N-CSRS 1 pataxexemptfinal.htm

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: 811-4571

 

Name of Registrant: Vanguard Pennsylvania Tax-Free Funds

 

Address of Registrant:

 

P.O. Box 2600
Valley Forge, PA 19482

 

Name and address of agent for service:

Heidi Stam, 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, 2008– May 31, 2009

 

Item 1: Reports to Shareholders

 



>

Vanguard Pennsylvania Tax-Exempt Money Market Fund returned 0.40% for the six months ended May 31, 2009, exceeding the average return of its peer group.

>

After a disappointing year, the long-term municipal bond market snapped back with a strong rally during the six-month period.

>

Vanguard Pennsylvania Long-Term Tax-Exempt Fund returned nearly 8% for the half-year, somewhat lower than both the average return of its peer group and the result of its benchmark index.

 

 

Contents

 

Your Fund’s Total Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

 

President’s Letter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

 

Advisor’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

 

Pennsylvania Tax-Exempt Money Market Fund. . . . . . . . . . . .11

 

Pennsylvania Long-Term Tax-Exempt Fund. . . . . . . . . . . . . .27

 

About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . . .49

 

Trustees Approve Advisory Arrangement. . . . . . . . . . . . . . . .51

 

Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..52

 

 

 

 

 

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

See the Glossary for definitions of investment terms used in this report.

Your Fund’s Total Returns

 

Six Months Ended May 31, 2009

 

 

 

 

 

 

 

 

 

Taxable-

 

 

Income

Capital

SEC

Equivalent

Total

 

Returns

Returns

Yield

Yield

Returns

Vanguard Pennsylvania Tax-Exempt Money

 

 

 

 

 

Market Fund

0.40%

0.00%

0.54%

0.86%

0.40%

Average Pennsylvania Tax-Exempt Money

 

 

 

 

 

Market Fund

 

 

 

 

0.19

Average Pennsylvania Tax-Exempt Money Market Fund: Derived from data provided by Lipper Inc.

Vanguard Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

Investor Shares

2.31%

5.59%

3.60%

5.71%

7.90%

Admiral™ Shares

2.36

5.59

3.68

5.84

7.95

Barclays Capital 10 Year Municipal Bond Index

 

 

 

 

8.23

Average Pennsylvania Municipal Debt Fund

 

 

 

 

9.64

 

Average Pennsylvania Municipal Debt Fund: Derived from data provided by Lipper Inc.

 

7-day SEC yield for the Pennsylvania Tax-Exempt Money Market Fund;

30-day SEC yield for the Pennsylvania Long-Term Tax-Exempt Fund.

 

Calculation of the taxable-equivalent yield assumes a typical itemized tax return and is based on the maximum federal tax rate of 35% and the maximum commonwealth of Pennsylvania income tax rate. Local taxes were not considered. Please see the prospectus for a detailed explanation of the calculation.

 

Admiral Shares are a lower-cost class of shares available to many longtime shareholders and to those with significant investments in the fund.

 

Your Fund’s Performance at a Glance

November 30, 2008, Through May 31, 2009

 

 

 

 

Distributions Per Share

 

Starting

Ending

Income

Capital

 

Share Price

Share Price

Dividends

Gains

Vanguard Pennsylvania Tax-Exempt Money

 

 

 

 

Market Fund

$1.00

$1.00

$0.004

$0.000

Vanguard Pennsylvania Long-Term

 

 

 

 

Tax-Exempt Fund

 

 

 

 

Investor Shares

$10.19

$10.76

$0.229

$0.000

Admiral Shares

10.19

10.76

0.233

0.000

 

 

 

1


 

President’s Letter

 

Dear Shareholder:

Short-term and long-term returns in the municipal securities market moved in different directions during the fiscal half-year ended May 31, 2009.

Vanguard Pennsylvania Tax-Exempt Money Market Fund returned 0.40%, among its lowest six-month returns ever, as actions by the Federal Reserve Board dramatically reduced short-term interest rates. The fund maintained a net asset value of $1 per share, as is expected but not guaranteed.

By contrast, long-term municipal bonds bounced back strongly after an unusually tough fiscal 2008. Vanguard Pennsylvania Long-Term Tax-Exempt Fund surged back from its decline in 2008, returning 7.90% for Investor Shares and 7.95% for Admiral Shares, as the broad municipal market recorded one of its best six-month performances in years.

Yields moved lower for both funds. While the Fed’s rate-cutting primarily affected the short end of the maturity spectrum, strong demand for long-term municipal bonds drove their prices up and their yields down.

The yield of the Pennsylvania Tax-Exempt Money Market Fund stood at 1.23% as of November 30, 2008, but dropped sharply to 0.54% by May 31.

 

 

 

2

For the Pennsylvania Long-Term Tax-Exempt Fund, yields fell to 3.60% for Investor Shares and 3.68% for Admiral Shares, from 4.50% and 4.58%, respectively, six months earlier. (For additional perspective, see the accompanying “Investment insight” box, on page 5.) On a taxable-equivalent basis, the yields for both funds were higher, as shown in the table on page 1.

Note: The funds are permitted to invest in securities whose income is subject to the alternative minimum tax. The Long-Term Fund owns no securities that would generate income distributions subject to the AMT. The Money Market Fund holds some of these securities.

 

Government actions spurred investor confidence in bonds

The fixed income market gyrated during the fiscal half-year. After Lehman Brothers’ collapse in September, investors fled in droves to U.S. Treasury bonds, considered the safest of all securities. The difference between the yields of Treasuries and those of corporate bonds surged to levels not seen since the 1930s.

The credit-market crisis also rattled the municipal bond market. At the beginning of the period, this produced municipal bond yields higher than those of Treasuries, a reversal of the traditional relationship between taxable and tax-exempt yields. Since December, munis have stabilized, in part because of federal government initiatives to help cash-starved

 

Market Barometer

 

 

 

 

 

Total Returns

 

Periods Ended May 31, 2009

 

Six

One

Five Years

 

Months

Year

(Annualized)

Bonds

 

 

 

Barclays Capital U.S. Aggregate Bond Index (Broad

 

 

 

taxable market)

5.11%

5.36%

5.01%

Barclays Capital Municipal Bond Index

9.00

3.57

4.41

Citigroup Three-Month U.S. Treasury Bill Index

0.12

0.89

3.03

 

 

 

 

Stocks

 

 

 

Russell 1000 Index (Large-caps)

5.73%

-32.95%

-1.55%

Russell 2000 Index (Small-caps)

7.03

-31.79

-1.18

Dow Jones U.S. Total Stock Market Index

6.58

-32.39

-1.13

MSCI All Country World Index ex USA (International)

22.20

-35.55

5.65

 

 

 

 

CPI

 

 

 

Consumer Price Index

0.67%

-1.28%

2.49%

 

3

state and local governments, and the traditional relationship between Treasury and muni yields seemed to be reasserting itself. For the six months, the broad municipal bond market returned about 9%.

In an effort to thaw the credit markets and stimulate the economy, the Federal Reserve Board reduced its target for short-term interest rates to an all-time low of 0% to 0.25% in December. In recent months, the Fed has unveiled plans to purchase a huge amount of Treasury and mortgage-backed securities to drive up their prices and push down yields, and thus keep borrowing costs, such as mortgage rates, low.

 

By the end of the period, bond investors were more optimistic and willing to take on riskier, higher-yielding corporate bonds. Barclays Capital U.S. Aggregate Bond Index returned about 5% for the fiscal half-year, while high-yield bonds, as measured by the Barclays Capital U.S. Corporate High Yield Bond Index, returned nearly 37% for the same period.

Stocks ended the period with impressive gains

Global stock markets improved significantly during the six months ended May 31. The broad U.S. stock market returned nearly 7%—the first six-month gain since October 2007. May saw the third consecutive monthly increase for U.S. stocks, with investors heartened by an apparent moderation in the bad economic

 

Expense Ratios

 

 

 

Your Fund Compared With Its Peer Group

 

 

 

Investor

Admiral

 

 

Shares

Shares

Peer Group

Pennsylvania Tax-Exempt Money Market Fund

0.17%

—

0.61%

Pennsylvania Long-Term Tax-Exempt Fund

0.20

0.12%

1.16

The fund expense ratios shown are from the prospectus dated March 27, 2009, and represent estimated costs for the current fiscal year based on the funds’ current net assets. For the six months ended May 31, 2009, the Pennsylvania Tax-Exempt Money Market Fund’s expense ratio was 0.17%. The Pennsylvania Long-Term Tax-Exempt Fund’s expense ratios were 0.20% for Investor Shares and 0.12% for Admiral Shares. Peer groups are: for the Pennsylvania Tax-Exempt Money Market Fund, the Average Pennsylvania Tax-Exempt Money Market Fund; and for the Pennsylvania Long-Term Tax-Exempt Fund, the Average Pennsylvania Municipal Debt Fund. Peer-group expense ratios are derived from data provided by Lipper Inc. and capture information through year-end 2008.

 

 

 

 

4

news. Consumer confidence ticked higher, and earlier estimates of first-quarter gross domestic product (GDP) were revised upward.

International stocks returned about 22% for the fiscal half-year—their highest six-month return since April 2006. Higher commodity prices and a slight rebound in manufacturing orders helped reverse the steep declines that plagued international markets earlier in the period. Aggressive stimulus measures by some governments, including China’s, helped the world’s emerging markets claw their way toward recovery.

Despite encouraging signs, many investors remained fearful that long-term inflation would be kindled by the U.S. Treasury’s massive borrowing, a weaker dollar, and higher crude-oil prices. The U.S. economy also continues to struggle with high levels of unemployment.

Investor demand, government efforts stimulated the market for munis

To a significant extent, the performance of each state’s municipal securities is consistent with that of the tax-exempt market as a whole, reflecting the relative homogeneity of securities issued by states and municipalities. That is why strong demand for longer-term municipal bonds during the six months ended May 31 helped boost the returns of Pennsylvania tax-exempt bonds along with others.

 

Investment insight

A historical yield pattern appears to be returning

At the start of the fiscal period, municipal securities generally offered higher pre-tax yields than taxable Treasuries—an inversion of the typical relationship. Munis usually yield less than Treasuries, because their interest income is generally exempt from federal taxes. As the period progressed, Treasury yields rose and muni yields declined, perhaps indicating a return to normalcy after a period of extreme turmoil in the bond markets.

Month-end yields

 

 

 

 

 

 

 

 

November

December

January

February

March

April

May

 

2008

2008

2009

2009

2009

2009

2009

Pennsylvania Long-Term

 

 

 

 

 

 

 

Tax-Exempt Fund Investor

 

 

 

 

 

 

 

Shares (30-day SEC yield)

4.50%

4.39%

3.72%

3.67%

3.83%

3.66%

3.60%

10-year Treasury notes

2.92%

2.21%

2.84%

3.02%

2.67%

3.12%

3.46%

Note: Ten-year Treasury yields are based on month-end yields, as calculated by Bloomberg L.P. The fund’s yield, calculated according to an SEC-required method, represents the yield on a portfolio of securities with an average effective maturity that is expected to remain between 10 and 25 years.

 

 

 

5

Quickening the demand were the attractive prices of long-term municipals—a consequence of credit-crisis-related forced sales by hedge funds and other investors in the final months of fiscal 2008.

The federal government’s stimulus efforts—including payments to state and local governments and the creation of a new subsidized, taxable municipal bond aimed at lowering financing costs—also helped generate more optimistic investor sentiment in the muni marketplace.

In this environment, Vanguard Pennsylvania Long-Term Tax-Exempt Fund performed strongly: Its Investor Shares returned 7.90% and its Admiral Shares 7.95%, compared with 8.23% produced by its benchmark index. The fund trailed the 9.64% average return of competitors largely because of its emphasis on higher-quality bonds: Funds with lower-quality bonds tend to perform relatively better during strong markets such as the recent period, while funds with higher-quality assets tend to perform better in down markets (as the Vanguard fund did in fiscal 2008, despite its negative return).

Vanguard Pennsylvania Tax-Exempt Money Market Fund was bolstered by its low expense ratio compared with most tax-exempt money market funds (see the accompanying table on page 4)—an important advantage in these lean times for interest income. The fund returned 0.40%, compared with 0.19% for its competitor funds.

 

As the municipal market enters the second half of fiscal year 2009, concerns have been raised about the fiscal outlook for states and municipalities—and, of course, the soundness of their finances bears close watching during this severe recession. It’s important to keep in mind, however, that the performance of the Pennsylvania Long-Term Tax-Exempt Fund over the 2008 fiscal year stemmed more from distress among financial institutions than from trouble with municipal securities. State and local governments have a long history of meeting investor obligations, even in periods of extreme economic decline.

A balanced portfolio can help to counter uncertainty

The financial markets are fraught with uncertainty: That is their nature, as every seasoned investor knows. At times, however, the uncertainty is heightened, and that characterizes the current market environment.

Whatever the outlook, Vanguard’s experience suggests that the best investment strategy is a long-term program built on a diversified mix of stock, bond, and money market funds that fits your goals, time horizon, and tolerance for risk. A balanced portfolio can’t be expected to produce the best (or worst) performance in a given period, but it can help you reap the rewards of the market’s best-performing assets while muting the impact of the worst-performing ones.

 

 

 

 

 

6

The Vanguard Pennsylvania Tax-Exempt Funds—each combining low costs with the skilled management and expert credit analysis of Vanguard’s Fixed Income Group—can be a valuable part of such a diversified, long-term portfolio.

As always, thank you for entrusting your assets to Vanguard.

 

Sincerely,

 


 

F. William McNabb III

President and Chief Executive Officer

June 15, 2009

 

 

 

 

Details about the Treasury Temporary Guarantee Program for Money Market Funds

 

The Pennsylvania Tax-Exempt Money Market Fund is participating in the U.S. Treasury’s Temporary Guarantee Program, which provides a guarantee to money market fund shareholders based on the number of shares they owned at the close of business on September 19, 2008. The program will expire on September 18, 2009. Some details of the program:

 

• Any increase in the number of shares that an investor held after the close of business on September 19, 2008, will not be guaranteed.

 

• If a shareholder closes his or her account in the fund, any future investment in the fund will not be guaranteed.

 

• If the number of shares an investor holds fluctuates over the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less.

 

 

 

7

Advisor’s Report

For the fiscal half-year ended May 31, 2009, Vanguard Pennsylvania Tax-Exempt Money Market Fund returned 0.40%, exceeding the average return of peer-group funds. Vanguard Pennsylvania Long-Term Tax-Exempt Fund registered a nearly 8% return, reversing the negative result of the previous fiscal year but lagging both the performance of its benchmark index and the average return of competitors.

The investment environment

As the six-month period began, the shocks of the Lehman Brothers bankruptcy and the federal government’s rescue of American International Group (AIG) were still reverberating throughout the financial markets. Credit markets had seized up, and prices had fallen for all but the “safest” assets (that is, U.S. Treasuries) as investors rushed headlong to avoid any hint of risk. Hedge funds and closed-end funds, which had relied on massive debt to finance investments in assets such as mortgage-backed securities and municipal bonds, had no choice but to sell those assets as the value of their collateral declined.

The strong demand for Treasuries drove down their yields, while the rushed sales of municipal bonds increased their yields, reversing the usual relationship: By December, the yield of 30-year AAA-rated municipal bonds was almost double that of 30-year Treasuries, compared with the typical ratio of about 90%.

 

Yields of Municipal Securities

 

 

(AAA-Rated General-Obligation Issues)

 

 

 

November 30,

May 31,

Maturity

2008

2009

2 years

2.13%

0.94%

5 years

2.93

1.97

10 years

4.02

2.97

30 years

5.38

4.55

Source: Vanguard.

 

 

 

 

8

After December, however, the investment environment improved considerably. The municipal market began to stabilize, bolstered by federal government initiatives that prompted investors to take advantage of municipal securities’ depressed prices. The Federal Reserve Board had pushed its target for the federal funds rate as low as it could go, to a range of 0%–0.25%. The Fed also adopted an unconventional policy of “quantitative easing”—an array of programs aimed at thawing frozen credit markets. In addition, in February the U.S. Congress passed the American Recovery and Reinvestment Act of 2009, an enormous stimulus program that includes direct payments to state and local governments.

The act also provides for the “Build America Bonds” program, which allows municipalities to issue federally subsidized taxable bonds. A number of states, agencies, and local governments—in California, New York, and New Jersey, for example—quickly took advantage of this new investment tool to lower their financing costs.

Toward the end of the fiscal half-year, liquidity had improved in the municipal bond market and credit spreads were tightening. Investors’ appetite for risk began to revive, which cooled demand for Treasuries and pushed their yields higher. Long-term municipal bonds rallied, driving their yields lower. The relationship between municipal bond yields and Treasury yields was approaching normalcy—note, for example, the table in the President’s Letter comparing the yield of the Pennsylvania Long-Term Tax-Exempt Fund with Treasury yields.

The troubles faced by the municipal bond market can be seen in the supply of new issuance, which fell during the six months ended May 31 by almost 23%, to $162 billion, from a year earlier. The drop reflects a higher-than-normal issuance in the prior year as states and local governments turned to traditional bonds to replace auction-rate and variable-rate debt securities, which incurred credit-crisis problems. The decline also reflected investors’ pronounced risk-aversion in late 2008, when there was little appetite for anything but Treasuries. During the six months, Pennsylvania government entities floated $7.8 billion in securities, down from $9.6 billion a year earlier.

Management of the funds

The yield of the Pennsylvania Tax-Exempt Money Market Fund declined for the six months ended May 31, as the Fed continued its policy of lowering interest rates. As described in the President’s Letter, the Vanguard Pennsylvania Tax-Exempt Money Market Fund has a competitive advantage in its low-cost structure. This, together with our emphasis on the high quality of municipal issuers, was an important factor in enabling the fund to outpace the average result of peer funds for the recent fiscal period. (The Pennsylvania Long-Term Tax-Exempt Fund also benefits from a low expense ratio.)

