NEW CONCERNS, OUR ADVICE IS THE SAME
Not long ago, in the punishing bear market, we were counseling investors not to
give up on stocks. Today, investor apprehension seems to have relocated to the
bond market, but our message is the same. The best response to the ever-changing
risks of the financial markets is to develop a plan and stick with it. A
sensible plan includes a mix of stock, bond, and money market funds weighted in
proportions appropriate to your unique circumstances. When a tough period
strikes one asset class, some of the pain can be offset by better performance in
another. Over time, this simple, balanced approach puts you in a good position
to meet your financial goals.
Thank you for entrusting your assets to us.
Sincerely,
/S/JOHN J. BRENNAN
John J. Brennan
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
JUNE 15, 2004
4
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YOUR FUND'S PERFORMANCE AT A GLANCE NOVEMBER 30, 2003-MAY 31, 2004
DISTRIBUTIONS PER SHARE
----------------------------
STARTING ENDING INCOME CAPITAL
NEW YORK TAX-EXEMPT FUND SHARE PRICE SHARE PRICE DIVIDENDS GAINS
- --------------------------------------------------------------------------------
Money Market $ 1.00 $ 1.00 $0.004 $0.000
Long-Term
Investor Shares 11.57 11.22 0.243 0.027
Admiral Shares 11.57 11.22 0.246 0.027
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5
REPORT FROM THE ADVISOR
Interest rates declined for much of the six months ended May 31, 2004, but
reversed course in the final two months, finishing the period signifi-cantly
higher than where they started. The Vanguard New York Tax-Exempt Funds produced
total returns consistent with this environment: 0.4% for the Tax-Exempt Money
Market Fund and -0.7% for the Long-Term Tax-Exempt Fund. The rise in interest
rates was most pronounced among shorter-maturity bonds, flattening the yield
curve. (In other words, the interest rate spread between short- and long-term
bonds narrowed.)
THE INVESTMENT ENVIRONMENT
The economy expanded strongly during the semiannual period. In the fourth
quarter of 2003, real (inflation-adjusted) gross domestic product increased an
annualized 4.1%, and in the first quarter of 2004 it rose 3.9%. Business capital
spending accelerated, adding fuel to an economic engine that had been powered
mostly by the consumer over the past few years.
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INVESTMENT PHILOSOPHY
The advisor believes that each fund, while operating within stated maturity and
stringent quality targets, can achieve a relatively high level of current income
that is exempt from federal and New York income taxes by investing in
high-quality securities issued by New York state, county, and municipal
governments.
- --------------------------------------------------------------------------------
Although the Federal Reserve Board maintained its target for the federal funds
rate at 1.00% during the six months, both the bond market's and the Fed's focus
seemed to shift from the possibility of deflation to signs of incipient
inflation. At its May 4 meeting, the Fed's Open Market Committee said it was
adopting a "measured" approach to current monetary policy, a statement widely
interpreted as a signal that the Fed would soon begin to raise rates to offset
inflationary pressures. As the six-month period ended, the market was
forecasting that the Fed would boost its rate target. Fed officials are expected
to implement any rate increases slowly over a lengthy period.
6
On balance, the economic signals were positive, but concerns remained, including
those associated with the soaring price of oil. Although OPEC members indicated
that they planned to boost production, the price of a barrel of crude at the end
of May was still around $40, and gasoline prices were stuck at more than $2 a
gallon as the summer driving season began. Our assessment is that the economy
will continue to expand, and (in keeping with the market consensus) we believe
that the Fed will gradually raise rates to protect against any reemergence of
inflation.
MUNIS GENERALLY UNDERPERFORMED TREASURIES
Except for the longest-term bonds, rate increases (and the corresponding price
declines) were sharper among municipal securities than among U.S. Treasury
securities, leading munis to underperform. Because of the widespread
anticipation of rate increases by the Fed, shorter-term munis--those with
maturities of less than 10 years--were hit particularly hard, as illustrated by
the increase in yields in the adjacent table.
In New York, the supply of newly issued municipal bonds was mostly flat,
increasing 0.9% compared with the same period a year ago-from $18.7 billion in
the first half of fiscal 2003 to $18.9 billion this fiscal half-year. State tax
revenues improved as the economy gathered momentum, enhancing the strength of
the state's general-obligation bonds.
- --------------------------------------------------------------------------------
YIELDS OF MUNICIPAL BONDS (AAA-RATED GENERAL-OBLIGATION ISSUES)
CHANGE
MATURITY NOV. 30, 2003 MAY 31, 2004 (BASIS POINTS)
- --------------------------------------------------------------------------------
2 years 1.40% 2.00% +60
5 years 2.39 3.10 +71
10 years 3.55 3.93 +38
30 years 4.72 4.99 +27
- --------------------------------------------------------------------------------
Source: The Vanguard Group.
The performances of the Vanguard New York Tax-Exempt Funds were in line with
their market segments. We maintained our focus on the market's higher-quality
issues, and as we had during the previous six months, we positioned the funds
defensively relative to interest rate risk. The portfolios' average maturities
and durations ended the period at the low end of their prescribed ranges. Both
funds provided higher returns than their peer-group averages.
7
An important advantage we continue to enjoy relative to peer funds is our lower
costs. Despite the rise in interest rates, yields remain at very low levels by
historical standards. Even seemingly modest differences in expense ratios can
consume a large proportion of the yield available to shareholders.
Robert F. Auwaerter, PRINCIPAL
Christopher M. Ryon, PRINCIPAL
Pamela Wisehaupt Tynan, PRINCIPAL
Kathryn T. Allen, PRINCIPAL
VANGUARD FIXED INCOME GROUP
JUNE 17, 2004
SEE PAGE 16 FOR A COMPLETE
LISTING OF THE FUNDS' HOLDINGS.
8
AS OF 5/31/2004 FUND PROFILES
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 11.
NEW YORK TAX-EXEMPT MONEY MARKET FUND
- --------------------------------------
FINANCIAL ATTRIBUTES
Yield 0.9%
Average Weighted Maturity 37 days
Average Quality MIG-1
Expense Ratio 0.15%*
- --------------------------------------
- -----------------------------------------------
DISTRIBUTION BY CREDIT QUALITY (% OF PORTFOLIO)
MIG-1/SP-1+ 59%
A-1/P-1 38
AAA/AA 3
- -----------------------------------------------
Total 100%
- -----------------------------------------------
*Annualized. VISIT OUR WEBSITE AT VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
9
FUND PROFILES (CONTINUED)
NEW YORK LONG-TERM TAX-EXEMPT FUND
- ---------------------------------------------------------------------------
FINANCIAL ATTRIBUTES
COMPARATIVE BROAD
FUND INDEX* INDEX**
- ---------------------------------------------------------------------------
Number of Issues 255 9,079 48,257
Yield -- --
Investor Shares 3.8%
Admiral Shares 3.9%
Yield to Maturity 4.1%+ -- --
Average Coupon 4.8% 5.2% 5.2%
Average Effective Maturity 7.4 years 7.2 years 9.1 years
Average Quality AAA AA+ AA+
Average Duration 5.7 years 5.8 years 6.3 years
Expense Ratio -- --
Investor Shares 0.15%++
Admiral Shares 0.09%++
Short-Term Reserves 7% -- --
- ---------------------------------------------------------------------------
- ------------------------------------------------
DISTRIBUTIONS BY CREDIT QUALITY (% OF PORTFOLIO)
AAA 81%
AA 17
A 1
BBB 1
- ------------------------------------------------
Total 100%
- ------------------------------------------------
- ---------------------------
INVESTMENT FOCUS
CREDIT QUALITY High
AVERAGE MATURITY Long
- ---------------------------
- ---------------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- ---------------------------------------------------------------------
R-Squared 0.98 1.00 0.98 1.00
Beta 1.03 1.00 1.19 1.00
- ---------------------------------------------------------------------
- -----------------------------------------
DISTRIBUTION BY MATURITY (% OF PORTFOLIO)
Under 1 Year 9%
1-5 Years 15
5-10 Years 61
10-20 Years 12
20-30 Years 2
Over 30 Years 1
- -----------------------------------------
Total 100%
- -----------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Lehman Municipal Bond Index.
+Before expenses.
++Annualized.
10
GLOSSARY OF INVESTMENT TERMS
AVERAGE COUPON. The average interest rate paid on the fixed income securities
held by a fund. It is expressed as a percentage of face value.
- --------------------------------------------------------------------------------
AVERAGE DURATION. An estimate of how much the value of the bonds held by a fund
will fluctuate in response to a change in interest rates. To see how the value
could change, multiply the average duration by the change in rates. If interest
rates rise by 1 percentage point, the value of the bonds in a fund with an
average duration of five years would decline by about 5%. If rates decrease by a
percentage point, the value would rise by 5%.
- --------------------------------------------------------------------------------
AVERAGE EFFECTIVE MATURITY. The average length of time until fixed income
securities held by a fund reach maturity and are repaid, taking into
consideration the possibility that the issuer may call the bond before its
maturity date. The figure reflects the proportion of fund assets represented by
each security; it also reflects any futures contracts held. In general, the
longer the average effective 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.
- --------------------------------------------------------------------------------
AVERAGE WEIGHTED MATURITY. The average length of time until fixed income
securities held by a fund reach maturity and are repaid. The figure reflects the
proportion of fund assets represented by each security.
- --------------------------------------------------------------------------------
BETA. A measure of the magnitude of a fund's past share-price fluctuations in
relation to the ups and downs of a given market index. The index is assigned a
beta of 1.00. Compared with a given index, a fund with a beta of 1.20 typically
would have seen its share price rise or fall by 12% when the index rose or fell
by 10%. 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 index, and the less reliable beta is as an indicator of
volatility.
- --------------------------------------------------------------------------------
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 given index. If a
fund's total returns were precisely synchronized with an index's returns, its
R-squared would be 1.00. If the fund's returns bore no relationship to the
index's returns, its R-squared would be 0.
- --------------------------------------------------------------------------------
SHORT-TERM RESERVES. The percentage of a fund invested in highly liquid,
short-term securities that can be readily converted to cash.
- --------------------------------------------------------------------------------
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 fixed
income securities held by a fund were held to their maturity dates.
- --------------------------------------------------------------------------------
11
As of 5/31/2004 PERFORMANCE SUMMARIES
All of the returns in this report represent past performance, which is not a
guarantee of future results that may be achieved by the funds. (For performance
data current to the most recent month-end, which may be higher or lower than
that cited, visit our website at www.vanguard.com.) 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. The annualized yield shown for
this fund reflects current earnings more closely than do the average annual
returns. For bond funds, both investment returns and principal value can
fluctuate widely, so an investor's shares, when sold, could be worth more or
less than their original cost. The returns shown do not reflect taxes that a
shareholder would pay on fund distributions or on the sale of fund shares.
