N-CSR 1 newjerseyfinal.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: 811-5340

 

Name of Registrant: Vanguard New Jersey 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, 2006–November 30, 2007

 

Item 1: Reports to Shareholders

 



>

For the fiscal year ended November 30, 2007, Vanguard New Jersey Tax-Exempt Money Market Fund returned 3.6%, exceeding the average return of its peers.

>

The Investor Shares of Vanguard New Jersey Long-Term Tax-Exempt Fund returned 2.0%, and the Admiral Shares returned 2.1%. These results lagged the return of the fund’s benchmark index but outperformed the peer-group average return.

>

After rising for three years, interest rates began to decline in midsummer as investors became more concerned about the larger impact of subprime lending woes. The Federal Reserve Board stepped in during, and after, the period, lowering interest rate targets to address concerns about liquidity and a slowing economy.

 

Contents

 

 

 

Your Fund’s Total Returns

1

Chairman’s Letter

2

Advisor’s Report

7

New Jersey Tax-Exempt Money Market Fund

10

New Jersey Long-Term Tax-Exempt Fund

26

About Your Fund’s Expenses

48

Glossary

50

 

 

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 cover of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

Your Fund’s Total Returns

 

Fiscal Year Ended November 30, 2007

 

 

 

Ticker

Total

 

Symbol

Returns

Vanguard New Jersey Tax-Exempt Money Market Fund

VNJXX

3.6%

SEC 7-Day Annualized Yield: 3.46%

 

 

Taxable-Equivalent Yield: 5.85%1

 

 

Average New Jersey Tax-Exempt Money Market Fund2

 

3.1

 

 

 

Vanguard New Jersey Long-Term Tax-Exempt Fund

 

 

Investor Shares

VNJTX

2.0%

SEC 30-Day Annualized Yield: 3.94%

 

 

Taxable-Equivalent Yield: 6.66%1

 

 

Admiral™ Shares3

VNJUX

2.1

SEC 30-Day Annualized Yield: 4.01%

 

 

Taxable-Equivalent Yield: 6.78%1

 

 

Lehman 10 Year Municipal Bond Index

 

3.5

Average New Jersey Municipal Debt Fund2

 

1.0

 

 

Your Fund’s Performance at a Glance

 

 

November 30, 2006–November 30, 2007

 

 

 

 

 

Distributions Per Share

 

Starting

Ending

Income

Capital

 

Share Price

Share Price

Dividends

Gains

Vanguard New Jersey Tax-Exempt Fund

 

 

 

 

Money Market

$1.00

$1.00

$0.035

$0.000

Long-Term

 

 

 

 

Investor Shares

$12.03

$11.71

$0.511

$0.044

Admiral Shares

12.03

11.71

0.519

0.044

 

 

 

1

This calculation, which assumes a typical itemized tax return, is based on the maximum federal income tax rate of 35% and the maximum state of New Jersey income tax rate. Local taxes were not considered. Please see the prospectus for a detailed explanation of the calculation.

2

Derived from data provided by Lipper Inc.

3

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

1


 

Chairman’s Letter

 

Dear Shareholder,

 

The past fiscal year was a tale of two markets. For most of this period, concerns about inflation drove interest rates higher (and bond prices lower), especially at the longer end of the maturity spectrum. Beginning in midsummer, however, as the subprime mortgage crisis reverberated through the markets, investors bid up ultra-safe U.S. Treasury securities, driving their yields lower. These interest rate dynamics were less pronounced in the tax-exempt bond market, and on balance, municipal securities lagged their Treasury counterparts. As municipal bond prices declined, their tax-exempt yields increased to exceptionally attractive levels relative to taxable bond yields.

 

In this environment, Vanguard New Jersey Tax-Exempt Money Market Fund outperformed the New Jersey Long-Term Tax-Exempt Fund and returned 3.6% for the 12 months ended November 30. The Money Market Fund’s yield at year-end was 3.46%, a taxable-equivalent yield of 5.85% for investors in the highest income tax bracket. The fund maintained a net asset value of $1 per share, as is expected but not guaranteed.

 

The Investor Shares of Vanguard New Jersey Long-Term Tax-Exempt Fund returned 2.0% for the fiscal year (the Admiral Shares returned 2.1%), as interest income more

 

 

 

2

than offset a modest decline in share prices. As of November 30, the Investor Shares’ yield was 3.94% (up from 3.80% a year ago). For investors in the highest income tax bracket, the taxable-equivalent yield was 6.66%. Yields were slightly higher for Admiral Shares.

Please note: Although the funds’ income distributions are expected to be exempt from federal and New Jersey state income taxes, a portion of these distributions may be subject to the alternative minimum tax.

 

Federal Reserve rate cuts depressed short-term yields

Ongoing turmoil in the subprime lending market engendered a “flight to quality” that drove prices of U.S. Treasury bonds sharply higher, and as the bonds’ prices rose, their yields fell. Declines in Treasury yields were steepest at the short end of the maturity spectrum.

 

The declines were prompted largely by the actions of the Federal Reserve Board, which cut its target for the federal funds rate on two separate occasions. (On December 11, 2007, after the end of the fiscal period, the central bank again lowered the target for short-term interest rates by 0.25 percentage point, to 4.25%.) The yield of the 3-month Treasury bill, which started the fiscal year at 5.02%, had dropped nearly 2 percentage points, to 3.15%, by the end of the period.

The broad taxable bond market returned 6.0% for the fiscal 12 months. Returns from tax-exempt municipal bonds were lower, at 2.7%.

 

Market Barometer

 

 

 

 

Average Annual Total Returns

Periods Ended November 30, 2007

 

One Year

Three Years

Five Years

Bonds

 

 

 

Lehman U.S. Aggregate Bond Index (Broad taxable market)

6.0%

4.8%

4.8%

Lehman Municipal Bond Index

2.7

4.2

4.7

Citigroup 3-Month Treasury Bill Index

4.9

4.1

2.9

 

 

 

 

Stocks

 

 

 

Russell 1000 Index (Large-caps)

7.8%

10.6%

12.3%

Russell 2000 Index (Small-caps)

–1.2

7.9

14.9

Dow Jones Wilshire 5000 Index (Entire market)

7.6

10.7

12.9

MSCI All Country World Index ex USA (International)

22.5

22.7

24.1

 

 

 

 

CPI

 

 

 

Consumer Price Index

4.3%

3.2%

3.0%

 

 

 

3

A volatile stock market produced solid gains

Although the U.S. economy began to slow toward the end of the fiscal year, stocks produced solid returns for the 12 months. These gains came despite a recession in housing and intensified problems among subprime mortgage-loan lenders—problems that first erupted in midsummer and continued to rattle the financial markets for the remainder of the period. In November, the stock market was quite volatile, as crude oil prices hovered near historic highs while the U.S. dollar continued to lose ground against other major currencies.

 

The broad U.S. stock market returned 7.6% for the year. Returns from large-capitalization stocks far outpaced those of small-cap issues, and growth stocks outperformed their value-oriented counterparts.

 

International stocks continued to outperform domestic issues. Emerging-markets stocks did particularly well, followed by stocks in Europe and the Pacific regions—excluding Japan, where returns were slight. The dollar’s ongoing weakness further enhanced international markets’ gains for U.S.-based investors.

 

Portfolios skillfully navigated choppy waters

During the second half of fiscal 2007, U.S. Treasury securities outperformed almost all other fixed income investments, from below-investment-grade bonds to AAA tax-exempt securities. Investors seeking refuge in virtually risk-free securities drove Treasury yields lower and prices higher. The relative performance of municipal bonds was also held in check by a significant increase in supply. Nationwide, total tax-exempt issuance increased almost 25% for the 12 months ended November 30 and is on track to reach a calendar-year record.

 

 

Expense Ratios1

 

 

 

Your fund compared with its peer group

 

 

 

 

Investor

Admiral

Peer

New Jersey Tax-Exempt Fund

Shares

Shares

Group

Money Market

0.10%

—

0.69%

Long-Term

0.15

0.08%

1.12

 

 

 

1

Fund expense ratios reflect the 12 months ended November 30, 2007. Peer groups are: for the New Jersey Tax-Exempt Money Market Fund, the Average New Jersey Tax-Exempt Money Market Fund; and for the New Jersey Long-Term Tax-Exempt Fund, the Average New Jersey Municipal Debt Fund. Peer-group expense ratios are derived from data provided by Lipper Inc. and capture information through year-end 2006.

 

 

4

Compared with U.S. Treasury bonds, interest rate movements among tax-exempt bonds were more subdued, though still significant. For most of the year, tax-exempt money market rates remained at or near their highest level since 2000. As rates fell, in advance of the Federal Reserve’s September and October rate cuts, the yield of the New Jersey Tax-Exempt Money Market Fund also declined, ending the year little unchanged from a year ago. For the 12 months through November 30, the fund returned 3.6%, besting the average return of its peers. The fund benefited from very low operating costs and a focus by the advisor—Vanguard Fixed Income Group—on the market’s highest-quality securities.

 

The midsummer reversal in interest rates helped the New Jersey Long-Term Tax-Exempt Fund finish the fiscal year on a positive note. Rising rates in the first half put pressure on the fund’s portfolio, resulting in a total return of –0.3%. Later in the year, however, falling interest rates (or, put differently, rising prices) combined with interest income to help the fund deliver returns of 2.0% for Investor Shares and 2.1% for Admiral Shares for the full 12-month period. Although the fund’s return trailed that of its benchmark index, it topped the average return for competing New Jersey municipal bond funds. Compared with the index, your fund’s slightly longer duration—a measure of interest rate sensitivity—acted as a headwind to performance; interest rates of longer-term bonds ended the year higher, despite falling from their midyear peaks, which put pressure on longer-maturity bond prices.

 

Low expenses help sustain long-term performance

Over time, Vanguard’s emphasis on high-quality securities, prudent portfolio management, and low costs has helped to produce impressive results relative to competing tax-exempt portfolios.

 

 

Total Returns

 

 

Ten Years Ended November 30, 2007

 

 

 

 

Average

 

 

Annual Return

 

 

Average

 

Vanguard

Competing

New Jersey Tax-Exempt Fund

Fund

Fund1

Money Market

2.5%

2.0%

Long-Term Investor Shares

5.2

4.2

The figures shown represent past performance, which is not a guarantee of future results. (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.

 

 

1

Derived from data provided by Lipper Inc.

 

5

For the ten years ended November 30, the New Jersey Tax-Exempt Money Market Fund earned an average annual return of 2.5%, topping the average for competing funds. The fund continued to deliver superior tax-exempt returns while providing liquidity and preserving principal. Low costs are especially critical in the money market arena, where generally low short-term yields and the limited variety of securities constrain a fund’s ability to offset the deleterious impact of high costs.

The New Jersey Long-Term Tax-Exempt Fund’s Investor Shares earned an average annual return of 5.2% over the ten years ended November 30, transforming a hypothetical initial investment of $10,000 made a decade ago into $16,577. By comparison, an equal investment compounded at the average rate of return for competing funds would have grown to $15,131. The New Jersey Long-Term Tax-Exempt Fund benefits from Vanguard’s low costs—which enable our portfolio managers to focus their efforts on identifying high-quality securities from hundreds of diverse municipal issuers.

 

Income and quality are anchors for diversified portfolios

Over the past year, both equity and fixed income markets have experienced increased volatility. Because market cycles are hard to predict with accuracy, Vanguard always encourages shareholders to invest with a long-term view, to diversify within and across asset classes, and to pay attention to costs.

 

Fixed income investments have an important role to play in a balanced, diversified portfolio. A fixed income allocation can moderate the volatility of an all-stock portfolio while generating a steady stream of income. For investors in higher tax brackets, municipal bonds can be an especially attractive option.

 

Along with an experienced portfolio management team, your fund’s advisor, Vanguard Fixed Income Group, has a large and experienced credit analysis group that independently evaluates high-quality municipal securities issued by a broad cross section of New Jersey state and local governments as well as regional authorities. And by keeping expenses low, the advisor helps investors keep more of their funds’ returns. Both the New Jersey Tax-Exempt Money Market Fund and the New Jersey Long-Term Tax-Exempt Fund can play important roles in helping you build a diversified portfolio to achieve your financial goals.

 

Thank you for entrusting your assets to Vanguard.

 

Sincerely,

 


 

John J. Brennan

Chairman and Chief Executive Officer

December 14, 2007

 

 

6

Advisor’s Report

 

For the fiscal year ended November 30, 2007, Vanguard New Jersey Tax-Exempt Money Market Fund returned 3.6%, exceeding the average return of its peers. The Investor Shares of Vanguard New Jersey Long-Term Tax-Exempt Fund returned 2.0%, lagging the fund’s benchmark index but outperforming the peer-group average. (The fund’s Admiral Shares returned 2.1%.)

 

The investment environment

Over the past year, the U.S. economy has expanded slightly below its potential long-run growth rate. The Commerce Department’s estimate of growth in real gross domestic product (GDP) for the 12 months ended September 30, 2007, was 2.8%. Robust GDP growth in the July–September quarter was fueled by surging global demand for U.S. exports (made more attractive by a relatively weak dollar) and an expanding service sector. Consumer spending, adjusted for inflation, grew at a 2.9% pace for the 12 months ended November 30, thanks to rising incomes and a fairly tight labor market. Consensus expectations point to a moderation in real GDP growth going forward as the housing recession continues and the attendant “credit crunch” increases financing costs.

 

The rate of consumer inflation accelerated toward the end of 2007 as food and energy prices rose. For the 12 months ended November 30, the Consumer Price Index (CPI) increased 4.3%. Expectations

 

 

Yields of Municipal Securities

 

 

(AAA-Rated General-Obligation Issues)

 

 

 

November 30,

November 30,

Maturity

2006

2007

2 years

3.45%

3.18%

5 years

3.43

3.26

10 years

3.56

3.62

30 years

3.91

4.32

 

 

Yields of U.S. Treasury Securities

 

 

 

November 30,

November 30,

Maturity

2006

2007

2 years

4.61%

3.00%

5 years

4.45

3.39

10 years

4.46

3.94

30 years

4.56

4.38

 

 

Source: Vanguard.

 

 

7

for core CPI inflation (excluding food and energy prices) are for a modest and gradual deceleration toward or even below 2% in coming months.

 

Following its 50-basis-point reduction in the federal funds target rate in September, the Federal Reserve Board again lowered its target, by 25 basis points, to 4.5% on October 31. On December 11, after the end of the fiscal year, the Fed reduced the target rate by another 25 basis points to 4.25%. In its statement at that time, the Fed commented that “economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending,” although recent actions “should help promote moderate growth over time.” Many financial market participants expect further reductions in the federal funds rate in 2008, given expectations for slower growth, stable core inflation rates, and ongoing concerns about credit availability.

 

Impact of subprime lending woes

Over the 12 months ended November 30, municipal bonds underperformed U.S. Treasuries across the yield curve. This reflected a global “flight to quality” that produced a rally in Treasuries as the subprime lending crisis continued to unnerve the credit markets. The relative underperformance of municipal bonds was exacerbated by credit concerns surrounding some of the municipal insurance companies that backstop many AAA-rated municipal bonds. The net effect of these forces was to cheapen high-quality tax-exempt bonds to extraordinarily attractive levels on an after-tax basis.

