As filed with the Securities and Exchange Commission on December 6, 2007

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: 811-21715

LEHMAN BROTHERS INSTITUTIONAL LIQUIDITY FUNDS

(Exact Name of the Registrant as Specified in Charter)

605 Third Avenue, 2nd Floor

New York, New York 10158-0180

(Address of Principal Executive Offices – Zip Code)

Registrant's telephone number, including area code: (212) 476-8800

Peter E. Sundman, Chairman of the Board and Chief Executive Officer

Lehman Brothers Institutional Liquidity Funds

605 Third Avenue, 2nd Floor

New York, New York 10158-0180

Arthur Delibert, Esq.

Kirkpatrick & Lockhart Preston Gates Ellis LLP

1601 K Street, N.W.

Washington, D.C. 20006-1600

(Names and Addresses of agents for service)

Date of fiscal year end: March 31, 2008

Date of reporting period: September 30, 2007

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Shareholders

LOGO

Lehman Brothers

Institutional Liquidity Funds

Institutional Class

Cash Management Class

Capital Class

Select Class

Administrative Class

Service Class

Premier Class

Money Market Portfolio

Prime Portfolio

Government Portfolio

Government Reserves Portfolio

Treasury Portfolio

Tax-Exempt Portfolio

Municipal Portfolio

Semi-Annual Report

September 30, 2007

Contents




THE PORTFOLIOS

Chairman's Letter	1

PORTFOLIO COMMENTARY/MATURITY DIVERSIFICATION

Money Market Portfolio	3
Prime Portfolio	3
Government Portfolio	6
Government Reserves Portfolio	6
Treasury Portfolio	6
Tax-Exempt Portfolio	8
Municipal Portfolio	10
Portfolio Expense Information	16

FINANCIAL STATEMENTS	22

FINANCIAL HIGHLIGHTS/PER SHARE DATA

Money Market Portfolio	40
Prime Portfolio	44
Government Portfolio	48
Government Reserves Portfolio	52
Treasury Portfolio	56
Tax-Exempt Portfolio	60
Municipal Portfolio	64

THE MASTER SERIES'

SCHEDULE OF INVESTMENTS

Money Market Master Series	70
Prime Master Series	74
Government Master Series	80
Government Reserves Master Series	82
Treasury Master Series	83
Tax-Exempt Master Series	84
Municipal Master Series	103

FINANCIAL STATEMENTS	118

FINANCIAL HIGHLIGHTS

Money Market Master Series	129
Prime Master Series	130
Government Master Series	131
Government Reserves Master Series	132
Treasury Master Series	133
Tax-Exempt Master Series	134
Municipal Master Series	135

Directory	137

Proxy Voting Policies and Procedures	138

Quarterly Portfolio Schedule	138

Board Consideration of the Management and Sub-Advisory Agreements	138

Chairman's Letter

Dear Shareholder,

I am pleased to present to you this semi-annual report for the Lehman Brothers Institutional Liquidity Funds for the period ended September 30, 2007. The report includes portfolio commentaries, listings of the Portfolios' investments, and their financial statements for the reporting period.

The period was marked by extreme volatility in both credit and equity markets, as the housing decline finally began to affect the broader fixed income markets. Beginning in July, reports of problems at two hedge funds began to unsettle investors, leading to a flight to the safety of Treasuries that dislocated short-term rates. After using a variety of available policy levers during the worst of the crisis, the Federal Reserve took strong action in September by cutting the Fed Funds rate by 50 basis points, in an effort to prevent credit issues from affecting the broader economy.

During the period, we introduced several new portfolios into the Institutional Liquidity Funds. Our new Portfolios are the Government Reserves Portfolio, the Tax-Exempt Portfolio and the Municipal Portfolio. As always, our goal is to offer competitive products that meet the specific needs of institutional investors.

The Portfolios performed admirably and as expected throughout the period. Our investment strategy combines a distinct process for interest rate risk management with dedicated credit research to build portfolios of high-quality securities that seek to respond quickly to changes in interest rates without sacrificing yield.

As always, we intend to proceed with caution to protect our clients' principal and maintain daily liquidity and diversification.

Sincerely,

LOGO

PETER SUNDMAN

CHAIRMAN OF THE BOARD

LEHMAN BROTHERS INSTITUTIONAL LIQUIDITY FUNDS

Institutional Liquidity Funds Portfolio Commentaries

We are pleased to report that both the Money Market Portfolio Institutional Class and the Prime Portfolio Institutional Class delivered positive returns and outperformed the iMoneyNet Money Fund Report Taxable First Tier Institutional Average for the six months ended September 30, 2007.

The Federal Reserve remained on hold throughout most of the period, with rates at 5.25%. The minutes from the Federal Open Market Committee's March meeting (released in April) indicated the Fed's reluctance to cut rates, given the level of inflation-despite the slowing of the economy. However, market expectations for a rate cut remained in place, as seen by a gradual drop in short-term Treasury yields. In April, a demand and supply imbalance drove the yield on the three-month U.S. Treasury bill to its lowest level since June 2006, and this yield dropped lower still in June as prices increased. Beginning in July, worries about reports of large losses at hedge funds in the subprime and collateralized debt space led to a flight-to-quality bid for Treasuries and a slight widening of risk premiums in the market.

New challenges arose in July for the credit markets, as the perceived risk of owning corporate bonds soared. Investors became increasingly concerned about contagion to the broader market from the shakeout in subprime mortgages, leading to more investors taking refuge in Treasuries. Premiums for lending increased dramatically, as the excesses of a prolonged period of liquidity began to be removed from the market. While the Fed left rates unchanged at its August 7 meeting, citing the risk that inflation would "fail to moderate," the central bank did acknowledge the ongoing housing correction and tighter credit conditions as issues.

Shortly thereafter, in response to the deepening turmoil in the markets, the Fed lowered the Discount rate (the interest rate charged to banks), began accepting a wider range of collateral at the discount window and added substantial additional reserves to the banking system. These steps were seen by many as a "surgical approach," in which all the levers of monetary policy available to the Fed would be employed, in contrast to a hasty move to lower the Fed Funds rate.

September brought the release of August payroll figures, which were negative for the first time in four years, as well as a sharp revision to the prior two months' figures-and seen as apparent proof that the employment situation appeared to be worsening. (August payroll figures were adjusted upward in October) This, coupled with a housing market that continued to see declining prices and higher inventories, heightened the Fed's interest in preempting any material effects on economic growth.

As a result, the Fed reduced the Fed Funds rate by 50 basis points at its September meeting, marking its first rate reduction since 2003. The move to 4.75% was only the second time in the last 20 years that an easing cycle had commenced with a 50 basis point reduction. In taking rates lower, the Federal Open Market Committee commented that the action was "intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in the financial markets." The committee added that it was prepared to "act as needed to foster price stability and sustainable economic growth."

After an impressive rally, the two-year U.S. Treasury note closed out September at below 4% for the first time since 2005, finishing the period yielding 3.99%, while the 10-year note finished at 4.59% and the three-month U.S. Treasury bill yielded 3.80%.

The U.S. economy has been extremely resilient thus far. However, we anticipate that further deterioration in the housing market will start to take its toll on the consumer and ultimately business investment. The market is suffering from a crisis of confidence, and while the Fed remains reluctant to take rates lower, we believe that the easing cycle may continue.

Money Market Portfolio

For the six months ended September 30, 2007, the Money Market Portfolio Institutional Class returned 2.67% compared to the iMoneyNet Money Fund Report Taxable First Tier Institutional Average's 2.54%. The Portfolio's Institutional Class closed the period with a 5.34% seven-day current yield and a 5.48% seven-day effective yield; this more closely reflects current earnings than six-month or one-year figures.

MONEY MARKET MASTER SERIES

Maturity Diversification (% by Maturity)


1 - 7 Days	29.8	%
8 - 30 Days	28.4
31 - 90 Days	25.6
91 - 180 Days	13.9
181+ Days	2.3

Prime Portfolio

For the six months ended September 30, 2007, the Prime Portfolio Institutional Class returned 2.66% compared to the iMoneyNet Money Fund Report Taxable First Tier Institutional Average's 2.54%. The Portfolio's Institutional Class closed the period with a 5.31% seven-day current yield and a 5.45% seven-day effective yield; this more closely reflects current earnings than six-month or one-year figures.

Sincerely,

LOGO LOGO

JOHN C. DONOHUE AND TIMOTHY J. ROBEY

PORTFOLIO CO-MANAGERS

PRIME MASTER SERIES

Maturity Diversification (% by Maturity)


1 - 7 Days	50.2	%
8 - 30 Days	22.1
31 - 90 Days	17.6
91 - 180 Days	8.5
181+ Days	1.6

PERFORMANCE HIGHLIGHTS


The seven-day current and seven-day effective yields as of September 30, 2007 were as follows:⁸

Lehman Brothers Institutional Liquidity Funds
	Institutional Class⁴		Cash Management Class³		Capital Class²		Select Class⁶		Administrative Class¹		Service Class⁷		Premier Class⁵
	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield
Money Market Portfolio	5.34%	5.48%	5.28%	5.42%	5.24%	5.38%	5.19%	5.32%	5.09%	5.22%	4.94%	5.06%	4.84%	4.96%

Prime Portfolio	5.31%	5.45%	5.26%	5.40%	5.21%	5.35%	5.16%	5.29%	5.06%	5.19%	4.91%	5.03%	4.81%	4.93%

Performance data quoted represent past performance, which is no guarantee of future results. The investment return on an investment in a money market fund will fluctuate. Current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, call 888.556.9030. The composition, industries and holdings of each fund are subject to change.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each Portfolio seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in each Portfolio.

Institutional Liquidity Funds Portfolio Commentaries

We are pleased to report that the Government Portfolio Institutional Class and the Treasury Portfolio Institutional Class delivered positive returns and outperformed the iMoneyNet Money Fund Report Government & Agencies Institutional Average and the iMoneyNet Money Fund Report Treasury & Repo Institutional Average, respectively, for the six months ended September 30, 2007. The Government Reserves Portfolio Institutional Class delivered positive returns for the period from its inception on July 9, 2007 through September 30, 2007.

The Federal Reserve remained on hold throughout most of the period, with rates at 5.25%. The minutes from the Federal Open Market Committee's March meeting (released in April) indicated the Fed's reluctance to cut rates, given the level of inflation—despite the slowing of the economy. However, market expectations for a rate cut remained in place, as seen by a gradual drop in short-term Treasury yields. In April, a demand and supply imbalance drove the yield on the three-month U.S. Treasury bill to its lowest level since June 2006, and this yield dropped lower still in June as prices increased. Beginning in July, worries about reports of large losses at hedge funds in the subprime and collateralized debt space led to a flight-to-quality bid for Treasuries and a slight widening of risk premiums in the market.

September brought the release of August payroll figures, which were negative for the first time in four years, as well as a sharp revision to the prior two months' figures-and seen as apparent proof that the employment situation appeared to be worsening. (August payroll figures were adjusted upward in October) This, coupled with a housing market that continued to see declining prices and higher inventories heightened the Fed's interest in preempting any material effects on economic growth.

Government Portfolio

For the six months ended September 30, 2007, the Government Portfolio Institutional Class returned 2.59% compared to the iMoneyNet Money Fund Report Government & Agencies Institutional Average's 2.48%. The Portfolio's Institutional Class closed the period with a 4.99% seven-day current yield and a 5.11% seven-day effective yield; this more closely reflects current earnings than six-month or one-year figures.

GOVERNMENT MASTER SERIES

Maturity Diversification (% by Maturity)


1 - 7 Days	59.4	%
8 - 30 Days	11.2
31 - 90 Days	20.8
91 - 180 Days	6.1
181+ Days	2.5

Government Reserves Portfolio

For the period from inception on July 9, 2007 through September 30, 2007, the Government Reserves Portfolio Institutional Class returned 1.17%. The Portfolio's Institutional Class closed the period with a 4.98% seven-day current yield and a 5.10% seven-day effective yield; this more closely reflects current earnings than six-month or one-year figures.

GOVERNMENT RESERVES MASTER SERIES

Maturity Diversification (% by Maturity)


1 - 7 Days	20.9	%
8 - 30 Days	20.7
31 - 90 Days	47.2
91 - 180 Days	9.6
181+ Days	1.6

Treasury Portfolio

For the six months ended September 30, 2007, the Treasury Portfolio Institutional Class returned 2.47% compared to the iMoneyNet Money Fund Report Treasury & Repo Institutional Average's 2.35%. The Portfolio's Institutional Class closed the period with a 4.29% seven-day current yield and a 4.38% seven-day effective yield; this more closely reflects current earnings than six-month or one-year figures.

TREASURY MASTER SERIES

Maturity Diversification (% by Maturity)


1 - 7 Days	95.4	%
8 - 30 Days	0.0
31 - 90 Days	0.0
91 - 180 Days	1.3
181+ Days	3.3

Sincerely,

LOGO LOGO

JOHN C. DONOHUE AND SCOTT F. RIECKE

PORTFOLIO CO-MANAGERS

PERFORMANCE HIGHLIGHTS


The seven-day current and seven-day effective yields as of September 30, 2007 were as follows:⁸

Lehman Brothers Institutional Liquidity Funds
	Institutional Class⁴		Cash Management Class³		Capital Class²		Select Class⁶		Administrative Class¹		Service Class⁷		Premier Class⁵
	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield	7-day Current Yield	7-day Effective Yield
Govern- ment Portfolio	4.99%	5.11%	4.94%	5.06%	4.89%	5.01%	4.84%	4.96%	4.74%	4.85%	4.59%	4.69%	4.49%	4.59%

Govern- ment Reserve Portfolio	4.98%	5.10%	4.93%	5.05%	4.88%	5.00%	4.83%	4.95%	4.73%	4.84%	4.58%	4.68%	4.48%	4.58%

Treasury Portfolio	4.29%	4.38%	4.24%	4.33%	4.19%	4.28%	4.14%	4.23%	4.04%	4.12%	3.89%	3.97%	3.79%	3.86%

Institutional Liquidity Funds Portfolio Commentary

We are pleased to report that the Tax-Exempt Portfolio Institutional Class earned a positive return from its inception on September 10, 2007 through the period ended September 30, 2007.

The first 20 days of the Portfolio's operation coincided with one of the (for now) final acts of a market crisis that had held investors' attention for most of the summer. After holding the Fed Funds rate steady in June and August, despite the increasing turmoil, the Federal Reserve lowered this rate by 50 basis points in September, marking the first rate reduction since 2003. The Fed's move to 4.75% was only the second occasion in the last 20 years in which the Fed has commenced an easing cycle with a 50 basis point reduction. In taking rates lower, the Fed's Open Market Committee commented that its action "is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in the financial markets." The committee added that it is prepared to "act as needed to foster price stability and sustainable economic growth."

During the brief reporting period, weak payroll figures appeared to suggest that the employment situation was worsening. Viewing this, along with a housing market that continues to see declining prices and skyrocketing inventory, the Federal Reserve in lowering rates sought to preempt any material effects from the summer's tight liquidity conditions on economic growth.

During the brief reporting period, tax-exempt money market fund yields rose relative to the previous two months. While the lack of liquidity in the marketplace continues to affect short term yields, we have witnessed signs of normalcy returning to the money fund arena. We attribute the rising yields more to an abundant supply of paper in the market than to the credit crisis. Over the period, tax-exempt/taxable ratios looked unusually cheap for variable rate demand notes that reset both daily and weekly, and we expect non-traditional buyers to enter the marketplace going forward. We continue to maintain a duration neutral stance, with the Portfolio's weighted average maturity in a range of 25-30 days.

Tax-Exempt Portfolio

For the 20-day period from the inception of the Portfolio on September 10, 2007 through September 30, 2007, the Tax-Exempt Portfolio Institutional Class returned 0.21%. The Portfolio's Institutional Class closed the reporting period with a 3.75% seven-day current yield* and a 3.82% seven-day effective yield; this more closely reflects current earnings than six-month or one-year figures.

TAX-EXEMPT MASTER SERIES

Maturity Diversification (% by Maturity)


1 - 7 Days	87.3	%
8 - 30 Days	1.0
31 - 90 Days	3.4
91 - 180 Days	2.4
181+ Days	5.9

Sincerely,

WILLIAM J. FURRER AND KRISTIAN J. LIND

PORTFOLIO CO-MANAGERS

*	Current yield more closely reflects current earnings than does total return. Tax-equivalent yield is based on the maximum federal income tax rate of 35%.

PERFORMANCE HIGHLIGHTS

The seven-day current, seven-day effective and seven-day tax-equivalent effective yields as of September 30, 2007 were as follows:⁸

Lehman Brothers Institutional Liquidity Funds

Institutional
Class⁴

Cash

Management
Class³

Capital
Class²

Select
Class⁶

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

Tax-
Exempt Portfolio

3.75%

3.82%

5.94%

3.70%

3.77%

5.85%

3.65%

3.72%

5.78%

3.60%

3.66%

5.69%

Administrative

Class¹

Service
Class⁷

Premier
Class⁵

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

Tax-

Exempt Portfolio

3.50%

3.56%

5.52%

3.35%

3.41%

5.28%

3.25%

3.30%

5.12%

Institutional Liquidity Funds Portfolio Commentary

We are pleased to report that the Municipal Portfolio Institutional Class earned a positive return from its inception on September 10, 2007 through the period ended September 30, 2007.

Municipal Portfolio

For the 20-day period from the inception of the Portfolio on September 10, 2007 through September 30, 2007, the Municipal Portfolio Institutional Class returned 0.22%. The Portfolio's Institutional Class closed the reporting period with a 3.81% seven-day current yield* and a 3.88% seven-day effective yield; this more closely reflects current earnings than six-month or one-year figures.

MUNICIPAL MASTER SERIES

Maturity Diversification (% by Maturity)


1 - 7 Days	88.2	%
8 - 30 Days	0.3
31 - 90 Days	1.4
91 - 180 Days	5.7
181+ Days	4.4

Sincerely,

WILLIAM J. FURRER AND KRISTIAN J. LIND

PORTFOLIO CO-MANAGERS

*	Current yield more closely reflects current earnings than does total return. Tax-equivalent yield is based on the maximum federal income tax rate of 35%.

PERFORMANCE HIGHLIGHTS

The seven-day current, seven-day effective and seven-day tax-equivalent effective yields as of September 30, 2007 were as follows:⁸

Lehman Brothers Institutional Liquidity Funds

Institutional
Class⁴

Cash
Management
Class³

Capital
Class²

Select
Class⁶

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

Municipal Portfolio

3.81%

3.88%

6.03%

3.76%

3.83%

5.95%

3.71%

3.78%

5.87%

3.66%

3.73%

5.79%

Administrative
Class¹

Service
Class⁷

Premier
Class⁵

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

7-day
Current
Yield

7-day
Effective
Yield

Tax-
Equivalent
Effective
Yield

Municipal Portfolio

3.56%

3.62%

5.63%

3.41%

3.47%

5.39%

3.31%

3.36%

5.22%

Endnotes

Neuberger Berman Management Inc. (Management) has contractually agreed to forgo current payment of fees and/or reimburse certain expenses of the Administrative Class of each Portfolio through 3/31/2010, so that the total annual operating expenses of the Administrative Class of each Portfolio are limited to 0.45% of its average net assets. This arrangement does not cover interest, taxes, brokerage commissions and extraordinary expenses. Each Portfolio has agreed that its Administrative Class will repay Management for fees and expenses foregone or reimbursed for that Class provided that repayment does not cause the annual operating expenses of that Class of the Portfolio to exceed the above-stated expense limitation and the reimbursements are made within three years after the year that Management incurred the expense. In addition to the contractual limitation, Management has voluntarily reimbursed the Administrative Class of each of Money Market Portfolio, Prime Portfolio, Government Portfolio, Government Reserves Portfolio and Treasury Portfolio an additional 0.10% per annum of the class' average daily net assets. Management has voluntarily reimbursed the Administrative Class of each of Tax-Exempt Portfolio and Municipal Portfolio an additional 0.05% per annum of the class' average daily net assets. For the period ended September 30, 2007, if reimbursements were not made, performance would be lower for the Administrative Class of each Portfolio.

Management has contractually agreed to forgo current payment of fees and/or reimburse certain expenses of the Capital Class of each Portfolio through 3/31/2010, so that the total annual operating expenses of the Capital Class of each Portfolio are limited to 0.30% of its average net assets. This arrangement does not cover interest, taxes, brokerage commissions and extraordinary expenses. Each Portfolio has agreed that its Capital Class will repay Management for fees and expenses foregone or reimbursed for that Class provided that repayment does not cause the annual operating expenses of that Class of the Portfolio to exceed the above-stated expense limitation and the reimbursements are made within three years after the year that Management incurred the expense. In addition to the contractual limitation, Management has voluntarily reimbursed the Capital Class of each of Money Market Portfolio, Prime Portfolio, Government Portfolio, Government Reserves Portfolio and Treasury Portfolio an additional 0.10% per annum of the class' average daily net assets. Management has voluntarily reimbursed the Capital Class of each of Tax-Exempt Portfolio and Municipal Portfolio an additional 0.05% per annum of the class' average daily net assets. For the period ended September 30, 2007, if reimbursements were not made, performance would be lower for the Capital Class of each Portfolio.

Management has contractually agreed to forgo current payment of fees and/or reimburse certain expenses of the Cash Management Class of each Portfolio through 3/31/2010, so that the total annual operating expenses of the Cash Management Class of each Portfolio are limited to 0.25% of its average net assets. This arrangement does not cover interest, taxes, brokerage commissions and extraordinary expenses. Each Portfolio has agreed that its Cash Management Class will repay Management for fees and expenses foregone or reimbursed for that Class provided that repayment does not cause the annual operating expenses of that Class of the Portfolio to exceed the above-stated expense limitation and the reimbursements are made within three years after the year that Management incurred the expense. In addition to the contractual limitation, Management has voluntarily reimbursed the Cash Management Class of each of Money Market Portfolio, Prime Portfolio, Government Portfolio, Government Reserves Portfolio and Treasury Portfolio an additional 0.10% per annum of the class' average daily net assets. Management has voluntarily reimbursed the Cash Management Class of each of Tax-Exempt Portfolio and Municipal Portfolio an additional 0.05% per annum of the class' average daily net assets. For the period ended September 30, 2007, if reimbursements were not made, performance would be lower for the Cash Management Class of each Portfolio.

Management has contractually agreed to forgo current payment of fees and/or reimburse certain expenses of the Institutional Class of each Portfolio through 3/31/2010, so that the total annual operating expenses of the Institutional Class of each Portfolio are limited to 0.20% of its average net assets. This arrangement does not cover interest, taxes, brokerage commissions and extraordinary expenses. Each Portfolio has agreed that its Institutional Class will repay Management for fees and expenses foregone or reimbursed for that Class provided that repayment

does not cause the annual operating expenses of that Class of the Portfolio to exceed the above-stated expense limitation and the reimbursements are made within three years after the year that Management incurred the expense. In addition to the contractual limitation, Management has voluntarily reimbursed the Institutional Class of each of Money Market Portfolio, Prime Portfolio, Government Portfolio, Government Reserves Portfolio and Treasury Portfolio an additional 0.10% per annum of the class' average daily net assets. Management has voluntarily reimbursed the Institutional Class of each of Tax-Exempt Portfolio and Municipal Portfolio an additional 0.05% per annum of the class' average daily net assets. For the period ended September 30, 2007, if reimbursements were not made, performance would be lower for the Institutional Class of each Portfolio.

Management has contractually agreed to forgo current payment of fees and/or reimburse certain expenses of the Premier Class of each Portfolio through 3/31/2010, so that the total annual operating expenses of the Premier Class of each Portfolio are limited to 0.70% of its average net assets. This arrangement does not cover interest, taxes, brokerage commissions and extraordinary expenses. Each Portfolio has agreed that its Premier Class will repay Management for fees and expenses foregone or reimbursed for that Class provided that repayment does not cause the annual operating expenses of that Class of the Portfolio to exceed the above-stated expense limitation and the reimbursements are made within three years after the year that Management incurred the expense. In addition to the contractual limitation, Management has voluntarily reimbursed the Premier Class of each of Money Market Portfolio, Prime Portfolio, Government Portfolio, Government Reserves Portfolio and Treasury Portfolio an additional 0.10% per annum of the class' average daily net assets. Management has voluntarily reimbursed the Premier Class of each of Tax-Exempt Portfolio and Municipal Portfolio an additional 0.05% per annum of the class' average daily net assets. For the period ended September 30, 2007, if reimbursements were not made, performance would be lower for the Premier Class of each Portfolio.

Management has contractually agreed to forgo current payment of fees and/or reimburse certain expenses of the Select Class of each Portfolio through 3/31/2010, so that the total annual operating expenses of the Select Class of each Portfolio are limited to 0.35% of its average net assets. This arrangement does not cover interest, taxes, brokerage commissions and extraordinary expenses. Each Portfolio has agreed that its Select Class will repay Management for fees and expenses foregone or reimbursed for that Class provided that repayment does not cause the annual operating expenses of that Class of the Portfolio to exceed the above-stated expense limitation and the reimbursements are made within three years after the year that Management incurred the expense. In addition to the contractual limitation, Management has voluntarily reimbursed the Select Class of each of Money Market Portfolio, Prime Portfolio, Government Portfolio, Government Reserves Portfolio and Treasury Portfolio an additional 0.10% per annum of the class' average daily net assets. Management has voluntarily reimbursed the Select Class of each of Tax-Exempt Portfolio and Municipal Portfolio an additional 0.05% per annum of the class' average daily net assets. For the period ended September 30, 2007, if reimbursements were not made, performance would be lower for the Select Class of each Portfolio.

