N-CSR 1 njtaxexempt_final.htm VANGUARD NEW JERSEY TAX-FREE FUNDS njtaxexempt_final.htm - Generated by SEC Publisher for SEC Filing

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, 2009 – November 30, 2010

Item 1: Reports to Shareholders

 

 

Vanguard New Jersey Tax-Exempt 
Funds Annual Report 
November 30, 2010 
 
 
Vanguard New Jersey Tax-Exempt Money Market Fund 
Vanguard New Jersey Long-Term Tax-Exempt Fund 

 


 

> After generating exceptional results a year ago, tax-exempt municipal bonds generally posted low- to mid-single-digit returns for the 2010 fiscal year. Money market fund returns continued to hover near zero.

> Vanguard New Jersey Tax-Exempt Money Market Fund returned 0.11%, a record annual low.

> Vanguard New Jersey Long-Term Tax-Exempt Fund Investor Shares returned 3.59%, trailing the fund’s benchmark and the average return of peer funds.

Contents   
Your Fund’s Total Returns.  1 
Chairman’s Letter.  2 
Advisor’s Report.  8 
New Jersey Tax-Exempt Money Market Fund.  11 
New Jersey Long-Term Tax-Exempt Fund.  26 
About Your Fund’s Expenses.  54 
Glossary.  56 

 

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

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

Cover photograph: Jean Maher.

 

Your Fund’s Total Returns           
 
 
 
 
Fiscal Year Ended November 30, 2010           
    Taxable-       
  SEC  Equivalent  Income  Capital  Total 
  Yields  Yields  Returns  Returns  Returns 
Vanguard New Jersey Tax-Exempt Money           
Market Fund  0.13%  0.22%  0.11%  0.00%  0.11% 
New Jersey Tax-Exempt Money Market Funds           
Average          0.01 

 

New Jersey Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper Inc.

Vanguard New Jersey Long-Term Tax-Exempt Fund           
Investor Shares  3.22%  5.55%  4.11%  -0.52%  3.59% 
Admiral™ Shares  3.30  5.69  4.20  -0.52  3.68 
Barclays Capital 10 Year Municipal Bond Index          5.51 
New Jersey Municipal Debt Funds Average          4.58 

 

New Jersey Municipal Debt Funds Average: Derived from data provided by Lipper Inc.

7-day SEC yield for the New Jersey Tax-Exempt Money Market Fund; 30-day SEC yield for the New Jersey Long-Term Tax-Exempt Fund.

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

Admiral Shares carry lower expenses and are available to investors who meet certain account-balance requirements.

Your Fund’s Performance at a Glance
November 30, 2009 , Through November 30, 2010

      Distributions Per Share 
  Starting  Ending  Income  Capital 
  Share Price  Share Price  Dividends  Gains 
Vanguard New Jersey Tax-Exempt Money         
Market Fund  $1.00  $1.00  $0.001  $0.000 
Vanguard New Jersey Long-Term Tax-Exempt         
Fund         
Investor Shares  $11.64  $11.58  $0.476  $0.000 
Admiral Shares  11.64  11.58  0.485  0.000 

 

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Chairman’s Letter

Dear Shareholder,

Traditionally, municipal bonds have often been seen as the investing equivalent of your grandfather’s sedan—staid but generally safe and reliable. After staging an impressive recovery a year ago, munis were indeed fairly steady in the 2010 fiscal year—until a late-summer rally, followed by a sharp reversal that was precipitated by an unusual convergence of factors. November was the most volatile month in the municipals market since the financial crisis erupted in the fall of 2008.

Reflecting this, Vanguard New Jersey Long-Term Tax-Exempt Fund declined about 2% in the closing month of the 2010 fiscal year. The fund returned solid results for the 12 months as a whole, however, because of income from its bond holdings: Investor Shares of the Long-Term Fund returned 3.59%. On November 30, the 30-day SEC yield for the fund’s Investor Shares was 3.22%, down from a year earlier.

With short-term interest rates anchored near zero for almost two years by Federal Reserve policy, Vanguard New Jersey Tax-Exempt Money Market Fund returned 0.11%, its lowest fiscal-year return ever. The fund’s ending yield of 0.13% was unchanged from a year ago.

On a taxable-equivalent basis, each fund’s yield was higher, as shown on page 1. Note: The funds are permitted to invest in securities whose income is subject to

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the alternative minimum tax (AMT). As of November 30, the Long-Term Fund did not own securities that would generate income distributions subject to the AMT, but the Money Market Fund did.

Also note that as part of our ongoing efforts to lower the cost of investing for all of our clients, we have broadened the availability of our lower-cost Admiral Shares, reducing the Admiral minimums for most of our actively managed funds from $100,000 to $50,000.

Bonds produced good returns amid fiscal and monetary drama
Although global stock markets produced superior returns, bond markets provided the more dramatic setting in the past year.

The yield of the 10-year U.S. Treasury note declined sharply as a variety of forces—including Europe’s sovereign debt crisis and anticipation that the Federal Reserve would begin a new round of Treasury buying—drove investors into low-yielding government bonds.

The municipal bond market contended with somewhat sensational headlines about the strains on state and local budgets, and also with changes in the composition of the bond supply resulting largely from the fast-growing issuance of Build America Bonds (BABs). The broad U.S. bond market returned about 6% for the full year, while the tax-exempt municipal market returned almost 5%.

Market Barometer       
    Average Annual Total Returns 
    Periods Ended November 30, 2010 
  One  Three  Five 
  Year  Years  Years 
Bonds       
Barclays Capital U.S. Aggregate Bond Index (Broad       
taxable market)  6.02%  6.39%  6.23% 
Barclays Capital Municipal Bond Index (Broad tax-exempt       
market)  4.76  4.86  4.67 
Citigroup Three-Month U.S. Treasury Bill Index  0.12  0.79  2.36 
 
Stocks       
Russell 1000 Index (Large-caps)  11.48%  -4.66%  1.30% 
Russell 2000 Index (Small-caps)  26.98  -0.37  2.79 
Dow Jones U.S. Total Stock Market Index  13.39  -3.88  1.84 
MSCI All Country World Index ex USA (International)  5.69  -7.41  4.69 
 
CPI       
Consumer Price Index  1.14%  1.35%  2.06% 

 

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As bond prices rise and yields decline, the opportunity for continued strength in the bond market diminishes. Near the end of the period, prices retreated in both the taxable and tax-exempt markets.

Periods of strength and weakness added up to solid stock returns
Stock prices followed a tortuous path to solid 12-month gains. Strength at the start of the year was followed by a summer of weakness and then an autumn revival. The broad U.S. stock market returned more than 13% for the period. Non-U.S. markets had a more modest return approaching 6%, restrained by the fiscal and political dramas in Europe and the dollar’s gains relative to the euro.

A volatile second half crimped full-year returns
It was an uneventful year for money market funds. Their rock-bottom interest rates kept investors generally focused on the higher yields available on longer-term securities. With the help of its low expense ratio, the New Jersey Tax-Exempt Money Market Fund stayed a step ahead of its peer group’s average return.

In contrast, after a relatively stable first half, the municipal bond market encountered some turbulence. Municipal bond prices rallied in July and even more in August—driving yields lower—thanks in part to relatively light new tax-exempt supply, the possibility of higher federal income

Expense Ratios
Your Fund Compared With Its Peer Group

  Investor  Admiral  Peer Group 
  Shares  Shares  Average 
New Jersey Tax-Exempt Money       
Market Fund  0.17%  —  0.60% 
New Jersey Long-Term Tax-Exempt       
Fund  0.20  0.12%  1.05 

 

The fund expense ratios shown are from the prospectus dated April 22, 2010, and represent estimated costs for the current fiscal year. For the fiscal year ended November 30, 2010, the funds’ expense ratios were: for the New Jersey Tax-Exempt Money Market Fund, 0.17%; and for the New Jersey Long-Term Tax-Exempt Fund, 0.20% for Investor Shares and 0.12% for Admiral Shares. Peer-group expense ratios are derived from data provided by Lipper Inc. and capture information through year-end 2009.

Peer groups: For the New Jersey Tax-Exempt Money Market Fund, New Jersey Tax-Exempt Money Market Funds; for the New Jersey Long-Term Tax-Exempt Fund, New Jersey Municipal Debt Funds.

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tax rates after 2010, and slow economic growth, which kept a lid on interest rates. In late August, yields fell to three-decade lows across many maturities in the broad municipal market.

November saw a dramatic turnabout, driven in part by the potential implications of election results and the Fed’s second round of Treasury bond purchases, which were aimed at stimulating the economy. Other factors included the prospect of an abundant supply of tax-exempt issues and some (briefly) encouraging jobs reports pointing to a stronger economy and possibly higher interest rates. As Treasury yields rose, tax-exempt bond yields also climbed and prices fell. In November, the tax-exempt yields of several maturities of AAA-rated general-obligation bonds rose above those of comparable-term taxable Treasuries—an atypical relationship—for the first time since spring 2009.

In this environment, the Long-Term Tax-Exempt Fund’s Investor Shares returned 3.59%, behind its peer-group average return of 4.58%. In general, peer funds benefited from an emphasis on lower-quality securities. The primary driver of the fund’s return was its portfolio income: Capital return—the change in net asset value over the period—was modestly negative.

Fiscal strains posed challenges; BABs helped ease the pain
The muni market’s ups and downs took place against a backdrop of fiscal challenges. Even as revenue collections in New Jersey and other states began

Total Returns
Ten Years Ended November 30, 2010

  Average 
  Annual Return 
New Jersey Tax-Exempt Money Market Fund  1.78% 
New Jersey Tax-Exempt Money Market Funds Average  1.39 
New Jersey Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper Inc.   
New Jersey Long-Term Tax-Exempt Fund Investor Shares  4.90% 
Barclays Capital 10 Year Municipal Bond Index  5.57 
New Jersey Municipal Debt Funds Average  4.29 
New Jersey Municipal Debt Funds Average: Derived from data provided by Lipper Inc.   

 

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 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.

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to improve after the worst financial setbacks since the Great Depression, the budget gaps faced by many states and local governments remained sobering.

As you know, your state’s unemployment rate remains above 9% as the national recovery from recession proceeds uncomfortably slowly. Moreover, your budgetary process has been undergoing some major changes, including severe state-level spending cuts. Along with other states and municipalities, New Jersey must also grapple with how to close the gap between the costs of promised post-employment benefits, such as pensions and health care, for public-sector workers and the revenue available to fund those benefits.

The fiscal crunch has been tempered somewhat by generous federal interest rate subsidies available through the BABs program, which has its roots in the difficulties faced by state and local borrowers in issuing bonds during the nation’s financial crisis. (Your funds do not hold these bonds because they are taxable.)

More than $165 billion of BABs have been issued nationwide since the program was introduced in early 2009 as part of the massive federal stimulus package, and New Jersey was among the largest issuers of them. BABs have affected your portfolio because they have diminished the availability of new tax-exempt bonds: In calendar year 2010 through November, tax-exempt supply fell to its lowest level in about a decade. This shortage, especially in bonds of longer maturities, led investors to bid up tax-exempt prices—at least, until November. [Congress allowed the BABs program to expire as scheduled on December 31. With borrowers rushing to beat the deadline, taxable municipal bond issuance nationwide during December appeared on target to exceed tax-exempt issuance for the first month ever.]

For more information on the funds’ positioning and performance during the past year, please see the Advisor’s Report following this letter.

Conservative approach has proven its worth
Over the years, the funds’ advisor, Vanguard Fixed Income Group, has focused on high-quality tax-exempt securities. This approach—executed with disciplined portfolio management and at low costs—has rewarded shareholders. For the ten years ended November 30, 2010, the average annual returns of the New Jersey Tax-Exempt Funds exceeded the average returns of their respective peers by margins considered significant in the world of fixed income investing.

Shareholders have also benefited from the advisor’s stringent and independent credit analysis, a Vanguard hallmark. As fiscal fortunes have diverged, it has become increasingly difficult for individual

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investors to evaluate the creditworthiness of a wide range of municipal borrowers. Because there are no remaining AAA-rated insurance companies, investors can’t look to guarantees to provide assurance. In addition, a nationwide “recalibration” of municipal bond ratings by two major credit-rating agencies has blurred some of the distinctions among issuers. These factors underscore the importance of the objective insights of Vanguard’s experienced team of credit analysts, who work closely with our portfolio managers and traders.

Diversification and credit analysis aren’t likely to go out of style
Because twists and turns in the bond markets are often as unpredictable as those in the stock markets, we encourage you to diversify your bond holdings, consistent with the investment objectives and principles you consider in managing all your assets. And always keep in mind the importance of skilled credit analysis. The Vanguard Tax-Exempt Funds can help—by offering you low-cost portfolios of New Jersey securities that meet the high standards of our credit analysts.

Many investors are concerned about what may happen to their bond portfolios if interest rates rise. Conventional wisdom might suggest reallocating some of those assets into shorter-maturity bond funds, which are often thought to be less sensitive to changes in interest rates. Recent Vanguard research, however, underscores the benefits of maintaining a broadly diversified fixed income portfolio regardless of the future direction of interest rates. In fact, our research suggests that greater uncertainty about the outlook for economic growth, the deficit, inflation, and interest rates supports more fixed income diversification, not less.

Thank you for entrusting your assets to Vanguard.

Sincerely,

F. William McNabb III
Chairman and Chief Executive Officer
December 17, 2010

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Advisor’s Report

For the fiscal year ended November 30, 2010, Vanguard New Jersey Tax-Exempt Money Market Fund returned 0.11%, ahead of the 0.01% average return of its peer group. The New Jersey Long-Term Tax-Exempt Fund returned 3.59% for Investor Shares and 3.68% for Admiral Shares, trailing the average return of competing New Jersey funds and the result for its diversified national benchmark index.

The investment environment
A look at tax-exempt yields for the fiscal year as a whole—shown in the table that follows this report—does not do justice to the unusual degree of volatility that the municipal bond market experienced as the year drew to a close.

Until November, the period was characterized by a general slide in yields across the maturity curve, but for different reasons. The Federal Reserve kept interest rates—and, in effect, the returns on money market funds—near zero throughout the year. Scrambling for higher yields, investors turned to intermediate-term municipals, pushing up their prices and pushing down their yields. (As you know, bond prices and yields are inversely related.)