 

For fiscal-year 2007, total tax-exempt issuance increased 24.6% to $451.9 billion. At the end of the period, municipal market issuance appeared headed toward a calendar-year record. In New Jersey, total tax-exempt issuance grew 25.0%, similar to the nationwide trend.

 

Management of the funds

Yields rose in the New Jersey Tax-Exempt Money Market Fund during the first half of the fiscal year, then fell in the second half, finishing the period mostly unchanged. The fund outperformed the average return of its peer group by one-half percentage point, benefiting from our emphasis on the market’s highest-quality securities and the fund’s low expenses. The New Jersey Long-Term Tax-Exempt Fund’s performance reflected these same characteristics, outpacing the peer-group average. On an absolute basis, however, the Investor Shares’ 2.0% return was modest, as rising interest rates for longer-term bonds put pressure on the portfolio’s holdings.

 

About half of all outstanding municipal debt is guaranteed by various insurance companies. Recent news about some of these companies has brought into question the durability of AAA ratings,

 

 

 

8

 

 

given the insurers’ exposure to guaranteed residential mortgage-backed securities. It is important to remember that the decision to invest in insured bonds and money market instruments depends first and foremost on the quality of the underlying tax-exempt issuer.

 

As a matter of course, Vanguard always looks carefully beneath the surface, to an evaluation of the underlying credit as the key factor in the purchase of a tax-exempt instrument. Our large and experienced municipal credit group conducts a focused and diligent examination of all holdings, and we believe our shareholders can continue to rely on the rigorous review and oversight process that is consistent with our funds’ objectives.

 

We expect that our funds’ combination of low costs, prudent management, and bias toward high-quality issues will continue to produce more-than-competitive returns.

 

Marlin G. Brown, Portfolio Manager

 

John M. Carbone, Principal

 

Vanguard Fixed Income Group

 

December 18, 2007

 

 

 

9

 

New Jersey Tax-Exempt Money Market Fund

 

Fund Profile

As of November 30, 2007

 

Financial Attributes

 

 

 

Yield

3.5%

Average Weighted Maturity

35 days

Average Quality1

MIG-1

Expense Ratio

0.10%

 

Distribution by Credit Quality2 (% of portfolio)

 

 

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

88.0%

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

11.0

AAA/AA

1.0

 

 

 

 

 

1

Moody’s Investors Service.

2

Ratings: Moody’s Investors Service, Standard & Poor’s, Fitch. See page 50 for a glossary of investment terms.

 

10

 

 

New Jersey 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 $1 per share, it is possible to lose money by investing in the fund. The annualized yield shown reflects the current earnings of the fund more closely than do the average annual returns.

 

Cumulative Performance: November 30, 1997–November 30, 2007

Initial Investment of $10,000

 


 

 

 

 

 

Average Annual Total Returns

Final Value

Periods Ended November 30, 2007

of a $10,000

 

One Year

Five Years

Ten Years

Investment

New Jersey Tax-Exempt Money Market Fund1

3.60%

2.18%

2.47%

$12,761

Average New Jersey Tax-Exempt Money Market Fund2

3.11

1.70

2.05

12,247

 

 

1

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

2

Returns for the Average New Jersey Tax-Exempt Money Market Fund are derived from data provided by Lipper Inc.

 

11

 

New Jersey Tax-Exempt Money Market Fund

 

 

Fiscal-Year Total Returns (%): November 30, 1997–November 30, 2007

 

 

 

Average

 

 

Fund1

Fiscal

Total

Total

Year

Return

Return

1998

3.2%

2.8%

1999

2.9

2.5

2000

3.7

3.4

2001

2.8

2.4

2002

1.3

0.9

2003

0.9

0.5

2004

1.0

0.5

2005

2.2

1.7

2006

3.3

2.8

2007

3.6

3.1

SEC 7-Day Annualized Yield (11/30/2007): 3.46%

 

 

 

 

Average Annual Total Returns: Periods Ended September 30, 2007

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

New Jersey Tax-Exempt Money Market Fund2

2/3/1988

3.59%

2.11%

2.47%

 

 

 

 

1

Returns for the Average New Jersey Tax-Exempt Money Market Fund are derived from data provided by Lipper Inc.

2

Total returns do not include the account service fee that may be applicable to certain accounts with balances below $10,000. Note: See Financial Highlights table on page 24 for dividend information.

 

 

12

 

New Jersey Tax-Exempt Money Market Fund

 

 

Financial Statements

 

Statement of Net Assets

As of November 30, 2007

 

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)

Municipal Bonds (99.3%)

 

 

 

 

 

 

Avalon NJ BAN

4.000%

5/22/08

 

13,760

13,782

 

Borough of Madison BAN

4.000%

10/17/08

 

10,000

10,044

 

Burlington County NJ BAN

4.000%

12/27/07

 

11,200

11,202

 

Burlington County NJ BAN

4.000%

2/29/08

 

34,655

34,686

1

Burlington County NJ Bridge Comm. Rev.

 

 

 

 

 

 

TOB VRDO

3.820%

12/7/07

(2)

5,300

5,300

1

Burlington County NJ Bridge Comm. Rev.

 

 

 

 

 

 

TOB VRDO

3.820%

12/7/07

 

5,690

5,690

 

Camden County NJ Improvement Auth.

 

 

 

 

 

 

Lease Rev. VRDO

3.550%

12/7/07

LOC

49,500

49,500

 

Clinton Township NJ BAN

4.250%

7/16/08

 

5,000

5,015

 

Clinton Township NJ Board Educ. Temporary Notes

4.250%

1/9/08

 

7,195

7,199

 

Cranbury Township NJ BAN

4.000%

12/6/07

 

5,826

5,826

 

Cranbury Township NJ BAN

4.000%

12/5/08

 

2,811

2,826

 

Delaware River & Bay Auth. New Jersey Rev. VRDO

3.530%

12/7/07

(2)

5,000

5,000

1

Delaware River Joint Toll Bridge Comm.

 

 

 

 

 

 

Pennsylvania & New Jersey Rev. TOB VRDO

3.660%

12/7/07

(1)

12,865

12,865

1

Delaware River Port Auth. Pennsylvania &

 

 

 

 

 

 

New Jersey Rev. TOB VRDO

3.720%

12/7/07

(4)

9,995

9,995

1

Delaware River Port Auth. Pennsylvania &

 

 

 

 

 

 

New Jersey Rev. TOB VRDO

3.720%

12/7/07

(4)

8,000

8,000

 

East Brunswick Township NJ BAN

4.250%

2/21/08

 

10,190

10,204

1

Egg Harbor Township NJ School Dist.

 

 

 

 

 

 

GO TOB VRDO

3.470%

12/7/07

(4)

4,485

4,485

 

Essex County NJ Improvement Auth. Rev.

 

 

 

 

 

 

(Jewish Community Center) VRDO

3.590%

12/7/07

LOC

7,000

7,000

 

Essex County NJ Improvement Auth. Rev.

 

 

 

 

 

 

(Pooled Govt. Loan) VRDO

3.540%

12/7/07

LOC

40,400

40,400

1

Essex County NJ Improvement Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.660%

12/7/07

(2)

28,565

28,565

1

Essex County NJ Improvement Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.660%

12/7/07

(1)

11,490

11,490

1

Essex County NJ Improvement Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.670%

12/7/07

(2)

5,400

5,400

 

Fort Lee NJ BAN

4.000%

5/23/08

 

20,572

20,606

 

Franklin Lakes NJ BAN

4.000%

3/13/08

 

4,095

4,099

1

Garden State Preservation Trust New Jersey

 

 

 

 

 

 

TOB VRDO

3.420%

12/7/07

(4)

12,960

12,960

 

 

13

New Jersey Tax-Exempt Money Market Fund

 

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value•

 

 

Coupon

Date

 

($000)

($000)

1

Garden State Preservation Trust New Jersey

 

 

 

 

 

 

TOB VRDO

3.660%

12/7/07

(4)

9,695

9,695

1

Garden State Preservation Trust New Jersey

 

 

 

 

 

 

TOB VRDO

3.660%

12/7/07

(4)

9,830

9,830

 

Hopewell Township NJ BAN

4.250%

6/27/08

 

8,895

8,920

1

Hudson County NJ CTFS Partner Merlots

 

 

 

 

 

 

TOB VRDO

3.670%

12/7/07

(1)

4,960

4,960

1

Madison Borough NJ Board of Educ. TOB VRDO

3.620%

12/7/07

(1)

11,795

11,795

 

Madison NJ Borough Board of Education

 

 

 

 

 

 

Temporary Notes

4.000%

3/5/08

 

11,084

11,092

 

Mercer County NJ BAN

4.000%

6/13/08

 

10,500

10,517

 

Middlesex County NJ BAN

4.000%

6/12/08

 

20,152

20,183

 

Monroe Township NJ BAN

4.250%

2/14/08

 

11,866

11,880

 

Montgomery Township NJ BAN

4.000%

1/18/08

 

13,500

13,503

 

Montville Township NJ BAN

4.000%

5/23/08

 

5,951

5,961

 

Moorestown Township NJ BAN

4.000%

5/23/08

 

2,646

2,650

 

Moorestown Township NJ BAN

4.250%

9/5/08

 

4,928

4,946

 

Morris Hills NJ Regional School Dist. Notes

4.250%

6/18/08

 

12,000

12,032

 

Mount Laurel Township NJ BAN

4.000%

5/23/08

 

10,393

10,410

1

New Jersey Building Auth. Rev. TOB VRDO

3.620%

12/7/07

(1)

20,820

20,820

1

New Jersey COP TOB VRDO

3.420%

12/7/07

(2)

12,000

12,000

1

New Jersey Casino Reinvestment Dev. Auth. Rev.

 

 

 

 

 

 

(Hotel Room Fee) TOB VRDO

3.670%

12/7/07

(1)

4,760

4,760

 

New Jersey Econ. Dev. Auth.

 

 

 

 

 

 

(Port Newark Container) VRDO

3.630%

12/7/07

LOC

15,300

15,300

 

New Jersey Econ. Dev. Auth. Fac. Rev.

 

 

 

 

 

 

(Logan Project) CP

3.420%

2/6/08

LOC

55,000

55,000

1

New Jersey Econ. Dev. Auth. Lease Rev.

 

 

 

 

 

 

TOB VRDO

3.820%

12/7/07

(1)

6,510

6,510

 

New Jersey Econ. Dev. Auth.

 

 

 

 

 

 

Market Transition Fac. Rev.

5.000%

7/1/08

(1)

17,000

17,119

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Airis Newark LLC Project) VRDO

3.630%

12/7/07

(2)

37,010

37,010

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Bennedictine Abbey Newark) VRDO

3.540%

12/7/07

LOC

19,000

19,000

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Bennedictine Abbey Newark) VRDO

3.540%

12/7/07

LOC

8,925

8,925

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Chambers Cogeneration Limited Partnership) CP

3.490%

2/1/08

LOC

30,100

30,100

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Columbia Univ. Project) CP

3.470%

1/14/08

 

9,230

9,230

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Frisch School Project) VRDO

3.540%

12/7/07

LOC

21,450

21,450

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Geriatric Services Housing Corp.) VRDO

3.570%

12/7/07

LOC

6,245

6,245

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Hoffman-La Roche) VRDO

3.510%

12/3/07

LOC

17,500

17,500

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Jewish Community Center) VRDO

3.600%

12/7/07

LOC

5,250

5,250

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Lawrenceville School Project) VRDO

3.520%

12/3/07

 

22,000

22,000

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Metuchen Project) VRDO

3.540%

12/7/07

LOC

12,650

12,650

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Motor Vehicle Comm.) TOB VRDO

3.610%

12/7/07

(1)

7,075

7,075

 

 

14

New Jersey Tax-Exempt Money Market Fund

 

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value•

 

 

Coupon

Date

 

($000)

($000)

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Motor Vehicle Comm.) TOB VRDO

3.640%

12/7/07

(1)

8,000

8,000

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Ocean Spray Cranberries) VRDO

3.660%

12/7/07

LOC

8,000

8,000

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Order Saint Benedict Project) VRDO

3.590%

12/7/07

LOC

16,180

16,180

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Passaic Hebrew Institute) VRDO

3.580%

12/7/07

LOC

3,150

3,150

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Peddie School Project) VRDO

3.540%

12/7/07

 

6,725

6,725

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Peddie School Project) VRDO

3.550%

12/7/07

 

5,000

5,000

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Peddie School Project) VRDO

3.550%

12/7/07

 

1,500

1,500

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(Peddie School Project) VRDO

3.550%

12/7/07

 

7,300

7,300

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB PUT

3.780%

3/6/08

(4)

11,320

11,320

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB VRDO

3.620%

12/7/07

(2)(4)

20,185

20,185

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB VRDO

3.620%

12/7/07

(4)

10,365

10,365

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB VRDO

3.640%

12/7/07

(2)

6,500

6,500

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB VRDO

3.660%

12/7/07

(2)

10,650

10,650

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB VRDO

3.660%

12/7/07

(2)

6,960

6,960

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB VRDO

3.660%

12/7/07

(4)

14,330

14,330

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB VRDO

3.670%

12/7/07

(2)

6,500

6,500

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB VRDO

3.670%

12/7/07

(3)(Prere.)

35,940

35,940

1

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) TOB VRDO

3.690%

12/7/07

(2)

24,935

24,935

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) VRDO

3.490%

12/3/07

LOC

70,000

70,000

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(School Fac.) VRDO

3.520%

12/3/07

LOC

122,900

122,900

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

 

(United States Golf Assn.) VRDO

3.550%

12/7/07

LOC

4,900

4,900

1

New Jersey Econ. Dev. Auth. Rev. TOB PUT

3.730%

3/6/08

(2)(3)(4)

40,490

40,490

1

New Jersey Econ. Dev. Auth. Rev. TOB VRDO

3.610%

12/7/07

(1)

33,220

33,220

1

New Jersey Econ. Dev. Auth. Rev. TOB VRDO

3.620%

12/7/07

(1)

7,330

7,330

1

New Jersey Econ. Dev. Auth. Rev. TOB VRDO

3.720%

12/7/07

(4)

9,470

9,470

1

New Jersey Econ. Dev. Auth. Water Fac. Rev.

 

 

 

 

 

 

(New Jersey Water Co. Project) TOB VRDO

3.710%

12/7/07

(3)

4,850

4,850

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Caldwell College) VRDO

3.570%

12/7/07

LOC

20,950

20,950

1

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Institute for Advanced Studies) TOB VRDO

3.820%

12/7/07

(1)

6,670

6,670

1

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Institute for Advanced Studies) VRDO

3.320%

12/7/07

 

12,100

12,100

 

15

New Jersey Tax-Exempt Money Market Fund

 

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value•

 

 

Coupon

Date

 

($000)

($000)

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Institute for Advanced Studies) VRDO

3.320%

12/7/07

 

20,000

20,000

1

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Institute for Defense Analyses) VRDO

3.610%

12/7/07

(2)

12,215

12,215

1

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Montclair State Univ.) TOB VRDO

3.640%

12/7/07

(1)

4,905

4,905

1

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Montclair State Univ.) TOB VRDO

3.660%

12/7/07

(2)

12,256

12,256

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Princeton Univ.)