Management has contractually agreed to forgo current payment of fees and/or reimburse certain expenses of the Service Class of each Portfolio through 3/31/2010, so that the total annual operating expenses of the Service Class of each Portfolio are limited to 0.60% of its average net assets. This arrangement does not cover interest, taxes, brokerage commissions and extraordinary expenses. Each Portfolio has agreed that its Service Class will repay Management for fees and expenses foregone or reimbursed for that Class provided that repayment does not cause the annual operating expenses of that Class of the Portfolio to exceed the above-stated expense limitation and the reimbursements are made within three years after the year that Management incurred the expense. In addition to the contractual limitation, Management has voluntarily reimbursed the Service Class of each of Money Market Portfolio, Prime Portfolio, Government Portfolio, Government Reserves Portfolio and Treasury Portfolio an additional 0.10% per annum of the class' average daily net assets. Management has voluntarily reimbursed the Service Class of each of Tax-Exempt Portfolio and Municipal Portfolio an additional 0.05% per annum of the class' average daily net assets. For the period ended September 30, 2007, if reimbursements were not made, performance would be lower for the Service Class of each Portfolio.

"Current yield" of a money market fund refers to the income generated by an investment in a Portfolio over a recent 7-day period. This income is then "annualized." The "effective yield" is calculated similarly but, when annualized, the income earned by an investment in the Portfolio is assumed to be reinvested. The "effective yield" will be slightly higher than the "current yield" because of the compounding effect of this assumed reinvestment. Yields of a money market fund will fluctuate and past performance is not a guarantee of future results. Tax-equivalent effective yield is the taxable effective yield that an investor would have had to receive in order to realize the same level of yield after federal income taxes at the highest federal tax rate, currently 35%, assuming that all of a Fund's income is exempt from federal income taxes. Unaudited performance data current to the most recent month-end are available by calling 888-556-9030 or visiting www.lehman.com/lbilf.

Glossary of Indices

The iMoneyNet Money Fund Report Taxable First Tier Institutional Average:

Measures the performance of institutional money market mutual funds which invest in anything allowable under SEC regulations governing money market funds, except Second Tier Commercial Paper.

The iMoneyNet Money Fund Report Government & Agencies Institutional Average:

Measures the performance of institutional money market mutual funds which invest in obligations of the U.S. Treasury (T-Bills), repurchase agreements, or U.S. Government Agency securities.

The iMoneyNet Money Fund Report Treasury & Repo Institutional Average:

Measures the performance of institutional money market mutual funds which invest in obligations of the U.S. Treasury (T-Bills) and repurchase agreements.

Please note that indices do not take into account any fees and expenses or any tax consequences of investing in the individual securities that they track and that individuals cannot invest directly in any index. Data about the performance of these indices are prepared or obtained by Neuberger Berman Management Inc. and include reinvestment of all dividends and capital gain distributions. The Portfolios may invest in securities not included in the above-described indices.

Information About Your Portfolio's Expenses

These tables are designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include each portfolio's proportionate share of expenses of its corresponding master series, administrative service fees and other expenses. The following examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The tables illustrate the portfolio's costs in two ways:

Actual Expenses and Performance:

The first section of the table provides information about actual account values and actual expenses in dollars, based on the portfolio's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. 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 in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period.

Hypothetical Example for Comparison Purposes:

The second section of the table provides information about hypothetical account values and hypothetical expenses based on the portfolio's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the portfolio's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in these portfolios versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Expense Information As of 9/30/07 (Unaudited)

MONEY MARKET PORTFOLIO


Actual	Beginning Account Value 4/1/07	Ending Account Value 9/30/07	Expenses Paid During the Period* 4/1/07 - 9/30/07	Expense Ratio
Institutional Class	$1,000.00	$1,026.70	$0.51	.10%
Cash Management Class	$1,000.00	$1,026.40	$0.76	.15%
Capital Class	$1,000.00	$1,026.20	$1.01	.20%
Select Class	$1,000.00	$1,025.90	$1.27	.25%
Administrative Class	$1,000.00	$1,025.40	$1.77	.35%
Service Class	$1,000.00	$1,024.60	$2.53	.50%
Premier Class	$1,000.00	$1,024.10	$3.04	.60%

Hypothetical (5% annual return before expenses)****
Institutional Class	$1,000.00	$1,024.50	$0.51	.10%
Cash Management Class	$1,000.00	$1,024.25	$0.76	.15%
Capital Class	$1,000.00	$1,024.00	$1.01	.20%
Select Class	$1,000.00	$1,023.75	$1.26	.25%
Administrative Class	$1,000.00	$1,023.25	$1.77	.35%
Service Class	$1,000.00	$1,022.50	$2.53	.50%
Premier Class	$1,000.00	$1,022.00	$3.03	.60%

PRIME PORTFOLIO


Actual	Beginning Account Value 4/1/07	Ending Account Value 9/30/07	Expenses Paid During the Period* 4/1/07 - 9/30/07	Expense Ratio
Institutional Class	$1,000.00	$1,026.60	$0.51	.10%
Cash Management Class	$1,000.00	$1,026.40	$0.76	.15%
Capital Class	$1,000.00	$1,026.10	$1.01	.20%
Select Class	$1,000.00	$1,025.90	$1.27	.25%
Administrative Class	$1,000.00	$1,025.40	$1.77	.35%
Service Class	$1,000.00	$1,024.60	$2.53	.50%
Premier Class	$1,000.00	$1,024.10	$3.04	.60%

Hypothetical (5% annual return before expenses)****
Institutional Class	$1,000.00	$1,024.50	$0.51	.10%
Cash Management Class	$1,000.00	$1,024.25	$0.76	.15%
Capital Class	$1,000.00	$1,024.00	$1.01	.20%
Select Class	$1,000.00	$1,023.75	$1.26	.25%
Administrative Class	$1,000.00	$1,023.25	$1.77	.35%
Service Class	$1,000.00	$1,022.50	$2.53	.50%
Premier Class	$1,000.00	$1,022.00	$3.03	.60%

For each class of the portfolio, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period shown). Each portfolio's expense ratio includes its proportionate share of the expenses of its corresponding master series.

For each class of the portfolio, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 84/366 (to reflect the period shown). Each portfolio's expense ratio includes its proportionate share of the expenses of its corresponding master series.

***

For each class of the portfolio, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 21/366 (to reflect the period shown). Each portfolio's expense ratio includes its proportionate share of the expenses of its corresponding master series.

****	Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 366.

^	The date investment operations commenced.

GOVERNMENT PORTFOLIO


Actual	Beginning Account Value 4/1/07	Ending Account Value 9/30/07	Expenses Paid During the Period* 4/1/07 - 9/30/07	Expense Ratio
Institutional Class	$1,000.00	$1,025.90	$0.51	.10%
Cash Management Class	$1,000.00	$1,025.70	$0.76	.15%
Capital Class	$1,000.00	$1,025.40	$1.01	.20%
Select Class	$1,000.00	$1,025.20	$1.27	.25%
Administrative Class	$1,000.00	$1,024.70	$1.77	.35%
Service Class	$1,000.00	$1,023.90	$2.53	.50%
Premier Class	$1,000.00	$1,023.40	$3.04	.60%

Hypothetical (5% annual return before expenses)****
Institutional Class	$1,000.00	$1,024.50	$0.51	.10%
Cash Management Class	$1,000.00	$1,024.25	$0.76	.15%
Capital Class	$1,000.00	$1,024.00	$1.01	.20%
Select Class	$1,000.00	$1,023.75	$1.26	.25%
Administrative Class	$1,000.00	$1,023.25	$1.77	.35%
Service Class	$1,000.00	$1,022.50	$2.53	.50%
Premier Class	$1,000.00	$1,022.00	$3.03	.60%

GOVERNMENT RESERVES PORTFOLIO


Actual	Beginning Account Value 7/9/07^	Ending Account Value 9/30/07	Expenses Paid During the Period 7/9/07 - 9/30/07**	Expense Ratio
Institutional Class	$1,000.00	$1,011.70	$0.23	.10%
Cash Management Class	$1,000.00	$1,011.50	$0.35	.15%
Capital Class	$1,000.00	$1,011.40	$0.46	.20%
Select Class	$1,000.00	$1,011.30	$0.58	.25%
Administrative Class	$1,000.00	$1,011.10	$0.81	.35%
Service Class	$1,000.00	$1,010.70	$1.15	.50%
Premier Class	$1,000.00	$1,010.50	$1.38	.60%

Hypothetical (5% annual return before expenses)****
Institutional Class	$1,000.00	$1,011.25	$0.23	.10%
Cash Management Class	$1,000.00	$1,011.13	$0.35	.15%
Capital Class	$1,000.00	$1,011.02	$0.46	.20%
Select Class	$1,000.00	$1,010.90	$0.58	.25%
Administrative Class	$1,000.00	$1,010.67	$0.81	.35%
Service Class	$1,000.00	$1,010.33	$1.15	.50%
Premier Class	$1,000.00	$1,010.10	$1.38	.60%

***

****	Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 366.

^	The date investment operations commenced.

TREASURY PORTFOLIO


Actual	Beginning Account Value 4/1/07	Ending Account Value 9/30/07	Expenses Paid During the Period* 4/1/07 - 9/30/07	Expense Ratio
Institutional Class	$1,000.00	$1,024.70	$0.51	.10%
Cash Management Class	$1,000.00	$1,024.50	$0.76	.15%
Capital Class	$1,000.00	$1,024.20	$1.01	.20%
Select Class	$1,000.00	$1,024.00	$1.27	.25%
Administrative Class	$1,000.00	$1,023.50	$1.77	.35%
Service Class	$1,000.00	$1,022.70	$2.53	.50%
Premier Class	$1,000.00	$1,022.20	$3.03	.60%

Hypothetical (5% annual return before expenses)****
Institutional Class	$1,000.00	$1,024.50	$0.51	.10%
Cash Management Class	$1,000.00	$1,024.25	$0.76	.15%
Capital Class	$1,000.00	$1,024.00	$1.01	.20%
Select Class	$1,000.00	$1,023.75	$1.26	.25%
Administrative Class	$1,000.00	$1,023.25	$1.77	.35%
Service Class	$1,000.00	$1,022.50	$2.53	.50%
Premier Class	$1,000.00	$1,022.00	$3.03	.60%

TAX-EXEMPT PORTFOLIO


Actual	Beginning Account Value 9/10/07^	Ending Account Value 9/30/07	Expenses Paid During the Period* 9/10/07 - 9/30/07**	Expense Ratio
Institutional Class	$1,000.00	$1,002.10	$0.09	.15%
Cash Management Class	$1,000.00	$1,002.10	$0.11	.20%
Capital Class	$1,000.00	$1,002.10	$0.14	.25%
Select Class	$1,000.00	$1,002.00	$0.17	.30%
Administrative Class	$1,000.00	$1,002.00	$0.23	.40%
Service Class	$1,000.00	$1,001.90	$0.32	.55%
Premier Class	$1,000.00	$1,001.80	$0.37	.65%

Hypothetical (5% annual return before expenses)****
Institutional Class	$1,000.00	$1,002.78	$0.09	.15%
Cash Management Class	$1,000.00	$1,002.75	$0.11	.20%
Capital Class	$1,000.00	$1,002.73	$0.14	.25%
Select Class	$1,000.00	$1,002.70	$0.17	.30%
Administrative Class	$1,000.00	$1,002.64	$0.23	.40%
Service Class	$1,000.00	$1,002.55	$0.32	.55%
Premier Class	$1,000.00	$1,002.50	$0.37	.65%

***

****	Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 366.

^	The date investment operations commenced.

MUNICIPAL PORTFOLIO


Actual	Beginning Account Value 9/10/07^{^}	Ending Account Value 9/30/07	Expenses Paid During the Period* 9/10/07 - 9/30/07**	Expense Ratio
Institutional Class	$1,000.00	$1,002.20	$0.09	.15%
Cash Management Class	$1,000.00	$1,002.10	$0.11	.20%
Capital Class	$1,000.00	$1,002.10	$0.14	.25%
Select Class	$1,000.00	$1,002.10	$0.17	.30%
Administrative Class	$1,000.00	$1,002.00	$0.23	.40%
Service Class	$1,000.00	$1,001.90	$0.32	.55%
Premier Class	$1,000.00	$1,001.90	$0.37	.65%

Hypothetical (5% annual return before expenses)****
Institutional Class	$1,000.00	$1,002.78	$0.09	.15%
Cash Management Class	$1,000.00	$1,002.75	$0.11	.20%
Capital Class	$1,000.00	$1,002.73	$0.14	.25%
Select Class	$1,000.00	$1,002.70	$0.17	.30%
Administrative Class	$1,000.00	$1,002.64	$0.23	.40%
Service Class	$1,000.00	$1,002.55	$0.32	.55%
Premier Class	$1,000.00	$1,002.50	$0.37	.65%

***

****	Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 366.

^	The date investment operations commenced.

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Statements of Assets and Liabilities (Unaudited)

Institutional Liquidity Funds

(000's omitted except per share amounts)


	MONEY MARKET PORTFOLIO		PRIME PORTFOLIO
	September 30, 2007		September 30, 2007
Assets
Investment in corresponding Master Series, at value (Note A)	$92,043		$9,041,281
Receivable from administrator-net (Note B)	17		-
Prepaid expenses and other assets	-		-

Total Assets	92,060		9,041,281


Liabilities
Dividends payable	34		4,691
Payable to administrator-net (Note B)	-		102
Accrued expenses and other payables	72		12

Total Liabilities	106		4,805

Net Assets at value	$91,954		$9,036,476


Net Assets consist of:
Paid-in capital	$91,959		$9,036,657
Distributions in excess of net investment income	-		(123	)
Accumulated net realized gains (losses) on investment	(5	)	(58	)

Net Assets at value	$91,954		$9,036,476


Net Assets
Institutional Class	$80,088		$8,542,491
Cash Management Class	6,866		121,879
Capital Class	1,000		1,000
Select Class	1,000		1,000
Administrative Class	1,000		11,742
Service Class	1,000		1,000
Premier Class	1,000		357,364

Shares Outstanding ($.001 par value; unlimited shares authorized)
Institutional Class	80,093		8,542,664
Cash Management Class	6,866		121,880
Capital Class	1,000		1,000
Select Class	1,000		1,000
Administrative Class	1,000		11,742
Service Class	1,000		1,000
Premier Class	1,000		357,372

Net Asset Value, offering and redemption price per share
Institutional Class	$1.00		$1.00
Cash Management Class	1.00		1.00
Capital Class	1.00		1.00
Select Class	1.00		1.00
Administrative Class	1.00		1.00
Service Class	1.00		1.00
Premier Class	1.00		1.00

See Notes to Financial Statements


GOVERNMENT PORTFOLIO		GOVERNMENT RESERVES PORTFOLIO	TREASURY PORTFOLIO	TAX-EXEMPT PORTFOLIO	MUNICIPAL PORTFOLIO
September 30, 2007		September 30, 2007	September 30, 2007	September 30, 2007	September 30, 2007

$670,187		$299,136	$756,754	$140,411	$129,699
15		22	20	6	10
29		57	-	-	-

670,231		299,215	756,774	140,417	129,709



973		374	1,114	156	14
-		-	-	-	-
-		-	60	8	9

973		374	1,174	164	23

$669,258		$298,841	$755,600	$140,253	$129,686



$669,262		$298,840	$755,550	$140,253	$129,686
-		-	-	-	-
(4	)	1	50	-	-

$669,258		$298,841	$755,600	$140,253	$129,686



$659,698		$292,841	$749,600	$134,253	$123,686
1,000		1,000	1,000	1,000	1,000
1,000		1,000	1,000	1,000	1,000
3,524		1,000	1,000	1,000	1,000
2,036		1,000	1,000	1,000	1,000
1,000		1,000	1,000	1,000	1,000
1,000		1,000	1,000	1,000	1,000


659,702		292,840	749,550	134,253	123,686
1,000		1,000	1,000	1,000	1,000
1,000		1,000	1,000	1,000	1,000
3,524		1,000	1,000	1,000	1,000
2,036		1,000	1,000	1,000	1,000
1,000		1,000	1,000	1,000	1,000
1,000		1,000	1,000	1,000	1,000


$1.00		$1.00	$1.00	$1.00	$1.00
1.00		1.00	1.00	1.00	1.00
1.00		1.00	1.00	1.00	1.00
1.00		1.00	1.00	1.00	1.00
1.00		1.00	1.00	1.00	1.00
1.00		1.00	1.00	1.00	1.00
1.00		1.00	1.00	1.00	1.00

Statements of Operations (Unaudited)

Institutional Liquidity Funds

(000's omitted)


	MONEY MARKET PORTFOLIO		PRIME PORTFOLIO
	For the Six Months Ended September 30, 2007		For the Six Months Ended September 30, 2007
Investment Income
Investment income from corresponding Master Series (Note A)	$3,571		$134,110
Expenses from corresponding Master Series (Notes A & B)	(68	)	(2,310	)

Net investment income from corresponding Master Series	$3,503		$131,800


Expenses:
Administration fees (Note B)	66		2,485
Distribution fees (Note B):
Service Class	1		1
Premier Class	1		316
Audit fees	9		4
Legal fees	17		17
Registration and filing fees	51		81
Shareholder reports	12		16
Shareholder servicing agent fees (Note B):
Institutional Class	1		1
Cash Management Class	-		9
Capital Class	1		1
Select Class	1		1
Administrative Class	1		14
Service Class	1		1
Premier Class	1		316
Trustees' fees and expenses	3		3
Accounting Fees	10		10
Miscellaneous	3		5

Total expenses	179		3,281

Expenses reimbursed by administrator (Note B)	(107	)	-
Expenses waived by administrator (Note B)	(66	)	(2,447	)

Total net expenses	6		834

Net investment income (loss)	3,497		130,966


Realized and Unrealized Gain (Loss) on Investments (Note A):
Net gain (loss) on investments from corresponding Master Series	(5	)	(52	)

Net increase (decrease) in net assets resulting from operations	$3,492		$130,914

See Notes to Financial Statements


GOVERNMENT PORTFOLIO		GOVERNMENT RESERVES PORTFOLIO		TREASURY PORTFOLIO		TAX-EXEMPT PORTFOLIO		MUNICIPAL PORTFOLIO
For the Six Months Ended September 30, 2007		Period from July 9, 2007 (Commencement of Operations) to September 30, 2007		For the Six Months Ended September 30, 2007		Period from September 10, 2007 (Commencement of Operations) to September 30, 2007		Period from September 10, 2007 (Commencement of Operations) to September 30, 2007

$11,526		$2,784		$12,071		$182		$178
(237	)	(87	)	(274	)	(5	)	(7	)

$11,289		$2,697		$11,797		$177		$171



220		54		244		5		5

1		-		1		-		-
1		1		1		-		-
9		6		5		1		2
17		8		17		2		2
6		8		87		2		2
15		8		13		3		3

8		1		8		-		-
-		-		-		-		-
1		-		1		-		-
2		-		1		-		-
12		1		1		-		-
1		1		1		-		-
1		-		1		-		-
3		2		3		1		-
10		-		10		-		-
3		-		7		-		1

310		90		401		14		15

(89	)	(65	)	(179	)	(8	)	(12	)
(220	)	(54	)	(244	)	(2	)	(2	)

1		(29	)	(22	)	4		1

11,288		2,726		11,819		173		170



(4	)	1		50		-		-

$11,284		$2,727		$11,869		$173		$170

Statements of Changes in Net Assets

Institutional Liquidity Funds

(000's omitted)


	MONEY MARKET PORTFOLIO
	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006 (Commencement of Operations) to March 31, 2007
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss)	$3,497		$1,492
Net realized gain (loss) on investments from corresponding Master Series	(5	)	-
Net increase (decrease) in net assets resulting from operations	3,492		1,492

Distributions to Shareholders From (Note A):
Net investment income
Institutional Class	(3,325	)	(1,405	)
Cash Management Class	(47	)	(15	)
Capital Class	(26	)	(15	)
Select Class	(26	)	(15	)
Administrative Class	(25	)	(14	)
Service Class	(24	)	(14	)
Premier Class	(24	)	(14	)
Total distributions to shareholders	(3,497	)	(1,492	)

From Portfolio Share Transactions (Note D):
Proceeds from shares sold in initial capitalization
Institutional Class	-		-
Proceeds from shares sold
Institutional Class	2,494,396		818,316
Cash Management Class	75,345		1,000
Capital Class	-		1,000
Select Class	-		1,000
Administrative Class	-		1,000
Service Class	-		1,000
Premier Class	-		1,000
Proceeds from reinvestment of dividends and distributions
Institutional Class	1,891		1,309
Cash Management Class	21		-
Select Class	-		-
Administrative Class	-		-
Premier Class	-		-
Payments for shares redeemed
Institutional Class	(2,575,196	)	(660,623	)
Cash Management Class	(69,500	)	-
Select Class	-		-
Administrative Class	-		-
Premier Class	-		-
Net increase (decrease) from Portfolio share transactions	(73,043	)	165,002
Net Increase (Decrease) in Net Assets	(73,048	)	165,002

Net Assets:
Beginning of period	165,002
End of period	$91,954		$165,002
Distributions in excess of net investment income at end of period	$-		$-

See Notes to Financial Statements


PRIME PORTFOLIO				GOVERNMENT PORTFOLIO
Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006 (Commencement of Operations) to March 31, 2007		Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006 (Commencement of Operations) to March 31, 2007


$130,966		$14,020		$11,288		$6,556
(52	)	(6	)	(4	)	-
130,914		14,014		11,284		6,556



(123,746	)	(13,921	)	(10,892	)	(6,456	)
(906	)	(15	)	(25	)	(15	)
(26	)	(15	)	(25	)	(15	)
(26	)	(15	)	(69	)	(15	)
(291	)	(14	)	(230	)	(28	)
(24	)	(14	)	(24	)	(14	)
(6,070	)	(27	)	(23	)	(13	)
(131,089	)	(14,021	)	(11,288	)	(6,556	)



-		-		-		100

36,161,761		6,998,533		3,984,938		3,470,000
120,000		1,000		-		1,000
-		1,000		-		1,000
-		1,000		8,115		1,000
43,413		1,000		295,300		2,814
-		1,000		-		1,000
2,335,674		12,304		-		1,000

94,787		9,616		3,493		214
880		-		-		-
-		-		44		-
265		-		34		14
5,366		11		-		-

(30,133,392	)	(4,588,641	)	(3,823,043	)	(2,976,000	)
-		-		-		-
-		-		(5,635	)	-
(32,936	)	-		(295,750	)	(376	)
(1,992,008	)	(3,975	)	-		-
6,603,810		2,432,848		167,496		501,766
6,603,635		2,432,841		167,492		501,766


2,432,841		-		501,766		-
$9,036,476		$2,432,841		$669,258		$501,766
$(123	)	$-		$-		$-

Statements of Changes in Net Assets


	GOVERNMENT RESERVES PORTFOLIO
	Period from July 9, 2007 (Commencement of Operations) to September 30, 2007 (Unaudited)
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss)	$2,726
Net realized gain (loss) on investments from corresponding Master Series	1
Net increase (decrease) in net assets resulting from operations	2,727

Distributions to Shareholders From (Note A):
Net investment income
Institutional Class	(2,660	)
Cash Management Class	(12	)
Capital Class	(11	)
Select Class	(11	)
Administrative Class	(11	)
Service Class	(11	)
Premier Class	(10	)
Total distributions to shareholders	(2,726	)

From Portfolio Share Transactions (Note D):
Proceeds from shares sold in initial capitalization
Institutional Class	-
Proceeds from shares sold
Institutional Class	995,956
Cash Management Class	1,000
Capital Class	1,000
Select Class	1,000
Administrative Class	1,000
Service Class	1,000
Premier Class	1,000
Proceeds from reinvestment of dividends and distributions
Institutional Class	1,503
Cash Management Class	-
Select Class	-
Administrative Class	-
Premier Class	-
Payments for shares redeemed
Institutional Class	(704,619	)
Cash Management Class	-
Select Class	-
Administrative Class	-
Premier Class	-
Net increase (decrease) from Portfolio share transactions	298,840
Net Increase (Decrease) in Net Assets	298,841

Net Assets:
Beginning of period	-
End of period	$298,841
Distributions in excess of net investment income at end of period	$-

See Notes to Financial Statements


TREASURY PORTFOLIO				TAX-EXEMPT PORTFOLIO		MUNICIPAL PORTFOLIO
Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006 (Commencement of Operations) to March 31, 2007		Period from September 10, 2007 (Commencement of Operations) to September 30, 2007 (Unaudited)		Period from September 10, 2007 (Commencement of Operations) to September 30, 2007 (Unaudited)


$11,819		$6,750		$173		$170
50		-		-		-
11,869		6,750		173		170



(11,679	)	(6,667	)	(161	)	(158	)
(24	)	(14	)	(2	)	(2	)
(24	)	(15	)	(2	)	(2	)
(24	)	(14	)	(2	)	(2	)
(23	)	(14	)	(2	)	(2	)
(23	)	(13	)	(2	)	(2	)
(22	)	(13	)	(2	)	(2	)
(11,819	)	(6,750	)	(173	)	(170	)



-		-		-		-

4,259,909		3,323,735		134,236		123,971
-		1,000		1,000		1,000
-		1,000		1,000		1,000
-		1,000		1,000		1,000
-		1,000		1,000		1,000
-		1,000		1,000		1,000
-		1,000		1,000		1,000

3,442		560		17		156
-		-		-		-
-		-		-		-
-		-		-		-
-		-		-		-

(3,962,096	)	(2,876,000	)	-		(441	)
-		-		-		-
-		-		-		-
-		-		-		-
-		-		-		-
301,255		454,295		140,253		129,686
301,305		454,295		140,253		129,686


454,295		-		-		-
$755,600		$454,295		$140,253		$129,686
$-		$-		$-		$-

Notes to Financial Statements Institutional Liquidity Funds (Unaudited)

Note A-Summary of Significant Accounting Policies:

General: Money Market Portfolio ("Money Market"), Prime Portfolio ("Prime"), Government Portfolio ("Government"), Government Reserves Portfolio ("Government Reserves"), Treasury Portfolio ("Treasury"), Tax-Exempt Portfolio ("Tax-Exempt"), and Municipal Portfolio ("Municipal") (individually a "Portfolio," collectively, the "Portfolios"), are separate operating series of Lehman Brothers Institutional Liquidity Funds (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated October 1, 2004. The Trust is registered as a diversified, open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933 (the "1933 Act"), as amended. Money Market, Prime, and Treasury had no operations until December 18, 2006, other than matters relating to their organization and registration of shares under the 1933 Act. Government had no operations until December 18, 2006, other than the matters relating to its organization and the sale to Neuberger Berman Management Inc., the Portfolio's investment manager ("Management"), on December 4, 2006 of 100,000 shares of beneficial interest of the Institutional Class for $100,000 ($1.00 per share). Government Reserves had no operations until July 9, 2007, other than matters relating to its organization and registration of shares under the 1933 Act. Tax-Exempt and Municipal had no operations until September 10, 2007, other than matters relating to their organization and registration of shares under the 1933 Act. Each Portfolio offers Institutional Class shares, Cash Management Class shares, Capital Class shares, Select Class shares, Administrative Class shares, Service Class shares, and Premier Class shares. The Board of Trustees of the Trust (the "Board") may establish additional series or classes of shares without the approval of shareholders.