Among the longest-term tax-exempt bonds, demand clashed with a shortage of supply as states and local governments took advantage of federal subsidies to issue taxable municipal bonds, known as Build America Bonds (BABs). About a quarter of the $13 billion in New Jersey bonds issued by the state and local governments during the fiscal year were BABs. The temporary BABs program, designed to help fiscally stressed states and municipalities reduce debt financing costs, came into existence because of the early-2009 federal stimulus program and was designed to expire on December 31, 2010. Another December 31 deadline—the scheduled expiration of federal tax breaks—spurred demand for tax-exempt securities as uncertainty persisted about what Congress might do. [The BABs program ended on schedule, while the reduced tax rates were extended for two years.]

In August and September, municipal yields reached historical lows. In the final month of the fiscal year, however, the slide in yields (money market funds excepted) abruptly reversed, erasing all or much of the decline, depending on maturity, of the preceding 11 months. November turned out to be the most volatile month for municipal bonds since the height of the financial crisis in the fall of 2008. A new mix of factors led to a sell-off, with many investors moving assets from municipal bond funds to alternatives such as tax-exempt money market funds, despite their scant yields. The volatility and fund outflows continued in December.

November opened with the midterm elections. The results led many investors to expect that federal tax cuts would be extended. Immediately afterward, the Federal Reserve announced its widely anticipated program to purchase huge

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quantities of Treasury bonds, an action intended to stimulate the economy by lowering long-term interest rates. Nonetheless, Treasury yields rose in response to economic data suggesting a possibility of inflation to come. Muni yields followed.

Further upward pressure on yields in November came from expectations of swelling new-issue supply and sales of bonds by mutual funds that needed to raise cash for redemptions. (The Vanguard municipal bond funds have had adequate reserves to meet redemptions.) As of November 30, the yields of longer-term tax-exempt bonds had risen above those of taxable Treasuries, an inversion of the typical pattern.

Management of the funds
The turbulence that characterized the municipal bond market as the fiscal year ended did not reflect a material change in the credit fundamentals of bond issuers. State and local governments remain under great fiscal stress, of course, although the recession technically ended in June 2009. As in previous economic recoveries, the municipal sector tends to lag the general economy because time is needed for higher personal and business income to flow through the tax system. The road to improvement is likely to be longer than usual because of the depth of the recent recession, the worst since the Great Depression.

For this and other reasons, investors are understandably concerned about the health of muni bond issuers and their ability to make principal and interest payments on time. That is why close monitoring of the financial condition of state and local governments has always been a crucial component of our investment activities. Vanguard’s highly experienced credit analysts review each potential addition to our portfolios and reject those that don’t pass our rigorous evaluation process.

In view of the uncertainties surrounding the pace of the economic recovery, we held the New Jersey Long-Term Tax-Exempt Fund at a neutral average weighted duration compared with its benchmark index. As a consequence, interest rate positioning had no significant impact on the fund’s performance during this fiscal year.

Outlook
We expect to see more headlines citing the plight of state and local governments, and more comparisons between the states and European nations facing fiscal stress. We are confident, however, that states and municipalities will make the tough and unpleasant decisions about tax and service levels necessary to balance their budgets in the short term and address longer-term challenges, such as adequately funding retiree benefits. It’s a process that likely won’t be smooth in the give-and-take of the political arena.

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Nonrenewal of the BABs program would imply more tax-exempt issuance in 2011, especially in the long-term portion of the municipal market. If this happens, the additional supply could produce lower prices and higher yields at the long end of the yield curve.

Pamela Wisehaupt Tynan, Principal, Portfolio Manager

Michael G. Kobs, Portfolio Manager

Christopher W. Alwine, CFA, Principal, Head of Municipal Money Market and Bond Groups

Vanguard Fixed Income Group

December 21, 2010

Yields of Tax-Exempt Municipal Bonds
(AAA-Rated General-Obligation Issues)

  November 30,  November 30, 
Maturity  2009  2010 
2 years  0.61%  0.60% 
5 years  1.50  1.36 
10 years  2.78  2.79 
30 years  4.28  4.28 
Source: Vanguard.     

 

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New Jersey Tax-Exempt Money Market Fund

Fund Profile
As of November 30, 2010

Financial Attributes   
Ticker Symbol  VNJXX 
Expense Ratio1  0.17% 
7-Day SEC Yield  0.13% 
Average Weighted   
Maturity  35 days 

 

Distribution by Credit Quality (% of portfolio) 
First Tier  100.0% 
For information about these ratings, see the Glossary entry for Credit Quality. 
 

 

1 The expense ratio shown is from the prospectus dated April 22, 2010, and represents estimated costs for the current fiscal year. For the fiscal year ended November 30, 2010, the expense ratio was 0.17%.

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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 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 fund’s 7-day SEC yield reflects its current earnings more closely than do the average annual returns.

Cumulative Performance: November 30, 2000, Through November 30, 2010
Initial Investment of $10,000


  Average Annual Total Returns   
  Periods Ended November 30, 2010   
        Final Value 
  One  Five  Ten  of a $10,000 
  Year  Years  Years  Investment 
New Jersey Tax-Exempt Money         
Market Fund  0.11%  1.93%  1.78%  $11,927 
New Jersey Tax-Exempt Money         
Market Funds Average  0.01  1.60  1.39  11,479 

 

New Jersey Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper Inc.

See Financial Highlights for dividend information.

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New Jersey Tax-Exempt Money Market Fund     
 
 
 
 
Fiscal-Year Total Returns (%): November 30, 2000, Through November 30, 2010   
    NJ Tax-Exempt 
    Money Mkt 
    Funds Avg 
Fiscal Year  Total Returns  Total Returns 
2001  2.80%  2.38% 
2002  1.29  0.88 
2003  0.87  0.48 
2004  1.03  0.55 
2005  2.17  1.63 
2006  3.25  2.74 
2007  3.60  3.12 
2008  2.27  1.90 
2009  0.45  0.25 
2010  0.11  0.01 
7-day SEC yield (11/30/2010): 0.13%     
New Jersey Tax-Exempt Money Market Funds Average: Derived from data provided by Lipper Inc.   

 

Average Annual Total Returns: Periods Ended September 30, 2010
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  One  Five  Ten 
  Date  Year  Years  Years 
New Jersey Tax-Exempt Money         
Market Fund  2/3/1988  0.11%  2.01%  1.84% 

 

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New Jersey Tax-Exempt Money Market Fund

Financial Statements

Statement of Net Assets
As of November 30, 2010

The fund reports a complete list of its holdings in regulatory filings 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 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). In addition, the fund publishes its holdings on a monthly basis at vanguard.com.

      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
Tax-Exempt Municipal Bonds (99.3%)         
New Jersey (89.5%)         
Bergen County NJ BAN  1.500%  12/17/10  26,685  26,699 
Bridgewater Township NJ BAN  2.000%  8/11/11  6,600  6,667 
Burlington County NJ BAN  1.500%  10/20/11  10,675  10,776 
Camden County NJ Improvement Authority         
Health Care Redevelopment Project Revenue         
(Cooper Health System Obligated Group) VRDO  0.250%  12/7/10 LOC  12,150  12,150 
Camden County NJ Improvement Authority         
Lease Revenue (Parkview Redevelopment         
Housing Project) VRDO  0.250%  12/7/10 LOC  49,500  49,500 
Delaware River & Bay Authority New Jersey         
Revenue VRDO  0.250%  12/7/10 LOC  4,300  4,300 
Delaware River Port Authority Pennsylvania &         
New Jersey Revenue VRDO  0.250%  12/7/10 LOC  40,615  40,615 
Delaware River Port Authority Pennsylvania &         
New Jersey Revenue VRDO  0.260%  12/7/10 LOC  15,500  15,500 
Delaware River Port Authority Pennsylvania &         
New Jersey Revenue VRDO  0.320%  12/7/10 LOC  41,900  41,900 
Egg Harbor Township NJ School District GO  5.000%  7/15/11 (Prere.)  2,640  2,742 
Egg Harbor Township NJ School District GO  5.000%  7/15/11 (Prere.)  2,780  2,887 
Egg Harbor Township NJ School District GO  5.000%  7/15/11 (Prere.)  2,000  2,077 
Egg Harbor Township NJ School District GO  5.000%  7/15/11 (Prere.)  1,400  1,454 
Egg Harbor Township NJ School District GO  5.100%  7/15/11 (Prere.)  2,950  3,066 
Essex County NJ Improvement Authority         
Revenue (Jewish Community Center of         
MetroWest Inc. Project) VRDO  0.250%  12/7/10 LOC  11,625  11,625 
Fair Lawn NJ BAN  2.000%  12/16/10  15,665  15,676 
Florham Park NJ BAN  1.500%  2/1/11  5,700  5,711 
1 Garden State Preservation Trust New Jersey         
Revenue (Open Space & Farmland Preservation)         
TOB VRDO  0.300%  12/7/10 (4)  4,185  4,185 
Gloucester County NJ BAN  2.000%  9/29/11  13,500  13,685 
Gloucester County NJ Pollution Control Financing         
Authority Revenue (ExxonMobil Project) VRDO  0.170%  12/1/10  40,100  40,100 
Hopewell Township NJ BAN  2.000%  6/9/11  6,990  7,044 
Linden NJ BAN  1.500%  5/12/11  14,174  14,238 
1 Madison Borough NJ Board of Education         
TOB VRDO  0.290%  12/7/10 LOC  11,690  11,690 

 

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New Jersey Tax-Exempt Money Market Fund

      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
Mahwah Township NJ BAN  2.000%  8/12/11  5,000  5,055 
Mahwah Township NJ BAN  2.000%  10/14/11  8,000  8,113 
Mercer County NJ BAN  1.500%  2/15/11  37,590  37,679 
New Jersey Building Authority Revenue VRDO  0.250%  12/7/10 LOC  13,070  13,070 
New Jersey Building Authority Revenue VRDO  0.250%  12/7/10 LOC  26,865  26,865 
New Jersey Building Authority Revenue VRDO  0.250%  12/7/10 LOC  26,780  26,780 
New Jersey Economic Development Authority         
Exempt Facility Revenue (Logan Project) CP  0.330%  12/8/10  50,000  50,000 
New Jersey Economic Development Authority         
Industrial Development Revenue (Ocean Spray         
Cranberries Inc. Project) VRDO  0.420%  12/7/10 LOC  8,000  8,000 
New Jersey Economic Development Authority         
Mortgage Revenue (Franciscan Oaks Project)         
VRDO  0.250%  12/7/10 LOC  2,270  2,270 
New Jersey Economic Development Authority         
Natural Gas Facilities Revenue (New Jersey         
Natural Gas) VRDO  0.320%  12/7/10 LOC  8,500  8,500 
New Jersey Economic Development Authority         
Natural Gas Facilities Revenue (Nui Corp.) VRDO  0.280%  12/1/10 LOC  5,000  5,000 
New Jersey Economic Development Authority         
Natural Gas Facilities Revenue (Pivotal Utility         
Holdings Inc. Project) VRDO  0.280%  12/1/10 LOC  5,000  5,000 
New Jersey Economic Development Authority         
Revenue (Cooper Health System Project) VRDO  0.250%  12/7/10 LOC  18,300  18,300 
1 New Jersey Economic Development Authority         
Revenue (Duke Farms Foundation Project)         
TOB VRDO  0.310%  12/7/10  7,900  7,900 
New Jersey Economic Development Authority         
Revenue (Duke Farms Foundation Project) VRDO  0.310%  12/1/10 LOC  16,600  16,600 
New Jersey Economic Development Authority         
Revenue (Geriatric Services Housing Corp. Inc. -         
CNJJHA Assisted Living Project) VRDO  0.320%  12/7/10 LOC  11,435  11,435 
New Jersey Economic Development Authority         
Revenue (Order of St. Benedict Project) VRDO  0.250%  12/7/10 LOC  15,810  15,810 
New Jersey Economic Development Authority         
Revenue (Order of St. Benedict Project) VRDO  0.250%  12/7/10 LOC  14,275  14,275 
New Jersey Economic Development Authority         
Revenue (Presbyterian Homes Assisted         
Living) VRDO  0.250%  12/7/10 LOC  9,800  9,800 
New Jersey Economic Development Authority         
Revenue (Ranney School Project) VRDO  0.270%  12/7/10 LOC  10,800  10,800 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  3/1/11 (ETM)  3,000  3,034 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.250%  6/15/11 (Prere.)  7,040  7,224 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.250%  6/15/11 (Prere.)  3,000  3,079 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.250%  6/15/11 (Prere.)  10,000  10,269 
1 New Jersey Economic Development Authority         
Revenue (School Facilities Construction)         
TOB VRDO  0.290%  12/7/10 (4)  11,045  11,045 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction) VRDO  0.260%  12/1/10 LOC  69,335  69,335 

 

15

 