NEW YORK TAX-EXEMPT MONEY MARKET FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) SEPTEMBER 3, 1997-MAY 31, 2004
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
NEW YORK TAX-EXEMPT AVERAGE
MONEY MARKET FUND FUND*
FISCAL TOTAL TOTAL
YEAR RETURN RETURN
2001 2.8% 2.4%
2002 1.3 0.9
2003 0.9 0.5
2004** 0.4 0.2
- --------------------------------------------------------------------------------
SEC 7-Day Annualized Yield (5/31/2004): 0.91%
*Returns for the Average New York Tax-Exempt Money Market Fund are derived from
data provided by Lipper Inc.
**Six months ended May 31, 2004.
NOTE: See Financial Highlights table on page 32 for dividend information.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2004
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 0.84% 2.24% 0.00% 2.47% 2.47%
- --------------------------------------------------------------------------------
12
NEW YORK LONG-TERM TAX-EXEMPT FUND
- --------------------------------------------------------------------------------
FISCAL-YEAR TOTAL RETURNS (%) NOVEMBER 30, 1993-MAY 31, 2004
- --------------------------------------------------------------------------------
NEW YORK LONG-TERM
TAX-EXEMPT FUND INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
NEW YORK LONG-TERM
TAX-EXEMPT FUND INVESTOR SHARES LEHMAN*
FISCAL CAPITAL INCOME TOTAL TOTAL
YEAR RETURN RETURN RETURN RETURN
- --------------------------------------------------------------------------------
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 2.8 4.4 7.2 6.9
2004** -2.8 2.1 -0.7 -0.1
- --------------------------------------------------------------------------------
*Lehman 10 Year Municipal Bond Index.
**Six months ended May 31, 2004.
NOTE: See Financial Highlights tables on page 33 for dividend and capital gains
information.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2004
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 5.51% 6.04% 1.54% 5.19% 6.73%
Admiral Shares 5/14/2001 5.57 7.04* -- -- --
- --------------------------------------------------------------------------------
*Return since inception.
13
ABOUT YOUR FUND'S EXPENSES
We believe it is important for you to understand the impact of costs on your
investment. All mutual funds have operating expenses. As a shareholder of the
fund, you incur ongoing costs, which include costs for portfolio management,
administrative services, and shareholder reports (like this one), among others.
Operating expenses, which are deducted from a fund's gross income, directly
reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing in your fund and
to compare these costs with those of other mutual funds. The examples are based
on an investment of $1,000 made at the beginning of the period shown and held
for the entire period.
The table below illustrates your fund's costs in two ways:
* ACTUAL FUND RETURN. This section helps you to estimate the actual expenses
that you paid over the period. The "Ending Account Value" shown is derived from
the fund's actual return, and the third column shows the dollar amount that
would have been paid by an investor who started with $1,000 in the fund. You may
use the information here, together with the amount you invested, to estimate the
expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for your fund under the heading "Expenses Paid During Period."
- --------------------------------------------------------------------------------
SIX MONTHS ENDED MAY 31, 2004
BEGINNING ENDING EXPENSES
NEW YORK ACCOUNT VALUE ACCOUNT VALUE PAID DURING
TAX-EXEMPT FUNDS 11/30/2003 5/31/2004 PERIOD*
- --------------------------------------------------------------------------------
Actual Fund Return
New York Tax-Exempt
Money Market Fund $1,000 $1,004 $0.75
New York Long-Term Tax-Exempt Fund
Investor Shares 1,000 993 0.75
Admiral Shares 1,000 993 0.45
Hypothetical 5% Return
New York Tax-Exempt
Money Market Fund $1,000 $1,049 $0.77
New York Long-Term Tax-Exempt Fund
Investor Shares 1,000 1,049 0.77
Admiral Shares 1,000 1,050 0.46
- --------------------------------------------------------------------------------
*Expenses are equal to the fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by the number of days in the
most recent fiscal half-year, then divided by 366.
* HYPOTHETICAL 5% RETURN. This section is intended to help you compare your
fund's costs with those of other mutual funds. It assumes that the fund had a
return of 5% before expenses during the period shown, but that the expense ratio
is unchanged. In this case--because the return used is not the fund's actual
return--the results do not apply to your investment. The example is useful in
making comparisons because the Securities and Exchange Commission requires all
mutual funds to calculate expenses based on a 5% return. You can assess your
fund's costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
14
- --------------------------------------------------------------------------------
ANNUALIZED EXPENSE RATIOS:
YOUR FUND COMPARED WITH ITS PEER GROUP
INVESTOR ADMIRAL PEER
SHARES SHARES GROUP*
- --------------------------------------------------------------------------------
New York Tax-Exempt Money Market Fund 0.15% -- 0.61%
New York Long-Term Tax-Exempt Fund 0.15 0.09% 1.10
- --------------------------------------------------------------------------------
*Peer groups are: for the New York Tax-Exempt Money Market Fund, the Average New
York Tax-Exempt Money Market Fund; for the New York Long-Term Tax-Exempt Fund,
the Average New York Municipal Debt Fund. Peer-group expense ratios are derived
from data provided by Lipper Inc. and capture information through year-end 2003.
Note that the expenses shown in the table on page 14 are meant to highlight and
help you compare ongoing costs only and do not reflect any transactional costs
or account maintenance fees. They do not include your fund's low-balance fee,
described in the prospectus. If this fee were applied to your account, your
costs would be higher. Your fund does not charge transaction fees, such as
purchase or redemption fees, nor does it carry a "sales load."
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
You can find more information about the fund's expenses, including annual
expense ratios for the past five years, in the Financial Statements section of
this report. For additional information on operating expenses and other
shareholder costs, please refer to the appropriate fund prospectus.
15
AS OF 5/31/2004 FINANCIAL STATEMENTS (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 share- holders 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 (100.5%)
- ----------------------------------------------------------------------------------------------------------------------------
Albany County NY BAN 1.75% 12/3/2004 $ 50,000 $ 50,155
Allegany County NY IDA (Atlantic Richfield Project) VRDO 1.11% 6/1/2004 4,700 4,700
Battery Park City NY Auth. Rev. TOB VRDO 1.08% 6/7/2004 * 5,330 5,330
Erie County NY Water Auth. Rev. VRDO 1.01% 6/7/2004 (2) 11,400 11,400
Garden City NY UFSD TAN 1.60% 6/29/2004 5,000 5,002
Great Neck NY UFSD TAN 1.60% 6/29/2004 5,000 5,003
Great Neck NY UFSD TAN 2.00% 6/29/2004 15,000 15,012
Half Hollow Hills NY Central School Dist.
Huntington & Babylon TAN 1.75% 6/29/2004 7,000 7,004
Long Island NY Power Auth. Electric System Rev. CP 0.95% 8/9/2004 26,000 26,000
Long Island NY Power Auth. Electric System Rev. VRDO 1.07% 6/1/2004 LOC 13,700 13,700
Long Island NY Power Auth. Electric System Rev. VRDO 1.08% 6/1/2004 LOC 30,025 30,025
Long Island NY Power Auth. Electric System Rev. VRDO 1.06% 6/7/2004 (1) 4,000 4,000
Long Island NY Power Auth. Electric System Rev. VRDO 1.06% 6/7/2004 (4) 30,800 30,800
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) TOB VRDO 1.08% 6/7/2004 (3)* 5,570 5,570
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) VRDO 1.04% 6/7/2004 (4) 10,500 10,500
Metro. New York Transp. Auth. Rev. (Service Contract)
TOB VRDO 1.09% 6/7/2004 (1)* 10,310 10,310
Metro. New York Transp. Auth. Rev. (Service Contract)
TOB VRDO 1.09% 6/7/2004 (1)* 5,000 5,000
Metro. New York Transp. Auth. Rev. (Service Contract)
TOB VRDO 1.09% 6/7/2004 (2)* 3,600 3,600
16
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
Metro. New York Transp. Auth. Rev. (Transit Rev.) CP 0.95% 7/6/2004 $ 10,000 $ 10,000
Metro. New York Transp. Auth. Rev. (Transit Rev.) CP 0.98% 9/7/2004 15,000 15,000
Metro. New York Transp. Auth. Rev. (Transit Rev.) TOB VRDO 1.08% 6/7/2004 (1)* 3,300 3,300
Metro. New York Transp. Auth. Rev. (Transit Rev.) VRDO 1.06% 6/7/2004 (4) 5,200 5,200
Metro. New York Transp. Auth. Rev. TOB VRDO 1.08% 6/7/2004 (4)* 6,495 6,495
Metro. New York Transp. Auth. Rev. TOB VRDO 1.11% 6/7/2004 (3)* 19,985 19,985
Metro. New York Transp. Auth. Rev. VRDO 1.06% 6/7/2004 (4) 5,000 5,000
Nassau County NY Interim Finance Auth. VRDO 1.04% 6/7/2004 (4) 27,055 27,055
New York City NY Cultural Resources Rev.
(American Museum of Natural History) PUT 0.85% 7/1/2004 (2) 35,975 35,975
New York City NY Cultural Resources Rev.
(Asia Society) VRDO 1.03% 6/7/2004 LOC 11,700 11,700
New York City NY Cultural Resources Rev.
(Carnegie Hall) VRDO 1.04% 6/7/2004 LOC 15,065 15,065
New York City NY Cultural Resources Rev.
(Pierpont Morgan Library) VRDO 1.05% 6/7/2004 LOC 10,000 10,000
New York City NY Cultural Resources Rev.
(Solomon R. Guggenheim Foundation) VRDO 1.05% 6/7/2004 LOC 18,907 18,907
New York City NY GO 2.00% 8/1/2004 17,780 17,812
New York City NY GO TOB VRDO 1.07% 6/7/2004 (10)* 6,955 6,955
New York City NY GO TOB VRDO 1.09% 6/7/2004 (1)* 5,840 5,840
New York City NY GO TOB VRDO 1.09% 6/7/2004 (4)* 6,144 6,144
New York City NY GO TOB VRDO 1.10% 6/7/2004 (1)* 9,995 9,995
New York City NY GO TOB VRDO 1.10% 6/7/2004 (3)* 5,585 5,585
New York City NY GO TOB VRDO 1.10% 6/7/2004 (3)* 5,765 5,765
New York City NY GO TOB VRDO 1.10% 6/7/2004 (3)* 8,415 8,415
New York City NY GO TOB VRDO 1.13% 6/7/2004 *LOC 25,000 25,000
New York City NY GO VRDO 1.07% 6/1/2004 LOC 4,000 4,000
New York City NY GO VRDO 1.08% 6/1/2004 LOC 300 300
New York City NY GO VRDO 1.05% 6/7/2004 LOC 7,000 7,000
New York City NY GO VRDO 1.06% 6/7/2004 LOC 1,350 1,350
New York City NY Housing Dev.Corp.