5.500%

7/1/08

 

3,575

3,612

1

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Princeton Univ.) TOB VRDO

3.650%

12/7/07

(Prere.)

4,735

4,735

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Princeton Univ.) VRDO

3.560%

12/3/07

 

20,000

20,000

1

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Rowan Univ.) TOB VRDO

3.620%

12/7/07

(2)

2,760

2,760

1

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Rowan Univ.) TOB VRDO

3.660%

12/7/07

(3)

4,265

4,265

1

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

 

(Rowan Univ.) TOB VRDO

3.720%

12/7/07

(3)

13,010

13,010

1

New Jersey Environmental Infrastructure Trust

 

 

 

 

 

 

TOB VRDO

3.620%

12/7/07

 

6,825

6,825

1

New Jersey Environmental Infrastructure Trust

 

 

 

 

 

 

TOB VRDO

3.620%

12/7/07

 

6,055

6,055

1

New Jersey GO TOB VRDO

3.600%

12/3/07

 

28,725

28,725

1

New Jersey GO TOB VRDO

3.620%

12/7/07

(2)

8,755

8,755

1

New Jersey GO TOB VRDO

3.630%

12/7/07

(3)

3,340

3,340

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Capital Health Systems Obligated Group) VRDO

3.560%

12/7/07

LOC

21,615

21,615

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Hosp. Capital Asset Pooled Program) VRDO

3.510%

12/7/07

LOC

21,000

21,000

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Hosp. Capital Asset Pooled Program) VRDO

3.510%

12/7/07

LOC

23,600

23,600

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Hosp. Capital Asset Pooled Program) VRDO

3.510%

12/7/07

LOC

20,000

20,000

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Hosp. Capital Asset Pooled Program) VRDO

3.510%

12/7/07

LOC

24,500

24,500

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Meridian Health Systems) VRDO

3.510%

12/7/07

LOC

36,400

36,400

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Robert Wood Johnson Univ.) VRDO

3.550%

12/7/07

LOC

15,600

15,600

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Robert Wood Johnson Univ.) VRDO

3.560%

12/7/07

LOC

35,195

35,195

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Southern Ocean County Hosp.) VRDO

3.590%

12/7/07

LOC

9,030

9,030

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(St. Barnabas Medical Center) VRDO

3.560%

12/7/07

LOC

11,585

11,585

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

(Virtua Health) VRDO

3.560%

12/7/07

LOC

8,600

8,600

1

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.610%

12/7/07

(2)

10,500

10,500

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

VRDO

3.540%

12/7/07

LOC

17,660

17,660

 

 

16

New Jersey Tax-Exempt Money Market Fund

 

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value•

 

 

Coupon

Date

 

($000)

($000)

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

 

VRDO

3.580%

12/7/07

LOC

21,395

21,395

1

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Multi-Family Housing Rev. TOB VRDO

3.470%

12/7/07

(4)

5,025

5,025

1

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Multi-Family Housing Rev. TOB VRDO

3.670%

12/7/07

(3)

3,415

3,415

1

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Multi-Family Housing Rev. TOB VRDO

3.710%

12/7/07

(1)

17,995

17,995

1

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Multi-Family Housing Rev. TOB VRDO

3.720%

12/7/07

(7)

20,545

20,545

 

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Multi-Family Housing Rev. VRDO

3.610%

12/7/07

(4)

15,375

15,375

 

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Multi-Family Housing Rev. VRDO

3.630%

12/7/07

(3)

24,770

24,770

 

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Multi-Family Housing Rev. VRDO

3.630%

12/7/07

(1)

12,380

12,380

 

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Multi-Family Housing Rev. VRDO

3.630%

12/7/07

(4)

16,085

16,085

 

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Multi-Family Housing Rev. VRDO

3.630%

12/7/07

(1)

26,620

26,620

 

New Jersey Housing & Mortgage Finance

 

 

 

 

 

 

Agency Rev. VRDO

3.330%

12/7/07

 

16,000

16,000

 

New Jersey Housing & Mortgage Finance

 

 

 

 

 

 

Agency Rev. VRDO

3.430%

12/7/07

LOC

33,935

33,935

 

New Jersey Housing & Mortgage Finance

 

 

 

 

 

 

Agency Rev. VRDO

3.430%

12/7/07

LOC

32,400

32,400

 

New Jersey Housing & Mortgage Finance

 

 

 

 

 

 

Agency Rev. VRDO

3.530%

12/7/07

 

21,960

21,960

 

New Jersey Housing & Mortgage Finance

 

 

 

 

 

 

Agency Rev. VRDO

3.580%

12/7/07

 

19,900

19,900

1

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Single Family Housing Rev. TOB VRDO

3.710%

12/7/07

 

29,095

29,095

 

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

 

Single Family Rev. VRDO

3.570%

12/7/07

 

15,000

15,000

1

New Jersey Sports & Exposition Auth. Rev.

 

 

 

 

 

 

(Convention Center Luxury Tax) TOB VRDO

3.820%

12/7/07

(1)

5,345

5,345

1

New Jersey State (Montclair Univ.) TOB VRDO

3.420%

12/7/07

(1)

12,065

12,065

1

New Jersey State Transp. Rev. TOB VRDO

3.470%

12/7/07

(4)

4,000

4,000

1

New Jersey State Transp. Trust Fund Auth. Cap

 

 

 

 

 

 

TOB VRDO

3.660%

12/7/07

(2)(4)

25,000

25,000

 

New Jersey TRAN

4.500%

6/24/08

 

75,000

75,366

1

New Jersey Transp. Corp. COP TOB VRDO

3.720%

12/7/07

(3)

9,635

9,635

1

New Jersey Transp. Corp. TOB VRDO

3.720%

12/7/07

(3)

9,350

9,350

 

New Jersey Transp. Trust Fund Auth. Rev.

5.000%

6/15/08

(ETM)

3,025

3,045

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB PUT

3.780%

3/6/08

(3)

5,300

5,300

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.610%

12/7/07

(1)(2)

7,000

7,000

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.620%

12/7/07

(4)

6,000

6,000

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.630%

12/7/07

(1)

9,340

9,340

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.630%

12/7/07

(1)

4,345

4,345

 

 

17

New Jersey Tax-Exempt Money Market Fund

 

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value•

 

 

Coupon

Date

 

($000)

($000)

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.630%

12/7/07

(4)

9,735

9,735

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.630%

12/7/07

(4)

7,495

7,495

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.630%

12/7/07

(4)

28,700

28,700

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.640%

12/7/07

(4)(Prere.)

6,975

6,975

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.640%

12/7/07

(1)

6,205

6,205

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.640%

12/7/07

(4)(Prere.)

1,475

1,475

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.640%

12/7/07

(1)

15,905

15,905

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.660%

12/7/07

(2)

9,300

9,300

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.670%

12/7/07

(1)

10,450

10,450

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.670%

12/7/07

(1)

5,980

5,980

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.670%

12/7/07

(2)

3,745

3,745

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.670%

12/7/07

(3)

5,290

5,290

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.720%

12/7/07

(3)

23,190

23,190

1

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.720%

12/7/07

(1)

8,495

8,495

1

New Jersey Transp. Trust Fund Auth.

 

 

 

 

 

 

Transp. System TOB VRDO

3.650%

12/7/07

(4)

21,995

21,995

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.610%

12/7/07

(1)

5,000

5,000

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.610%

12/7/07

(4)

7,710

7,710

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.620%

12/7/07

(4)

6,745

6,745

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.620%

12/7/07

(1)

18,175

18,175

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.640%

12/7/07

(2)

16,215

16,215

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.640%

12/7/07

(4)

8,250

8,250

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.660%

12/7/07

(2)

18,875

18,875

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.670%

12/7/07

(3)

13,680

13,680

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.820%

12/7/07

(3)

7,095

7,095

1

New Jersey Turnpike Auth. Rev. TOB VRDO

3.820%

12/7/07

(1)

4,995

4,995

 

New Jersey Turnpike Auth. Rev. VRDO

3.530%

12/7/07

(3)LOC

140,600

140,600

 

New Jersey Turnpike Auth. Rev. VRDO

3.620%

12/7/07

(4)

10,000

10,000

 

Ocean Township NJ BAN

4.250%

1/9/08

 

4,500

4,502

 

Paramus NJ Board of Educ. GAN

4.000%

11/7/08

 

8,827

8,875

 

Piscataway Township NJ BAN

4.250%

1/24/08

 

17,647

17,661

 

Port Auth of New York & New Jersey Rev. VRDO

3.530%

12/3/07

 

4,500

4,500

 

Port Auth. of New York & New Jersey CP

3.560%

12/17/07

 

3,200

3,200

 

Port Auth. of New York & New Jersey CP

3.560%

12/18/07

 

8,175

8,175

 

Port Auth. of New York & New Jersey CP

3.470%

1/14/08

 

28,470

28,470

 

Port Auth. of New York & New Jersey CP

3.380%

2/6/08

 

17,090

17,090

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB PUT

3.780%

3/6/08

(4)

25,110

25,110

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB VRDO

3.630%

12/7/07

(3)

4,500

4,500

 

 

18

New Jersey Tax-Exempt Money Market Fund

 

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value•

 

 

Coupon

Date

 

($000)

($000)

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB VRDO

3.640%

12/7/07

(3)

4,000

4,000

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB VRDO

3.640%

12/7/07

(3)

15,000

15,000

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB VRDO

3.640%

12/7/07

(10)

2,940

2,940

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB VRDO

3.640%

12/7/07

(3)

3,900

3,900

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB VRDO

3.710%

12/7/07

(3)

5,930

5,930

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB VRDO

3.730%

12/7/07

(3)

2,586

2,586

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB VRDO

3.760%

12/7/07

(3)

4,990

4,990

1

Port Auth. of New York & New Jersey Rev.

 

 

 

 

 

 

TOB VRDO

3.820%

12/7/07

(10)

5,215

5,215

 

Port Auth. of New York & New Jersey Special

 

 

 

 

 

 

Obligation Rev. (Versatile Structure) VRDO

3.510%

12/3/07

 

3,100

3,100

 

Port Auth. of New York & New Jersey Special

 

 

 

 

 

 

Obligation Rev. (Versatile Structure) VRDO

3.530%

12/3/07

 

13,900

13,900

 

Port Auth. of New York & New Jersey Special

 

 

 

 

 

 

Obligation Rev. (Versatile Structure) VRDO

3.670%

12/3/07

 

6,600

6,600

 

Princeton Univ. New Jersey CP

3.480%

12/11/07

 

7,650

7,650

 

Raritan Township NJ BAN

4.250%

8/8/08

 

6,375

6,397

 

Rutgers State Univ. New Jersey GO CP

3.700%

1/4/08

 

19,569

19,569

 

Rutgers State Univ. New Jersey VRDO

3.400%

12/3/07

 

20,100

20,100

 

Salem County NJ Financing Auth. PCR

 

 

 

 

 

 

(Atlantic City Electric Co.) VRDO

3.580%

12/7/07

(1)

2,300

2,300

 

Salem County NJ Financing Auth. PCR

 

 

 

 

 

 

(Atlantic City Electric Co.) VRDO

3.650%

12/7/07

(1)

3,000

3,000

 

Salem County NJ Financing Auth. PCR

 

 

 

 

 

 

(Exelon Project) CP

3.360%

2/6/08

LOC

19,000

19,000

 

Scotch Plains Township NJ BAN

4.250%

1/25/08

 

5,000

5,005

 

Secaucus NJ BAN

4.250%

1/18/08

 

6,907

6,912

 

Sparta Township NJ BAN

4.000%

5/30/08

 

5,395

5,403

 

Tewksbury Township NJ BAN

4.250%

6/27/08

 

5,979

5,996

 

Tewksbury Township NJ BAN

4.000%

10/24/08

 

5,159

5,182

1

Tobacco Settlement Financing Corp.

 

 

 

 

 

 

New Jersey Rev. TOB VRDO

3.620%

12/7/07

(Prere.)

29,085

29,085

1

Tobacco Settlement Financing Corp.

 

 

 

 

 

 

New Jersey Rev. TOB VRDO

3.670%

12/7/07

(Prere.)

6,800

6,800

1

Tobacco Settlement Financing Corp.

 

 

 

 

 

 

New Jersey Rev. TOB VRDO

3.670%

12/7/07

(Prere.)

13,000

13,000

1

Tobacco Settlement Financing Corp.

 

 

 

 

 

 

New Jersey Rev. TOB VRDO

3.780%

12/7/07

(Prere.)

18,000

18,000

 

Union County NJ BAN

4.000%

2/28/08

 

75,000

75,064

 

Union County NJ BAN

4.250%

5/1/08

 

15,000

15,034

 

Univ. of Medicine & Dentistry New Jersey Rev.

 

 

 

 

 

 

VRDO

3.580%

12/7/07

(2)

30,000

30,000

1

Washington Township NJ Board of Educ.

 

 

 

 

 

 

TOB VRDO

3.610%

12/7/07

(4)

11,845

11,845

 

Watchung Hills NJ Regional High School

 

 

 

 

 

 

District Notes

4.250%

7/9/08

 

3,000

3,008

 

Woodbridge Township NJ Board of Educ. BAN

4.000%

11/7/08

 

15,000

15,081

 

19

New Jersey Tax-Exempt Money Market Fund

 

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

 

Amount

Value•

 

 

Coupon

Date

 

($000)

($000)

 

Outside New Jersey:

 

 

 

 

 

1

Puerto Rico Electric Power Auth. Rev. TOB VRDO

3.600%

12/7/07

(4)

7,245

7,245

1

Puerto Rico Electric Power Auth. Rev. TOB VRDO

3.640%

12/7/07

(4)

4,756

4,756

1

Puerto Rico Electric Power Auth. Rev. TOB VRDO

3.670%

12/7/07

(4)

10,000

10,000

1

Puerto Rico Highway & Transp. Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.630%

12/7/07

 

29,200

29,200

1

Puerto Rico Highway & Transp. Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.650%

12/7/07

(3)

18,775

18,775

1

Puerto Rico Highway & Transp. Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.650%

12/7/07

(3)

5,120

5,120

1

Puerto Rico Highway & Transp. Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.660%

12/7/07

(3)

11,735

11,735

1

Puerto Rico Highway & Transp. Auth. Rev.

 

 

 

 

 

 

TOB VRDO

3.660%

12/7/07

(11)(12)

15,000

15,000

1

Puerto Rico Ind. Medical & Environmental Fac.

 

 

 

 

 

 

Finance Auth. Rev. PCR (Abbott Laboratories) PUT

3.950%

3/1/08

 

12,575

12,575

1

Puerto Rico Infrastructure Financing Auth. Special

 

 

 

 

 

 

Obligation Bonds TOB VRDO

3.670%

12/7/07

(ETM)

49,805

49,805

1

Puerto Rico Public Finance Corp. TOB VRDO

3.600%

12/7/07

(3)

6,240

6,240

1

Puerto Rico Public Finance Corp. TOB VRDO

3.830%

12/7/07

(11)

31,107

31,107

1

Puerto Rico Sales Tax Financing Corp. Rev.