New Jersey Tax-Exempt Money Market Fund

      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction) VRDO  0.250%  12/7/10 LOC  46,225  46,225 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction) VRDO  0.280%  12/7/10 LOC  30,000  30,000 
New Jersey Economic Development Authority         
Revenue (Trustees of the Lawrenceville School         
Project) VRDO  0.260%  12/1/10  1,000  1,000 
New Jersey Economic Development Authority         
Revenue (Trustees of the Lawrenceville School         
Project) VRDO  0.250%  12/1/10  4,750  4,750 
New Jersey Economic Development Authority         
Revenue Pollution Control Revenue (Exxon         
Project) VRDO  0.160%  12/1/10  1,300  1,300 
1 New Jersey Economic Development Authority         
Revenue TOB VRDO  0.290%  12/7/10 LOC  10,275  10,275 
New Jersey Economic Development Authority         
Revenue VRDO  0.250%  12/7/10 LOC  9,720  9,720 
New Jersey Economic Development Authority         
School Revenue (Blair Academy Project) VRDO  0.250%  12/7/10 LOC  12,015  12,015 
New Jersey Economic Development Authority         
Special Facility Revenue (Port Newark         
Container) VRDO  0.270%  12/7/10 LOC  23,700  23,700 
New Jersey Educational Facilities Authority         
Revenue (Caldwell College) VRDO  0.250%  12/7/10 LOC  7,300  7,300 
1 New Jersey Educational Facilities Authority         
Revenue (Institute for Advanced Studies) VRDO  0.270%  12/7/10  25,200  25,200 
New Jersey Educational Facilities Authority         
Revenue (Institute for Advanced Studies) VRDO  0.270%  12/7/10  13,625  13,625 
1 New Jersey Educational Facilities Authority         
Revenue (Institute for Defense Analyses) VRDO  0.290%  12/7/10 LOC  9,170  9,170 
New Jersey Educational Facilities Authority         
Revenue (Princeton University)  5.000%  7/1/11  3,000  3,083 
1 New Jersey Educational Facilities Authority         
Revenue (Princeton University) TOB VRDO  0.300%  12/7/10  10,900  10,900 
New Jersey Educational Facilities Authority         
Revenue (Seton Hall University) VRDO  0.260%  12/7/10 LOC  7,400  7,400 
New Jersey Environmental Infrastructure         
Trust Revenue  3.000%  9/1/11  4,865  4,964 
New Jersey GO  6.000%  2/15/11 (ETM)  3,000  3,035 
1 New Jersey GO TOB PUT  0.280%  12/1/10  50,000  50,000 
New Jersey Health Care Facilities Financing         
Authority Revenue (AHS Hospital Corp.) VRDO  0.280%  12/7/10 LOC  44,000  44,000 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hospital Capital Asset         
Pooled Program)  0.310%  12/7/10 LOC  8,500  8,500 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hospital Capital Asset         
Pooled Program)  0.310%  12/7/10 LOC  20,000  20,000 
New Jersey Health Care Facilities Financing         
Authority Revenue (Meridian Health         
Systems) VRDO  0.290%  12/7/10 LOC  27,500  27,500 
New Jersey Health Care Facilities Financing         
Authority Revenue (Meridian IV) VRDO  0.250%  12/7/10 (12)  18,330  18,330 
1 New Jersey Health Care Facilities Financing         
Authority Revenue (Meridian V) TOB VRDO  0.320%  12/7/10 (12)  5,635  5,635 

 

16

 

New Jersey Tax-Exempt Money Market Fund

      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Health Care Facilities Financing         
Authority Revenue (MHAC I LLC) VRDO  0.250%  12/7/10 LOC  9,625  9,625 
New Jersey Health Care Facilities Financing         
Authority Revenue (Princeton Healthcare) VRDO  0.250%  12/7/10 LOC  7,500  7,500 
New Jersey Health Care Facilities Financing         
Authority Revenue (Rahway Hospital) VRDO  0.250%  12/7/10 LOC  9,280  9,280 
New Jersey Health Care Facilities Financing         
Authority Revenue (Robert Wood Johnson         
University) VRDO  0.250%  12/7/10 LOC  19,000  19,000 
New Jersey Health Care Facilities Financing         
Authority Revenue (RWJ Health Care         
Corp.) VRDO  0.250%  12/7/10 LOC  14,665  14,665 
New Jersey Health Care Facilities Financing         
Authority Revenue (Virtua Health) VRDO  0.250%  12/7/10 LOC  23,850  23,850 
New Jersey Health Care Facilities Financing         
Authority Revenue (Virtua Health) VRDO  0.280%  12/7/10 LOC  14,000  14,000 
1 New Jersey Higher Education Assistance         
Authority Student Loan Revenue TOB VRDO  0.300%  12/7/10  5,435  5,435 
New Jersey Housing & Mortgage Finance         
Agency Multi-Family Housing Revenue VRDO  0.270%  12/7/10 LOC  6,830  6,830 
New Jersey Housing & Mortgage Finance         
Agency Multi-Family Housing Revenue VRDO  0.290%  12/7/10 (4)  14,025  14,025 
New Jersey Housing & Mortgage Finance         
Agency Multi-Family Housing Revenue VRDO  0.290%  12/7/10 (4)  21,015  21,015 
New Jersey Housing & Mortgage Finance         
Agency Multi-Family Housing Revenue VRDO  0.300%  12/7/10 (4)  11,945  11,945 
1 New Jersey Housing & Mortgage Finance         
Agency Single Family Housing Revenue         
TOB VRDO  0.360%  12/7/10  7,500  7,500 
1 New Jersey Housing & Mortgage Finance         
Agency Single Family Housing Revenue         
TOB VRDO  0.410%  12/7/10  6,840  6,840 
New Jersey Housing & Mortgage Finance         
Agency Single Family Housing Revenue VRDO  0.250%  12/7/10  21,800  21,800 
New Jersey Housing & Mortgage Finance Agency         
Single Family Housing Revenue VRDO  0.270%  12/7/10  10,500  10,500 
New Jersey Housing & Mortgage Finance Agency         
Single Family Housing Revenue VRDO  0.270%  12/7/10  13,900  13,900 
New Jersey Housing & Mortgage Finance Agency         
Single Family Housing Revenue VRDO  0.270%  12/7/10  9,900  9,900 
New Jersey Housing & Mortgage Finance Agency         
Single Family Housing Revenue VRDO  0.270%  12/7/10  9,000  9,000 
New Jersey Housing & Mortgage Finance Agency         
Single Family Housing Revenue VRDO  0.300%  12/7/10  20,000  20,000 
1 New Jersey Transportation Trust Fund Authority         
Revenue TOB VRDO  0.300%  12/7/10 LOC  11,045  11,045 
1 New Jersey Transportation Trust Fund Authority         
Revenue TOB VRDO  0.310%  12/7/10 LOC  24,355  24,355 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  6/15/11 (ETM)  7,165  7,352 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  6.500%  6/15/11 (ETM)  7,510  7,754 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  6.000%  12/15/11 (Prere.)  330  349 

 

17

 

New Jersey Tax-Exempt Money Market Fund

      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  6.000%  12/15/11 (Prere.)  1,440  1,523 
1 New Jersey Transportation Trust Fund Authority         
Transportation System Revenue TOB VRDO  0.290%  12/7/10 (4)  15,985  15,985 
1 New Jersey Transportation Trust Fund Authority         
Transportation System Revenue TOB VRDO  0.290%  12/7/10 LOC  12,355  12,355 
1 New Jersey Transportation Trust Fund Authority         
Transportation System Revenue TOB VRDO  0.300%  12/7/10 LOC  39,530  39,530 
1 New Jersey Turnpike Authority Revenue         
TOB VRDO  0.400%  12/7/10 (4)  8,545  8,545 
1 New Jersey Turnpike Authority Revenue         
TOB VRDO  0.400%  12/7/10 (4)  6,745  6,745 
New Jersey Turnpike Authority Revenue         
VRDO  0.280%  12/7/10 LOC  15,900  15,900 
New Jersey Turnpike Authority Revenue         
VRDO  0.310%  12/7/10 LOC  73,100  73,100 
1 Nuveen New Jersey Investment Quality         
Municipal Fund VRDP VRDO  0.550%  12/7/10 LOC  30,000  30,000 
1 Port Authority of New York & New Jersey         
Revenue TOB VRDO  0.310%  12/7/10 (4)  6,200  6,200 
1 Port Authority of New York & New Jersey         
Revenue TOB VRDO  0.310%  12/7/10 (4)  5,000  5,000 
1 Port Authority of New York & New Jersey         
Revenue TOB VRDO  0.330%  12/7/10 (4)  7,770  7,770 
1 Port Authority of New York & New Jersey         
Revenue TOB VRDO  0.360%  12/7/10  5,600  5,600 
1 Port Authority of New York & New Jersey         
Revenue TOB VRDO  0.370%  12/7/10 (4)  23,415  23,415 
1 Port Authority of New York & New Jersey         
Revenue TOB VRDO  0.390%  12/7/10  5,555  5,555 
1 Port Authority of New York & New Jersey         
Revenue TOB VRDO  0.390%  12/7/10  3,335  3,335 
1 Port Authority of New York & New Jersey         
Revenue TOB VRDO  0.400%  12/7/10  7,320  7,320 
1 Port Authority of New York & New Jersey         
Revenue TOB VRDO  0.400%  12/7/10 (4)  4,050  4,050 
Princeton University New Jersey CP  0.280%  3/8/11  7,650  7,650 
Rockaway Township NJ BAN  2.000%  9/30/11  9,912  10,038 
Rutgers State University New Jersey         
Revenue VRDO  0.300%  12/1/10  63,705  63,705 
Rutgers State University New Jersey         
Revenue VRDO  0.240%  12/1/10  28,500  28,500 
Scotch Plains Township NJ BAN  1.750%  1/21/11  8,435  8,452 
South Jersey Transportation Authority New         
Jersey Transportation System Revenue VRDO  0.250%  12/7/10 LOC  16,040  16,040 
Summit NJ BAN  1.500%  1/21/11  6,350  6,360 
Summit NJ BAN  1.500%  1/21/11  6,485  6,496 
1 Tobacco Settlement Financing Corp. New Jersey         
Revenue TOB VRDO  0.300%  12/7/10 (Prere.)  21,885  21,885 
Union County NJ BAN  2.000%  7/1/11  30,000  30,264 
Union County NJ Pollution Control Financing         
Authority Revenue (Exxon Project) VRDO  0.170%  12/1/10  27,410  27,410 
Union County NJ Pollution Control Financing         
Authority Revenue (Exxon Project) VRDO  0.160%  12/1/10  16,525  16,525 
Wayne Township NJ BAN  2.000%  9/16/11  5,500  5,565 
        1,975,435 

 

18

 

New Jersey Tax-Exempt Money Market Fund

        Face  Market 
      Maturity  Amount  Value  
    Coupon  Date  ($000)  ($000) 
Puerto Rico (9.8%)         
1  Puerto Rico Aqueduct & Sewer Authority         
  Revenue TOB VRDO  0.340%  12/7/10 (12)  5,450  5,450 
1  Puerto Rico Electric Power Authority         
  Revenue TOB VRDO  0.300%  12/7/10 (4)  11,330  11,330 
1  Puerto Rico Highway & Transportation Authority         
  Revenue TOB VRDO  0.310%  12/7/10 (4)  3,000  3,000 
1  Puerto Rico Housing Finance Authority Revenue         
  TOB VRDO  0.300%  12/7/10  6,760  6,760 
1  Puerto Rico Industrial Medical & Environmental         
  Pollution Control Facilities Financing Authority         
  Revenue (Abbott Laboratories Project) PUT  0.950%  3/1/11  12,575  12,575 
  Puerto Rico Sales Tax Financing Corp.         
  Revenue PUT  5.000%  8/1/11 (Prere.)  72,650  74,930 
1  Puerto Rico Sales Tax Financing Corp.         
  Revenue TOB VRDO  0.280%  12/7/10  900  900 
1  Puerto Rico Sales Tax Financing Corp.         
  Revenue TOB VRDO  0.300%  12/7/10  6,725  6,725 
1  Puerto Rico Sales Tax Financing Corp.         
  Revenue TOB VRDO  0.300%  12/7/10  43,500  43,500 
1  Puerto Rico Sales Tax Financing Corp.         
  Revenue TOB VRDO  0.300%  12/7/10 LOC  8,720  8,720 
1  Puerto Rico Sales Tax Financing Corp.         
  Revenue TOB VRDO  0.310%  12/7/10  4,875  4,875 
1  Puerto Rico Sales Tax Financing Corp.         
  Revenue TOB VRDO  0.310%  12/7/10 LOC  8,900  8,900 
1  Puerto Rico Sales Tax Financing Corp.         
  Revenue TOB VRDO  0.310%  12/7/10 LOC  7,425  7,425 
1  Puerto Rico Sales Tax Financing Corp.         
  Revenue TOB VRDO  0.310%  12/7/10 LOC  8,975  8,975 
1  Puerto Rico Sales Tax Financing Corp.         
  Revenue TOB VRDO  0.350%  12/7/10  11,800  11,800 
          215,865 
Total Tax-Exempt Municipal Bonds (Cost $2,191,300)        2,191,300 
Other Assets and Liabilities (0.7%)         
Other Assets        29,052 
Liabilities        (14,390) 
          14,662 
Net Assets (100%)         
Applicable to 2,205,687,704 outstanding $.001 par value shares of       
beneficial interest (unlimited authorization)        2,205,962 
Net Asset Value Per Share        $1.00 

 

19

 

New Jersey Tax-Exempt Money Market Fund

At November 30, 2010, net assets consisted of:   
  Amount 
  ($000) 
Paid-in Capital  2,205,965 
Undistributed Net Investment Income  — 
Accumulated Net Realized Losses  (3) 
Net Assets  2,205,962 

 

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, 2010, the aggregate value of these securities was $545,400,000, representing 24.7% of net assets.
A key to abbreviations and other references follows the Statement of Net Assets.
See accompanying Notes, which are an integral part of the Financial Statements.

20

 

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.
VRDP—Variable Rate Demand Preferred.
(ETM)—Escrowed to Maturity.
(Prere.)—Prerefunded.

Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Investors Assurance).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) AGM (Assured Guaranty Municipal Corporation).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty).
(12) Assured Guaranty Corp.
(13) Berkshire Hathaway Assurance Corp.
(14) National Public Finance Guarantee 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, 2010 
  ($000) 
Investment Income   
Income   
Interest  6,550 
Total Income  6,550 
Expenses   
The Vanguard Group—Note B   
   Investment Advisory Services  511 
   Management and Administrative  2,681 
   Marketing and Distribution  737 
Custodian Fees  17 
Auditing Fees  21 
Shareholders’ Reports  13 
Trustees’ Fees and Expenses  3 
Total Expenses  3,983 
Net Investment Income  2,567 
Realized Net Gain (Loss) on Investment Securities Sold  (3) 
Net Increase (Decrease) in Net Assets Resulting from Operations  2,564 

 

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

22

 

New Jersey Tax-Exempt Money Market Fund     
 
 
Statement of Changes in Net Assets     
 
  Year Ended November 30, 
  2010  2009 
  ($000)  ($000) 
Increase (Decrease) in Net Assets     
Operations     
Net Investment Income  2,567  13,205 
Realized Net Gain (Loss)  (3)  97 
Net Increase (Decrease) in Net Assets Resulting from Operations  2,564  13,302 
Distributions     
Net Investment Income  (2,567)  (13,205) 
Realized Capital Gain  —  — 
Total Distributions  (2,567)  (13,205) 
Capital Share Transactions (at $1.00)     
Issued  1,251,685  1,572,673 
Issued in Lieu of Cash Distributions  2,473  12,666 
Redeemed  (1,594,393)  (2,165,309) 
Net Increase (Decrease) from Capital Share Transactions  (340,235)  (579,970) 
Total Increase (Decrease)  (340,238)  (579,873) 
Net Assets     
Beginning of Period  2,546,200  3,126,073 
End of Period  2,205,962  2,546,200 

 

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

23

 

New Jersey Tax-Exempt Money Market Fund           
 
 
Financial Highlights           
 
 
For a Share Outstanding      Year Ended November 30, 
Throughout Each Period  2010  2009  2008  2007  2006 
Net Asset Value, Beginning of Period  $1.00  $1.00  $1.00  $1.00  $1.00 
Investment Operations           
Net Investment Income  .001  .005  .022  .035  .032 
Net Realized and Unrealized Gain (Loss)           
on Investments  —  —  —  —  — 
Total from Investment Operations  .001  .005  .022  .035  .032 
Distributions           
Dividends from Net Investment Income  (.001)  (.005)  (.022)  (.035)  (.032) 
Distributions from Realized Capital Gains  —  —  —  —  — 
Total Distributions  (.001)  (.005)  (.022)  (.035)  (.032) 
Net Asset Value, End of Period  $1.00  $1.00  $1.00  $1.00  $1.00 
 
Total Return1  0.11%  0.45%  2.27%  3.60%  3.25% 
 
Ratios/Supplemental Data           
Net Assets, End of Period (Millions)  $2,206  $2,546  $3,126  $3,448  $2,787 
Ratio of Total Expenses to           
Average Net Assets  0.17%  0.17%2  0.11%2  0.10%  0.13% 
Ratio of Net Investment Income to           
Average Net Assets  0.11%  0.46%  2.24%  3.53%  3.21% 

 

1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
2 Includes fees to participate in the Treasury Temporary Guarantee Program for Money Market Funds of 0.04% for 2009 and 0.01% for 2008.

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.

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

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

2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (November 30, 2007–2010), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

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

4. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At November 30, 2010, the fund had contributed capital of $386,000 to Vanguard (included in Other Assets), representing 0.02% 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. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

At November 30, 2010, 100% of the fund’s investments were valued using amortized cost, in accordance with rules under the Investment Company Act of 1940. Amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, securities valued at amortized cost are considered to be valued using Level 2 inputs.

D. In preparing the financial statements as of November 30, 2010, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.

25

 

New Jersey Long-Term Tax-Exempt Fund

Fund Profile
As of November 30, 2010

Share-Class Characteristics     
  Investor  Admiral 
  Shares  Shares 
Ticker Symbol  VNJTX  VNJUX 
Expense Ratio1  0.20%  0.12% 
30-Day SEC Yield  3.22%  3.30% 
 
Financial Attributes       
    Barclays   Barclays 
    10 Year  Municipal 
    Municipal  Bond 
  Fund  Index  Index 
Number of Bonds  371  8,595  46,372 
Yield to Maturity       
(before expenses)  3.6%  3.3%  3.5% 
Average Coupon  4.4%  4.9%  5.0% 
Average Duration  6.7 years  7.3 years  8.4 years 
Average Effective       
Maturity  7.6 years  9.9 years   13.4 years 
Short-Term       
Reserves  2.6%  —  — 

 

Volatility Measures     
  Barclays   
  10 Year  Barclays 
  Municipal  Municipal 
  Index  Bond Index 
R-Squared  0.90  0.98 
Beta  0.96  1.02 

 

These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.

Distribution by Maturity (% of portfolio)   
Under 1 Year  7.1% 
1 - 3 Years  16.6 
3 - 5 Years  16.5 
5 - 10 Years  38.0 
10 - 20 Years  16.2 
20 - 30 Years  4.3 
Over 30 Years  1.3 

 

Distribution by Credit Quality (% of portfolio) 
AAA  12.3% 
AA  54.9 
A  21.7 
BBB  9.3 
B  0.2 
Not Rated  1.6 

 

For information about these ratings, see the Glossary entry for Credit Quality.

Investment Focus

1 The expense ratios shown are from the prospectus dated April 22, 2010, and represent estimated costs for the current fiscal year. For the fiscal year ended November 30, 2010, the expense ratios were 0.20% for Investor Shares and 0.12% for Admiral Shares.

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 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, 2000, Through November 30, 2010
Initial Investment of $10,000


  Average Annual Total Returns   
  Periods Ended November 30, 2010   
        Final Value 
  One  Five  Ten  of a $10,000 
  Year  Years  Years  Investment 
New Jersey Long-Term Tax-Exempt         
Fund Investor Shares  3.59%  4.14%  4.90%  $16,129 
Barclays Capital Municipal Bond Index  4.76  4.67  5.30  16,754 
Barclays Capital 10 Year Municipal         
Bond Index  5.51  5.40  5.57  17,200 
New Jersey Municipal Debt Funds         
Average  4.58  3.50  4.29  15,220 

 

New Jersey Municipal Debt Funds Average: Derived from data provided by Lipper Inc.

See Financial Highlights for dividend and capital gains information.

27

 

New Jersey Long-Term Tax-Exempt Fund

    Average Annual Total Returns   
    Periods Ended November 30, 2010   
      Since  Final Value 
  One  Five  Inception  of a $50,000 
  Year  Years  (5/14/2001)  Investment 
New Jersey Long-Term Tax-Exempt         
Fund Admiral Shares  3.68%  4.22%  4.73%  $77,738 
Barclays Capital Municipal Bond         
Index  4.76  4.67  5.09  80,314 
Barclays Capital 10 Year Municipal         
Bond Index  5.51  5.40  5.39  82,557 
"Since Inception" performance is calculated from the Admiral Shares’ inception date for both the fund and its comparative standards. 

 

Fiscal-Year Total Returns (%): November 30, 2000, Through November 30, 2010   
        Barclays 
        10 Year 
        Municipal 
      Investor Shares  Index 
Fiscal Year  Income Returns  Capital Returns  Total Returns  Total Returns 
2001  5.16%  3.39%  8.55%  8.22% 
2002  4.95  1.47  6.42  6.67 
2003  4.68  2.13  6.81  6.88 
2004  4.56  -1.23  3.33  4.03 
2005  4.42  -1.13  3.29  3.01 
2006  4.61  2.40  7.01  6.17 
2007  4.34  -2.30  2.04  3.51 
2008  4.11  -7.60  -3.49  -0.42 
2009  4.61  7.58  12.19  12.67 
2010  4.11  -0.52  3.59  5.51 

 

28

 

New Jersey Long-Term Tax-Exempt Fund

Average Annual Total Returns: Periods Ended September 30, 2010
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  Income  Capital  Total 
Investor Shares  2/3/1988  4.75%  4.62%  4.59%  0.77%  5.36% 
Admiral Shares  5/14/2001  4.83  4.69  4.611  0.481  5.091 
1 Return since inception.             

 

29

 

New Jersey Long-Term Tax-Exempt Fund

Financial Statements

Statement of Net Assets
As of November 30, 2010

The fund reports a complete list of its holdings in regulatory filings 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 sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).

      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
Tax-Exempt Municipal Bonds (98.5%)         
New Jersey (97.0%)         
Atlantic County NJ Public Facilities COP  7.400%  3/1/11 (14)  4,025  4,092 
Atlantic County NJ Public Facilities COP  6.000%  3/1/14 (14)  3,685  4,210 
Atlantic County NJ Public Facilities COP  6.000%  3/1/15 (14)  1,480  1,732 
Atlantic County NJ Utility Authority         
Sewer Revenue  6.875%  1/1/12 (ETM)  725  750 
Bayonne NJ TAN  5.750%  7/1/35  10,000  10,837 
Burlington County NJ Bridge         
Commission Revenue  5.250%  12/15/21 (2)  3,200  3,545 
Camden County NJ Improvement Authority Lease         
Revenue (Cherry Hill Township Library Project)  5.500%  5/1/12 (Prere.)  1,335  1,428 
Camden County NJ Improvement Authority Lease         
Revenue (Cherry Hill Township Library Project)  5.500%  5/1/12 (Prere.)  1,265  1,353 
Camden County NJ Improvement Authority Lease         
Revenue (Cherry Hill Township Library Project)  5.500%  5/1/12 (Prere.)  1,025  1,097 
Camden County NJ Improvement Authority Lease         
Revenue (Cherry Hill Township Library Project)  5.500%  5/1/12 (Prere.)  1,140  1,220 
Cape May County NJ Industrial Pollution Control         
Financing Authority Revenue         
(Atlantic City Electric Co. Project)  6.800%  3/1/21 (14)  15,400  18,841 
Cape May County NJ Municipal Utility         
Authority Revenue  5.250%  1/1/18 (14)  2,165  2,252 
Delaware River Port Authority Pennsylvania &         
New Jersey Revenue  5.625%  1/1/26 (4)  2,500  2,502 
Delaware River Port Authority Pennsylvania &         
New Jersey Revenue  5.000%  1/1/35  4,000  4,049 
Essex County NJ Improvement         
Authority Revenue  5.250%  12/15/18 (2)  10,000  11,557 
Essex County NJ Improvement         
Authority Revenue  5.250%  12/15/20 (2)  5,010  5,699 
Evesham NJ Utility Authority Revenue  5.000%  7/1/16 (2)  3,435  3,631 
Evesham NJ Utility Authority Revenue  5.000%  7/1/17 (2)  3,705  3,916 
Evesham NJ Utility Authority Revenue  5.000%  7/1/18 (2)  1,605  1,681 
Garden State Preservation Trust New Jersey         
Revenue (Open Space & Farmland Preservation)  0.000%  11/1/21 (4)  9,825  6,432 
Garden State Preservation Trust New Jersey         
Revenue (Open Space & Farmland Preservation)  5.250%  11/1/21 (4)  6,000  7,035 

 

30

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
Garden State Preservation Trust New Jersey         
Revenue (Open Space & Farmland Preservation)  0.000%  11/1/22 (4)  32,200  19,985 
Garden State Preservation Trust New Jersey         
Revenue (Open Space & Farmland Preservation)  5.750%  11/1/28 (4)  7,500  8,731 
Gloucester County NJ Improvement Authority         
Lease Revenue  5.000%  7/15/16 (14)  1,000  1,081 
Gloucester County NJ Improvement Authority         
Lease Revenue  5.000%  7/15/17 (14)  865  943 
Gloucester County NJ Improvement Authority         
Lease Revenue  5.000%  7/15/20 (14)  1,150  1,227 
Gloucester County NJ Improvement Authority         
Lease Revenue  5.000%  7/15/23 (14)  1,000  1,030 
Gloucester County NJ Improvement Authority         
Lease Revenue  5.000%  4/1/38  9,750  10,064 
Gloucester Township NJ Municipal Utility         
Authority Revenue  5.650%  3/1/18 (2)  2,510  2,853 
Hillsborough Township NJ School District GO  5.375%  10/1/13 (4)  1,250  1,411 
Hillsborough Township NJ School District GO  5.375%  10/1/19 (4)  1,720  2,085 
Hoboken-Union City-Weehawken NJ Sewerage         
Authority Revenue  6.250%  8/1/13 (14)  9,590  10,514 
Jackson Township NJ Board of Education GO  5.375%  4/15/12 (Prere.)  6,885  7,326 
Jackson Township NJ Board of Education GO  5.375%  4/15/12 (Prere.)  7,676  8,168 
Jackson Township NJ Board of Education GO  5.250%  6/15/21 (14)  11,195  13,184 
Marlboro Township NJ Board of Education GO  5.000%  7/15/14  1,045  1,074 
Mercer County NJ Improvement Authority         
Special Services School District Revenue  5.950%  12/15/12  2,590  2,854 
Middlesex County NJ COP  5.000%  8/1/11 (14)  1,050  1,080 
Middlesex County NJ COP  5.500%  8/1/15 (14)  1,195  1,231 
Middlesex County NJ Improvement Authority         
Lease Revenue (Perth Amboy Municipal         
Complex Project)  5.375%  3/15/22 (14)  1,825  1,849 
Middlesex County NJ Improvement Authority         
Lease Revenue (Perth Amboy Municipal         
Complex Project)  5.375%  3/15/23 (14)  1,925  1,944 
Middlesex County NJ Improvement Authority         
Revenue (Heldrich Center Hotel/         
Conference Project)  5.000%  1/1/15  435  272 
Middlesex County NJ Improvement Authority         
Revenue (Heldrich Center Hotel/         
Conference Project)  5.000%  1/1/20  500  270 
Middlesex County NJ Improvement Authority         
Revenue (Heldrich Center Hotel/         
Conference Project)  5.000%  1/1/32  5,100  2,698 
Middlesex County NJ Improvement Authority         
Revenue (Heldrich Center Hotel/         
Conference Project)  5.125%  1/1/37  3,500  1,846 
Middlesex County NJ Improvement Authority         
Revenue (Open Space Trust Fund)  5.250%  9/15/19  1,585  1,744 
Middlesex County NJ Improvement Authority         
Revenue (Open Space Trust Fund)  5.250%  9/15/20  1,600  1,758 
Middlesex County NJ Improvement Authority         
Revenue (Open Space Trust Fund)  5.250%  9/15/21  2,375  2,606 
Middlesex County NJ Improvement Authority         
Utility Systems Revenue (Perth Amboy)  0.000%  9/1/15 (2)  2,000  1,669 

 