(Westmont Apartments) VRDO 1.04% 6/7/2004 LOC 24,200 24,200
New York City NY IDA (National Audubon Society) VRDO 1.07% 6/1/2004 LOC 14,700 14,700
New York City NY Muni. Water Finance Auth.
Water & Sewer System CP 0.99% 7/1/2004 9,000 9,000
New York City NY Muni. Water Finance Auth.
Water & Sewer System CP 1.08% 7/15/2004 15,000 15,000
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.30% 6/15/2004 (Prere.) 19,065 19,286
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. TOB VRDO 1.07% 6/7/2004 * 4,400 4,400
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. TOB VRDO 1.09% 6/7/2004 * 4,610 4,610
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. TOB VRDO 1.09% 6/7/2004 (1)(4)* 12,075 12,075
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. TOB VRDO 1.11% 6/7/2004 * 20,500 20,500
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.07% 6/1/2004 5,350 5,350
17
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.08% 6/1/2004 (3) $ 16,050 $ 16,050
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.09% 6/1/2004 3,000 3,000
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.09% 6/1/2004 36,450 36,450
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.09% 6/1/2004 (3) 3,000 3,000
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.05% 6/7/2004 9,800 9,800
New York City NY Transitional Finance Auth. Rev.
TOB VRDO 1.07% 6/7/2004 (3)* 6,080 6,080
New York City NY Transitional Finance Auth. Rev.
TOB VRDO 1.10% 6/7/2004 * 9,845 9,845
New York City NY Transitional Finance Auth. Rev. VRDO 1.07% 6/1/2004 9,975 9,975
New York City NY Transitional Finance Auth. Rev. VRDO 1.07% 6/1/2004 20,850 20,850
New York City NY Transitional Finance Auth. Rev. VRDO 1.08% 6/1/2004 3,000 3,000
New York City NY Transitional Finance Auth. Rev. VRDO 1.08% 6/1/2004 3,850 3,850
New York City NY Transitional Finance Auth. Rev. VRDO 1.00% 6/7/2004 12,000 12,000
New York City NY Transitional Finance Auth. Rev. VRDO 1.06% 6/7/2004 2,900 2,900
New York City NY Transitional Finance Auth. Rev. VRDO 1.06% 6/7/2004 12,000 12,000
New York City NY Transitional Finance Auth. Rev. VRDO 1.06% 6/7/2004 34,500 34,500
New York City NY Transitional Finance Auth. Rev. VRDO 1.07% 6/7/2004 10,500 10,500
New York City NY Transitional Finance Auth. Rev. VRDO 1.08% 6/7/2004 5,900 5,900
New York State Dormitory Auth. Rev. (Columbia Univ.) CP 1.08% 8/6/2004 21,005 21,005
New York State Dormitory Auth. Rev. (Columbia Univ.) CP 1.00% 8/12/2004 11,635 11,635
New York State Dormitory Auth. Rev. (Columbia Univ.) PUT 1.03% 3/8/2005 5,000 5,000
New York State Dormitory Auth. Rev. (Columbia Univ.) PUT 1.60% 6/8/2005 13,000 13,000
New York State Dormitory Auth. Rev. (Cornell Univ.) VRDO 1.09% 6/1/2004 10,525 10,525
New York State Dormitory Auth. Rev. (Cornell Univ.) VRDO 1.03% 6/7/2004 26,900 26,900
New York State Dormitory Auth. Rev. (Cornell Univ.) VRDO 1.03% 6/7/2004 32,920 32,920
New York State Dormitory Auth. Rev.
(Mental Health Services) TOB VRDO 1.08% 6/7/2004 (3)* 5,355 5,355
New York State Dormitory Auth. Rev.
(Mental Health Services) TOB VRDO 1.08% 6/7/2004 (1)* 16,455 16,455
New York State Dormitory Auth. Rev.
(Mental Health Services) TOB VRDO 1.12% 6/7/2004 (3)* 10,500 10,500
New York State Dormitory Auth. Rev.
(Mental Health Services) VRDO 1.05% 6/7/2004 (4) 7,000 7,000
New York State Dormitory Auth. Rev.
(Mental Health Services) VRDO 1.05% 6/7/2004 (1) 20,400 20,400
New York State Dormitory Auth. Rev.
(Mental Health Services) VRDO 1.05% 6/7/2004 (2) 2,500 2,500
New York State Dormitory Auth. Rev.
(Mental Health Services) VRDO 1.05% 6/7/2004 (4) 19,000 19,000
New York State Dormitory Auth. Rev.
(Mental Health Services) VRDO 1.07% 6/7/2004 (4) 16,400 16,400
New York State Dormitory Auth. Rev.
(New York Public Library) VRDO 1.06% 6/7/2004 (1) 40,465 40,465
New York State Dormitory Auth. Rev.
(New York Public Library) VRDO 1.06% 6/7/2004 (1) 10,800 10,800
18
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Auth. Rev. (New York Univ.)
TOB PUT 1.15% 6/7/2004 (1)* $ 6,700 $ 6,700
New York State Dormitory Auth. Rev.
(Personal Income Tax) TOB VRDO 1.08% 6/7/2004 (3)* 5,000 5,000
New York State Dormitory Auth. Rev.
(Rochester Institute of Technology) VRDO 1.05% 6/7/2004 (2) 9,700 9,700
New York State Dormitory Auth. Rev.
(Rockefeller Univ.) VRDO 1.05% 6/7/2004 34,600 34,600
New York State Dormitory Auth. Rev.
(Rockefeller Univ.) VRDO 1.05% 6/7/2004 39,000 39,000
New York State Dormitory Auth. Rev.
(Sloan-Kettering Cancer Center) TOB VRDO 1.08% 6/7/2004 (1)* 5,300 5,300
New York State Dormitory Auth. Rev.
(Univ. of Rochester) 5.75% 7/1/2004 (1)(Prere.) 9,725 9,957
New York State Dormitory Auth. Rev. TOB VRDO 1.08% 6/7/2004 * 4,725 4,725
New York State Energy Research & Dev. Auth. PCR
(NY Electric & Gas) PUT 1.08% 10/15/2004 LOC 23,775 23,766
New York State Environmental Corp. Rev.
(General Electric) CP 1.08% 6/16/2004 8,000 8,000
New York State Environmental Corp. Rev.
(General Electric) CP 1.08% 6/16/2004 3,000 3,000
New York State Environmental Corp. Rev.
(General Electric) CP 0.93% 7/9/2004 21,000 21,000
New York State Environmental Corp. Rev.
(General Electric) CP 1.03% 8/11/2004 23,400 23,400
New York State Environmental Fac. Corp.
PCR TOB VRDO 1.08% 6/7/2004 (4)* 26,725 26,725
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) TOB VRDO 1.08% 6/7/2004 * 3,730 3,730
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) TOB VRDO 1.08% 6/7/2004 * 6,480 6,480
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) TOB VRDO 1.08% 6/7/2004 * 2,710 2,710
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) TOB VRDO 1.08% 6/7/2004 * 13,905 13,905
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) TOB VRDO 1.08% 6/7/2004 * 5,000 5,000
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) TOB VRDO 1.08% 6/7/2004 * 8,250 8,250
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) TOB VRDO 1.09% 6/7/2004 * 15,280 15,280
New York State GO PUT 1.02% 8/5/2004 LOC 31,400 31,400
New York State GO PUT 1.05% 10/7/2004 LOC 30,100 30,100
New York State Housing Finance Agency Service.
Contract Rev. VRDO 1.06% 6/7/2004 LOC 9,000 9,000
New York State Local Govt. Assistance Corp. 5.90% 4/1/2005 (Prere.) 9,000 9,526
New York State Local Govt. Assistance Corp. TOB VRDO 1.12% 6/7/2004 * 5,325 5,325
New York State Local Govt. Assistance Corp. VRDO 1.02% 6/7/2004 LOC 8,020 8,020
New York State Local Govt. Assistance Corp. VRDO 1.04% 6/7/2004 LOC 17,000 17,000
New York State Local Govt. Assistance Corp. VRDO 1.05% 6/7/2004 LOC 11,615 11,615
New York State Local Govt. Assistance Corp. VRDO 1.05% 6/7/2004 LOC 15,290 15,290
19
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
New York State Local Govt. Assistance Corp. VRDO 1.05% 6/7/2004 LOC $ 7,100 $ 7,100
New York State Mortgage Agency Rev. TOB VRDO 1.10% 6/7/2004 * 2,795 2,795
New York State Mortgage Agency Rev. TOB VRDO 1.10% 6/7/2004 (1)* 2,845 2,845
New York State Mortgage Agency Rev. TOB VRDO 1.13% 6/7/2004 * 5,960 5,960
New York State Power Auth. Rev. CP 0.92% 6/1/2004 14,050 14,050
New York State Power Auth. Rev. CP 0.97% 7/7/2004 10,000 10,000
New York State Power Auth. Rev. CP 1.07% 7/23/2004 13,995 13,995
New York State Power Auth. Rev. CP 1.10% 8/11/2004 20,000 20,000
New York State Power Auth. Rev. VRDO 1.06% 6/7/2004 34,500 34,500
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) TOB VRDO 1.08% 6/7/2004 (2)* 10,550 10,550
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) TOB VRDO 1.10% 6/7/2004 (1)* 8,555 8,555
New York State Thruway Auth. Rev. CP 1.09% 7/21/2004 20,000 20,000
New York State Thruway Auth. Rev. CP 1.10% 7/23/2004 15,000 15,000
New York State Thruway Auth. Rev. CP 0.93% 8/6/2004 9,000 9,000
New York State Thruway Auth. Rev. CP 0.95% 8/6/2004 3,000 3,000
New York State Thruway Auth. Rev. CP 1.13% 8/12/2004 12,250 12,250
North Hempstead NY BAN 2.00% 4/28/2005 10,465 10,538
Oneida County NY IDA Rev. (Hamilton College) VRDO 1.03% 6/7/2004 (1) 26,980 26,980
Port Auth. of New York & New Jersey CP 1.10% 8/26/2004 6,500 6,500
Port Auth. of New York & New Jersey CP 0.98% 9/10/2004 13,140 13,140
Port Auth. of New York & New Jersey Rev. TOB VRDO 1.11% 6/7/2004 * 10,000 10,000
Rockland County NY BAN 2.00% 2/24/2005 5,530 5,567
Rockland County NY BAN 1.75% 3/24/2005 45,000 45,260
Suffolk County NY Water Auth. Rev. VRDO 1.04% 6/7/2004 39,700 39,700
Syosset NY Central School Dist. BAN 1.30% 7/16/2004 2,000 2,001
Tobacco Settlement Financing Corp. NY Rev. TOB VRDO 1.10% 6/7/2004 (2)* 6,295 6,295
Tompkins County NY IDA Civic Fac. (Cornell Univ.) VRDO 1.03% 6/7/2004 12,300 12,300
Tompkins County NY IDA Civic Fac. (Cornell Univ.) VRDO 1.03% 6/7/2004 8,390 8,390
Triborough Bridge & Tunnel Auth. New York Rev. TOB VRDO 1.08% 6/7/2004 (1)* 7,200 7,200
Triborough Bridge & Tunnel Auth. New York Rev. TOB VRDO 1.09% 6/7/2004 (1)* 1,995 1,995
Triborough Bridge & Tunnel Auth. New York Rev. TOB VRDO 1.10% 6/7/2004 * 9,230 9,230
Triborough Bridge & Tunnel Auth. New York Rev. TOB VRDO 1.10% 6/7/2004 (2)* 16,660 16,660
Triborough Bridge & Tunnel Auth. New York Rev. VRDO 1.03% 6/7/2004 (4) 2,400 2,400
Triborough Bridge & Tunnel Auth. New York Rev. VRDO 1.04% 6/7/2004 25,000 25,000
Triborough Bridge & Tunnel Auth. New York Rev. VRDO 1.06% 6/7/2004 (4) 15,500 15,500
Triborough Bridge & Tunnel Auth. New York Rev. VRDO 1.06% 6/7/2004 (4) 24,200 24,200
Troy County NY IDA Civic Fac. Rev.
