N-Q 1 c46074_n-q.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811- 6118

Tax Free Reserves Portfolio

(Exact name of registrant as specified in charter)

125 Broad Street, New York, NY 10004
(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.
Legg Mason & Co., LLC
300 First Stamford Place, 4th Floor
Stamford, CT 06902
(Name and address of agent for service)

Registrant's telephone number, including area code: 1-800-451-2010

Date of fiscal year end: August 31
Date of reporting period: November 30, 2006

ITEM 1.           SCHEDULE OF INVESTMENTS

TAX FREE RESERVES PORTFOLIO

FORM N-Q
NOVEMBER 30, 2006

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) 
 
November 30, 2006 

FACE 
             
AMOUNT 
           RATING‡            
SECURITY 
   
VALUE 
SHORT-TERM INVESTMENTS — 101.4% 
     
Alaska — 0.4% 
     
$      5,820,000 
  A-1+   
Alaska State Housing Finance Corp., Certificates, Series 1999-BB, LIQ-Bank 
 
             of America, 3.630%, 12/7/06 (a)    $  5,820,000 
Arizona — 2.0% 
     
2,125,000 
  A-1+    Arizona Health Facilities Authority Revenue, Refunding Banner Health,       
             Series C, FGIC-Insured, 3.750%, 12/20/06 (a)      2,125,000 
3,000,000 
  NR    Glendale, AZ, IDA, 3.580% due 1/11/07      3,000,000 
8,700,000 
  A-1+    McAllister Academic Village Revenue, Arizona State University Project,       
     
       Series A, AMBAC-Insured, SPA-State Street Bank & Trust, 3.480%, 
 
             12/6/06 (a)      8,700,000 
15,905,000 
  A-1    Pine Ridge Village/Campus Heights LLC Arizona Revenue, Northern Arizona   
             University Projects, FGIC-Insured, 3.500%, 12/6/06 (a)      15,905,000 
      Total Arizona      29,730,000 
Arkansas — 0.3% 
     
5,100,000 
  A-1    Osceola, AR Solid Waste District Revenue, Plum Point Energy Associates   
             LLC Project, LOC-Credit Suisse, 3.520%, 12/7/06 (a)      5,100,000 
California — 1.5% 
     
1,000,000 
  A-1+    California HFA Revenue, Series Q, LOC-Bank of Nova ScotiaTrust Co.,       
             3.560%, 12/6/06 (a)(b)      1,000,000 
9,000,000 
  A-1+    California State Department Water Reservoir Power Supply Revenue, Putters,   
             Series 344, AMBAC-Insured, 3.480%, 12/7/06 (a)      9,000,000 
1,100,000 
  A-1+    Los Angeles, CA, Water & Power Revenue, Power System, Subordinated       
             Series A-8, 3.340%, 12/7/06 (a)      1,100,000 
4,100,000 
  VMIG1(c)    Oakland, CA, GO, Series 756, FGIC-Insured, 3.480%, 12/7/06 (a)      4,100,000 
6,800,000 
  VMIG1(c)    San Francisco City & County Airports Commission, Putters Series 1569,       
             LOC-JPMorgan Chase, 3.480%, 12/7/06 (a)      6,800,000 
      Total California      22,000,000 
Colorado — 1.8% 
     
      Colorado Educational & Cultural Facilities Authority:       
1,140,000 
  VMIG1(c)   
       Akiba Academy of Dallas, LOC-Bank of America, 3.650%, 12/1/06 (a) 
1,140,000 
2,500,000 
  VMIG1(c)   
       Daughters of Israel Inc., LOC-Bank of America, 3.650%, 12/1/06 (a) 
2,500,000 
2,200,000 
  VMIG1(c)   
       JFMC Facilities Corp., LOC-Bank of America, 3.650%, 12/1/06 (a) 
2,200,000 
500,000 
  VMIG1(c)   
       Milwaukee Jewish Federation Inc., LOC-U.S. Bank NA, 3.650%, 12/1/06 
 
                   (a)      500,000 
             National Jewish Federal Program:       
100,000 
  VMIG1(c)   
               Series A-8, LOC-Bank of America, 3.650%, 12/1/06 (a) 
    100,000 
130,000 
  VMIG1(c)   
               Series B-2, LOC-National City Bank, 3.650%, 12/1/06 (a) 
    130,000 
      Colorado Educational & Cultural Facilities Authority Revenue:       
             National Jewish Federation Bond Program:       
2,455,000 
  VMIG1(c)   
               Series A-1, LOC-Bank of America, 3.650%, 12/1/06 (a) 
    2,455,000 
400,000 
  VMIG1(c)   
               Series A-7, LOC-Bank of America, 3.650%, 12/1/06 (a) 
    400,000 
             Refunding:       
12,100,000 
  VMIG1(c)                   National Jewish Federal Building, Series D-1, LOC-JPMorgan       
                           Chase, 3.650%, 12/1/06 (a)      12,100,000 
4,750,000 
  VMIG1(c)   
National Jewish Federation Bond Program, Series C-3, LOC-U.S. 
 
                           Bank NA, 3.650%, 12/1/06 (a)      4,750,000 
      Total Colorado      26,275,000 
Connecticut — 0.4% 
     
5,800,000 
  NR    New Haven, CT, GO, 3.500%, 12/4/06 (a)      5,800,000 
Delaware — 0.1% 
     
1,005,000 
  A-1+    Kent County, DE, Delaware State University Student Housing, Series B,       
             LOC-Wachovia Bank NA, 3.480%, 12/7/06 (a)      1,005,000 

See Notes to Schedule of Investments.

1

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 

FACE           
 
AMOUNT 
           RATING‡            
SECURITY 
 
VALUE 
District of Columbia — 4.3%   
 
$      2,950,000    VMIG1(c)   
District of Columbia Enterprise Zone Revenue, Crowell and Moring LLP 
 
 
               Project, LOC-Wachovia Bank, 3.530%, 12/6/06 (a)   
$ 
2,950,000 
        District of Columbia Revenue:   
 
265,000    A-1+   
       American Psychological Association, LOC-Bank of America, 3.550%, 
 
                     12/7/06 (a)   
265,000 
1,600,000    VMIG1(c)           National Public Radio Inc., LOC-SunTrust Bank, 3.490%, 12/6/06 (a)  1,600,000 
10,000,000    VMIG1(c)           Sidwell Friends School, LOC-SunTrust Bank, 3.490%, 12/6/06 (a)   
10,000,000 
9,000,000    A-1+   
District of Columbia, GO, Series D-3, SPA-Depfa Bank PLC, FSA-Insured, 
 
               3.510%, 12/6/06 (a)   
9,000,000 
        Metropolitan Washington Airports Authority:   
 