31

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
Middlesex County NJ Improvement Authority         
Utility Systems Revenue (Perth Amboy)  0.000%  9/1/16 (2)  3,000  2,372 
Middlesex County NJ Improvement Authority         
Utility Systems Revenue (Perth Amboy)  0.000%  9/1/18 (2)  4,550  3,156 
Monmouth County NJ Improvement Authority         
Lease Revenue (Brookdale Community College)  5.875%  8/1/31  1,000  1,122 
Monmouth County NJ Improvement Authority         
Lease Revenue (Brookdale Community College)  6.000%  8/1/38  3,900  4,348 
Monmouth County NJ Improvement Authority         
Revenue (Howell Township Board of Education)  5.000%  7/15/12 (Prere.)  2,115  2,264 
Monmouth County NJ Improvement Authority         
Revenue (Howell Township Board of Education)  5.000%  7/15/12 (Prere.)  2,225  2,382 
Monmouth County NJ Improvement Authority         
Revenue (Pooled Government Loan)  5.000%  12/1/13 (2)  1,545  1,674 
Monmouth County NJ Improvement Authority         
Revenue (Pooled Government Loan)  5.000%  12/1/14 (2)  3,205  3,513 
Monmouth County NJ Improvement Authority         
Revenue (Pooled Government Loan)  5.000%  12/1/16 (2)  1,000  1,126 
Monmouth County NJ Improvement Authority         
Revenue (Pooled Government Loan)  5.250%  12/1/18 (2)  2,000  2,232 
Monmouth County NJ Improvement Authority         
Revenue (Pooled Government Loan)  5.250%  12/1/21 (2)  1,275  1,366 
Montgomery Township NJ School District GO  5.250%  8/1/13 (14)  1,285  1,337 
Montgomery Township NJ School District GO  5.250%  8/1/17 (14)  1,280  1,331 
Montgomery Township NJ School District GO  5.250%  8/1/18 (14)  910  943 
New Jersey Casino Reinvestment Development         
Authority Revenue (Hotel Room Fee)  5.250%  1/1/20 (2)  2,945  3,038 
New Jersey Casino Reinvestment Development         
Authority Revenue (Hotel Room Fee)  5.250%  1/1/21 (2)  6,255  6,385 
New Jersey Casino Reinvestment Development         
Authority Revenue (Hotel Room Fee)  5.250%  1/1/22 (2)  5,585  5,634 
New Jersey Casino Reinvestment Development         
Authority Revenue (Parking Fee)  5.250%  6/1/21 (14)  3,000  3,070 
New Jersey Economic Development Authority         
Revenue (Cigarette Tax)  5.750%  6/15/29  19,500  18,602 
New Jersey Economic Development Authority         
Revenue (Cooper Health System Project) VRDO  0.250%  12/7/10 LOC  5,000  5,000 
New Jersey Economic Development Authority         
Revenue (El Dorado Terminals Co. Project) VRDO  0.670%  12/1/10 LOC  6,300  6,300 
New Jersey Economic Development         
Authority Revenue (Hillcrest Health         
Service System Project)  0.000%  1/1/12 (2)  2,500  2,384 
New Jersey Economic Development         
Authority Revenue (Hillcrest Health         
Service System Project)  0.000%  1/1/13 (2)  3,000  2,715 
New Jersey Economic Development Authority         
Revenue (Motor Vehicle Surcharges)  5.250%  7/1/24 (14)  6,000  6,403 
New Jersey Economic Development Authority         
Revenue (Motor Vehicle Surcharges)  5.250%  7/1/25 (14)  14,000  14,836 
New Jersey Economic Development Authority         
Revenue (Motor Vehicle Surcharges)  5.250%  7/1/26 (14)  2,500  2,628 
New Jersey Economic Development Authority         
Revenue (Motor Vehicle Surcharges)  5.250%  7/1/31 (14)  25,175  25,626 

 

32

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Economic Development Authority         
Revenue (Provident Group-Montclair Properties         
LLC - Montclair State University Student         
Housing Project)  5.375%  6/1/25  1,340  1,317 
New Jersey Economic Development Authority         
Revenue (Provident Group-Montclair Properties         
LLC - Montclair State University Student         
Housing Project)  5.750%  6/1/31  1,000  995 
New Jersey Economic Development Authority         
Revenue (Provident Group-Montclair Properties         
LLC - Montclair State University Student         
Housing Project)  5.875%  6/1/42  8,000  7,949 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.500%  6/15/13 (2)(ETM)  1,200  1,342 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  9/1/13 (Prere.)  4,000  4,458 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  9/1/13  7,500  8,205 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  12/15/13  14,000  15,436 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  9/1/14  10,000  11,107 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  12/15/14  14,000  15,633 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  12/15/16  10,255  11,682 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  12/15/17  5,000  5,675 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  3/1/18  2,650  2,945 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.500%  9/1/18 (14)  10,285  11,821 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  12/15/18  5,000  5,648 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  12/15/19  2,000  2,239 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.500%  12/15/19 (2)  1,550  1,771 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.250%  3/1/26  9,500  9,866 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.125%  3/1/28  8,000  8,217 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.500%  9/1/29 (14)  7,055  7,552 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.500%  12/15/29  11,520  12,423 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.125%  3/1/30 (10)  1,000  1,030 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.125%  3/1/30  12,000  12,258 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  9/1/30  4,065  4,219 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  9/1/30 (14)  5,480  5,556 

 

33

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  12/15/31  7,105  7,350 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  12/15/32  1,000  1,030 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  9/1/33  7,825  7,991 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  9/1/34  8,000  8,159 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  9/1/36  18,250  18,476 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction)  5.000%  9/1/37  22,150  22,452 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction) PUT  5.000%  9/1/14 (4)  12,500  13,842 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction) PUT  5.000%  9/1/14 (4)  8,000  8,859 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction) PUT  5.000%  9/1/15 (4)  5,000  5,604 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction) PUT  5.000%  9/1/15 (4)  31,625  35,448 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction) VRDO  3.260%  12/1/10 LOC  2,820  2,820 
New Jersey Economic Development Authority         
Revenue (School Facilities Construction) VRDO  3.270%  12/1/10 LOC  8,800  8,800 
New Jersey Economic Development Authority         
Revenue (St. Barnabas Project)  0.000%  7/1/11 (ETM)  4,650  4,633 
New Jersey Economic Development Authority         
Revenue (St. Barnabas Project)  0.000%  7/1/12 (14)  4,550  4,134 
New Jersey Economic Development Authority         
Revenue (St. Barnabas Project)  0.000%  7/1/13 (14)  4,500  3,840 
New Jersey Economic Development Authority         
Revenue (St. Barnabas Project)  0.000%  7/1/14 (14)  4,210  3,367 
New Jersey Economic Development Authority         
Revenue (Trustees of the Lawrenceville         
School Project) VRDO  2.832%  12/1/10  5,100  5,100 
New Jersey Economic Development Authority         
Transportation Project Sublease Revenue         
(New Jersey Transit Corp. Light Rail Transit         
System Project)  5.000%  5/1/14  15,000  16,442 
New Jersey Economic Development Authority         
Transportation Project Sublease Revenue         
(New Jersey Transit Corp. Light Rail Transit         
System Project)  5.000%  5/1/18  5,965  6,720 
New Jersey Economic Development Authority         
Transportation Project Sublease Revenue         
(New Jersey Transit Corp. Light Rail Transit         
System Project)  5.000%  5/1/19  2,580  2,892 
New Jersey Educational Facilities Authority         
Revenue (College of New Jersey)  5.000%  7/1/14 (4)  3,180  3,549 
New Jersey Educational Facilities Authority         
Revenue (College of New Jersey)  5.000%  7/1/16 (4)  4,410  5,038 
New Jersey Educational Facilities Authority         
Revenue (Drew University)  5.250%  7/1/20 (14)  2,060  2,326 

 

34

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Educational Facilities Authority         
Revenue (Drew University)  5.250%  7/1/21 (14)  1,550  1,737 
New Jersey Educational Facilities Authority         
Revenue (Fairleigh Dickinson University)  5.500%  7/1/23  2,750  2,776 
New Jersey Educational Facilities Authority         
Revenue (Georgian Court University)  5.000%  7/1/33  1,000  928 
New Jersey Educational Facilities Authority         
Revenue (Higher Education Trust Fund)  5.750%  9/1/12  7,595  8,228 
New Jersey Educational Facilities Authority         
Revenue (Higher Education Trust Fund)  5.000%  9/1/19 (4)  5,000  5,391 
New Jersey Educational Facilities Authority         
Revenue (Higher Education Trust Fund)  5.000%  9/1/20 (4)  5,015  5,330 
New Jersey Educational Facilities Authority         
Revenue (Kean University)  5.250%  7/1/13 (Prere.)  2,605  2,895 
New Jersey Educational Facilities Authority         
Revenue (Kean University)  5.250%  7/1/13 (Prere.)  2,775  3,084 
New Jersey Educational Facilities Authority         
Revenue (Kean University)  5.000%  7/1/20 (14)  2,585  2,789 
New Jersey Educational Facilities Authority         
Revenue (Kean University)  5.000%  7/1/21 (14)  3,025  3,217 
New Jersey Educational Facilities Authority         
Revenue (Kean University)  5.250%  9/1/29  2,500  2,587 
New Jersey Educational Facilities Authority         
Revenue (Kean University)  5.500%  9/1/36  5,000  5,226 
New Jersey Educational Facilities Authority         
Revenue (Montclair State University)  5.000%  7/1/15 (Prere.)  4,700  5,442 
New Jersey Educational Facilities Authority         
Revenue (Montclair State University)  5.000%  7/1/27 (2)  5,000  5,110 
New Jersey Educational Facilities Authority         
Revenue (New Jersey Institute of Technology)  5.250%  7/1/11 (Prere.)  1,725  1,774 
New Jersey Educational Facilities Authority         
Revenue (New Jersey Institute of Technology)  5.250%  7/1/11 (Prere.)  1,000  1,029 
New Jersey Educational Facilities Authority         
Revenue (New Jersey Institute of Technology)  5.250%  7/1/11 (Prere.)  1,470  1,512 
New Jersey Educational Facilities Authority         
Revenue (New Jersey Institute of Technology)  5.000%  7/1/20  2,725  3,004 
New Jersey Educational Facilities Authority         
Revenue (New Jersey Institute of Technology)  5.000%  7/1/21  2,635  2,858 
New Jersey Educational Facilities Authority         
Revenue (New Jersey Institute of Technology)  5.000%  7/1/31  1,000  1,012 
New Jersey Educational Facilities Authority         
Revenue (Princeton University)  5.000%  7/1/20  6,020  7,039 
New Jersey Educational Facilities Authority         
Revenue (Princeton University)  4.500%  7/1/35  9,900  9,944 
New Jersey Educational Facilities Authority         
Revenue (Princeton University)  4.500%  7/1/37  5,000  5,020 
New Jersey Educational Facilities Authority         
Revenue (Ramapo College)  5.000%  7/1/12 (Prere.)  1,010  1,081 
New Jersey Educational Facilities Authority         
Revenue (Ramapo College)  5.000%  7/1/12 (Prere.)  1,700  1,819 
New Jersey Educational Facilities Authority         
Revenue (Ramapo College)  5.000%  7/1/15 (14)  1,550  1,618 
New Jersey Educational Facilities Authority         
Revenue (Ramapo College)  5.000%  7/1/16 (Prere.)  4,000  4,705 

 

35

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Educational Facilities Authority         
Revenue (Richard Stockton College)  5.375%  7/1/38  5,000  5,136 
New Jersey Educational Facilities Authority         
Revenue (Rowan University)  5.250%  7/1/11 (Prere.)  235  244 
New Jersey Educational Facilities Authority         
Revenue (Rowan University)  5.250%  7/1/11 (Prere.)  190  197 
New Jersey Educational Facilities Authority         
Revenue (Rowan University)  5.250%  7/1/11 (Prere.)  205  213 
New Jersey Educational Facilities Authority         
Revenue (Rowan University)  5.125%  7/1/13 (Prere.)  2,800  3,103 
New Jersey Educational Facilities Authority         
Revenue (Rowan University)  5.250%  7/1/14 (14)  2,070  2,140 
New Jersey Educational Facilities Authority         
Revenue (Rowan University)  5.250%  7/1/15 (14)  1,690  1,746 
New Jersey Educational Facilities Authority         
Revenue (Rowan University)  5.250%  7/1/16 (14)  1,845  1,906 
New Jersey Educational Facilities Authority         
Revenue (Rowan University)  5.000%  7/1/24 (14)  2,200  2,285 
New Jersey Educational Facilities Authority         
Revenue (Seton Hall University)  5.250%  7/1/12 (2)  1,275  1,279 
New Jersey Educational Facilities Authority         
Revenue (Seton Hall University)  5.250%  7/1/15 (2)  400  409 
New Jersey Educational Facilities Authority         
Revenue (Seton Hall University)  5.250%  7/1/16 (2)  200  204 
New Jersey Educational Facilities Authority         
Revenue (Stevens Institute of Technology)  5.125%  7/1/13 (Prere.)  6,000  6,650 
New Jersey Educational Facilities Authority         
Revenue (Stevens Institute of Technology)  5.250%  7/1/13 (Prere.)  6,000  6,669 
New Jersey Educational Facilities Authority         
Revenue (University Medical & Dentistry)  7.500%  12/1/32  7,250  8,151 
New Jersey Equipment Lease Purchase COP  5.000%  6/15/11  6,590  6,736 
New Jersey Equipment Lease Purchase COP  5.000%  6/15/13  5,000  5,382 
New Jersey Equipment Lease Purchase COP  5.000%  6/15/16  4,000  4,455 
New Jersey Equipment Lease Purchase COP  5.000%  6/15/17  3,000  3,334 
New Jersey Equipment Lease Purchase COP  5.000%  6/15/18  9,000  9,931 
New Jersey Equipment Lease Purchase COP  5.000%  6/15/19  9,755  10,628 
New Jersey Equipment Lease Purchase COP  5.000%  6/15/20  1,500  1,613 
New Jersey Equipment Lease Purchase COP  5.000%  6/15/23  1,000  1,047 
New Jersey GO  5.000%  8/1/16  5,190  6,014 
New Jersey GO  5.000%  8/1/17  9,035  10,502 
New Jersey GO  5.250%  7/15/18 (2)  4,000  4,709 
New Jersey GO  5.500%  7/15/18 (14)  1,000  1,192 
New Jersey GO  5.000%  8/15/19  5,000  5,773 
New Jersey GO  5.000%  6/1/20  915  1,037 
New Jersey GO  5.000%  6/1/21  6,835  7,635 
New Jersey Health Care Facilities Financing         
Authority Revenue (AHS Hospital Corp.)  5.000%  7/1/13  7,330  7,826 
New Jersey Health Care Facilities Financing         
Authority Revenue (AHS Hospital Corp.)  5.000%  7/1/14  7,695  8,337 
New Jersey Health Care Facilities Financing         
Authority Revenue (AHS Hospital Corp.)  5.000%  7/1/15  5,000  5,452 
New Jersey Health Care Facilities Financing         
Authority Revenue (AHS Hospital Corp.)  5.000%  7/1/18  4,095  4,419 