(Rensselaer Polytechnic Institute) VRDO 1.07% 6/7/2004 11,250 11,250
OUTSIDE NEW YORK:
Puerto Rico Govt. Dev. Bank VRDO 0.97% 6/7/2004 (1) 2,000 2,000
Puerto Rico Highway & Transp. Auth. Rev. VRDO 1.06% 6/7/2004 (2) 54,500 54,500
Puerto Rico Public Finance Corp. VRDO 1.09% 6/7/2004 (11)* 13,975 13,975
Puerto Rico TRAN 2.00% 7/30/2004 10,000 10,017
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS (Cost $2,113,337) $ 2,113,337
- ----------------------------------------------------------------------------------------------------------------------------
20
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK TAX-EXEMPT MONEY MARKET FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-0.5%)
- ----------------------------------------------------------------------------------------------------------------------------
Other Assets--Note B $ 14,839
Liabilities (24,495)
-------------
(9,656)
-------------
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%)
- ----------------------------------------------------------------------------------------------------------------------------
Applicable to 2,103,398,223 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $ 2,103,681
============================================================================================================================
NET ASSET VALUE PER SHARE $ 1.00
============================================================================================================================
* See Note A in Notes to Financial Statements.
* Security 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, 2004, the aggregate value
of these securities was $428,299,000, representing 20.4% of net assets. For key
to abbreviations and other references, see page 29.
- --------------------------------------------------------------------------------
AT MAY 31, 2004, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
- --------------------------------------------------------------------------------
Paid-in Capital $2,103,417 $1.00
Undistributed Net Investment Income -- --
Accumulated Net Realized Gains 264 --
Unrealized Appreciation -- --
- --------------------------------------------------------------------------------
NET ASSETS $2,103,681 $1.00
================================================================================
21
- ----------------------------------------------------------------------------------------------------------------------------
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 $ 4,809
Albany NY GO 7.00% 1/15/2005(2) 20 20
Battery Park City NY Auth. Rev. 5.50% 11/1/2006(2)(Prere.) 11,750 12,882
Battery Park City NY Auth. Rev. 5.25% 11/1/2015 12,520 13,544
Broome County NY Public Safety Fac. Project COP 5.25% 4/1/2015(1) 335 342
Broome County NY Public Safety Fac. Project COP 5.25% 4/1/2015(1)(ETM) 2,665 2,745
Buffalo & Erie Counties NY Toll Bridge Auth. Rev. 6.00% 1/1/2015(1) 4,500 4,643
Buffalo NY GO 5.125% 2/1/2012(2) 1,870 2,014
Buffalo NY GO 5.125% 2/1/2013(2) 2,945 3,160
Erie County NY Water Auth. Rev. 6.00% 12/1/2008(2)(ETM) 1,600 1,738
Hempstead NY GO 5.50% 8/1/2005(3)(Prere.) 190 202
Hempstead NY GO 5.625% 2/1/2006(3)(Prere.) 210 226
Hempstead NY GO 5.625% 2/1/2006(3)(Prere.) 270 291
Hempstead NY GO 5.625% 2/1/2013(3) 960 1,030
Hempstead NY GO 5.625% 2/1/2012(3) 1,220 1,309
Hempstead NY GO 5.50% 8/1/2011(3) 2,260 2,408
Hempstead NY IDA Civic Fac. Rev. (Hofstra Univ.) 5.25% 7/1/2017 2,360 2,450
Hempstead NY IDA Civic Fac. Rev. (Hofstra Univ.) 5.25% 7/1/2019 3,200 3,281
Huntington NY GO 6.70% 2/1/2011(3) 310 367
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2019(4) 2,460 1,197
Long Island NY Power Auth. Electric System Rev. 5.50% 12/1/2011(2) 5,000 5,567
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2014(4) 5,000 3,259
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2021(4) 13,355 5,766
Long Island NY Power Auth. Electric System Rev. 5.25% 6/1/2013 15,690 16,768
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2011(4) 16,690 12,801
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2024(4) 21,830 7,770
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2027(4) 23,905 7,000
Long Island NY Power Auth. Electric System Rev. 0.00% 6/1/2023(4) 35,500 13,554
Long Island NY Power Auth. Electric System Rev. VRDO 1.07% 6/1/2004 LOC 8,800 8,800
Long Island NY Power Auth. Electric System Rev. VRDO 1.08% 6/1/2004 LOC 11,100 11,100
Metro. New York Transp. Auth. Rev. (Commuter Fac.) 5.125% 7/1/2009(3)(Prere.) 3,000 3,275
Metro. New York Transp. Auth. Rev. (Commuter Fac.) 5.50% 7/1/2011(Prere.) 6,280 7,035
Metro. New York Transp. Auth. Rev. (Commuter Fac.) 5.50% 7/1/2013(2)(Prere.) 6,585 7,404
Metro. New York Transp. Auth. Rev. (Commuter Fac.) 5.30% 7/1/2009(3)(Prere.) 17,475 19,221
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 5.25% 10/1/2010(1)(Prere.) 7,900 8,718
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 6.00% 4/1/2020(1)(ETM) 32,500 37,665
Metro. New York Transp. Auth. Rev.
(Dedicated Petroleum Tax) 5.25% 10/1/2010(1)(Prere.) 34,060 37,585
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2016(1) 4,000 4,352
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2017(1) 5,000 5,437
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.00% 1/1/2012(2)(Prere.) 5,000 5,444
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2019(1) 6,000 6,475
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2020(1) 7,000 7,528
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2014(2) 8,000 8,997
Metro. New York Transp. Auth. Rev. (Transit Rev.) 7.00% 7/1/2009(2)(ETM) 9,050 10,259
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2016(2) 28,075 30,548
Metro. New York Transp. Auth. Rev. (Transit Rev.) 5.50% 11/15/2017(2)* 35,000 38,061
Metro. New York Transp. Auth. Rev. (Transit Rev.) VRDO 1.06% 6/7/2004(4) 24,100 24,100
22
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
Nassau County NY Combined Sewer Dist. GO 6.25% 5/15/2010(1) $ 820 $ 837
Nassau County NY Combined Sewer Dist. GO 6.25% 5/15/2009(1) 825 842
Nassau County NY Combined Sewer Dist. GO 5.875% 8/1/2012(3) 825 839
Nassau County NY Combined Sewer Dist. GO 6.20% 5/15/2008(1) 835 852
Nassau County NY Combined Sewer Dist. GO 6.20% 5/15/2007(1) 840 857
Nassau County NY Combined Sewer Dist. GO 5.00% 5/1/2011(3) 1,770 1,918
Nassau County NY Combined Sewer Dist. GO 5.00% 5/1/2010(3) 2,875 3,111
Nassau County NY GO 5.75% 2/1/2011(1) 1,100 1,118
Nassau County NY GO 5.70% 8/1/2011(3) 2,000 2,075
Nassau County NY GO 5.25% 6/1/2011(2) 3,670 3,993
Nassau County NY GO 5.25% 6/1/2012(2) 4,670 5,074
Nassau County NY GO 5.25% 6/1/2014(2) 6,585 7,101
Nassau County NY GO 5.25% 6/1/2013(2) 6,905 7,486
Nassau County NY Interim Finance Auth. VRDO 1.04% 6/7/2004(4) 3,635 3,635
New York City NY Cultural Resources Rev.
(American Museum of Natural History) 5.60% 4/1/2018(1) 2,635 2,832
New York City NY Cultural Resources Rev.
(American Museum of Natural History) 5.65% 4/1/2022(1) 5,000 5,316
New York City NY Cultural Resources Rev.
(American Museum of Natural History) 5.70% 4/1/2016(1) 12,730 13,703
New York City NY Cultural Resources Rev.
(Museum of Modern Art) 5.50% 1/1/2007(2)(ETM) 35 38
New York City NY Cultural Resources Rev.
(Museum of Modern Art) 5.40% 1/1/2006(2)(ETM) 85 90
New York City NY Cultural Resources Rev.