12,000,000    NR           3.700% due 12/13/06   
12,000,000 
15,400,000    NR           Series 2005-A, 3.600% due 2/8/07   
15,400,000 
12,000,000    NR           Series 2005-C, 3.580% due 12/11/06   
12,000,000 
        Total District of Columbia   
63,215,000 
Florida — 3.4% 
 
 
8,000,000    A-1+   
Collier County, FL, IDA, IDR, Avenue Maria Utility Co. Project, LOC- 
 
 
               SunTrust Bank, 3.540%, 12/6/06 (a)   
8,000,000 
450,000    VMIG1(c)   
Florida Housing Finance Corp. Multi-Family Revenue, Refunding Mortgage 
 
               Victoria Park, Series J-1, LIQ-FNMA, 3.480%, 12/7/06 (a)   
450,000 
15,000,000    A-1+   
Highlands County, FL, Health Facilities Authority Revenue, Refunding, 
 
 
               Hospital Adventist Health, Series A, FSA-Insured, SPA-Dexia Credit   
               Local, 3.480%, 12/7/06 (a)   
15,000,000 
7,000,000    VMIG1(c)   
Hillsborough County, FL, School Board COP, Series E, MBIA-Insured, SPA- 
 
               Bank of America, 3.630%, 12/7/06 (a)   
7,000,000 
3,300,000    VMIG1(c)    Jacksonville, FL, HFA, MFH, Revenue, Refunding, St. Augustine   
 
               Apartments, LIQ-FNMA, 3.490%, 12/6/06 (a)   
3,300,000 
10,500,000    VMIG1(c)   
Lee County, FL, IDA, EFA, Canterbury School Inc. Project, LOC-SunTrust 
 
               Bank, 3.490%, 12/6/06 (a)   
10,500,000 
5,150,000    AAA   
Miami Dade County, FL, School Board, Series A, AMBAC-Insured, 5.000% 
 
               due 4/1/07   
5,174,411 
        Total Florida   
49,424,411 
Georgia — 4.7% 
 
2,500,000    A-1+    Atlanta, GA, Airport Revenue, Refunding, General Series, MBIA-Insured,   
               SPA-Landesbank Baden-Wurttemberg, 3.480%, 12/7/06 (a)   
2,500,000 
7,500,000    VMIG1(c)   
Coweta County, GA, Development Authority Revenue, Metro Atlanta YMCA 
 
               Project, LOC-SunTrust Bank, 3.490%, 12/6/06 (a)   
7,500,000 
4,900,000    VMIG1(c)   
De Kalb County, GA, Development Authority, IDR, The Paideia School Inc. 
 
               Project, LOC-SunTrust Bank, 3.490%, 12/6/06 (a)   
4,900,000 
6,600,000    VMIG1(c)   
Floyd County, GA, Development Authority Revenue, Berry College Project, 
 
               LOC-SunTrust Bank, 3.490%, 12/6/06 (a)   
6,600,000 
        Fulton County, GA, Development Authority Revenue:   
 
18,000,000    A-1+           Piedmont Healthcare Inc., SPA-SunTrust Bank, 3.490%, 12/6/06 (a)   
18,000,000 
18,000,000    VMIG1(c)           Shepherd Center Inc. Project, LOC-SunTrust Bank, 3.490%, 12/6/06 (a)  18,000,000 
9,000,000    VMIG1(c)   
       Westminster Schools Inc. Project, LOC-SunTrust Bank, 3.490%, 12/6/06 
 
                     (a)   
9,000,000 
2,720,000    VMIG1(c)   
Liberty County, GA, Industrial Authority, Refunding, Millennium Realty 
 
 
               Project, LOC-SunTrust Bank, 3.590%, 12/6/06 (a)(b)   
2,720,000 
        Total Georgia   
69,220,000 
Illinois — 11.5% 
 
 
2,680,000    VMIG1(c)   
Aurora, IL, Keson Inds Inc. Project, LOC-Harris National Association, 
 
 
               3.630%, 12/7/06 (a)   
2,680,000 
        Chicago, IL:   
 
4,460,000    A-1+           John Hofuelster & Son Inc., 3.630%, 12/7/06 (a)   
4,460,000 

See Notes to Schedule of Investments.

2

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 

FACE 
         
 
AMOUNT 
           RATING‡            
SECURITY 
 
VALUE 
Illinois — 11.5% (continued) 
 
 
$      2,620,000 
  A-1+           Renaissance Center LP, Series A, LOC-Harris National Association,   
 
                   3.630%, 12/7/06 (a)   
$ 
2,620,000 
1,300,000 
  A-1+           Renaissance Center LP, Series B, LOC-Harris National Association,   
 
                   3.630%, 12/7/06 (a)   
1,300,000 
             GO:   
 
29,996,000 
  VMIG1(c)                   Certificates, Series ZC-1, FGIC-Insured, 3.730%, 12/7/06 (a)   
29,996,000 
5,600,000 
  A-1+   
               Series B, FGIC-Insured, SPA-Landesbank Baden-Wurttemberg, 
 
 
                           3.490%, 12/7/06 (a)   
5,600,000 
34,320,000 
  A-1+   
       Multifamily Housing Revenue, Central Station Project, Series A, LIQ 
 
                   FAC-Fannie Mae, 3.540%, 12/7/06 (a)   
34,320,000 
1,330,000 
  F1+(d)           O'Hare International Airport Revenue, PT-98, 3.550%, 12/7/06 (a)(b)  1,330,000 
3,000,000 
  NR           Park District, Corp. Purpose TAN, 4.500% due 3/15/07   
3,006,456 
9,360,000 
  A-1   
Du Page County, IL, Revenue, Benet Academy Capital Building Project, 
 
 
             LOC-LaSalle Bank NA, 3.500%, 12/7/06 (a)   
9,360,000 
4,130,000 
  A-1+   
Elmhurst, IL, Joint Community Accured Health Center, 3.500% due 12/7/06 
4,130,000 
3,375,000 
  A-1+    Fulton, IL, Drives-Inc., 3.630%, 12/7/06 (a)   
3,375,000 
10,500,000 
  VMIG1(c)   
Grundy Kendall & Will Counties, IL, Community High School District 111, 
 
             GO, Series B, AMBAC-Insured, SPA-JPMorgan Chase, 3.500%, 12/6/06   
             (a)   
10,500,000 
2,000,000 
  A-1+   
Illinois Development Finance Authority Revenue, Residential Rental, LIQ- 
 
             FHLMC, 3.720%, 12/1/06 (a)   
2,000,000 
      Illinois Finance Authority:   
 
7,300,000 
  VMIG1(c)           Alexian Brothers Health Systems C, FSA-Insured, SPA-Harris Bank,   
 
                   3.450%, 12/7/06 (a)   
7,300,000 
8,000,000 
  A-1           Saint Xavier University Project, LOC-Lasalle Bank N.A., 3.500%,   
 
                   12/7/06 (a)   
8,000,000 
      Illinois Finance Authority Revenue:   
 