 

36

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Health Care Facilities Financing         
Authority Revenue (Atlantic City Medical Center)  5.750%  7/1/12 (Prere.)  2,220  2,394 
New Jersey Health Care Facilities Financing         
Authority Revenue (Atlantic City Medical Center)  6.250%  7/1/12 (Prere.)  1,750  1,901 
New Jersey Health Care Facilities Financing         
Authority Revenue (Atlantic City Medical Center)  6.250%  7/1/17  2,200  2,305 
New Jersey Health Care Facilities Financing         
Authority Revenue (Atlantic City Medical Center)  5.750%  7/1/25  2,780  2,836 
New Jersey Health Care Facilities Financing         
Authority Revenue (Atlanticare Regional         
Medical Center)  5.000%  7/1/23  2,675  2,764 
New Jersey Health Care Facilities Financing         
Authority Revenue (Atlanticare Regional         
Medical Center)  5.000%  7/1/26  2,880  2,905 
New Jersey Health Care Facilities Financing         
Authority Revenue (Atlanticare Regional         
Medical Center)  5.000%  7/1/37  10,000  9,784 
New Jersey Health Care Facilities Financing         
Authority Revenue (Capital Health Systems         
Obligated Group)  5.750%  7/1/13 (Prere.)  7,000  7,784 
New Jersey Health Care Facilities Financing         
Authority Revenue         
(Children’s Specialized Hospital)  5.000%  7/1/24  800  766 
New Jersey Health Care Facilities Financing         
Authority Revenue (Children’s         
Specialized Hospital)  5.500%  7/1/30  3,055  2,997 
New Jersey Health Care Facilities Financing         
Authority Revenue (Children’s         
Specialized Hospital)  5.500%  7/1/36  6,800  6,451 
New Jersey Health Care Facilities Financing         
Authority Revenue (Community Medical         
Center/Kimball Medical Center/Kensington         
Manor Care Center)  5.250%  7/1/12 (4)  105  105 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hackensack University         
Medical Center)  5.000%  1/1/17  1,250  1,348 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hackensack University         
Medical Center)  5.000%  1/1/20  3,000  3,138 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hackensack University         
Medical Center)  5.125%  1/1/21  15,000  15,581 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hackensack University         
Medical Center)  5.000%  1/1/22  3,500  3,556 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hackensack University         
Medical Center)  5.000%  1/1/28  3,500  3,375 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hackensack University         
Medical Center)  5.000%  1/1/34  2,000  1,880 
New Jersey Health Care Facilities Financing         
Authority Revenue (Holy Name Hospital)  5.250%  7/1/30  4,000  3,816 

 

37

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hospital Asset         
Transformation Program)  5.000%  10/1/13  3,785  4,119 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hospital Asset         
Transformation Program)  5.500%  10/1/23  10,000  10,505 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hospital Asset         
Transformation Program)  5.750%  10/1/31  1,500  1,577 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hunterdon Medical Center)  5.250%  7/1/25  1,200  1,207 
New Jersey Health Care Facilities Financing         
Authority Revenue (Hunterdon Medical Center)  5.125%  7/1/35  3,450  3,254 
New Jersey Health Care Facilities Financing         
Authority Revenue (Meridian Health System         
Obligated Group)  5.625%  7/1/13 (4)  7,255  7,276 
New Jersey Health Care Facilities Financing         
Authority Revenue (Meridian Health System         
Obligated Group)  5.250%  7/1/29 (4)  13,150  13,152 
New Jersey Health Care Facilities Financing         
Authority Revenue (Meridian Health Systems)  5.000%  7/1/38 (12)  4,390  4,406 
New Jersey Health Care Facilities Financing         
Authority Revenue (Robert Wood         
Johnson University)  5.000%  7/1/31  5,000  4,930 
New Jersey Health Care Facilities Financing         
Authority Revenue (South Jersey Hospital)  5.875%  7/1/12 (Prere.)  3,500  3,792 
New Jersey Health Care Facilities Financing         
Authority Revenue (South Jersey Hospital)  6.000%  7/1/12 (Prere.)  3,500  3,799 
New Jersey Health Care Facilities Financing         
Authority Revenue (South Jersey Hospital)  6.000%  7/1/12 (Prere.)  3,000  3,256 
New Jersey Health Care Facilities Financing         
Authority Revenue (South Jersey Hospital)  5.000%  7/1/36  14,250  13,693 
New Jersey Health Care Facilities Financing         
Authority Revenue (South Jersey Hospital)  5.000%  7/1/46  7,505  7,042 
New Jersey Health Care Facilities Financing         
Authority Revenue (St. Barnabas Health         
Care System)  5.250%  7/1/13 (14)  2,695  2,698 
New Jersey Health Care Facilities Financing         
Authority Revenue (St. Barnabas Health         
Care System)  5.250%  7/1/16 (14)  2,340  2,341 
New Jersey Health Care Facilities Financing         
Authority Revenue (St. Barnabas Health         
Care System)  0.000%  7/1/21 (ETM)  1,260  873 
New Jersey Health Care Facilities Financing         
Authority Revenue (St. Barnabas Health         
Care System)  0.000%  7/1/21 (14)  1,740  837 
New Jersey Health Care Facilities Financing         
Authority Revenue (St. Barnabas Health         
Care System)  5.000%  7/1/29  4,375  3,681 
New Jersey Health Care Facilities Financing         
Authority Revenue (Virtua Health)  5.250%  7/1/14 (4)  11,000  11,026 
New Jersey Health Care Facilities Financing         
Authority Revenue (Virtua Health)  6.000%  7/1/29 (12)  1,000  1,042 

 

38

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Health Care Facilities Financing         
Authority Revenue (Virtua Health)  5.750%  7/1/33  3,000  3,115 
New Jersey Health Care Facilities Financing         
Authority Revenue (Virtua Health)  5.500%  7/1/38 (12)  3,000  3,153 
New Jersey Health Care Facilities Financing         
Authority Revenue (Virtua Health) VRDO  0.260%  12/1/10 LOC  11,050  11,050 
New Jersey Health Care Facilities Financing         
Authority Revenue (Virtua Health) VRDO  0.310%  12/1/10 LOC  11,350  11,350 
New Jersey Higher Education Assistance         
Authority Student Loan Revenue  4.750%  12/1/21  5,000  5,095 
New Jersey Higher Education Assistance         
Authority Student Loan Revenue  5.000%  12/1/25  1,500  1,497 
New Jersey Higher Education Assistance         
Authority Student Loan Revenue  5.000%  12/1/26  1,500  1,492 
New Jersey Higher Education Assistance         
Authority Student Loan Revenue  5.000%  6/1/27  6,280  6,467 
New Jersey Higher Education Assistance         
Authority Student Loan Revenue  4.500%  12/1/29  3,000  3,028 
New Jersey Higher Education Assistance         
Authority Student Loan Revenue  4.750%  12/1/29  6,000  6,025 
New Jersey Higher Education Assistance         
Authority Student Loan Revenue  5.625%  6/1/30  5,000  5,183 
New Jersey Housing & Mortgage Finance         
Agency Multi-Family Housing Revenue  5.700%  5/1/20 (4)  2,040  2,042 
New Jersey Housing & Mortgage Finance         
Agency Single Family Housing Revenue  6.500%  10/1/38  3,370  3,636 
New Jersey Sports & Exposition         
Authority Revenue  6.500%  3/1/13 (14)(ETM)  875  936 
New Jersey Sports & Exposition         
Authority Revenue  6.500%  3/1/13 (14)  775  826 
New Jersey Sports & Exposition         
Authority Revenue  5.500%  3/1/17 (14)(ETM)  250  304 
New Jersey Sports & Exposition         
Authority Revenue  5.500%  3/1/17 (14)  5,505  6,329 
New Jersey Sports & Exposition Authority         
Revenue (Convention Center Luxury Tax)  5.500%  3/1/21 (14)  3,000  3,257 
New Jersey Sports & Exposition Authority         
Revenue (Convention Center Luxury Tax)  5.500%  3/1/22 (14)  1,000  1,071 
New Jersey Transportation Corp. COP  5.500%  9/15/11 (2)  5,000  5,158 
New Jersey Transportation Corp. COP  5.500%  9/15/12 (2)  20,000  21,297 
New Jersey Transportation Corp. COP  5.500%  9/15/14 (2)  1,500  1,659 
New Jersey Transportation Corp. COP  5.500%  9/15/15 (2)  15,000  16,818 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/12 (14)  1,000  1,081 
1 New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.500%  6/15/13 (Prere.)  7,000  7,834 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.500%  12/15/14 (2)  10,000  11,281 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  6/15/15 (14)(ETM)  5,000  5,874 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/15 (2)  1,000  1,134 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.500%  12/15/15 (2)  4,600  5,263 

 

39

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.000%  12/15/17  14,810  16,708 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.000%  12/15/17  8,480  9,567 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.000%  12/15/17  2,500  2,820 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.500%  12/15/17 (4)  1,775  2,072 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.000%  12/15/18  2,000  2,235 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.500%  12/15/18 (4)  5,000  5,848 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/19  22,675  25,314 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/19  7,500  8,373 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/19 (4)  8,000  9,043 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.750%  6/15/20  5,000  5,742 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/20 (4)  5,000  5,581 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/20  9,000  9,950 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/20 (4)  5,800  6,473 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.500%  12/15/20 (14)  7,000  7,870 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.500%  12/15/21  8,000  8,952 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/22  2,500  2,727 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.500%  12/15/22  8,875  9,878 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.750%  6/15/23 (14)  5,750  6,487 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/23  8,900  4,522 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.250%  12/15/23 (2)  4,830  5,235 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.750%  6/15/24 (14)  4,900  5,500 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.000%  12/15/24  5,000  5,258 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.750%  6/15/25 (14)  7,000  7,823 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/25  10,800  4,747 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/25  8,000  3,517 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/26  11,585  4,732 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/28  8,855  3,134 

 

40

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/28  18,000  6,372 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/29  25,360  8,366 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/30  10,000  3,058 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/31  18,500  5,225 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/32  10,000  2,631 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/32  6,420  1,689 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.000%  12/15/32 (2)  22,085  22,412 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/33  3,000  735 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/33  10,000  2,449 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/34  8,210  1,865 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/34  5,000  1,136 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/35  6,000  1,272 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/36  11,675  2,304 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/37  4,365  805 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/38  10,000  1,723 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/38  15,000  2,592 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  5.500%  12/15/38 (12)  6,900  7,404 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  6.000%  12/15/38  5,000  5,494 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/39  15,150  2,438 
New Jersey Transportation Trust Fund Authority         
Transportation System Revenue  0.000%  12/15/40  14,500  2,185 
New Jersey Turnpike Authority Revenue  6.000%  1/1/13 (14)(ETM)  770  854 
New Jersey Turnpike Authority Revenue  6.000%  1/1/13 (14)  230  252 
New Jersey Turnpike Authority Revenue  6.500%  1/1/13 (ETM)  20,000  22,394 
New Jersey Turnpike Authority Revenue  6.500%  1/1/16 (ETM)  22,095  25,150 
New Jersey Turnpike Authority Revenue  6.500%  1/1/16 (ETM)  1,560  1,933 
New Jersey Turnpike Authority Revenue  6.500%  1/1/16 (14)  19,535  23,389 
New Jersey Turnpike Authority Revenue  5.000%  1/1/20  5,000  5,543 
New Jersey Turnpike Authority Revenue  5.000%  1/1/21  5,000  5,454 
New Jersey Turnpike Authority Revenue  5.000%  1/1/22  3,325  3,581 
New Jersey Turnpike Authority Revenue  5.250%  1/1/26 (4)  4,000  4,447 
New Jersey Turnpike Authority Revenue  5.000%  1/1/30 (4)  18,500  19,071 
New Jersey Turnpike Authority Revenue  5.000%  1/1/35 (4)  10,000  10,166 
New Jersey Turnpike Authority Revenue  5.000%  1/1/36  13,500  13,670 
New Jersey Turnpike Authority Revenue  5.250%  1/1/40  39,385  40,639 

 