 

 

9

During the half-year, the Pennsylvania Long-Term Tax-Exempt Fund benefited from the post-December rally in long-term municipal bonds. The fund’s Investor Shares returned 7.90% and its Admiral Shares, 7.95%. As expected, a rally in long-term municipal bond prices helped push down yields for the Pennsylvania Long-Term Tax-Exempt Fund. The fund’s total return trailed the 8.23% return of its benchmark index and the 9.64% average return of competitors largely because of the fund’s emphasis on higher-quality bonds. Funds with lower-quality bonds tend to perform relatively better during strong markets such as the recent period, when an increase in investors’ appetite for risk can provide an extra boost to lower-rated securities.

Outlook

States and municipalities are facing historic fiscal challenges amid a severe recession and a housing slump that have reduced tax revenues. In Pennsylvania, for example, the severe recession slashed tax revenues, causing lawmakers to grapple with closing a budget deficit in excess of $3 billion. As the fiscal half-year was ending, state legislators were debating a combination of spending cuts and tax increases.

In general, the federal government’s stimulus program and its other steps are helping to bridge a portion of state and municipal budget gaps. Looking forward, we expect these shortfalls to continue to be largely filled by tax increases, spending cuts, and tapping of reserves, the precise mix depending on each locality’s economic and political situation. Of course, this will result in tough decision-making at all levels of government as the funds’ new fiscal period proceeds. While Pennsylvania faces a slowing economy, reduced tax-revenue growth, and accompanying budget stresses, the commonwealth appears to be in better fiscal shape than many other states.

At Vanguard, we are ready for the challenges presented by the severe recession. The credit quality of issuers has never been more important. We expect our long-standing practice of conducting rigorous and independent analyses will continue to serve you well. Coupled with the Pennsylvania Tax-Exempt Funds’ broad diversification and low expense ratios, your funds are positioned to take advantage of the best opportunities in an unusually demanding environment.

 

Kathryn T. Allen,

Principal, Portfolio Manager

 

Marlin G. Brown,

Portfolio Manager

 

Vanguard Fixed Income Group

June 25, 2009

 

 

 

10

Pennsylvania Tax-Exempt Money Market Fund

 

Fund Profile

As of May 31, 2009

 

Financial Attributes

 

 

 

Ticker Symbol

VPTXX

Expense Ratio1

0.17%

7-Day SEC Yield

0.54%

Average Quality

MIG-1

Average Weighted Maturity

31.0 days

Average quality: Moody’s Investors Service.

 

 

Distribution by Credit Quality (% of portfolio)

 

 

MIG-1/A-1+/SP-1+/F-1+

80.5%

P-1/A-1/SP-1/F-1

15.7

AAA/AA

3.8

Ratings: Moody’s Investors Service, Standard & Poor’s, Fitch.

 

 

1 The fund expense ratio shown is from the prospectus dated March 27, 2009, and represents estimated costs for the current fiscal year based on the fund’s current net assets. For the six months ended May 31, 2009, the fund’s expense ratio was 0.17%.

 

 

 

11

Pennsylvania Tax-Exempt Money Market Fund

 

Performance Summary

 

Investment returns will fluctuate. All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) The returns shown do not reflect taxes that a shareholder would pay on fund distributions. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at a $1 per share, it is possible to lose money by investing in the fund. (For details on the fund’s participation in the U.S. Treasury’s temporary guarantee program, please see the note on page 7.) The fund’s 7-day SEC yield reflects its current earnings more closely than do the average annual returns.

 

Fiscal-Year Total Returns (%): November 30, 1998, Through May 31, 2009

 

 

Average

 

 

Pennsylvania

 

 

Tax-Exempt

 

 

Money Market

 

 

Fund

Fiscal Year

Total Return

Total Return

1999

3.06%

2.73%

2000

3.91

3.56

2001

2.89

2.52

2002

1.32

1.00

2003

0.91

0.56

2004

1.05

0.60

2005

2.19

1.73

2006

3.31

2.83

2007

3.64

3.14

2008

2.42

1.94

2009*

0.40

0.19

 

7-day SEC yield (5/31/2009):0.54%

Average Pennsylvania Tax-Exempt Money Market Fund:

Derived from data provided by Lipper Inc.

* Six months ended May 31, 2009.

 

Average Annual Total Returns: Periods Ended March 31, 2009

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.

 

 

Inception Date

One Year

Five Years

Ten Years

Pennsylvania Tax-Exempt Money Market Fund

6/13/1988

1.76%

2.52%

2.40%

 

Vanguard fund total returns do not include the account service fee that may be applicable to certain accounts with balances below $10,000.

See Financial Highlights for dividend information.

 

12

Pennsylvania Tax-Exempt Money Market Fund

 

Financial Statements (unaudited)

 

Statement of Net Assets

As of May 31, 2009

 

The fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at www.sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

Tax-Exempt Municipal Bonds (100.8%)

 

 

 

 

 

Pennsylvania (98.5%)

 

 

 

 

 

1

Abington PA School District TOB VRDO

0.290%

6/5/09

LOC

7,500

7,500

 

Adams County PA IDA (Gettysburg College) VRDO

0.200%

6/5/09

LOC

5,750

5,750

1

Allegheny County PA GO TOB VRDO

0.490%

6/5/09

(13)

25,985

25,985

 

Allegheny County PA GO VRDO

0.380%

6/5/09

LOC

14,455

14,455

 

Allegheny County PA GO VRDO

0.380%

6/5/09

LOC

37,300

37,300

 

Allegheny County PA Higher Educ. Auth. Rev.

 

 

 

 

 

 

(Univ. of Pittsburgh Medical Center

 

 

 

 

 

 

Children’s Hosp.) VRDO

0.250%

6/5/09

 

36,000

36,000

 

Allegheny County PA Higher Educ. Building Auth.

 

 

 

 

 

 

(Carnegie Mellon Univ.) VRDO

0.150%

6/1/09

 

44,720

44,720

 

Allegheny County PA Higher Educ. Building Auth.

 

 

 

 

 

 

(Point Park Univ.) VRDO

0.340%

6/5/09

LOC

15,455

15,455

 

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

 

(Jefferson Regional Medical Center) VRDO

0.340%

6/5/09

LOC

3,625

3,625

 

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

 

(Presbyterian Univ. Health System) VRDO

0.250%

6/5/09

LOC

4,935

4,935

1

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

 

(Univ. of Pittsburgh Medical Center) TOB VRDO

0.390%

6/5/09

LOC

49,060

49,060

1

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

 

(Univ. of Pittsburgh Medical Center) TOB VRDO

0.390%

6/5/09

LOC

54,990

54,990

 

Allegheny County PA IDA Rev.

 

 

 

 

 

 

(Residential Rental) VRDO

0.600%

6/5/09

LOC

2,865

2,865

 

Allegheny County PA IDA Rev.

 

 

 

 

 

 

(Western PA School for Blind Children) PUT

2.100%

7/1/09

 

15,000

15,000

 

Beaver County PA IDA PCR

 

 

 

 

 

 

(FirstEnergy Nuclear) VRDO

0.310%

6/5/09

LOC

62,600

62,600

 

Beaver County PA IDA PCR (FirstEnergy) VRDO

0.260%

6/1/09

LOC

6,700

6,700

 

Beaver County PA IDA PCR (FirstEnergy) VRDO

0.350%

6/5/09

LOC

52,250

52,250

 

Beaver County PA IDA PCR (FirstEnergy) VRDO

0.400%

6/5/09

LOC

60,500

60,500

 

Beaver County PA IDA PCR

 

 

 

 

 

 

(Met Edison Co.) VRDO

0.300%

6/5/09

LOC

10,000

10,000

 

Beaver County PA IDA PCR

 

 

 

 

 

 

(Pennsylvania Electric Co. Project) VRDO

0.400%

6/5/09

LOC

9,000

9,000

 

Beaver County PA IDA PCR VRDO

0.950%

6/5/09

 

6,900

6,900

1

Berks County PA Hosp. Rev.

 

 

 

 

 

 

(Reading Hosp. & Medical Center) TOB VRDO

0.440%

6/5/09

LOC

15,995

15,995

 

Berks County PA Hosp. Rev.

 

 

 

 

 

 

(Reading Hosp. & Medical Center) VRDO

0.220%

6/5/09

 

28,565

28,565

13

Pennsylvania Tax-Exempt Money Market Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

 

Berks County PA Hosp. Rev.

 

 

 

 

 

 

(Reading Hosp. & Medical Center) VRDO

0.270%

6/5/09

 

28,750

28,750

 

Berks County PA IDA (Kutztown Univ.) VRDO

0.350%

6/5/09

LOC

13,105

13,105

 

Berks County PA Muni. Auth. Incremental

 

 

 

 

 

 

Draw Rev. (Albright College) VRDO

0.300%

6/5/09

LOC

25,500

25,500

 

Bucks County PA IDA (Grand View Hosp.) VRDO

0.250%

6/5/09

LOC

14,000

14,000

 

Bucks County PA IDA (Grand View Hosp.) VRDO

0.300%

6/5/09

LOC

8,850

8,850

 

Bucks County PA IDA

 

 

 

 

 

 

(Pennswood Village Project) VRDO

0.400%

6/5/09

LOC

8,415

8,415

 

Bucks County PA IDA

 

 

 

 

 

 

(Pennswood Village Project) VRDO

0.400%

6/5/09

LOC

8,600

8,600

 

Bucks County PA IDA Econ. Dev. Rev.

 

 

 

 

 

 

(Law School Admission Council) VRDO

0.350%

6/5/09

LOC

12,090

12,090

 

Butler County PA General Auth. Rev.

 

 

 

 

 

 

(Hampton Township) VRDO

1.300%

6/5/09

(4)

7,700

7,700

 

Butler County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Butler Health System Project) VRDO

0.220%

6/5/09

LOC

5,000

5,000

 

Cambria County PA IDA Rev.

 

 

 

 

 

 

(American National Red Cross) VRDO

0.200%

6/5/09

LOC

4,500

4,500

 

Chambersburg PA Auth. Rev.

 

 

 

 

 

 

(Wilson College Project) VRDO

0.350%

6/5/09

LOC

31,180

31,180

 

Chester County PA Health & Educ.

 

 

 

 

 

 

Fac. Auth. Rev. (Jefferson Health System) VRDO

0.300%

6/5/09

 

13,255

13,255

 

Chester County PA Health & Educ.

 

 

 

 

 

 

Fac. Auth. Rev. (Jefferson Health System) VRDO

0.350%

6/5/09

 

31,825

31,825

1

Chester County PA IDA Water Fac. Rev. TOB VRDO

0.520%

6/5/09

(13)

15,935

15,935

1

Chester County PA TOB VRDO

0.320%

6/5/09

 

4,995

4,995

 

Cumberland County PA Muni. Auth. Rev.

 

 

 

 

 

 

(Asbury Obligated Group) VRDO

0.320%

6/5/09

LOC

5,470

5,470

 

Dallastown Area School Dist. VRDO

1.250%

6/5/09

(4)

7,000

7,000

 

Dauphin County PA General Auth. Health

 

 

 

 

 

 

System Rev. (Pinnacle Health) VRDO

0.400%

6/5/09

(4)

18,685

18,685

 

Dauphin County PA General Auth. Hosp. Rev.

 

 

 

 

 

 

(Reading Hosp. & Medical Center) VRDO

0.300%

6/5/09

 

7,855

7,855

 

Dauphin County PA VRDO

0.270%

6/5/09

 

7,625

7,625

 

Delaware County PA Auth. Rev.

 

 

 

 

 

 

(Haverford College) VRDO

0.150%

6/5/09

 

29,315

29,315

 

Delaware County PA Auth. Univ. Rev.

 

 

 

 

 

 

(Villanova Univ.) VRDO

0.350%

6/5/09

LOC

8,310

8,310

 

Delaware County PA Auth. Univ. Rev.

 

 

 

 

 

 

(Villanova Univ.) VRDO

0.350%

6/5/09

LOC

12,525

12,525

 

Delaware County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Crozer-Chester Medical Center) VRDO

0.480%

6/5/09

LOC

3,900

3,900

 

Delaware County PA IDA Airport Fac.

 

 

 

 

 

 

(United Parcel Service) VRDO

0.160%

6/1/09

 

18,400

18,400

 

Delaware County PA IDA PCR

 

 

 

 

 

 

(BP Exploration & Oil) VRDO

0.250%

6/1/09

 

1,800

1,800

 

Delaware County PA IDA PCR

 

 

 

 

 

 

(BP Exploration & Oil) VRDO

0.250%

6/1/09

 

27,450

27,450

 

Delaware County PA IDA PCR

 

 

 

 

 

 

(BP Exploration & Oil) VRDO

0.300%

6/1/09

LOC

39,915

39,915

 

Delaware County PA IDA PCR

 

 

 

 

 

 

(Exelon Generation Co.) CP

0.400%

6/3/09

LOC

29,235

29,235

 

Delaware County PA IDA Refunding Resource

 

 

 

 

 

 

Recovery Fac. (General Electric

 

 

 

 

 

 

Capital Corp.) VRDO

0.280%

6/5/09

 

8,595

8,595

14

Pennsylvania Tax-Exempt Money Market Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

 

Delaware County PA IDA Refunding Resource

 

 

 

 

 

 

Recovery Fac. (General Electric

 

 

 

 

 

 

Capital Corp.) VRDO

0.290%

6/5/09

 

44,100

44,100

1

Delaware County PA IDA Rev.

 

 

 

 

 

 

(Aqua PA Inc.) TOB VRDO

0.520%

6/5/09

(13)

9,915

9,915

 

Delaware County PA IDA Solid Waste Rev.

 

 

 

 

 

 

(Scott Paper Co.) VRDO

0.650%

6/5/09

 

14,895

14,895

 

Delaware County PA IDA Solid Waste Rev.

 

 

 

 

 

 

(Scott Paper Co.) VRDO

0.650%

6/5/09

 

17,000

17,000

 

Delaware County PA IDA Solid Waste Rev.

 

 

 

 

 

 

(Scott Paper Co.) VRDO

0.650%

6/5/09

 

14,900

14,900

 

Delaware River Joint Toll Bridge Comm.

 

 

 

 

 

 

Pennsylvania & New Jersey Rev. VRDO

0.900%

6/5/09

LOC

15,165

15,165

 

Doylestown PA Hosp. Auth. Hosp. Rev. VRDO

0.300%

6/5/09

LOC

11,700

11,700

 

Emmaus PA General Auth. Rev. VRDO

0.300%

6/5/09

LOC

4,800

4,800

 

Emmaus PA General Auth. Rev. VRDO

0.300%

6/5/09

LOC

2,200

2,200

 

Emmaus PA General Auth. Rev. VRDO

0.300%

6/5/09

LOC

1,200

1,200

 

Emmaus PA General Auth. Rev. VRDO

0.320%

6/5/09

LOC

5,000

5,000

 

Fayette County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Fayette Regional Health System) VRDO

0.340%

6/5/09

LOC

15,000

15,000

1

Geisinger Health System Auth. of

 

 

 

 

 

 

Pennsylvania Rev. (Penn State Geisinger

 

 

 

 

 

 

Health System) TOB VRDO

0.300%

6/5/09

 

4,995

4,995

1

Geisinger Health System Auth. of

 

 

 

 

 

 

Pennsylvania Rev. (Penn State Geisinger

 

 

 

 

 

 

Health System) TOB VRDO

0.300%

6/5/09

 

4,180

4,180

 

Geisinger Health System Auth. of

 

 

 

 

 

 

Pennsylvania Rev. (Penn State

 

 

 

 

 

 

Geisinger Health System) VRDO

0.200%

6/1/09

 

32,115

32,115

 

Geisinger Health System Auth. of

 

 

 

 

 

 

Pennsylvania Rev. (Penn State Geisinger

 

 

 

 

 

 

Health System) VRDO

0.200%

6/1/09

 

1,750

1,750

 

Governor Mifflin PA School Dist. BAN

1.250%

5/15/10

 

3,000

3,016

 

Haverford Township PA School Dist. VRDO

0.340%

6/5/09

LOC

5,000

5,000

 

Lackawanna County PA GO VRDO

2.250%

6/5/09

(4)

44,535

44,535

 

Lancaster County PA Convention

 

 

 

 

 

 

Center Auth. Rev. (Hotel Room) VRDO

0.300%

6/5/09

LOC

40,000

40,000

 

Lancaster County PA Convention

 

 

 

 

 

 

Center Auth. Rev. (Hotel Room) VRDO

0.300%

6/5/09

LOC

10,600

10,600

 

Latrobe PA IDA Rev. (Greensburg Diocese) VRDO

1.700%

6/5/09

LOC

4,610

4,610

 

Lehigh County PA General Purpose Hosp.

 

 

 

 

 

 

Auth. Rev. (Lehigh Valley Health Network) VRDO

0.260%

6/1/09

LOC

1,915

1,915

 

Lehigh County PA General Purpose Hosp.

 

 

 

 

 

 

Auth. Rev. (Muhlenberg College) VRDO

0.250%

6/5/09

LOC

7,500

7,500

 

Lower Merion PA School Dist. GO VRDO

0.300%

6/5/09

LOC

5,250

5,250

 

Lower Merion PA School Dist. GO VRDO

0.300%

6/5/09

LOC

5,000

5,000

1

Luzerne County PA IDA (Water Facility) TOB VRDO

0.490%

6/5/09

(13)

5,000

5,000

 

Manheim Township PA School Dist. VRDO

0.900%

6/5/09

(4)

11,925

11,925

 

Monroe County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Pocono Medical Center) VRDO

0.300%

6/5/09

LOC

21,360

21,360

 

Montgomery County PA IDA PCR

 

 

 

 

 

 

(Exelon Generation Co.) CP

0.450%

6/9/09

LOC

9,150

9,150

 

Montgomery County PA IDA PCR

 

 

 

 

 

 

(PECO Energy) VRDO

0.370%

6/5/09

LOC

6,720

6,720

 

Montgomery County PA IDA Rev.