4,125,000 
  VMIG1(c)           GO, Latin School Project, Series B, LOC-JPMorgan Chase, 3.500%,   
 
                   12/7/06 (a)   
4,125,000 
4,305,000 
  A-1           Resurrection Health, Series C, LOC-Lasalle Bank N.A., 3.460%, 12/7/06   
                   (a)   
4,305,000 
7,625,000 
  A-1   
Illinois Health Facilities Authority, Swedish Covenant Hospital, Series B, 
 
 
             LOC-LaSalle Bank, 3.460%, 12/6/06 (a)   
7,625,000 
1,000,000 
  A-1+    Illinois Housing Development Authority Revenue, Danbury Court Apartment-   
             Phase II-B, LOC-Federal Home Loan Bank, 3.550%, 12/7/06 (a)   
1,000,000 
10,250,000 
  A-1    Illinois State, GO, Series 534, FGIC-Insured, 3.520%, 12/7/06 (a)   
10,250,000 
5,855,000 
  F1+(d)   
Northern Illinois University, GO, P-Floats, PT-2640, FGIC-Insured, Credit 
 
     
       Enhanced by Merrill Lynch Capital Services Inc., 3.520%, 12/7/06 (a) 
5,855,000 
2,495,000 
  VMIG1(c)   
Romeoville, IL Revenue, Refunding, Lewis University, LOC-JPMorgan 
 
 
             Chase, 3.650%, 12/1/06 (a)   
2,495,000 
2,000,000 
  A-1+   
University of Illinois, University Revenue, Refunding, UIC South Campus 
 
             Project, Series A, FGIC-Insured, SPA-Dexia Credit Local, 3.460%,   
 
             12/6/06 (a)   
2,000,000 
1,365,000 
  A-1+   
Village of Arlington Heights, IL, Series 3e, Graphics and Printing Project, 
 
             LOC-Harris National Association, 3.630%, 12/7/06 (a)   
1,365,000 
      Total Illinois   
168,997,456 
Indiana — 2.6% 
 
 
6,000,000 
  A-1+   
Indiana Health Facilities Financing Authority Revenue, Ascension Health, 
 
             Series A-2, 3.620%, 6/1/07 (a)   
6,000,000 
5,000,000 
  A-1+   
Indiana State Finance Authority Environmental Revenue, Refunding, 
 
 
             Improvement Ispat Inland Inc., LOC-Royal Bank of Scotland, 3.530%,   
             12/6/06 (a)   
5,000,000 
21,980,000 
  A-1+    Indianapolis, IN, Local Public Improvement Bond Bank, Waterworks Project,   
     
       Series G-3, MBIA-Insured, SPA-Depfa Bank PLC, 3.500%, 12/7/06 (a) 
21,980,000 

See Notes to Schedule of Investments.

3

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 

FACE 
         
 
AMOUNT 
           RATING‡            
SECURITY 
 
VALUE 
Indiana — 2.6% (continued) 
 
 
$      5,970,000 
  A-1+    Mitchell, IN, School Building Corp., GO, P Floats PT-2727, MBIA-Insured,   
     
       SPA-Merrill Lynch Capital Services Inc., 3.520%, 12/7/06 (a) 
 
$ 
5,970,000 
      Total Indiana   
38,950,000 
Iowa — 1.1% 
 
 
2,500,000 
  A-1+    Iowa Finance Authority, Single Family Mortgage Bonds, 2004 Series B,   
 
             3.570%, 12/7/06 (a)(b)   
2,500,000 
14,000,000 
  SP-1+    Iowa State, GO, 4.250% due 6/29/07   
14,056,980 
      Total Iowa   
16,556,980 
Kansas — 0.3% 
 
 
2,590,000 
  A-1+    Kansas State Department of Transportation Highway Revenue, Refunding,   
     
       Series B-3, SPA-Dexia Credit Local & Westdeutsche Landesbank, 
 
 
             3.500%, 12/7/06 (a)   
2,590,000 
1,495,000 
  A-1+    Kansas State Development Finance Authority Lease Revenue, Kansas   
 
     
       Department of Administration, Series J-2, LIQ-Kansas State Investment, 
 
             3.650%, 12/1/06 (a)   
1,495,000 
      Total Kansas   
4,085,000 
Kentucky — 0.0% 
 
 
100,000 
  A-1+    Kentucky Housing Corp., Housing Revenue, Series G, SPA-Kentucky   
 
             Housing Corp., 3.500%, 12/7/06 (a)   
100,000 
Louisiana — 1.2% 
 
 
3,400,000 
  P-1(c)    Calcasieu Parish, Inc. Louisiana Industrial Development Board Revenue,   
 
     
       Refunding-Hydroserve Westlake, LOC-JPMorgan Chase, 3.580%, 
 
 
             12/6/06 (a)(b)   
3,400,000 
4,100,000 
  A-1+    Calcasieu Parish, LA, Public Trust Authority Solid Waste Disposal Revenue,   
     
       WPT Corp. Project, LOC-Bank of America, 3.580%, 12/6/06 (a) 
 
4,100,000 
10,000,000 
  A-1+    St. Charles Parish, LA, PCR, Shell Oil Co. Norco Project, 3.700%, 12/1/06   
             (a)(b)   
10,000,000 
      Total Louisiana   
17,500,000 
 
Maine — 0.3% 
 
 
2,800,000 
  A-1+    Auburn, ME, Revenue Obligation Securities, Morin Brick Co. Project, LOC-   
             Bank of America, 3.550%, 12/7/06 (a)   
2,800,000 
2,060,000 
  A-1    Maine Health & Higher EFA Revenue, Series B, AMBAC-Insured, SPA-KBC   
             Bank N.V., 3.500%, 12/6/06 (a)   
2,060,000 
      Total Maine   
4,860,000 
Maryland — 2.4% 
 
 
10,000,000 
  NR    Anne Arundel County, MD, BAN, GO, TECP, Series A, SPA-Westdeutsche   
             Landesbank, 3.570% due 2/1/07   
10,000,000 
10,000,000 
  NR    Baltimore County, MD, GO, Public Improvement BAN, Series 95, TECP,   
     
       LIQ-Westdeutsche Landesbank Girozentrale, 3.600% due 1/4/07 
 
10,000,000 
5,710,000 
  VMIG1(c)    Howard County, MD, Multi-Family Revenue, Sherwood Crossing   
 
             Apartments, LIQ-FNMA, 3.480%, 12/7/06 (a)   
5,710,000 
6,000,000 
  VMIG1(c)    Maryland State Health & Higher EFA Revenue, Gilman School, LOC-   
 
             SunTrust Bank, 3.480%, 12/6/06 (a)   
6,000,000 
3,180,000 
  A-1+    Montgomery County, MD, GO, BAN, Series A, 3.750%, 12/1/06 (a)   
3,180,000 
      Total Maryland   
34,890,000 
Massachusetts — 2.8% 
 
 
10,377,906 
  MIG1(c)    Everett, MA, GO, BAN, 4.250% due 2/1/07   
10,391,539 
3,000,000 
  AAA    Massachusetts Municipal Wholesale Electric Co. Power Supply System   
 
     
       Revenue, Series A, MBIA-Insured,, Project 6, 5.000% due 7/1/07 
 
3,020,960 
1,000,000 
  A-1    Massachusetts State DFA, Brooksby Village Inc. Project, LOC-LaSalle Bank,   
             3.470%, 12/7/06 (a)   
1,000,000 
      Massachusetts State HEFA:   
 

See Notes to Schedule of Investments.