The assets of each Portfolio belong only to that Portfolio, and the liabilities of each Portfolio are borne solely by that Portfolio and no other series of the Trust.

Each Portfolio seeks to achieve its investment objective by investing all of its net investable assets in a Master Series of Institutional Liquidity Trust (each a "Master Series," collectively, the "Master Series") that has an investment objective identical to, and a name similar to, that of each respective Portfolio. Money Market invests in Money Market Master Series, Prime invests in Prime Master Series, Government invests in Government Master Series, Government Reserves invests in Government Reserves Master Series (commencement of operations July 9, 2007), Treasury invests in Treasury Master Series, Tax-Exempt invests in Tax-Exempt Master Series (commencement of operations September 10, 2007), and Municipal invests in Municipal Master Series (commencement of operations September 10, 2007). The value of each Portfolio's investment in its corresponding Master Series reflects the Portfolio's proportionate interest in the net assets of its corresponding Master Series (3.52% for Money Market, 64.22% for Prime, 65.50% for Government, 100.00% for Government Reserves, 100.00% for Treasury, 6.52% for Tax-Exempt, and 22.51% for Municipal, at September 30, 2007). The performance of each Portfolio is directly affected by the performance of its corresponding Master Series. The financial statements of the Master Series, including the Schedules of Investments, are included elsewhere in this report and should be read in conjunction with the Portfolios' financial statements.

It is the policy of the Portfolios to maintain a continuous net asset value per share of $1.00; the Portfolios have adopted certain investment, valuation, and distribution policies, which conform to general industry practice, to enable them to do so. However, there is no assurance the Portfolios will be able to maintain a stable net asset value per share. Each of these Portfolios complies with Rule 2a-7 of the 1940 Act.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.

2	Portfolio valuation: Each Portfolio records its investment in its corresponding Master Series at value. Investment securities held by the corresponding Master Series are valued as indicated in the notes following the Master Series' Schedules of Investments.

Income tax information: The Portfolios are treated as separate entities for U.S. federal income tax purposes. It is the policy of Money Market, Prime, Government, and Treasury to continue to qualify (and the intention of Government Reserves, Tax-Exempt, and Municipal to qualify) as a regulated investment company by complying with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. Therefore, no federal income or excise tax provision is required.

Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Master Series, timing differences and differing characterization of distributions made by each Portfolio as a whole.

As determined on March 31, 2007, permanent differences resulting from different book and tax accounting for distribution redesignations and non-deductible 12b-1 fees were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value or net asset value per share of each Portfolio.

The tax character of distributions paid during the period ended March 31, 2007 was as follows:


	Distributions Paid From:
	Ordinary Income	Total
	2007	2007
Money Market	$1,492,525	$1,492,525
Prime	14,021,217	14,021,217
Government	6,555,363	6,555,363
Treasury	6,750,442	6,750,442

As of March 31, 2007, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:


	Undistributed Ordinary Income	Loss Carryforwards and Deferrals		Total
Money Market	$113,102	$(110	)	$112,992
Prime	1,999,670	(6,250	)	1,993,420
Government	2,064,101	-		2,064,101
Treasury	2,037,384	-		2,037,384

The difference between book and tax basis distributable earnings is attributable primarily to timing differences of distribution payments and post October loss deferrals.

To the extent each Portfolio's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of each Portfolio not to distribute such gains. As determined on March 31, 2007, the Portfolios did not have unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains.

Under current tax law, certain net capital losses realized after October 31 within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the period ended March 31, 2007, the Portfolios elected to defer the following net capital losses arising between December 18, 2006 and March 31, 2007:


Money Market	$(110	)
Prime	(6,250	)
Government	-
Treasury	-

Distributions to shareholders: Each Portfolio earns income, net of expenses, daily on its investment in its corresponding Master Series. It is the policy of each Portfolio to declare distributions from net investment income on each business day; such distributions are paid or reinvested monthly. Distributions from net realized capital gains, if any, will be made annually. Income distributions and capital gain distributions to shareholders are recorded on the ex-date.

Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses of the Trust that are not directly attributed to a Portfolio are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributed to a Portfolio or the Trust, are allocated among the Portfolios and the other investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly.

Each Portfolio bears its proportionate share of its corresponding Master Series' expenses. Each Portfolio's expenses (other than those allocated to a class of the Portfolio) are allocated proportionally each day among the classes based on the relative net assets of each class. Expenses attributable to a specific class are allocated to that class.

6	Organization expenses: Costs incurred by certain Portfolios in connection with their organization, which amounted to approximately $26,456, $12,766, and $28,731 for Government Reserves, Tax-Exempt, and Municipal, respectively, have been borne by Management.

7	Other: All net investment income and realized and unrealized capital gains and losses of a Master Series are allocated pro rata among its respective Portfolio and any other investors in the Master Series (including any other investment companies), if any.

Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.

Note B-Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:

Each Portfolio retains Management as its administrator under an Administration Agreement. Each Portfolio pays Management an administration fee at the annual rate of 0.10% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under the agreement. Each Portfolio (except Tax-Exempt and Municipal) indirectly pays for investment management services through its investment in its corresponding Master Series at the annual rate of 0.08% of average daily net assets. Tax-Exempt and Municipal indirectly pay for investment management services through its investment in its corresponding Master Series at the annual rate of 0.25% of the first $500 million of that Master Series' average daily net assets, 0.225% of the next $500 million, 0.20% of the next $500 million, 0.175% of the next $500 million, and 0.15% of average daily net assets in excess of $2 billion. As a result of a waiver at the Master Series level, Tax-Exempt and Municipal indirectly received a management fee waiver so that the management fee was 0.08% of its average daily net assets, resulting in a reduction of expenses from the corresponding Master Series of $6,084 and $7,531 for Tax-Exempt and Municipal, respectively (see Note B of Notes to Financial Statements of the Master Series).

For the Service and Premier Class of each Portfolio, Management acts as agent in arranging for the sale of class shares without commission and bears advertising and promotion expenses. The Board has adopted distribution plans (each a "Plan", collectively, the "Plans") with respect to these classes, pursuant to Rule 12b-1 under the 1940 Act. The Plans provide that, as compensation for administrative and other services provided to these classes, Management's activities and expenses related to the sale and distribution of these classes, and ongoing services provided to investors in these classes, Management receives from each of these classes a fee at the annual rate of 0.15% of such Service Class' and 0.25% of such Premier Class' average daily net assets. Management receives this amount to provide distribution and shareholder servicing for those classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year maybe more or less than the cost of distribution and other services provided to that class. NASD rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plans comply with those rules.

The Trust, on behalf of each Portfolio, has entered into a Shareholder Servicing Agreement with Management with respect to the Cash Management, Capital, Select, Administrative, Service and Premier Class of each Portfolio ("Shareholder Servicing Agreement"). Pursuant to the Shareholder Servicing Agreement, Management provides to the shareholders and beneficial owners of the Cash Management, Capital, Select, Administrative, Service and Premier Class varying levels of shareholder services, some or all of which may be provided by banks, trust companies or other institutions that provide such shareholder services to their accounts ("Accounts") and their account holders and which have entered into a service agreement with Management (each, a "Service Organization"). Management may compensate a Service Organization for the shareholder services it provides to Accounts and account holders pursuant to such service agreement. The Shareholder Servicing Agreement requires each of the Cash Management, Capital, Select, Administrative, Service and Premier Class to compensate Management for the shareholder services provided to that Class. For the shareholder services provided pursuant to the Shareholder Servicing Agreement, Management receives from the Cash Management, Capital, Select, Administrative, Service and Premier Class of each Portfolio a fee at the annual rate of 0.05%, 0.10%, 0.15%, 0.25%, 0.25%, 0.25%, respectively, of such Class' average daily net assets.

Management has contractually undertaken to forgo current payment of fees and/or reimburse each respective class of each Portfolio for its operating expenses plus its pro rata portion of its corresponding Master Series' operating expenses (including the fees payable to Management but excluding interest, taxes, brokerage commissions and extraordinary expenses) ("Operating Expenses") which exceed the expense limitation as detailed in the following table:


	Contractual Expense Limitation⁽¹⁾	Expiration	Contractual Reimbursement/ Waiver of Fees from Management for the Six Months Ended September 30, 2007⁽³⁾	Voluntary Reimbursement from Management for the Six Months Ended September 30, 2007⁽²⁾
Money Market Institutional Class	0.20%	3/31/10	$99,999	$63,004
Money Market Cash Management Class	0.25%	3/31/10	1,522	902
Money Market Capital Class	0.30%	3/31/10	1,054	499
Money Market Select Class	0.35%	3/31/10	1,054	499
Money Market Administrative Class	0.45%	3/31/10	1,054	499
Money Market Service Class	0.60%	3/31/10	1,054	499
Money Market Premier Class	0.70%	3/31/10	1,054	499
Prime Institutional Class	0.20%	3/31/10	-	2,299,952


	Contractual Expense Limitation⁽¹⁾	Expiration	Contractual Reimbursement/ Waiver of Fees from Management for the Six Months Ended September 30, 2007⁽³⁾	Voluntary Reimbursement from Management for the Six Months Ended September 30, 2007⁽²⁾
Prime Cash Management Class	0.25%	3/31/10	$-	$16,217
Prime Capital Class	0.30%	3/31/10	2	499
Prime Select Class	0.35%	3/31/10	2	499
Prime Administrative Class	0.45%	3/31/10	-	5,754
Prime Service Class	0.60%	3/31/10	2	499
Prime Premier Class	0.70%	3/31/10	-	123,166
Government Institutional Class	0.20%	3/31/10	86,256	211,868
Government Cash Management Class	0.25%	3/31/10	222	499
Government Capital Class	0.30%	3/31/10	222	499
Government Select Class	0.35%	3/31/10	695	1,390
Government Administrative Class	0.45%	3/31/10	1,407	4,667
Government Service Class	0.60%	3/31/10	222	499
Government Premier Class	0.70%	3/31/10	222	499
Government Reserves Institutional Class	0.20%	3/31/10	63,009	53,065
Government Reserves Cash Management Class	0.25%	3/31/10	340	230
Government Reserves Capital Class	0.30%	3/31/10	340	230
Government Reserves Select Class	0.35%	3/31/10	340	230
Government Reserves Administrative Class	0.45%	3/31/10	340	230
Government Reserves Service Class	0.60%	3/31/10	340	230
Government Reserves Premier Class	0.70%	3/31/10	340	230
Treasury Institutional Class	0.20%	3/31/10	175,766	241,505
Treasury Cash Management Class	0.25%	3/31/10	466	499
Treasury Capital Class	0.30%	3/31/10	466	499
Treasury Select Class	0.35%	3/31/10	466	499
Treasury Administrative Class	0.45%	3/31/10	466	499
Treasury Service Class	0.60%	3/31/10	466	499
Treasury Premier Class	0.70%	3/31/10	466	499
Tax-Exempt Institutional Class	0.20%	3/31/10	5,085	2,188
Tax-Exempt Cash Management Class	0.25%	3/31/10	505	29
Tax-Exempt Capital Class	0.30%	3/31/10	505	29
Tax-Exempt Select Class	0.35%	3/31/10	505	29
Tax-Exempt Administrative Class	0.45%	3/31/10	505	29
Tax-Exempt Service Class	0.60%	3/31/10	505	29
Tax-Exempt Premier Class	0.70%	3/31/10	505	29
Municipal Institutional Class	0.20%	3/31/10	9,505	2,088
Municipal Cash Management Class	0.25%	3/31/10	416	29
Municipal Capital Class	0.30%	3/31/10	416	29
Municipal Select Class	0.35%	3/31/10	416	29


	Contractual Expense Limitation⁽¹⁾	Expiration	Contractual Reimbursement/ Waiver of Fees from Management for the Six Months Ended September 30, 2007⁽³⁾	Voluntary Reimbursement from Management for the Six Months Ended September 30, 2007⁽²⁾
Municipal Administrative Class	0.45%	3/31/10	$416	$29
Municipal Service Class	0.60%	3/31/10	416	29
Municipal Premier Class	0.70%	3/31/10	416	29

(1)	Expense limitation per annum of the respective class' average daily net assets.

(2)

In addition to the contractual limitations listed above, Management has voluntarily reimbursed each class of Money Market, Prime, Government, Government Reserves, and Treasury an additional 0.10% per annum of the class' average daily net assets. Management has voluntarily reimbursed each class of Tax-Exempt and Municipal an additional 0.05% per annum of the class' average daily net assets.

(3)	Period from July 9, 2007 (Commencement of Operations) to September 30, 2007 for Government Reserves. Period from September 10, 2007 (Commencement of Operations) to September 30, 2007 for Tax-Exempt and Municipal.

Each class of each Portfolio has agreed to repay Management for fees and expenses forgone and/or its excess Operating Expenses previously reimbursed by Management, pursuant to a contractual expense limitation, so long as its annual Operating Expenses during that period do not exceed its expense limitation and the repayments are made within three years after the year in which Management issued the reimbursement or waived fees.

During the six months ended September 30, 2007, there was no repayment to Management under this agreement. At September 30, 2007, contingent liabilities to Management under the agreement were as follows:


	Expiring in:
	2010	2011	Total
Money Market Institutional Class	$137,243	$99,999	$237,242
Money Market Cash Management Class	4,787	1,522	6,309
Money Market Capital Class	4,787	1,054	5,841
Money Market Select Class	4,787	1,054	5,841
Money Market Administrative Class	4,787	1,054	5,841
Money Market Service Class	4,787	1,054	5,841
Money Market Premier Class	4,787	1,054	5,841
Prime Institutional Class	165,552	-	165,552
Prime Cash Management Class	885	-	885
Prime Capital Class	885	2	887
Prime Select Class	885	2	887
Prime Administrative Class	885	-	885
Prime Service Class	885	2	887
Prime Premier Class	1,102	-	1,102
Government Institutional Class	87,201	86,256	173,457
Government Cash Management Class	321	222	543
Government Capital Class	321	222	543
Government Select Class	321	695	1,016


	Expiring in:
	2010	2011	Total
Government Administrative Class	$482	$1,407	$1,889
Government Service Class	321	222	543
Government Premier Class	321	222	543
Government Reserves Institutional Class	-	63,009	63,009
Government Reserves Cash Management Class	-	340	340
Government Reserves Capital Class	-	340	340
Government Reserves Select Class	-	340	340
Government Reserves Administrative Class	-	340	340
Government Reserves Service Class	-	340	340
Government Reserves Premier Class	-	340	340
Treasury Institutional Class	188,154	175,766	363,920
Treasury Cash Management Class	529	466	995
Treasury Capital Class	529	466	995
Treasury Select Class	529	466	955
Treasury Administrative Class	529	466	955
Treasury Service Class	529	466	955
Treasury Premier Class	529	466	955
Tax-Exempt Institutional Class	-	5,085	5,085
Tax-Exempt Cash Management Class	-	505	505
Tax-Exempt Capital Class	-	505	505
Tax-Exempt Select Class	-	505	505
Tax-Exempt Administrative Class	-	505	505
Tax-Exempt Service Class	-	505	505
Tax-Exempt Premier Class	-	505	505
Municipal Institutional Class	-	9,505	9,505
Municipal Cash Management Class	-	416	416
Municipal Capital Class	-	416	416
Municipal Select Class	-	416	416
Municipal Administrative Class	-	416	416
Municipal Service Class	-	416	416
Municipal Premier Class	-	416	416

Management and Lehman Brothers Asset Management LLC ("LBAM"), sub-adviser to each Master Series, are wholly-owned subsidiaries of Lehman Brothers Holdings Inc., a publicly-owned holding company. Several individuals who are officers and/or trustees of the Trust are also employees of LBAM and/or Management.

Each Portfolio also has a distribution agreement with Management with respect to each class of shares. Management receives no compensation under it and no commissions for sales or redemptions of shares of beneficial interest of each Portfolio, but receives fees from the Premier Class and Service Class under their Plans, as described above.

Each Master Series has an expense offset arrangement in connection with its custodian contract. For the six months ended September 30, 2007, the impact of this arrangement was a reduction of expenses of $2,367, $82,957, $13,127, $491, $21,185, $6,256 and $4,950 for Money Market, Prime, Government, Government Reserves, Treasury, Tax-Exempt, and Municipal, respectively.

Note C-Investment Transactions:

During the six months ended September 30, 2007, contributions and withdrawals in each Portfolio's investment in its corresponding Master Series were as follows:


(000's omitted)	Contributions	Withdrawals
Money Market	$2,193,291	$2,269,787
Prime	20,718,483	14,243,682
Government	1,286,577	1,131,524
Government Reserves⁽¹⁾	434,590	138,152
Treasury	997,527	708,859
Tax-Exempt⁽²⁾	140,235	1
Municipal⁽²⁾	129,971	443

(1)	Period from July 9, 2007 (Commencement of Operations) to September 30, 2007.

(2)	Period from September 10, 2007 (Commencement of Operations) to September 30, 2007.

Note D-Portfolio Share Transactions:

Share activity at $1.00 per share for the six months ended September 30, 2007 and the period ended March 31, 2007 was as follows:


	For the Six Months Ended September 30, 2007							For the Period Ended March 31, 2007
(000's omitted)	Shares Sold	Shares Issued on Reinvestment of Dividends and Distributions	Shares Redeemed		Total		Initial Capitalization	Shares Sold	Shares Issued on Reinvestment of Dividends and Distributions	Shares Redeemed		Total
Money Market:
Institutional Class	2,494,396	1,891	(2,575,196	)	(78,909	)	-	818,316	1,309	(660,623	)	159,002
Cash Management Class	75,345	21	(69,500	)	5,866		-	1,000	-	-		1,000
Capital Class	-	-	-		-		-	1,000	-	-		1,000
Select Class	-	-	-		-		-	1,000	-	-		1,000
Administrative Class	-	-	-		-		-	1,000	-	-		1,000
Service Class	-	-	-		-		-	1,000	-	-		1,000
Premier Class	-	-	-		-		-	1,000	-	-		1,000
Prime:
Institutional Class	36,161,761	94,787	(30,133,392	)	6,123,156		-	6,998,533	9,616	(4,588,641	)	2,419,508
Cash Management Class	120,000	880	-		120,880		-	1,000	-	-		1,000
Capital Class	-	-	-		-		-	1,000	-	-		1,000
Select Class	-	-	-		-		-	1,000	-	-		1,000


	For the Six Months Ended September 30, 2007							For the Period Ended March 31, 2007
	Shares Sold	Shares Issued on Reinvestment of Dividends and Distributions	Shares Redeemed		Total		Initial Capitalization	Shares Sold	Shares Issued on Reinvestment of Dividends and Distributions	Shares Redeemed		Total
Administrative Class	43,413	265	(32,936	)	10,742		-	1,000	-	-		1,000
Service Class	-	-	-		-		-	1,000	-	-		1,000
Premier Class	2,335,674	5,366	(1,992,008	)	349,032		-	12,304	11	(3,975	)	8,340
Government:
Institutional Class	3,984,938	3,493	(3,823,043	)	165,388		100	3,470,000	214	(2,976,000	)	494,314
Cash Management Class	-	-	-		-		-	1,000	-	-		1,000
Capital Class	-	-	-		-		-	1,000	-	-		1,000
Select Class	8,115	44	(5,635	)	2,524		-	1,000	-	-		1,000
Administrative Class	295,300	34	(295,750	)	(416	)	-	2,814	14	(376	)	2,452
Service Class	-	-	-		-		-	1,000	-	-		1,000
Premier Class	-	-	-		-		-	1,000	-	-		1,000
Government Reserves⁽¹⁾:
Institutional Class	995,956	1,503	(704,619	)	292,840		-	-	-	-		-
Cash Management Class	1,000	-	-		1,000		-	-	-	-		-
Capital Class	1,000	-	-		1,000		-	-	-	-		-
Select Class	1,000	-	-		1,000		-	-	-	-		-
Administrative Class	1,000	-	-		1,000		-	-	-	-		-
Service Class	1,000	-	-		1,000		-	-	-	-		-
Premier Class	1,000	-	-		1,000		-	-	-	-		-
Treasury:
Institutional Class	4,259,909	3,442	(3,962,096	)	301,255		-	3,323,735	560	(2,876,000	)	448,295
Cash Management Class	-	-	-		-		-	1,000	-	-		1,000
Capital Class	-	-	-		-		-	1,000	-	-		1,000
Select Class	-	-	-		-		-	1,000	-	-		1,000
Administrative Class	-	-	-		-		-	1,000	-	-		1,000
Service Class	-	-	-		-		-	1,000	-	-		1,000
Premier Class	-	-	-		-		-	1,000	-	-		1,000
Tax-Exempt⁽²⁾:
Institutional Class	134,236	17	-		134,253		-	-	-	-		-
Cash Management Class	1,000	-	-		1,000		-	-	-	-		-
Capital Class	1,000	-	-		1,000		-	-	-	-		-
Select Class	1,000	-	-		1,000		-	-	-	-		-
Administrative Class	1,000	-	-		1,000		-	-	-	-		-
Service Class	1,000	-	-		1,000		-	-	-	-		-
Premier Class	1,000	-	-		1,000		-	-	-	-		-


	For the Six Months Ended September 30, 2007						For the Period Ended March 31, 2007
	Shares Sold	Shares Issued on Reinvestment of Dividends and Distributions	Shares Redeemed		Total	Initial Capitalization	Shares Sold	Shares Issued on Reinvestment of Dividends and Distributions	Shares Redeemed	Total
Municipal⁽²⁾:
Institutional Class	123,971	156	(441	)	123,686	-	-	-	-	-
Cash Management Class	1,000	-	-		1,000	-	-	-	-	-
Capital Class	1,000	-	-		1,000	-	-	-	-	-
Select Class	1,000	-	-		1,000	-	-	-	-	-
Administrative Class	1,000	-	-		1,000	-	-	-	-	-
Service Class	1,000	-	-		1,000	-	-	-	-	-
Premier Class	1,000	-	-		1,000	-	-	-	-	-

(1)	Period from July 9, 2007 (Commencement of Operations) to September 30, 2007.

(2)	Period from September 10, 2007 (Commencement of Operations) to September 30, 2007.

Note E-Recent Accounting Pronouncement:

In September 2006, Financial Accounting Standards Board ("FASB") issued FASB Statement No. 157, "Fair Value Measurement" ("SFAS 157"), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Management believes the adoption of SFAS 157 will not have a material impact on the Portfolios' financial position or results of operations.

Note F-Unaudited Financial Information:

The financial information included in this interim report is taken from the records of each Portfolio without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.

Financial Highlights

Money Market Portfolio^†

The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. They should be read in conjunction with their corresponding Master Series' Financial Statements and notes thereto.