 

 

 

 

 

 

(Northwestern Human Services) VRDO

0.320%

6/5/09

LOC

11,880

11,880

15

Pennsylvania Tax-Exempt Money Market Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

 

Montgomery County PA IDA Rev.

 

 

 

 

 

 

(The Shipley School) VRDO

0.350%

6/5/09

LOC

14,500

14,500

 

Nazareth PA School Dist. GO VRDO

2.250%

6/5/09

(4)

6,000

6,000

 

North Penn PA School Dist. BAN

1.750%

4/15/10

 

22,000

22,204

 

Northampton County PA General Purpose

 

 

 

 

 

 

Auth. Univ. Rev. (Lafayette College) VRDO

0.200%

6/5/09

 

9,350

9,350

1

Northampton County PA General Purpose

 

 

 

 

 

 

Auth. Univ. Rev. (Lehigh Univ.) TOB VRDO

0.290%

6/5/09

LOC

21,375

21,375

 

Northampton County PA General Purpose

 

 

 

 

 

 

Auth. Univ. Rev. (Lehigh Univ.) VRDO

0.200%

6/5/09

 

30,075

30,075

 

Northampton County PA General Purpose

 

 

 

 

 

 

Auth. Univ. Rev. (Lehigh Univ.) VRDO

0.250%

6/5/09

 

13,420

13,420

 

Northampton County PA General Purpose

 

 

 

 

 

 

Auth. Univ. Rev. (Lehigh Univ.) VRDO

0.250%

6/5/09

 

20,825

20,825

 

Northampton County PA Higher Educ.

 

 

 

 

 

 

Auth. Rev. (Lehigh Univ.) VRDO

0.250%

6/5/09

 

4,700

4,700

 

Northeastern PA Hosp. & Educational Auth. Rev.

 

 

 

 

 

 

(Commonwealth Medical College Project) VRDO

0.300%

6/5/09

LOC

5,700

5,700

 

Norwin PA School Dist. GO

5.000%

4/1/10

(Prere.)

6,390

6,629

 

Parkland PA School Dist. VRDO

0.900%

6/5/09

(4)

13,645

13,645

 

Pennsylvania Econ. Dev. Financing

 

 

 

 

 

 

Auth. Fac. Rev. (Jefferson Health) VRDO

0.300%

6/5/09

 

14,500

14,500

 

Pennsylvania Econ. Dev. Financing

 

 

 

 

 

 

Auth. Fac. Rev. (PSEG Power) VRDO

0.410%

6/5/09

LOC

11,000

11,000

1

Pennsylvania Econ. Dev. Financing

 

 

 

 

 

 

Auth. Fac. Rev. (Wenger’s Feed Mill) VRDO

0.650%

6/5/09

LOC

6,510

6,510

 

Pennsylvania Econ. Dev. Financing

 

 

 

 

 

 

Auth. Fac. Rev. (Wenger’s Feed Mill) VRDO

0.650%

6/5/09

LOC

6,100

6,100

 

Pennsylvania Econ. Dev. Financing

 

 

 

 

 

 

Auth. Fac. Rev. (York Water Co. Project) VRDO

0.540%

6/5/09

LOC

5,000

5,000

 

Pennsylvania Econ. Dev. Financing Auth. PUT

0.900%

7/1/09

LOC

10,000

10,000

 

Pennsylvania Econ. Dev. Financing Auth. VRDO

0.330%

6/5/09

LOC

40,000

40,000

 

Pennsylvania Econ. Dev. Financing

 

 

 

 

 

 

Auth. Wastewater Treatment Rev.

 

 

 

 

 

 

(Sunoco Inc.) VRDO

0.200%

6/5/09

LOC

8,000

8,000

 

Pennsylvania Econ. Dev. Financing

 

 

 

 

 

 

Auth. Wastewater Treatment Rev.

 

 

 

 

 

 

(Sunoco Inc.) VRDO

0.300%

6/5/09

LOC

12,875

12,875

 

Pennsylvania GO

5.000%

7/1/09

 

4,710

4,726

 

Pennsylvania GO

5.000%

7/1/09

 

6,955

6,978

 

Pennsylvania GO

5.000%

8/1/09

 

17,820

17,902

 

Pennsylvania GO

5.000%

8/1/09

 

36,220

36,402

 

Pennsylvania GO

4.750%

9/1/09

 

8,375

8,438

 

Pennsylvania GO

5.000%

9/1/09

 

8,235

8,291

 

Pennsylvania GO

5.000%

9/15/09

 

6,525

6,601

 

Pennsylvania GO

5.000%

10/1/09

 

9,000

9,098

 

Pennsylvania GO

5.000%

10/1/09

 

5,000

5,045

 

Pennsylvania GO

5.750%

10/1/09

(Prere.)

10,675

10,928

 

Pennsylvania GO

5.750%

10/1/09

(Prere.)

4,420

4,516

 

Pennsylvania GO

5.250%

10/15/09

 

2,000

2,032

 

Pennsylvania GO

5.000%

1/15/10

 

1,405

1,443

 

Pennsylvania GO

6.000%

1/15/10

(Prere.)

5,000

5,220

 

Pennsylvania GO

5.250%

2/1/10

 

17,720

18,257

 

Pennsylvania GO

5.000%

3/1/10

 

10,000

10,329

 

Pennsylvania GO

2.000%

3/15/10

 

9,225

9,330

 

Pennsylvania GO

2.000%

4/15/10

 

16,830

17,065

16

Pennsylvania Tax-Exempt Money Market Fund

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

1

Pennsylvania GO TOB VRDO

0.300%

6/5/09

 

19,320

19,320

1

Pennsylvania GO TOB VRDO

0.300%

6/5/09

 

1,425

1,425

1

Pennsylvania GO TOB VRDO

0.300%

6/5/09

 

7,100

7,100

1

Pennsylvania GO TOB VRDO

0.300%

6/5/09

 

4,000

4,000

1

Pennsylvania GO TOB VRDO

0.300%

6/5/09

 

3,000

3,000

1

Pennsylvania GO TOB VRDO

0.390%

6/5/09

 

4,200

4,200

 

Pennsylvania Higher Educ. Assistance

 

 

 

 

 

 

Agency Student Loan Rev. VRDO

2.450%

6/5/09

(4)

62,900

62,900

 

Pennsylvania Higher Educ. Assistance

 

 

 

 

 

 

Agency Student Loan Rev. VRDO

3.250%

6/5/09

(4)

83,500

83,500

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Bryn Mawr College) PUT

0.750%

2/10/10

 

10,000

10,000

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Carnegie Mellon Univ.) VRDO

0.200%

6/1/09

 

39,525

39,525

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Carnegie Mellon Univ.) VRDO

0.200%

6/1/09

 

41,865

41,865

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Carnegie Mellon Univ.) VRDO

0.200%

6/1/09

 

35,475

35,475

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Carnegie Mellon Univ.) VRDO

0.200%

6/1/09

 

13,200

13,200

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Drexel Univ.) VRDO

0.280%

6/1/09

LOC

30,325

30,325

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Drexel Univ.) VRDO

0.300%

6/5/09

LOC

30,000

30,000

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Drexel Univ.) VRDO

0.540%

6/5/09

LOC

18,835

18,835

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Drexel Univ.) VRDO

0.590%

6/5/09

LOC

22,500

22,500

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Gannon Univ.) VRDO

0.340%

6/5/09

LOC

5,975

5,975

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Gwynedd Mercy College) VRDO

0.290%

6/5/09

LOC

10,950

10,950

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Kings College) VRDO

0.340%

6/5/09

LOC

4,000

4,000

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(St. Joseph’s Univ.) VRDO

0.300%

6/5/09

LOC

7,595

7,595

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(St. Joseph’s Univ.) VRDO

0.480%

6/5/09

LOC

22,000

22,000

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Thomas Jefferson Univ.) VRDO

0.250%

6/5/09

LOC

5,900

5,900

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Thomas Jefferson Univ.) VRDO

0.250%

6/5/09

LOC

3,500

3,500

1

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Trustees of the Univ. of Pennsylvania)

 

 

 

 

 

 

TOB VRDO

0.300%

6/5/09

 

3,655

3,655

1

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Trustees of the Univ. of Pennsylvania)

 

 

 

 

 

 

TOB VRDO

0.300%

6/5/09

 

5,495

5,495

 

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Univ. of Pennsylvania Health System) VRDO

0.200%

6/5/09

LOC

32,600

32,600

1

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(UPMC Health System) TOB VRDO

0.300%

6/5/09

 

9,305

9,305

1

Pennsylvania Housing and Finance

 

 

 

 

 

 

Agency TOB VRDO

0.470%

6/5/09

 

4,940

4,940

1

Pennsylvania Housing Finance Agency Rev.

 

 

 

 

 

 

(Single Family Mortgage) TOB VRDO

0.470%

6/5/09

 

35,185

35,185

17

Pennsylvania Tax-Exempt Money Market Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

1

Pennsylvania Housing Finance Agency Rev.

 

 

 

 

 

 

(Single Family Mortgage) TOB VRDO

0.470%

6/5/09

 

10,055

10,055

 

Pennsylvania Housing Finance Agency Rev.

 

 

 

 

 

 

(Single Family Mortgage) VRDO

0.400%

6/5/09

 

17,160

17,160

 

Pennsylvania Housing Finance Agency Rev.

 

 

 

 

 

 

(Single Family Mortgage) VRDO

0.400%

6/5/09

 

4,950

4,950

 

Pennsylvania Housing Finance Agency Rev.

 

 

 

 

 

 

(Single Family Mortgage) VRDO

0.450%

6/5/09

 

25,105

25,105

 

Pennsylvania Housing Finance Agency Rev.

 

 

 

 

 

 

(Single Family Mortgage) VRDO

0.450%

6/5/09

 

10,000

10,000

 

Pennsylvania Housing Finance Agency Rev.

 

 

 

 

 

 

(Single Family Mortgage) VRDO

0.600%

6/5/09

 

30,000

30,000

 

Pennsylvania Housing Finance

 

 

 

 

 

 

Agency Rev. VRDO

0.350%

6/5/09

 

25,665

25,665

 

Pennsylvania Housing Finance

 

 

 

 

 

 

Agency Rev. VRDO

0.350%

6/5/09

 

20,780

20,780

 

Pennsylvania Housing Finance

 

 

 

 

 

 

Agency Rev. VRDO

0.450%

6/5/09

 

20,000

20,000

 

Pennsylvania Housing Finance

 

 

 

 

 

 

Agency Rev. VRDO

0.450%

6/5/09

 

9,495

9,495

 

Pennsylvania Housing Finance

 

 

 

 

 

 

Agency Rev. VRDO

0.450%

6/5/09

 

14,975

14,975

1

Pennsylvania Housing Finance

 

 

 

 

 

 

Agency TOB VRDO

0.590%

6/5/09

 

3,875

3,875

 

Pennsylvania Intergovernmental

 

 

 

 

 

 

Cooperation Auth. Rev. VRDO

0.700%

6/5/09

(4)

11,655

11,655

 

Pennsylvania State Univ. Rev.

5.000%

8/15/09

 

5,000

5,034

 

Pennsylvania State Univ. Rev.

2.000%

3/1/10

 

6,600

6,677

 

Pennsylvania State Univ. Rev. PUT

1.500%

6/1/10

 

14,800

14,953

1

Pennsylvania State Univ. Rev. TOB VRDO

0.300%

6/5/09

 

6,095

6,095

1

Pennsylvania State Univ. Rev. TOB VRDO

0.340%

6/5/09

 

5,375

5,375

 

Pennsylvania State Univ. Rev. VRDO

0.250%

6/5/09

 

34,755

34,755

 

Pennsylvania State Univ. Rev. VRDO

0.250%

6/5/09

 

34,475

34,475

1

Pennsylvania State Univ. TOB VRDO

0.270%

6/5/09

LOC

22,295

22,295

1

Pennsylvania Turnpike Comm. Rev. TOB VRDO

0.940%

6/5/09

(12)

4,325

4,325

 

Pennsylvania Turnpike Comm. Rev. VRDO

0.200%

6/5/09

LOC

15,050

15,050

 

Pennsylvania Turnpike Comm. Rev. VRDO

0.280%

6/5/09

LOC

63,800

63,800

 

Pennsylvania Turnpike Comm. Rev. VRDO

0.320%

6/5/09

LOC

10,000

10,000

 

Philadelphia PA Airport Rev. VRDO

0.400%

6/5/09

LOC

25,400

25,400

 

Philadelphia PA Auth. for Individual

 

 

 

 

 

 

Healthcare Dev. Rev. VRDO

0.350%

6/5/09

LOC

9,390

9,390

 

Philadelphia PA Auth. IDR (Girard Estate

 

 

 

 

 

 

Aramark Project) VRDO

0.300%

6/5/09

LOC

13,750

13,750

 

Philadelphia PA Hosp. & Higher Educ.

 

 

 

 

 

 

Fac. Auth. Rev. (Wills Eye Hosp.) VRDO

0.300%

6/5/09

LOC

11,115

11,115

1

Philadelphia PA IDA Rev.

 

 

 

 

 

 

(Fox Chase Cancer Center) TOB VRDO

0.390%

6/5/09

LOC

12,000

12,000

 

Philadelphia PA IDA Rev.

 

 

 

 

 

 

(William Penn Charter) VRDO

0.340%

6/5/09

LOC

5,000

5,000

 

Philadelphia PA School Dist. VRDO

0.250%

6/5/09

LOC

9,000

9,000

 

Philadelphia PA School Dist. VRDO

0.300%

6/5/09

LOC

5,000

5,000

 

Philadelphia PA School Dist. VRDO

0.350%

6/5/09

LOC

30,000

30,000

1

Philadelphia PA Water &

 

 

 

 

 

 

Waste Water Rev. TOB VRDO

0.360%

6/5/09

(4)

9,940

9,940

1

Philadelphia PA Water &

 

 

 

 

 

 

Waste Water Rev. TOB VRDO

0.490%

6/5/09

(13)(4)

45,210

45,210

18

Pennsylvania Tax-Exempt Money Market Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

 

Philadelphia PA Water & Waste Water Rev. VRDO

0.360%

6/5/09

LOC

45,000

45,000

 

Pittsburgh PA GO

5.000%

9/1/09

(ETM)

11,650

11,777

 

Pittsburgh PA School Dist. BAN

3.500%

11/2/09

 

10,000

10,062

 

Red Lion PA School Dist. VRDO

0.900%

6/5/09

(4)

46,600

46,600

 

Ridley PA School Dist. VRDO

0.340%

6/5/09

LOC

4,000

4,000

 

South Fork PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Conemaugh Valley Hosp.) VRDO

0.250%

6/5/09

LOC

21,775

21,775

 

Southcentral Pennsylvania General Auth. Rev.

 

 

 

 

 

 

(Wellspan Health)

4.000%

6/1/09

 

3,025

3,025

1

Southcentral Pennsylvania General Auth. Rev.

 

 

 

 

 

 

(Wellspan Health) TOB VRDO

0.390%

6/5/09

 

9,970

9,970

 

Southeastern Pennsylvania Transp.

 

 

 

 

 

 

Auth. Rev. VRDO

0.320%

6/5/09

LOC

14,200

14,200

 

St. Mary’s Hosp. Auth. Bucks County PA Rev.

 

 

 

 

 

 

(Catholic Health Initiatives) VRDO

0.200%

6/5/09

 

9,900

9,900

 

St. Mary’s Hosp. Auth. Bucks County PA Rev.

 

 

 

 

 

 

(Catholic Health Initiatives) VRDO

0.750%

6/5/09

 

30,900

30,900

 

State Public School Building Auth.

 

 

 

 

 

 

Pennsylvania College Rev.

 

 

 

 

 

 

(North Allegheny School Dist.) VRDO

0.290%

6/5/09

 

18,145

18,145

 

Temple Univ. of the Commonwealth System RAN

1.250%

4/16/10

 

120,000

120,877

 

Union County PA Higher Educ. Auth. Rev.

 

 

 

 

 

 

(Bucknell Univ.) VRDO

0.300%

6/5/09

 

5,630

5,630

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) CP

0.650%

7/10/09

 

24,400

24,400

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) VRDO

0.320%

6/5/09

 

3,500

3,500

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) VRDO

0.320%

6/5/09

 

3,200

3,200

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) VRDO

0.320%

6/5/09

 

8,000

8,000

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) VRDO

0.320%

6/5/09

 

13,600

13,600

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) VRDO

0.320%

6/5/09

 

6,100

6,100

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) VRDO

4.000%

6/5/09

 

13,621

13,621

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) VRDO

4.000%

6/5/09

 

5,000

5,000

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) VRDO

4.000%

6/5/09

 

20,000

20,000

 

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

 

(Univ. Capital Project) VRDO

4.000%

6/5/09

 

12,500

12,500

 

Univ. of Pittsburgh PA Rev. CP

0.470%

8/4/09

 

8,750

8,750

 

Upper St. Claire PA VRDO

1.250%

6/5/09

(4)

25,460

25,460

 

Venango PA IDA (Scrubgrass Project) CP

3.250%

6/2/09

LOC

29,548

29,548

 

19

Pennsylvania Tax-Exempt Money Market Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

 

Venango PA IDA (Scrubgrass Project) CP

3.250%

6/2/09

LOC

13,614

13,614

 

Wallingford-Swarthmore PA School Dist. VRDO

2.250%

6/5/09

(4)

1,300

1,300

 

West Chester PA Area School Dist. GO

1.750%

9/15/09

 

5,290

5,308

 

Westmoreland County PA IDA Rev.

 

 

 

 

 

 

(Excela Project) VRDO

0.340%

6/5/09

LOC

7,915

7,915

 

Wilkes-Barre PA Finance Auth. Rev.