4

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 

FACE 
             
AMOUNT 
           RATING‡            
SECURITY 
   
VALUE 
Massachusetts — 2.8% (continued) 
     
$      21,325,000 
  A-1+   
       Partners Healthcare Systems, Series F4, SPA-Bank of America, 3.470%, 
 
                   12/7/06 (a)    $  21,325,000 
1,015,000 
  A-1+           Revenue, Williams College, Series J, 3.500%, 12/7/06 (a)      1,015,000 
4,728,985 
  NR    Milford MA, GO, BAN, 4.500% due 12/18/06      4,731,138 
      Total Massachusetts      41,483,637 
Michigan — 2.0% 
     
      Detroit, MI:       
             City School District GO:       
1,960,000 
  A-1+   
               P Floats PT-3126, FSA-Insured, LIQ-Merrill Lynch Capital Services 
 
                           Inc., 3.520%, 12/7/06 (a)      1,960,000 
1,735,000 
  A-1+                   Series 388, FGIC-Insured, 3.520%, 12/7/06 (a)      1,735,000 
5,000,000 
  A-1+   
       Sewer Disposal, Revenue, Systems Second Lien, Series A, FGIC-Insured, 
 
                   SPA-Depfa Bank PLC, 3.480%, 12/7/06 (a)      5,000,000 
1,000,000 
  A-1+   
Ecorse, MI, Public School District GO, P Floats Pt-2680, FSA/Q-SBLF- 
     
             Insured, Credit Enhanced by Merrill Lynch Capital Services Inc.,       
             3.520%, 12/7/06 (a)      1,000,000 
6,000,000 
  SP-1+    Kalamazoo, MI, GO, TAN, 4.250% due 12/1/06      6,000,000 
6,865,000 
  F1+(d)   
Michigan State Building Authority, P-Floats PT-2807, AMBAC-Insured, 
     
             SPA-Merrill Lynch Capital Services Inc., 3.520%, 12/7/06 (a)      6,865,000 
200,000 
  A-1   
Royal Oak Michigan Hospital Finance Authority Revenue, Refunding, 
     
             William Beaumont, Series U, AMBAC-Insured, SPA-Morgan Stanley,   
             3.600%, 12/1/06 (a)      200,000 
4,150,000 
  A-1+    University of Michigan, Hospital, Series B, 3.470%, 12/7/06 (a)      4,150,000 
1,900,000 
  A-1+   
University of Michigan Revenue, Refunding, Hospital, Series A, 3.570%, 
     
             12/1/06 (a)      1,900,000 
      Total Michigan      28,810,000 
Minnesota — 1.8% 
     
4,805,000 
  A-1+   
Minneapolis City, MN, Health Care System Revenue, Fairview Health 
     
             Services, Series B, AMBAC-Insured, SPA-Royal Bank of Canada,       
             3.480%, 12/6/06 (a)      4,805,000 
16,619,000 
  NR   
Minneapolis St. Paul Metropolitan Airport Commission, MN, TECP, Series 
 
             A, 3.570% due 1/9/07      16,619,000 
5,000,000 
  VMIG1(c)   
Minnetonka, MN, Multifamily Housing Revenue, Refunding-Minnetonka 
     
             Hills Apartments, LIQ-Fannie Mae, 3.500%, 12/7/06 (a)      5,000,000 
      Total Minnesota      26,424,000 
Mississippi — 0.6% 
     
9,400,000 
  A-1+   
Mississippi Development Bank Special Obligation, Wilkinson County 
     
             Correction Facility, Series B, FGIC-Insured, SPA-Royal Bank of Canada,   
             3.480%, 12/7/06 (a)      9,400,000 
Missouri — 0.6% 
     
2,500,000 
  A-1    Kansas City, MO, IDA, MFH Revenue, Clay Terrace Apartments Project,   
             LOC-Lasalle Bank N.A., 3.550%, 12/7/06 (a)      2,500,000 
4,100,000 
  A-1+    Missouri Development Finance Board, Cultural Facilities Revenue, Nelson   
             Gallery Foundation, Series B, MBIA-Insured, SPA-JPMorgan Chase,   
             3.650%, 12/1/06 (a)      4,100,000 
2,100,000 
  A-1+   
University of Missouri, University Revenues, System Facilities, Series A, 
     
             3.650%, 12/1/06 (a)      2,100,000 
      Total Missouri      8,700,000 
Nebraska — 3.3% 
     
1,320,000 
  A-1+   
Nebraska Investment Finance Authority Single Family Housing Revenue, 
     
             Series C, SPA-FHLB, 3.580%, 12/6/06 (a)      1,320,000 
12,000,000 
  NR    Nebraska Public Power District, Series A, 3.480% due 12/8/06      12,000,000 

See Notes to Schedule of Investments.

5

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 

FACE 
         
 
AMOUNT 
           RATING‡            
SECURITY 
 
VALUE 
Nebraska — 3.3% (continued) 
 
 
$      35,000,000 
  NR    Omaha Public Power District, 3.500% due 12/6/06   
$ 
35,000,000 
      Total Nebraska   
48,320,000 
Nevada — 2.5% 
 
 
      Las Vegas Valley Water District:   
 
32,900,000 
  NR           3.480% due 12/5/06   
32,900,000 
3,500,000 
  NR           3.600% due 1/9/07   
3,500,000 
      Total Nevada   
36,400,000 
New Jersey — 2.2% 
 
 
6,005,000 
  F1+(d)   
Moorestown Township, NJ School District, GO, P-Floats PT-2777, MBIA- 
 
     
       Insured, SPA-Merrill Lynch Capital Services Inc., 3.510%, 12/7/06 (a) 
6,005,000 
4,800,000 
  F1+(d)   
New Jersey Health Care Facilities Financing Authority Revenue, Series 961, 
 
             FGIC-Insured, 3.500%, 12/7/06 (a)   
4,800,000 
4,953,500 
  F1+(d)    New Jersey Transportation Trust Fund Authority, Floaters, Series 941D, FSA-   
     