 

 

 

 

 

 

TOB VRDO

3.600%

12/7/07

(3)

8,900

8,900

1

Puerto Rico Sales Tax Financing Corp. Rev.

 

 

 

 

 

 

TOB VRDO

3.650%

12/7/07

(3)

7,425

7,425

1

Puerto Rico Sales Tax Financing Corp. Rev.

 

 

 

 

 

 

TOB VRDO

3.670%

12/7/07

(1)(3)

10,000

10,000

Total Municipal Bonds (Cost $3,423,139)

 

 

 

 

3,423,139

 

Other Assets and Liabilities (0.7%)

 

 

 

 

 

 

Other Assets—Note B

 

 

 

 

47,050

 

Liabilities

 

 

 

 

(22,161)

 

 

 

 

 

 

 

24,889

Net Assets (100%)

 

 

 

 

 

 

Applicable to 3,447,834,335 outstanding $.001 par value shares of

 

 

 

 

beneficial interest (unlimited authorization)

 

 

 

 

3,448,028

 

Net Asset Value Per Share

 

 

 

 

$1.00

 

 

 

At November 30, 2007, net assets consisted of:

 

 

 

Amount

Per

 

($000)

Share

Paid-in Capital

3,448,073

1.00

Undistributed Net Investment Income

—

—

Accumulated Net Realized Losses

(45)

—

Unrealized Appreciation

—

—

Net Assets

3,448,028

$1.00

 

•

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 November 30, 2007, the aggregate value of these securities was $1,415,195,000, representing 41.0% of net assets.

For a key to abbreviations and other references, see page 21.

 

20

New Jersey 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.

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

New Jersey Tax-Exempt Money Market Fund

 

Statement of Operations

 

 

Year Ended

November 30, 2007

 

($000)

Investment Income

 

Income

 

Interest

116,295

Total Income

116,295

Expenses

 

The Vanguard Group—Note B

 

Investment Advisory Services

261

Management and Administrative

2,024

Marketing and Distribution

816

Custodian Fees

27

Auditing Fees

17

Shareholders’ Reports

16

Trustees’ Fees and Expenses

3

Total Expenses

3,164

Expenses Paid Indirectly—Note C

(13)

Net Expenses

3,151

Net Investment Income

113,144

Realized Net Gain (Loss) on Investment Securities Sold

1

Change in Unrealized Appreciation (Depreciation) of Investment Securities

—

Net Increase (Decrease) in Net Assets Resulting from Operations

113,145

 

 

22

 

New Jersey Tax-Exempt Money Market Fund

 

Statement of Changes in Net Assets

 

 

Year Ended November 30,

 

2007

2006

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

113,144

85,071

Realized Net Gain (Loss)

1

30

Change in Unrealized Appreciation (Depreciation)

—

—

Net Increase (Decrease) in Net Assets Resulting from Operations

113,145

85,101

Distributions

 

 

Net Investment Income

(113,144)

(85,071)

Realized Capital Gain

—

—

Total Distributions

(113,144)

(85,071)

Capital Share Transactions (at $1.00)

 

 

Issued

3,005,742

2,351,557

Issued in Lieu of Cash Distributions

108,205

80,917

Redeemed

(2,452,550)

(2,166,613)

Net Increase (Decrease) from Capital Share Transactions

661,397

265,861

Total Increase (Decrease)

661,398

265,891

Net Assets

 

 

Beginning of Period

2,786,630

2,520,739

End of Period

3,448,028

2,786,630

 

 

23

New Jersey Tax-Exempt Money Market Fund

 

Financial Highlights

 

 

 

Year Ended November 30,

For a Share Outstanding

 

 

 

 

 

Throughout Each Period

2007

2006

2005

2004

2003

Net Asset Value, Beginning of Period

$1.00

$1.00

$1.00

$1.00

$1.00

Investment Operations

 

 

 

 

 

Net Investment Income

.035

.032

.021

.010

.009

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

—

—

—

—

—

Total from Investment Operations

.035

.032

.021

.010

.009

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.035)

(.032)

(.021)

(.010)

(.009)

Distributions from Realized Capital Gains

—

—

—

—

—

Total Distributions

(.035)

(.032)

(.021)

(.010)

(.009)

Net Asset Value, End of Period

$1.00

$1.00

$1.00

$1.00

$1.00

 

 

 

 

 

 

Total Return1

3.60%

3.25%

2.17%

1.03%

0.87%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$3,448

$2,787

$2,521

$2,074

$1,874

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.10%

0.13%

0.13%

0.13%

0.17%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

3.53%

3.21%

2.17%

1.03%

0.87%

 

 

 

1

Total returns do not include the account service fee that may be applicable to certain accounts with balances below $10,000. See accompanying Notes, which are an integral part of the Financial Statements.

 

24

New Jersey Tax-Exempt Money Market Fund

 

Notes to Financial Statements

 

Vanguard New Jersey 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 state of New Jersey.

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. Accordingly, no provision for federal income taxes is required in the 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 assets in capital contributions to Vanguard. At November 30, 2007, the fund had contributed capital of $284,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.28% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.

C. The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended November 30, 2007, custodian fee offset arrangements reduced the fund’s expenses by $13,000.

D. In June 2006, the Financial Accounting Standards Board issued Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes.” FIN 48 establishes the minimum threshold for recognizing, and a system for measuring, the benefits of tax-return positions in financial statements, and is effective for the fund’s fiscal year beginning December 1, 2007. Management has analyzed the fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended November 30, 2004–2007) for purposes of implementing FIN 48, and has concluded that as of November 30, 2007, no provision for income tax would be required in the fund’s financial statements.

 

25

New Jersey Long-Term Tax-Exempt Fund

 

Fund Profile

As of November 30, 2007

 

Financial Attributes

 

 

 

 

 

Comparative

Broad

 

Fund

Index1

Index2

Number of Issues

356

7,034

42,147

Yield

 

—

—

Investor Shares

3.9%

 

 

Admiral Shares

4.0%

 

 

Yield to Maturity

4.0%3

3.8%

4.0%

Average Coupon

4.8%

5.0%

5.0%

Average Effective

 

 

 

Maturity

9.1 years

9.9 years

13.4 years

Average Quality

AA+

AAA

AA+

Average Duration

6.7 years

6.2 years

7.2 years

Expense Ratio

 

—

—

Investor Shares

0.15%

 

 

Admiral Shares

0.08%

 

 

Short-Term Reserves

0.0%

—

—

 

Volatility Measures4

 

 

Fund Versus

Fund Versus

 

Comparative Index1

Broad Index2

R-Squared

0.95

0.98

Beta

1.08

1.28

 

Distribution by Maturity (% of portfolio)

 

 

Under 1 Year

6.6%

1–5 Years

24.8

5–10 Years

32.6

10–20 Years

27.7

20–30 Years

8.0

Greater than 30 Years

0.3

 

Distribution by Credit Quality (% of portfolio)

 

 

AAA

81.5%

AA

8.8

A

4.1

BBB

5.6

 

 

 

 

 

 











 

Investment Focus

 

 


1

Lehman 10 Year Municipal Bond Index.

2

Lehman Municipal Bond Index.

3

Before expenses.

4

For an explanation of R-squared, beta, and other terms used here, see the Glossary on page 50.

 

 

 

26

New Jersey 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.

 

Cumulative Performance: November 30, 1997–November 30, 2007

Initial Investment of $10,000

 


 

 

 

 

 

 

 

 

 

 

 

Average Annual Total Returns

Final Value

 

Periods Ended November 30, 2007

of a $10,000

 

One

Year

Five

Years

Ten

Years

Investment

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

Investor Shares1

2.04%

4.48%

5.18%

$16,577

Lehman Municipal Bond Index

2.71

4.68

5.30

16,760

Lehman 10 Year Municipal Bond Index

3.51

4.71

5.35

16,839

Average New Jersey Municipal Debt Fund2

0.99

3.95

4.23

15,131

 

 

 

 

 

Final Value

 

 

 

Since

of a $100,000

 

One Year

Five Years

Inception3

Investment

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

Admiral Shares

2.11%

4.54%

5.08%

$138,294

Lehman Municipal Bond Index

2.71

4.68

5.20

139,349

Lehman 10 Year Municipal Bond Index

3.51

4.71

5.21

139,481

 

 

1

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

2

Derived from data provided by Lipper Inc.

3

Performance for the fund’s Admiral Shares and comparative standards is calculated since the Admiral Shares’ inception: May 14, 2001.

27

New Jersey Long-Term Tax-Exempt Fund

 

 

Fiscal-Year Total Returns (%): November 30, 1997–November 30, 2007

 

 

 

 

Investor Shares

Lehman1

Fiscal

Capital

Income

Total

Total

Year

Return

Return

Return

Return

1998

2.3%

5.3%

7.6%

8.1%

1999

–6.2

4.9

–1.3

–0.4

2000

2.9

5.7

8.6

7.7

2001

3.4

5.2

8.6

8.2

2002

1.5

4.9

6.4

6.7

2003

2.1

4.7

6.8

6.9

2004

–1.2

4.5

3.3

4.0

2005

–1.1

4.4

3.3

3.0

2006

2.4

4.6

7.0

6.2

2007

–2.3

4.3

2.0

3.5

 

 

Average Annual Total Returns: Periods Ended September 30, 2007

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 Shares2

2/3/1988

2.80%

3.70%

0.30%

4.86%

5.16%

Admiral Shares

5/14/2001

2.87

3.77

0.343

4.693

5.033

 

 

1

Lehman 10 Year Municipal Bond Index.

2

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

3

Return since inception.

Note: See Financial Highlights tables on pages 42 and 43 for dividend and capital gains information.

 

28

New Jersey Long-Term Tax-Exempt Fund

 

Financial Statements

 

Statement of Net Assets

As of November 30, 2007

 

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)

 

Municipal Bonds (98.6%)

 

 

 

 

 

Atlantic County NJ Public Fac. COP

7.400%

3/1/10 (3)

1,755

1,908

 

Atlantic County NJ Public Fac. COP

7.400%

3/1/11 (3)

4,025

4,516

 

Atlantic County NJ Public Fac. COP

6.000%

3/1/14 (3)

3,685

4,174

 

Atlantic County NJ Public Fac. COP

6.000%

3/1/15 (3)

1,480

1,693

 

Atlantic County NJ Util. Auth. Sewer Rev.

6.875%

1/1/12 (2)(ETM)

1,565

1,672

 

Bergen County NJ Util. Auth. Water PCR

5.000%

12/15/31 (2)

2,500

2,607

 

Burlington County NJ Bridge Comm. Rev.

5.250%

12/15/21 (2)

3,200

3,472

 

Camden County NJ Improvement Auth. Lease Rev.

5.375%

9/1/10 (4)(Prere.)

850

897

 

Camden County NJ Improvement Auth. Lease Rev.

5.500%

9/1/10 (4)(Prere.)

1,470

1,556

 

Camden County NJ Improvement Auth. Lease Rev.

5.500%

5/1/12 (Prere.)

1,140

1,243

 

Camden County NJ Improvement Auth. Lease Rev.

5.500%

5/1/12 (Prere.)

1,025

1,118

 

Camden County NJ Improvement Auth. Lease Rev.

5.500%

5/1/12 (Prere.)

1,335

1,456

 

Camden County NJ Improvement Auth. Lease Rev.

5.500%

5/1/12 (Prere.)

1,265

1,380

 

Cape May County NJ Muni. Util. Auth. Rev.

5.750%

1/1/14 (4)

6,930

7,786

 

Cape May County NJ Muni. Util. Auth. Rev.

5.250%

1/1/17 (1)

2,560

2,721

 

Cape May County NJ Muni. Util. Auth. Rev.

5.250%

1/1/18 (1)

2,165

2,290

 

Cape May County NJ PCR (Atlantic City Electric)

6.800%

3/1/21 (1)

15,400

19,661

 

Cumberland County NJ Improvement Auth.

 

 

 

 

 

Solid Waste System Rev.

5.125%

1/1/25 (1)

5,685

6,052

 

Delaware River & Bay Auth. New Jersey Rev.

5.375%

1/1/10 (2)(Prere.)

750

789

 

Delaware River & Bay Auth. New Jersey Rev. VRDO

3.530%

12/6/07 (2)

7,200

7,200

 

Delaware River Port Auth. Pennsylvania &

 

 

 

 

 

New Jersey Rev.

5.750%

1/1/22 (4)

10,000

10,391

 

Delaware River Port Auth. Pennsylvania &

 

 

 

 

 

New Jersey Rev.

5.625%

1/1/26 (4)

5,000

5,172

 

Delaware River Port Auth. Pennsylvania &

 

 

 

 

 

New Jersey Rev.

5.750%

1/1/26 (4)

12,085

12,536

 

Egg Harbor Township NJ School Dist. GO

5.000%

7/15/11 (3)(Prere.)

2,640

2,819

 

Egg Harbor Township NJ School Dist. GO

5.000%

7/15/11 (3)(Prere.)

2,780

2,969

 

Egg Harbor Township NJ School Dist. GO

5.000%

7/15/11 (3)(Prere.)

2,000

2,136

 

Egg Harbor Township NJ School Dist. GO

5.000%

7/15/11 (3)(Prere.)

1,400

1,495

 

Egg Harbor Township NJ School Dist. GO

5.100%

7/15/11 (3)(Prere.)

2,950

3,160

 

Egg Harbor Township NJ School Dist. GO

5.500%

7/15/20 (4)

3,775

4,344

 

Egg Harbor Township NJ School Dist. GO

5.500%

7/15/21 (4)

3,995

4,601

 

Egg Harbor Township NJ School Dist. GO

5.500%

7/15/22 (4)

4,220

4,865

 

Egg Harbor Township NJ School Dist. GO

5.750%

7/15/24 (4)

4,715

5,583

 

Egg Harbor Township NJ School Dist. GO

5.750%

7/15/25 (4)

4,885

5,807

 

Essex County NJ Improvement Auth. Lease Rev.

5.750%

10/1/10 (3)(Prere.)

5,090

5,432

 

29

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

 

Face

Market

 

 

 

Maturity

Amount

Value•

 

 

Coupon

Date

($000)

($000)

 

Essex County NJ Improvement Auth. Lease Rev.

5.750%

10/1/10 (3)(Prere.)

3,390

3,618

 

Essex County NJ Improvement Auth. Lease Rev.

5.750%

10/1/10 (3)(Prere.)

2,650

2,828

 

Essex County NJ Improvement Auth. Rev.

5.250%

12/15/18 (2)

10,000

11,183

 

Essex County NJ Improvement Auth. Rev.

5.250%

12/15/20 (2)

5,010

5,609

 

Essex County NJ Improvement Auth. Rev.

5.250%

12/15/22 (2)

3,455

3,873

 

Essex County NJ Improvement Auth. Rev.

5.500%

10/1/23 (1)

12,065

13,790

 

Essex County NJ Improvement Auth. Rev.

5.250%

12/15/23 (2)

3,635

4,077

 

Essex County NJ Improvement Auth. Rev.

5.500%

10/1/24 (1)

6,725

7,693

 

Essex County NJ Improvement Auth. Rev.

5.250%

12/15/24 (2)

3,820

4,285

 

Essex County NJ Improvement Auth. Rev.