Institutional Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0264		.0152
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0264		.0152

Less Distributions From:
Net Investment Income	(.0264	)	(.0152	)
Total Distributions	(.0264	)	(.0152	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.67	%**	+1.53	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$80.1		$159.0
Ratio of Gross Expenses to Average Net Assets^#	.10	%*	.10	%*
Ratio of Net Expenses to Average Net Assets^‡	.10	%*	.10	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.28	%*	5.26	%*

See Notes to Financial Highlights

Cash Management Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0261		.0150
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0261		.0150

Less Distributions From:
Net Investment Income	(.0261	)	(.0150	)
Total Distributions	(.0261	)	(.0150	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.64	%**	+1.51	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$6.9		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.15	%*	.15	%*
Ratio of Net Expenses to Average Net Assets^‡	.15	%*	.15	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.28	%*	5.21	%*

Capital Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0259		.0149
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0259		.0149

Less Distributions From:
Net Investment Income	(.0259	)	(.0149	)
Total Distributions	(.0259	)	(.0149	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.62	%**	+1.50	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.20	%*	.20	%*
Ratio of Net Expenses to Average Net Assets^‡	.20	%*	.20	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.19	%*	5.16	%*

See Notes to Financial Highlights

Select Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0256		.0148
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0256		.0148

Less Distributions From:
Net Investment Income	(.0256	)	(.0148	)
Total Distributions	(.0256	)	(.0148	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.59	%**	+1.48	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.25	%*	.25	%*
Ratio of Net Expenses to Average Net Assets^‡	.25	%*	.25	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.14	%*	5.12	%*

Administrative Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0251		.0145
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0251		.0145

Less Distributions From:
Net Investment Income	(.0251	)	(.0145	)
Total Distributions	(.0251	)	(.0145	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.54	%**	+1.45	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.35	%*	.35	%*
Ratio of Net Expenses to Average Net Assets^‡	.35	%*	.35	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.04	%*	5.02	%*

See Notes to Financial Highlights

Service Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0244		.0140
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0244		.0140

Less Distributions From:
Net Investment Income	(.0244	)	(.0140	)
Total Distributions	(.0244	)	(.0140	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.46	%**	+1.41	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.50	%*	.50	%*
Ratio of Net Expenses to Average Net Assets^‡	.50	%*	.50	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.89	%*	4.87	%*

Premier Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0239		.0138
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0239		.0138

Less Distributions From:
Net Investment Income	(.0239	)	(.0138	)
Total Distributions	(.0239	)	(.0138	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.41	%**	+1.38	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.60	%*	.60	%*
Ratio of Net Expenses to Average Net Assets^‡	.60	%*	.60	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.79	%*	4.77	%*

See Notes to Financial Highlights

Financial Highlights

Prime Portfolio^†

Institutional Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0264		.0151
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0264		.0151

Less Distributions From:
Net Investment Income	(.0264	)	(.0151	)
Total Distributions	(.0264	)	(.0151	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.66	%**	+1.52	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$8,542.5		$2,419.5
Ratio of Gross Expenses to Average Net Assets^#	.10	%*	.10	%*
Ratio of Net Expenses to Average Net Assets^‡	.10	%*	.10	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.30	%*	5.25	%*

See Notes to Financial Highlights

Cash Management Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0261		.0150
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0261		.0150

Less Distributions From:
Net Investment Income	(.0261	)	(.0150	)
Total Distributions	(.0261	)	(.0150	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.64	%**	+1.51	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$121.9		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.15	%*	.15	%*
Ratio of Net Expenses to Average Net Assets^‡	.15	%*	.15	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.28	%*	5.20	%*

Capital Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0259		.0149
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0259		.0149

Less Distributions From:
Net Investment Income	(.0259	)	(.0149	)
Total Distributions	(.0259	)	(.0149	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.61	%**	+1.49	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.20	%*	.20	%*
Ratio of Net Expenses to Average Net Assets^‡	.20	%*	.20	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.18	%*	5.15	%*

See Notes to Financial Highlights

Select Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0256		.0147
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0256		.0147

Less Distributions From:
Net Investment Income	(.0256	)	(.0147	)
Total Distributions	(.0256	)	(.0147	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.59	%**	+1.48	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.25	%*	.25	%*
Ratio of Net Expenses to Average Net Assets^‡	.25	%*	.25	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.13	%*	5.10	%*

Administrative Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0251		.0144
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0251		.0144

Less Distributions From:
Net Investment Income	(.0251	)	(.0144	)
Total Distributions	(.0251	)	(.0144	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.54	%**	+1.45	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$11.7		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.35	%*	.35	%*
Ratio of Net Expenses to Average Net Assets^‡	.35	%*	.35	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.03	%*	5.00	%*

See Notes to Financial Highlights

Service Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0244		.0140
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0244		.0140

Less Distributions From:
Net Investment Income	(.0244	)	(.0140	)
Total Distributions	(.0244	)	(.0140	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.46	%**	+1.41	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.50	%*	.50	%*
Ratio of Net Expenses to Average Net Assets^‡	.50	%*	.50	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.88	%*	4.85	%*

Premier Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0239		.0137
Net Gains or Losses on Securities	(.0000	)	(.0000	)
Total From Investment Operations	.0239		.0137

Less Distributions From:
Net Investment Income	(.0239	)	(.0137	)
Total Distributions	(.0239	)	(.0137	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.41	%**	+1.38	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$357.4		$8.3
Ratio of Gross Expenses to Average Net Assets^#	.60	%*	.60	%*
Ratio of Net Expenses to Average Net Assets^‡	.60	%*	.60	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.79	%*	4.75	%*

See Notes to Financial Highlights

Financial Highlights

Government Portfolio^†

Institutional Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0257		.0149
Net Gains or Losses on Securities	(.0000	)	-
Total From Investment Operations	.0257		.0149

Less Distributions From:
Net Investment Income	(.0257	)	(.0149	)
Total Distributions	(.0257	)	(.0149	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.59	%**	+1.50	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$659.7		$494.3
Ratio of Gross Expenses to Average Net Assets^#	.10	%*	.10	%*
Ratio of Net Expenses to Average Net Assets^‡	.10	%*	.10	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.14	%*	5.19	%*

See Notes to Financial Highlights

Cash Management Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0254		.0148
Net Gains or Losses on Securities	(.0000	)	-
Total From Investment Operations	.0254		.0148

Less Distributions From:
Net Investment Income	(.0254	)	(.0148	)
Total Distributions	(.0254	)	(.0148	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.57	%**	+1.49	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.15	%*	.15	%*
Ratio of Net Expenses to Average Net Assets^‡	.15	%*	.15	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.10	%*	5.13	%*

Capital Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0252		.0147
Net Gains or Losses on Securities	(.0000	)	-
Total From Investment Operations	.0252		.0147

Less Distributions From:
Net Investment Income	(.0252	)	(.0147	)
Total Distributions	(.0252	)	(.0147	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.54	%**	+1.47	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.20	%*	.20	%*
Ratio of Net Expenses to Average Net Assets^‡	.20	%*	.20	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.05	%*	5.08	%*

See Notes to Financial Highlights

Select Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0249		.0145
Net Gains or Losses on Securities	(.0000	)	-
Total From Investment Operations	.0249		.0145

Less Distributions From:
Net Investment Income	(.0249	)	(.0145	)
Total Distributions	(.0249	)	(.0145	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.52	%**	+1.46	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$3.5		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.25	%*	.25	%*
Ratio of Net Expenses to Average Net Assets^‡	.25	%*	.25	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.98	%*	5.03	%*

Administrative Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0244		.0142
Net Gains or Losses on Securities	(.0000	)	-
Total From Investment Operations	.0244		.0142

Less Distributions From:
Net Investment Income	(.0244	)	(.0142	)
Total Distributions	(.0244	)	(.0142	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.47	%**	+1.43	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$2.0		$2.5
Ratio of Gross Expenses to Average Net Assets^#	.35	%*	.35	%*
Ratio of Net Expenses to Average Net Assets^‡	.35	%*	.35	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.92	%*	4.94	%*

See Notes to Financial Highlights

Service Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0237		.0138
Net Gains or Losses on Securities	(.0000	)	-
Total From Investment Operations	.0237		.0138

Less Distributions From:
Net Investment Income	(.0237	)	(.0138	)
Total Distributions	(.0237	)	(.0138	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.39	%**	+1.39	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.50	%*	.50	%*
Ratio of Net Expenses to Average Net Assets^‡	.50	%*	.50	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.75	%*	4.78	%*

Premier Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0232		.0135
Net Gains or Losses on Securities	(.0000	)	-
Total From Investment Operations	.0232		.0135

Less Distributions From:
Net Investment Income	(.0232	)	(.0135	)
Total Distributions	(.0232	)	(.0135	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.34	%**	+1.36	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.60	%*	.60	%*
Ratio of Net Expenses to Average Net Assets^‡	.60	%*	.60	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.65	%*	4.68	%*

See Notes to Financial Highlights

Financial Highlights

Government Reserves Portfolio^†

The following tables include selected data for a share outstanding throughout the period and other performance information derived from the Financial Statements. They should be read in conjunction with their corresponding Master Series' Financial Statements and notes thereto.

Institutional Class


	Period from July 9, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0116
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0116

Less Distributions From:
Net Investment Income	(.0116	)
Total Distributions	(.0116	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+1.17	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$292.8
Ratio of Gross Expenses to Average Net Assets^#	.10	%*
Ratio of Net Expenses to Average Net Assets^‡	.10	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	5.01	%*

See Notes to Financial Highlights

Cash Management Class


	Period from July 9, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0115
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0115

Less Distributions From:
Net Investment Income	(.0115	)
Total Distributions	(.0115	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+1.15	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.15	%*
Ratio of Net Expenses to Average Net Assets^‡	.15	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.99	%*

Capital Class


	Period from July 9, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0114
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0114

Less Distributions From:
Net Investment Income	(.0114	)
Total Distributions	(.0114	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+1.14	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.20	%*
Ratio of Net Expenses to Average Net Assets^‡	.20	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.94	%*

See Notes to Financial Highlights

Select Class


	Period from July 9, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0113
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0113

Less Distributions From:
Net Investment Income	(.0113	)
Total Distributions	(.0113	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+1.13	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.25	%*
Ratio of Net Expenses to Average Net Assets^‡	.25	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.89	%*

Administrative Class


	Period from July 9, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0110
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0110

Less Distributions From:
Net Investment Income	(.0110	)
Total Distributions	(.0110	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+1.11	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.35	%*
Ratio of Net Expenses to Average Net Assets^‡	.35	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.79	%*

See Notes to Financial Highlights

Service Class


	Period from July 9, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0107
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0107

Less Distributions From:
Net Investment Income	(.0107	)
Total Distributions	(.0107	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+1.07	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.50	%*
Ratio of Net Expenses to Average Net Assets^‡	.50	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.64	%*

Premier Class


	Period from July 9, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0105
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0105

Less Distributions From:
Net Investment Income	(.0105	)
Total Distributions	(.0105	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+1.05	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.60	%*
Ratio of Net Expenses to Average Net Assets^‡	.60	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.54	%*

See Notes to Financial Highlights

Financial Highlights

Treasury Portfolio^†

Institutional Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0245		.0146
Net Gains or Losses on Securities	.0000		.0000
Total From Investment Operations	.0245		.0146

Less Distributions From:
Net Investment Income	(.0245	)	(.0146	)
Total Distributions	(.0245	)	(.0146	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.47	%**	+1.47	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$749.6		$448.3
Ratio of Gross Expenses to Average Net Assets^#	.10	%*	.10	%*
Ratio of Net Expenses to Average Net Assets^‡	.10	%*	.10	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.84	%*	5.08	%*

See Notes to Financial Highlights

Cash Management Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0242		.0144
Net Gains or Losses on Securities	.0000		.0000
Total From Investment Operations	.0242		.0144

Less Distributions From:
Net Investment Income	(.0242	)	(.0144	)
Total Distributions	(.0242	)	(.0144	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.45	%**	+1.45	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.15	%*	.15	%*
Ratio of Net Expenses to Average Net Assets^‡	.15	%*	.15	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.86	%*	5.00	%*

Capital Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0240		.0143
Net Gains or Losses on Securities	.0000		.0000
Total From Investment Operations	.0240		.0143

Less Distributions From:
Net Investment Income	(.0240	)	(.0143	)
Total Distributions	(.0240	)	(.0143	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.42	%**	+1.44	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.20	%*	.20	%*
Ratio of Net Expenses to Average Net Assets^‡	.20	%*	.20	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.81	%*	4.95	%*

See Notes to Financial Highlights

Select Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0237		.0141
Net Gains or Losses on Securities	.0000		.0000
Total From Investment Operations	.0237		.0141

Less Distributions From:
Net Investment Income	(.0237	)	(.0141	)
Total Distributions	(.0237	)	(.0141	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.40	%**	+1.42	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.25	%*	.25	%*
Ratio of Net Expenses to Average Net Assets^‡	.25	%*	.25	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.76	%*	4.80	%*

Administrative Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0232		.0139
Net Gains or Losses on Securities	.0000		.0000
Total From Investment Operations	.0232		.0139

Less Distributions From:
Net Investment Income	(.0232	)	(.0139	)
Total Distributions	(.0232	)	(.0139	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.35	%**	+1.39	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.35	%*	.35	%*
Ratio of Net Expenses to Average Net Assets^‡	.35	%*	.35	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.66	%*	4.80	%*

See Notes to Financial Highlights

Service Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0225		.0134
Net Gains or Losses on Securities	.0000		.0000
Total From Investment Operations	.0225		.0134

Less Distributions From:
Net Investment Income	(.0225	)	(.0134	)
Total Distributions	(.0225	)	(.0134	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.27	%**	+1.35	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.50	%*	.50	%*
Ratio of Net Expenses to Average Net Assets^‡	.50	%*	.50	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.51	%*	4.65	%*

Premier Class


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Net Asset Value, Beginning of Period	$1.0000		$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0220		.0131
Net Gains or Losses on Securities	.0000		.0000
Total From Investment Operations	.0220		.0131

Less Distributions From:
Net Investment Income	(.0220	)	(.0131	)
Total Distributions	(.0220	)	(.0131	)
Net Asset Value, End of Period	$1.0000		$1.0000
Total Return^†^†	+2.22	%**	+1.32	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0		$1.0
Ratio of Gross Expenses to Average Net Assets^#	.60	%*	.60	%*
Ratio of Net Expenses to Average Net Assets^‡	.60	%*	.60	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	4.41	%*	4.56	%*

See Notes to Financial Highlights

Financial Highlights

Tax-Exempt Portfolio^†

Institutional Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0021
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0021

Less Distributions From:
Net Investment Income	(.0021	)
Total Distributions	(.0021	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.21	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$134.3
Ratio of Gross Expenses to Average Net Assets^#	.15	%*
Ratio of Net Expenses to Average Net Assets^‡	.15	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.71	%*

See Notes to Financial Highlights

Cash Management Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0021
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0021

Less Distributions From:
Net Investment Income	(.0021	)
Total Distributions	(.0021	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.21	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.20	%*
Ratio of Net Expenses to Average Net Assets^‡	.20	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.62	%*

Capital Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0021
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0021

Less Distributions From:
Net Investment Income	(.0021	)
Total Distributions	(.0021	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.21	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.25	%*
Ratio of Net Expenses to Average Net Assets^‡	.25	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.57	%*

See Notes to Financial Highlights

Select Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0020
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0020

Less Distributions From:
Net Investment Income	(.0020	)
Total Distributions	(.0020	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.20	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.30	%*
Ratio of Net Expenses to Average Net Assets^‡	.30	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.52	%*

Administrative Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0020
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0020

Less Distributions From:
Net Investment Income	(.0020	)
Total Distributions	(.0020	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.20	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.40	%*
Ratio of Net Expenses to Average Net Assets^‡	.40	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.42	%*

See Notes to Financial Highlights

Service Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0019
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0019

Less Distributions From:
Net Investment Income	(.0019	)
Total Distributions	(.0019	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.19	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.55	%*
Ratio of Net Expenses to Average Net Assets^‡	.55	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.27	%*

Premier Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0018
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0018

Less Distributions From:
Net Investment Income	(.0018	)
Total Distributions	(.0018	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.18	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.65	%*
Ratio of Net Expenses to Average Net Assets^‡	.65	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.17	%*

See Notes to Financial Highlights

Financial Highlights

Municipal Portfolio^†

Institutional Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0022
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0022

Less Distributions From:
Net Investment Income	(.0022	)
Total Distributions	(.0022	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.22	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$123.7
Ratio of Gross Expenses to Average Net Assets^#	.15	%*
Ratio of Net Expenses to Average Net Assets^‡	.15	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.78	%*

See Notes to Financial Highlights

Cash Management Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0021
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0021

Less Distributions From:
Net Investment Income	(.0021	)
Total Distributions	(.0021	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.21	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.20	%*
Ratio of Net Expenses to Average Net Assets^‡	.20	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.69	%*

Capital Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0021
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0021

Less Distributions From:
Net Investment Income	(.0021	)
Total Distributions	(.0021	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.21	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.25	%*
Ratio of Net Expenses to Average Net Assets^‡	.25	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.64	%*

See Notes to Financial Highlights

Select Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0021
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0021

Less Distributions From:
Net Investment Income	(.0021	)
Total Distributions	(.0021	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.21	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.30	%*
Ratio of Net Expenses to Average Net Assets^‡	.30	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.59	%*

Administrative Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0020
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0020

Less Distributions From:
Net Investment Income	(.0020	)
Total Distributions	(.0020	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.20	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.40	%*
Ratio of Net Expenses to Average Net Assets^‡	.40	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.49	%*

See Notes to Financial Highlights

Service Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0019
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0019

Less Distributions From:
Net Investment Income	(.0019	)
Total Distributions	(.0019	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.19	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.55	%*
Ratio of Net Expenses to Average Net Assets^‡	.55	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.34	%*

Premier Class


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Net Asset Value, Beginning of Period	$1.0000
Income From Investment Operations:
Net Investment Income (Loss)	.0019
Net Gains or Losses on Securities	.0000
Total From Investment Operations	.0019

Less Distributions From:
Net Investment Income	(.0019	)
Total Distributions	(.0019	)
Net Asset Value, End of Period	$1.0000
Total Return^†^†	+0.19	%**

Ratios/Supplemental Data
Net Assets, End of Period (in millions)	$1.0
Ratio of Gross Expenses to Average Net Assets^#	.65	%*
Ratio of Net Expenses to Average Net Assets^‡	.65	%*
Ratio of Net Investment Income (Loss) to Average Net Assets	3.24	%*

See Notes to Financial Highlights

Notes to Financial Highlights Institutional Liquidity Funds

(Unaudited)

†	The per share amounts and ratios which are shown reflect income and expenses, including the Portfolio's proportionate share of its corresponding Master Series' income and expenses.

††

Total return based on per share net asset value reflects the effects of changes in net asset value on the performance of the Portfolio during the fiscal period and assumes dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal may fluctuate and shares when redeemed may be worth more or less than original cost. Total return would have been lower if Management had not reimbursed and/or waived certain expenses (see Note B of Notes to Financial Statements of Institutional Liquidity Funds).

‡	After reimbursement and/or waiver of certain expenses by Management (see Note B of Notes to Financial Statements of Institutional Liquidity Funds). Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:


	Six Months Ended September 30, 2007⁽²⁾		Period Ended March 31, 2007⁽¹⁾
Money Market Institutional Class	0.36	%	0.71	%
Money Market Cash Management Class	0.42		1.91
Money Market Capital Class	0.51		1.96
Money Market Select Class	0.56		2.01
Money Market Administrative Class	0.66		2.11
Money Market Service Class	0.81		2.26
Money Market Premier Class	0.91		2.36
Prime Institutional Class	0.20		0.26
Prime Cash Management Class	0.24		0.56
Prime Capital Class	0.30		0.61
Prime Select Class	0.35		0.66
Prime Administrative Class	0.45		0.76
Prime Service Class	0.60		0.91
Prime Premier Class	0.70		0.89
Government Institutional Class	0.24		0.27
Government Cash Management Class	0.29		0.36
Government Capital Class	0.34		0.41
Government Select Class	0.40		0.46
Government Administrative Class	0.48		0.53
Government Service Class	0.64		0.71
Government Premier Class	0.74		0.81
Government Reserves Institutional Class	0.32		-
Government Reserves Cash Management Class	0.40		-
Government Reserves Capital Class	0.45		-
Government Reserves Select Class	0.50		-


	Six Months Ended September 30, 2007⁽²⁾		Period Ended March 31, 2007⁽¹⁾
Government Reserves Administrative Class	0.60	%	-	%
Government Reserves Service Class	0.75		-
Government Reserves Premier Class	0.85		-
Treasury Institutional Class	0.27		0.34
Treasury Cash Management Class	0.34		0.43
Treasury Capital Class	0.39		0.48
Treasury Select Class	0.44		0.53
Treasury Administrative Class	0.54		0.63
Treasury Service Class	0.69		0.78
Treasury Premier Class	0.79		0.88
Tax-Exempt Institutional Class	0.45		-
Tax-Exempt Cash Management Class	1.26		-
Tax-Exempt Capital Class	1.31		-
Tax-Exempt Select Class	1.36		-
Tax-Exempt Administrative Class	1.46		-
Tax-Exempt Service Class	1.61		-
Tax-Exempt Premier Class	1.71		-
Municipal Institutional Class	0.59		-
Municipal Cash Management Class	1.14		-
Municipal Capital Class	1.19		-
Municipal Select Class	1.24		-
Municipal Administrative Class	1.34		-
Municipal Service Class	1.49		-
Municipal Premier Class	1.59		-

(1)

Period from December 18, 2006 (Commencement of Operations) to March 31, 2007.

(2)

Period from July 9, 2007 (Commencement of Operations) to September 30, 2007 for Government Reserves. Period from September 10, 2007 (Commencement of Operations) to September 30, 2007 for Tax-Exempt and Municipal.

^	The date investment operations commenced.

*	Annualized.

**	Not annualized.

#	The Portfolio is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.

Schedule of Investments Money Market Master Series (Unaudited)



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

U.S. Government Agency Securities (1.2%)
$30,000	Federal Home Loan Bank, Bonds, 5.38%, due 4/9/08	AGY	AGY	$30,000

Certificates of Deposit (9.4%)
65,000	Barclays Bank NY, Yankee CD, 5.35% - 5.39%, due 1/31/08 - 5/9/08	P-1	A-1+	65,000
40,000	Calyon NY, Yankee CD, 5.09%, due 1/25/08	P-1	A-1+	40,000
45,000	Deutsche Bank AG, Euro CD, 5.31%, due 2/22/08	P-1	A-1+	44,994
30,000	HSBC Bank PLC, Euro CD, 5.33%, due 1/30/08	P-1	A-1+	30,002
40,000	Royal Bank of Scotland, Yankee CD, 5.06%, due 3/27/08	P-1	A-1+	40,001
25,000	Societe Generale NA, Yankee CD, 5.63%, due 12/11/07	P-1	A-1+	25,001
	Total Certificates of Deposit			244,998

Floating Rate Certificates of Deposit (1.3%)^µ
20,000	Calyon NY, Floating Rate Yankee CD, 4.63%, due 10/1/07	P-1	A-1+	19,999
15,000	Credito Italiano NY, Floating Rate Yankee CD, 5.38% & 5.70%, due 10/25/07 & 12/13/07	P-1	A-1	15,003
	Total Floating Rate Certificates of Deposit			35,002

Commercial Paper (39.6%)

Asset Backed (16.2%)
25,000	Atlantic Asset Securitization Corp., 6.05%, due 10/15/07	P-1	A-1	24,941	^ñ
25,000	Chariot Funding LLC, 5.35%, due 10/1/07	P-1	A-1	25,000	^ñ
50,845	Chariot Funding LLC, 5.36%, due 10/3/07	P-1	A-1	50,830
35,000	Crown Point Capital Co., 5.10% & 5.28%, due 10/25/07 & 2/7/08	P-1	A-1	34,729
25,000	Dakota Notes, 5.26%, due 10/26/07	P-1	A-1	24,909
20,000	Fairway Finance, 6.25%, due 10/10/07	P-1	A-1	19,969	^ñ
25,000	Lexington Parker Capital Corp., 5.08%, due 2/8/08	P-1	A-1	24,541
29,527	Old Line Funding LLC, 5.29%, due 10/9/07	P-1	A-1+	29,492	^ñ
64,061	Regency Markets No. 1 LLC, 6.35%, due 10/5/07	P-1	A-1	64,016	^ñ
55,102	Thunder Bay Funding, Inc., 6.05% & 6.08%, due 10/9/07 & 10/12/07	P-1	A-1	55,015	^ñ
70,000	Yorktown Capital, 5.15% & 5.25%, due 10/1/07 & 11/28/07	P-1	A-1+	69,627
				423,069

Banking (23.4%)
75,000	Bank of America NA, 5.24% & 5.47%, due 10/31/07 & 12/14/07	P-1	A-1+	74,329
25,000	Bank of Ireland, 5.18%, due 11/26/07	P-1	A-1	24,799
50,000	BNP Paribas NY, 5.51%, due 12/12/07	P-1	A-1+	49,449
45,000	Caisse Nationale d'Epargne, 5.25%, due 10/26/07	P-1	A-1+	44,836

See Notes to Schedule of Investments



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$55,000	Danske Corp., 5.09% & 5.14%, due 10/26/07 & 10/29/07	P-1	A-1+	$54,798
25,000	HBOS Treasury Services PLC, 5.53%, due 12/17/07	P-1	A-1+	24,704
47,114	ING Funding LLC, 5.40%, due 10/17/07	P-1	A-1+	47,001
15,000	JP Morgan Chase, 4.99%, due 3/3/08	P-1	A-1+	14,680
40,000	Nationwide Building Society, 5.17%, due 10/11/07	P-1	A-1	39,943
15,000	Picaros Funding PLC, 5.75%, due 10/12/07	P-1	A-1+	14,974	^ñ
60,000	Picaros Funding PLC, 5.17% & 5.21%, due 12/17/07 & 2/21/08	P-1	A-1+	59,050
45,000	Societe Generale NA, 5.25% & 5.69%, due 11/5/07 & 12/10/07	P-1	A-1+	44,654
15,000	Swedbank Mortgage AB, 5.45%, due 12/14/07	P-1	A-1	14,832
30,000	UBS Finance, Inc., 5.46% & 5.54%, due 1/14/08 & 3/10/08	P-1	A-1+	29,405
50,000	UBS Finance, Inc., 5.55%, due 2/27/08	P-1	A-1+	48,916	^ñ
25,000	Westpac Banking Corp., 5.17%, due 11/14/07	P-1	A-1+	24,842
				611,212
	Total Commercial Paper			1,034,281