 

 

 

 

 

 

(King College Project) VRDO

0.340%

6/5/09

LOC

10,680

10,680

 

York County PA IDA (PECO) CP

0.370%

7/24/09

LOC

18,440

18,440

 

York County PA IDA

 

 

 

 

 

 

(Crescent Industries Inc.) VRDO

0.500%

6/5/09

LOC

5,000

5,000

 

 

 

 

 

 

3,655,736

Puerto Rico (2.3%)

 

 

 

 

 

1

Puerto Rico Ind. Medical &

 

 

 

 

 

 

Environmental Fac. Finance Auth. Rev.

 

 

 

 

 

 

PCR (Abbott Laboratories) PUT

2.000%

3/1/10

 

8,280

8,281

 

Puerto Rico Muni. Finance Agency

6.000%

8/1/09

(Prere.)

5,500

5,588

1

Puerto Rico Sales Tax Financing Corp. Rev.

 

 

 

 

 

 

TOB VRDO

0.370%

6/5/09

 

19,000

19,000

1

Puerto Rico Sales Tax Financing Corp. Rev.

 

 

 

 

 

 

TOB VRDO

0.490%

6/5/09

 

11,000

11,000

 

Puerto Rico TRAN

3.000%

7/30/09

LOC

39,000

39,085

 

 

 

 

 

 

82,954

Total Tax-Exempt Municipal Bonds (Cost $3,738,690)

 

 

 

 

3,738,690

Other Assets and Liabilities (-0.8%)

 

 

 

 

 

Other Assets

 

 

 

 

21,267

Liabilities

 

 

 

 

(49,202)

 

 

 

 

 

 

(27,935)

Net Assets (100%)

 

 

 

 

 

Applicable to 3,710,849,621 outstanding $.001 par value shares of

 

 

 

 

beneficial interest (unlimited authorization)

 

 

 

 

3,710,755

Net Asset Value Per Share

 

 

 

 

$1.00

 

At May 31, 2009, net assets consisted of:

 

 

Amount

 

($000)

Paid-in Capital

3,710,920

Undistributed Net Investment Income

-

Accumulated Net Realized Losses

(165)

Net Assets

3,710,755

 

¥ See Note A in Notes to Financial Statements.

1

Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2009, the aggregate value of these securities was $491,481,000, representing 13.2% of net assets.

A key to abbreviations and other references follows the Statement of Net Assets.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

20

Pennsylvania Tax-Exempt Money Market Fund

 

Key to Abbreviations

 

ARS

-Auction Rate Security.

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).

(12)

Assured Guaranty Corp.

(13)

National Indemnity Co. (Berkshire Hathaway).

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.

 

 

21

Pennsylvania Tax-Exempt Money Market Fund

 

Statement of Operations

 

 

Six Months Ended

 

May 31, 2009

 

($000)

Investment Income

 

Income

 

Interest

18,207

Total Income

18,207

Expenses

 

The Vanguard Group-Note B

 

Investment Advisory Services

212

Management and Administrative

1,514

Marketing and Distribution

618

Money Market Guarantee Program

802

Custodian Fees

9

Shareholders’ Reports

9

Trustees’ Fees and Expenses

3

Total Expenses

3,167

Net Investment Income

15,040

Realized Net Gain (Loss) on Investment Securities Sold

21

Net Increase (Decrease) in Net Assets Resulting from Operations

15,061

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

22

Pennsylvania Tax-Exempt Money Market Fund

 

Statement of Changes in Net Assets

 

 

Six Months Ended

Year Ended

 

May 31,

November 30,

 

2009

2008

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

15,040

97,628

Realized Net Gain (Loss)

21

(148)

Net Increase (Decrease) in Net Assets Resulting from Operations

15,061

97,480

Distributions

 

 

Net Investment Income

(15,040)

(97,628)

Realized Capital Gain

-

-

Total Distributions

(15,040)

(97,628)

Capital Share Transactions (at $1.00)

 

 

Issued

1,287,633

3,492,107

Issued in Lieu of Cash Distributions

14,470

93,175

Redeemed

(1,458,065)

(3,885,604)

Net Increase (Decrease) from Capital Share Transactions

(155,962)

(300,322)

Total Increase (Decrease)

(155,941)

(300,470)

Net Assets

 

 

Beginning of Period

3,866,696

4,167,166

End of Period

3,710,755

3,866,696

See accompanying Notes, which are an integral part of the Financial Statements.

 

23

Pennsylvania Tax-Exempt Money Market Fund

 

Financial Highlights

 

 

Six

 

 

 

 

 

 

Months

 

 

 

 

 

 

Ended

Year Ended November 30,

For a Share Outstanding

May 31,

 

 

 

 

 

Throughout Each Period

2009

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$1.00

$1.00

$1.00

$1.00

$1.00

$1.00

Investment Operations

 

 

 

 

 

 

Net Investment Income

.004

.024

.036

.033

.022

.010

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

on Investments

-

-

-

-

-

-

Total from Investment Operations

.004

.024

.036

.033

.022

.010

Distributions

 

 

 

 

 

 

Dividends from Net Investment Income

(.004)

(.024)

(.036)

(.033)

(.022)

(.010)

Distributions from Realized Capital Gains

-

-

-

-

-

-

Total Distributions

(.004)

(.024)

(.036)

(.033)

(.022)

(.010)

Net Asset Value, End of Period

$1.00

$1.00

$1.00

$1.00

$1.00

$1.00

 

 

 

 

 

 

 

Total Return1

0.40%

2.42%

3.64%

3.31%

2.19%

1.05%

 

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

 

Net Assets, End of Period (Millions)

$3,711

$3,867

$4,167

$3,390

$2,952

$2,659

Ratio of Total Expenses to

 

 

 

 

 

 

Average Net Assets

0.17%2,3

0.11%3

0.10%

0.13%

0.13%

0.13%

Ratio of Net Investment Income to

 

 

 

 

 

 

Average Net Assets

0.80%2

2.39%

3.57%

3.27%

2.18%

1.04%

 

1 Total returns do not include the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Annualized.

3 Includes fees to participate in the Treasury Temporary Guarantee Program for Money Market Funds of 0.03% for 2009 and 0.01% for 2008. See Note D in Notes to Financial Statements.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

 

 

24

Pennsylvania Tax-Exempt Money Market Fund

 

Notes to Financial Statements

 

Vanguard Pennsylvania Tax-Exempt Money Market Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in debt instruments of municipal issuers whose ability to meet their obligations may be affected by economic and political developments in the Commonwealth of Pennsylvania.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued at amortized cost, which approximates market value.

2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended November 30, 2005Ð2008) and for the period ended May 31, 2009, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

3. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month.

4. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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.

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At May 31, 2009, the fund had contributed capital of $933,000 to Vanguard (included in Other Assets), representing 0.03% of the fund’s net assets and 0.37% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.

C. In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements.

The various inputs that may be used to determine the value of the fund’s investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1-Quoted prices in active markets for identical securities.

Level 2-Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3-Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

 

 

 

25

Pennsylvania Tax-Exempt Money Market Fund

 

At May 31, 2009, 100% of the fund’s investments were valued using amortized cost, in accordance with rules under the Investment Company Act of 1940. Amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, securities valued at amortized cost are considered to be valued using Level 2 inputs.

D. On October 7, 2008, the board of trustees approved the fund’s participation in a temporary program introduced by the U.S. Treasury to guarantee the account values of shareholders in a money market fund in the event the fund’s net asset value falls below $0.995 and the fund’s trustees decide to liquidate the fund. The program covers the lesser of a shareholder’s account value on September 19, 2008, or on the date of liquidation. To participate, the fund was required to pay a fee of 0.01% of its net assets as of September 19, 2008, for coverage through December 18, 2008. In December 2008, the U.S. Treasury extended the program through April 30, 2009, and the fund’s trustees approved the fund’s continuing participation in the program at a cost of an additional 0.015% of its net assets as of September 19, 2008. In March 2009, the U.S. Treasury extended the program through September 18, 2009, and the fund’s trustees approved the fund’s continuing participation in the program at a cost of an additional 0.015% of its net assets as of September 19, 2008.

 

 

 

 

 

26

Pennsylvania Long-Term Tax-Exempt Fund

 

Fund Profile

As of May 31, 2009

 

Share-Class Characteristics

 

 

 

 

 

Investor

Admiral

 

Shares

Shares

Ticker Symbol

VPAIX

VPALX

Expense Ratio1

0.20%

0.12%

30-Day SEC Yield

3.60%

3.68%

 

Financial Attributes

 

 

 

 

 

Barclays

 

 

 

10 Year

 

 

 

Municipal

Barclays

 

 

Bond

Municipal

 

Fund

Index

Bond Index

Number of Bonds

444

8,063

45,646

Average Quality

AA-

AA

AA

Yield to Maturity (before expenses)

3.8%

3.9%

3.9%

Average Coupon

4.7%

5.0%

5.0%

Average Duration

6.7 years

7.2 years

8.3 years

Average Effective Maturity

8.3 years

9.8 years

13.3 years

Short-Term Reserves

3.5%

—

—

Average quality: Moody’s Investors Service.

 

 

Volatility Measures

 

 

 

Barclays

 

 

10 Year

Barclays

 

Municipal

Municipal

 

Bond Index

Bond Index

R-Squared

0.90

0.98

Beta

0.93

0.97

These measures show the degree and timing of the fund’s

fluctuations compared with the index over 36 months.

 

Distribution by Maturity (% of portfolio)

 

 

Under 1 Year

6.9%

1 to 5 Years

29.1

5 to 10 Years

41.9

10 to 20 Years

11.0

20 to 30 Years

9.3

Over 30 Years

1.8

 

 

 

 

Distribution by Credit Quality (% of portfolio)

 

 

AAA

20.3%

AA

54.0

A

16.5

BBB

7.3

Other

1.9

 

 

Investment Focus

 


 

1 The fund expense ratios shown are from the prospectus dated March 27, 2009, and represent estimated costs for the current fiscal year based on the fund’s current net assets. For the six months ended May 31, 2009, the fund’s expense ratios were 0.20% for the Investor Shares and 0.12% for the Admiral Shares.

 

 

 

27

Pennsylvania Long-Term Tax-Exempt Fund

 

Performance Summary

 

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.) Note, too, that 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.

 

Fiscal-Year Total Returns (%): November 30, 1998, Through May 31, 2009

 

 

Investor Shares

 

 

 

 

 

Barclays Capital

 

 

 

 

10 Year

 

 

 

 

Municipal Bond

 

 

 

 

Index

Fiscal Year

Capital Return

Income Return

Total Return

Total Return

1999

-6.72%

4.98%

-1.74%

-0.42%

2000

3.10

5.76

8.86

7.65

2001

3.46

5.33

8.79

8.22

2002

1.50

4.99

6.49

6.67

2003

2.68

4.62

7.30

6.88

2004

-1.27

4.59

3.32

4.03

2005

-1.44

4.54

3.10

3.01

2006

1.58

4.72

6.30

6.17

2007

-2.20

4.50

2.30

3.51

2008

-8.67

4.19

-4.48

-0.42

2009*

5.59

2.31

7.90

8.23

* Six months ended May 31, 2009.

 

 

 

Average Annual Total Returns: Periods Ended March 31, 2009

 

This table presents average annual total returns through the latest calendar quarter—rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information.

 

 

 

 

 

Ten Years

 

Inception Date

One Year

Five Years

Capital

Income

Total

Investor Shares

4/7/1986

1.47%

2.60%

-0.47%

4.81%

4.34%

Admiral Shares

5/14/2001

1.54

2.67

-0.421

4.711

4.291

1 Return since inception.

 

 

 

 

 

 

Vanguard fund total returns do not include the account service fee that may be applicable to certain accounts with balances below $10,000.

See Financial Highlights for dividend and capital gains information.

 

28

 

Pennsylvania Long-Term Tax-Exempt Fund

 

Financial Statements (unaudited)

 

Statement of Net Assets

As of May 31, 2009

 

The fund provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at www.sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

 

 

 

 

 

 

Face

Market

 

 

Maturity

 

Amount

Value¥

 

Coupon

Date

 

($000)

($000)

Tax-Exempt Municipal Bonds (99.5%)

 

 

 

 

 

Pennsylvania (95.5%)

 

 

 

 

 

Abington PA School Dist. GO

5.000%

4/1/32

(4)

6,495

6,551

Adams County PA GO

5.300%

5/15/11

(3)(Prere.)

10,240

11,090

Allegheny County PA GO

0.000%

4/1/10

(1)

2,000

1,974

Allegheny County PA GO

5.250%

5/1/11

(3)(Prere.)

3,000

3,242

Allegheny County PA GO

5.500%

5/1/11

(3)(Prere.)

445

482

Allegheny County PA GO

5.750%

5/1/11

(3)(Prere.)

730

795

Allegheny County PA GO

5.750%

11/1/11

(3)

995

1,064

Allegheny County PA GO

5.375%

11/1/12

(1)(Prere.)

2,645

2,989

Allegheny County PA GO

5.375%

11/1/12

(1)(Prere.)

2,000

2,260

Allegheny County PA GO

5.375%

11/1/12

(1)(Prere.)

2,880

3,255

Allegheny County PA GO

5.375%

11/1/12

(1)(Prere.)

3,725

4,210

Allegheny County PA GO

5.500%

11/1/14

(3)

605

633

Allegheny County PA GO

5.375%

11/1/16

(1)

4,100

4,489

Allegheny County PA GO

5.375%

11/1/17

(1)

3,600

3,941

Allegheny County PA GO

6.000%

7/1/23

(1)

5,745

6,248

Allegheny County PA GO

5.000%

11/1/32

(4)

3,500

3,514

Allegheny County PA Higher Educ.

 

 

 

 

 

Building Auth. (Carnegie Mellon Univ.)

5.125%

3/1/32

 

3,000

3,012

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

(Magee Women’s Hosp.)

6.000%

10/1/10

(1)

2,905

2,995

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

(Univ. of Pittsburgh Medical Center)

5.000%

6/15/13

 

2,000

2,117

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

(Univ. of Pittsburgh Medical Center)

5.000%

6/15/14

 

1,500

1,578

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

(Univ. of Pittsburgh Medical Center)

5.000%

9/1/14

 

25,000

26,342

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

(Univ. of Pittsburgh Medical Center)

5.000%

6/15/15

 

2,000

2,113

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

(Univ. of Pittsburgh Medical Center)

5.000%

6/15/18

 

7,000

7,210

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

(Univ. of Pittsburgh)

6.000%

7/1/26

(1)

4,625

4,953

Allegheny County PA Hosp. Dev. Auth. Rev.

 

 

 

 

 

(Univ. of Pittsburgh)

6.000%

7/1/27

(1)

9,325

9,977

Allegheny County PA IDA Health Care Rev.

 

 

 

 

 

(Vincentian Collaborative) VRDO

2.100%

6/5/09

LOC

7,725

7,725

Allegheny County PA Port Auth. Rev.

5.375%

3/1/12

(1)

4,965

5,259

Allegheny County PA Port Auth. Rev.

5.500%

3/1/14

(1)

2,355

2,472

Allegheny County PA Port Auth. Rev.

5.500%

3/1/16

(1)

1,500

1,562

29

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

 

Allegheny County PA Port Auth. Rev.

5.500%

3/1/17

(1)

2,750

2,855

 

Allegheny County PA Sanitation Auth. Sewer Rev.

5.500%

12/1/10

(1)(Prere.)

6,880

7,359

 

Allegheny County PA Sanitation Auth. Sewer Rev.

6.000%

12/1/10

(1)

1,500

1,587

 

Allegheny County PA Sanitation Auth. Sewer Rev.

6.000%

12/1/11

(1)

1,490

1,589

 

Allegheny County PA Sanitation Auth. Sewer Rev.

5.750%

12/1/12

(1)

1,180

1,250

 

Allegheny County PA Sanitation Auth. Sewer Rev.

5.375%

12/1/16

(1)

3,545

3,726

 

Allegheny County PA Sanitation Auth. Sewer Rev.

5.500%

12/1/16

(3)(ETM)

11,295

12,429

 

Allegheny County PA Sanitation Auth. Sewer Rev.

5.375%

12/1/18

(1)

15,000

15,621

 

Allegheny County PA Sanitation Auth. Sewer Rev.

5.000%

12/1/24

(1)

6,000

6,093

 

Allegheny County PA Sanitation Auth. Sewer Rev.

5.500%

12/1/30

(1)

2,150

2,186

 

Allegheny County PA Sanitation Auth. Sewer Rev.

5.000%

12/1/32

(1)

12,000

11,350

 

Annville Cleona PA School Dist.

6.000%

3/1/28

(4)

1,500

1,616

 

Annville Cleona PA School Dist.

6.000%

3/1/31

(4)

2,475

2,634

 

Beaver County PA IDA PCR (FirstEnergy) VRDO

0.250%

6/1/09

LOC

9,500

9,500

 

Bensalem Township PA School Dist. GO

5.250%

6/15/24

(1)

3,700

3,845

 

Berks County PA GO

0.000%

11/15/13

(1)

7,250

6,480

 

Berks County PA GO

0.000%

11/15/14

(1)

8,615

7,365

 

Berks County PA GO

0.000%

11/15/15

(1)

6,250

5,089

 

Berks County PA Hosp. Rev. (Reading Hosp.)

5.700%

10/1/14

(1)

4,500

4,870

 

Bethlehem PA Area School Dist.

5.375%

3/15/12

(3)(Prere.)

7,500

8,320

 

Blair County PA Hosp. Auth. Rev. (Altoona Hosp.)

5.500%

7/1/16

(2)

4,480

4,924

 

Bristol Borough PA School Dist. GO

5.250%

9/1/15

(4)(Prere.)

3,635

4,266

 

Bucks County PA IDA (Pennswood Village Project)

6.000%

10/1/12

(Prere.)

2,600

2,998

 

Carlisle PA Area School Dist. GO

5.375%

3/1/12

(1)(Prere.)

1,725

1,911

 

Carlisle PA Area School Dist. GO

5.375%

3/1/12

(1)(Prere.)

1,635

1,811

 

Carlisle PA Area School Dist. GO

5.375%

3/1/12

(1)(Prere.)