5.500%

10/1/25 (1)

11,630

13,324

 

Essex County NJ Improvement Auth. Rev.

5.500%

10/1/26 (1)

6,500

7,454

 

Essex County NJ Improvement Auth. Rev.

5.500%

10/1/27 (1)

5,895

6,764

 

Essex County NJ Solid Waste Util. Auth.

0.000%

4/1/10 (4)

1,000

923

 

Evesham NJ Util. Auth. Rev.

5.000%

7/1/16 (2)

3,435

3,654

 

Evesham NJ Util. Auth. Rev.

5.000%

7/1/17 (2)

3,705

3,924

 

Evesham NJ Util. Auth. Rev.

5.000%

7/1/18 (2)

1,605

1,683

 

Garden State Preservation Trust New Jersey

5.125%

11/1/19 (4)

7,655

8,542

 

Garden State Preservation Trust New Jersey

0.000%

11/1/21 (4)

11,325

6,054

 

Garden State Preservation Trust New Jersey

0.000%

11/1/22 (4)

41,150

20,848

 

Garden State Preservation Trust New Jersey

0.000%

11/1/23 (4)

15,000

7,212

 

Garden State Preservation Trust New Jersey

5.750%

11/1/28 (4)

13,000

15,563

 

Gloucester County NJ Improvement Auth.

 

 

 

 

 

Lease Rev.

5.000%

7/15/16 (1)

1,000

1,068

 

Gloucester County NJ Improvement Auth.

 

 

 

 

 

Lease Rev.

5.000%

7/15/17 (1)

1,000

1,074

 

Gloucester County NJ Improvement Auth.

 

 

 

 

 

Lease Rev.

5.000%

7/15/20 (1)

1,150

1,213

 

Gloucester County NJ Improvement Auth.

 

 

 

 

 

Lease Rev.

5.000%

7/15/23 (1)

1,000

1,045

 

Gloucester Township NJ GO

5.750%

7/15/10 (2)

2,880

3,029

 

Gloucester Township NJ Muni. Util. Auth. Rev.

5.650%

3/1/18 (2)

2,755

3,062

 

Hillsborough Township NJ School Dist. GO

5.375%

10/1/13 (4)

1,250

1,381

 

Hillsborough Township NJ School Dist. GO

5.375%

10/1/15 (4)

1,720

1,934

 

Hillsborough Township NJ School Dist. GO

5.375%

10/1/17 (4)

720

816

 

Hillsborough Township NJ School Dist. GO

5.375%

10/1/19 (4)

1,720

1,976

1

Hoboken-Union City-Weehawken NJ

 

 

 

 

 

Sewerage Auth. Rev.

6.250%

8/1/13 (1)

9,590

10,960

 

Irvington Township NJ GO

0.000%

8/1/09 (1)(ETM)

2,580

2,438

 

Irvington Township NJ GO

0.000%

8/1/10 (1)(ETM)

2,080

1,898

 

Jackson Township NJ Board of Educ. GO

5.375%

4/15/12 (3)(Prere.)

6,885

7,474

 

Jackson Township NJ Board of Educ. GO

5.375%

4/15/12 (3)(Prere.)

7,676

8,333

 

Jackson Township NJ Board of Educ. GO

5.250%

6/15/21 (1)

11,195

12,597

 

Marlboro Township NJ Board of Educ. GO

5.250%

7/15/09 (4)(Prere.)

2,625

2,707

 

Marlboro Township NJ Board of Educ. GO

5.250%

7/15/09 (4)(Prere.)

2,850

2,939

 

Marlboro Township NJ Board of Educ. GO

5.250%

7/15/09 (4)(Prere.)

2,790

2,877

 

Marlboro Township NJ Board of Educ. GO

5.000%

7/15/14

1,045

1,101

 

Mercer County NJ Improvement Auth.

 

 

 

 

 

Solid Waste Rev.

5.375%

9/15/12

11,120

11,359

 

Mercer County NJ Improvement Auth.

 

 

 

 

 

Special Services School Dist. Rev.

5.750%

12/15/08

1,165

1,194

 

Mercer County NJ Improvement Auth.

 

 

 

 

 

Special Services School Dist. Rev.

5.950%

12/15/12

4,895

5,428

 

Middlesex County NJ COP

5.000%

8/1/11 (1)

1,050

1,109

 

Middlesex County NJ COP

5.500%

8/1/15 (1)

1,195

1,281

 

30

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

Amount

Value•

 

 

Coupon

Date

($000)

($000)

 

Middlesex County NJ Improvement Auth.

5.375%

3/15/22 (3)

1,825

1,947

 

Middlesex County NJ Improvement Auth.

5.375%

3/15/23 (3)

1,925

2,054

 

Middlesex County NJ Improvement Auth. Rev.

 

 

 

 

 

Heldrich Center Hotel/Conference Project

5.000%

1/1/15

500

506

 

Middlesex County NJ Improvement Auth. Rev.

 

 

 

 

 

Heldrich Center Hotel/Conference Project

5.000%

1/1/20

500

490

 

Middlesex County NJ Improvement Auth. Rev.

 

 

 

 

 

Heldrich Center Hotel/Conference Project

5.000%

1/1/32

5,100

4,691

 

Middlesex County NJ Improvement Auth. Rev.

 

 

 

 

 

Heldrich Center Hotel/Conference Project

5.125%

1/1/37

3,500

3,244

 

Middlesex County NJ Improvement Auth. Rev.

 

 

 

 

 

Open Space Trust Fund

5.250%

9/15/19

1,585

1,705

 

Middlesex County NJ Improvement Auth. Rev.

 

 

 

 

 

Open Space Trust Fund

5.250%

9/15/20

1,600

1,720

 

Middlesex County NJ Improvement Auth. Rev.

 

 

 

 

 

Open Space Trust Fund

5.250%

9/15/21

2,375

2,535

 

Middlesex County NJ Improvement Auth. Rev.

 

 

 

 

 

Open Space Trust Fund

5.250%

9/15/22

2,000

2,134

 

Middlesex County NJ Improvement Auth.

 

 

 

 

 

Util. Systems Rev. (Perth Amboy)

0.000%

9/1/15 (2)

2,000

1,470

 

Middlesex County NJ Improvement Auth.

 

 

 

 

 

Util. Systems Rev. (Perth Amboy)

0.000%

9/1/16 (2)

3,000

2,098

 

Middlesex County NJ Improvement Auth.

 

 

 

 

 

Util. Systems Rev. (Perth Amboy)

0.000%

9/1/18 (2)

4,550

2,861

 

Middletown Township NJ Board of Educ. GO

5.000%

8/1/14 (4)

2,735

2,849

 

Middletown Township NJ Board of Educ. GO

5.000%

8/1/15 (4)

2,015

2,098

 

Monmouth County NJ Improvement Auth. Rev.

 

 

 

 

 

(Howell Township Board of Educ.)

5.000%

7/15/19 (2)

2,115

2,221

 

Monmouth County NJ Improvement Auth. Rev.

 

 

 

 

 

(Howell Township Board of Educ.)

5.000%

7/15/20 (2)

2,225

2,336

3

Monmouth County NJ Improvement Auth. Rev.

 

 

 

 

 

(Pooled Govt. Loan)

5.000%

12/1/13 (2)

1,545

1,665

3

Monmouth County NJ Improvement Auth. Rev.

 

 

 

 

 

(Pooled Govt. Loan)

5.000%

12/1/14 (2)

3,205

3,473

3

Monmouth County NJ Improvement Auth. Rev.

 

 

 

 

 

(Pooled Govt. Loan)

5.000%

12/1/16 (2)

1,000

1,091

3

Monmouth County NJ Improvement Auth. Rev.

 

 

 

 

 

(Pooled Govt. Loan)

5.250%

12/1/18 (2)

2,000

2,211

3

Monmouth County NJ Improvement Auth. Rev.

 

 

 

 

 

(Pooled Govt. Loan)

5.250%

12/1/21 (2)

1,275

1,389

 

Montgomery Township NJ School Dist. GO

5.250%

8/1/13 (1)

1,285

1,379

 

Montgomery Township NJ School Dist. GO

5.250%

8/1/17 (1)

1,280

1,372

 

Montgomery Township NJ School Dist. GO

5.250%

8/1/18 (1)

1,280

1,360

 

New Jersey Casino Reinvestment Dev. Auth. Rev.

 

 

 

 

 

(Hotel Room Fee)

5.250%

1/1/20 (2)

2,945

3,226

 

New Jersey Casino Reinvestment Dev. Auth. Rev.

 

 

 

 

 

(Hotel Room Fee)

5.250%

1/1/21 (2)

6,255

6,840

 

New Jersey Casino Reinvestment Dev. Auth. Rev.

 

 

 

 

 

(Hotel Room Fee)

5.250%

1/1/22 (2)

5,585

6,089

 

New Jersey Casino Reinvestment Dev. Auth. Rev.

 

 

 

 

 

(Hotel Room Fee)

5.250%

1/1/23 (2)

3,900

4,242

 

New Jersey Casino Reinvestment Dev. Auth. Rev.

 

 

 

 

 

(Hotel Room Fee)

5.250%

1/1/24 (2)

3,500

3,795

 

New Jersey Casino Reinvestment Dev. Auth. Rev.

 

 

 

 

 

(Parking Fee)

5.250%

6/1/21 (1)

3,000

3,245

 

 

31

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

 

Face

Market

 

 

 

Maturity

Amount

Value•

 

 

Coupon

Date

($000)

($000)

2

New Jersey Econ. Dev. Auth. Lease Rev.

 

 

 

 

 

(Bergen County Administration Complex)

5.500%

11/15/08 (1)(Prere.)

4,375

4,506

2

New Jersey Econ. Dev. Auth. Lease Rev.

 

 

 

 

 

(Bergen County Administration Complex)

5.625%

11/15/08 (1)(Prere.)

4,870

5,021

2

New Jersey Econ. Dev. Auth. Lease Rev.

 

 

 

 

 

(Bergen County Administration Complex)

5.750%

11/15/08 (1)(Prere.)

5,440

5,615

2

New Jersey Econ. Dev. Auth. Lease Rev.

 

 

 

 

 

(Bergen County Administration Complex)

5.750%

11/15/08 (1)(Prere.)

6,080

6,276

 

New Jersey Econ. Dev. Auth.

 

 

 

 

 

Market Transition Fac. Rev.

5.500%

9/1/28 (3)

8,000

9,201

 

New Jersey Econ. Dev. Auth.

 

 

 

 

 

Market Transition Fac. Rev.

5.500%

9/1/29 (3)

7,055

8,123

 

New Jersey Econ. Dev. Auth. Rev. (Cigarette Tax)

5.625%

6/15/17

3,580

3,581

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(Hillcrest Health Service)

0.000%

1/1/12 (2)

2,500

2,153

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(Hillcrest Health Service)

0.000%

1/1/13 (2)

3,000

2,479

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(Motor Vehicle Comm.)

5.250%

7/1/24 (1)

6,000

6,686

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(Motor Vehicle Comm.)

5.250%

7/1/25 (1)

14,000

15,629

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(Motor Vehicle Comm.)

5.250%

7/1/26 (1)

3,000

3,350

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(Motor Vehicle Comm.)

5.250%

7/1/31 (1)

25,175

26,548

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.250%

6/15/11 (2)(Prere.)

7,040

7,505

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.500%

6/15/13 (2)

1,200

1,324

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.000%

9/1/13 (2)(Prere.)

2,145

2,329

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.000%

9/1/13 (Prere.)

3,000

3,257

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.250%

9/1/14 (3)(Prere.)

3,880

4,305

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.500%

9/1/18 (3)

10,285

11,689

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.250%

3/1/24

15,550

16,671

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.250%

3/1/25

8,000

8,556

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.250%

3/1/26

10,000

10,663

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.500%

9/1/27 (3)

14,500

16,673

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.000%

9/1/32 (4)

2,000

2,099

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.000%

9/1/36

7,500

7,774

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

5.000%

9/1/37

18,000

18,674

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

 

 

 

 

 

VRDO

3.450%

12/4/07 LOC

3,000

3,000

 

New Jersey Econ. Dev. Auth. Rev. (School Fac.)

 

 

 

 

 

VRDO

3.520%

12/4/07 LOC

2,200

2,200

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(St. Barnabas Project)

0.000%

7/1/08 (1)(ETM)

2,305

2,260

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(St. Barnabas Project)

0.000%

7/1/11 (1)(ETM)

4,650

4,099

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(St. Barnabas Project)

0.000%

7/1/12 (1)

4,550

3,861

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(St. Barnabas Project)

0.000%

7/1/13 (1)

4,500

3,667

 

New Jersey Econ. Dev. Auth. Rev.

 

 

 

 

 

(St. Barnabas Project)

0.000%

7/1/14 (1)

4,210

3,281

 

New Jersey Econ. Dev. Auth. Rev. (Transp. Project)

5.250%

5/1/09 (4)(Prere.)

4,500

4,623

 

New Jersey Econ. Dev. Auth. Rev. (Transp. Project)

5.875%

5/1/09 (4)(Prere.)

3,465

3,590

 

 

32

 

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

Amount

Value•

 

 

Coupon

Date

($000)

($000)

 

New Jersey Educ. Fac. Auth. Rev.

5.875%

9/1/08 (2)

6,165

6,282

 

New Jersey Educ. Fac. Auth. Rev.

5.000%

9/1/10 (4)(Prere.)

2,715

2,839

 

New Jersey Educ. Fac. Auth. Rev.

5.000%

9/1/10 (Prere.)

6,405

6,698

 

New Jersey Educ. Fac. Auth. Rev.

5.750%

9/1/10 (4)(Prere.)

8,425

8,975

 

New Jersey Educ. Fac. Auth. Rev.

5.750%

9/1/12

7,595

8,333

 

New Jersey Educ. Fac. Auth. Rev. (Drew Univ.)

5.250%

7/1/20 (3)

2,060

2,300

 

New Jersey Educ. Fac. Auth. Rev. (Drew Univ.)

5.250%

7/1/21 (3)

1,550

1,729

 

New Jersey Educ. Fac. Auth. Rev. (Drew Univ.)

5.000%

7/1/37 (1)

6,730

7,043

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Fairleigh Dickinson Univ.)

5.500%

7/1/23

2,750

2,809

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Georgian Court Univ.)

5.000%

7/1/27

1,000

987

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Georgian Court Univ.)

5.000%

7/1/33

1,000

958

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Georgian Court Univ.)

5.250%

7/1/37

1,000

990

 

New Jersey Educ. Fac. Auth. Rev. (Kean Univ.)

5.250%

7/1/13 (3)(Prere.)

2,775

3,042

 

New Jersey Educ. Fac. Auth. Rev. (Kean Univ.)

5.250%

7/1/13 (3)(Prere.)

2,605

2,855

 

New Jersey Educ. Fac. Auth. Rev. (Kean Univ.)

5.000%

7/1/20 (3)

2,585

2,795

 

New Jersey Educ. Fac. Auth. Rev. (Kean Univ.)

5.000%

7/1/21 (3)

3,025

3,256

 

New Jersey Educ. Fac. Auth. Rev. (Kean Univ.)