41

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
2 New Jersey Turnpike Authority Revenue         
TOB VRDO  0.330%  12/7/10 LOC  8,590  8,590 
Newark NJ GO  5.375%  12/15/13 (14)  2,000  2,158 
Ocean County NJ Utility Authority         
Wastewater Revenue  5.250%  1/1/17  2,665  2,781 
Ocean County NJ Utility Authority         
Wastewater Revenue  5.250%  1/1/18  2,220  2,310 
Ocean County NJ Utility Authority         
Wastewater Revenue  6.600%  1/1/18 (ETM)  2,500  2,990 
Passaic Valley NJ Sewer Commissioners         
Sewer System Revenue  5.750%  12/1/19  1,680  1,894 
Passaic Valley NJ Sewer Commissioners         
Sewer System Revenue  5.750%  12/1/20  1,450  1,623 
Passaic Valley NJ Sewer Commissioners         
Sewer System Revenue  5.750%  12/1/21  3,500  3,907 
Port Authority of New York & New Jersey CP  5.375%  3/1/28  1,100  1,232 
Port Authority of New York &         
New Jersey Revenue  4.500%  7/15/28  9,000  9,086 
Port Authority of New York &         
New Jersey Revenue  5.000%  3/1/29  4,500  4,729 
Port Authority of New York &         
New Jersey Revenue  5.000%  7/15/31  3,395  3,545 
Port Authority of New York &         
New Jersey Revenue  5.000%  7/15/32  3,500  3,638 
Port Authority of New York &         
New Jersey Revenue  4.750%  11/15/32  4,000  4,038 
Port Authority of New York &         
New Jersey Revenue  4.750%  7/15/33  8,000  8,040 
Port Authority of New York &         
New Jersey Revenue  5.000%  7/15/33  10,000  10,199 
Port Authority of New York &         
New Jersey Revenue  5.000%  7/15/34 (14)  7,095  7,233 
Port Authority of New York &         
New Jersey Revenue  5.000%  7/15/35  3,500  3,605 
Port Authority of New York &         
New Jersey Revenue  5.000%  11/15/37  10,000  10,212 
Port Authority of New York &         
New Jersey Revenue  5.000%  9/1/38  5,000  5,033 
Port Authority of New York &         
New Jersey Revenue  5.000%  5/1/39  6,600  6,755 
Port Authority of New York &         
New Jersey Revenue  5.000%  7/15/39  12,000  12,313 
Port Authority of New York &         
New Jersey Revenue  4.250%  7/15/40  2,250  2,075 
Rahway Valley NJ Sewerage Authority         
Sewer Revenue  0.000%  9/1/31 (14)  4,215  1,300 
Rutgers State University New Jersey Revenue  6.400%  5/1/13  1,640  1,747 
Rutgers State University New Jersey Revenue  5.000%  5/1/29  1,110  1,178 
South Jersey Port Corp. New Jersey Revenue  5.000%  1/1/23  2,000  2,034 
South Jersey Port Corp. New Jersey Revenue  5.100%  1/1/33  1,500  1,502 
Stafford NJ Municipal Utility Authority         
Water & Sewer Revenue  5.500%  6/1/11 (14)  750  763 
Tobacco Settlement Financing Corp.         
New Jersey Revenue  6.000%  6/1/12 (Prere.)  16,650  18,002 

 

42

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
Tobacco Settlement Financing Corp.         
New Jersey Revenue  5.000%  6/1/13  1,225  1,261 
Tobacco Settlement Financing Corp.         
New Jersey Revenue  7.000%  6/1/13 (Prere.)  20,000  23,070 
Tobacco Settlement Financing Corp.         
New Jersey Revenue  4.500%  6/1/23  21,755  19,443 
Tobacco Settlement Financing Corp.         
New Jersey Revenue  4.625%  6/1/26  17,735  14,293 
Tobacco Settlement Financing Corp.         
New Jersey Revenue  5.000%  6/1/29  10,000  7,838 
Tobacco Settlement Financing Corp.         
New Jersey Revenue  5.750%  6/1/32 (Prere.)  34,260  36,236 
Tobacco Settlement Financing Corp.         
New Jersey Revenue  4.750%  6/1/34  9,000  6,006 
Tobacco Settlement Financing Corp.         
New Jersey Revenue  5.000%  6/1/41  13,850  8,857 
University of Medicine & Dentistry         
New Jersey COP  5.250%  6/15/18 (14)  1,975  2,076 
University of Medicine & Dentistry         
New Jersey COP  5.250%  6/15/20 (14)  2,185  2,258 
University of Medicine & Dentistry         
New Jersey COP  5.250%  6/15/22 (14)  2,420  2,469 
University of Medicine & Dentistry         
New Jersey Revenue  6.500%  12/1/12 (14)(ETM)   1,755  1,854 
University of Medicine & Dentistry         
New Jersey Revenue  5.375%  12/1/15 (2)  2,325  2,439 
University of Medicine & Dentistry         
New Jersey Revenue  5.375%  12/1/16 (2)  1,110  1,158 
University of Medicine & Dentistry         
New Jersey Revenue  5.500%  12/1/19 (2)  2,000  2,058 
University of Medicine & Dentistry         
New Jersey Revenue  5.500%  12/1/20 (2)  3,675  3,762 
University of Medicine & Dentistry         
New Jersey Revenue  5.500%  12/1/21 (2)  2,000  2,043 
        2,016,754 
Puerto Rico (1.1%)         
Puerto Rico GO  5.500%  7/1/18  5,540  5,940 
Puerto Rico Highway & Transportation         
Authority Revenue  5.500%  7/1/14 (Prere.)  3,500  4,021 
Puerto Rico Highway & Transportation         
Authority Revenue  5.500%  7/1/14 (Prere.)  4,125  4,740 
Puerto Rico Infrastructure Financing         
Authority Special Tax Revenue  0.000%  7/1/33 (3)  7,000  1,586 
Puerto Rico Public Finance Corp. Revenue  5.500%  2/1/12 (Prere.)  3,250  3,431 
Puerto Rico Public Finance Corp. Revenue  5.500%  2/1/12 (Prere.)  1,135  1,198 
Puerto Rico Public Finance Corp. Revenue  6.000%  8/1/26 (ETM)  720  919 
        21,835 
Virgin Islands (0.2%)         
Virgin Islands Public Finance Authority Revenue  5.250%  10/1/18  3,390  3,585 
Virgin Islands Public Finance Authority Revenue  5.000%  10/1/25  1,500  1,491 
        5,076 

 

43

 

New Jersey Long-Term Tax-Exempt Fund         
 
 
      Face  Market 
    Maturity  Amount  Value  
  Coupon  Date  ($000)  ($000) 
Guam (0.2%)         
Guam Government Limited Obligation         
Infrastructure Improvement Revenue  5.125%  11/1/11 (2)  3,400  3,382 
Total Tax-Exempt Municipal Bonds (Cost $1,994,340)      2,047,047 
Other Assets and Liabilities (1.5%)         
Other Assets        38,515 
Liabilities        (6,785) 
        31,730 
Net Assets (100%)        2,078,777 
 
 
At November 30, 2010, net assets consisted of:         
        Amount 
        ($000) 
Paid-in Capital        2,057,826 
Undistributed Net Investment Income        — 
Accumulated Net Realized Losses        (31,751) 
Unrealized Appreciation (Depreciation)         
Investment Securities        52,707 
Futures Contracts        (5) 
Net Assets        2,078,777 
 
Investor Shares—Net Assets         
Applicable to 31,168,792 outstanding $.001 par value shares of       
beneficial interest (unlimited authorization)        360,966 
Net Asset Value Per Share—Investor Shares        $11.58 
 
Admiral Shares—Net Assets         
Applicable to 148,329,013 outstanding $.001 par value shares of       
beneficial interest (unlimited authorization)        1,717,811 
Net Asset Value Per Share—Admiral Shares        $11.58 

 

See Note A in Notes to Financial Statements.
1 Securities with a value of $1,679,000 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, 2010, the value of this security represented 0.4% of net assets.
A key to abbreviations and other references follows the Statement of Net Assets.
See accompanying Notes, which are an integral part of the Financial Statements.

44

 

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.
VRDP—Variable Rate Demand Preferred.
(ETM)—Escrowed to Maturity.
(Prere.)—Prerefunded.

Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Investors Assurance).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) AGM (Assured Guaranty Municipal Corporation).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty).
(12) Assured Guaranty Corp.
(13) Berkshire Hathaway Assurance Corp.
(14) National Public Finance Guarantee 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.

45

 

New Jersey Long-Term Tax-Exempt Fund   
 
 
Statement of Operations   
 
  Year Ended 
  November 30, 2010 
  ($000) 
Investment Income   
Income   
Interest  89,501 
Total Income  89,501 
Expenses   
The Vanguard Group—Note B   
   Investment Advisory Services  188 
   Management and Administrative—Investor Shares  751 
   Management and Administrative—Admiral Shares  1,455 
   Marketing and Distribution—Investor Shares  136 
   Marketing and Distribution—Admiral Shares  343 
Custodian Fees  16 
Auditing Fees  27 
Shareholders’ Reports—Investor Shares  12 
Shareholders’ Reports—Admiral Shares  3 
Trustees’ Fees and Expenses  3 
Total Expenses  2,934 
Net Investment Income  86,567 
Realized Net Gain (Loss)   
Investment Securities Sold  6,204 
Futures Contracts  (2,314) 
Realized Net Gain (Loss)  3,890 
Change in Unrealized Appreciation (Depreciation)   
Investment Securities  (14,811) 
Futures Contracts  91 
Change in Unrealized Appreciation (Depreciation)  (14,720) 
Net Increase (Decrease) in Net Assets Resulting from Operations  75,737 

 

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

46

 

New Jersey Long-Term Tax-Exempt Fund     
 
 
Statement of Changes in Net Assets     
 
  Year Ended November 30, 
  2010  2009 
  ($000)  ($000) 
Increase (Decrease) in Net Assets     
Operations     
Net Investment Income  86,567  81,997 
Realized Net Gain (Loss)  3,890  (13,198) 
Change in Unrealized Appreciation (Depreciation)  (14,720)  149,647 
Net Increase (Decrease) in Net Assets Resulting from Operations  75,737  218,446 
Distributions     
Net Investment Income     
   Investor Shares  (19,150)  (18,900) 
   Admiral Shares  (67,417)  (63,097) 
Realized Capital Gain     
   Investor Shares  —  — 
   Admiral Shares  —  — 
Total Distributions  (86,567)  (81,997) 
Capital Share Transactions     
   Investor Shares  (111,846)  31,130 
   Admiral Shares  168,493  80,448 
Net Increase (Decrease) from Capital Share Transactions  56,647  111,578 
Total Increase (Decrease)  45,817  248,027 
Net Assets     
Beginning of Period  2,032,960  1,784,933 
End of Period  2,078,777  2,032,960 

 

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

47

 

New Jersey Long-Term Tax-Exempt Fund           
 
 
Financial Highlights           
 
Investor Shares           
 
For a Share Outstanding      Year Ended November 30, 
Throughout Each Period  2010  2009  2008  2007  2006 
Net Asset Value, Beginning of Period  $11.64  $10.82  $11.71  $12.03  $11.82 
Investment Operations           
Net Investment Income  .476  .477  .494  .511  .520 
Net Realized and Unrealized Gain (Loss)           
on Investments  (.060)  .820  (.890)  (.276)  .282 
Total from Investment Operations  .416  1.297  (.396)  .235  .802 
Distributions           
Dividends from Net Investment Income  (.476)  (.477)  (.494)  (.511)  (.520) 
Distributions from Realized Capital Gains  —  —  —  (.044)  (.072) 
Total Distributions  (.476)  (.477)  (.494)  (.555)  (.592) 
Net Asset Value, End of Period  $11.58  $11.64  $10.82  $11.71  $12.03 
 
Total Return1  3.59%  12.19%  -3.49%  2.04%  7.01% 
 
Ratios/Supplemental Data           
Net Assets, End of Period (Millions)  $361  $473  $410  $426  $432 
Ratio of Total Expenses to           
Average Net Assets  0.20%  0.20%  0.15%  0.15%  0.16% 
Ratio of Net Investment Income to           
Average Net Assets  4.06%  4.22%  4.32%  4.35%  4.42% 
Portfolio Turnover Rate  17%  22%  37%  14%  15% 

 

1 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.

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

48

 

New Jersey Long-Term Tax-Exempt Fund           
 
 
Financial Highlights           
 
Admiral Shares           
 
For a Share Outstanding      Year Ended November 30, 
Throughout Each Period  2010  2009  2008  2007  2006 
Net Asset Value, Beginning of Period  $11.64  $10.82  $11.71  $12.03  $11.82 
Investment Operations           
Net Investment Income  .485  .487  .502  .519  .529 
Net Realized and Unrealized Gain (Loss)           
on Investments  (.060)  .820  (.890)  (.276)  .282 
Total from Investment Operations  .425  1.307  (.388)  .243  .811 
Distributions           
Dividends from Net Investment Income  (.485)  (.487)  (.502)  (.519)  (.529) 
Distributions from Realized Capital Gains  —  —  —  (.044)  (.072) 
Total Distributions  (.485)  (.487)  (.502)  (.563)  (.601) 
Net Asset Value, End of Period  $11.58  $11.64  $10.82  $11.71  $12.03 
 
Total Return  3.68%  12.28%  -3.42%  2.11%  7.09% 
 
Ratios/Supplemental Data           
Net Assets, End of Period (Millions)  $1,718  $1,560  $1,375  $1,402  $1,286 
Ratio of Total Expenses to           
Average Net Assets  0.12%  0.12%  0.08%  0.08%  0.09% 
Ratio of Net Investment Income to           
Average Net Assets  4.14%  4.30%  4.39%  4.42%  4.49% 
Portfolio Turnover Rate  17%  22%  37%  14%  15% 

 

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

49

 

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. 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, and account-size criteria.

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

1. Security Valuation: Bonds, and temporary cash investments acquired over 60 days to maturity, are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value.

2. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market.

Futures contracts are valued based upon their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (November 30, 2007–2010), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

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

5. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

50

 

New Jersey Long-Term Tax-Exempt Fund

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At November 30, 2010, the fund had contributed capital of $380,000 to Vanguard (included in Other Assets), representing 0.02% 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. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).

The following table summarizes the fund’s investments as of November 30, 2010, based on the inputs used to value them:

  Level 1  Level 2  Level 3 
Investments  ($000)  ($000)  ($000) 
Tax-Exempt Municipal Bonds  —  2,047,047  — 
Futures Contracts—Assets1  92  —  — 
Total  92  2,047,047  — 
1 Represents variation margin on the last day of the reporting period.       

 

D. At November 30, 2010, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:

        ($000) 
      Aggregate   
    Number of  Settlement  Unrealized 
    Long (Short)  Value  Appreciation 
Futures Contracts  Expiration  Contracts  Long (Short)  (Depreciation) 
2-Year United States Treasury Note  March 2011  142  31,151  (5) 

 

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

51

 

New Jersey Long-Term Tax-Exempt Fund

E. 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, 2010, the fund had available capital loss carryforwards totaling $28,917,000 to offset future net capital gains of $18,584,000 through November 30, 2016, and $10,333,000 through November 30, 2017.

The fund had realized losses totaling $2,840,000 through November 30, 2010, which are deferred for tax purposes and reduce the amount of tax-basis unrealized appreciation on investment securities.

At November 30, 2010, the cost of investment securities for tax purposes was $1,997,180,000. Net unrealized appreciation of investment securities for tax purposes was $49,867,000, consisting of unrealized gains of $70,993,000 on securities that had risen in value since their purchase and $21,126,000 in unrealized losses on securities that had fallen in value since their purchase.