       CR-Insured, Credit Enhanced by Morgan Stanley, 3.500%, 12/7/06 (a) 
4,953,500 
8,923,000 
  NR    Randolph Township, NJ, GO, BAN, 4.250% due 2/23/07   
8,935,984 
7,470,000 
  MIG1(c)    Township of Brick, NJ, GO, BAN, 4.250% due 12/7/06   
7,471,169 
      Total New Jersey   
32,165,653 
New York — 4.3% 
 
 
      Metropolitan Transportation Authority of New York Revenue, TECP, LOC-   
      ABN AMRO:   
 
5,000,000 
  NR           3.570% due 12/1/06   
5,000,000 
20,000,000 
  NR           3.600% due 2/6/07   
20,000,000 
      New York City, NY, TFA:   
 
5,800,000 
  A-1+   
New York City Recovery Project, Series 1, Subordinated Series 1B, LIQ- 
 
                   Societe Generale, 3.480%, 12/6/06 (a)   
5,800,000 
17,400,000 
  A-1+   
New York City Recovery, Series 3, Subordinated Series 3-G, SPA-Bank 
 
                   of New York, 3.520%, 12/6/06 (a)   
17,400,000 
3,875,000 
  A-1+   
       Subordinated Series 2B, LIQ-Dexia Credit Local, 3.480%, 12/6/06 (a) 
3,875,000 
3,400,000 
  A-1+    New York State Dormitory Authority Revenue, Court Facilities Lease, Series   
             B, LOC-Bayerische Landesbank, 3.480%, 12/6/06 (a)   
3,400,000 
7,000,000 
  A-1+    Triborough Bridge & Tunnel Authority, Revenue, Refunding, Subordinated   
             Series B-2, SPA-Dexia Credit Local, 3.420%, 12/7/06 (a)   
7,000,000 
      Total New York   
62,475,000 
North Carolina — 1.9% 
 
      New Hanover County, NC:   
 
6,750,000 
  A-1+           GO, SPA-Wachovia Bank, 3.550%, 12/7/06 (a)   
6,750,000 
9,700,000 
  A-1+   
       Hospital Revenue, Refunding, New Hanover Regional, Series A-1, FSA- 
 
                   Insured, SPA-Wachovia Bank, 3.480%, 12/6/06 (a)   
9,700,000 
5,000,000 
  A-1+    North Carolina Capital Facilities Finance Agency, Duke Energy Carolinas   
             Project B, SPA-Wachovia Bank, 3.510%, 12/7/06 (a)   
5,000,000 
4,000,000 
  A-1+    North Carolina State Education Assistance Authority, Student Loan, Series A-   
     
       1, AMBAC-Insured, SPA-Royal Bank of Canada, 3.520%, 12/7/06 (a) 
4,000,000 
      North Carolina State, GO:   
 
1,118,000 
  A-1+   
       Public Improvement Series D, SPA-Landesbank Hessen-Thuringen, 
 
 
                   3.500%, 12/6/06 (a)   
1,118,000 
1,250,000 
  AAA           Refunding, Series E, 4.000% due 2/1/07   
1,250,783 
      Total North Carolina   
27,818,783 
Ohio — 3.7% 
 
 
830,000 
  A-1+    Cleveland-Cuyahoga County, OH, Port Authority Revenue, 96th Research   
     
       Building Project, LOC-Fifth Third Bank, 3.500%, 12/6/06 (a) 
 
830,000 
      Franklin County, OH, Hospital Revenue, The Childrens Hospital Project:   
 
17,245,000 
  VMIG1(c)   
       AMBAC-Insured, SPA-National City Bank, 3.480%, 12/7/06 (a) 
 
17,245,000 
10,000,000 
  VMIG1(c)           AMBAC-Insured, 3.480%, 12/7/06 (a)   
10,000,000 

See Notes to Schedule of Investments.

6

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 

FACE 
         
 
AMOUNT 
           RATING‡            
SECURITY 
 
VALUE 
Ohio — 3.7% (continued) 
 
 
$      9,000,000 
  A-1+    Ohio State, Air Quality Development Authority Revenue, Akron Steel, Series   
             A, LOC-ABN AMRO Bank NV, 3.610%, 12/6/06 (a)(b)   
$ 
9,000,000 
3,535,000 
  A-1+    Ohio State, GO, Common Schools, Series A, 3.480%, 12/6/06 (a)   
3,535,000 
13,145,000 
  NR    Ohio State University, 3.480% due 12/5/06   
13,145,000 
      Total Ohio   
53,755,000 
Oklahoma — 0.8% 
 
 
12,000,000 
  A-1+    Oklahoma State Student Loan Authority Revenue, Student Loan Bonds &   
             Notes, Series A, MBIA-Insured, 3.530%, 12/6/06 (a)(b)   
12,000,000 
Pennsylvania — 9.7% 
 
 
6,500,000 
  VMIG1(c)    Central York School District, GO, Series A, FSA-Insured, 3.500%, 12/7/06   
             (a)   
6,500,000 
12,215,000 
  F1+(d)    Cumberland County, PA, Municipal Authority Revenue, Refunding, Asbury   
     
       Obligated Group, LOC-KBC Bank N.V., 3.500%, 12/7/06 (a) 
 
12,215,000 
4,725,000 
  A-1+    Delaware County Authority/PA, Dunwoody Village Inc., 3.490%, 12/7/06 (a)  4,725,000 
22,275,000 
  A-1+    Harrisburg, PA, Authority School Revenue, Harrisburg Project, AMBAC-   
     
       Insured, SPA-Westdeutsche Landesbank AG, 3.480%, 12/7/06 (a) 
 
22,275,000 
1,700,000 
  VMIG1(c)    Lancaster County, PA, GO, FSA-Insured, 3.490%, 12/7/06 (a)   
1,700,000 
6,950,000 
  VMIG1(c)    Middletown, PA, Area School District, FSA-Insured, SPA-RBC Centura   
 
             Bank, 3.500%, 12/7/06 (a)   
6,950,000 
5,400,000 
  A-1+    Montgomery County Industrial Development Authority/PA, Philadelphia   
 
             Presbyterian, 3.500%, 12/7/06 (a)   
5,400,000 
4,260,000 
  VMIG1(c)    North Pennsylvania Water Authority, FGIC-Insured, SPA-Depfa Bank PLC,   
             3.500%, 12/7/06 (a)   
4,260,000 
6,745,000 
  A-1+    Pennsylvania State GO, PA 895, FGIC-Insured, 3.510%, 12/7/06 (a)   
6,745,000 
4,995,000 
  A-1+    Pennsylvania State Turnpike Community Oil Franchise Tax Revenue, Series   
             366, MBIA-Insured, 3.520%, 12/7/06 (a)   
4,995,000 
      Philadelphia, PA:   
 
3,400,000 
  VMIG1(c)   
       Authority for Industrial Development Revenue, The Franklin Institute 
 