1,550

1,717

 

Carlisle PA Area School Dist. GO

5.375%

3/1/12

(1)(Prere.)

1,820

2,016

 

Catholic Health East Pennsylvania

 

 

 

 

 

 

Health Systems Rev.

5.375%

11/15/14

(Prere.)

3,000

3,497

 

Catholic Health East Pennsylvania

 

 

 

 

 

 

Health Systems Rev.

5.500%

11/15/14

(Prere.)

1,400

1,641

 

Central Bucks PA School Dist.

5.500%

5/15/12

(3)(Prere.)

5,540

6,200

 

Central Bucks PA School Dist.

5.500%

5/15/12

(3)(Prere.)

3,785

4,236

 

Central Bucks PA School Dist.

5.500%

5/15/12

(3)(Prere.)

2,400

2,686

 

Central Bucks PA School Dist.

5.500%

5/15/12

(3)(Prere.)

1,500

1,679

 

Central Bucks PA School Dist.

5.000%

5/15/24

 

11,750

12,796

 

Chambersburg PA Area School Dist. GO

5.250%

3/1/29

(1)

3,805

3,829

 

Chester County PA GO

5.000%

7/15/26

 

4,345

4,662

1

Chester County PA GO

5.000%

7/15/27

 

5,000

5,330

 

Chester County PA Health & Educ.

 

 

 

 

 

 

Fac. Auth. Rev. (Devereux Foundation)

5.000%

11/1/31

 

4,500

3,686

 

Chester County PA Health & Educ.

 

 

 

 

 

 

Fac. Auth. Rev. (Jefferson Health System)

5.250%

5/15/22

(2)

33,580

33,761

 

Chester County PA School Auth. Rev.

5.000%

4/1/23

(2)

2,670

2,722

 

Chester County PA School Auth. Rev.

5.000%

4/1/24

(2)

1,000

1,015

 

Chester County PA School Auth. Rev.

5.000%

4/1/26

(2)

1,575

1,578

 

Clarion County PA IDA Auth. Rev.

5.000%

7/1/32

(10)

4,980

3,997

 

Clarion County PA IDA Auth. Rev.

5.000%

7/1/37

(10)

6,360

4,907

 

Coatesville PA School Dist. GO

5.250%

8/15/14

(4)(Prere.)

6,645

7,747

 

Commonwealth Financing Auth. Pennsylvania Rev.

5.250%

6/1/23

(1)

13,535

14,180

 

Cumberland County PA Muni. Auth.

 

 

 

 

 

 

College Rev. (Dickinson College)

5.500%

11/1/10

(2)(Prere.)

3,230

3,448

 

Cumberland County PA Muni. Auth. Rev.

7.250%

1/1/13

(Prere.)

7,360

8,774

 

Cumberland County PA Muni. Auth. Rev.

 

 

 

 

 

 

(Diakon Lutheran Ministries)

5.000%

1/1/27

 

2,700

2,115

30

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

 

Cumberland County PA Muni. Auth. Rev.

 

 

 

 

 

 

(Diakon Lutheran Ministries)

5.000%

1/1/36

 

6,750

4,853

 

Dallas PA School Dist. GO

5.000%

4/1/29

(11)

5,820

5,712

 

Danville PA Area School Dist. GO

5.000%

5/1/37

(4)

7,970

7,958

 

Dauphin County PA General Auth.

 

 

 

 

 

 

Health System Rev. (Pinnacle Health)

5.500%

8/15/28

(1)(ETM)

9,415

11,086

 

Dauphin County PA General Auth. Hosp. Rev.

 

 

 

 

 

 

(West Pennsylvania Hosp.)

5.500%

7/1/13

(1)(ETM)

5,000

5,377

 

Delaware County PA Auth. Rev.

 

 

 

 

 

 

(Catholic Health East)

5.250%

11/15/12

(2)

3,300

3,354

 

Delaware County PA Auth. Rev.

 

 

 

 

 

 

(Catholic Health East)

5.250%

11/15/13

(2)

4,665

4,727

 

Delaware County PA Auth. Univ. Rev.

 

 

 

 

 

 

(Villanova Univ.)

5.000%

8/1/24

(1)

4,000

4,059

 

Delaware County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Crozer Keystone Obligated Group)

5.000%

12/15/31

 

10,000

7,090

 

Delaware County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Crozer-Chester Medical Center)

5.300%

12/1/27

 

8,905

6,873

 

Delaware County PA IDA PCR

 

 

 

 

 

 

(BP Exploration & Oil) VRDO

0.300%

6/1/09

LOC

3,400

3,400

 

Delaware County PA IDA PCR (PECO Energy Co.)

4.000%

12/1/12

 

13,000

13,456

 

Delaware County PA IDA Solid Waste Rev.

 

 

 

 

 

 

(Scott Paper Co.) VRDO

0.650%

6/5/09

 

6,780

6,780

 

Delaware County PA Regional Water

 

 

 

 

 

 

Quality Control Auth. Rev.

5.500%

11/1/11

(3)(Prere.)

2,405

2,659

 

Delaware County PA Regional Water

 

 

 

 

 

 

Quality Control Auth. Rev.

5.500%

11/1/11

(3)(Prere.)

2,685

2,968

 

Delaware River Joint Toll Bridge Comm.

 

 

 

 

 

 

Pennsylvania & New Jersey Rev.

5.250%

7/1/19

(1)

1,645

1,794

 

Delaware River Joint Toll Bridge Comm.

 

 

 

 

 

 

Pennsylvania & New Jersey Rev.

5.500%

7/1/19

(1)

4,835

5,364

 

Delaware River Joint Toll Bridge Comm.

 

 

 

 

 

 

Pennsylvania & New Jersey Rev.

5.250%

7/1/20

(1)

1,735

1,871

 

Delaware River Joint Toll Bridge Comm.

 

 

 

 

 

 

Pennsylvania & New Jersey Rev.

5.500%

7/1/20

(1)

5,105

5,638

 

Delaware River Joint Toll Bridge Comm.

 

 

 

 

 

 

Pennsylvania & New Jersey Rev.

5.250%

7/1/21

(1)

1,825

1,946

 

Delaware River Joint Toll Bridge Comm.

 

 

 

 

 

 

Pennsylvania & New Jersey Rev.

5.250%

7/1/22

(1)

1,920

2,030

 

Delaware River Joint Toll Bridge Comm.

 

 

 

 

 

 

Pennsylvania & New Jersey Rev.

5.250%

7/1/23

(1)

2,020

2,085

 

Delaware River Port Auth. Pennsylvania

 

 

 

 

 

 

& New Jersey Rev.

5.700%

1/1/23

(4)

8,345

8,383

 

Doylestown PA Hosp. Auth. Hosp. Rev.

5.000%

7/1/20

(12)

5,060

5,104

 

Doylestown PA Hosp. Auth. Hosp. Rev.

5.000%

7/1/21

(12)

3,000

3,007

 

Doylestown PA Hosp. Auth. Hosp. Rev.

5.000%

7/1/22

(12)

3,455

3,437

 

East Stroudsburg PA Area School Dist. GO

5.000%

9/1/29

(4)

7,085

7,248

 

Erie County PA GO

5.000%

9/1/15

(3)(Prere.)

5,525

6,425

 

Erie County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Hamot Health Foundation)

5.000%

11/1/35

(11)

7,000

5,875

 

Erie PA School Dist. GO

0.000%

9/1/10

(4)

5,665

5,553

 

Erie PA School Dist. GO

0.000%

9/1/11

(4)

5,780

5,516

 

Erie PA School Dist. GO

0.000%

5/1/16

(1)(ETM)

3,175

2,548

 

Erie PA School Dist. GO

0.000%

9/1/18

(4)

830

572

2

Geisinger Health System Auth. of Pennsylvania Rev.

 

 

 

 

 

 

(Penn State Geisinger Health System)

5.125%

6/1/34

 

5,000

4,907

 

31

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value¥

 

 

Coupon

Date

 

($000)

($000)

2

Geisinger Health System Auth. of Pennsylvania Rev.

 

 

 

 

 

 

(Penn State Geisinger Health System)

5.250%

6/1/39

 

8,000

7,928

 

Geisinger Health System Auth. of Pennsylvania Rev.

 

 

 

 

 

 

(Penn State Geisinger Health System) VRDO

0.100%

6/1/09

 

5,205

5,205

 

Geisinger Health System Auth. of

 

 

 

 

 

 

Pennsylvania Rev. (Penn State Geisinger

 

 

 

 

 

 

Health System) VRDO

0.200%

6/1/09

 

5,600

5,600

 

Geisinger Health System Auth. of

 

 

 

 

 

 

Pennsylvania Rev. (Penn State Geisinger

 

 

 

 

 

 

Health System) VRDO

0.200%

6/1/09

 

12,000

12,000

 

Hazleton PA Area School Dist. GO

5.500%

3/1/11

(1)

3,740

3,956

 

Hazleton PA Area School Dist. GO

5.750%

3/1/12

(1)

1,420

1,542

 

Hazleton PA Area School Dist. GO

6.000%

3/1/16

(1)

18,245

20,219

 

Hazleton PA Area School Dist. GO

0.000%

3/1/17

(1)

4,425

3,135

 

Hazleton PA Area School Dist. GO

0.000%

3/1/22

(1)

5,265

2,707

 

Hempfield PA Area School Dist.

 

 

 

 

 

 

(Westmoreland County) GO

5.000%

9/15/15

(3)(Prere.)

5,030

5,853

 

Lackawanna County PA GO

5.000%

9/15/29

(2)

1,975

1,943

 

Lackawanna County PA GO

5.000%

9/15/29

(4)

3,745

3,821

 

Lake Lehman PA School Dist. GO

0.000%

4/1/14

(1)

1,290

1,092

 

Lake Lehman PA School Dist. GO

0.000%

4/1/15

(1)

1,295

1,041

 

Lake Lehman PA School Dist. GO

0.000%

4/1/16

(1)

1,310

999

 

Lake Lehman PA School Dist. GO

0.000%

4/1/17

(1)

1,315

948

 

Lake Lehman PA School Dist. GO

0.000%

4/1/18

(1)

1,000

678

 

Lancaster County PA GO

5.500%

11/1/16

(1)

1,025

1,113

 

Lancaster County PA GO

5.500%

11/1/17

(1)

1,060

1,151

 

Lancaster County PA GO

5.500%

11/1/18

(1)

1,120

1,198

 

Lancaster County PA GO

5.500%

11/1/19

(1)

1,175

1,257

 

Lancaster County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Lancaster General Hosp.)

5.000%

3/15/26

 

9,205

9,163

 

Lancaster County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Lancaster General Hosp.)

5.000%

3/15/36

 

12,370

11,589

 

Lancaster County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Lancaster General Hosp.) VRDO

0.180%

6/1/09

LOC

6,100

6,100

 

Lancaster County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Willow Valley Retirement Project)

5.875%

6/1/21

 

1,000

1,015

 

Lancaster County PA Hosp. Auth. Rev.

 

 

 

 

 

 

(Willow Valley Retirement Project)

5.875%

6/1/31

 

6,000

5,831

 

Lancaster PA Higher Educ. Auth. Rev.

 

 

 

 

 

 

(Franklin & Marshall College)

5.000%

4/15/22

 

1,135

1,176

 

Lancaster PA Higher Educ. Auth. Rev.

 

 

 

 

 

 

(Franklin & Marshall College)

5.000%

4/15/27

 

2,775

2,791

 

Lancaster PA Higher Educ. Auth. Rev.

 

 

 

 

 

 

(Franklin & Marshall College)

5.000%

4/15/37

 

4,000

3,832

 

Latrobe PA IDA (Saint Vincent College)

5.600%

5/1/21

 

1,635

1,604

 

Latrobe PA IDA (Saint Vincent College)

5.700%

5/1/31

 

2,165

1,936

 

Lebanon County Health Fac. Auth. Rev.

 

 

 

 

 

 

(Good Samaritan)

6.000%

11/15/35

 

10,500

8,546

 

Lehigh County PA General Purpose Hosp.

 

 

 

 

 

 

Auth. Rev. (Lehigh Valley Health Network)

5.375%

7/1/14

(4)

900

944

 

Lehigh County PA General Purpose Hosp.

 

 

 

 

 

 

Auth. Rev. (Lehigh Valley Health Network)

7.000%

7/1/16

(1)

4,415

5,123

 

Lehigh County PA General Purpose Hosp.

 

 

 

 

 

 

Auth. Rev. (Lehigh Valley Health Network)

5.000%

7/1/35

(4)

10,000

9,285

 

Lower Merion PA School Dist. GO

5.000%

9/1/28

 

7,845

8,318

 

Lower Merion PA School Dist. GO

5.000%

9/1/30

 

8,670

9,100

32

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

Face

Market

 

 

Maturity

 

Amount

Value¥

 

Coupon

Date

 

($000)

($000)

Lower Merion PA School Dist. GO

5.000%

9/1/32

 

5,000

5,195

Luzerne County PA GO

0.000%

11/15/12

(1)(Prere.)

2,360

1,752

Luzerne County PA GO

0.000%

11/15/12

(1)(Prere.)

2,390

1,667

Luzerne County PA GO

5.250%

12/15/21

(1)

5,320

5,744

Lycoming County PA Auth. College Rev.

 

 

 

 

 

(PA College of Technology)

5.250%

10/1/27

(12)

5,395

5,576

Lycoming County PA Auth. College Rev.

 

 

 

 

 

(PA College of Technology)

5.500%

10/1/37

(12)

6,650

6,752

McKeesport PA Area School Dist. GO

0.000%

10/1/09

(1)

2,020

2,010

McKeesport PA Area School Dist. GO

0.000%

10/1/10

(1)

1,840

1,793

McKeesport PA Area School Dist. GO

0.000%

10/1/11

(1)

1,835

1,735

McKeesport PA Area School Dist. GO

0.000%

10/1/14

(1)

2,040

1,711

McKeesport PA Area School Dist. GO

0.000%

10/1/15

(1)

2,040

1,628

McKeesport PA Area School Dist. GO

0.000%

10/1/16

(1)

4,655

3,518

McKeesport PA Area School Dist. GO

0.000%

10/1/18

(2)(ETM)

425

303

McKeesport PA Area School Dist. GO

0.000%

10/1/18

(2)

2,650

1,807

Monroe County PA Hosp. Auth. Rev.

 

 

 

 

 

(Pocono Medical Center)

5.000%

1/1/27

 

2,000

1,782

Monroe County PA Hosp. Auth. Rev.

 

 

 

 

 

(Pocono Medical Center)

5.125%

1/1/37

 

3,000

2,538

Monroe County PA Hosp. Auth. Rev.

 

 

 

 

 

(Pocono Medical Center)

5.250%

1/1/43

 

6,450

5,516

Montgomery County PA GO

5.000%

7/15/19

 

8,800

8,821

Montgomery County PA GO

5.000%

10/15/28

 

13,235

13,960

Montgomery County PA GO

5.000%

10/15/31

 

6,450

6,712

Montgomery County PA GO VRDO

0.150%

6/1/09

 

10,195

10,195

Montgomery County PA Higher Educ.

 

 

 

 

 

& Health Auth. Rev. (Catholic Health East)

5.375%

11/15/14

(Prere.)

2,175

2,545

Montgomery County PA Higher Educ.

 

 

 

 

 

& Health Auth. Rev. (Dickinson College)

5.000%

5/1/31

(11)

5,750

5,593

Montgomery County PA Higher Educ. & Health

 

 

 

 

 

Auth. Rev. (Holy Redeemer Health System)

5.250%

1/1/36

 

17,500

12,436

Montgomery County PA IDA Rev. (Hill School)

5.000%

8/15/25

(1)

6,500

6,697

Montgomery County PA IDA Rev. (Hill School)

5.000%

8/15/26

(1)

3,550

3,641

Montgomery County PA IDA Rev. (Hill School)

5.000%

8/15/27

(1)

3,300

3,365

Moon Area School Dist. PA GO

5.000%

11/15/28

(4)

5,000

5,198

Mount Lebanon PA School Dist. GO

5.000%

2/15/13

(1)(Prere.)

9,280

10,439

North Pocono PA School Dist. GO

5.000%

3/15/26

(1)

4,035

4,056

Northampton County PA General Purpose Auth.

 

 

 

 

 

Univ. Rev. (Lehigh Univ.)

5.000%

11/15/39

 

2,595

2,599

Northampton County PA General Purpose Auth.

 

 

 

 

 

Univ. Rev. (Saint Lukes Hosp. Project)

5.375%

8/15/28

 

5,000

4,448

Northampton County PA General Purpose Auth.

 

 

 

 

 

Univ. Rev. (Saint Lukes Hosp. Project)

5.500%

8/15/35

 

2,500

2,134

Northampton County PA General Purpose Auth.

 

 

 

 

 

Univ. Rev. (Saint Lukes Hosp. Project)

5.500%

8/15/40

 

5,000

4,201

Norwin PA School Dist. GO

3.250%

4/1/33

(4)

10,485

7,450

Owen J. Roberts School Dist. Pennsylvania GO

5.500%

8/15/17

(4)

1,495

1,640

Owen J. Roberts School Dist. Pennsylvania GO

5.000%

5/15/31

(4)

8,000

8,150

Owen J. Roberts School Dist. Pennsylvania GO

5.000%

5/15/35

(4)

5,000

5,047

Parkland PA School Dist. GO

5.375%

9/1/15

(1)

3,050

3,398

Parkland PA School Dist. GO

5.375%

9/1/16

(1)

2,000

2,234

Pennsbury PA School Dist. GO

5.250%

8/1/24

(4)

9,135

9,544

Pennsylvania Econ. Dev. Financing Auth.