F. During the year ended November 30, 2010, the fund purchased $419,913,000 of investment securities and sold $341,057,000 of investment securities, other than temporary cash investments.

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

      Year Ended November 30, 
    2010      2009 
  Amount  Shares  Amount  Shares 
  ($000)  (000)  ($000)  (000) 
Investor Shares         
Issued  111,899  9,534  145,074  12,800 
Issued in Lieu of Cash Distributions  15,576  1,326  15,408  1,357 
Redeemed  (239,321)  (20,352)  (129,352)  (11,387) 
Net Increase (Decrease)—Investor Shares  (111,846)  (9,492)  31,130  2,770 
Admiral Shares         
Issued  367,783  31,315  274,585  24,228 
Issued in Lieu of Cash Distributions  50,014  4,259  46,279  4,075 
Redeemed  (249,304)  (21,301)  (240,416)  (21,346) 
Net Increase (Decrease)—Admiral Shares  168,493  14,273  80,448  6,957 

 

H. In preparing the financial statements as of November 30, 2010, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.

52

 

Report of Independent Registered Public Accounting Firm

To the Trustees of Vanguard New Jersey Tax-Free Funds and the 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 two separate portfolios of Vanguard New Jersey Tax-Free Funds, hereafter referred to as the “Funds”) at November 30, 2010, 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, 2010 by correspondence with the custodian and broker, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania

January 13, 2011

Special 2010 tax information (unaudited) for Vanguard New Jersey Tax-Exempt Funds 

 

This information for the fiscal year ended November 30, 2010, is included pursuant to provisions of the Internal Revenue Code.

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

53

 

About Your Fund’s Expenses

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The accompanying table illustrates your fund’s costs in two ways:

• Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During Period.“

• Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include the account service fee described in the prospectus. If such a fee were applied to your account, your costs would be higher. Your fund does not charge transaction fees, such as purchase or redemption fees, nor does it carry a “sales load.”

The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.

54

 

Six Months Ended November 30, 2010       
  Beginning  Ending  Expenses 
  Account Value  Account Value  Paid During 
  5/31/2010  11/30/2010  Period 
Based on Actual Fund Return       
New Jersey Tax-Exempt Money Market Fund  $1,000.00  $1,000.62  $0.85 
New Jersey Long-Term Tax-Exempt Fund       
   Investor Shares  $1,000.00  $1,006.28  $1.01 
   Admiral Shares  1,000.00  1,006.68  0.60 
Based on Hypothetical 5% Yearly Return       
New Jersey Tax-Exempt Money Market Fund  $1,000.00  $1,024.22  $0.86 
New Jersey Long-Term Tax-Exempt Fund       
   Investor Shares  $1,000.00  $1,024.07  $1.01 
   Admiral Shares  1,000.00  1,024.47  0.61 

 

The calculations are based on expenses incurred in the most recent six-month period. The funds’ annualized six-month expense ratios for that period are: for the New Jersey Tax-Exempt Money Market Fund, 0.17%; and for the New Jersey Long-Term Tax-Exempt Fund, 0.20% for Investor Shares and 0.12% 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.

55

 

Glossary

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

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 Weighted Maturity. The average length of time until fixed income securities held by a fund reach maturity and are repaid. The figure reflects the proportion of fund assets represented by each security.

Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12% when the index rose or fell by 10%. For this report, beta is based on returns over the past 36 months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared (see definition). The lower the R-squared, the less correlation there is between the fund and the index, and the less reliable beta is as an indicator of volatility.

56

 

Credit Quality. The credit ratings assigned to fixed income securities are an indicator of risk. They represent a rating agency’s assessment of the issuer’s ability to meet its obligations. For Vanguard tax-exempt money market funds, the Distribution by Credit Quality table was revised to include tier ratings for consistency with SEC Rule 2a-7 under the Investment Company Act of 1940, which governs money market funds. A First Tier security is a security that is eligible for money market funds and has received a short-term rating from the requisite nationally recognized statistical rating organizations in the highest short-term rating category for debt obligations. An unrated security is First Tier if it represents quality comparable to that of a rated security as determined in accordance with SEC Rule 2a-7. A Second Tier security is a security that is eligible for money market funds and is not a First Tier security. For Vanguard tax-exempt bond funds, credit-quality ratings for each issue are obtained from Moody’s Investors Service and Standard & Poor’s, and the higher rating for each issue is used.

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

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

R-Squared. A measure of how much of a fund’s past returns can be explained by the returns from the market in general, as measured by a given index. If a fund’s total returns were precisely synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based on returns over the past 36 months for both the fund and the index.

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

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

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The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.

A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 179 Vanguard funds.

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

Interested Trustee1  Amy Gutmann 
  Born 1949. Trustee Since June 2006. Principal 
F. William McNabb III  Occupation(s) During the Past Five Years: President 
Born 1957. Trustee Since July 2009. Chairman of the  of the University of Pennsylvania; Christopher H. 
Board. Principal Occupation(s) During the Past Five  Browne Distinguished Professor of Political Science 
Years: Chairman of the Board of The Vanguard Group,  in the School of Arts and Sciences with secondary 
Inc., and of each of the investment companies served  appointments at the Annenberg School for Commu- 
by The Vanguard Group, since January 2010; Director  nication and the Graduate School of Education 
of The Vanguard Group since 2008; Chief Executive  of the University of Pennsylvania; Director of 
Officer and President of The Vanguard Group and of  Carnegie Corporation of New York, Schuylkill River 
each of the investment companies served by The  Development Corporation, and Greater Philadelphia 
Vanguard Group since 2008; Director of Vanguard  Chamber of Commerce; Trustee of the National 
Marketing Corporation; Managing Director of The  Constitution Center; Chair of the Presidential 
Vanguard Group (1995–2008) .  Commission for the Study of Bioethical Issues. 
 
  JoAnn Heffernan Heisen 
Independent Trustees  Born 1950. Trustee Since July 1998. Principal 
  Occupation(s) During the Past Five Years: Corporate 
Emerson U. Fullwood  Vice President and Chief Global Diversity Officer 
Born 1948. Trustee Since January 2008. Principal  since 2006 (retired 2008) and Member of the 
Occupation(s) During the Past Five Years: Executive  Executive Committee (retired 2008) of Johnson & 
Chief Staff and Marketing Officer for North America  Johnson (pharmaceuticals/consumer products); Vice 
and Corporate Vice President (retired 2008) of Xerox  President and Chief Information Officer of Johnson & 
Corporation (document management products and  Johnson (1997–2005); Director of the University 
services); Director of SPX Corporation (multi-industry  Medical Center at Princeton and Women’s Research 
manufacturing), the United Way of Rochester,  and Education Institute; Member of the Advisory 
Amerigroup Corporation (managed health care),  Board of the Maxwell School of Citizenship and Public 
the University of Rochester Medical Center, and  Affairs at Syracuse University. 
Monroe Community College Foundation.   
  F. Joseph Loughrey 
Rajiv L. Gupta  Born 1949. Trustee Since October 2009. Principal 
Born 1945. Trustee Since December 2001.2  Occupation(s) During the Past Five Years: President 
Principal Occupation(s) During the Past Five Years:  and Chief Operating Officer since 2005 (retired 2009) 
Chairman and Chief Executive Officer (retired 2009)  and Vice Chairman of the Board (2008–2009) of 
and President (2006–2008) of Rohm and Haas Co.  Cummins Inc. (industrial machinery); Director of 
(chemicals); Director of Tyco International, Ltd.  SKF AB (industrial machinery), Hillenbrand, Inc. 
(diversified manufacturing and services) and Hewlett-  (specialized consumer services), Sauer-Danfoss Inc. 
Packard Co. (electronic computer manufacturing);  (machinery), the Lumina Foundation for Education, 
Trustee of The Conference Board; Member of the  and Oxfam America; Chairman of the Advisory 
Board of Managers of Delphi Automotive LLP  Council for the College of Arts and Letters at the 
(automotive components) .  University of Notre Dame. 

 

 

André F. Perold  Kathryn J. Hyatt   
Born 1952. Trustee Since December 2004. Principal  Born 1955. Treasurer Since November 2008. Principal 
Occupation(s) During the Past Five Years: George  Occupation(s) During the Past Five Years: Principal 
Gund Professor of Finance and Banking at the Harvard  of The Vanguard Group, Inc.; Treasurer of each of 
Business School; Chair of the Investment Committee  the investment companies served by The Vanguard 
of HighVista Strategies LLC (private investment firm) .  Group since 2008; Assistant Treasurer of each of the 
  investment companies served by The Vanguard Group 
Alfred M. Rankin, Jr.  (1988–2008) .   
Born 1941. Trustee Since January 1993. Principal     
Occupation(s) During the Past Five Years: Chairman,  Heidi Stam   
President, and Chief Executive Officer of NACCO  Born 1956. Secretary Since July 2005. Principal 
Industries, Inc. (forklift trucks/housewares/lignite);  Occupation(s) During the Past Five Years: Managing 
Director of Goodrich Corporation (industrial products/  Director of The Vanguard Group, Inc., since 2006; 
aircraft systems and services); Chairman of the  General Counsel of The Vanguard Group since 2005; 
Federal Reserve Bank of Cleveland; Trustee of The  Secretary of The Vanguard Group and of each of the 
Cleveland Museum of Art.  investment companies served by The Vanguard Group 
  since 2005; Director and Senior Vice President of 
Peter F. Volanakis  Vanguard Marketing Corporation since 2005; 
Born 1955. Trustee Since July 2009. Principal  Principal of The Vanguard Group (1997–2006). 
Occupation(s) During the Past Five Years: President     
since 2007 and Chief Operating Officer since 2005     
of Corning Incorporated (communications equipment);  Vanguard Senior Management Team 
President of Corning Technologies (2001–2005);     
Director of Corning Incorporated and Dow Corning;  R. Gregory Barton  Michael S. Miller 
Trustee of the Corning Incorporated Foundation and  Mortimer J. Buckley  James M. Norris 
the Corning Museum of Glass; Overseer of the  Kathleen C. Gubanich  Glenn W. Reed 
Amos Tuck School of Business Administration at  Paul A. Heller  George U. Sauter 
Dartmouth College.     
 
  Chairman Emeritus and Senior Advisor 
Executive Officers     
  John J. Brennan   
Glenn Booraem  Chairman, 1996–2009   
Born 1967. Controller Since July 2010. Principal  Chief Executive Officer and President, 1996–2008 
Occupation(s) During the Past Five Years: Principal     
of The Vanguard Group, Inc.; Controller of each of     
the investment companies served by The Vanguard  Founder   
Group since 2010; Assistant Controller of each of     
the investment companies served by The Vanguard  John C. Bogle   
Group (2001–2010) .  Chairman and Chief Executive Officer, 1974–1996 
 
Thomas J. Higgins     
Born 1957. Chief Financial Officer Since September     
2008. Principal Occupation(s) During the Past Five     
Years: Principal of The Vanguard Group, Inc.; Chief     
Financial Officer of each of the investment companies     
served by The Vanguard Group since 2008; Treasurer     
of each of the investment companies served by The     
Vanguard Group (1998–2008) .     

 

1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.

 

 

  P.O. Box 2600
Valley Forge, PA 19482-2600 

 

Connect with Vanguard® > vanguard.com

Fund Information > 800-662-7447  CFA® is a trademark owned by CFA Institute. 
Direct Investor Account Services > 800-662-2739   
Institutional Investor Services > 800-523-1036   
Text Telephone for People   
With Hearing Impairment > 800-749-7273   
 
This material may be used in conjunction   
with the offering of shares of any Vanguard   
fund only if preceded or accompanied by   
the fund’s current prospectus.   
 
All comparative mutual fund data are from Lipper Inc. or   
Morningstar, Inc., unless otherwise noted.   
 
You can obtain a free copy of Vanguard’s proxy voting   
guidelines by visiting vanguard.com/proxyreporting or by   
calling Vanguard at 800-662-2739. The guidelines are   
also available from the SEC’s website, 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   
vanguard.com/proxyreporting or 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 20549-1520.   
 
 
  © 2011 The Vanguard Group, Inc. 
  All rights reserved. 
  Vanguard Marketing Corporation, Distributor. 
 
  Q140 012011 

 

 

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, and Alfred M. Rankin, Jr.

Item 4: Principal Accountant Fees and Services.

(a) Audit Fees.

Audit Fees of the Registrant

Fiscal Year Ended November 30, 2010: $48,000
Fiscal Year Ended November 30, 2009: $43,000

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

Fiscal Year Ended November 30, 2010: $3,607,060
Fiscal Year Ended November 30, 2009: $3,354,640

(b) Audit-Related Fees.

Fiscal Year Ended November 30, 2010: $791,350
Fiscal Year Ended November 30, 2009: $876,210

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, 2010: $336,090
Fiscal Year Ended November 30, 2009: $423,070

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, 2010: $16,000
Fiscal Year Ended November 30, 2009: $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, 2010: $352,090
Fiscal Year Ended November 30, 2009: $423,070

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: Audit Committee of Listed Registrants.

Not Applicable.

Item 6: Investments.

Not Applicable.

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not Applicable.

Item 8: Portfolio Managers of Closed-End Management Investment Companies.

 

Not Applicable.

Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not Applicable.

Item 10: Submission of Matters to a Vote of Security Holders.

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:  /s/ F. WILLIAM MCNABB III* 
  F. WILLIAM MCNABB III 
  CHIEF EXECUTIVE OFFICER 
 
Date: January 25, 2011 

 

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:  /s/ F. WILLIAM MCNABB III* 
  F. WILLIAM MCNABB III 
  CHIEF EXECUTIVE OFFICER 
 
Date: January 25, 2011 

 

  VANGUARD NEW JERSEY TAX-FREE FUNDS 
 
By:  /s/ THOMAS J. HIGGINS* 
  THOMAS J. HIGGINS 
  CHIEF FINANCIAL OFFICER 
 
Date: January 25, 2011 

 

* By: /s/ Heidi Stam

Heidi Stam, pursuant to a Power of Attorney filed on April 26, 2010, see file Number
33-53683, Incorporated by Reference.