     
             Project, LOC-Bank of America, 3.500%, 12/7/06 (a) 
 
3,400,000 
10,000,000 
  NR           Gas Works Revenue, 3.540% due 12/8/06   
10,000,000 
             Hospitals & Higher EFA:   
 
3,000,000 
  A-1+                   Hospital Revenue, Children's Hospital Project Series A, SPA-   
 
                           JPMorgan Chase, 3.630%, 12/1/06 (a)   
3,000,000 
10,750,000 
  A-1   
               Revenue, Temple University Health, Series B, LOC-PNC Bank, 
 
 
                           3.500%, 12/7/06 (a)   
10,750,000 
14,500,000 
  A-1+   
               Temple University Health, Series A, LOC-Wachovia Bank, 3.530%, 
 
                           12/7/06 (a)   
14,500,000 
6,230,000 
  VMIG1(c)    Phoenixville, PA, Area School District, GO, FSA-Insured, SPA-Wachovia   
             Bank N.A., 3.500%, 12/7/06 (a)   
6,230,000 
19,200,000 
  A-1+    Saint Mary Hospital Authority Bucks County, Catholic Health, Series C,   
 
             3.500%, 12/6/06 (a)   
19,200,000 
      Total Pennsylvania   
142,845,000 
Puerto Rico — 0.2% 
 
 
3,200,000 
  A-1+    Puerto Rico, Electric Power Authority Revenue, PART, MSTC, Series SGA   
     
       43, MBIA-Insured, SPA-Societe Generale, 3.450%, 12/6/06 (a) 
 
3,200,000 
South Carolina — 2.3% 
 
 
6,700,000 
  A-1+    Oconee County, SC, PCR, Refunding-Facilities Duke, Remarketed 11/03/03,   
             LOC-SunTrust Bank, 3.490%, 12/7/06 (a)   
6,700,000 
9,100,000 
  F1+(d)    South Carolina EFA for Private Non Profit Institutions, Columbia College   
             Project, LOC- Bank of America, 3.550%, 12/7/06 (a)   
9,100,000 
      South Carolina Jobs EDA:   
 
4,875,000 
  A-1+   
       Hospital Facilities Revenue, Sisters Charity Providence Hospital, LOC- 
 
                   Wachovia Bank, 3.480%, 12/7/06 (a)   
4,875,000 
7,000,000 
  VMIG1(c)   
       Revenue, Executive Kitchens Inc. Project, LOC-SunTrust Bank, 3.540%, 
 
                   12/6/06 (a)(b)   
7,000,000 

See Notes to Schedule of Investments.

7

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 

FACE           
 
AMOUNT 
           RATING‡            
SECURITY 
 
VALUE 
South Carolina — 2.3% (continued)   
 
$      3,745,000    A-1+   
South Carolina State Housing Finance & Development Authority Multi- 
 
 
               Family Revenue, Rental Housing, Rocky Creek, LOC-Wachovia Bank,   
               3.530%, 12/7/06 (a)   
$ 
3,745,000 
2,470,000    A-1   
South Carolina Transportation Infrastructure Bank Revenue, Series 316, 
 
 
               AMBAC-Insured, 3.520%, 12/7/06 (a)   
2,470,000 
        Total South Carolina   
33,890,000 
South Dakota — 0.4%   
 
6,210,000    A-1+    South Dakota Economic Development Finance Authority, Hastings Filters   
               Inc., 3.630%, 12/7/06 (a)   
6,210,000 
Tennessee — 4.5% 
 
 
       
Blount County, TN, Public Building Authority, Local Government Public 
 
 
        Improvement:   
 
2,200,000    VMIG1(c)   
       Series A-1B, AMBAC-Insured, LOC-KBC Bank NV, 3.650%, 12/1/06 
 
                     (a)   
2,200,000 
1,470,000    VMIG1(c)           Series A-2F, LOC-KBC Bank NV, 3.650%, 12/1/06 (a)   
1,470,000 
2,660,000    VMIG1(c)           Series A-2H, LOC-KBC Bank NV, 3.650%, 12/1/06 (a)   
2,660,000 
1,600,000    VMIG1(c)           Series A-3A, AMBAC-Insured, SPA-Landesbank Baden-Wurttemberg,   
                     3.650%, 12/1/06 (a)   
1,600,000 
1,800,000    VMIG1(c)   
       Series A-F, AMBAC-Insured, LOC-KBC Bank NV, 3.650%, 12/1/06 (a) 
1,800,000 
2,100,000    VMIG1(c)   
       Series A-2C, AMBAC-Insured, LOC-KBC Bank NV, 3.650%, 12/1/06 
 
                     (a)   
2,100,000 
2,630,000    VMIG1(c)   
Jackson, TN, Energy Authority, Gas System Revenue, LIQ-SunTrust Bank, 
 
               FSA-Insured, 3.480%, 12/6/06 (a)   
2,630,000 
2,000,000    AA    Knoxville, TN, GO, Refunding Series B, 5.000% due 5/1/07   
2,012,114 
13,830,000    A-1+   
Memphis, TN, Electric Systems Revenue, Series 378, MBIA-Insured, LIQ- 
 
               JPMorgan Chase, 3.520%, 12/7/06 (a)   
13,830,000 
        Metropolitan Government of Nashville & Davidson County, TN:   
 
4,900,000    A-1+           HEFA, Vanderbilt University, Series A-1, 3.450%, 12/7/06 (a)   
4,900,000 
7,900,000    NR           TECP, Vanderbilt University, Series 4A, 3.500% due 12/5/06   
7,900,000 
4,250,000    VMIG1(c)    Morristown, TN, Industrial Development Board Revenue, Industrial   
 
       
       Automotive Products, LOC-Landesbank Baden, 3.590%, 12/6/06 (a)(b) 
4,250,000 
        Sevier County, TN, Public Building Authority, Local Government Public   
        Improvement:   
 
2,900,000    A-1+           Series 6-A1, SPA-Depfa Bank PLC, 3.640%, 12/1/06 (a)   
2,900,000 
2,000,000    VMIG1(c)           Series VI D-3, AMBAC-Insured, SPA-Depfa Bank PLC, 3.650%,   
 
                     12/1/06 (a)   
2,000,000 
7,000,000    VMIG1(c)   
Sumner County, TN, GO, Jail Capital Outlay Extension Notes, LOC-SunTrust 
 
               Bank, 3.480%, 12/6/06 (a)   
7,000,000 
7,230,000    VMIG1(c)   
Tusculum, TN, Health, Educational & Housing Facilities Board Revenue, 
 
 
               Tusculum College Project, LOC-SunTrust Bank, 3.490%, 12/6/06 (a)  7,230,000 
        Total Tennessee   
66,482,114 
Texas — 8.1% 
 
 
8,625,000    A-1+   
Austin, TX, Water & Wastewater System Revenue, FSA-Insured, SPA- 
 