(Museum of Modern Art) 5.50% 1/1/2016(2) 2,000 2,144
New York City NY GO 5.75% 5/15/2011(4) 4,540 5,078
New York City NY GO 5.875% 5/15/2012(4) 4,670 5,254
New York City NY GO 5.25% 3/15/2016(2) 5,000 5,305
New York City NY GO 5.20% 8/1/2014(4) 5,000 5,312
New York City NY GO 5.75% 3/15/2027(4) 5,000 5,343
New York City NY GO 6.375% 8/15/2005(Prere.) 5,400 5,765
New York City NY GO 5.375% 8/1/2013(3) 8,295 8,980
New York City NY GO 5.75% 8/1/2011(1) 15,750 17,648
New York City NY GO 5.125% 8/1/2013(4) 19,025 20,417
New York City NY GO VRDO 1.08% 6/1/2004LOC 7,000 7,000
New York City NY IDA (USTA National Tennis Center) 6.375% 11/15/2014(4) 2,000 2,082
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 0.00% 6/15/2021 4,490 1,932
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.35% 6/15/2013(1) 5,300 5,416
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 0.00% 6/15/2017 10,000 5,434
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 0.00% 6/15/2018 10,000 5,136
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.75% 6/15/2029(1) 15,000 15,988
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.875% 6/15/2012(2) 18,500 21,098
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.875% 6/15/2013(2) 20,000 22,927
23
- ----------------------------------------------------------------------------------------------------------------------------
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. 5.50% 6/15/2027(1) $ 23,955 $ 24,847
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.375% 6/15/2017 25,015 26,617
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.375% 6/15/2018 25,095 26,633
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. 5.75% 6/15/2031(3) 30,650 32,711
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.09% 6/1/2004 5,700 5,700
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.09% 6/1/2004(3) 9,500 9,500
New York City NY Muni. Water Finance Auth.
Water & Sewer System Rev. VRDO 1.09% 6/1/2004 16,500 16,500
New York City NY Transitional Finance Auth. Rev. 5.50% 5/1/2009(Prere.) 15 17
New York City NY Transitional Finance Auth. Rev. 5.75% 5/15/2010(Prere.) 930 1,057
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2011(Prere.) 1,150 1,290
New York City NY Transitional Finance Auth. Rev. 5.50% 5/1/2009(Prere.) 1,325 1,477
New York City NY Transitional Finance Auth. Rev. 5.50% 5/1/2025 1,660 1,719
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2011(Prere.) 2,265 2,540
New York City NY Transitional Finance Auth. Rev. 5.50% 2/15/2016 2,735 2,943
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2012 2,805 3,102
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2011(Prere.) 2,955 3,313
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2015 3,850 4,158
New York City NY Transitional Finance Auth. Rev. 5.75% 8/15/2009(Prere.) 5,000 5,649
New York City NY Transitional Finance Auth. Rev. 5.375% 2/1/2015 7,310 7,843
New York City NY Transitional Finance Auth. Rev. 5.375% 2/1/2016 8,415 8,983
New York City NY Transitional Finance Auth. Rev. 5.75% 11/15/2020 9,070 9,886
New York City NY Transitional Finance Auth. Rev. 5.375% 2/15/2015 9,395 10,090
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2014 9,735 10,643
New York City NY Transitional Finance Auth. Rev. 5.50% 2/1/2016 11,045 11,870
New York City NY Transitional Finance Auth. Rev. 5.25% 5/1/2013 12,270 13,358
New York City NY Transitional Finance Auth. Rev. 5.25% 5/1/2014 17,720 19,128
New York City NY Transitional Finance Auth. Rev. VRDO 1.08% 6/1/2004 1,450 1,450
New York City NY Transitional Finance Auth. Rev. VRDO 1.07% 6/1/2004 1,650 1,650
New York City NY Transitional Finance Auth. Rev. VRDO 1.07% 6/1/2004 1,900 1,900
New York City NY Transitional Finance Auth. Rev. VRDO 1.07% 6/1/2004 2,985 2,985
New York City NY Transitional Finance Auth. Rev. VRDO 1.07% 6/1/2004 3,000 3,000
New York State Dormitory Auth. Rev. (Barnard College) 5.25% 7/1/2026(2) 4,370 4,420
New York State Dormitory Auth. Rev. (Catholic Health) 5.50% 7/1/2022(1) 10,000 10,541
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2010(3) 2,215 2,425
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2010(3) 4,475 4,900
New York State Dormitory Auth. Rev. (City Univ.) 5.50% 7/1/2016(2) 4,640 4,987
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2011(3) 5,950 6,740
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2016(3) 7,255 7,943
New York State Dormitory Auth. Rev. (City Univ.) 5.50% 7/1/2006(2)(Prere.) 11,360 12,364
New York State Dormitory Auth. Rev. (City Univ.) 5.75% 7/1/2010(3) 31,620 34,620
New York State Dormitory Auth. Rev. (Columbia Univ.) 5.125% 7/1/2019 5,100 5,359
New York State Dormitory Auth. Rev. (Court Fac.) 5.75% 5/15/2023(2) 21,370 23,045
New York State Dormitory Auth. Rev.
(Department of Health) 5.50% 7/1/2025(1) 3,870 4,028
24
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Auth. Rev. (Fordham Univ.) 7.20% 7/1/2015(2) $ 710 $ 713
New York State Dormitory Auth. Rev. (Fordham Univ.) 5.75% 7/1/2015(3) 1,500 1,534
New York State Dormitory Auth. Rev. (Fordham Univ.) 5.50% 7/1/2023(3) 10,150 10,377
New York State Dormitory Auth. Rev.
(Lenox Hill Hosp. Obligation Group) 5.375% 7/1/2020 2,400 2,459
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.375% 2/15/2026(1) 270 274
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.875% 8/15/2013(4) 2,475 2,744
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.875% 8/15/2014(4) 2,625 2,877
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.875% 8/15/2015(4) 2,785 3,033
New York State Dormitory Auth. Rev.
(Mental Health Services) 5.375% 2/15/2006(1)(Prere.) 7,230 7,775
New York State Dormitory Auth. Rev.
(Mental Health Services) VRDO 1.05% 6/7/2004(1) 800 800
New York State Dormitory Auth. Rev.
(Mental Health Services) VRDO 1.05% 6/7/2004(1) 1,800 1,800
New York State Dormitory Auth. Rev.
(Mental Health Services) VRDO 1.04% 6/7/2004(4) 18,000 18,000
New York State Dormitory Auth. Rev.
(Montefiore Medical Center) 5.25% 2/1/2015(2) 42,750 44,987
New York State Dormitory Auth. Rev.
(New School for Social Research) 5.625% 7/1/2016(1) 2,260 2,447
New York State Dormitory Auth. Rev. (New York Univ.) 5.50% 7/1/2016(2) 1,925 2,143
New York State Dormitory Auth. Rev. (New York Univ.) 5.75% 7/1/2016(1) 3,500 3,989
New York State Dormitory Auth. Rev. (New York Univ.) 5.50% 7/1/2031(2) 8,910 9,648
New York State Dormitory Auth. Rev. (New York Univ.) 5.50% 7/1/2040(2) 20,330 22,081
New York State Dormitory Auth. Rev. (Pace) 5.625% 7/1/2017(1) 11,185 12,111
New York State Dormitory Auth. Rev. (Queens Hosp.) 5.45% 8/15/2019(2) 4,960 5,200
New York State Dormitory Auth. Rev.
(Rochester Institute of Technology) 5.25% 7/1/2022(1) 3,000 3,103
New York State Dormitory Auth. Rev.
(Rochester Institute of Technology) 5.30% 7/1/2017(1) 6,275 6,665
New York State Dormitory Auth. Rev. (Rockefeller Univ.) 5.00% 7/1/2018 2,805 2,876
New York State Dormitory Auth. Rev.
(Sloan-Kettering Cancer Center) 5.75% 7/1/2020(1) 5,500 6,200
New York State Dormitory Auth. Rev.
(Sloan-Kettering Cancer Center) 5.00% 7/1/2022(1) 5,500 5,552
New York State Dormitory Auth. Rev.
(Sloan-Kettering Cancer Center) 5.50% 7/1/2023(1) 14,000 15,215
New York State Dormitory Auth. Rev.
(Sloan-Kettering Cancer Center) 5.75% 7/1/2019(1) 15,900 17,947
New York State Dormitory Auth. Rev. (St. John's Univ.) 5.70% 7/1/2026(1) 14,370 15,256
New York State Dormitory Auth. Rev. (St. John's Univ.) 5.25% 7/1/2020(1) 15,170 15,859
New York State Dormitory Auth. Rev. (St. Joseph's Hosp.) 5.25% 7/1/2018(1) 6,700 6,911
New York State Dormitory Auth. Rev.
(St. Vincent Hosp. Medical Center) 5.80% 8/1/2025(2) 4,250 4,474
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 7/1/2009(2) 1,590 1,794
New York State Dormitory Auth. Rev. (State Univ.) 5.75% 5/15/2017(4) 3,750 4,262
25
- ----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
New York State Dormitory Auth. Rev. (State Univ.) 5.375% 7/1/2012(Prere.) $ 4,720 $ 5,274
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2016(1) 5,000 5,599
New York State Dormitory Auth. Rev. (State Univ.) 5.375% 7/1/2012(Prere.) 5,315 5,938
New York State Dormitory Auth. Rev. (State Univ.) 5.25% 5/15/2015(4) 6,500 7,089
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2014(1) 10,660 12,088
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2015(1) 12,500 13,998
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2012(1) 16,160 18,325
New York State Dormitory Auth. Rev. (State Univ.) 6.00% 5/15/2013(1) 27,285 30,940
New York State Dormitory Auth. Rev.
(The New York & Presbyterian Hosp.) 5.50% 2/1/2010(2) 6,330 6,965
New York State Dormitory Auth. Rev. (Univ. of Rochester) 5.00% 7/1/2017(1) 2,000 2,060
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.00% 7/1/2016(2) 1,250 1,297
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.00% 7/1/2015(2) 3,000 3,122
New York State Dormitory Auth. Rev.
(Upstate Community Colleges) 5.25% 7/1/2012(2) 6,170 6,705
New York State Dormitory Auth. Rev.
(Vassar Brothers Hosp.) 5.375% 7/1/2025(4) 7,000 7,137
New York State Dormitory Auth. Rev.
(Vassar Brothers Hosp.) 5.25% 7/1/2017(4) 8,025 8,327
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2016 3,095 3,308
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.375% 6/15/2016 6,000 6,481
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.375% 6/15/2015 7,650 8,302
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2018 10,000 10,564
New York State Environmental Fac. Corp. Rev.
(Clean Water & Drinking Revolving Funds) 5.25% 6/15/2019 36,610 38,521
New York State Local Govt. Assistance Corp. 5.00% 4/1/2013(4) 6,395 6,926
New York State Local Govt. Assistance Corp. 5.25% 4/1/2015(2) 8,000 8,454
New York State Local Govt. Assistance Corp. 5.50% 4/1/2017 12,905 14,153
New York State Local Govt. Assistance Corp. VRDO 1.04% 6/7/2004LOC 3,000 3,000
New York State Local Govt. Assistance Corp. VRDO 1.05% 6/7/2004LOC 4,985 4,985
New York State Medical Care Fac. Finance Agency Rev.