Corporate Debt Securities (3.4%)

Asset Backed (2.8%)
25,000	Cullinan Finance Corp., Medium-Term Notes, 5.36%, due 11/28/07	P-1	A-1+	25,000	^ñ
50,000	Park Granada LLC, Notes, 5.33%, due 10/31/07	P-1	A-1+	49,778	^ñ
				74,778

Banking (0.6%)
15,000	Citigroup, Inc., Senior Notes, 3.50%, due 2/1/08	P-1	A-1+	14,907
	Total Corporate Debt Securities			89,685

Floating Rate Corporate Debt Securities (30.4%)^µ

Asset Backed (7.3%)
35,000	American Honda Finance Corp., Floating Rate Medium-Term Notes, 5.36%, due 11/6/07	P-1	A-1	35,000	^ñ
25,000	K2 (USA) LLC, Guaranteed Floating Rate Medium-Term Notes, 5.68%, due 12/10/07	P-1	A-1+	24,998	^ñ
14,900	LP Pinewood SPV, Floating Rate Notes, 5.13%, due 10/4/07	P-1		14,900
60,000	Parkland (USA) LLC, Floating Rate Medium-Term Notes, 4.83% - 5.56%, due 10/1/07 - 12/27/07	P-1	A-1+	59,997	^ñ
10,880	Schreiber Capital Co., Floating Rate Bonds, 5.13%, due 10/4/07	P-1		10,880
20,000	Tango Finance Corp., Floating Rate Medium-Term Notes, 4.81%, due 10/1/07	P-1	A-1+	19,999	^ñ
25,000	Toyota Motor Credit Corp., Floating Rate Medium-Term Notes, Ser. B, 4.99%, due 10/1/07	P-1	A-1+	25,000
				190,774

See Notes to Schedule of Investments



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Banking (15.3%)
$25,000	Allied Irish Banks PLC, Floating Rate Notes, 5.48%, due 10/19/07	P-1	A-1	$25,000	^ñ
20,000	Banco Espanol, Senior Unsubordinated Floating Rate Notes, 5.35%, due 10/18/07	P-1	A-1+	20,000	^ñ
25,000	Bank of Ireland, Unsecured Floating Rate Medium-Term Notes, 5.49%, due 10/19/07	P-1	A-1	25,000
40,000	Fortis Bank NY, Floating Rate Notes, 5.34%, due 10/19/07	P-1	A-1+	40,000	^ñ
15,000	HBOS Treasury Services PLC, Guaranteed Floating Rate Medium-Term Bank Notes, 5.79%, due 10/9/07	P-1	A-1+	15,000
10,000	HSBC Finance Corp., Floating Rate Medium-Term Notes, 5.40%, due 10/4/07	P-1	A-1+	10,000
15,000	HSBC Finance Corp., Floating Rate Notes, 5.19%, due 10/24/07	P-1	A-1+	15,000
15,000	HSBC Finance Corp., Senior Unsecured Floating Rate Notes, 5.82%, due 12/17/07	P-1	A-1+	14,981
55,000	JP Morgan Master Note, 5.33%, due 10/1/07	P-1	A-1+	55,000
45,000	La Caixa, Unsubordinated Floating Rate Notes, 5.37%, due 10/23/07	P-1	A-1+	45,000	^ñ
50,000	Royal Bank of Canada, Floating Rate Medium-Term Notes, 5.71%, due 10/1/07	P-1	A-1+	50,000
24,000	Unicredito Italiano PLC, Guaranteed Floating Rate Medium-Term Notes, 5.84%, due 10/9/07	P-1	A-1	24,000
15,000	Unicredito Italiano PLC, Guaranteed Floating Rate Bank Notes, 5.77%, due 10/15/07	P-1	A-1	15,000
45,000	Wells Fargo & Co., Floating Rate Notes, 5.83%, due 10/15/07	P-1	A-1+	45,000	^ñ
				398,981

Conglomerate (0.9%)
25,000	General Electric Capital Corp., Floating Rate Medium-Term Notes, Ser. A, 5.70%, due 12/3/07	P-1	A-1+	24,992

Financial Services (6.9%)
10,000	American Express Bank FSB, Floating Rate Bank Notes, 5.62%, due 10/18/07	P-1	A-1	10,002
45,000	Bear Stearns Master Note, 5.25%, due 10/1/07	P-1	A-1	45,000
25,000	Goldman Sachs Group, Senior Unsecured Medium-Term Notes, 5.36%, due 10/25/07	P-1	A-1+	25,000	^ñ
35,000	Merrill Lynch & Co., Senior Unsecured Floating Rate Notes, 5.75%, due 10/18/07	P-1	A-1+	35,000
10,000	Merrill Lynch & Co., Floating Rate Medium-Term Notes, Ser. C, 5.79%, due 12/17/07	P-1	A-1+	9,992
40,000	Morgan Stanley, Senior Floating Rate Notes, 5.08%, due 10/1/07	P-1	A-1	40,000

See Notes to Schedule of Investments



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$15,000	Morgan Stanley, Senior Floating Rate Notes, 5.85%, due 10/3/07	P-1	A-1+	$15,000
				179,994
	Total Floating Rate Corporate Debt Securities			794,741

Promissory Notes (1.3%)^µ
35,000	Goldman Sachs Group, 5.18% & 5.56%, due 10/1/07	P-1	A-1+	35,000

Asset-Backed Securities (0.3%)
8,503	Capital Auto Receivables Asset Trust, Ser. 2007-1, Class A1, 5.32%, due 5/15/08	P-1		8,503	^ñ
553	CIT Equipment Collateral, Ser. 2006-VT2, Class A1, 5.34%, due 11/20/07	P-1	A-1+	553
	Total Asset-Backed Securities			9,056

Floating Rate Asset-Backed Securities (1.7%)^µ
43,780	Westpac Securitisation Trust, Ser. 2007-1G, Class A1, 5.47%, due 11/21/07	P-1	A-1+	43,780	^ñ

Repurchase Agreements (11.0%)
86,000	Goldman Sachs Repurchase Agreement, 5.08%, due 10/1/07, dated 9/28/07, Maturity Value $86,036,407, Collateralized by $349,900,000, Fannie Mae, 1.00% - 7.00%, due 5/25/34 - 6/25/36 and $131,247,773, Freddie Mac, 0.00% - 6.00%, due 8/15/31 - 9/15/35 (Collateral Value $88,897,750)			86,000
50,000	Goldman Sachs Repurchase Agreement, 5.35%, due 10/1/07, dated 9/28/07, Maturity Value $50,022,292, Collateralized by $76,598,779, Structured Adjustable Rate Mortgage Loan, 6.17%, due 1/25/36 (Collateral Value $51,500,000)			50,000
150,000	Merrill Lynch Repurchase Agreement, 5.10%, due 10/1/07, dated 9/28/07, Maturity Value $150,063,750, Collateralized by $112,583,842, Fannie Mae, 4.50% - 6.00%, due 1/1/22 - 1/1/36 and $95,008,000, Freddie Mac, 4.50% & 5.50%, due 3/1/19 & 5/1/23 (Collateral Value $153,000,370)			150,000
	Total Repurchase Agreements			286,000

	Total Investments (99.6%)			2,602,543
	Cash, receivables and other assets, less liabilities (0.4%)			11,206
	Total Net Assets (100.0%)			$2,613,749

See Notes to Schedule of Investments

Schedule of Investments Prime Master Series (Unaudited)



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

U.S. Government Agency Securities (0.4%)
$60,000	Federal Home Loan Bank, Bonds, 5.38%, due 4/9/08	AGY	AGY	$60,000

Certificates of Deposit (7.6%)
150,000	Barclays Bank NY, Yankee CD, 5.35% - 5.41%, due 12/17/07 - 6/2/08	P-1	A-1+	150,000
83,000	BNP Paribas NY, Yankee CD, 5.30%, due 11/5/07	P-1	A-1+	83,000
160,000	Calyon NY, Yankee CD, 5.09%, due 1/25/08	P-1	A-1+	160,000
150,000	Citibank, Yankee CD, 5.32%, due 10/18/07	P-1	A-1+	150,000
50,000	HBOS Treasury Services PLC, Yankee CD, 5.50%, due 2/12/08	P-1	A-1+	50,003
360,000	Royal Bank of Scotland, Yankee CD, 5.06% - 5.62%, due 12/12/07 - 3/27/08	P-1	A-1+	360,037
30,000	Societe Generale NA, Yankee CD, 5.63%, due 12/11/07	P-1	A-1+	30,000
90,000	Unicredito Italiano NY, Yankee CD, 5.60%, due 1/7/08	P-1	A-1	90,035
	Total Certificates of Deposit			1,073,075

Floating Rate Certificates of Deposit (1.8%)^µ
50,000	Barclays Bank NY, Floating Rate Yankee CD, 5.62% & 5.71%, due 10/16/07 & 12/5/07	P-1	A-1+	49,998
75,000	BNP Paribas NY, Floating Rate Yankee CD, 5.66%, due 10/3/07	P-1	A-1+	75,000
50,000	Calyon NY, Floating Rate Yankee CD, 4.63%, due 10/1/07	P-1	A-1+	49,996
52,000	Natixis, Floating Rate Yankee CD, 5.30%, due 10/1/07	P-1	A-1+	51,997
25,000	SunTrust Bank, Floating Rate CD, 5.47%, due 10/19/07	P-1	A-1+	25,000
	Total Floating Rate Certificates of Deposit			251,991

Commercial Paper (40.1%)

Asset Backed (28.0%)
386,900	Amsterdam Funding Corp., 5.20% - 6.25%, due 10/12/07 - 11/9/07	P-1	A-1	385,629
374,823	Atlantic Asset Securitization Corp., 5.15% - 6.05%, due 10/10/07 - 12/21/07	P-1	A-1	373,354
25,078	Barton Capital Corp., 5.25%, due 10/1/07	P-1	A-1+	25,078	^ñ
25,000	Cancara Asset Securitization Ltd., 5.22%, due 12/21/07	P-1	A-1+	24,706
370,000	Chariot Funding LLC, 5.22% - 5.36%, due 10/1/07 - 11/7/07	P-1	A-1	369,256
50,222	Chariot Funding LLC, 5.25%, due 10/25/07	P-1	A-1	50,046	^ñ
150,000	Charta LLC, 6.10%, due 10/23/07	P-1	A-1	149,441
25,000	Ciesco LLC, 5.25%, due 10/10/07	P-1	A-1+	24,967
276,398	Crown Point Capital Co., 5.10% - 6.35%, due 10/2/07 - 2/7/08	P-1	A-1	274,995
35,000	Dakota Notes, 5.26%, due 10/26/07	P-1	A-1	34,872
109,857	Edison Asset Securitization LLC, 5.60%, due 11/15/07	P-1	A-1+	109,088

See Notes to Schedule of Investments



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$12,375	Erasmus Capital Corp., 5.15%, due 10/11/07	P-1	A-1+	$12,357
225,000	Fairway Finance, 6.30% & 6.35%, due 10/1/07 & 10/11/07	P-1	A-1	224,825	^ñ
50,000	Fairway Finance, 5.20%, due 11/14/07	P-1	A-1	49,682
150,000	Galleon Capital LLC, 5.25%, due 10/1/07	P-1	A-1	150,000	^ñ
130,000	Grampian Funding LLC, 5.22%, due 12/19/07	P-1	A-1+	128,511
51,000	Jupiter Securitization Corp., 6.15%, due 11/9/07	P-1	A-1	50,660
115,000	Lexington Parker Capital Corp., 5.08% - 5.24%, due 10/17/07 - 2/8/08	P-1	A-1	113,782
50,000	Mont Blanc Capital Corp., 5.25%, due 10/23/07	P-1	A-1+	49,840
19,012	North Sea Funding BV LLC, 5.16%, due 10/2/07	P-1	A-1+	19,009
95,293	Old Line Funding LLC, 5.95% & 6.20%, due 10/16/07 & 12/3/07	P-1	A-1+	94,695
250,000	Park Avenue Receivables Co. LLC, 5.32%, due 10/2/07	P-1	A-1	249,963
50,000	Park Granada LLC, 5.33%, due 10/31/07	P-1	A-1+	49,778
292,347	Regency Markets No. 1 LLC, 5.25% - 6.35%, due 10/2/07 - 10/31/07	P-1	A-1	291,939	^ñ
20,000	Thames Asset Securitization LLC, 5.25%, due 10/4/07	P-1	A-1	19,991
283,352	Thunder Bay Funding, Inc., 5.25% - 6.30%, due 10/1/07 - 10/12/07	P-1	A-1	282,974	^ñ
333,104	Yorktown Capital, 5.18% - 6.18%, due 10/1/07 - 11/9/07	P-1	A-1+	332,024
				3,941,462

Banking (12.1%)
213,005	Bank of America NA, 5.09% - 5.47%, due 10/12/07 - 12/14/07	P-1	A-1+	211,396
40,000	Barclays U.S. Funding Corp., 5.35%, due 3/11/08	P-1	A-1+	39,037
100,000	BNP Paribas NY, 5.51%, due 12/12/07	P-1	A-1+	98,898
50,000	Danske Corp., 5.09%, due 10/29/07	P-1	A-1+	49,802
65,000	Dexia Bank, 5.43%, due 3/17/08	P-1	A-1+	65,006
90,000	ING Funding LLC, 5.48%, due 11/16/07	P-1	A-1+	89,370
85,000	JP Morgan Chase, 4.99%, due 3/3/08	P-1	A-1+	83,185
410,000	Picaros Funding PLC, 5.17% - 5.87%, due 10/12/07 - 2/21/08	P-1	A-1+	407,750
314,464	Societe Generale NA, 5.08% - 5.61%, due 10/29/07 - 12/10/07	P-1	A-1+	312,486
356,000	UBS Finance, Inc., 4.96% - 5.46%, due 10/12/07 - 3/27/08	P-1	A-1+	348,940
				1,705,870
	Total Commercial Paper			5,647,332

Floating Rate Commercial Paper (0.2%)^µ

Financial Services (0.2%)
25,000	Morgan Stanley, 5.38%, due 10/1/07	P-1	A-1+	25,000

Time Deposits (14.3%)
250,000	Citibank, Nassau, 4.50%, due 10/1/07	P-1	A-1+	250,000
250,000	Fifth Third Bank, Grand Cayman, 3.50%, due 10/1/07	P-1	A-1	250,000
100,000	KeyBank National, Grand Cayman, 2.00%, due 10/1/07	P-1	A-1	100,000

See Notes to Schedule of Investments



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$410,000	Regions Bank, Grand Cayman, 4.00%, due 10/1/07	P-1	A-1	$410,000
100,000	Royal Bank of Canada, Grand Cayman, 4.50%, due 10/1/07	P-1	A-1+	100,000
596,500	U.S. Bank, Grand Cayman, 2.00%, due 10/1/07	P-1	A-1+	596,500
300,000	Wells Fargo & Co., Grand Cayman, 4.00%, due 10/1/07	P-1	A-1+	300,000
	Total Time Deposits			2,006,500

Corporate Debt Securities (0.7%)

Asset Backed (0.2%)
30,000	Cullinan Finance Corp., Medium-Term Notes, 5.36%, due 11/28/07	P-1	A-1+	30,000	^ñ

Banking (0.5%)
16,320	Citigroup, Inc., Senior Notes, 3.50%, due 2/1/08	P-1	A-1+	16,220
50,000	Sigma Finance, Inc., Medium-Term Notes, 5.43%, due 8/5/08	P-1	A-1+	50,000	^ñ
				66,220
	Total Corporate Debt Securities			96,220

Floating Rate Corporate Debt Securities (16.5%)^µ

Asset Backed (8.7%)
77,000	Beta Finance, Inc., Guaranteed Floating Rate Medium-Term Notes, 4.81% & 4.87%, due 10/1/07	P-1	A-1+	77,004	^ñ
5,000	Cullinan Finance Corp., Floating Rate Notes, 5.11%, due 10/25/07	P-1	A-1+	5,000	^ñ
75,000	Cullinan Finance Corp., Floating Rate Medium-Term Notes, 5.52%, due 11/15/07	P-1	A-1+	74,999	^ñ
75,000	Dorada Finance, Inc., Floating Rate Medium-Term Notes, 4.81% & 5.35%, due 10/1/07 & 10/9/07	P-1	A-1+	75,002	^ñ
167,300	K2 (USA) LLC, Guaranteed Floating Rate Medium-Term Notes, 5.48% - 5.68%, due 10/22/07 - 12/17/07	P-1	A-1+	167,300	^ñ
210,000	Links Finance LLC, Floating Rate Medium-Term Notes, 4.82% - 5.79%, due 10/1/07 - 12/3/07	P-1	A-1+	209,986	^ñ
182,500	Parkland (USA) LLC, Floating Rate Medium-Term Notes, 4.82% - 5.66%, due 10/1/07 - 12/31/07	P-1	A-1+	182,491	^ñ
130,000	Sigma Finance, Inc., Guaranteed Floating Rate Medium-Term Notes, 4.82% & 4.84%, due 10/1/07	P-1	A-1+	130,001	^ñ
20,000	Sigma Finance, Inc., Floating Rate Medium-Term Notes, 5.35%, due 10/25/07	P-1	A-1+	20,000	^ñ
15,000	Tango Finance Corp., Floating Rate Medium-Term Notes, 4.82%, due 10/1/07	P-1	A-1+	15,000	^ñ
50,000	Toyota Motor Credit Corp., Unsecured Floating Rate Medium-Term Notes, Ser. B, 4.66%, due 10/1/07	P-1	A-1+	50,011
125,000	Toyota Motor Credit Corp., Floating Rate Medium-Term Notes, Ser. B, 4.82% & 4.99%, due 10/1/07	P-1	A-1+	125,005
35,000	Westpac Banking Corp., Floating Rate Notes, 5.78%, due 10/9/07	P-1	A-1+	35,000	^ñ

See Notes to Schedule of Investments



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$60,000	Whistlejacket Capital LLC, Floating Rate Medium-Term Notes, 5.71%, due 10/15/07	P-1	A-1+	$59,992	^ñ
				1,226,791

Banking (5.1%)
170,000	Bank of America NA, Floating Rate Bank Notes, 4.82%, due 10/1/07	P-1	A-1+	170,000
40,000	Bank of New York, Senior Floating Rate Medium-Term Notes, 5.82%, due 10/10/07	P-1	A-1	40,003	^ñ
35,000	Credit Suisse First Boston, Floating Rate Notes, 5.84%, due 10/2/07	P-1	A-1+	35,031
50,000	HSBC Finance Corp., Floating Rate Medium-Term Notes, 5.40%, due 10/4/07	P-1	A-1+	50,000
6,900	HSBC Finance Corp., Senior Unsecured Floating Rate Notes, 5.82%, due 12/17/07	P-1	A-1+	6,892
170,000	National City Bank, Floating Rate Bank Notes, 4.86% - 5.78%, due 10/1/07 - 10/25/07	P-1	A-1	170,008
44,000	National City Bank, Floating Rate Medium-Term Bank Notes, 5.42%, due 11/5/07	P-1	A-1	44,022
40,000	PNC Bank, Floating Rate Bank Notes, 5.67%, due 10/2/07	P-1	A-1	39,996
40,000	Royal Bank of Canada, Floating Rate Medium-Term Notes, 5.71%, due 10/1/07	P-1	A-1+	40,000	^ñ
28,000	Wells Fargo & Co., Floating Rate Notes, 5.83%, due 10/15/07	P-1	A-1+	28,000	^ñ
80,000	Wells Fargo & Co., Floating Rate Medium-Term Notes, 5.69%, due 10/18/07	P-1	A-1+	79,994
9,700	World Savings Bank, Floating Rate Bank Notes, 5.82%, due 10/9/07	P-1	A-1+	9,701
				713,647

Conglomerate (1.2%)
175,000	General Electric Capital Corp., Floating Rate Medium-Term Notes, Ser. A, 5.70%, due 12/3/07	P-1	A-1+	174,945

Financial Services (1.5%)
13,384	American Express Centurion, Floating Rate Bank Notes, 5.61%, due 10/18/07	P-1	A-1	13,385
25,000	Bear Stearns Co., Inc., Floating Rate Medium-Term Notes, Ser. B, 5.79%, due 10/15/07	P-1	A-1	25,000
70,000	Bear Stearns Master Note, 5.00%, due 10/1/07	P-1	A-1	70,000
15,000	Merrill Lynch & Co., Floating Rate Medium-Term Bonds, Ser. C, 5.46%, due 10/1/07	P-1	A-1+	15,017
75,000	Merrill Lynch & Co., Senior Unsecured Floating Rate Notes, 5.75%, due 10/18/07	P-1	A-1+	75,000

See Notes to Schedule of Investments



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$15,000	Morgan Stanley, Senior Floating Rate Notes, 5.85%, due 10/3/07	P-1	A-1+	$15,006
				213,408
	Total Floating Rate Corporate Debt Securities			2,328,791

Promissory Notes (0.6%)^µ
85,000	Goldman Sachs Group, 5.35% - 5.37%, due 10/1/07	P-1	A-1+	85,000

Asset-Backed Securities (0.1%)
9,447	Capital Auto Receivables Asset Trust, Ser. 2007-1, Class A1, 5.32%, due 5/15/08	P-1		9,447	^ñ
886	CIT Equipment Collateral, Ser. 2006-VT2, Class A1, 5.34%, due 11/20/07	P-1	A-1+	886
	Total Asset-Backed Securities			10,333

Repurchase Agreements (17.5%)
340,400	Bank of America Repurchase Agreement, 5.10%, due 10/1/07, dated 9/28/07, Maturity Value $340,544,670, Collateralized by $468,938,111, Fannie Mae, 5.00%, due 4/1/35 (Collateral Value $347,208,001)			340,400
900,000	Barclays Capital Repurchase Agreement, 5.05%, due 10/1/07, dated 9/28/07, Maturity Value $900,378,750, Collateralized by $605,131,930, Fannie Mae, 4.43% - 6.00%, due 4/1/34 - 9/1/37 and $402,729,225, Freddie Mac, 5.00% - 6.29%, due 10/1/36 - 8/1/37 (Collateral Value $918,000,000)			900,000
649,700	Goldman Sachs Repurchase Agreement, 5.08%, due 10/1/07, dated 9/28/07, Maturity Value $649,975,040, Collateralized by $850,657,400, Fannie Mae, 0.00% & 5.50%, due 8/1/36 & 5/1/37 and $720,522,813, Freddie Mac, 0.00%, due 2/1/35 - 4/15/37 (Collateral Value $682,185,000)			649,700
150,000	Goldman Sachs Repurchase Agreement, 5.33%, due 10/1/07, dated 9/28/07, Maturity Value $150,066,625, Collateralized by 4,427,362, shares of various Equity Securities, $44,368,533, various Asset Backed Securities, 0.00% - 8.13%, due 10/19/11 - 1/1/49 and $2,500,000, Certificates of Deposits, 0.00%, due 10/6/11 (Collateral Value $156,825,995)			150,000
100,000	Goldman Sachs Repurchase Agreement, 5.35%, due 10/1/07, dated 9/28/07, Maturity Value $100,044,583, Collateralized by $161,778,001, U.S. Treasury Notes, 0.00% - 7.25%, due 3/6/20 - 7/25/37 (Collateral Value $103,000,000)			100,000
175,000	Merrill Lynch Repurchase Agreement, 5.10%, due 10/1/07, dated 9/28/07, Maturity Value $175,074,375, Collateralized by $128,092,450, Fannie Mae, 5.00% - 6.00%, due 4/1/23 - 1/1/36 and $199,999,604, Freddie Mac, 4.00% - 5.50%, due 6/1/08 - 2/1/36 (Collateral Value $178,501,251)			175,000

See Notes to Schedule of Investments



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$150,000	Merrill Lynch Repurchase Agreement, 5.32%, due 10/1/07, dated 9/28/07, Maturity Value $150,066,500, Collateralized by 2,855,616, shares of various Equity Securities (Collateral Value $157,661,552)			$150,000
	Total Repurchase Agreements			2,465,100

	Total Investments (99.8%)			14,049,342
	Cash, receivables and other assets, less liabilities (0.2%)			29,074
	Total Net Assets (100.0%)			$14,078,416

See Notes to Schedule of Investments

Schedule of Investments Government Master Series (Unaudited)