 
               Landesbank Baden-Wurttemberg, 3.480%, 12/7/06 (a)   
8,625,000 
6,250,000    VMIG1(c)   
Brazos River Authority Texas PCR, Refunding TXU-A-Remarketed 1/3/05, 
 
               LOC-Wachovia Bank, 3.550%, 12/6/06 (a)(b)   
6,250,000 
        Dallas, TX, Area Rapid Transit:   
 
5,000,000    NR           3.570% due 1/5/07   
5,000,000 
10,000,000    NR           Senior Subordinated, Series 2001, TECP, LIQ-Landesbank Baden-   
 
                     Wurttemberg, 3.650% due 2/20/07   
10,000,000 
2,265,000    F1+(d)   
Garland, TX Electric System Revenue, P Floats Pt-2677, FSA-Insured, LIQ- 
 
               Merrill Lynch Capital Services Inc., 3.520%, 12/7/06 (a)   
2,265,000 
900,000    A-1+   
Harris County, TX, Health Facilities Development Corp. Revenue, Refunding, 
 
               Methodist Hospital Systems, Series A, 3.650%, 12/1/06 (a)   
900,000 
        Houston, TX:   
 

See Notes to Schedule of Investments.

8

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 

FACE           
 
AMOUNT 
           RATING‡            
SECURITY 
 
VALUE 
Texas — 8.1% (continued)   
 
$      3,400,000    NR   
       Higher Educational Finance Corp., Rice University TECP, Series A, 
 
 
                     3.500% due 12/1/06   
$ 
3,400,000 
4,000,000    NR           TECP, Series A, 3.530% due 12/8/06   
4,000,000 
5,560,000    F1+(d)    McKinney, TX GO, P-Floats PT-2722, 3.520%, 12/7/06 (a)   
5,560,000 
15,700,000    A-1+    North Texas Throughway Authority Dallas North Throughway System   
 
               Revenue, Series B, FSA-Insured, 3.500%, 12/6/06 (a)   
15,700,000 
10,000,000    A-1+    North Texas Tollway Authority, Dallas North Thruway Systems Authority,   
       
       Series C, FGIC-Insured, SPA-Depfa Bank PLC, 3.500%, 12/6/06 (a) 
 
10,000,000 
7,285,000    A-1+    Nueces River Authority, Water Supply Revenue, Pt-2821, FSA-Insured, SPA-   
               Merrill Lynch Capital Services Inc., 3.520%, 12/7/06 (a)   
7,285,000 
635,000    A-1+    Tarrant County, TX, Health Facilities Development Corp. Revenue,   
 
       
       Adventist/Sunbelt, Series A, LOC-SunTrust Bank, 3.480%, 12/7/06 (a) 
635,000 
17,110,000    SP-1+    Texas State, TRAN, GO, 4.500% due 8/31/07   
17,227,165 
1,650,000    NR    Texas Technical University Revenue Financing System, TECP, Series A,   
 
               3.620% due 2/1/07   
1,650,000 
20,000,000    A-1+    Weatherford, TX, ISD, Series A, PSF-GTD-Insured, SPA-Depfa Bank PLC,   
               3.820%, 8/1/07 (a)   
20,000,000 
        Total Texas   
118,497,165 
Utah — 3.6% 
 
 
800,000    A-1    Carbon County, UT, PCR, Refunding Pacificorp Projects, AMBAC-Insured,   
               3.620%, 12/1/06 (a)   
800,000 
        Murray City, UT, Hospital Revenue, IHC Health Services Inc.:   
 
11,500,000    A-1+           Series B, 3.460%, 12/7/06 (a)   
11,500,000 
7,700,000    A-1+           Series D, 3.670%, 12/1/06 (a)   
7,700,000 
        Utah Housing Corp. Single Family Mortgage Revenue:   
 
8,340,000    A-1+   
       Series A-1, Class I, SPA-Westdeutsche Landesbank, 3.580%, 12/6/06 (a) 
8,340,000 
4,805,000    A-1+   
       Series D, Class 1, LIQ-Bayerische Landesbank, 3.580%, 12/6/06 (a) 
 
4,805,000 
7,175,000    VMIG1(c)           Series D-1, Class I, SPA-FHLB, 3.580%, 12/6/06 (a)   
7,175,000 
2,400,000    VMIG1(c)           Series F-1, Class I, SPA-FHLB, 3.580%, 12/6/06 (a)(b)   
2,400,000 
1,885,000    A-1+    Utah State Housing Finance Agency, Single Family Mortgage, Series F-2,   
               Class I, SPA-Bayerische Landesbank, 3.580%, 12/6/06 (a)   
1,885,000 
7,685,000    F1+(d)    Utah Water Finance Agency Revenue, P Floats PT-2740, AMBAC-Insured,   
       
       SPA-Merrill Lynch Capital Services Inc., 3.520%, 12/7/06 (a) 
 
7,685,000 
        Total Utah   
52,290,000 
Virginia — 1.4% 
 
 
3,125,000    A-1+    Fairfax County EDA, Smithhsonian Institution, Series A, LOC-Bank of   
 
               America, 3.480%, 12/7/06 (a)   
3,125,000 
2,460,000    VMIG1(c)    Lexington IDA, VMI Development Board Inc. Project, LOC-Wachovia Bank   
               NA, 3.600%, 12/1/06 (a)   
2,460,000 
        Virginia College Building Authority, VA:   
 
7,000,000    VMIG1(c)   
       Various Shenandoah University Projects, 3.630%, 12/1/06 (a) 
 
7,000,000 
4,935,000    A-1   
       Educational Facilities Revenue, Series 134, FSA-Insured, 3.520%, 
 
 
                     12/7/06 (a)   
4,935,000 
3,185,000    A-1+    Virginia Commonwealth University, General Series A, LOC-Wachovia Bank   
               NA, AMBAC- Insured, 3.610%, 12/1/06 (a)   
3,185,000 
        Total Virginia   
20,705,000 
Washington — 2.3% 
 
 
2,600,000    F1+(d)    Everett, WA, GO, LOC-Bank of America, 3.550%, 12/7/06 (a)   
2,600,000 
7,200,000    NR    Everett, WA, Public Facilities, 3.450% due 12/5/06   
7,200,000 
4,835,000    F1+(d)    Pierce County, WA, GO, Series 2840, AMBAC-Insured, SPA-Merrill Lynch   
               Capital Services Inc., 3.520%, 12/7/06 (a)   
4,835,000 
3,300,000    F1+(d)    Washington State GO, Series 438Z, MBIA-Insured, 3.520%, 12/7/06 (a)   
3,300,000 
11,000,000    A-1+    Washington State Health Care Facilities Authority Revenue, Empire Health   
               Services, LOC-U.S. Bank N.A., 3.460%, 12/6/06 (a)   
11,000,000 

See Notes to Schedule of Investments.