(Mental Health Services) 6.00% 2/15/2005(1)(Prere.) 150 158
New York State Thruway Auth. Rev. 5.25% 1/1/2014 5,560 5,904
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.50% 4/1/2015(3) 2,000 2,174
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.75% 4/1/2016(3) 2,080 2,287
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.50% 4/1/2014(3) 2,500 2,751
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.75% 4/1/2015(3) 2,500 2,748
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.75% 4/1/2014(3) 3,000 3,351
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.50% 4/1/2016(3) 3,000 3,243
26
- ----------------------------------------------------------------------------------------------------------------------------
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 $ 6,328
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.75% 4/1/2013(3) 5,870 6,562
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.25% 4/1/2014(1) 7,500 8,079
New York State Thruway Auth. Rev.
(Highway & Bridge Trust Fund) 5.50% 4/1/2014(2) 32,875 36,178
New York State Thruway Auth. Rev. (Service Contract) 5.25% 4/1/2007(Prere.) 1,300 1,421
New York State Thruway Auth. Rev. (Service Contract) 5.75% 4/1/2009(1)(Prere.) 4,000 4,500
New York State Thruway Auth. Rev. (Service Contract) 5.25% 4/1/2015 6,775 7,101
New York State Urban Dev. Corp. Rev.
(Community Enhancement Fac.) 5.125% 4/1/2015(2) 5,500 5,768
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 6.00% 1/1/2009(2)(Prere.) 2,500 2,827
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 6.00% 1/1/2009(2)(Prere.) 3,000 3,393
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 6.00% 1/1/2009(2)(Prere.) 4,110 4,648
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 6.00% 1/1/2009(2)(Prere.) 5,000 5,655
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 5.75% 1/1/2011(4)(Prere.) 6,380 7,194
New York State Urban Dev. Corp. Rev. (Correctional Fac.) 5.50% 4/1/2016(1) 13,350 14,277
Niagara County NY IDA Solid Waste Disposal Rev. PUT 5.55% 11/15/2013 12,500 12,948
Niagara Falls NY Bridge Comm. Rev. 5.25% 10/1/2015(3) 5,000 5,443
Niagara Falls NY Bridge Comm. Rev. 6.25% 10/1/2020(3) 8,685 10,363
Niagara Falls NY Bridge Comm. Rev. 6.25% 10/1/2021(3) 9,230 11,011
North Hempstead NY GO 6.40% 4/1/2010(3) 1,500 1,733
North Hempstead NY GO 6.40% 4/1/2011(3) 2,075 2,422
North Hempstead NY Solid Waste Auth. 5.00% 2/1/2012(1) 115 118
Onondaga County NY Public Improvements 5.875% 2/15/2008 1,225 1,355
Onondaga County NY Public Improvements 5.875% 2/15/2008(ETM) 1,250 1,383
Port Auth. of New York & New Jersey Rev. 5.50% 12/15/2016(2) 4,190 4,501
Port Auth. of New York & New Jersey Rev. 5.50% 12/15/2017(2) 4,600 4,913
Port Auth. of New York & New Jersey Rev. 5.50% 12/15/2018(2) 4,620 4,886
Suffolk County NY Water Auth. Rev. 5.25% 6/1/2017(2)(ETM) 1,695 1,851
Suffolk County NY Water Auth. Rev. 5.25% 6/1/2011(2)(ETM) 2,380 2,624
Suffolk County NY Water Auth. Rev. 5.25% 6/1/2010(2)(ETM) 3,790 4,177
Suffolk County NY Water Auth. Rev. 5.25% 6/1/2012(2)(ETM) 4,290 4,754
Suffolk County NY Water Auth. Rev. 5.75% 6/1/2013(2)(ETM) 7,340 7,342
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 1/1/2018 2,330 2,443
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 1/1/2016 2,500 2,651
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 1/1/2015 2,930 3,128
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 1/1/2014 3,000 3,227
Triborough Bridge & Tunnel Auth. New York Rev. 6.75% 1/1/2009(2)(ETM) 3,000 3,366
Triborough Bridge & Tunnel Auth. New York Rev. 5.50% 11/15/2021(1) 11,370 12,604
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2017 16,770 17,744
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2018 30,285 31,890
Triborough Bridge & Tunnel Auth. New York Rev. 5.25% 11/15/2019 43,025 45,120
Triborough Bridge & Tunnel Auth. New York Rev. VRDO 1.03% 6/7/2004(4) 350 350
OUTSIDE NEW YORK:
Puerto Rico Electric Power Auth. Rev. 5.25% 7/1/2015(1) 5,000 5,361
Puerto Rico Electric Power Auth. Rev. 5.25% 7/1/2015(1) 7,000 7,711
Puerto Rico Electric Power Auth. Rev. 5.375% 7/1/2016(1) 16,345 17,826
Puerto Rico Electric Power Auth. Rev. 5.375% 7/1/2018(1) 6,250 6,754
27
- -----------------------------------------------------------------------------------------------------------------------------
FACE MARKET
MATURITY AMOUNT VALUE*
NEW YORK LONG-TERM TAX-EXEMPT FUND COUPON DATE (000) (000)
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Auth. Rev. 5.375% 7/1/2019(1) $ 6,500 $ 6,996
Puerto Rico GO 5.50% 7/1/2013(3) 6,000 6,768
Puerto Rico GO 5.50% 7/1/2014(3) 2,500 2,823
Puerto Rico GO 5.00% 7/1/2018(1) 2,650 2,739
Puerto Rico GO 5.50% 7/1/2018(4) 5,000 5,595
Puerto Rico GO 5.50% 7/1/2020(3) 6,305 7,013
Puerto Rico GO 5.50% 7/1/2021(1) 16,505 18,270
Puerto Rico Govt. Dev. Bank VRDO 0.97% 6/7/2004(1) 1,700 1,700
Puerto Rico Highway & Transp. Auth. Rev. VRDO 1.06% 6/7/2004(2) 2,600 2,600
Puerto Rico Muni. Finance Agency 5.75% 8/1/2011(4) 8,060 9,006
Puerto Rico Muni. Finance Agency 5.75% 8/1/2011(4) 7,750 8,659
Puerto Rico Muni. Finance Agency 5.875% 8/1/2014(4) 6,480 7,265
Puerto Rico Muni. Finance Agency 6.00% 8/1/2016(4) 2,645 2,964
Puerto Rico Muni. Finance Agency 5.25% 8/1/2017(4) 7,000 7,517
Puerto Rico Public Buildings Auth. Govt. Fac. Rev. 5.25% 7/1/2014(3) 10,000 11,086
Puerto Rico Public Finance Corp. 6.00% 8/1/2026 10,000 11,101
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $1,941,628) 2,028,366
- -----------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.1%)
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets--Note B 28,984
Liabilities (6,105)
--------------
22,879
--------------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS (100%) $2,051,245
=============================================================================================================================
*See Note A in Notes to Financial Statements.
*Securities with a value of $6,606,000 have been segregated as initial margin
for open futures contracts. For key to abbreviations and other references, see
page 29.
28
- --------------------------------------------------------------------------------
AMOUNT
(000)
- --------------------------------------------------------------------------------
AT MAY 31, 2004, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
Paid-in Capital 1,962,213
Undistributed Net Investment Income --
Accumulated Net Realized Gains 2,342
Unrealized Appreciation (Depreciation)
Investment Securities 86,738
Futures Contracts (48)
- --------------------------------------------------------------------------------
NET ASSETS $2,051,245
================================================================================
Investor Shares--Net Assets
Applicable to 114,210,544 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $1,280,924
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE--INVESTOR SHARES $11.22
================================================================================
Admiral Shares--Net Assets
Applicable to 68,683,945 outstanding $.001
par value shares of beneficial interest (unlimited authorization) $770,321
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE--ADMIRAL SHARES $11.22
================================================================================
See Note C 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.
FR--Floating Rate.
GAN--Grant Anticipation Note.
GO--General Obligation Bond.
IDA--Industrial Development Authority Bond.
IDR--Industrial Development Revenue Bond.
PCR--Pollution Control Revenue Bond.
PUT--Put Option Obligation.
RAN--Revenue Anticipation Note.
TAN--Tax Anticipation Note.
TOB--Tender Option Bond.
TRAN--Tax Revenue Anticipation Note.
UFSD--Union Free School District.
USD--United School District.
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).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty).
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. statement of operations
29
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 TAX-EXEMPT NEW YORK LONG-TERM
MONEY MARKET FUND TAX-EXEMPT FUND
------------------------------------------------------
SIX MONTHS ENDED MAY 31, 2004
- --------------------------------------------------------------------------------
(000) (000)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Interest $ 9,646 $ 45,906
- --------------------------------------------------------------------------------
Total Income 9,646 45,906
- --------------------------------------------------------------------------------
EXPENSES
The Vanguard Group--Note B
Investment Advisory Services 120 138
Management and Administrative
Investor Shares 1,109 781
Admiral Shares -- 248
Marketing and Distribution
Investor Shares 181 100
Admiral Shares -- 51
Custodian Fees 6 9
Shareholders' Reports
Investor Shares 6 9
Admiral Shares -- 1
Trustees' Fees and Expenses 1 1
- --------------------------------------------------------------------------------
Total Expenses 1,423 1,338
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 8,223 44,568
- --------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS)
Investment Securities Sold 273 3,348
Futures Contracts -- (264)
- --------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS) 273 3,084
- --------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
Investment Securities -- (64,788)
Futures Contracts -- (48)
- --------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) -- (64,836)
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 8,496 $(17,184)
================================================================================
30
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, 2004 NOV. 30, 2003 MAY 31, 2004 NOV. 30, 2003
(000) (000) (000) (000)
- -------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 8,223 $ 14,945 $ 44,568 $ 91,122
Realized Net Gain (Loss) 273 (8) 3,084 5,247
Change in Unrealized Appreciation (Depreciation) -- -- (64,836) 53,745
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 8,496 14,937 (17,184) 150,114
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (8,223) (14,945) (27,798) (56,709)
Admiral Shares -- -- (16,770) (34,413)
Realized Capital Gain*
Investor Shares -- -- (3,012) (14,716)
Admiral Shares -- -- (1,784) (8,920)
- -------------------------------------------------------------------------------------------------------------------
Total Distributions (8,223) (14,945) (49,364) (114,758)
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS--Note E
Investor Shares 331,102 144,900 1,377 (40,117)
Admiral Shares -- -- 24,367 (54,079)
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions 331,102 144,900 25,744 (94,196)
- -------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) 331,375 144,892 (40,804) (58,840)
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 1,772,306 1,627,414 2,092,049 2,150,889
- -------------------------------------------------------------------------------------------------------------------
End of Period $2,103,681 $1,772,306 $2,051,245 $2,092,049
===================================================================================================================
*Includes fiscal 2004 and 2003 short-term gain distributions by the New York
Long-Term Tax-Exempt Fund totaling $0 and $1,207,000, respectively. Short-term
gain distributions are treated as ordinary income dividends for tax purposes.