 

 

 

 

 

Fac. Rev. (American Water Company Project)

6.200%

4/1/39

 

5,000

5,220

Pennsylvania GO

5.000%

10/1/10

(1)

22,485

23,746

33

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

Face

Market

 

 

Maturity

 

Amount

Value¥

 

Coupon

Date

 

($000)

($000)

Pennsylvania GO

6.000%

1/15/11

 

3,000

3,122

Pennsylvania GO

5.000%

8/1/11

 

17,000

18,419

Pennsylvania GO

5.250%

10/15/11

 

11,200

11,926

Pennsylvania GO

5.000%

8/1/12

 

20,705

22,973

Pennsylvania GO

5.000%

7/1/13

(1)

3,690

4,164

Pennsylvania GO

5.000%

9/1/13

 

1,200

1,358

Pennsylvania GO

5.500%

2/1/14

(1)

2,000

2,301

Pennsylvania GO

5.000%

9/1/14

(4)

15,000

17,126

Pennsylvania GO

5.250%

7/1/15

 

25,000

29,029

Pennsylvania GO

5.000%

8/1/17

 

10,000

11,627

Pennsylvania GO

5.000%

11/1/17

 

2,000

2,329

Pennsylvania GO

5.375%

7/1/21

 

16,000

19,076

Pennsylvania GO

5.000%

1/1/22

 

18,055

19,614

Pennsylvania GO

5.000%

8/1/22

 

33,825

37,289

Pennsylvania GO

5.000%

1/1/26

 

40,450

42,819

Pennsylvania GO

5.000%

3/15/27

 

5,655

6,071

Pennsylvania Higher Educ. Assistance Agency Rev.

6.125%

12/15/10

(1)(Prere.)

2,000

2,165

Pennsylvania Higher Educ. Fac. Auth. Rev.

5.500%

6/15/17

(2)

935

970

Pennsylvania Higher Educ. Fac. Auth. Rev.

5.625%

6/15/19

(2)

1,160

1,198

Pennsylvania Higher Educ. Fac. Auth. Rev.

5.000%

11/1/37

(12)

5,745

5,651

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Bryn Mawr College)

5.250%

12/1/12

(2)

11,120

12,384

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Bryn Mawr College)

5.000%

12/1/37

(2)

14,170

13,772

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Drexel Univ.)

5.000%

5/1/32

(1)

4,950

4,685

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Drexel Univ.)

5.000%

5/1/37

(1)

2,300

2,252

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Foundation for Indiana Univ. of

 

 

 

 

 

Pennsylvania Student Housing)

1.259%

7/1/17

(10)

6,500

4,571

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Foundation for Indiana Univ. of

 

 

 

 

 

Pennsylvania Student Housing)

5.125%

7/1/39

(10)

17,130

12,281

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(La Salle Univ.)

5.250%

5/1/27

 

3,000

2,673

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(La Salle Univ.)

5.000%

5/1/37

 

3,250

2,615

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Philadelphia Univ.)

5.125%

6/1/25

 

3,500

2,927

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Philadelphia Univ.)

5.000%

11/1/25

(12)

2,285

2,383

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Philadelphia Univ.)

5.000%

11/1/27

(12)

1,800

1,850

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Philadelphia Univ.)

5.250%

6/1/32

 

6,350

5,040

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Slippery Rock Univ. Foundation)

5.000%

7/1/31

(10)

10,460

7,896

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Slippery Rock Univ. Foundation)

5.000%

7/1/37

(10)

3,500

2,484

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Slippery Rock Univ. Foundation)

5.000%

7/1/39

(10)

10,000

7,157

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Temple Univ.)

5.250%

4/1/11

(1)

1,225

1,235

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Temple Univ.)

5.000%

4/1/23

(1)

12,200

12,708

34

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

 

Face

Market

 

 

Maturity

 

Amount

Value¥

 

Coupon

Date

 

($000)

($000)

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Temple Univ.)

5.000%

4/1/24

(1)

12,680

13,132

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Thomas Jefferson Univ.)

5.375%

1/1/13

(Prere.)

4,435

4,974

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Thomas Jefferson Univ.)

5.000%

9/1/39

(2)

9,000

8,294

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Univ. of Pennsylvania Health System) VRDO

0.200%

6/5/09

LOC

7,450

7,450

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(Univ. of Scranton)

5.000%

11/1/28

(10)

4,080

3,991

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(UPMC Health Systems)

6.250%

1/15/16

 

3,120

3,367

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(UPMC Health Systems)

6.000%

1/15/22

 

5,000

5,136

Pennsylvania Higher Educ. Fac. Auth. Rev.

 

 

 

 

 

(UPMC Health Systems)

6.000%

1/15/31

 

5,000

5,113

Pennsylvania Higher Educ. Fac.

 

 

 

 

 

Auth. Rev. (Widener)

5.000%

7/15/20

 

2,360

2,151

Pennsylvania Higher Educ. Fac.

 

 

 

 

 

Auth. Rev. (Widener)

5.000%

7/15/26

 

1,200

1,036

Pennsylvania Higher Educ. Fac.

 

 

 

 

 

Auth. Rev. (Widener)

5.400%

7/15/36

 

3,000

2,512

Pennsylvania Higher Educ. Fac.

 

 

 

 

 

Auth. Rev. (Widener)

5.000%

7/15/39

 

3,000

2,392

Pennsylvania Higher Educ. Fac. Auth. Rev. PUT

5.000%

5/1/11

LOC

9,120

9,348

Pennsylvania Housing Finance Agency Rev.

5.400%

10/1/33

 

25,000

25,536

Pennsylvania IDA Rev. (Econ. Dev.)

5.500%

7/1/12

(2)(Prere.)

575

650

Pennsylvania IDA Rev. (Econ. Dev.)

5.500%

7/1/17

(2)

7,000

7,471

Pennsylvania IDA Rev. (Econ. Dev.)

5.500%

7/1/18

(2)

7,630

8,095

Pennsylvania IDA Rev. (Econ. Dev.)

5.500%

7/1/19

(2)

10,040

10,589

Pennsylvania IDA Rev. (Econ. Dev.)

5.500%

7/1/20

(2)

4,495

4,725

Pennsylvania IDA Rev. (Econ. Dev.)

5.500%

7/1/21

(2)

8,130

8,520

Pennsylvania IDA Rev. (Econ. Dev.)

5.500%

7/1/23

 

20,000

21,385

Pennsylvania Intergovernmental

 

 

 

 

 

Cooperation Auth. Rev.

5.250%

6/15/17

(1)

7,830

7,853

Pennsylvania Public School Building Auth.

 

 

 

 

 

Lease Rev. (School Dist. of Philadelphia)

5.000%

6/1/27

(4)

12,880

13,237

Pennsylvania Public School Building Auth.

 

 

 

 

 

Lease Rev. (School Dist. of Philadelphia)

5.000%

6/1/31

(4)

18,305

18,384

Pennsylvania State Univ. Rev.

5.250%

8/15/12

 

5,980

6,658

Pennsylvania State Univ. Rev.

5.000%

3/1/22

 

1,250

1,392

Pennsylvania State Univ. Rev.

5.000%

3/1/23

 

2,020

2,227

Pennsylvania State Univ. Rev.

5.000%

9/1/24

 

10,625

11,168

Pennsylvania State Univ. Rev.

5.000%

9/1/24

 

3,000

3,179

Pennsylvania State Univ. Rev.

5.250%

8/15/25

 

5,360

6,153

Pennsylvania State Univ. Rev.

5.000%

3/1/26

 

3,300

3,548

Pennsylvania State Univ. Rev.

5.000%

3/1/28

 

1,000

1,060

Pennsylvania State Univ. Rev.

5.000%

9/1/29

 

2,500

2,582

Pennsylvania State Univ. Rev.

5.000%

9/1/29

 

7,625

7,841

Pennsylvania Turnpike Comm.

 

 

 

 

 

Oil Franchise Tax Rev.

5.000%

12/1/13

(1)(Prere.)

6,000

6,842

Pennsylvania Turnpike Comm.

 

 

 

 

 

Oil Franchise Tax Rev.

5.000%

12/1/26

(2)

4,000

4,047

Pennsylvania Turnpike Comm.

 

 

 

 

 

Oil Franchise Tax Rev.

5.000%

12/1/27

(2)

3,000

3,019

35

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

Face

Market

 

 

Maturity

 

Amount

Value¥

 

Coupon

Date

 

($000)

($000)

Pennsylvania Turnpike Comm.

 

 

 

 

 

Registration Fee Rev. VRDO

1.100%

6/5/09

(4)

8,475

8,475

Pennsylvania Turnpike Comm. Rev.

3.000%

6/1/10

(12)

4,000

4,091

Pennsylvania Turnpike Comm. Rev.

5.375%

7/15/11

(2)(Prere.)

1,505

1,657

Pennsylvania Turnpike Comm. Rev.

5.375%

7/15/11

(2)(Prere.)

2,500

2,752

Pennsylvania Turnpike Comm. Rev.

5.375%

7/15/11

(2)(Prere.)

1,000

1,101

Pennsylvania Turnpike Comm. Rev.

3.000%

6/1/12

(12)

2,015

2,078

Pennsylvania Turnpike Comm. Rev.

5.625%

6/1/12

(1)

9,000

9,712

Pennsylvania Turnpike Comm. Rev.

3.000%

6/1/13

(12)

2,500

2,573

Pennsylvania Turnpike Comm. Rev.

4.000%

6/1/14

(12)

1,565

1,669

Pennsylvania Turnpike Comm. Rev.

5.250%

7/15/27

(4)

4,000

4,459

Pennsylvania Turnpike Comm. Rev.

5.375%

6/1/28

 

12,785

13,351

Pennsylvania Turnpike Comm. Rev.

5.250%

7/15/28

(4)

9,375

10,437

Pennsylvania Turnpike Comm. Rev.

5.500%

12/1/31

(2)

17,610

18,004

Pennsylvania Turnpike Comm. Rev.

5.250%

12/1/32

(2)

16,000

16,244

Pennsylvania Turnpike Comm. Rev.

5.500%

6/1/33

 

17,920

18,735

Pennsylvania Turnpike Comm. Rev.

5.250%

6/1/36

 

12,435

12,622

Pennsylvania Turnpike Comm. Rev.

5.000%

6/1/38

(12)

6,340

6,404

Pennsylvania Turnpike Comm. Rev.

6.250%

6/1/38

(12)

19,595

21,774

Pennsylvania Turnpike Comm. Rev.

5.000%

6/1/39

(12)

22,525

22,737

Philadelphia PA Airport Parking Auth.

5.000%

9/1/13

 

3,260

3,511

Philadelphia PA Airport Parking Auth.

5.125%

2/15/24

(2)

1,045

1,047

Philadelphia PA Airport Parking Auth.

5.250%

9/1/29

(4)

3,530

3,532

Philadelphia PA Gas Works Rev.

5.250%

7/1/11

(4)

3,965

3,976

Philadelphia PA Gas Works Rev.

5.250%

8/1/11

(4)(Prere.)

8,000

8,716

Philadelphia PA Gas Works Rev.

5.375%

7/1/12

(4)

4,000

4,010

Philadelphia PA Gas Works Rev.

5.375%

7/1/14

(4)

4,310

4,318

Philadelphia PA Gas Works Rev.

5.375%

7/1/16

(4)

13,280

14,782

Philadelphia PA Gas Works Rev.

5.375%

7/1/18

(4)

11,555

12,797

Philadelphia PA Gas Works Rev.

5.000%

10/1/37

(2)

3,000

2,464

Philadelphia PA GO

5.250%

3/15/11

(4)(Prere.)

7,460

8,024

Philadelphia PA GO

5.250%

3/15/11

(4)(Prere.)

4,775

5,136

Philadelphia PA GO

5.250%

3/15/11

(4)(Prere.)

9,155

9,847

Philadelphia PA GO

5.250%

3/15/11

(4)(Prere.)

2,135

2,296

Philadelphia PA GO

5.000%

12/15/17

(4)

5,555

6,036

Philadelphia PA GO

5.000%

8/1/18

(1)

6,170

6,295

Philadelphia PA GO

5.000%

8/1/19

(1)

7,735

7,822

Philadelphia PA GO

5.000%

8/1/20

(1)

8,005

8,057

Philadelphia PA GO

5.000%

8/1/21

(1)

6,235

6,264

Philadelphia PA GO

5.000%

8/1/27

(11)

12,160

11,655

Philadelphia PA GO

7.125%

7/15/38

(12)

3,500

3,874

Philadelphia PA Hosp. & Higher Educ. Fac. Auth.

 

 

 

 

 

Rev. (Children’s Hosp. of Philadelphia) VRDO

0.200%

6/1/09

 

1,500

1,500

Philadelphia PA Hosp. & Higher Educ. Fac. Auth.

 

 

 

 

 

Rev. (Children’s Hosp. of Philadelphia) VRDO

0.200%

6/1/09

 

3,100

3,100

Philadelphia PA Hosp. & Higher Educ. Fac. Auth.

 

 

 

 

 

Rev. (Children’s Hosp. of Philadelphia) VRDO

0.200%

6/1/09

 

5,000

5,000

Philadelphia PA Hosp. & Higher Educ. Fac. Auth.

 

 

 

 

 

Rev. (Jefferson Health System)

5.125%

5/15/18

(2)

5,700

5,732

Philadelphia PA Hosp. & Higher Educ. Fac. Auth.

 

 

 

 

 

Rev. (Temple University Health System)

5.500%

7/1/30

 

5,000

3,940

Philadelphia PA IDA Rev.

 

 

 

 

 

(Philadelphia Airport System)

5.750%

6/15/10

(1)

4,440

4,454

Philadelphia PA IDA Rev.

 

 

 

 

 

(Philadelphia Airport System)

5.250%

6/15/15

(1)

5,695

5,704

Philadelphia PA Redev. Auth. Rev.

5.500%

4/15/15

(1)

3,000

3,137

36

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

Face

Market

 

 

Maturity

 

Amount

Value¥

 

Coupon

Date

 

($000)

($000)

Philadelphia PA Redev. Auth. Rev.

5.500%

4/15/17

(1)

2,255

2,335

Philadelphia PA Redev. Auth. Rev.

5.500%

4/15/19

(1)

2,815

2,887

Philadelphia PA Redev. Auth. Rev.

5.500%

4/15/20

(1)

2,000

2,045

Philadelphia PA Redev. Auth. Rev.

5.500%

4/15/22

(1)

5,275

5,357

Philadelphia PA School Dist. GO

5.250%

2/1/12

(4)

1,000

1,090

Philadelphia PA School Dist. GO

5.500%

2/1/12

(4)(Prere.)

1,800

1,989

Philadelphia PA School Dist. GO

5.500%

2/1/12

(4)(Prere.)

2,500

2,763

Philadelphia PA School Dist. GO

5.500%

2/1/12

(4)(Prere.)

2,000

2,210

Philadelphia PA School Dist. GO

5.500%

2/1/12

(4)(Prere.)

2,000

2,210

Philadelphia PA School Dist. GO

5.500%

2/1/12

(4)(Prere.)

1,000

1,105

Philadelphia PA School Dist. GO

5.500%

2/1/12

(4)(Prere.)

6,200

6,852

Philadelphia PA School Dist. GO

5.625%

8/1/12

(3)(Prere.)

1,000

1,128

Philadelphia PA School Dist. GO

5.625%

8/1/12

(3)(Prere.)

6,500

7,330

Philadelphia PA School Dist. GO

5.625%

8/1/12

(3)(Prere.)

6,000

6,766

Philadelphia PA School Dist. GO

5.625%

8/1/12

(3)(Prere.)

1,000

1,128

Philadelphia PA School Dist. GO

5.625%

8/1/12

(3)(Prere.)

10,235

11,541

Philadelphia PA School Dist. GO

5.625%

8/1/12

(3)(Prere.)

3,500

3,947

Philadelphia PA School Dist. GO

5.000%

6/1/26

(1)

5,000

5,110

Philadelphia PA School Dist. GO

6.000%

9/1/38

 

20,000

21,162

Philadelphia PA Water & Waste Water Rev.

7.000%

6/15/11

(1)

35,685

39,003

Philadelphia PA Water & Waste Water Rev.

6.250%

8/1/11

(1)

3,750

4,060

Philadelphia PA Water & Waste Water Rev.

5.250%

11/1/16

(1)

5,040

5,314

Philadelphia PA Water & Waste Water Rev.

5.250%

11/1/17

(1)

5,460

5,723

Philadelphia PA Water & Waste Water Rev.

5.600%

8/1/18

(1)(ETM)

925

1,084

Philadelphia PA Water & Waste Water Rev.

5.375%

11/1/19

(1)

4,155

4,352

Philadelphia PA Water & Waste Water Rev.

5.250%

1/1/32

 

5,000

5,004

Philadelphia PA Water & Waste Water Rev.

5.250%

1/1/36

 

3,000

2,953

Pittsburgh PA GO

5.500%

3/1/12

(2)(Prere.)

5,330

5,912

Pittsburgh PA GO

5.500%

3/1/12

(2)(Prere.)

2,015

2,235

Pittsburgh PA GO

5.500%

9/1/13

(2)

5,635

5,756

Pittsburgh PA GO

5.500%

9/1/14

(2)

12,000

12,806

Pittsburgh PA GO

5.500%

9/1/15

(2)

2,125

2,153

Pittsburgh PA School Dist. GO

0.000%

8/1/09

(2)

4,000

3,990

Pittsburgh PA School Dist. GO

5.375%

9/1/14

(4)

1,755

1,985

Pittsburgh PA School Dist. GO

5.500%

9/1/16

(4)

4,000

4,603

Pittsburgh PA School Dist. GO

5.500%

9/1/18

(4)

2,880

3,320

Pittsburgh PA Water & Sewer Auth. Rev.

5.125%

6/1/12

(2)(Prere.)

3,000

3,287

Pittsburgh PA Water & Sewer Auth. Rev.

7.250%

9/1/14

(3)(ETM)

17,070

19,536

Pittsburgh PA Water & Sewer Auth. Rev.

0.000%

9/1/27

(3)(ETM)

1,935

783

Pittsburgh PA Water & Sewer Auth. Rev.