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

U.S. Government Agency Securities (48.8%)
$56	Fannie Mae, Bonds, 3.25%, due 1/15/08	AGY	AGY	$56
40,269	Fannie Mae, Disc. Notes, 4.80% - 5.25%, due 10/1/07 - 5/30/08	AGY	AGY	39,663
7,385	Fannie Mae, Notes, 5.25% - 6.63%, due 10/15/07 - 12/3/07	AGY	AGY	7,384
150	Federal Farm Credit Bank, Bonds, 3.00%, due 12/17/07	AGY	AGY	149
508	Federal Farm Credit Bank, Disc. Notes, 5.05% - 5.11%, due 11/20/07 - 2/1/08	AGY	AGY	503
95,660	Federal Farm Credit Bank, Floating Rate Bonds, 4.98% - 5.55%, due 10/1/07 - 11/28/07	AGY	AGY	95,660	^µ
39,420	Federal Home Loan Bank, Bonds, 2.75% - 5.40%, due 10/3/07 - 8/14/08	AGY	AGY	39,388
64,500	Federal Home Loan Bank, Disc. Notes, 4.80% - 5.22%, due 10/31/07 - 7/18/08	AGY	AGY	63,714
160,500	Federal Home Loan Bank, Floating Rate Bonds, 4.12% - 5.54%, due 10/3/07 - 12/22/07	AGY	AGY	160,482	^µ
53,919	Freddie Mac, Disc. Notes, 4.38% - 5.20%, due 10/15/07 - 9/15/08	AGY	AGY	53,267
25,000	Freddie Mac, Floating Rate Notes, 4.98%, due 10/26/07	AGY	AGY	24,997	^µ
14,300	Freddie Mac, Notes, 2.85% - 5.38%, due 10/15/07 - 6/3/08	AGY	AGY	14,282
	Total U.S. Government Agency Securities			499,545

Repurchase Agreements (50.9%)
50,000	Bank of America Repurchase Agreement, 5.10%, due 10/1/07, dated 9/28/07, Maturity Value $50,021,250, Collateralized by $68,880,451, Fannie Mae, 5.00%, due 4/1/35 (Collateral Value $51,000,000)			50,000
100,000	Barclays Capital Repurchase Agreement, 5.05%, due 10/1/07, dated 9/28/07, Maturity Value $100,042,083, Collateralized by $66,780,864, Fannie Mae, 4.50%, due 11/1/20 and $51,348,180, Freddie Mac, 5.50% & 6.00%, due 8/1/36 & 7/1/37 (Collateral Value $102,000,000)			100,000
100,000	Credit Suisse First Boston Repurchase Agreement, 5.10%, due 10/1/07, dated 9/28/07, Maturity Value $100,042,500, Collateralized by $265,716,593, Fannie Mae, 0.00% - 7.00%, due 10/1/08 - 10/1/37 and $2,206,234, Freddie Mac, 5.50% - 9.00%, due 3/17/08 - 5/1/37 (Collateral Value $102,002,438)			100,000

See Notes to Schedule of Investments



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$70,500	Goldman Sachs Repurchase Agreement, 5.08%, due 10/1/07, dated 9/28/07, Maturity Value $70,529,845, Collateralized by $96,538,577, Fannie Mae, 2.49% - 4.98%, due 12/25/31 - 3/25/36 and $94,886,051, Freddie Mac, 4.00% - 6.50%, due 6/15/24 - 1/25/35 (Collateral Value $71,910,001)			$70,500
25,000	Goldman Sachs Repurchase Agreement, 5.27%, due 10/3/07, dated 7/5/07, Maturity Value $25,321,750, Collateralized by $32,326,141, Fannie Mae, 5.58%, due 7/25/36 (Collateral Value $25,500,001)			25,000
175,000	Merrill Lynch Repurchase Agreement, 5.10%, due 10/1/07, dated 9/28/07, Maturity Value $175,074,375, Collateralized by $266,830,036, Fannie Mae, 4.50% - 6.00%, due 8/1/18 - 2/1/37 (Collateral Value $178,503,818)			175,000
	Total Repurchase Agreements			520,500

	Total Investments (99.7%)			1,020,045
	Cash, receivables and other assets, less liabilities (0.3%)			3,105
	Total Net Assets (100.0%)			$1,023,150

See Notes to Schedule of Investments

Schedule of Investments Government Reserves Master Series



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

U.S. Government Agency Securities (106.5%)
$10,200	Federal Farm Credit Bank, Disc. Notes, 4.65% - 5.15%, due 10/1/07 - 1/29/08	AGY	AGY	$10,179
27,500	Federal Farm Credit Bank, Floating Rate Bonds, 5.54% - 5.67%, due 10/1/07 - 10/13/07	AGY	AGY	27,500	^µ
200	Federal Farm Credit Bank, Notes, 6.37%, due 10/30/07	AGY	AGY	200
13,800	Federal Home Loan Bank, Bonds, 2.70% - 5.40%, due 10/19/07 - 8/14/08	AGY	AGY	13,787
165,331	Federal Home Loan Bank, Disc. Notes, 4.00% - 5.17%, due 10/1/07 - 7/18/08	AGY	AGY	164,171
25,000	Federal Home Loan Bank, Disc. Notes, 4.93% & 5.14%, due 10/17/07 & 11/23/07	AGY	AGY	24,868	^ØØ
51,400	Federal Home Loan Bank, Floating Rate Bonds, 4.78% - 5.54%, due 10/1/07 - 12/17/07	AGY	AGY	51,398	^µ
20,000	Federal Home Loan Bank, Floating Rate Bonds, 5.44%, due 11/18/07	AGY	AGY	20,020	^µ^Ø
6,425	Tennessee Valley Au., Disc. Notes, 4.50%, due 10/4/07	AGY	AGY	6,423
	Total U.S. Government Agency Securities			318,546

	Total Investments (106.5%)			318,546
	Liabilities, less cash, receivables and other assets [(6.5%)]			(19,410	)
	Total Net Assets (100.0%)			$299,136

See Notes to Schedule of Investments

Schedule of Investments Treasury Master Series (Unaudited)



PRINCIPAL AMOUNT		RATING		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (4.6%)
$10,000	U.S. Treasury Notes, 3.00%, due 2/15/08	TSY	TSY	$9,924
25,000	U.S. Treasury Notes, 4.63%, due 3/31/08	TSY	TSY	24,951
	Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government			34,875

Repurchase Agreements (95.3%)
100,000	Bank of America Repurchase Agreement, 3.90%, due 10/1/07, dated 9/28/07, Maturity Value $100,032,500, Collateralized by $41,501,000, U.S. Treasury Notes, 3.50% & 4.00%, due 8/15/09 & 4/15/10 and $94,668,000 U.S. Treasury Strips, due 8/15/13 - 8/15/22 (Collateral Value $102,000,697)			100,000
150,000	Barclays Capital Repurchase Agreement, 3.90%, due 10/1/07, dated 9/28/07, Maturity Value $150,048,750, Collateralized by $117,893,000, U.S. Treasury Note, 3.63%, due 1/15/08 (Collateral Value $153,001,076)			150,000
150,000	Fortis Financial Repurchase Agreement, 4.00% due 10/1/2007, dated 9/28/07, Maturity Value $150,050,000, Collateralized by $134,231,000, U.S. Treasury Notes, 3.38% - 7.13%, due 1/15/08 - 4/15/32 (Collateral Value $153,000,354)			150,000
67,000	Goldman Sachs Repurchase Agreement, 3.50%, due 10/1/07, dated 9/28/07, Maturity Value $67,019,542, Collateralized by $65,234,000, U.S. Treasury Note, 5.13%, due 6/30/11 (Collateral Value $68,340,050)			67,000
154,000	Merrill Lynch Repurchase Agreement, 3.85%, due 10/1/07, dated 9/28/07, Maturity Value $154,049,408, Collateralized by $154,145,000, U. S. Treasury Note, 4.63%, due 7/31/09 (Collateral Value $157,082,253)			154,000
100,000	Morgan Stanley Repurchase Agreement, 3.90%, due 10/1/07, dated 9/28/07, Maturity Value $100,032,500, Collateralized by $406,110,000, U.S. Treasury Strips, due 2/15/36 - 5/15/37 (Collateral Value $102,000,087)			100,000
	Total Repurchase Agreements			721,000

	Total Investments (99.9%)			755,875
	Cash, receivables and other assets, less liabilities (0.1%)			880
	Total Net Assets (100.0%)			$756,755

See Notes to Schedule of Investments

Schedule of Investments Tax-Exempt Master Series (Unaudited)



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Municipal Notes (98.0%)

Alabama (1.2%)
$1,600	Gulf Shores Med. Clinic Board Rev. (Colonial Pinnacle MOB Proj.), Ser. 2007, (LOC: Regions Bank), 3.94%, due 10/4/07	P-1		$1,600	^µ^ß
2,900	Lauderdale Co. Pub. Park Rec. Board Rev. (YMCA of the Shoals Proj.), Ser. 2000, (LOC: SunTrust Bank), 3.87%, due 10/3/07	VMIG1		2,900	^µ^ß
1,245	Lee Co. Ind. Dev. Au. Rev. (Lifesouth Comm. Blood Ctr.), Ser. 2001, (LOC: SunTrust Bank), 3.92%, due 10/3/07	VM1G1		1,245	^µ^ß
20,000	Lower Alabama Gas Dist. Supply Rev., Ser. 2007 A, (LOC: Societe Generale), 4.11%, due 10/1/07	VMIG1		20,000	^µ
				25,745

Alaska (0.1%)
1,250	Alaska Ind. Dev. & Export Au. Rev., Ser. 2004, (FSA Insured), 3.92%, due 10/4/07	VMIG1		1,250	^µⁱ

Arizona (0.7%)
5,800	ABN Amro Munitops Cert. Trust Rev., Ser. 2005, (MBIA Insured), 3.93%, due 10/4/07	VMIG1		5,800	^µ^a^ØØ
10,000	Scottsdale Ind. Dev. Au. Hosp. Rev., Ser. 2006, (LOC: Citigroup Global Markets), 3.92%, due 10/4/07	VMIG1		10,000	^µ^ØØ
				15,800

Arkansas (0.8%)
11,500	ABN Amro Munitops Cert. Trust Rev., Ser. 2006, (FGIC Insured), 3.93%, due 10/4/07	VMIG1		11,500	^ñ^µ^a
6,330	North Little Rock Residential Hsg. Fac. Board Multi-Family Rev. (Floaters), Ser. 2004, (LOC: Government National Mortgage Association), 3.99%, due 10/4/07	VMIG1		6,330	^µ^r
				17,830

California (3.1%)
5,450	Austin Trust St. Cert., Ser. 2007-315, (LOC: State Street Bank & Trust Co.), 3.92%, due 10/4/07	VMIG1		5,450	^µ^c
17,940	California St. Muni. Sec. Trust Receipts, Ser. 2001-136, (XLCA Insured), 4.05%, due 10/1/07		A-1+	17,940	^µ^t
13,870	California St. Muni. Sec. Trust Receipts, Ser. 2001-135, (AMBAC Insured), 4.05%, due 10/1/07		A-1+	13,870	^µ^t

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$3,215	California Statewide Comm. Dev. Au. Rev. (Floaters), Ser. 2007-2089, (LOC: Wells Fargo Bank & Trust Co.), 3.94%, due 10/4/07	VMIG1		$3,215	^µ
9,050	Northern California Gas Au. Number 1 Gas Proj. Rev. (Floaters), Ser. 2007-55, (LOC: Goldman Sachs), 3.92%, due 10/4/07			9,050	^µ
18,180	Puttable Floating Option Tax Exempt Receipts (Floaters), Ser. 2006, (LOC: Merrill Lynch Capital Markets), 4.02%, due 10/4/07			18,180	^µ
				67,705

Colorado (2.7%)
4,300	Adams 12 Five Star Sch. (Putters), Ser. 2007-1728, (MBIA Insured), 3.92%, due 10/4/07	VMIG1		4,300	^µ^o
4,725	Broomfield Cert. Participation (Floaters), Ser. 2002-1643, (AMBAC Insured), 3.95%, due 10/4/07			4,725	^µ^r
1,500	Central Platte Valley Metro. Dist., Ser. 2006, (LOC: BNP Paribas), 3.70%, due 12/1/07		A-1+	1,500	^µ
3,625	Colorado Ed. & Cultural Fac. Au. Rev. (Emmanuel Sch. Religion Proj.), Ser. 2006, (LOC: AmSouth Bank), 3.89%, due 10/4/07	VMIG1		3,625	^µ^ß
5,350	Commerce City Northern Infrastructure Gen. Imp. Dist. G.O., Ser.2006, (LOC: U.S. Bank), 3.89%, due 10/4/07		A-1+	5,350	^µ
20,000	Dawson Ridge Metro. Dist. Number 1 (Merlots), Ser. 2007-D03, (LOC: Wachovia Bank & Trust Co.), 3.98%, due 10/3/07	VMIG1		20,000	^µ
5,040	Denver City & Co. Arpt. Rev. (Floaters), Ser. 2006-63TP, (FGIC Insured), 3.90%, due 10/4/07			5,040	^µ^m
7,485	Deutsche Bank Spears/Lifers Trust Var. St. (Colorado Health Facs. Au.), Ser. 2007-132, (LOC: Deutsche Bank), 4.02%, due 10/4/07			7,485	^µ
5,405	Summit Co. Sch. Dist. G.O., Ser. 2004, (FSA Insured), 3.92%, due 10/4/07	VMIG1		5,405	^µⁱ
				57,430

Delaware (0.6%)
12,100	New Castle Co. Delaware Student Hsg. Rev. (University Courtyard Apts.), Ser. 2005, (LOC: Bank of New York), 3.89%, due 10/4/07	VMIG1		12,100	^µ^ß

District of Columbia (0.3%)
2,085	District of Columbia G.O. (Merlots), Ser. 2001-A127, (MBIA Insured), 3.92%, due 10/3/07		A-1+	2,085	^µ^v
2,235	District of Columbia Rev. Ref. (Maret Sch., Inc.), Ser. 2003, (LOC: SunTrust Bank), 3.87%, due 10/3/07	VMIG1		2,236	^µ^ß
1,435	District of Columbia Wtr. & Swr. Au. Pub. Util. Rev., (Floaters) Ser. 2006, (FSA Insured), 3.92%, due 10/4/07			1,435	^µ^l
				5,756

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Florida (5.7%)
$14,080	Broward Co. Professional Sports Fac. Tax Rev. (Floaters), Ser. 2007-1939, (AMBAC Insured), 3.91%, due 10/4/07			$14,080	^µ^s
7,700	Deutsche Bank Spears/Lifers Trust Var. St. Rev. (Manatee Co.), Ser. 2007-243, (MBIA Insured), 3.95%, due 10/4/07		A-1+	7,700	^µ^k
2,755	Eclipse Funding Trust (Solar Eclipse-Palm Bay Sales), Ser. 2006-0136, (FSA Insured), 3.91%, due 10/4/07		A-1+	2,755	^µ^u
8,980	Eclipse Funding Trust (Solar Eclipse-Winter Haven Utils. Sys.), Ser. 2006-0054, (MBIA Insured), 3.92%, due 10/4/07		A-1+	8,980	^ñ^µ^u^ØØ
2,690	Florida St. Board of Ed. Muni. Sec. Trust Receipts, Ser. 2003-SGA138, (MBIA Insured), 3.94%, due 10/3/07		A-1+	2,690	^µ^t
1,450	Jacksonville Ed. Fac. Rev. (Edwards Waters College Proj.), Ser. 2001, (LOC: Wachovia Bank & Trust Co.), 3.70%, due 10/1/07			1,450	^µ^ß
2,000	Martin Co. PCR (Florida Pwr. & Lt. Proj.), Ser. 2000, 4.01%, due 10/1/07	VMIG1	A-1	2,000	^µ^ß
1,000	Miami-Dade Co. Sch. Board Cert. Participation (Putters), Ser. 2006-1317, (AMBAC Insured), 3.92%, due 10/4/07		A-1+	1,000	^µ^o
1,000	Miami-Dade Co. Sch. Board Cert. Participation, (Eagle), Ser. 2006 A, (AMBAC Insured), 4.16%, due 10/4/07		A-1+	1,000	^µ^h
8,610	Muni. Sec. Trust Cert. G.O., Ser. 2007-9068, (MBIA Insured), 3.95%, due 10/4/07		A-1	8,610	^ñ^µ^e
20,750	Orange Co. Sch. Board Cert. Participation, Ser. 2007 B, (FGIC Insured), 3.96%, due 10/1/07	VMIG1	A-1+	20,750	^µ^o
4,600	Orlando & Orange Co. Expressway Au. Rev., Ser. 2003-C3, (FSA Insured), 3.87%, due 10/4/07	VMIG1	A-1+	4,600	^µ^l
9,090	Orlando Util. Commission Wtr. & Elec. Rev. (Floaters), Ser. 2006, (LOC: Dexia Credit Locale de France), 3.95%, due 10/4/07			9,090	^µ
15,355	Puttable Floating Option Tax Exempt Receipts (Floaters) (South Miami Hlth. Fac. Au.), Ser. 2007-1498, (LOC: Merrill Lynch Capital Markets), 3.99%, due 10/4/07		A-1+	15,355	^µ
21,805	Sunshine St. Governmental Fin. Commission Rev., Ser. 1986, (AMBAC Insured), 4.08%, due 10/1/07	VMIG1		21,805	^µ^l
				121,865

Georgia (1.9%)
7,555	Athens Area Fac. Corp. Cert. Participation, Ser. 2007, (LOC: Citibank, N.A.), 3.92%, due 10/4/07	VMIG1		7,555	^µ
3,135	De Kalb Co. Wtr. & Swr. Rev., Ser. 2006, (LOC: Citibank, N.A.), 3.92%, due 10/4/07	VMIG1		3,135	^µ
5,000	Fulton Co. Dev. Au. Rev. (Robert Woodruff Arts Ctr.), Ser. 2004-B, (LOC: SunTrust Bank), 3.87%, due 10/3/07	VMIG1		5,000	^µ^ß

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$500	Gwinnett Co. Dev. Au. Rev. (Greater Atlanta Christian), Ser. 1998, (LOC: SunTrust Bank), 3.87%, due 10/3/07			$500	^µ^ß
3,135	Macon Bibb Co. Hosp. Au. Rev. (Anticipation Cert.- Med. Center), Ser. 1997, (LOC: SunTrust Bank), 3.87%, due 10/3/07			3,135	^µ^ß
2,500	Marietta Hsg. Au. Multi-Family Rev. (Franklin Walk Apts. Proj.), Ser. 1990, (LOC: Freddie Mac), 3.86%, due 10/4/07	VMIG1		2,500	^µ^ß
4,715	Muni. Elec. Au. Spec. Oblig., Ser. 1994-SGA1, (MBIA Insured), 3.94%, due 10/3/07		A-1+	4,715	^µ^t
3,995	Puttable Floating Option Tax Exempt Receipts (Floaters), Ser. 2007-4174, (LOC: Citigroup Global Markets), 3.95%, due 10/4/07			3,995	^µ^l
11,480	Richmond Co. Dev. Au. Rev., Ser. 2007-10025Z, (LOC: Citigroup Global Markets), 3.93%, due 10/4/07		A-1+	11,480	^µ
				42,015

Illinois (5.8%)
8,050	Chicago Board Ed. (Floaters), Ser. 2006-3620, (AMBAC Insured), 3.92%, due 10/4/07			8,050	^µ^l
7,145	Chicago O'Hare Int'l. Arpt. Rev., Ser. 2005, (FGIC Insured), 3.99%, due 10/4/07			7,145	^µ^k
5,080	Chicago O'Hare Int'l. Arpt. Rev. (Floaters), Ser. 2007-1933, (FGIC Insured), 3.91%, due 10/4/07	VMIG1		5,080	^µ^s
3,845	De Witt Ford Co. Comm. College Dist. Number 540 (Merlots), Ser. 2007-D13, (FSA Insured), 3.92%, due 10/3/07	VMIG1		3,845	^µ^v
16,520	Deutsche Bank Spears/Lifers Trust Var. St. (Chicago Illinois Board), Ser. 2007-315, (FGIC Insured), 3.96%, due 10/4/07			16,520	^µ^k
14,180	Deutsche Bank Spears/Lifers Trust Var. St. (Chicago Illinois Board), Ser. 2007-316, (FGIC Insured), 3.96%, due 10/4/07			14,180	^µ^k
4,555	Deutsche Bank Spears/Lifers Trust Var. St. (Chicago), Ser. 2007-346, (FGIC Insured), 3.99%, due 10/1/07			4,555	^µ^k
15,670	Deutsche Bank Spears/Lifers Trust Var. St. (Chicago), Ser. 2007-308, (FGIC Insured), 3.96%, due 10/4/07			15,670	^µ^k
3,815	Deutsche Bank Spears/Lifers Trust Var. St. (Northern Illinois Muni.), Ser. 2007-320, (MBIA Insured), 3.95%, due 10/4/07			3,815	^µ^k
8,000	Illinois Fin. Au. Rev. (Clare Oaks), Ser. 2006 D, (LOC: Sovereign Bank), 3.90%, due 10/4/07			8,000	^µ^ß^b
1,900	Illinois Fin. Au. Rev. (IIT Research Institute), Ser. 2004, (LOC: Fifth Third Bank), 3.89%, due 10/4/07	VMIG1		1,900	^µ^ß
1,850	Illinois Fin. Au. Rev. (Lawrence Hall Youth Svcs.), Ser. 2006, (LOC: Fifth Third Bank), 3.88%, due 10/5/07	VMIG1		1,850	^µ^ß
5,000	Lake Co. Sch. Dist. Number 109 Deerfield Rev., Ser. 2006, (LOC: JP Morgan Chase), 3.93%, due 10/3/07	VMIG1		5,000	^µ

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$4,000	Metro. Pier & Exposition Au. Hospitality Fac. Rev. (Floaters), Ser. 2006, (LOC: Dexia Credit Locale de France), 3.92%, due 10/4/07			$4,000	^µ
8,260	Muni. Sec. Trust Cert. G.O., Ser. 2007-347-A, (FSA Insured), 3.92%, due 10/4/07	VMIG1		8,260	^ñ^µ^e
2,780	Quad Cities Reg. Econ. Dev. Au. Rev. (Two Rivers YMCA Proj.), Ser. 2002, (LOC: U.S. Bank), 4.10%, due 10/1/07		A-1+	2,780	^µ^ß
5,905	Reg. Trans. Au. G.O. (Floaters), Ser. 2006, (MBIA Insured), 3.99%, due 10/4/07			5,905	^µ^l
8,445	Reg. Trans. Au. G.O. (Merlots), Ser. 2002-A24, (MBIA Insured), 3.92%, due 10/3/07	VMIG1		8,445	^µ^d
				125,000

Indiana (5.6%)
8,055	ABN Amro Munitops Cert. Trust Rev., Ser. 2006, (AMBAC Insured), 3.93%, due 10/4/07			8,055	^ñ^µ^a
7,490	Bartholomew Cons. Sch. Corp. Ind. Tax Anticipation Warrants, Ser. 2007, 4.00%, due 12/31/07			7,498
5,085	Carmel Clay Parks Bldg. Corp. (Putters), Ser. 2004-539, (MBIA Insured), 3.92%, due 10/4/07		A-1+	5,085	^µ^o
6,000	Carmel Clay Sch. Tax Anticipation Warrants, Ser. 2007, 3.90%, due 12/28/07			6,001
13,885	Carmel Redev. Au. Lease Rental Rev. (Floaters), Ser. 2006-1275, (LOC: Morgan Stanley), 3.91%, due 10/4/07		A-1+	13,885	^µ
2,065	Carmel Redev. Au. Lease Rental Rev. (Putters), Ser. 2006-1503, (LOC: JP Morgan Chase), 3.92%, due 10/4/07		A-1+	2,065	^µ
6,860	Columbus Renovation Sch. Bldg. Corp. (Floaters), Ser. 2005, (MBIA Insured), 3.99%, due 10/4/07		A-1+	6,860	^µ^r
11,530	Eclipse Funding Trust (Solar Eclipse-Hamilton Southeastern Indiana), Ser. 2007-0006, (FSA Insured), 3.91%, due 10/4/07		A-1+	11,530	^µ^h
7,000	Eclipse Funding Trust (Solar Eclipse-IPS Multi-Sch. Bldg. Corp. Ltd.), Ser. 2007-0026, (MBIA Insured), 3.91%, due 10/4/07		A-1+	7,000	^µ^u
3,990	Eclipse Funding Trust (Solar Eclipse-Wayne Township Marion), Ser. 2006-0015, (FGIC Insured), 3.92%, due 10/4/07		A-1+	3,990	^ñ^µ^u
3,300	Hamilton Southeastern Sch. Warrants, Ser. 2007, 3.80%, due 12/31/07			3,301
2,500	Indiana Bond Bank Rev. (Adv. Fdg. Prog. Notes), Ser. 2007 A, (LOC: Bank of New York), 4.25%, due 1/31/08		SP-1+	2,505
10,300	Indiana Hlth. & Ed. Fac. Fin. Au. Hosp. Rev. (Floyd Mem. Hosp. & Hlth. Proj.), Ser. 2006, (LOC: National City Bank), 4.10%, due 10/1/07		A-1	10,300	^µ^ß
5,320	Indiana Hlth. & Ed. Fac. Fin. Au. Hosp. Rev. (Schneck Mem. Hosp. Proj.), Ser. 2006 B, (LOC: Fifth Third Bank), 4.05%, due 10/1/07		A-1+	5,320	^µ^ß