5.000%

7/1/39 (3)

8,000

8,357

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Montclair State Univ.)

5.000%

7/1/15 (3)(Prere.)

4,700

5,169

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Montclair State Univ.)

5.000%

7/1/27 (2)

11,275

11,836

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(New Jersey Institute of Technology)

5.250%

7/1/17 (1)

1,000

1,062

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(New Jersey Institute of Technology)

5.250%

7/1/18 (1)

1,470

1,547

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(New Jersey Institute of Technology)

5.250%

7/1/20 (1)

1,725

1,816

 

New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.)

5.250%

7/1/16

2,545

2,854

 

New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.)

5.250%

7/1/18

4,785

5,416

 

New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.)

5.250%

7/1/19

7,000

7,944

 

New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.)

5.000%

7/1/30

2,900

3,030

 

New Jersey Educ. Fac. Auth. Rev. (Princeton Univ.)

5.000%

7/1/33

15,000

15,781

 

New Jersey Educ. Fac. Auth. Rev. (Ramapo College)

5.625%

7/1/09 (1)(Prere.)

2,105

2,191

 

New Jersey Educ. Fac. Auth. Rev. (Ramapo College)

5.000%

7/1/12 (3)(Prere.)

1,700

1,825

 

New Jersey Educ. Fac. Auth. Rev. (Ramapo College)

5.000%

7/1/12 (3)(Prere.)

1,010

1,084

 

New Jersey Educ. Fac. Auth. Rev. (Ramapo College)

5.000%

7/1/14 (3)(Prere.)

15,760

17,217

 

New Jersey Educ. Fac. Auth. Rev. (Ramapo College)

5.000%

7/1/15 (3)

1,550

1,649

 

New Jersey Educ. Fac. Auth. Rev. (Ramapo College)

5.000%

7/1/16 (1)(Prere.)

4,000

4,420

 

New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.)

5.250%

7/1/10 (3)(Prere.)

11,210

11,762

 

New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.)

5.250%

7/1/11 (3)(Prere.)

190

204

 

New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.)

5.250%

7/1/11 (3)(Prere.)

205

221

 

New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.)

5.250%

7/1/11 (3)(Prere.)

235

253

 

New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.)

5.125%

7/1/13 (3)(Prere.)

2,800

3,051

 

New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.)

5.250%

7/1/14 (3)

2,070

2,217

 

New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.)

5.250%

7/1/15 (3)

1,690

1,810

 

New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.)

5.250%

7/1/16 (3)

1,845

1,976

 

New Jersey Educ. Fac. Auth. Rev. (Rowan Univ.)

5.000%

7/1/24 (1)

2,200

2,329

 

New Jersey Educ. Fac. Auth. Rev. (Seton Hall Univ.)

5.250%

7/1/10 (2)

1,500

1,560

 

New Jersey Educ. Fac. Auth. Rev. (Seton Hall Univ.)

5.250%

7/1/12 (2)

1,275

1,323

 

New Jersey Educ. Fac. Auth. Rev. (Seton Hall Univ.)

5.250%

7/1/15 (2)

400

425

 

 

33

 

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

Amount

Value•

 

 

Coupon

Date

($000)

($000)

 

New Jersey Educ. Fac. Auth. Rev. (Seton Hall Univ.)

5.250%

7/1/16 (2)

200

212

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Stevens Institute of Technology)

5.125%

7/1/13 (Prere.)

6,000

6,522

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Stevens Institute of Technology)

5.250%

7/1/13 (Prere.)

6,000

6,560

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Stevens Institute of Technology)

5.000%

7/1/27

5,000

4,869

 

New Jersey Educ. Fac. Auth. Rev.

 

 

 

 

 

(Stevens Institute of Technology)

5.000%

7/1/34

2,500

2,350

 

New Jersey Environmental Infrastructure Trust

 

 

 

 

 

Wastewater Treatment Rev.

5.125%

9/1/10 (Prere.)

5,090

5,386

 

New Jersey GO

5.500%

7/15/19 (3)

7,500

8,552

 

New Jersey Health Care Fac. Financing Auth. Rev.

5.000%

7/1/36

14,250

14,289

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Atlantic City Medical Center)

6.000%

7/1/08

2,530

2,564

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Atlantic City Medical Center)

5.750%

7/1/12 (Prere.)

2,220

2,449

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Atlantic City Medical Center)

6.250%

7/1/12 (Prere.)

1,750

1,967

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Atlantic City Medical Center)

6.250%

7/1/17

2,200

2,385

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Atlantic City Medical Center)

5.750%

7/1/25

2,780

2,898

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Atlanticare Regional Medical Center)

5.000%

7/1/23

2,675

2,740

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Atlanticare Regional Medical Center)

5.000%

7/1/26

2,880

2,922

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Atlanticare Regional Medical Center)

5.000%

7/1/37

10,000

9,984

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Capital Health Systems Obligated Group)

5.750%

7/1/23

7,000

7,208

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Children’s Specialized Hospital)

5.000%

7/1/24

800

785

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Children’s Specialized Hospital)

5.500%

7/1/30

3,055

3,083

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Children’s Specialized Hospital)

5.500%

7/1/36

6,800

6,837

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Community Medical Center/Kimball Medical

 

 

 

 

 

Center/Kensington Manor Care Center)

5.250%

7/1/08 (4)(Prere.)

1,360

1,388

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Community Medical Center/Kimball Medical

 

 

 

 

 

Center/Kensington Manor Care Center)

5.250%

7/1/08 (4)(Prere.)

1,395

1,424

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Community Medical Center/Kimball Medical

 

 

 

 

 

Center/Kensington Manor Care Center)

5.250%

7/1/09 (4)

4,140

4,222

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Community Medical Center/Kimball Medical

 

 

 

 

 

Center/Kensington Manor Care Center)

5.000%

7/1/10 (4)

4,695

4,787

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Community Medical Center/Kimball Medical

 

 

 

 

 

Center/Kensington Manor Care Center)

5.250%

7/1/12 (4)

105

107

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Hackensack Univ. Medical Center)

5.375%

1/1/13 (1)

2,355

2,382

 

 

34

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

Amount

Value•

 

 

Coupon

Date

($000)

($000)

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Holy Name Hosp.)

5.250%

7/1/30

4,000

3,958

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Hunterdon Medical Center)

5.250%

7/1/25

1,200

1,235

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Hunterdon Medical Center)

5.125%

7/1/35

3,450

3,465

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Meridian Health System Obligated Group)

5.625%

7/1/13 (4)

7,355

7,673

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Meridian Health System Obligated Group)

5.250%

7/1/29 (4)

13,450

13,832

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Riverside Medical Center)

6.250%

7/1/10 (2)(ETM)

2,935

3,147

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(South Jersey Hosp.)

5.875%

7/1/12 (Prere.)

3,500

3,865

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(South Jersey Hosp.)

6.000%

7/1/12 (Prere.)

3,500

3,883

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(South Jersey Hosp.)

6.000%

7/1/12 (Prere.)

3,000

3,329

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(South Jersey Hosp.)

5.000%

7/1/46

5,000

4,965

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(St. Barnabas Health Care System)

0.000%

7/1/21 (1)

1,740

944

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(St. Barnabas Health Care System)

0.000%

7/1/21 (1)(ETM)

1,260

695

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(St. Barnabas Health Care System)

5.000%

7/1/29

4,375

4,186

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(St. Barnabas Health Care)

5.250%

1/1/09 (1)(Prere.)

305

314

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(St. Barnabas Health Care)

5.250%

1/1/09 (1)(Prere.)

960

989

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(St. Barnabas Health Care)

5.250%

7/1/13 (1)

2,695

2,770

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(St. Barnabas Health Care)

5.250%

7/1/16 (1)

2,340

2,405

 

New Jersey Health Care Fac. Financing Auth. Rev.

 

 

 

 

 

(Virtua Health)

5.250%

7/1/14 (4)

11,000

11,297

 

New Jersey Highway Auth. Rev.

 

 

 

 

 

(Garden State Parkway)

5.600%

1/1/10 (3)(Prere.)

7,535

7,960

 

New Jersey Housing & Mortgage Finance Agency

 

 

 

 

 

Multi-Family Housing Rev.

5.700%

5/1/20 (4)

2,095

2,166

 

New Jersey Housing & Mortgage Finance

 

 

 

 

 

Agency Rev. VRDO

3.330%

12/5/07

11,360

11,360

 

New Jersey Sports & Exposition Auth. Rev.

6.500%

3/1/13 (1)(ETM)

1,595

1,733

 

New Jersey Sports & Exposition Auth. Rev.

6.500%

3/1/13 (1)

1,420

1,544

 

New Jersey Sports & Exposition Auth. Rev.

5.500%

3/1/17 (1)(ETM)

250

286

 

New Jersey Sports & Exposition Auth. Rev.

5.500%

3/1/17 (1)

5,505

6,260

 

New Jersey Sports & Exposition Auth. Rev.

 

 

 

 

 

(Convention Center Luxury Tax)

5.500%

3/1/21 (1)

3,000

3,423

 

New Jersey Sports & Exposition Auth. Rev.

 

 

 

 

 

(Convention Center Luxury Tax)

5.500%

3/1/22 (1)

1,000

1,143

 

New Jersey Sports & Exposition Auth. Rev. VRDO

3.550%

12/5/07 (1)

230

230

2

New Jersey State Transp. Rev. TOB VRDO

3.470%

12/5/07 (4)

2,820

2,820

 

New Jersey Transp. Corp. COP

5.750%

9/15/10 (2)(Prere.)

2,000

2,131

 

New Jersey Transp. Corp. COP

5.500%

9/15/12 (2)

20,000

21,759

 

35

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

Amount

Value•

 

 

Coupon

Date

($000)

($000)

 

New Jersey Transp. Corp. COP

5.500%

9/15/14 (2)

1,500

1,667

 

New Jersey Transp. Corp. COP

5.500%

9/15/15 (2)

15,000

16,797

 

New Jersey Transp. Trust Fund Auth. Rev.

6.000%

6/15/10 (Prere.)

5,000

5,333

 

New Jersey Transp. Trust Fund Auth. Rev.

5.250%

6/15/15 (1)(Prere.)

5,000

5,579

 

New Jersey Transp. Trust Fund Auth. Rev.

5.250%

6/15/15 (1)(ETM)

5,000

5,579

 

New Jersey Transp. Trust Fund Auth. Rev.

5.750%

6/15/20

5,000

5,781

 

New Jersey Transp. Trust Fund Auth. Rev.

5.500%

12/15/21 (1)

25,000

28,708

 

New Jersey Transp. Trust Fund Auth. Rev.

5.750%

6/15/23 (3)

5,850

6,848

 

New Jersey Transp. Trust Fund Auth. Rev.

5.250%

12/15/23 (2)

15,830

17,677

 

New Jersey Transp. Trust Fund Auth. Rev.

5.750%

6/15/24 (3)

5,000

5,865

 

New Jersey Transp. Trust Fund Auth. Rev.

5.750%

6/15/25 (3)

17,750

20,897

 

New Jersey Transp. Trust Fund Auth. Rev.

0.000%

12/15/32 (4)

10,000

3,027

 

New Jersey Transp. Trust Fund Auth. Rev.

5.000%

12/15/32 (2)

22,085

23,189

2

New Jersey Transp. Trust Fund Auth. Rev.

 

 

 

 

 

TOB VRDO

3.610%

12/6/07 (1)

3,945

3,945

 

New Jersey Turnpike Auth. Rev.

5.375%

1/1/10 (1)(Prere.)

3,500

3,649

 

New Jersey Turnpike Auth. Rev.

5.500%

1/1/10 (1)(Prere.)

1,800

1,881

 

New Jersey Turnpike Auth. Rev.

5.750%

1/1/10 (1)(Prere.)

665

698

 

New Jersey Turnpike Auth. Rev.

5.750%

1/1/10 (1)(Prere.)

7,365

7,733

 

New Jersey Turnpike Auth. Rev.

5.750%

1/1/10 (1)(Prere.)

1,620

1,701

 

New Jersey Turnpike Auth. Rev.

6.000%

1/1/13 (1)(ETM)

770

865

 

New Jersey Turnpike Auth. Rev.

6.000%

1/1/13 (1)

230

257

 

New Jersey Turnpike Auth. Rev.

6.500%

1/1/13 (1)(ETM)

20,000

22,933

 

New Jersey Turnpike Auth. Rev.

6.500%

1/1/16 (1)(ETM)

1,560

1,815

 

New Jersey Turnpike Auth. Rev.

6.500%

1/1/16 (1)

4,615

5,318

 

New Jersey Turnpike Auth. Rev.

6.500%

1/1/16 (1)(ETM)

22,095

25,705

 

New Jersey Turnpike Auth. Rev.

5.750%

1/1/17 (1)

2,635

2,761

 

New Jersey Turnpike Auth. Rev.

5.250%

1/1/26 (4)

7,000

7,877

 

New Jersey Turnpike Auth. Rev.

5.250%

1/1/27 (4)

7,000

7,879

 

New Jersey Turnpike Auth. Rev.

5.250%

1/1/29 (4)

19,000

21,400

 

New Jersey Turnpike Auth. Rev.

5.250%

1/1/30 (4)

26,100

29,372

2

New Jersey Turnpike Auth. Rev. TOB VRDO

3.610%

12/6/07 (1)(2)

2,190

2,190

 

Newark NJ GO

5.500%

10/1/08 (2)

1,660

1,690

 

Newark NJ GO

5.375%

12/15/13 (1)

2,000

2,176

 

Ocean County NJ Util. Auth. Wastewater Rev.

5.250%

1/1/17

2,665

2,833

 

Ocean County NJ Util. Auth. Wastewater Rev.

5.250%

1/1/18

2,345

2,481

 

Ocean County NJ Util. Auth. Wastewater Rev.

6.600%

1/1/18 (3)(ETM)

2,500

2,976

 

Ocean County NJ Util. Auth. Wastewater Rev.

5.250%

1/1/25 (1)

4,045

4,543

 

Ocean County NJ Util. Auth. Wastewater Rev.

5.250%

1/1/26 (1)

4,260

4,788

3

Passaic Valley NJ Water Comm. Rev.

5.000%

12/1/27 (4)

2,350

2,483

 

Port Auth. of New York & New Jersey Rev.

5.000%

7/15/25

13,600

14,189

 

Port Auth. of New York & New Jersey Rev.

5.000%

7/15/31

12,830

13,262

 

Port Auth. of New York & New Jersey Rev.

5.000%

7/15/34 (1)

12,095

12,583

 

Rahway Valley NJ Sewerage Auth. Sewer Rev.

0.000%

9/1/31 (1)

4,215

1,353

 

Rahway Valley NJ Sewerage Auth. Sewer Rev.

0.000%

9/1/32 (1)

5,000

1,527

 

Rahway Valley NJ Sewerage Auth. Sewer Rev.

0.000%

9/1/34 (1)

10,220

2,828

 

Rahway Valley NJ Sewerage Auth. Sewer Rev.