0.000%

9/1/27

(3)

10,830

3,674

Pittsburgh PA Water & Sewer Auth. Rev.

0.000%

9/1/28

(3)(ETM)

1,365

518

Pittsburgh PA Water & Sewer Auth. Rev.

0.000%

9/1/28

(3)

7,600

2,391

Pittsburgh PA Water & Sewer Auth. Rev.

0.000%

9/1/29

(3)(ETM)

4,725

1,687

Pittsburgh PA Water & Sewer Auth. Rev.

0.000%

9/1/29

(3)

26,930

7,886

Pocono Mountain PA School Dist. GO

5.000%

9/1/31

(4)

9,000

9,022

Radnor Township PA School Dist.

5.000%

8/15/15

(4)(Prere.)

835

971

Radnor Township PA School Dist.

5.000%

2/15/35

(4)

1,665

1,670

Reading PA School Dist. GO

0.000%

1/15/15

(1)

9,260

7,113

Reading PA School Dist. GO

0.000%

1/15/16

(1)

9,270

6,718

Reading PA School Dist. GO

5.000%

1/15/29

(4)

6,120

6,223

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

5.750%

12/1/11

(Prere.)

2,225

2,491

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

5.875%

12/1/11

(Prere.)

9,660

10,845

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/11

(Prere.)

1,480

1,675

37

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

Face

Market

 

 

Maturity

 

Amount

Value¥

 

Coupon

Date

 

($000)

($000)

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/11

(Prere.)

1,425

1,613

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/11

(Prere.)

1,515

1,715

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/11

(Prere.)

2,390

2,705

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/11

(Prere.)

4,915

5,563

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/11

(Prere.)

1,850

2,094

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/13

 

520

549

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/14

 

500

525

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/15

 

530

554

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/16

 

835

871

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/17

 

1,725

1,797

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

6.250%

12/1/18

 

650

675

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

5.750%

12/1/21

 

775

786

Sayre PA Health Care Fac. Auth. Rev.

 

 

 

 

 

(Guthrie Health Care System)

5.875%

12/1/31

 

2,840

2,729

Scranton PA School Dist. GO

5.250%

6/15/27

(10)

2,750

2,789

Scranton PA School Dist. GO

5.250%

6/15/31

(10)

2,375

2,360

Scranton-Lackawanna PA Health & Welfare

 

 

 

 

 

Auth. Rev. (Mercy Health System)

5.625%

1/1/16

(1)

5,490

5,491

Scranton-Lackawanna PA Health & Welfare

 

 

 

 

 

Auth. Rev. (Mercy Health System)

5.700%

1/1/23

(1)

9,205

8,657

Scranton-Lackawanna PA Health & Welfare

 

 

 

 

 

Auth. Rev. (Univ. of Scranton)

5.000%

11/1/32

(10)

3,850

3,632

Scranton-Lackawanna PA Health & Welfare

 

 

 

 

 

Auth. Rev. (Univ. of Scranton)

5.000%

11/1/37

(10)

5,100

4,701

Shamokin-Coal Township PA

5.000%

7/1/30

(4)

5,700

5,685

Shamokin-Coal Township PA

5.000%

7/1/36

(4)

8,500

8,159

Snyder County PA Higher Educ. Auth. Univ.

 

 

 

 

 

Rev. (Susquehanna Univ. Project)

5.000%

1/1/30

(11)

5,000

4,801

Somerset PA Area School Dist. GO

5.000%

3/15/25

(4)

7,090

7,448

South Fork PA Hosp. Auth. Rev.

 

 

 

 

 

(Conemaugh Valley Hosp.)

5.625%

7/1/10

(6)

860

867

South Fork PA Hosp. Auth. Rev.

 

 

 

 

 

(Conemaugh Valley Hosp.)

5.750%

7/1/18

(6)

7,000

7,207

Southcentral Pennsylvania General

 

 

 

 

 

Auth. Rev. (Wellspan Health)

6.000%

6/1/25

 

20,000

21,421

State Public School Building Auth. Pennsylvania

 

 

 

 

 

School Rev. (Daniel Boone School Dist.)

5.000%

4/1/13

(1)(Prere.)

10,000

11,253

State Public School Building Auth. Pennsylvania

 

 

 

 

 

School Rev. (Philadelphia School Dist.)

5.000%

6/1/13

(4)(Prere.)

30,800

34,838

State Public School Building Auth. Pennsylvania

 

 

 

 

 

School Rev. (Philadelphia School Dist.)

5.250%

6/1/13

(4)(Prere.)

9,280

10,586

Swarthmore Borough Auth. PA College Rev.

5.000%

9/15/30

 

21,000

21,553

Uniontown PA Area School Dist. GO

5.500%

10/1/12

(4)(Prere.)

9,950

11,283

 

 

38

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

Face

Market

 

 

Maturity

 

Amount

Value¥

 

Coupon

Date

 

($000)

($000)

Univ. of Pittsburgh of the Commonwealth

 

 

 

 

 

System of Higher Educ. Pennsylvania

 

 

 

 

 

(Univ. Capital Project)

5.500%

9/15/24

 

3,000

3,323

Warwick PA School Dist. GO

5.375%

8/15/11

(3)(Prere.)

2,435

2,663

Warwick PA School Dist. GO

5.375%

8/15/11

(3)(Prere.)

2,570

2,811

Washington County PA Hosp. Auth. Rev.

 

 

 

 

 

(Washington Hosp.)

5.250%

7/1/10

(2)

1,750

1,778

Washington County PA Hosp. Auth. Rev.

 

 

 

 

 

(Washington Hosp.)

5.125%

7/1/11

(2)(ETM)

330

356

Washington County PA Hosp. Auth. Rev.

 

 

 

 

 

(Washington Hosp.)

5.125%

7/1/11

(2)

1,510

1,578

Washington County PA Hosp. Auth. Rev.

 

 

 

 

 

(Washington Hosp.)

5.125%

7/1/12

(2)

1,935

1,973

Washington County PA Hosp. Auth. Rev.

 

 

 

 

 

(Washington Hosp.)

5.250%

7/1/13

(2)

2,035

2,080

Washington County PA Hosp. Auth. Rev.

 

 

 

 

 

(Washington Hosp.)

5.375%

7/1/14

(2)

1,640

1,678

Washington County PA Hosp. Auth. Rev.

 

 

 

 

 

(Washington Hosp.)

5.375%

7/1/15

(2)

2,250

2,298

Washington County PA Hosp. Auth. Rev.

 

 

 

 

 

(Washington Hosp.)

5.500%

7/1/16

(2)

2,375

2,426

West Chester PA Area School Dist. GO

4.500%

5/15/27

(4)

17,500

17,617

West Chester PA Area School Dist. GO

5.000%

5/15/28

(1)

7,480

7,777

West Cornwall Township PA Muni. Auth.

 

 

 

 

 

College Rev. (Elizabethtown College)

6.000%

12/15/11

(Prere.)

2,650

2,970

West Cornwall Township PA Muni. Auth.

 

 

 

 

 

College Rev. (Elizabethtown College)

6.000%

12/15/11

(Prere.)

2,000

2,242

West Jefferson Hills PA School Dist. GO

5.200%

8/1/11

(4)(Prere.)

1,020

1,111

West Jefferson Hills PA School Dist. GO

5.200%

8/1/11

(4)(Prere.)

1,080

1,176

West Jefferson Hills PA School Dist. GO

5.200%

8/1/17

(4)

935

996

West Jefferson Hills PA School Dist. GO

5.200%

8/1/18

(4)

980

1,030

Westmoreland County PA Muni. Auth. Rev.

5.250%

8/15/15

(4)(Prere.)

3,490

4,094

Westmoreland County PA Muni. Auth. Rev.

6.125%

7/1/17

(1)(ETM)

7,795

9,179

Westmoreland County PA Muni. Auth.

 

 

 

 

 

Service Water Rev.

0.000%

8/15/15

(3)

5,000

3,887

Westmoreland County PA Muni. Auth.

 

 

 

 

 

Service Water Rev.

0.000%

8/15/23

(1)

5,000

2,458

Westmoreland County PA Muni. Auth.

 

 

 

 

 

Service Water Rev.

0.000%

8/15/24

(1)

4,000

1,680

Wilkes-Barre PA Finance Auth. Rev.

 

 

 

 

 

(Wilkes Univ. Project)

5.000%

3/1/27

 

2,200

1,863

Wilkes-Barre PA Finance Auth. Rev.

 

 

 

 

 

(Wilkes Univ. Project)

5.000%

3/1/37

 

3,000

2,358

Wyoming PA Area School Dist.

5.000%

9/1/26

(1)

2,000

2,011

Wyoming PA Area School Dist.

5.000%

9/1/29

(1)

5,125

5,041

York County PA

5.000%

6/1/33

(1)

6,000

6,036

York County PA Solid Waste & Refuse Auth. Rev.

5.500%

12/1/13

(1)

6,750

7,553

York County PA Solid Waste & Refuse Auth. Rev.

5.500%

12/1/14

(1)

4,050

4,561

 

 

 

 

 

2,516,142

Puerto Rico (3.9%)

 

 

 

 

 

Puerto Rico Electric Power Auth. Rev.

5.500%

7/1/20

 

5,300

5,372

Puerto Rico Electric Power Auth. Rev.

5.250%

7/1/21

(1)

5,000

5,033

Puerto Rico GO

5.500%

7/1/18

(1)

10,000

10,103

Puerto Rico GO

5.500%

7/1/20

(3)

6,000

5,953

Puerto Rico GO

5.500%

7/1/22

(3)

8,960

8,624

Puerto Rico Highway & Transp. Auth. Rev.

5.500%

7/1/19

(1)

17,000

16,993

 

39

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

 

 

Face

Market

 

 

Maturity

 

Amount

Value¥

 

Coupon

Date

 

($000)

($000)

Puerto Rico Highway & Transp. Auth. Rev.

5.500%

7/1/20

(1)

14,610

14,567

Puerto Rico Infrastructure Financing Auth.

 

 

 

 

 

Special Tax Rev.

5.500%

7/1/23

(2)

10,000

9,501

Puerto Rico Infrastructure Financing Auth.

 

 

 

 

 

Special Tax Rev.

0.000%

7/1/30

(3)

14,905

3,098

Puerto Rico Infrastructure Financing Auth.

 

 

 

 

 

Special Tax Rev.

0.000%

7/1/31

(3)

28,695

5,522

Puerto Rico Public Buildings Auth. Govt. Fac. Rev.

5.750%

7/1/22

(ETM)

10

12

Puerto Rico Public Buildings Auth. Govt. Fac. Rev.

5.750%

7/1/22

 

4,990

4,873

Puerto Rico Public Finance Corp.

6.000%

8/1/26

(ETM)

10,875

13,252

 

 

 

 

 

102,903

Virgin Islands (0.1%)

 

 

 

 

 

Virgin Islands Public Finance Auth. Rev.

5.000%

10/1/12

 

2,000

2,038

Virgin Islands Public Finance Auth. Rev.

5.250%

10/1/20

 

1,750

1,700

 

 

 

 

 

3,738

Total Tax-Exempt Municipal Bonds (Cost $2,625,313)

 

 

 

2,622,783

Other Assets and Liabilities (0.5%)

 

 

 

 

 

Other Assets

 

 

 

 

43,146

Liabilities

 

 

 

 

(30,153)

 

 

 

 

 

12,993

Net Assets (100%)

 

 

 

 

2,635,776

 

At May 31, 2009, net assets consisted of:

 

 

Amount

 

($000)

Paid-in Capital

2,664,238

Undistributed Net Investment Income

-

Accumulated Net Realized Losses

(25,906)

Unrealized Appreciation (Depreciation)

 

Investment Securities

(2,530)

Futures Contracts

(26)

Net Assets

2,635,776

 

 

Investor Shares-Net Assets

 

Applicable to 59,373,568 outstanding $.001 par value shares of

 

beneficial interest (unlimited authorization)

638,623

Net Asset Value Per Share-Investor Shares

$10.76

 

 

Admiral Shares-Net Assets

 

Applicable to 185,677,697 outstanding $.001 par value shares of

 

beneficial interest (unlimited authorization)

1,997,153

Net Asset Value Per Share-Admiral Shares

$10.76

 

¥ See Note A in Notes to Financial Statements.

1

Securities with a value of $746,000 have been segregated as initial margin for open futures contracts.

2

Security purchased on a when-issued or delayed delivery basis for which the fund has not taken delivery as of May 31, 2009.
  A key to abbreviations and other references follows the Statement of Net Assets.

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

40

Pennsylvania Long-Term Tax-Exempt Fund

 

Key to Abbreviations

 

ARS

-Auction Rate Security.

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).

(12)

Assured Guaranty Corp.

(13)

National Indemnity Co. (Berkshire Hathaway).

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.

 

 

41

Pennsylvania Long-Term Tax-Exempt Fund

 

Statement of Operations

 

 

Six Months Ended

 

May 31, 2009

 

($000)

Investment Income

 

Income

 

Interest

57,376

Total Income

57,376

Expenses

 

The Vanguard Group-Note B

 

Investment Advisory Services

124

Management and Administrative-Investor Shares

479

Management and Administrative-Admiral Shares

755

Marketing and Distribution-Investor Shares

94

Marketing and Distribution-Admiral Shares

262

Custodian Fees

11

Shareholders’ Reports-Investor Shares

6

Shareholders’ Reports-Admiral Shares

2

Trustees’ Fees and Expenses

2

Total Expenses

1,735

Net Investment Income

55,641

Realized Net Gain (Loss)

 

Investment Securities Sold

489

Futures Contracts

(4,743)

Realized Net Gain (Loss)

(4,254)

Change in Unrealized Appreciation (Depreciation)

 

Investment Securities

136,265

Futures Contracts

2,303

Change in Unrealized Appreciation (Depreciation)

138,568

Net Increase (Decrease) in Net Assets Resulting from Operations

189,955

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

 

42

Pennsylvania Long-Term Tax-Exempt Fund

 

Statement of Changes in Net Assets

 

 

Six Months Ended

Year Ended

 

May 31,

November 30,

 

2009

2008

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

55,641

112,477

Realized Net Gain (Loss)

(4,254)

(18,750)

Change in Unrealized Appreciation (Depreciation)

138,568

(208,344)

Net Increase (Decrease) in Net Assets Resulting from Operations

189,955

(114,617)

Distributions

 

 

Net Investment Income

 

 

Investor Shares

(13,468)

(28,060)

Admiral Shares

(42,173)

(84,417)

Realized Capital Gain

 

 

Investor Shares

-

(1,252)

Admiral Shares

-

(3,634)

Total Distributions

(55,641)

(117,363)

Capital Share Transactions

 

 

Investor Shares

12,590

15,015

Admiral Shares

81,208

154,590

Net Increase (Decrease) from Capital Share Transactions

93,798

169,605

Total Increase (Decrease)

228,112

(62,375)

Net Assets

 

 

Beginning of Period

2,407,664

2,470,039

End of Period

2,635,776

2,407,664

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

43

Pennsylvania Long-Term Tax-Exempt Fund

 

Financial Highlights

 

 

Investor Shares

 

 

 

 

 

 

 

Six

 

 

 

 

 

 

Months

 

 

 

 

 

 

Ended

Year Ended November 30,

For a Share Outstanding

May 31,

 

 

 

 

 

Throughout Each Period

2009

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$10.19

$11.18

$11.47

$11.32

$11.53

$11.74

Investment Operations

 

 

 

 

 

 

Net Investment Income

.229

.483

.505

.513

.520

.528

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

on Investments

.570

(.968)

(.252)

.179

(.165)

(.148)

Total from Investment Operations

.799

(.485)

.253

.692

.355

.380

Distributions

 

 

 

 

 

 

Dividends from Net Investment Income

(.229)

(.483)

(.505)

(.513)

(.520)

(.528)

Distributions from Realized Capital Gains

-

(.022)

(.038)

(.029)

(.045)

(.062)

Total Distributions

(.229)

(.505)

(.543)

(.542)

(.565)

(.590)

Net Asset Value, End of Period

$10.76

$10.19

$11.18

$11.47

$11.32

$11.53

 

 

 

 

 

 

 

Total Return1

7.90%

-4.48%

2.30%

6.30%

3.10%

3.32%

 

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

 

Net Assets, End of Period (Millions)

$639

$593

$636

$668

$705

$1,444

Ratio of Total Expenses to

 

 

 

 

 

 

Average Net Assets

0.20%2

0.15%

0.15%

0.16%

0.16%

0.14%

Ratio of Net Investment Income to

 

 

 

 

 

 

Average Net Assets

4.36%2

4.46%

4.50%

4.55%

4.51%

4.54%

Portfolio Turnover Rate

14%2

24%

14%

17%

14%

12%

 

1 Total returns do not include the account service fee that may be applicable to certain accounts with balances below $10,000.

2 Annualized.

See accompanying Notes, which are an integral part of the Financial Statements.