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$2,935	Indiana Trans. Fin. Au. Hwy. Rev., Ser. 2003, (FSA Insured), 3.92%, due 10/4/07		A-1+	$2,935	^µⁱ
5,000	Indianapolis Loc. Pub. Improvement Bond Bank Ltd. Recourse Notes, Ser. 2007 E, 4.25%, due 10/2/08		SP-1+	5,026
4,420	Lafayette Sewage Works Rev. (Merlots), Ser. 2006 D08, (FGIC Insured), 3.92%, due 10/3/07		A-1+	4,420	^µ^v
2,000	Logansport Comm. Sch. Corp. TANS, Ser. 2007, 4.00%, due 12/31/07			2,001
2,085	Puttable Floating Option Tax Exempt Receipts, Ser. 2007-212, (XLCA Insured), 3.99%, due 10/4/07			2,085	^µ^r
5,735	Univ. Southern Indiana Rev., Ser. 2004, (AMBAC Insured), 3.92%, due 10/4/07	VMIG1		5,735	^µⁱ
4,745	Wayne Township Marion Co. Sch. Bldg. Corp. (Merlots), Ser. 2006-D02, (FGIC Insured), 3.92%, due 10/3/07		A-1+	4,745	^µ^v
				120,342

Iowa (1.6%)
6,840	Ankeny G.O. BANS, Ser. 2006 A, 4.10%, due 6/1/08	MIG1		6,841
4,255	Austin Trust Various Sts. (Iowa Din Au.), Ser. 2007-1011, (LOC: Bank of America), 3.94%, due 10/4/07		A-1+	4,255	^µ
2,300	Iowa Fin. Au. Private College Rev. (Morningside College Proj.), Ser. 2007, (LOC: U.S. Bank), 4.10%, due 10/1/07		A-1+	2,300	^µ
3,500	Iowa Fin. Au. Private College Rev. (Morningside College Proj.), Ser. 2006, (LOC: U.S. Bank), 4.10%, due 10/1/07		A-1+	3,500	^µ^ß
430	Iowa Fin. Au. Rev. (Private Sch. Fac. Rev. Kuemper Proj.), Ser. 1998, (LOC: Allied Irish Bank), 4.10%, due 10/1/07			430	^µ^ß
1,340	Iowa Higher Ed. Loan Au. Rev. (Private College Des Moines Proj.), Ser. 2004, (LOC: Allied Irish Bank), 4.10%, due 10/1/07	VMIG1	A-1+	1,340	^µ^ß
185	Iowa Higher Ed. Loan Au. Rev. (Private College Des Moines), Ser. 2003, (LOC: Allied Irish Bank), 4.10%, due 10/1/07	VMIG1		185	^µ^ß
5,295	Iowa Higher Ed. Loan Au. Rev. (Private College Wartburg Proj.), Ser. 2000, (LOC: American Trust & Savings), 4.10%, due 10/1/07	VMIG1		5,295	^µ^ß
3,535	Iowa Higher Ed. Loan Au. Rev. (Univ. of Dubuque), Ser. 2007 C, 4.50%, due 5/20/08		SP-1	3,551	^ß
1,860	Iowa Higher Ed. Loan Au. Rev. RANS, Ser. 2007 B, 4.91%, due 5/20/08		SP-1	1,873	^ß
4,125	Mason City IDR (SUPERVALU, Inc. Proj.), Ser. 1994, (LOC: Wachovia Bank & Trust Co.), 3.95%, due 10/3/07			4,125	^µ^ß
				33,695

Kansas (0.6%)
6,145	Junction City G.O. Temporary Notes, Ser. 2007 C, 5.00%, due 6/1/08			6,184	^Ø
3,865	Shawnee Co. Temporary Notes, Ser. 2007-2, 3.70%, due 10/1/08	MIG1		3,867

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$3,500	Univ. of Kansas Hosp. Au. Rev. (KU Hlth. Sys.), Ser. 2004, (LOC: Harris Trust & Savings Bank), 4.05%, due 10/1/07		A-1	$3,500	^µ^ß
				13,551

Kentucky (3.1%)
39,000	Kentucky Inc. Pub. Energy Au. Gas Supply Rev., Ser. 2006 A, (LOC: Societe Generale), 4.11%, due 10/1/07	VMIG1	A-1+	39,000	^µ^ß
13,800	Kentucky Rural Wtr. Fin. Corp. Pub. Proj. Rev. (Construction Notes), Ser. 2007 A-1, 3.65%, due 4/1/09 Putable 4/1/08	MIG1		13,800	^µ^Ø
9,990	Muni. Sec. Trust Cert. G.O., Ser. 2002-9027, (FSA Insured), 3.92%, due 10/4/07		A-1	9,990	^ñ^µ^b
3,530	Simpson Co. Hosp. Rev. (Med. Ctr. Franklin, Inc.), Ser. 2006, (LOC: Branch Banking & Trust Co.), 3.88%, due 10/4/07			3,530	^µ^ß
				66,320

Louisiana (0.2%)
5,365	Jefferson Sales Tax Dist. Spec. Sales Tax Rev., Ser. 2005, (AMBAC Insured), 3.99%, due 10/4/07			5,365	^µ^k

Maryland (3.1%)
14,400	ABN Amro Munitops Cert. Trust Rev., Ser. 2003-19, (FGIC Insured), 3.91%, due 10/4/07			14,400	^µ^a
30,215	JP Morgan Chase & Co. (Putters), Ser. 2007-1941P, (LOC: JP Morgan Chase), 3.97%, due 10/4/07			30,215	^µ
14,000	JP Morgan Chase & Co. (Putters), Ser. 2007-1684P, (LOC: JP Morgan Chase), 4.01%, due 10/4/07			14,000	^µ
7,000	Maryland St. Comm. Dev. Admin. Dept. Hsg. & Comm. Dev. (Residential), Ser. 2006 Q, 3.59%, due 12/14/07	MIG1		7,000
1,300	Washington Suburban Sanitation Dist. BANS, Ser. 2003 A, (LOC: Landesbank Hessen-Thveringen Girozentrale), 3.81%, due 10/3/07	VMIG1		1,300	^µ
				66,915

Massachusetts (3.7%)
10,495	Deutsche Bank Spears/Lifers Trust Var. St., Ser. 2007-129, (LOC: Deutsche Bank), 4.10%, due 10/4/07			10,495	^µ
14,315	Massachusetts Bay Trans. Au. Sales Tax Rev. (Floaters), Ser. 2006-3526, (LOC: Dexia Credit Locale de France), 3.93%, due 10/4/07		A-1+	14,315	^µ
17,830	Massachusetts St. (Central Artery), Ser. 2000 A, (LOC: Landesbank Hessen-Thveringen Girozentrale), 4.05%, due 10/1/07	VMIG1	A-1+	17,830	^µ
6,125	Massachusetts St. Dev. Fin. Agcy. Rev. (Boston College High Sch.), Ser. 2006, (LOC: Citizens Bank), 3.88%, due 10/3/07	VMIG1		6,125	^µ^ß

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$6,400	Massachusetts St. Dev. Fin. Agcy. Rev. (Suffolk Univ.), Ser. 2005 A, (LOC: Citizens Bank), 3.90%, due 10/3/07	VMIG1		$6,400	^µ^ß
8,900	Massachusetts St. G.O. (Central Artery), Ser. 2000 A, (LOC: Landesbank Hessen-Thveringen Girozentrale), 4.05%, due 10/1/07	VMIG1	A-1+	8,900	^µ
9,470	Worcester G.O. BANS, Ser. 2006 A, 4.00%, due 11/8/07	MIG1		9,472
6,300	Worcester Reg. Trans. Au. RANS, Ser. 2007, 4.00%, due 6/27/08			6,302
				79,839

Michigan (2.1%)
10,320	ABN Amro Munitops Cert. Trust Rev., Ser. 2004-44, (MBIA Insured), 3.92%, due 10/4/07			10,320	^µ^a
11,695	Detroit City Sch. Dist. G.O. (Floaters), Ser. 2006-3519, (FSA Insured), 3.92%, due 10/4/07			11,695	^µ^l
3,955	Detroit Sewage Disp. Rev. (Putters), Ser. 2006-1453, (FGIC Insured), 3.92%, due 10/4/07		A-1+	3,955	^µ^o
2,400	Eastern Michigan Univ. Rev., Ser. 2001, (FGIC Insured), 4.05%, due 10/1/07		A-1+	2,400	^µ^l
3,775	Grand Rapids Hsg. Corp. Rev. (Floaters), Ser. 2005-3152, (FHA Insured), 3.99%, due 10/4/07		A-1+	3,775	^µ
1,840	Hartland Cons. Sch. Dist. G.O. (Floaters), Ser. 2005-1204, (LOC: Morgan Stanley), 3.91%, due 10/4/07	VMIG1		1,840	^µ
5,000	Muni. Sec. Trust Cert. G.O., Ser. 2006-7012A, (FSA Insured), 3.92%, due 10/4/07	VMIG1		5,000	^ñ^µ^e
3,730	Northern Michigan Univ. Rev., Ser. 2001, (FGIC Insured), 4.05%, due 10/1/07	VMIG1	A-1	3,730	^µ^j
3,000	Waterford Sch. Dist. G.O. (St. Aid Anticipation Notes), Ser. 2006, 3.85%, due 11/30/07			3,001
				45,716

Minnesota (1.3%)
6,532	Arden Hills Hsg. & Hlth. Care Fac. Rev. (Presbyterian Homes), Ser. 1999 A, (LOC: U.S. Bank), 4.10%, due 10/1/07		A-1+	6,532	^µ^ß
11,905	Deutsche Bank Spears/Lifers Trust Var. St. (Roseville), Ser. 2007-134, (LOC: Deutsche Bank), 4.02%, due 10/4/07			11,905	^µ
1,000	Mankato Multi-Family Rev. Hsg. (Highland), Ser. 1997, (LOC: LaSalle National Bank), 4.10%, due 10/1/07		A-1+	1,000	^µ
7,485	Minneapolis & St. Paul Metro. Apts. Commission Arpt. Rev. (Merlots), Ser. 2000 ZZ, (FGIC Insured), 3.92%, due 10/3/07	VMIG1		7,485	^µ^v
935	Roseville Private Sch. Fac. Rev. (Northwestern College Proj.), Ser. 2002, (LOC: Marshall & Ilsley), 4.10%, due 10/1/07	VMIG1		935	^µ^ß
				27,857

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Mississippi (0.1%)
$2,900	Mississippi Bus. Fin. Corp. Rev. (Hattiesburg Clinic), Ser. 2006, (LOC: AmSouth Bank), 3.90%, due 10/4/07	VMIG1		$2,900	^µ^ß

Missouri (3.4%)
9,435	ABN Amro Munitops Cert. Trust Rev., Ser. 2004-35, (FGIC Insured), 3.93%, due 10/4/07	VMIG1		9,435	^µ^a
4,440	Deutsche Bank Spears/Lifers Trust Var. St., Ser. 2007-124, (LOC: Deutsche Bank), 4.02%, due 10/4/07		A-1+	4,440	^µ
1,500	Missouri St. Dev. Fin. Board Infrastructure Fac. Rev. (St. Louis Convention Ctr.), Ser. 2000 C, (LOC: U.S. Bank), 4.10%, due 10/1/07		A-1+	1,500	^µ
11,650	Missouri St. Hlth. & Ed. Fac. Au. Ed. Fac. Rev. (Christian Brothers), Ser. 2002 A, (LOC: Commerce Bank N.A.), 4.10%, due 10/1/07		A-1	11,650	^µ^ß
5,015	Missouri St. Hlth. & Ed. Fac. Au. Ed. Fac. Rev. (Drury College), Ser. 1999, (LOC: Bank of America), 4.10%, due 10/1/07	VMIG1		5,015	^µ^ß
185	Missouri St. Hlth. & Ed. Fac. Au. Ed. Fac. Rev. (Drury Univ.), Ser. 2003, (LOC: Bank of America), 4.10%, due 10/1/07	VMIG1		185	^µ^ß
5,500	Missouri St. Hlth. & Ed. Fac. Au. Ed. Fac. Rev. (Kansas City Art Institute), Ser. 2005, (LOC: Commerce Bank N.A.), 4.10%, due 10/1/07		A-1	5,500	^µ^ß
6,745	Missouri St. Hlth. & Ed. Fac. Au. Ed. Fac. Rev. (Rockhurst Univ.), Ser. 2002, (LOC: Bank of America), 4.05%, due 10/1/07		A-1+	6,745	^µ^ß
1,800	Missouri St. Hlth. & Ed. Fac. Au. Ed. Fac. Rev. (St. Louis Univ.), Ser. 1999 B, (LOC: Bank of America), 4.08%, due 10/1/07	VMIG1	A-1+	1,800	^µ^ß
3,565	Missouri St. Hlth. & Ed. Fac. Au. Ed. Fac. Rev. (St. Louis Univ.), Ser. 2002, (LOC: U.S. Bank), 4.08%, due 10/1/07	VMIG1		3,565	^µ^ß
1,230	Missouri St. Hlth. & Ed. Fac. Au. Hlth. Fac. Rev. (St. Francis Med. Ctr.), Ser. 1996 A, (LOC: Bank of America), 4.05%, due 10/1/07		A-1+	1,230	^µ^ß
2,075	Missouri St. Pub. Utils. Comm. Rev. Construction Notes, Ser. 2007, 4.75%, due 9/1/08	MIG1		2,093
4,130	Muni. Sec. Trust Cert. G.O., Ser. 2007-336A, (AMBAC Insured), 3.92%, due 10/4/07	VMIG1		4,130	^ñ^µ^e
11,125	O Fallon Cert. Participation (Floaters), Ser. 2002-1396, (MBIA Insured), 3.95%, due 10/4/07	VMIG1		11,125	^µ^r
3,950	St. Louis Ind. Dev. Au. Ind. Rev. (Schnuck Markets, Inc.), Ser. 1985, (LOC: U.S. Bank), 3.95%, due 10/4/07	P-1		3,950	^µ
				72,363

Montana (0.2%)
2,745	Montana St. Board of Investments Rev. (Muni. Fin. Cons. Act-Intercap), Ser. 1994, 3.85%, due 3/1/09 Putable 3/1/08	VMIG1		2,745	^µ

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$2,000	Montana St. Board of Investments Rev. (Muni. Fin. Cons. Act-Intercap), Ser. 2000, 3.85%, due 3/1/25 Putable 3/1/08	VMIG1		$2,000	^µ
				4,745

Nebraska (0.5%)
9,245	Central Plains Energy Proj. Rev. (Gas Proj.) (Floaters), Ser. 2007-3916, (LOC: Merrill Lynch Capital Markets), 4.01%, due 10/4/07			9,245	^µ
2,680	Lancaster Co. Hosp. Au. Number 1 Hosp. Rev. (Bryan Med. Ctr. Proj.), Ser. 2002, (AMBAC Insured), 4.05%, due 10/1/07	VMIG1		2,680	^µ^ß^u
				11,925

Nevada (1.4%)
1,900	ABN Amro Munitops Cert. Trust Rev., Ser. 2006, (MBIA Insured), 3.93%, due 10/4/07	VMIG1		1,900	^ñ^µ^a
1,065	Clark Co. Sch. Dist. (Merlots), Ser. 2006-D12, (AMBAC Insured), 3.92%, due 10/3/07		A-1+	1,065	^µ^v
10,000	Henderson Hlth. Care Fac. Rev., Ser. 2007, (LOC: Citibank, N.A.), 3.92%, due 10/4/07	VMIG1		10,000	^µ
8,970	JP Morgan Chase & Co. (Putters), Ser. 2006-1633P, (LOC: JP Morgan Chase), 4.01%, due 10/4/07			8,970	^µ
3,300	Nevada St. G.O. (Floaters), Ser. 2000-344, (FGIC Insured), 3.91%, due 10/4/07	VMIG1		3,300	^µ^s
4,265	Nevada Sys. Higher Ed. Univ. Rev. (Floaters), Ser. 2005-1240, (AMBAC Insured), 3.91%, due 10/4/07		A-1+	4,265	^µ^s
				29,500

New Hampshire (0.9%)
3,200	Cheshire Co. G.O. TANS, Ser. 2007, 3.75%, due 12/27/07			3,200	^ØØ
7,000	Merrimack Co. G.O. TANS, Ser. 2007, 4.05%, due 12/28/07			7,001
4,000	Merrimack Co. G.O. TANS, Ser. 2007, 4.25%, due 12/28/07			4,004
800	New Hampshire Hlth. & Ed. Fac. Au. Rev. (Seacoast Hospice), Ser. 2006, (LOC: Citizens Bank), 3.93%, due 10/4/07			800	^µ
5,400	Strafford Co. G.O. TANS, Ser. 2007, 3.75%, due 12/31/07			5,401
				20,406

New Jersey (1.6%)
4,900	Allamuchy Township Board Ed. G.O. Temporary Notes, Ser. 2007, 4.00%, due 3/14/08			4,907
3,289	Highlands G.O. BANS, Ser. 2007, 4.00%, due 1/30/08			3,292
14,200	Hoboken G.O. BANS, Ser. 2007, 3.90%, due 9/12/08			14,213
4,840	New Jersey Econ. Dev. Au. Econ. Dev. Rev. (Comm. Options Inc. Proj.), Ser. 2007, (LOC: Wachovia Bank & Trust Co.), 3.91%, due 10/4/07			4,840	^µ^ß

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$6,800	Perth Amboy G.O. BANS, Ser. 2006, 4.35%, due 10/19/07	MIG1		$6,802
				34,054

New York (1.0%)
7,200	Muni. Sec. Trust Cert. G.O., Ser. 2001, (LOC: Bear Stearns), 4.05%, due 10/1/07	VMIG1		7,200	^ñ^µ
4,970	New York City Transitional Fin. Au. Rev., Ser. 2002-2A, (LOC: Dexia Credit Locale de France), 3.98%, due 10/1/07	VMIG1	A-1+	4,970	^µ
4,515	New York G.O., Ser. 2004 H1, (LOC: Bank of New York), 3.98%, due 10/1/07	VMIG1	A-1+	4,515	^µ
2,500	New York St. Dorm. Au. Rev., Ser. 2006-1370, (FHA Insured), 3.91%, due 10/4/07		A-1+	2,500	^µ^r
1,000	New York St. Dorm. Au. Rev., Ser. 2005-6052, (AMBAC Insured), 3.91%, due 10/4/07	VMIG1		1,000	^µ^h
495	Sales Tax Asset Receivable Corp., Ser. 2006-552, (AMBAC Insured), 3.91%, due 10/4/07	VMIG1		495	^µ^h
				20,680

North Carolina (1.7%)
27,095	BB&T Muni. Trust Var. St. (Floaters), Ser. 2007-1002, (LOC: Branch Banking & Trust Co.), 4.02%, due 10/4/07	VMIG1		27,095	^µ
1,990	Cabarrus Co. Cert. Participation, Ser. 2003-4520, (AMBAC Insured), 3.92%, due 10/4/07		A-1+	1,990	^µⁱ
2,485	Eclipse Funding Trust (Solar Eclipse-Union Co.), Ser. 2006-0155, (AMBAC Insured), 3.91%, due 10/4/07		A-1+	2,485	^µ^u
3,600	North Carolina Med. Care Comm. Hlth. Care Fac. Rev. (Sisters of Mercy Svcs. Corp.), Ser. 2007, (LOC: Branch Banking & Trust Co.), 3.88%, due 10/4/07	VMIG1		3,600	^µ^ß
1,270	Puttable Floating Option Tax Exempt Receipts (Floaters), Ser. 2000, (LOC: Merrill Lynch Capital Markets), 4.04%, due 10/4/07		A-1	1,270	^µ
				36,440

North Dakota (0.0%)
500	North Dakota Rural Wtr. Fin. Corp. Rev. (Pub. Proj. Construction Notes), Ser. 2004-A1, 3.70%, due 10/1/07	MIG1		500	^µ

Ohio (6.5%)
15,565	BB&T Muni. Trust Var. St. (Floaters), Ser. 2007-1004, (LOC: Branch Banking & Trust Co.), 4.02%, due 10/4/07	VMIG1		15,565	^µ
1,095	Clermont Co. Econ. Dev. Rev. (John Q Hammons Proj.), Ser. 1989, (LOC: Fifth Third Bank), 4.05%, due 11/1/07			1,095	^µ^ß

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$3,455	Cleveland-Cuyahoga Co. Port Au. Ed. Fac. Rev. (Laurel Sch. Proj.), Ser. 2004, (LOC: Key Bank), 3.92%, due 10/4/07			$3,455	^µ^ß
3,850	Deerfield Township G.O. BANS, Ser. 2006, 3.61%, due 11/29/07	MIG1		3,850
9,665	Franklin Co. Hlth. Care Fac. Rev. (Presbyterian), Ser. 2006 C, (LOC: National City Bank), 3.90%, due 10/4/07		A-1	9,665	^µ^ß
8,000	Franklin Co. Hlth. Care Fac. Rev. (Presbyterian), Ser. 2005 B, (LOC: National City Bank), 3.90%, due 10/4/07		A-1	8,000	^µ^ß
4,750	Hamilton G.O. BANS, Ser. 2007, 4.00%, due 9/11/08			4,761
1,100	Licking Co. Career & Technology Ed. Ctrs. G.O. BANS (Sch. Fac. Construction), Ser. 2007, 4.50%, due 9/10/08			1,107
3,500	Lucas Co. G.O., Ser. 2007-1, 4.00%, due 9/18/08	MIG1	SP-1+	3,511
4,660	Marysville G.O. BANS, Ser. 2007, 4.13%, due 6/5/08	MIG1		4,673
3,500	Marysville Tax Increment Fin. Rev. (Coleman's Crossing Rd.), Ser. 2007, (LOC: Fifth Third Bank), 4.25%, due 9/11/08			3,516
6,650	Muni. Sec. Trust Cert. G.O., Ser. 2001-133A, (FSA Insured), 3.90%, due 10/4/07		A-1	6,650	^ñ^µ^e
2,830	Ohio St. G.O., Ser. 2005-7508, (LOC: Citibank, N.A.), 3.92%, due 10/4/07	VMIG1		2,830	^µ
3,200	Ohio Univ. Gen. Receipts Athens BANS, Ser. 2007, 4.25%, due 1/16/08	MIG1		3,206
1,220	Olmsted Falls BANS, Ser. 2006, 3.90%, due 10/18/07			1,220
17,265	Puttable Floating Option Tax Exempt Receipts, Ser. 2007-4216, (LOC: Merrill Lynch Capital Markets), 4.04%, due 10/1/07			17,265	^µ
3,000	Richland Co. G.O. BANS (Correctional Fac.), Ser. 2007, 4.50%, due 2/21/08			3,008
660	Sidney City Sch. Dist. G.O. BANS (Energy Construction), Ser. 2006, 4.28%, due 11/29/07			661
1,200	Sidney City Sch. Dist. G.O. BANS (Sch. Construction), Ser. 2006, 4.07%, due 11/29/07			1,201
4,850	Stark Co. Port Au. Econ. Dev. Rev. (Vision FC LLC Proj.), Ser. 2007, (LOC: Fifth Third Bank), 3.90%, due 10/5/07			4,850	^µ
6,000	Toledo G.O. BANS (Capital Improvements), Ser. 2007-1, 3.85%, due 10/25/07			6,001
19,500	Union Township Tax Increment Rev. BANS, Ser. 2007, 4.25%, due 9/17/08	MIG1		19,618
3,000	Univ. of Cincinnati Gen. Receipts Bonds BANS, Ser. 2007 C, 4.50%, due 1/24/08	MIG1	SP-1+	3,008
1,500	Univ. of Toledo Gen. Receipts Bonds, Ser. 2002, (FGIC Insured), 4.05%, due 10/1/07	VMIG1	A-1+	1,500	^µ^u
7,300	Univ. of Toledo Gen. Receipts Bonds, Ser. 2001-SGA125, (FGIC Insured), 3.93%, due 10/3/07		A-1+	7,300	^µ^t
2,330	Wickliffe BANS (Capital Improvements), Ser. 2007, 4.25%, due 12/6/07			2,332
				139,848

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Oklahoma (1.3%)
$6,995	Hulbert Econ. Dev. Au. Econ. Dev. Rev., Ser. 2007-301, (LOC: Bank of America), 3.93%, due 10/4/07	VMIG1		$6,995	^µ
22,000	Tulsa Co. Ind. Au. Cap. Imp. Rev., Ser. 2003 A, (LOC: Bank of America), 3.70%, due 11/15/17 Putable 11/15/07		A-1+	22,000	^µ
				28,995

Oregon (0.6%)
1,000	Multnomah Co. Higher Ed. Rev. (Concordia Univ. Portland Proj.), Ser. 1999, (LOC: Key Bank), 4.10%, due 10/1/07	VMIG1		1,000	^µ^ß
6,315	Oregon Sch. Boards Assoc. Short-Term Borrowing Prog. Cert. Participation, Ser. 2007 A, 3.80%, due 5/30/08			6,315
5,545	Oregon St. Homeowner Rev. (Floaters), Ser. 2006-229, (LOC: Lloyd's Bank), 3.96%, due 10/4/07	VMIG1		5,545	^µ
				12,860