9

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 

FACE               
AMOUNT             RATING‡            
SECURITY 
   
VALUE 
Washington — 2.3% (continued)       
$      5,250,000 
  VMIG1(c)    Washington State Housing Finance Community MFH, Vintage Everett       
               Living, Series A, LIQ-Fannie Mae, 3.560%, 12/7/06 (a)(b)   
$
5,250,000 
        Total Washington      34,185,000 
Wisconsin — 2.7% 
     
5,910,000 
  F1+(d)    D C Everest, WI, Area School District, GO, P Floats Pt-2772, FSA-Insured,       
             SPA-Merrill Lynch Capital Services Inc., 3.520%, 12/7/06 (a)      5,910,000 
4,995,000 
  A-1+    Verona, WI, IDR, Latitude Corp. Project, LOC-US Bank N.A., 3.600%,       
             12/7/06 (a)(b)      4,995,000 
3,030,000 
  A-1+    Wisconsin Housing & EDA, Housing Revenue, Series B, FSA-Insured, SPA-       
             FHLB, 3.530%, 12/6/06 (a)      3,030,000 
      Wisconsin State, HEFA Revenue:       
4,000,000 
  A-1+   
       Gundersen Lutheran, Series A, FGIC-Insured, SPA-Dexia Credit Local, 
     
                     3.650%, 12/1/06 (a)      4,000,000 
14,070,000 
  A-1+   
       Gundersen Lutheran, Series B, FGIC-Insured, SPA-Dexia Credit Local, 
     
                   3.670%, 12/1/06 (a)      14,070,000 
7,500,000 
  VMIG1(c)   
       Jewish Home and Care Center, LOC-JPMorgan Chase, 3.500%, 12/7/06 
     
                     (a)      7,500,000 
        Total Wisconsin      39,505,000 
Wyoming — 1.4% 
     
8,000,000    VMIG1(c)    Sweetwater, WY, Memorial Hospital Project, LOC-Keybank NA, 3.520%,       
               12/6/06 (a)      8,000,000 
        Wyoming CDA Housing Revenue:       
4,800,000    A-1+           3.520%, 12/6/06 (a)      4,800,000 
8,000,000    A-1+   
       Series 7, SPA-State Street Bank & Trust Co., 3.510%, 12/1/06 (a) 
    8,000,000 
        Total Wyoming      20,800,000 
        TOTAL INVESTMENTS — 101.4% (Cost — $1,489,890,199#)      1,489,890,199 
        Liabilities in Excess of Other Assets — (1.4)%      (20,285,066)
        TOTAL NET ASSETS — 100.0%   
$
1,469,605,133 

 

‡ All ratings are by Standard & Poor’s Ratings Service, unless otherwise noted.
(a)   Variable rate demand obligations have a demand feature under which the Fund can tender them back to the issuer on no more than 7 days notice. Date shown is the date of the next interest rate change.
(b) Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).
(c) Rating by Moody's Investors Service.
(d) Rating by Fitch Ratings Service.
# Aggregate cost for federal income tax purposes is substantially the same.
   
    Abbreviations used in this schedule: 
AMBAC - Ambac Assurance Corporation
BAN - Bond Anticipation Notes
CDA - Community Development Authority
COP - Certificate of Participation
DFA - Development Finance Agency
EDA - Economic Development Authority
EFA - Educational Facilities Authority
FGIC - Financial Guaranty Insurance Company
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance
GO - General Obligation
GTD - Guaranteed
HEFA - Health & Educational Facilities Authority
HFA - Housing Finance Authority
IDA - Industrial Development Authority

 

See Notes to Schedule of Investments.

10

TAX FREE RESERVES PORTFOLIO

Schedule of Investments (unaudited) (continued) 
 
November 30, 2006 


IDR - Industrial Development Revenue
ISD - Independent School District
LIQ - Liquidity Facility
LOC - Letter of Credit
MBIA - Municipal Bond Investors Assurance Corporation
MFH - Multi-Family Housing
MSTC - Municipal Securities Trust Certificates
PART - Partnership Structure
PCR - Pollution Control Revenue
PSF - Permanent School Fund
Q-SBLF - Qualified School Board Loan Fund
SPA - Standby Bond Purchase Agreement
TAN - Tax Anticipation Notes
TECP - Tax Exempt Commercial Paper
TFA - Transitional Finance Authority
TRAN - Tax and Revenue Anticipation Notes

Summary of Investments by Industry *

Hospitals   
17.9
% 
General Obligation   
17.4
 
Education   
12.3
 
Transportation   
9.7
 
Miscellaneous   
8.4
 
Water and Sewer   
6.7
 
Industrial Development   
5.5
 
Housing: Multi-Family   
4.8
 
Utilities   
4.7
 
Public Facilities   
3.2
 
Housing: Single Family   
3.2
 
Pollution Control   
2.5
 
Finance   
1.8
 
Electric   
0.9
 
Solid Waste   
0.6
 
Municipal   
0.2
 
Tax Allocation   
0.2
 
   
   
100.0
% 

* As a percentage of total investments. Please note that Fund holdings are as of November 30, 2006 and are subject to change.

 

See Notes to Schedule of Investments.

11

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Tax Free Reserves Portfolio (the “Portfolio”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a no-load, diversified, open-end management investment company which was organized as a trust under the laws of the State of New York. The Declaration of Trust permits the Trustees to issue beneficial interests in the Portfolio. Legg Mason Partners Fund Advisor, LLC (the “Manager”) acts as the Investment Manager. At November 30, 2006, all investors in the Portfolio were funds advised by the Manager and or its affiliates.

The following are significant accounting policies consistently followed by the Portfolio and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment Valuation. Money market instruments are valued at amortized cost, in accordance with Rule 2a-7 under the Investment Company Act of 1940 (the “1940 Act”), which approximates market value. This method involves valuing portfolio securities at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. The Portfolio’s use of amortized cost is subject to their compliance with certain conditions as specified under Rule 2a-7 of the 1940 Act.

(b) Security Transactions. Security transactions are accounted for on a trade date basis.

12

ITEM 2. 
          
CONTROLS AND PROCEDURES. 
     
(a)
   The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934
 
(b)
   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.
 
ITEM 3. 
  EXHIBITS. 
 
    Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.   
     

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Tax Free Reserves Portfolio

By:
/s/ R. Jay Gerken 
 
 
 
 
R. Jay Gerken 
 
 
Chief Executive Officer 
 
     
Date:  
January 29, 2007 
 
 
 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:
/s/ R. Jay Gerken 
 
 
 
 
R. Jay Gerken 
 
 
Chief Executive Officer 
 
     
Date:  
January 29, 2007 
 
 
 
     
By:
/s/ Francis M. Guggino 
 
 
 
 
Francis M. Guggino 
 
 
Chief Financial Officer 
 
     
Date:  
January 29, 2007