 

44

Pennsylvania Long-Term Tax-Exempt Fund

 

Financial Highlights

 

Admiral Shares

 

 

 

 

 

 

 

Six

 

 

 

 

 

 

Months

 

 

 

 

 

 

Ended

Year Ended November 30,

For a Share Outstanding

May 31,

 

 

 

 

 

Throughout Each Period

2009

2008

2007

2006

2005

2004

Net Asset Value, Beginning of Period

$10.19

$11.18

$11.47

$11.32

$11.53

$11.74

Investment Operations

 

 

 

 

 

 

Net Investment Income

.233

.491

.513

.522

.528

.534

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

on Investments

.570

(.968)

(.252)

.179

(.165)

(.148)

Total from Investment Operations

.803

(.477)

.261

.701

.363

.386

Distributions

 

 

 

 

 

 

Dividends from Net Investment Income

(.233)

(.491)

(.513)

(.522)

(.528)

(.534)

Distributions from Realized Capital Gains

-

(.022)

(.038)

(.029)

(.045)

(.062)

Total Distributions

(.233)

(.513)

(.551)

(.551)

(.573)

(.596)

Net Asset Value, End of Period

$10.76

$10.19

$11.18

$11.47

$11.32

$11.53

 

 

 

 

 

 

 

Total Return

7.95%

-4.41%

2.38%

6.37%

3.18%

3.37%

 

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

 

Net Assets, End of Period (Millions)

$1,997

$1,815

$1,834

$1,722

$1,577

$828

Ratio of Total Expenses to

 

 

 

 

 

 

Average Net Assets

0.12%1

0.08%

0.08%

0.09%

0.09%

0.09%

Ratio of Net Investment Income to

 

 

 

 

 

 

Average Net Assets

4.44%1

4.53%

4.57%

4.62%

4.58%

4.60%

Portfolio Turnover Rate

14%1

24%

14%

17%

14%

12%

1 Annualized.

 

 

 

 

 

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

 

45

Pennsylvania Long-Term Tax-Exempt Fund

 

Notes to Financial Statements

 

Vanguard Pennsylvania Long-Term Tax-Exempt Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in debt instruments of municipal issuers whose ability to meet their obligations may be affected by economic and political developments in the Commonwealth of Pennsylvania. The 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, service, tenure, and account-size criteria.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: 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 affected by events occurring before the fund’s 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 fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. 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 Statement of Net Assets. 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: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended November 30, 2005Ð2008) and for the period ended May 31, 2009, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

4. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date.

5. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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.

 

46

Pennsylvania Long-Term Tax-Exempt Fund

 

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 the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At May 31, 2009, the fund had contributed capital of $651,000 to Vanguard (included in Other Assets), representing 0.02% of the fund’s net assets and 0.26% of Vanguard’s capitalization. The fund’s 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 fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at November 30, 2008, the fund had available realized losses of $22,447,000 to offset future net capital gains through November 30, 2016. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending November 30, 2009; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

The fund had realized losses totaling $1,534,000 through November 30, 2008, which are deferred for tax purposes and reduce the amount of tax-basis unrealized appreciation on investment securities.

At May 31, 2009, the cost of investment securities for tax purposes was $2,626,847,000. Net unrealized depreciation of investment securities for tax purposes was $4,064,000, consisting of unrealized gains of $79,240,000 on securities that had risen in value since their purchase and $83,304,000 in unrealized losses on securities that had fallen in value since their purchase.

At May 31, 2009, the aggregate settlement value of open futures contracts expiring in September 2009 and the related unrealized appreciation (depreciation) were:

 

 

 

($000)

 

Number of

Aggregate

Unrealized

 

Long (Short)

Settlement

Appreciation

Futures Contracts

Contracts

Value

(Depreciation)

30-Year U.S. Treasury Bond

(82)

9,648

(26)

Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.

 

47

Pennsylvania Long-Term Tax-Exempt Fund

 

D. During the six months ended May 31, 2009, the fund purchased $293,636,000 of investment securities and sold $163,858,000 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, 2009

November 30, 2008

 

Amount

Shares

Amount

Shares

 

($000)

(000)

($000)

(000)

Investor Shares

 

 

 

 

Issued

93,242

8,868

183,247

16,901

Issued in Lieu of Cash Distributions

10,162

962

21,934

2,039

Redeemed

(90,814)

(8,626)

(190,166)

(17,624)

Net Increase (Decrease)-Investor Shares

12,590

1,204

15,015

1,316

Admiral Shares

 

 

 

 

Issued

194,985

18,499

435,275

40,293

Issued in Lieu of Cash Distributions

28,341

2,683

60,709

5,644

Redeemed

(142,118)

(13,614)

(341,394)

(31,816)

Net Increase (Decrease)-Admiral Shares

81,208

7,568

154,590

14,121

 

F. In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 establishes a framework for measuring fair value and expands disclosures about fair value measurements in financial statements.

The various inputs that may be used to determine the value of the fund’s investments are summarized in three broad levels. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1-Quoted prices in active markets for identical securities.

Level 2-Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3-Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The following table summarizes the fund’s investments as of May 31, 2009, based on the inputs used to value them:

 

 

Investments

Futures

 

in Securities

Contracts

Valuation Inputs

($000)

($000)

Level 1-Quoted prices

-

(26)

Level 2-Other significant observable inputs

2,622,783

-

Level 3-Significant unobservable inputs

-

-

Total

2,622,783

(26)

 

 

48

About Your Fund’s 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 accompanying table illustrates your fund’s costs in two ways:

• Based on 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.“

• Based on hypothetical 5% yearly 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 yearly return of 5% before expenses, 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.

Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include the account service fee described in the prospectus. If such a 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, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.

 

49

Six Months Ended May 31, 2009

 

 

 

 

Beginning

Ending

Expenses

 

Account Value

Account Value

Paid During

 

11/30/2008

5/31/2009

Period

Based on Actual Fund Return

 

 

 

Pennsylvania Tax-Exempt Money Market Fund

$1,000.00

$1,003.99

$0.85

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

Investor Shares

$1,000.00

$1,079.05

$1.04

Admiral Shares

1,000.00

1,079.48

0.62

 

 

 

 

Based on Hypothetical 5% Yearly Return

 

 

 

Pennsylvania Tax-Exempt Money Market Fund

$1,000.00

$1,024.08

$0.86

Pennsylvania Long-Term Tax-Exempt Fund

 

 

 

Investor Shares

$1,000.00

$1,023.93

$1.01

Admiral Shares

1,000.00

1,024.33

0.61

The calculations are based on expenses incurred in the most recent six-month period. The funds’ annualized six-month expense ratios for that period are: for the Pennsylvania Tax-Exempt Money Market Fund, 0.17%; for the Pennsylvania Long-Term Tax-Exempt Fund Investor Shares, 0.20%, and Admiral Shares, 0.12%. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.

 

50

Trustees Approve Advisory Arrangement

 

The board of trustees of Vanguard Pennsylvania Tax-Exempt Money Market Fund and Vanguard Pennsylvania Long-Term Tax-Exempt Fund has renewed the funds’ investment advisory arrangement with The Vanguard Group, Inc. Vanguard-through it’s Fixed Income Group-serves as the investment advisor for the funds. The board determined that continuing the funds’ internalized management structure was in the best interests of the funds and their shareholders.

The board based its decision upon an evaluation of the advisor’s investment staff, portfolio management process, and performance. The trustees considered the factors discussed below, among others. However, no single factor determined whether the board approved the arrangement. Rather, it was the totality of the circumstances that drove the board’s decision.

Nature, extent, and quality of services

The board considered the quality of the funds’ investment management over both the short and long term, and took into account the organizational depth and stability of the advisor. The board noted that Vanguard has been managing investments for more than three decades. The Fixed Income Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.

The board concluded that Vanguard’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement.

Investment performance

The board considered the short- and long-term performance of the funds, including any periods of outperformance or underperformance of relevant benchmarks and peer groups. The board concluded that the funds have performed in line with expectations and have slightly outperformed their respective peer-group funds, and that their results have been consistent with their investment strategies.

Information about the funds’ most recent performance can be found in the Performance Summary sections of this report.

Cost

The board concluded that the funds’ expense ratios were far below the average expense ratios charged by funds in each fund’s peer group. The board noted that the funds’ advisory expense ratios were also well below their peer-group averages. Information about the funds’ expense ratios appears in the About Your Fund’s Expenses section of this report as well as in the Financial Statements sections.

The board does not conduct a profitability analysis of Vanguard, because of Vanguard’s unique “at-cost” structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees, and produces “profits” only in the form of reduced expenses for fund shareholders.

The benefit of economies of scale

The board concluded that the funds’ low-cost arrangement with Vanguard ensures that the funds will realize economies of scale as they grow, with the cost to shareholders declining as fund assets increase.

The board will consider whether to renew the advisory arrangement again after a one-year period.

 

51

Glossary

 

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 indicating the most creditworthy bond issuers and MIG-1, A-1+, SP-1+, and F-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%. For this report, beta is based on returns over the past 36 months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared (see definition). 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.

Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.

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. For this report, R-squared is based on returns over the past 36 months for both the fund and the index.

 

52

SEC Yields. A money market fund’s 7-day SEC yield is calculated by annualizing its income distributions for the previous seven days, as required by the U.S. Securities and Exchange Commission. For other funds, 30-day SEC yield is derived using a formula specified by the commission. Under the formula, data related to the fund’s security holdings in the previous 30 days are used to calculate the fund’s hypothetical net income for that period, which is then annualized and divided by the fund’s estimated average net assets over the calculation period. For the purposes of this calculation, a security’s income is based on its current market yield to maturity (in the case of bonds) or its projected dividend yield (for stocks). Because the SEC yield represents hypothetical annualized income, it will differ—at times significantly—from the fund’s actual experience. As a result, the fund’s income distributions may be higher or lower than implied by the SEC yield.

Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that can be readily converted to cash.

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.

 

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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’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard 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. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 157 Vanguard funds.

The following table provides information for each trustee and executive officer of the fund. More information about the trustees is in the Statement of Additional Information, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at www.vanguard.com.

 

Chairman of the Board and Interested Trustee

Rajiv L. Gupta

 

Born 1945. Trustee Since December 2001.2 Principal

 

Occupation(s) During the Past Five Years: Retired

John J. Brennan1

Chairman and Chief Executive Officer of Rohm and

Born 1954. Trustee Since May 1987. Chairman of

Haas Co. (chemicals); President of Rohm and Haas Co.

the Board. Principal Occupation(s) During the Past Five

(2006–2008); Board Member of American Chemistry

Years: Chairman of the Board and Director/Trustee of

Council; Director of Tyco International, Ltd. (diversified

The Vanguard Group, Inc., and of each of the investment

manufacturing and services) and Hewlett-Packard Co.

companies served by The Vanguard Group; Chief

(electronic computer manufacturing); Trustee of The

Executive Officer and President of The Vanguard Group

Conference Board.

and of each of the investment companies served by The

 

Vanguard Group (1996–2008).

 

 

Amy Gutmann

 

Born 1949. Trustee Since June 2006. Principal

Independent Trustees

Occupation(s) During the Past Five Years: President of

 

the University of Pennsylvania; Christopher H. Browne

 

Distinguished Professor of Political Science in the School

Charles D. Ellis

of Arts and Sciences with Secondary Appointments

Born 1937. Trustee Since January 2001. Principal

at the Annenberg School for Communication and the

Occupation(s) During the Past Five Years: Applecore

Graduate School of Education of the University of

Partners (pro bono ventures in education); Senior

Pennsylvania; Director of Carnegie Corporation of

Advisor to Greenwich Associates (international business

New York, Schuylkill River Development Corporation,

strategy consulting); Successor Trustee of Yale University;

and Greater Philadelphia Chamber of Commerce;

Overseer of the Stern School of Business at New York

Trustee of the National Constitution Center.

University; Trustee of the Whitehead Institute for

 

Biomedical Research.

 

 

JoAnn Heffernan Heisen

 

Born 1950. Trustee Since July 1998. Principal

Emerson U. Fullwood

Occupation(s) During the Past Five Years: Retired

Born 1948. Trustee Since January 2008. Principal

Corporate Vice President, Chief Global Diversity Officer,

Occupation(s) During the Past Five Years: Retired

and Member of the Executive Committee of Johnson &

Executive Chief Staff and Marketing Officer for North

Johnson (pharmaceuticals/consumer products); Vice

America and Corporate Vice President of Xerox

President and Chief Information Officer (1997–2005)

Corporation (photocopiers and printers); Director of

of Johnson & Johnson; Director of the University

SPX Corporation (multi-industry manufacturing), the

Medical Center at Princeton and Women’s Research

United Way of Rochester, the Boy Scouts of America,

and Education Institute.

Amerigroup Corporation (direct health and medical

 

insurance carriers), and Monroe Community College

 

Foundation.

 

 

André F. Perold

F. William McNabb III1

 

Born 1952. Trustee Since December 2004. Principal

Born 1957. Chief Executive Officer Since August 2008.

Occupation(s) During the Past Five Years: George Gund

President Since March 2008. Principal Occupation(s)

Professor of Finance and Banking, Senior Associate

During the Past Five Years: Director of The Vanguard

Dean, and Director of Faculty Recruiting, Harvard

Group, Inc., since 2008; Chief Executive Officer and

Business School; Director and Chairman of UNX, Inc.

President of The Vanguard Group and of each of the

(equities trading firm); Chair of the Investment

investment companies served by The Vanguard Group

Committee of HighVista Strategies LLC (private

since 2008; Director of Vanguard Marketing Corporation;

investment firm).

Managing Director of The Vanguard Group (1995–2008)

 

 

 

 

 

 

Alfred M. Rankin, Jr.

Heidi Stam1

 

Born 1941. Trustee Since January 1993. Principal

Born 1956. Secretary Since July 2005. Principal

Occupation(s) During the Past Five Years: Chairman,

Occupation(s) During the Past Five Years: Managing

President, Chief Executive Officer, and Director of

Director of The Vanguard Group, Inc., since 2006;

NACCO Industries, Inc. (forklift trucks/housewares/

General Counsel of The Vanguard Group since 2005;

lignite); Director of Goodrich Corporation (industrial

Secretary of The Vanguard Group and of each of the

products/aircraft systems and services).

investment companies served by The Vanguard Group

 

since 2005; Director and Senior Vice President of

 

Vanguard Marketing Corporation since 2005; Principal

J. Lawrence Wilson

of The Vanguard Group (1997–2006).

Born 1936. Trustee Since April 1985. Principal

 

 

Occupation(s) During the Past Five Years: Retired

 

 

Chairman and Chief Executive Officer of Rohm and

Vanguard Senior Management Team

Haas Co. (chemicals); Director of Cummins Inc. (diesel

 

 

engines) and AmerisourceBergen Corp. (pharmaceutical

 

 

distribution); Trustee of Vanderbilt University and of

R. Gregory Barton

Michael S. Miller

Culver Educational Foundation.

Mortimer J. Buckley

James M. Norris

 

Kathleen C. Gubanich

Glenn W. Reed

 

Paul A. Heller

George U. Sauter

Executive Officers

 

 

 

 

 

 

Founder

 

Thomas J. Higgins1

 

 

Born 1957. Chief Financial Officer Since September

 

 

2008. Principal Occupation(s) During the Past Five

John C. Bogle

 

Years: Principal of The Vanguard Group, Inc.; Chief

Chairman and Chief Executive Officer, 1974–1996

Financial Officer of each of the investment companies

 

 

served by The Vanguard Group since 2008; Treasurer

 

 

of each of the investment companies served by The

 

 

Vanguard Group (1998–2008).

 

 

 

 

 

 

 

 

Kathryn J. Hyatt1

 

 

Born 1955. Treasurer Since November 2008. Principal

 

 

Occupation(s) During the Past Five Years: Principal of

 

 

The Vanguard Group, Inc.; Treasurer of each of the

 

 

investment companies served by The Vanguard

 

 

Group since 2008; Assistant Treasurer of each of the

 

 

investment companies served by The Vanguard Group

 

 

(1988–2008).

 

 

 

 

1

These individuals are “interested persons” as defined in the Investment Company Act of 1940.

2

December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.


 

P.O. Box 2600

Valley Forge, PA 19482-2600

 

Connect with Vanguard® > www.vanguard.com

 

 

Fund Information > 800-662-7447

 

 

 

Direct Investor Account Services > 800-662-2739

 

 

 

Institutional Investor Services > 800-523-1036

 

 

 

Text Telephone for People

 

With Hearing Impairment > 800-952-3335

 

 

 

This material may be used in conjunction

 

with the offering of shares of any Vanguard

 

fund only if preceded or accompanied by

 

the fund’s current prospectus.

 

 

 

All comparative mutual fund data are from Lipper Inc. or

 

Morningstar, Inc., unless otherwise noted.

 

 

 

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

 

Vanguard at 800-662-2739. The guidelines are also

 

available from the SEC’s website, www.sec.gov. In

 

addition, you may obtain a free report on how your fund

 

voted the proxies for securities it owned during the 12

 

months ended June 30. To get the report, visit either

 

www.vanguard.com or www.sec.gov.

 

 

 

You can review and copy information about your fund at

 

the SEC’s Public Reference Room in Washington, D.C. To

 

find out more about this public service, call the SEC at

 

202-551-8090. Information about your fund is also

 

available on the SEC’s website, and you can receive

 

copies of this information, for a fee, by sending a

 

request in either of two ways: via e-mail addressed to

 

publicinfo@sec.gov or via regular mail addressed to the

© 2009 The Vanguard Group, Inc.

Public Reference Section, Securities and Exchange

All rights reserved.

Commission, Washington, DC 20549-0102.

Vanguard Marketing Corporation,

 

Distributor

 

Q772 072009

 

 

 

 

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: Not Applicable.

 

Item 11: 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 Control Over Financial Reporting. There were no significant changes in Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

Item 12: Exhibits.

 

 

(a)

Code of Ethics.

 

(b)

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 PENNSYLVANIA TAX-FREE FUNDS

 

BY:

/s/ F. WILLIAM MCNABB III*

 

___________________________

 

F. WILLIAM MCNABB III

 

CHIEF EXECUTIVE OFFICER

 

Date: July 15, 2009

 

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 PENNSYLVANIA TAX-FREE FUNDS

 

BY:

/s/ F. WILLIAM MCNABB III*

 

___________________________

 

F. WILLIAM MCNABB III

 

CHIEF EXECUTIVE OFFICER

 

Date: July 15, 2009

 

 

VANGUARD PENNSYLVANIA TAX-FREE FUNDS

 

BY:

/s/ THOMAS J. HIGGINS*

 

___________________________

 

THOMAS J. HIGGINS

 

CHIEF FINANCIAL OFFICER

 

Date: July 15, 2009

 

* By: /s/ Heidi Stam

 

Heidi Stam, pursuant to a Power of Attorney filed on January 18, 2008, see file Number 2-29601, Incorporated by Reference; and pursuant to a Power of Attorney
filed on September 26, 2008, see File Number 2-47371, Incorporated by Reference.