31
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
- ----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED NOVEMBER 30,
MAY 31, -----------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2004 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .004 .009 .013 .028 .038 .030
Net Realized and Unrealized Gain (Loss) on Investments -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .004 .009 .013 .028 .038 .030
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.004) (.009) (.013) (.028) (.038) (.030)
Distributions from Realized Capital Gains -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total Distributions (.004) (.009) (.013) (.028) (.038) (.030)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
============================================================================================================================
TOTAL RETURN 0.43% 0.89% 1.32% 2.79% 3.87% 3.01%
============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $2,104 $1,772 $1,627 $1,359 $1,154 $798
Ratio of Total Expenses to Average Net Assets 0.15%* 0.17% 0.17% 0.18% 0.14% 0.17%
Ratio of Net Investment Income to Average Net Assets 0.86%* 0.88% 1.31% 2.72% 3.81% 2.99%
============================================================================================================================
*Annualized.
32
NEW YORK LONG-TERM TAX-EXEMPT FUND INVESTOR SHARES
- -----------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED NOVEMBER 30,
MAY 31, -------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2004 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.57 $11.38 $11.20 $10.83 $10.42 $11.30
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------------------------------------------------------
Net Investment Income .243 .486 .503 .525 .556 .547
Net Realized and Unrealized Gain (Loss)
on Investments (.323) .315 .243 .370 .410 (.789)
- -----------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.080) .801 .746 .895 .966 (.242)
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.243) (.486) (.503) (.525) (.556) (.547)
Distributions from Realized Capital Gains (.027) (.125) (.063) -- -- (.091)
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions (.270) (.611) (.566) (.525) (.556) (.638)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.22 $11.57 $11.38 $11.20 $10.83 $10.42
=============================================================================================================================
TOTAL RETURN -0.74% 7.20% 6.84% 8.37% 9.56% -2.25%
=============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,281 $1,321 $1,340 $1,333 $1,664 $1,530
Ratio of Total Expenses to Average Net Assets 0.15%* 0.17% 0.18% 0.20% 0.20% 0.20%
Ratio of Net Investment Income to Average Net Assets 4.20%* 4.22% 4.46% 4.71% 5.28% 5.02%
Portfolio Turnover Rate 4%* 3% 16% 12% 21% 5%
=============================================================================================================================
*Annualized.
NEW YORK LONG-TERM TAX-EXEMPT FUND ADMIRAL SHARES
- ------------------------------------------------------------------------------------------------------
YEAR ENDED
SIX MONTHS NOVEMBER 30, MAY 14* TO
ENDED ------------------ NOV. 30,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD MAY 31, 2004 2003 2002 2001
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $11.57 $11.38 $11.20 $11.05
- ------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .246 .493 .509 .284
Net Realized and Unrealized Gain (Loss) on Investments (.323) .315 .243 .150
- ------------------------------------------------------------------------------------------------------
Total from Investment Operations (.077) .808 .752 .434
- ------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.246) (.493) (.509) (.284)
Distributions from Realized Capital Gains (.027) (.125) (.063) --
- ------------------------------------------------------------------------------------------------------
Total Distributions (.273) (.618) (.572) (.284)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.22 $11.57 $11.38 $11.20
======================================================================================================
TOTAL RETURN -0.71% 7.26% 6.89% 3.94%
======================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $770 $771 $811 $626
Ratio of Total Expenses to Average Net Assets 0.09%** 0.11% 0.13% 0.15%**
Ratio of Net Investment Income to Average Net Assets 4.26%** 4.28% 4.51% 4.58%**
Portfolio Turnover Rate 4%** 3% 16% 12%
======================================================================================================
*Inception.
**Annualized.
33
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.
34
5.OTHER: Security transactions are accounted for on the date securities are
bought or sold. Costs used to determine realized gains (losses) on the sale of
investment securities are those of the specific securities sold. Premiums and
discounts are amortized and accreted, respectively, to interest income over
the lives of the respective securities.
Each class of shares has equal rights as to assets and earnings, except that
each class separately bears certain class-specific expenses related to
maintenance of shareholder accounts (included in Management and Administrative
expenses) and shareholder reporting. Marketing and distribution expenses are
allocated to each class of shares based on a method approved by the board of
trustees. Income, other non-class-specific expenses, and gains and losses on
investments are allocated to each class of shares based on its relative net
assets.
B. 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, 2004, 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 $304 0.01% 0.30%
Long-Term 307 0.01 0.31
- --------------------------------------------------------------------------------
The funds' trustees and officers are also directors and officers of Vanguard.
C. 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 $733,000 through
November 30, 2003, which are deferred for tax purposes and reduce the amount of
unrealized appreciation on investment securities for tax purposes.
At May 31, 2004, net unrealized appreciation of Long-Term Tax-Exempt Fund
investment securities for tax purposes was $86,005,000, consisting of unrealized
gains of $94,739,000 on securities that had risen in value since their purchase
and $8,734,000 in unrealized losses on securities that had fallen in value since
their purchase.
At May 31, 2004, the aggregate settlement value of open futures contracts
expiring through September 2004 and the related unrealized appreciation
(depreciation) were:
- --------------------------------------------------------------------------------
(000)
---------------------------
AGGREGATE UNREALIZED
NUMBER OF LONG SETTLEMENT APPRECIATION
FUTURES CONTRACTS (SHORT) CONTRACTS VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
10-Year Treasury Note (90) $9,754 ($48)
- --------------------------------------------------------------------------------
Unrealized appreciation (depreciation) on open futures contracts is required to
be treated as realized gain (loss) for tax purposes.
35
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
D. During the six months ended May 31, 2004, the Long-Term Tax-Exempt Fund
purchased $86,975,000 of investment securities and sold $42,567,000 of
investment securities, other than temporary cash investments.
E. Capital share transactions for each class of shares were:
- --------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 2004 NOVEMBER 30, 2003
----------------------- ------------------------
AMOUNT SHARES AMOUNT SHARES
NEW YORK TAX-EXEMPT FUND (000) (000) (000) (000)
- --------------------------------------------------------------------------------------------------
MONEY MARKET
Issued $1,181,566 1,181,566 $1,537,373 1,537,373
Issued in Lieu of Cash Distributions 7,947 7,947 14,439 14,439
Redeemed (858,411) (858,411) (1,406,912) (1,406,912)
--------------------------------------------------
Net Increase (Decrease) 331,102 331,102 144,900 144,900
- --------------------------------------------------------------------------------------------------
LONG-TERM
Investor Shares
Issued $128,654 11,114 $228,826 19,887
Issued in Lieu of Cash Distributions 23,703 2,059 55,471 4,822
Redeemed (150,980) (13,130) (324,414) (28,257)
--------------------------------------------------
Net Increase (Decrease)--Investor Shares 1,377 43 (40,117) (3,548)
--------------------------------------------------
Admiral Shares
Issued 110,480 9,537 161,640 14,077
Issued in Lieu of Cash Distributions 12,569 1,092 29,343 2,550
Redeemed (98,682) (8,583) (245,062) (21,277)
--------------------------------------------------
Net Increase (Decrease)--Admiral Shares 24,367 2,046 (54,079) (4,650)
- --------------------------------------------------------------------------------------------------
36
INVESTING IS FAST, EASY, AND SECURE ON VANGUARD.COM
If you're like many Vanguard investors, you believe in planning and taking
control of your own investments. VANGUARD.COM was built for you--and it keeps
getting better.
RESEARCH AND PLAN YOUR INVESTMENTS WITH CONFIDENCE
Use our PLANNING & ADVICE and RESEARCH FUNDS & STOCKS sections to:
* Determine what asset allocation might best suit your needs--by taking our
Investor Questionnaire.
* Find out how much to save for retirement and your children's college
education-- by using our planning tools.
* Learn how to achieve your goals--by reading our PlainTalk(R) investment
guides.
* Find your next fund--by using the Compare Funds, Compare Costs, and Narrow
Your Fund Choices tools.
* Look up fund price, performance history, and distribution information--in a
snap.
INVEST AND MANAGE ACCOUNTS WITH EASE
Log on to VANGUARD.COM to:
* See what you own (at Vanguard and elsewhere) and how your investments are
doing.
* Elect to receive online statements, fund reports (like this one),
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* Analyze your portfolio's holdings and performance.
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* Sign up to receive electronic newsletters from Vanguard informing you of news
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Find out what Vanguard.com can do for you. Log on today!
37
CAPITALIZE ON YOUR IRA
Are you taking full advantage of your individual retirement account? You really
should be. These tax-deferred accounts are powerful options for retirement
savers.
Here's how you can exploit your IRA--and improve your chances of having the
retirement of your dreams.
CONTRIBUTE THE MAXIMUM AMOUNT EACH YEAR
It may be an obvious point, but if you invest as much in your IRA as the law
allows--currently $3,000 per tax year if you are under age 50 and $3,500 if you
are age 50 or over--you will increase the odds of meeting your retirement goals.
"Max out" every year you can.
MAKE IT AUTOMATIC
Put your IRA on autopilot by taking advantage of Vanguard's Automatic Investment
Plan. Your IRA contributions will be deducted from your bank account on a
schedule of your choosing, making retirement investing a healthy habit.
CONSIDER COST
The owners of low-cost investments keep a larger portion of their gross returns
than the owners of high-cost investments. Over the long term, avoiding costlier
mutual funds and brokerage commissions could significantly boost your retirement
savings. Our low costs are one reason a Vanguard IRA(R) is such a smart choice.
REQUEST A DIRECT ROLLOVER WHEN YOU CHANGE JOBS
Don't spend your retirement assets before you've retired. When you change jobs,
roll your 401(k) or other employer-sponsored retirement plan assets directly
into your IRA.
If you have questions about your IRA, want to transfer an IRA from another
institution to Vanguard, or need help with any other IRA transaction, call our
Retirement Resource Center at 1-800-205-6189 or visit VANGUARD.COM. You can open
or fund your IRA on our website and have a confirmation in your hand within
minutes.