0.000%

9/1/35 (1)

10,215

2,687

 

Rutgers State Univ. New Jersey

6.400%

5/1/13

3,000

3,236

 

Rutgers State Univ. New Jersey

5.000%

5/1/31 (3)

2,000

2,074

 

Salem County NJ Financing Auth. PCR

 

 

 

 

 

(Atlantic City Electric Co.) VRDO

3.580%

12/5/07 (1)

7,550

7,550

 

South Jersey Port Corp. New Jersey Rev.

5.000%

1/1/23

2,000

2,057

 

South Jersey Port Corp. New Jersey Rev.

5.100%

1/1/33

1,500

1,527

 

Stafford NJ Muni. Util. Auth. Water & Sewer Rev.

5.500%

6/1/11 (3)

3,100

3,217

 

 

36

 

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

Amount

Value•

 

 

Coupon

Date

($000)

($000)

 

Tobacco Settlement Financing Corp.

 

 

 

 

 

New Jersey Rev.

6.000%

6/1/12 (Prere.)

20,135

22,383

 

Tobacco Settlement Financing Corp.

 

 

 

 

 

New Jersey Rev.

6.125%

6/1/12 (Prere.)

37,475

41,854

 

Tobacco Settlement Financing Corp.

 

 

 

 

 

New Jersey Rev.

6.750%

6/1/13 (Prere.)

2,605

3,040

 

Tobacco Settlement Financing Corp.

 

 

 

 

 

New Jersey Rev.

7.000%

6/1/13 (Prere.)

20,000

23,577

 

Tobacco Settlement Financing Corp.

 

 

 

 

 

New Jersey Rev.

4.500%

6/1/23

15,365

14,076

 

Univ. of Medicine & Dentistry New Jersey COP

5.250%

6/15/18 (1)

1,975

2,122

 

Univ. of Medicine & Dentistry New Jersey COP

5.250%

6/15/20 (1)

2,185

2,336

 

Univ. of Medicine & Dentistry New Jersey COP

5.250%

6/15/22 (1)

2,420

2,575

 

Univ. of Medicine & Dentistry New Jersey Rev.

6.500%

12/1/12 (1)(ETM)

4,000

4,343

 

Univ. of Medicine & Dentistry New Jersey Rev.

5.375%

12/1/15 (2)

2,325

2,528

 

Univ. of Medicine & Dentistry New Jersey Rev.

5.375%

12/1/16 (2)

1,110

1,207

 

Univ. of Medicine & Dentistry New Jersey Rev.

5.500%

12/1/18 (2)

1,250

1,353

 

Univ. of Medicine & Dentistry New Jersey Rev.

5.500%

12/1/19 (2)

3,000

3,247

 

Univ. of Medicine & Dentistry New Jersey Rev.

5.500%

12/1/20 (2)

3,675

3,978

 

Univ. of Medicine & Dentistry New Jersey Rev.

5.500%

12/1/21 (2)

2,000

2,165

 

Univ. of Medicine & Dentistry New Jersey Rev.

5.500%

12/1/23 (2)

7,330

7,862

 

Univ. of Medicine & Dentistry New Jersey Rev.

5.500%

12/1/27 (2)

10,100

10,776

 

Vernon Township NJ School Dist. GO

5.250%

12/1/09 (3)(Prere.)

1,200

1,246

 

Vernon Township NJ School Dist. GO

5.300%

12/1/09 (3)(Prere.)

1,200

1,247

 

Vernon Township NJ School Dist. GO

5.375%

12/1/09 (3)(Prere.)

1,200

1,249

 

Vernon Township NJ School Dist. GO

5.375%

12/1/09 (3)(Prere.)

1,200

1,249

 

Vernon Township NJ School Dist. GO

5.375%

12/1/09 (3)(Prere.)

1,200

1,249

 

Washington Township NJ Board of Educ. GO

5.250%

1/1/23 (4)

1,875

2,104

 

Washington Township NJ Board of Educ. GO

5.250%

1/1/24 (4)

2,070

2,322

 

Washington Township NJ Board of Educ. GO

5.250%

1/1/25 (4)

1,500

1,687

 

Washington Township NJ Board of Educ. GO

5.250%

1/1/26 (4)

1,330

1,497

 

West Orange NJ Board of Educ. COP

5.625%

10/1/09 (1)(Prere.)

2,500

2,628

 

West Orange NJ Board of Educ. COP

5.625%

10/1/09 (1)(Prere.)

2,000

2,102

 

West Orange NJ Board of Educ. COP

6.000%

10/1/09 (1)(Prere.)

1,000

1,058

 

 

 

 

 

 

 

Outside New Jersey:

 

 

 

 

 

Guam Govt. Ltd. Obligation Infrastructure

 

 

 

 

 

Improvement Rev.

5.125%

11/1/11 (2)

3,400

3,473

 

Puerto Rico Electric Power Auth. Rev.

5.250%

7/1/22 (1)

2,000

2,200

 

Puerto Rico GO

5.500%

7/1/18

5,540

5,997

 

Puerto Rico GO

5.500%

7/1/21 (1)

6,750

7,606

 

Puerto Rico Govt. Dev. Bank VRDO

3.410%

12/5/07 (1)

5,700

5,700

 

Puerto Rico Highway & Transp. Auth. Rev.

5.500%

7/1/14 (Prere.)

3,500

3,922

 

Puerto Rico Highway & Transp. Auth. Rev.

5.500%

7/1/14 (Prere.)

4,125

4,622

 

Puerto Rico Highway & Transp. Auth. Rev.

5.500%

7/1/19 (1)

5,000

5,626

 

Puerto Rico Highway & Transp. Auth. Rev.

5.500%

7/1/21 (4)

5,000

5,673

 

Puerto Rico Highway & Transp. Auth. Rev.

5.500%

7/1/22 (4)

3,500

3,976

 

Puerto Rico Highway & Transp. Auth. Rev.

5.500%

7/1/23 (4)

4,000

4,546

 

Puerto Rico Highway & Transp. Auth. Rev. VRDO

3.500%

12/5/07 (2)

3,000

3,000

 

Puerto Rico Infrastructure Financing Auth.

 

 

 

 

 

Special Tax Rev.

5.500%

7/1/24 (2)

13,000

14,507

 

Puerto Rico Infrastructure Financing Auth.

 

 

 

 

 

Special Tax Rev.

0.000%

7/1/29 (2)

19,805

6,711

 

Puerto Rico Infrastructure Financing Auth.

 

 

 

 

 

Special Tax Rev.

0.000%

7/1/33 (3)

20,000

5,514

 

 

37

New Jersey Long-Term Tax-Exempt Fund

 

 

 

 

 

 

Face

Market

 

 

 

Maturity

Amount

Value•

 

 

Coupon

Date

($000)

($000)

 

Puerto Rico Muni. Finance Agency

5.500%

8/1/09 (4)(Prere.)

2,000

2,093

 

Puerto Rico Muni. Finance Agency

5.250%

8/1/19 (4)

5,000

5,336

 

Puerto Rico Public Finance Corp.

5.500%

2/1/12 (Prere.)

3,250

3,518

 

Puerto Rico Public Finance Corp.

5.500%

2/1/12 (Prere.)

1,135

1,231

 

Puerto Rico Public Finance Corp.

6.000%

8/1/26 (ETM)

720

881

 

Puerto Rico Sales Tax Financing Corp. Rev.

0.000%

8/1/54 (2)

9,000

812

 

Puerto Rico Sales Tax Financing Corp. Rev.

0.000%

8/1/56

16,200

1,234

 

Univ. of Puerto Rico Rev.

5.000%

6/1/30

5,000

4,967

 

Virgin Islands Public Finance Auth. Rev.

5.250%

10/1/18

3,390

3,534

 

Virgin Islands Water & Power Auth.

 

 

 

 

 

Electric System Rev.

5.000%

7/1/23

2,205

2,238

 

Virgin Islands Water & Power Auth.

 

 

 

 

 

Electric System Rev.

5.000%

7/1/24

1,915

1,935

 

Virgin Islands Water & Power Auth.

 

 

 

 

 

Electric System Rev.

5.000%

7/1/27

1,200

1,201

 

Total Municipal Bonds (Cost $1,756,323)

 

 

 

1,803,257

 

Other Assets and Liabilities (1.4%)

 

 

 

 

 

Other Assets—Note B

 

 

 

43,760

 

Liabilities

 

 

 

(18,723)

 

 

 

 

 

25,037

 

Net Assets (100%)

 

 

 

1,828,294

 

 

At November 30, 2007, net assets consisted of:4

 

 

Amount

 

($000)

Paid-in Capital

1,784,534

Undistributed Net Investment Income

—

Overdistributed Net Realized Gains

(3,182)

Unrealized Appreciation (Depreciation)

 

Investment Securities

46,934

Futures Contracts

8

Net Assets

1,828,294

 

 

Investor Shares—Net Assets

 

Applicable to 36,403,437 outstanding $.001 par value shares of

 

beneficial interest (unlimited authorization)

426,340

Net Asset Value Per Share—Investor Shares

$11.71

 

 

Admiral Shares—Net Assets

 

Applicable to 119,706,764 outstanding $.001 par value shares of

 

beneficial interest (unlimited authorization)

1,401,954

Net Asset Value Per Share—Admiral Shares

$11.71

 

 

•

See Note A in Notes to Financial Statements.

1 Securities with a value of $2,400,000 have been segregated as initial margin for open futures contracts.

2 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 November 30, 2007, the aggregate value of these securities was $30,373,000,
representing 1.7% of net assets.

3 Security purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of November 30, 2007.

4 See Note D in Notes to Financial Statements for the tax-basis components of net assets.
For a key to abbreviations and other references, see page 39.

 

38

New Jersey 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.

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.

 

39

New Jersey Long-Term Tax-Exempt Fund

 

Statement of Operations

 

 

 

Year Ended

 

November 30, 2007

 

($000)

Investment Income

 

Income

 

Interest

79,370

Total Income

79,370

Expenses

 

The Vanguard Group—Note B

 

Investment Advisory Services

147

Management and Administrative

 

Investor Shares

466

Admiral Shares

662

Marketing and Distribution

 

Investor Shares

113

Admiral Shares

225

Custodian Fees

15

Auditing Fees

22

Shareholders’ Reports

 

Investor Shares

11

Admiral Shares

4

Trustees’ Fees and Expenses

2

Total Expenses

1,667

Expenses Paid Indirectly—Note C

(52)

Net Expenses

1,615

Net Investment Income

77,755

Realized Net Gain (Loss)

 

Investment Securities Sold

677

Futures Contracts

(618)

Realized Net Gain (Loss)

59

Change in Unrealized Appreciation (Depreciation)

 

Investment Securities

(40,525)

Futures Contracts

8

Change in Unrealized Appreciation (Depreciation)

(40,517)

Net Increase (Decrease) in Net Assets Resulting from Operations

37,297

 

 

40

New Jersey Long-Term Tax-Exempt Fund

 

Statement of Changes in Net Assets

 

 

Year Ended November 30,

 

2007

2006

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

77,755

73,421

Realized Net Gain (Loss)

59

5,698

Change in Unrealized Appreciation (Depreciation)

(40,517)

34,181

Net Increase (Decrease) in Net Assets Resulting from Operations

37,297

113,300

Distributions

 

 

Net Investment Income

 

 

Investor Shares

(18,724)

(19,066)

Admiral Shares

(59,031)

(54,355)

Realized Capital Gain1

 

 

Investor Shares

(1,577)

(2,652)

Admiral Shares

(4,690)

(7,127)

Total Distributions

(84,022)

(83,200)

Capital Share Transactions—Note F

 

 

Investor Shares

6,395

(10,123)

Admiral Shares

151,103

83,230

Net Increase (Decrease) from Capital Share Transactions

157,498

73,107

Total Increase (Decrease)

110,773

103,207

Net Assets

 

 

Beginning of Period

1,717,521

1,614,314

End of Period

1,828,294

1,717,521

 

 

1 Includes fiscal 2007 and 2006 short-term gain distributions totaling $3,090,000 and $933,000, respectively. Short-term gain distributions
are treated as ordinary income dividends for tax purposes.

 

41

New Jersey Long-Term Tax-Exempt Fund

 

Financial Highlights

 

 

Investor Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended November 30,

Throughout Each Period

2007

2006

2005

2004

2003

Net Asset Value, Beginning of Period

$12.03

$11.82

$12.04

$12.27

$12.06

Investment Operations

 

 

 

 

 

Net Investment Income

.511

.520

.526

.548

.549

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(.276)

.282

(.134)

(.149)

.257

Total from Investment Operations

.235

.802

.392

.399

.806

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.511)

(.520)

(.526)

(.548)

(.549)

Distributions from Realized Capital Gains

(.044)

(.072)

(.086)

(.081)

(.047)

Total Distributions

(.555)

(.592)

(.612)

(.629)

(.596)

Net Asset Value, End of Period

$11.71

$12.03

$11.82

$12.04

$12.27

 

 

 

 

 

 

Total Return1

2.04%

7.01%

3.29%

3.33%

6.81%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$426

$432

$434

$896

$920

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.15%

0.16%

0.16%

0.14%

0.17%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

4.35%

4.42%

4.38%

4.51%

4.49%

Portfolio Turnover Rate

14%

15%

19%

16%

14%

 

 

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

 

42

New Jersey Long-Term Tax-Exempt Fund

 

 

Admiral Shares

 

 

 

 

 

 

 

 

 

 

 

For a Share Outstanding

Year Ended November 30,

Throughout Each Period

2007

2006

2005

2004

2003

Net Asset Value, Beginning of Period

$12.03

$11.82

$12.04

$12.27

$12.06

Investment Operations

 

 

 

 

 

Net Investment Income

.519

.529

.535

.554

.557

Net Realized and Unrealized Gain (Loss)

 

 

 

 

 

on Investments

(.276)

.282

(.134)

(.149)

.257

Total from Investment Operations

.243

.811

.401

.405

.814

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.519)

(.529)

(.535)

(.554)

(.557)

Distributions from Realized Capital Gains

(.044)

(.072)

(.086)

(.081)

(.047)

Total Distributions

(.563)

(.601)

(.621)

(.635)

(.604)

Net Asset Value, End of Period

$11.71

$12.03

$11.82

$12.04

$12.27

 

 

 

 

 

 

Total Return

2.11%

7.09%

3.36%

3.39%

6.87%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$1,402

$1,286

$1,180

$625

$604

Ratio of Total Expenses to

 

 

 

 

 

Average Net Assets

0.08%

0.09%

0.09%

0.09%

0.11%

Ratio of Net Investment Income to

 

 

 

 

 

Average Net Assets

4.42%

4.49%

4.45%

4.57%

4.55%

Portfolio Turnover Rate

14%

15%

19%

16%

14%

 

 

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

 

43

New Jersey Long-Term Tax-Exempt Fund

 

Notes to Financial Statements

 

Vanguard New Jersey 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 state of New Jersey. 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 materially 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. Accordingly, no provision for federal income taxes is required in the financial statements.

 

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

 

5. Other: 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.

 

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.

 

44

New Jersey Long-Term Tax-Exempt Fund

 

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 November 30, 2007, the fund had contributed capital of $150,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.15% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.