THE VANGUARD(R)FAMILY OF FUNDS
STOCK FUNDS
500 Index Fund
Calvert Social Index Fund
Capital Opportunity Fund
Capital Value Fund
Convertible Securities Fund
Developed Markets Index Fund
Dividend Growth Fund
Emerging Markets Stock Index Fund
Energy Fund
Equity Income Fund
European Stock Index Fund
Explorer(TM) Fund
Extended Market Index Fund
Global Equity Fund
Growth and Income Fund
Growth Equity Fund
Growth Index Fund
Health Care Fund
Institutional Developed Markets Index Fund
Institutional Index Fund
Institutional Total Stock Market Index Fund
International Explorer(TM) Fund
International Growth Fund
International Value Fund
Large-Cap Index Fund
Mid-Cap Growth Fund
Mid-Cap Index Fund
Morgan(TM) Growth Fund
Pacific Stock Index Fund
Precious Metals and Mining Fund
PRIMECAP Fund
REIT Index Fund
Selected Value Fund
Small-Cap Growth Index Fund
Small-Cap Index Fund
Small-Cap Value Index Fund
Strategic Equity Fund
Tax-Managed Capital Appreciation Fund
Tax-Managed Growth and Income Fund
Tax-Managed International Fund
Tax-Managed Small-Cap Fund
Total International Stock Index Fund
Total Stock Market Index Fund
U.S. Growth Fund
U.S. Sector Index Funds:
Consumer Discretionary Index
Consumer Staples Index
Financials Index
Health Care Index
Information Technology Index
Materials Index
Utilities Index
U.S. Value Fund
Value Index Fund
Windsor(TM) Fund
Windsor(TM) II Fund
BALANCED FUNDS
Asset Allocation Fund
Balanced Index Fund
LifeStrategy(R) Conservative Growth Fund
LifeStrategy(R) Growth Fund
LifeStrategy(R) Income Fund
LifeStrategy(R) Moderate Growth Fund
STAR(R) Fund
Target Retirement Funds:
Retirement Income
Retirement 2005
Retirement 2015
Retirement 2025
Retirement 2035
Retirement 2045
Tax-Managed Balanced Fund
Wellesley(R) Income Fund
Wellington(TM) Fund
BOND FUNDS
GNMA Fund
High-Yield Corporate Fund
High-Yield Tax-Exempt Fund
Inflation-Protected Securities Fund
Institutional Total Bond Market Index Fund
Insured Long-Term Tax-Exempt Fund
Intermediate-Term Bond Index Fund
Intermediate-Term Corporate Fund
Intermediate-Term Tax-Exempt Fund
Intermediate-Term Treasury Fund
Limited-Term Tax-Exempt Fund
Long-Term Bond Index Fund
Long-Term Corporate Fund
Long-Term Tax-Exempt Fund
Long-Term Treasury Fund
Short-Term Bond Index Fund
Short-Term Corporate Fund
Short-Term Federal Fund
Short-Term Tax-Exempt Fund
Short-Term Treasury Fund
State Tax-Exempt Bond Funds
(California, Florida, Massachusetts,
New Jersey, New York, Ohio,
Pennsylvania)
Total Bond Market Index Fund
MONEY MARKET FUNDS
Admiral(TM) Treasury Money Market Fund
Federal Money Market Fund
Prime Money Market Fund
State Tax-Exempt Money Market Funds
(California, New Jersey,
New York, Ohio, Pennsylvania)
Tax-Exempt Money Market Fund
Treasury Money Market Fund
VARIABLE ANNUITY
Balanced Portfolio
Capital Growth Portfolio
Diversified Value Portfolio
Equity Income Portfolio
Equity Index Portfolio
Growth Portfolio
High Yield Bond Portfolio
International Portfolio
Mid-Cap Index Portfolio
Money Market Portfolio
REIT Index Portfolio
Short-Term Corporate Portfolio
Small Company Growth Portfolio
Total Bond Market Index Portfolio
Total Stock Market Index Portfolio
For more information, visit www.vanguard.com, or call 800-662-7447 for Vanguard
funds and 800-522-5555 for Vanguard annuity products, to obtain fund and annuity
contract prospectuses. Investment objectives, risks, charges, expenses, and
other important information are contained in the prospectuses; consider and read
them carefully before investing.
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 sizable
personal 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
- --------------------------------------------------------------------------------
POSITION(S) HELD WITH
NAME FUND (NUMBER OF
(YEAR OF BIRTH) VANGUARD FUNDS
TRUSTEE/OFFICER OVERSEEN BY
SINCE TRUSTEE/OFFICER) PRINCIPAL OCCUPATION(S) DURING THE PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------
JOHN J. BRENNAN* Chairman of the Chairman of the Board, Chief Executive Officer, and Director/Trustee of
(1954) Board, Chief The Vanguard Group, Inc., and of each of the investment companies
May 1987 Executive Officer, served by The Vanguard Group.
and Trustee
(129)
- ------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
CHARLES D. ELLIS Trustee The Partners of `63 (pro bono ventures in education); Senior Advisor
(1937) (129) to Greenwich Associates (international business strategy consulting);
January 2001 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 Trustee Chairman and Chief Executive Officer (since October 1999), Vice
(1945) (129) Chairman (January-September 1999), and Vice President (prior to
December 2002 September 1999) of Rohm and Haas Co. (chemicals); Director of
Technitrol, Inc. (electronic components), and Agere Systems (commu-
nications components); Board Member of the American Chemistry
Council; Trustee of Drexel University.
- ------------------------------------------------------------------------------------------------------------------
JOANN HEFFERNAN Trustee Vice President, Chief Information Officer, and Member of the
HEISEN (129) Executive Committee of Johnson & Johnson (pharmaceuticals/
(1950) consumer products); Director of the University Medical Center at
July 1998 Princeton and Women's Research and Education Institute.
- ------------------------------------------------------------------------------------------------------------------
BURTON G. MALKIEL Trustee Chemical Bank Chairman's Professor of Economics, Princeton
(1932) (127) University; Director of Vanguard Investment Series plc (Irish invest-
May 1977 ment fund) (since November 2001), Vanguard Group (Ireland)
Limited (Irish investment management firm) (since November 2001),
Prudential Insurance Co. of America, BKF Capital (investment
management), The Jeffrey Co. (holding company), and NeuVis, Inc.
(software company).
- ------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the funds. Among board members' responsibilities are selecting investment
advisors for the funds; monitoring fund operations, performance, and costs;
reviewing contracts; nominating and selecting new trustees/directors; and
electing Vanguard officers.
Each trustee serves a fund until its termination; or until the trustee's
retirement, resignation, or death; or otherwise as specified in the fund's
organizational documents. Any trustee may be removed at a shareholders' meeting
by a vote representing two-thirds of the net asset value of all shares of the
fund together with shares of other Vanguard funds organized within the same
trust. The table on these two pages shows information for each trustee and
executive officer of the fund. The mailing address of the trustees and officers
is P.O. Box 876, Valley Forge, PA 19482.
- --------------------------------------------------------------------------------
POSITION(S) HELD WITH
NAME FUND (NUMBER OF
(YEAR OF BIRTH) VANGUARD FUNDS
TRUSTEE/OFFICER OVERSEEN BY
SINCE TRUSTEE/OFFICER) PRINCIPAL OCCUPATION(S) DURING THE PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------
ALFRED M. RANKIN, JR. Trustee Chairman, President, Chief Executive Officer, and Director of NACCO
(1941) (129) Industries, Inc. (forklift trucks/housewares/lignite); Director of
January 1993 Goodrich Corporation (industrial products/aircraft systems and
services); Director of Standard Products Company (supplier for
the automotive industry) until 1998.
- ------------------------------------------------------------------------------------------------------------------
J. LAWRENCE WILSON Trustee Retired Chairman and Chief Executive Officer of Rohm and Haas Co.
(1936) (129) (chemicals); Director of Cummins Inc. (diesel engines), MeadWestvaco
April 1985 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.;
(1951) (129) Secretary of The Vanguard Group and of each of the investment
June 2001 companies served by The Vanguard Group.
- ------------------------------------------------------------------------------------------------------------------
THOMAS J. HIGGINS Treasurer Principal of The Vanguard Group, Inc.; Treasurer of each of the
(1957) (129) investment companies served by The Vanguard Group.
July 1998
- ------------------------------------------------------------------------------------------------------------------
*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. MICHAEL S. MILLER, Planning and Development.
JAMES H. GATELY, Investment Programs and Services. RALPH K. PACKARD, Finance.
KATHLEEN C. GUBANICH, Human Resources. GEORGE U. SAUTER, Chief Investment Officer.
F. WILLIAM MCNABB, III, Client Relationship Group.
- ------------------------------------------------------------------------------------------------------------------
JOHN C. BOGLE, Founder; Chairman and Chief Executive Officer, 1974-1996.
- ------------------------------------------------------------------------------------------------------------------
[SHIP]
[THE VANGUARD GROUP(R) LOGO]
Post Office Box 2600
Valley Forge, PA 19482-2600
Vanguard, The Vanguard Group, Vanguard.com, Vanguard IRA, Admiral, Explorer,
LifeStrategy, Morgan, PlainTalk, STAR, Wellesley, Wellington, Windsor, and the
ship logo are trademarks of The Vanguard Group, Inc.
500 is a trademark of The McGraw- Hill Companies, Inc., and has been licensed
for use by The Vanguard Group, Inc. Vanguard mutual funds are not sponsored,
endorsed, sold, or promoted by Standard & Poor's, and Standard & Poor's makes no
representation regarding the advisability of investing in the funds.
Calvert Social Index is a trademark of Calvert Group, Ltd., and has been
licensed for use by The Vanguard Group, Inc. Vanguard Calvert Social Index Fund
is not sponsored, endorsed, sold, or promoted by Calvert Group, Ltd., and
Calvert Group, Ltd., makes no representation regarding the advisability of
investing in the fund.
All other marks are the exclusive property of their respective owners.
ABOUT OUR COVER
The photographs 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. Prospectuses may also be viewed online.
You can obtain a free copy of Vanguard's proxy voting guidelines by visiting our
website, www.vanguard.com, and searching for "proxy voting guidelines," or by
calling 1-800-662-2739. They are also available from the SEC's website,
www.sec.gov.
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) 2004 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing
Corporation, Distributor.
Q762 072004
Item 2: Not applicable.
Item 3: Not applicable.
Item 4: Not applicable.
Item 5: Not applicable.
Item 6: Not applicable.
Item 7: Not applicable.
Item 8: Not applicable.
Item 9: Not applicable.
Item 10: 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 11: Exhibits.
(a) Certifications.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD NEW YORK TAX-FREE FUNDS
BY: (signature)
----------------------------------------
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER
Date: July 23, 2004
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 23, 2004
VANGUARD NEW YORK TAX-FREE FUNDS
BY: (signature)
----------------------------------------
(HEIDI STAM)
THOMAS J. HIGGINS*
TREASURER
Date: July 23, 2004
*By Power of Attorney. See File Number 2-57689, filed on December 26, 2002.
Incorporated by Reference.