C. The fund’s investment advisor may direct new issue purchases, subject to obtaining the best price and execution, to underwriters who have agreed to rebate or credit to the fund part of the underwriting fees generated. Such rebates or credits are used solely to reduce the fund’s management and administrative expenses. The fund’s custodian bank has also agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the year ended November 30, 2007, these arrangements reduced the fund’s management and administrative expenses by $45,000 and custodian fees by $7,000.

D. Capital gain distributions are determined on a tax basis and may differ from realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when gains or losses are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future.

For tax purposes, at November 30, 2007, the fund had available realized losses of $437,000 to offset future net capital gains through November 30, 2015.

The fund had realized losses totaling $2,737,000 through November 30, 2007, which are deferred for tax purposes and reduce the amount of unrealized appreciation on investment securities for tax purposes.

At November 30, 2007, the cost of investment securities for tax purposes was $1,759,060,000. Net unrealized appreciation of investment securities for tax purposes was $44,197,000, consisting of unrealized gains of $53,035,000 on securities that had risen in value since their purchase and $8,838,000 in unrealized losses on securities that had fallen in value since their purchase.

At November 30, 2007, the aggregate settlement value of open futures contracts expiring in March 2008 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

(141)

16,523

8

 

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

E. During the year ended November 30, 2007, the fund purchased $448,124,000 of investment securities and sold $227,206,000 of investment securities, other than temporary cash investments.

 

45

New Jersey Long-Term Tax-Exempt Fund

 

F. Capital share transactions for each class of shares were:

 

 

Year Ended November 30,

 

2007

2006

 

Amount

Shares

Amount

Shares

 

($000)

(000)

($000)

(000)

Investor Shares

 

 

 

 

Issued

125,463

10,686

100,786

8,553

Issued in Lieu of Cash Distributions

16,691

1,422

17,773

1,507

Redeemed

(135,759)

(11,592)

(128,682)

(10,921)

Net Increase (Decrease)—Investor Shares

6,395

516

(10,123)

(861)

Admiral Shares

 

 

 

 

Issued

300,030

25,599

231,340

19,634

Issued in Lieu of Cash Distributions

48,555

4,137

46,760

3,966

Redeemed

(197,482)

(16,894)

(194,870)

(16,575)

Net Increase (Decrease)—Admiral Shares

151,103

12,842

83,230

7,025

 

G. In June 2006, the Financial Accounting Standards Board issued Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes.” FIN 48 establishes the minimum threshold for recognizing, and a system for measuring, the benefits of tax-return positions in financial statements, and is effective for the fund’s fiscal year beginning December 1, 2007. Management has analyzed the fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended November 30, 2004–2007) for purposes of implementing FIN 48, and has concluded that as of November 30, 2007, no provision for income tax would be required in the fund’s financial statements.

 

46

Report of Independent Registered

Public Accounting Firm

 

To the Trustees of Vanguard New Jersey Tax-Exempt Funds and Shareholders of Vanguard New Jersey Tax-Exempt Money Market Fund and Vanguard New Jersey Long-Term Tax-Exempt Fund:

 

In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard New Jersey Tax-Exempt Money Market Fund and Vanguard New Jersey Long-Term Tax-Exempt Fund (constituting Vanguard New Jersey Tax-Exempt Funds, hereafter referred to as the “Funds”) at November 30, 2007, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2007 by correspondence with the custodian and broker, provide a reasonable basis for our opinion.

 

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

January 11, 2008

 

 

 

Special 2007 tax information (unaudited) for Vanguard New Jersey Tax-Exempt Funds

This information for the fiscal year ending November 30, 2007, is included pursuant to provisions of the Internal Revenue Code.

The Long-Term Tax-Exempt Fund distributed $3,176,000 as capital gain dividends (from net long-term gains) to shareholders during the fiscal year.

Each fund designates 100% of its income dividends as exempt-interest dividends.

 

47

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 table below 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.

 

Six Months Ended November 30, 2007

 

 

 

 

Beginning

Ending

Expenses

 

Account Value

Account Value

Paid During

New Jersey Tax-Exempt Fund

5/31/2007

11/30/2007

Period1

Based on Actual Fund Return

 

 

 

Money Market

$1,000.00

$1,017.85

$0.51

Long-Term

 

 

 

Investor Shares

1,000.00

1,022.98

0.76

Admiral Shares

1,000.00

1,023.34

0.41

Based on Hypothetical 5% Yearly Return

 

 

 

Money Market

$1,000.00

$1,024.57

$0.51

Long-Term

 

 

 

Investor Shares

1,000.00

1,024.32

0.76

Admiral Shares

1,000.00

1,024.67

0.41

 

1 The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios
for that period are: for the New Jersey Tax-Exempt Money Market Fund, 0.10%; for the New Jersey Long-Term Tax-Exempt Fund, 0.15%
for Investor Shares and 0.08% for Admiral Shares. 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.

 

48

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

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%. A fund’s beta should be reviewed in conjunction with its R-squared (see definition below). The lower the R-squared, the less correlation there is between the fund and the index, and the less reliable beta is as an indicator of volatility.

Expense Ratio. The percentage of a fund’s average net assets used to pay its annual administrative and advisory expenses. These expenses directly reduce returns to investors.

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.

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

Yield. A snapshot of a fund’s interest income. The yield, expressed as a percentage of the fund’s net asset value, is based on income earned over the past 30 days (7 days for money market funds) and is annualized, or projected forward for the coming year.

Yield to Maturity. The rate of return an investor would receive if the fixed income securities held by a fund were held to their maturity dates.

 

50

 

 

 

 

 

 

 

 

 

 

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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.

Our independent board members bring distinguished backgrounds in business, academia, and public service to their task of working with Vanguard officers to establish the policies and oversee the activities of the funds. Among board members’ responsibilities are selecting investment advisors for the funds; monitoring fund operations, performance, and costs; reviewing contracts; nominating and selecting new trustees/directors; and electing Vanguard officers.

Each trustee serves a fund until its termination; or until the trustee’s retirement, resignation, or death; or otherwise as specified in the fund’s organizational documents. Any trustee may be removed at a shareholders’ meeting by a vote representing two-thirds of the net asset value of all shares of the fund together with shares of other Vanguard funds organized within the same trust. The table on these two pages shows information for each trustee and executive officer of the fund. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482.

 

 

Chairman of the Board, Chief Executive Officer, and Trustee

 

 

 

 

John J. Brennan1

 

Born 1954

Principal Occupation(s) During the Past Five Years:

Trustee since May 1987;

Chairman of the Board, Chief Executive Officer, and

Chairman of the Board and

Director/Trustee of The Vanguard Group, Inc., and of

Chief Executive Officer

each of the investment companies served by

148 Vanguard Funds Overseen

The Vanguard Group.

 

 

Independent Trustees

 

 

 

Charles D. Ellis

 

Born 1937

Principal Occupation(s) During the Past Five Years:

Trustee since January 2001

Applecore Partners (pro bono ventures in education);

148 Vanguard Funds Overseen

Senior Advisor to Greenwich Associates (international

 

business strategy consulting); Successor Trustee of

 

Yale University; Overseer of the Stern School of

 

Business at New York University; Trustee of the

 

Whitehead Institute for Biomedical Research.

 

 

Rajiv L. Gupta

 

Born 1945

Principal Occupation(s) During the Past Five Years:

Trustee since December 20012

Chairman, President, and Chief Executive Officer of

148 Vanguard Funds Overseen

Rohm and Haas Co. (chemicals); Board Member of the

 

American Chemistry Council; Director of Tyco

 

International, Ltd. (diversified manufacturing and

 

services) since 2005; Trustee of Drexel University and of

 

the Chemical Heritage Foundation.

 

 

 

 

Amy Gutmann

 

Born 1949

Principal Occupation(s) During the Past Five Years:

Trustee since June 2006

President of the University of Pennsylvania since 2004;

148 Vanguard Funds Overseen

Professor in the School of Arts and Sciences,

 

Annenberg School for Communication, and Graduate

 

School of Education of the University of Pennsylvania

 

since 2004; Provost (2001–2004) and Laurance S.

 

Rockefeller Professor of Politics and the University

 

Center for Human Values (1990–2004), Princeton

 

University; Director of Carnegie Corporation of New York

 

since 2005 and of Schuylkill River Development

 

Corporation and Greater Philadelphia Chamber of

 

Commerce since 2004.

 

JoAnn Heffernan Heisen

 

Born 1950

Principal Occupation(s) During the Past Five Years:

Trustee since July 1998

Corporate Vice President and Chief Global Diversity

148 Vanguard Funds Overseen

Officer since 2006, Vice President and Chief Information

 

Officer (1997–2005), and Member of the Executive

 

Committee of Johnson & Johnson (pharmaceuticals/

 

consumer products); Director of the University Medical

 

Center at Princeton and Women’s Research and

 

Education Institute.

 

 

André F. Perold

 

Born 1952

Principal Occupation(s) During the Past Five Years:

Trustee since December 2004

George Gund Professor of Finance

148 Vanguard Funds Overseen

and Banking, Harvard Business School; Senior Associate

 

Dean, Director of Faculty Recruiting, and Chair of

 

Finance Faculty, Harvard Business School; Director and

 

Chairman of UNX, Inc. (equities trading firm) since 2003;

 

Chair of the Investment Committee of HighVista

 

Strategies LLC (private investment firm) since 2005.

 

 

Alfred M. Rankin, Jr.

 

Born 1941

Principal Occupation(s) During the Past Five Years:

Trustee since January 1993

Chairman, President, Chief Executive Officer, and

148 Vanguard Funds Overseen

Director of NACCO Industries, Inc. (forklift

 

trucks/housewares/lignite); Director of Goodrich

 

Corporation (industrial products/aircraft systems and

 

services).

 

 

J. Lawrence Wilson

 

Born 1936

Principal Occupation(s) During the Past Five Years:

Trustee since April 1985

Retired Chairman and Chief Executive

148 Vanguard Funds Overseen

Officer of Rohm and Haas Co. (chemicals); Director of

 

Cummins Inc. (diesel engines) and

 

AmerisourceBergen Corp. (pharmaceutical distribution);

 

Trustee of Vanderbilt University

 

and of Culver Educational Foundation.

 

 

Executive Officers1

 

 

 

Thomas J. Higgins

 

Born 1957

Principal Occupation(s) During the Past Five Years:

Treasurer since July 1998

Principal of The Vanguard Group, Inc.;

148 Vanguard Funds Overseen

Treasurer of each of the investment companies served

 

by The Vanguard Group.

 

 

Heidi Stam

 

Born 1956

Principal Occupation(s) During the Past Five Years:

Secretary since July 2005

Managing Director of The Vanguard Group, Inc.,

148 Vanguard Funds Overseen

since 2006; General Counsel of The Vanguard Group

 

since 2005; Secretary of The Vanguard Group, and of

 

each of the investment companies served by

 

The Vanguard Group, since 2005; Principal of

 

The Vanguard Group (1997–2006).

 

 

Vanguard Senior Management Team

 

 

 

 

 

 

R. Gregory Barton

Kathleen C. Gubanich

F. William McNabb, III

Ralph K. Packard

Mortimer J. Buckley

Paul A. Heller

Michael S. Miller

George U. Sauter

 

 

 

 

 

 

 

 

Founder

 

 

 

 

 

 

 

John C. Bogle

 

 

 

Chairman and Chief Executive Officer, 1974-1996

 

 

 

 

1 Officers of the funds 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.

More information about the trustees is in the Statement of Additional Information, available from The Vanguard Group.

 

 


P.O. Box 2600

Valley Forge, PA 19482-2600

 

Connect with Vanguard® > www.vanguard.com

 

Fund Information > 800-662-7447

Vanguard, Connect with Vanguard, and the

 

ship logo are trademarks of

 

The Vanguard Group, Inc.

 

 

Direct Investor Account Services > 800-662-2739

All other marks are the exclusive property of

 

their respective owners.

Institutional Investor Services > 800-523-1036

 

 

All comparative mutual fund data are from

Text Telephone for People

Lipper Inc. or Morningstar, Inc., unless

 

otherwise noted.

With Hearing Impairment > 800-952-3335

 

 

 

This material may be used in conjunction

You can obtain a free copy of Vanguard’s

with the offering of shares of any Vanguard

proxy voting guidelines by visiting our

fund only if preceded or accompanied by

website, www.vanguard.com,

the fund’s current prospectus.

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 Public Reference Section,

 

Securities and Exchange Commission,

 

Washington, DC 20549-0102.

 

 

 

©2008 The Vanguard Group, Inc.

 

All rights reserved.

 

Vanguard Marketing Corporation, Distributor.

 

Q1400 12008

Item 2: Code of Ethics. The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.

 

Item 3: Audit Committee Financial Expert. The following members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts serving on its Audit Committee, and to be independent: Charles D. Ellis, Rajiv L. Gupta, JoAnn Heffernan Heisen, André F. Perold, Alfred M. Rankin, Jr., and J. Lawrence Wilson.

 

Item 4: Principal Accountant Fees and Services.

(a)  Audit Fees.

Audit Fees of the Registrant

Fiscal Year Ended November 30, 2007: $39,000

Fiscal Year Ended November 30, 2006: $41,000

Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.

Fiscal Year Ended November 30, 2007: $2,835,320

Fiscal Year Ended November 30, 2006: $2,347,620

(b)   Audit-Related Fees.

Fiscal Year Ended November 30, 2007: $630,400

Fiscal Year Ended November 30, 2006: $530,000

Includes fees billed in connection with assurance and related services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.

(c)   Tax Fees.

Fiscal Year Ended November 30, 2007: $215,900

Fiscal Year Ended November 30, 2006: $101,300

Includes fees billed in connection with tax compliance, planning and advice services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group and related to income and excise taxes.

(d)   All Other Fees.

Fiscal Year Ended November 30, 2007: $0

Fiscal Year Ended November 30, 2006: $0

Includes fees billed for services related to risk management and privacy matters. Services were provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.

(e)   (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: (1) the Registrant; (2) The Vanguard Group, Inc.; (3) other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant; and (4) other

 

registered investment companies in the Vanguard Group. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.

In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.

The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: (1) the Registrant; (2) The Vanguard Group, Inc.; (3) other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant; or (4) other registered investment companies in the Vanguard Group.

(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)   For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.

(g)  Aggregate Non-Audit Fees.

Fiscal Year Ended November 30, 2007: $215,900

Fiscal Year Ended November 30, 2006: $101,300

Includes fees billed for non-audit services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.

(h)   For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.

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 NEW JERSEY TAX-FREE FUNDS

BY:

(signature)

 

(HEIDI STAM)

 

JOHN J. BRENNAN*

 

CHIEF EXECUTIVE OFFICER

 

Date: January 17, 2008

 

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

 

VANGUARD NEW JERSEY TAX-FREE FUNDS

BY:

(signature)

 

(HEIDI STAM)

 

JOHN J. BRENNAN*

 

CHIEF EXECUTIVE OFFICER

 

Date: January 17, 2008

 

VANGUARD NEW JERSEY TAX-FREE FUNDS

BY:

(signature)

 

(HEIDI STAM)

 

THOMAS J. HIGGINS*

 

TREASURER

 

Date: January 17, 2008

 

*By Power of Attorney. Filed on January 18, 2008, see File Number 2-29601. Incorporated by Reference.