Pennsylvania (3.2%)
6,025	Beaver Co. Ind. Dev. Au. Poll. Ctrl. Rev. (FirstEnergy), Ser. 2006 C, (LOC: Barclays Bank PLC), 4.00%, due 10/1/07	VMIG1	A-1+	6,025	^µ
14,125	Butler Co. Gen. Au. Rev. (Hampton Township Sch. Dist. Proj.), Ser. 2007, (FSA Insured), 3.87%, due 10/4/07			14,125	^µ^v
12,270	Deutsche Bank Spears/Lifers Trust Var. St., Ser. 2007-247, (AMBAC Insured), 3.91%, due 10/4/07		A-1+	12,270	^µ^k
2,115	Lawrence Co. Ind. Dev. Au. Rev. (Villa Maria Proj.), Ser. 2003, (LOC: Allied Irish Bank), 3.88%, due 10/4/07	VMIG1		2,115	^µ^ß^ØØ
7,700	Muni. Sec. Trust Cert. G.O., Ser. 2007-7065, (AMBAC Insured), 3.92%, due 10/4/07	VMIG1		7,700	^ñ^µ^e
21,530	Pennsylvania Econ. Dev. Fin. Au. Rev. (Merlots), Ser. 2007-F01, (LOC: Wachovia Bank & Trust Co.), 3.92%, due 10/3/07		A-1+	21,530	^µ
5,000	St. Pub. Sch. Bldg. Au. Sch. Rev., Ser. 2006-566, (FSA Insured), 3.92%, due 10/4/07	VMIG1		5,000	^µ^h
				68,765

Puerto Rico (1.1%)
9,900	Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev. (Floaters), Ser. 2006-1984, (LOC: Morgan Stanley), 3.91%, due 10/4/07		A-1+	9,900	^µ
13,500	Puerto Rico Sales Tax Fin. Corp. Sales Tax Rev. (Floaters), Ser. 2007-2019, (LOC: Morgan Stanley), 3.91%, due 10/4/07		A-1+	13,500	^µ
				23,400

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

South Carolina (2.2%)
$3,700	Charleston Ed. Excellence Fin. Corp. Rev., Ser. 2006-515, (LOC: Citibank, N.A.), 3.92%, due 10/4/07			$3,700	^µ
22,985	Greenville Co. Sch. Dist. Installment Purchase Ref. Rev. (Floaters), Ser. 2004-982, (LOC: Morgan Stanley), 3.91%, due 10/4/07		A-1+	22,985	^µ^ØØ
4,505	Jasper Co. Rev. BANS, Ser. 2007, 3.85%, due 7/1/08			4,505
1,300	Macon Trust Var. St., Ser. 2007-303, (LOC: Bank of America), 3.93%, due 10/4/07	VMIG1		1,300	^µ
5	Muni. Sec. Trust Cert. G.O., Ser. 2007-293A, (FSA Insured), 3.92%, due 10/4/07	VMIG1		5	^ñ^µ^e
1,900	South Carolina Ed. Fac. Au. for Private Nonprofit Institutions Higher Learning Ed. (Furman University), Ser. 2006 B, (LOC: Wachovia Bank & Trust Co.), 4.00%, due 10/1/07	VMIG1		1,900	^µ^ß
4,685	Three Rivers Solid Waste Au. Solid Waste Disp. Fac. Rev. BANS, Ser. 2007, 3.75%, due 6/1/08		SP-1+	4,685
9,365	Western Carolina Reg. Sewer Au. Sewer Sys. Rev., Ser. 2007-11123, (FSA Insured), 3.92%, due 10/4/07		A-1+	9,365	^µ^h
				48,445

South Dakota (0.2%)
3,600	Watertown IDR (SUPERVALU, Inc. Proj.), Ser. 1994, (LOC: Wachovia Bank & Trust Co.), 3.95%, due 10/3/07			3,600	^µ^ß

Tennessee (2.3%)
1,400	Memphis-Shelby Co. IDB Rev. (Medical Group, Inc.), Ser. 1999, (LOC: SunTrust Bank), 3.87%, due 10/4/07	P-1		1,400	^µ^ß
7,450	Metro. Gov't. Nashville & Davidson Co. IDB Multi-Family Hsg. Rev. (Spinnaker), Ser. 2002, (LOC: Fannie Mae), 3.81%, due 7/15/32		A-1+	7,450	^µ^ß
8,160	Sevier Co. Pub. Bldg. Au. (Local Govt. Pub. Imp.), Ser. 2007, (AMBAC Insured), 4.10%, due 10/1/07	VMIG1		8,160	^µ^j
3,250	Sevier Co. Pub. Bldg. Au. (Pub. Construction Notes Proj.), Ser. 2007-A6, 3.80%, due 4/1/10 Putable 4/1/08	MIG1		3,250	^µ
2,700	Sevier Co. Pub. Bldg. Au. Rev. (Pub. Construction Notes Proj.), Ser. 2006-A4, 3.65%, due 10/1/08 Putable 4/1/08	MIG1		2,700	^µ
2,000	Sevier Co. Pub. Bldg. Au. Rev. (Pub. Construction Notes Proj.), Ser. 2007-A5, 3.65%, due 4/1/10 Putable 4/1/08	MIG1		2,000	^µ
9,480	Tennessee Energy Acquisition Corp. Gas Rev., (Floaters), Ser. 2006-3646, (LOC: Merrill Lynch Capital Markets), 4.01%, due 10/4/07			9,480	^µ
14,785	Tennessee Energy Acquisition Corp. Gas Rev. (Floaters), Ser. 2007-2020, (LOC: Morgan Stanley), 3.96%, due 10/4/07	VMIG1		14,785	^µ
				49,225

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Texas (16.5%)
$11,675	ABN Amro Munitops Cert. Trust Rev., Ser. 2006-30, (PSF Insured), 3.93%, due 10/4/07	VMIG1		$11,675	^µ^a
6,105	Aledo Independent Sch. Dist. (Floaters), Ser. 2005-2769, (PSF Insured), 3.99%, due 10/4/07			6,105	^µ^r
6,345	Austin Convention Enterprises, Inc. Convention Ctr. (Putters), Ser. 2006-1614, (XLCA Insured), 3.92%, due 10/4/07		A-1+	6,345	^µ^o
7,945	Austin Hsg. Fin. Corp. Multi-Family Hsg. Rev. (Merlots), Ser. 2007-G02, (LOC: Bank of New York), 3.92%, due 10/3/07		A-1+	7,945	^µ
4,600	Austin Wtr. & Wastewater Sys. Rev. (Merlots), Ser. 2006-D10, (FSA Insured), 3.92%, due 10/3/07		A-1+	4,600	^µ^v
10,565	BB&T Muni. Trust Var. St. (Floaters), Ser. 2007-2010, (LOC: Branch Banking & Trust Co.), 3.90%, due 10/4/07	VMIG1		10,565	^µ
3,005	BB&T Muni. Trust Var. St. (Floaters), Ser. 2007-2036, (LOC: Branch Banking & Trust Co.), 3.92%, due 10/4/07	VMIG1		3,005	^µ
5,360	Beaumont G.O., Ser. 2006-2223, (CIFG Insured), 3.92%, due 10/4/07	VMIG1		5,360	^µⁱ
17,030	Deutsche Bank Spears/Lifers Trust Var. St., Ser. 2007-329, (AMBAC Insured), 3.96%, due 10/1/07			17,030	^µ^k
35,500	Deutsche Bank Spears/Lifers Trust Var. St., Ser. 2007-292, (LOC: Deutsche Bank), 3.96%, due 10/4/07		A-1+	35,500	^µ
6,795	Dickinson Independent Sch. Dist. (Putters), Ser. 2007-1518B, (PSF Insured), 3.92%, due 10/4/07	VMIG1		6,795	^µ^o
2,970	Dickinson Independent Sch. Dist. (Putters), Ser. 2007-1517B, (PSF Insured), 3.92%, due 10/4/07	VMIG1		2,970	^µ^o
4,700	Eclipse Funding Trust (Solar Eclipse-Houston Independent Sch.), Ser. 2006-0019, (FSA Insured), 3.92%, due 10/4/07	VMIG1		4,700	^ñ^µ^u
4,345	Frenship Independent Sch. Dist. (Floaters), Ser. 2005, (PSF Insured), 3.99%, due 10/4/07			4,345	^µ^k
6,480	Harris Co. Hlth. Fac. Dev. Corp. Rev. (Putters), Ser. 2005-1018, (LOC: JP Morgan Chase), 3.92%, due 10/4/07	VMIG1	A-1+	6,480	^µ
1,370	Hidalgo Co. G.O. (Merlots), Ser. 2007-C03, (FSA Insured), 3.92%, due 10/3/07		A-1+	1,370	^µ^d
7,780	Keller Ind. Sch. Dist. G.O. (ABN Amro Munitops Cert. Trust), Ser. 2006-30, (PSF Insured), 3.93%, due 10/4/07	VMIG1		7,780	^ñ^µ^a
2,700	Lufkin Hlth. Fac. Dev. Corp. Hlth. Sys. Ref. Rev. (Mem. Hlth. Sys. East Texas), Ser. 2005, (LOC: Wachovia Bank & Trust Co.), 4.09%, due 10/1/07		A-1+	2,700	^µ^ß
5,270	Lufkin Hlth. Fac. Dev. Corp. Hlth. Sys. Ref. Rev. (Mem. Hlth. Sys. East Texas), Ser. 1998, 5.70%, due 10/1/07 Pre-Refunded 2/15/28			5,451	^ß

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$8,450	Muni. Sec. Trust Cert. G.O., Ser. 2007-3082A, (MBIA Insured), 4.05%, due 10/1/07	VMIG1		$8,450	^ñ^µ^e
9,520	Muni. Sec. Trust Cert. G.O., Ser. 2007-315A, (FSA Insured), 3.92%, due 10/4/07	VMIG1		9,520	^ñ^µ^e
3,775	Muni. Sec. Trust Cert. G.O., Ser. 2006-279A, (PSF Insured), 3.92%, due 10/4/07	VMIG1		3,775	^ñ^µ^e
14,860	Muni. Sec. Trust Cert. G.O., Ser. 2007-338A, (PSF Insured), 3.92%, due 10/4/07	VMIG1		14,860	^ñ^µ^e
8,990	Muni. Sec. Trust Cert. G.O., Ser. 2000-9005A, (FSA Insured), 3.92%, due 10/4/07		A-1	8,990	^ñ^µ^e
7,995	Muni. Sec. Trust Cert. G.O., Ser. 2007-312A, (LOC: Bear Stearns), 3.92%, due 10/4/07	VMIG1		7,995	^ñ^µ^e
29,740	Munitops II Trust, Ser. 2007-63, (PSF Insured), 3.93%, due 10/4/07			29,740	^µ^a
22,695	Munitops II Trust, Ser. 2007-67, (PSF Insured), 3.93%, due 10/4/07			22,695	^ñ^µ^a
5,750	Puttable Floating Option Tax Exempt Receipts, Ser. 2007, (MBIA Insured), 3.99%, due 10/1/07			5,750	^µ^r
10,610	Puttable Floating Option Tax Exempt Receipts (Lampasasa), Ser. 2007-4309, (PSF Insured), 3.95%, due 10/4/07			10,610	^µ^r
9,230	Puttable Floating Option Tax Exempt Receipts (Leander Sch. Dist.), Ser. 2007-256, (PSF Insured), 3.96%, due 10/4/07			9,230	^µ^r
5,105	San Antonio Wtr. Rev., Ser. 2006-7028, (MBIA Insured), 3.92%, due 10/4/07	VMIG1		5,105	^µⁱ
10,000	Texas Muni. Gas Acquisition & Supply Corp. I Gas Supply Rev., Ser. 2007-1453, (LOC: Merrill Lynch Capital Markets), 4.01%, due 10/4/07		A-1+	10,000	^µ
1,680	Texas Muni. Gas Acquisition & Supply Corp. I Gas Supply Rev. (Floaters), Ser. 2006-1578, (LOC: Morgan Stanley), 3.96%, due 10/4/07		A-1+	1,680	^µ
20,525	Texas Muni. Gas Acquisition & Supply Corp. II Gas Supply Rev., Ser. 2007-10014, (LOC: Dexia Credit Locale de France), 3.99%, due 10/4/07		A-1+	20,525	^µ
24,745	Texas St. Turnpike Au. Central Turnpike Sys. Rev., Ser. 2007-10041, (AMBAC Insured), 3.92%, due 10/4/07		A-1+	24,745	^µⁱ
7,241	Texas St. Turnpike Au. Central Turnpike Sys. Rev. (Floaters), Ser. 2006-1408, (AMBAC Insured), 3.91%, due 10/4/07		A-1+	7,241	^µ^s
3,520	Univ. of Texas Univ. Rev., Ser. 2007-1080, (LOC: Citigroup Global Markets), 3.92%, due 10/4/07	VMIG1		3,520	^µ
				355,152

Utah (0.8%)
4,800	Central Wtr. Conservancy Dist. G.O., Ser. 1998 E, (AMBAC Insured), 3.87%, due 10/3/07	VMIG1	A-1+	4,800	^µ^p

See Notes to Schedule of Investments



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$2,950	Lehi Elec. Util. Rev., Ser. 2005, (FSA Insured), 3.93%, due 10/3/07			$2,950	^µ^l
8,500	Utah Trans. Au. Sales Tax Rev. (Floaters), Ser. 2007-63Z, (MBIA Insured), 3.91%, due 10/4/07			8,500	^µ^m
				16,250

Vermont (0.3%)
3,400	Vermont Ed. & Hlth. Bldg. Fin. Agcy. Rev. (Middlebury College Proj.), Ser. 2002 B, 3.58%, due 11/1/32 Putable 11/1/07			3,400	^µ
2,655	Vermont Ed. & Hlth. Bldg. Fin. Agcy. Rev. (Mount Ascutney Hosp. Proj.), Ser. 2004 A, (LOC: TD Banknorth N.A.), 4.00%, due 10/1/07	VMIG1		2,655	^µ^ß
194	Vermont Ed. & Hlth. Bldg. Fin. Agcy. Rev. (Northeastern Hosp.), Ser. 2004 A, (LOC: TD Banknorth N.A.), 4.00%, due 10/1/07	VMIG1		194	^µ^ß
				6,249

Virginia (1.4%)
7,500	ABN Amro Munitops. Cert. Trust Rev., Ser. 2005-48, (LOC: ABN Amro Bank N.V.), 3.93%, due 10/4/07	VMIG1		7,500	^ñ^µ
7,150	BB&T Muni. Trust Var. St. (Floaters), Ser. 2007-1006, (LOC: Branch Banking & Trust Co.), 4.02%, due 10/4/07	VMIG1		7,150	^µ
3,000	BB&T Muni. Trust Var. St. Commonwealth Trans. Board (Floaters), Ser. 2007-2050, (LOC: Branch Banking & Trust Co.), 3.94%, due 10/4/07	VMIG1		3,000	^µ
13,150	Virginia College Bldg. Au. Ed. Fac. Rev. (Richmond Proj.), Ser. 2006, (LOC: SunTrust Bank), 4.08%, due 10/1/07	VMIG1		13,150	^µ^ß
				30,800

Washington (2.8%)
6,865	Deutsche Bank Spears/Lifers Trust Var. St. (Everett Hsg.), Ser. 2007-131, (LOC: Deutsche Bank), 4.02%, due 10/4/07			6,865	^µ
3,700	Everett Pub. Fac. Dist. Proj. Rev., Ser. 2007, (LOC: Dexia Credit Locale de France), 4.10%, due 10/1/07		A-1+	3,700	^µ
4,622	King Co. Swr. Rev. (Floaters), Ser. 2005-1091, (FSA Insured), 3.91%, due 10/4/07			4,622	^µ^s
5,335	Muni. Sec. Trust Cert. G.O., Ser. 2007-301A, (AMBAC Insured), 3.92%, due 10/4/07	VMIG1		5,335	^ñ^µ^e
3,175	Pierce Co. Sch. Dist. Number 010 Tacoma G.O. (Floaters), Ser. 2005-3316, (FSA Insured), 3.99%, due 10/4/07	VMIG1		3,175	^µ^r
2,607	Port of Seattle Rev. (Floaters), Ser. 2002-739D, (FGIC Insured), 3.91%, due 10/4/07		A-1+	2,607	^µ^s
7,240	Port of Seattle Rev. (Floaters), Ser. 2006-3499, (XLCA Insured), 3.95%, due 10/4/07			7,240	^µ^r

See Notes to Schedule of Investments

100



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$7,755	Seattle Museum Dev. Au. Spec. Oblig. Rev. (Merlots), Ser. 2005-D03, (LOC: Wachovia Bank & Trust Co.), 3.92%, due 10/3/07		A-1+	$7,755	^µ
17,000	Washington St. Hlth. Care Fac. Au. Rev. (Swedish Hlth. Svcs.), Ser. 2006, (LOC: Citibank, N.A.), 3.96%, due 10/3/07	VMIG1	A-1+	17,000	^µ^ß
1,000	Washington St. Hsg. Fin. Commission Non-Profit Rev. (St. Vincent de Paul Proj.), Ser. 2000 A, (LOC: Wells Fargo Bank & Trust Co.), 3.81%, due 10/4/07		A-1+	1,000	^µ^ß
1,600	Washington St. Hsg. Fin. Commission Non-Profit Rev. (Tacoma Art Museum Proj.), Ser. 2002, (LOC: Northern Trust Co.), 4.10%, due 10/1/07	VMIG1		1,600	^µ^ß
				60,899

Wisconsin (3.8%)
3,000	Antigo Unified Sch. Dist. TRANS, Ser. 2006, 3.85%, due 11/1/07			3,000
1,560	Appleton Waterworks Rev., Ser. 2007-A, (MBIA Insured), 4.00%, due 1/1/08			1,562
19,320	Eclipse Funding Trust Var. St. (Solar Eclipse-Wisconsin St.), Ser. 2007-0004, (FSA Insured), 3.91%, due 10/4/07		A-1+	19,320	^µ^u
4,540	Edgerton Sch. Dist. G.O. TRANS, Ser. 2006, 3.71%, due 10/24/07			4,540
6,500	Muni. Sec. Trust Cert. G.O., Ser. 2007-335, (LOC: Bear Stearns), 3.92%, due 10/4/07	VMIG1		6,500	^ñ^µ
4,250	New Richmond Sch. Dist. BANS, Ser. 2007, 4.13%, due 6/6/08	MIG1		4,256
2,000	Nicolet High Sch. Dist. TRANS, Ser. 2006, 4.25%, due 10/30/07			2,001
3,000	Wisconsin Sch. Dist. Cash Flow Management Prog. Cert. Participation, Ser. 2006 B, 4.25%, due 11/1/07	MIG1		3,002
5,955	Wisconsin St. Hlth & Ed. Fac. Au. Rev. (Beloit College Proj.), Ser. 2007, (XLCA Insured), 4.05%, due 10/1/07		A-1+	5,955	^µ^ß^d
500	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Alverno College Proj.), Ser. 1997, (LOC: Allied Irish Bank), 4.10%, due 10/1/07	VMIG1		500	^µ^ß
4,125	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Blood Ctr.), Ser. 1994 A, (LOC: Marshall & Ilsley), 3.93%, due 10/3/07		A-1	4,125	^µ^ß
3,145	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Concordia Univ. of Wisconsin, Inc. Proj.), Ser. 2006, (LOC: Marshall & Ilsley), 3.94%, due 10/4/07			3,145	^µ^ß
3,175	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Edgewood College), Ser. 2006, (LOC: U.S. Bank), 4.10%, due 10/1/07		A-1+	3,175	^µ^ß
8,090	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Floaters), Ser. 2003-858, (MBIA Insured), 3.95%, due 10/4/07			8,090	^µ^p
9,500	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Fort Healthcare Inc.), Ser. 2007 A, (LOC: JP Morgan Chase), 4.08%, due 10/1/07		A-1+	9,500	^µ^ß
1,400	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Lutheran College Proj.), Ser. 2003, (LOC: U.S. Bank), 4.10%, due 10/1/07		A-1+	1,400	^µ^ß

See Notes to Schedule of Investments

101



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$935	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Riverview Hosp. Assoc.), Ser. 2001, (LOC: U.S. Bank), 4.10%, due 10/1/07		A-1+	$935	^µ^ß
				81,006

	Total Investments (98.0%)			2,111,103
	Cash, receivables and other assets, less liabilities (2.0%)			43,235
	Total Net Assets (100.0%)			$2,154,338

See Notes to Schedule of Investments

102

Schedule of Investments Municipal Master Series (Unaudited)



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Municipal Notes (98.4%)

Alabama (0.2%)
$988	Birmingham Pub. Park & Rec. Board Rev., Ser. 1997, (LOC: AmSouth Bank), 3.99%, due 10/4/07			$988	^µ^ß
300	Parrish IDB PCR (Alabama Pwr. Co. Proj.), Ser. 1994, 4.04%, due 10/1/07		A-1	300	^µ^ß
				1,288

Arizona (0.7%)
3,995	RBC Muni. Prod., Inc. Trust Var. St. Rev. (Floater Cert.), Ser. 2007 C-6, (LOC: Royal Bank of Canada), 3.97%, due 10/4/07	VMIG1		3,995	^µ

Arkansas (1.5%)
8,560	Morgan Keegan Muni. Prod., Inc. Var. St. Trust Receipts, Ser. 2006 D, (LOC: IXIS Funding Corp.), 3.98%, due 10/4/07		A-1+	8,560	^µ^q

California (5.0%)
300	California St. Muni. Sec. Trust Receipts, Ser. 2001-135, (AMBAC Insured), 4.05%, due 10/1/07		A-1+	300	^µ^t
1,335	California Statewide Comm. Dev. Corp. Rev. (RL Group LLC), Ser. 1998 C, (LOC: Mellon 1st Business Bank), 3.95%, due 10/3/07			1,335	^µ^ß
5,000	Contra Costa Co. Multi-Family Hsg. Rev. (Pleasant Hill BART Transit), Ser. 2006 A, 3.95%, due 4/15/46			5,002	^ß
22,010	Deutsche Bank Spears/Lifers Trust Var. St. Rev., Ser. 2007-116, (LOC: Deutsche Bank), 4.02%, due 10/4/07			22,010	^µ
				28,647

Colorado (0.8%)
1,000	Central Platte Valley Metro. Dist., Ser. 2006, (LOC: BNP Paribas), 3.70%, due 12/1/07		A-1+	1,000	^µ
1,995	El Paso Co. Single Family Mtge. Rev. (Merlots), Ser. 2007 C44, (LOC: Government National Mortgage Association), 3.97%, due 10/3/07	VMIG1		1,995	^µ^d
1,811	Rev. Bond Cert. Ser. Trust Var. St., (Sterling Park), Ser. 2006-6, (AIG Insured), 4.06%, due 10/4/07			1,811	^µ
				4,806

Delaware (0.1%)
300	Univ. of Delaware Rev., Ser. 2004 B, (LOC: Bank of America), 4.00%, due 10/1/07		A-1+	300	^µ

See Notes to Schedule of Investments

103



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Florida (4.6%)
$2,400	Deutsche Bank Spears/Lifers Trust Var. St. Rev., Ser. 2007-351, (AMBAC Insured), 3.92%, due 10/3/07		A-1+	$2,400	^µ^k
3,250	Florida Dev. Fin. Corp. IDR (4504 30th Street West LLC Proj.), Ser. 2007, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07			3,250	^µ
5,560	Florida Hsg. Fin. Corp. Multi-Family Rev. (Floaters), Ser. 2007-3868, (LOC: Merrill Lynch Capital Markets), 4.04%, due 10/4/07			5,560	^µ
960	Ocean Hwy. & Port Au. Rev., Ser. 1990, (LOC: Wachovia Bank & Trust Co.), 4.03%, due 10/3/07	VMIG1	A-1+	960	^µ
690	Orange Co. Hsg. Fin. Au. Multi-Family Rev., Ser. 2000 E, (LOC: Bank of America), 3.94%, due 10/3/07	VMIG1		690	^µ^ß
1,090	Orange Co. Hsg. Fin. Au. Multi-Family Rev. (Putters), Ser. 2005-1179, (LOC: JP Morgan Chase), 3.96%, due 10/4/07	VMIG1		1,090	^µ
12,815	Puttable Floating Option Tax Exempt Receipts (Floaters), Ser. 2007-1497, (LOC: Merrill Lynch Capital Markets), 4.14%, due 10/4/07		A-1+	12,815	^µ
				26,765

Georgia (7.6%)
1,000	Atlanta Arpt. Rev. (Merlots), Ser. 2004 C14, (FSA Insured), 3.97%, due 10/3/07	VMIG1		1,000	^µv
4,000	Atlanta Arpt. Rev. (Merlots), Ser. 2000 CCC, (FGIC Insured), 3.97%, due 10/3/07	VMIG1		4,000	^µv
1,800	Atlanta Urban Residential Fin. Au. Multi-Family Hsg. Rev. (Capitol Gateway Apts.), Ser. 2005, (LOC: Bank of America), 3.94%, due 10/4/07		A-1+	1,800	^µ^ß
355	Canton Hsg. Au. Multi-Family Rev. (Canton Mill Lofts Proj.), Ser. 1999, (LOC: Branch Banking &Trust Co.), 3.98%, due 10/4/07		A-1+	355	^µ^ß
2,450	Carroll Co. Dev. Au. Rev. (Royal Metal Prod., Inc. Proj.), Ser. 2007, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07	VMIG1		2,450	^µ^ß
2,000	Cartersville Dev. Au. IDR (Bliss & Laughlin), Ser. 1988, (LOC: Bank of America), 4.02%, due 10/4/07			2,000	^µ^ß
7,900	Cobb Co. Hsg. Au. Multi-Family Hsg. Rev. (Woodchase Village Apts. Proj.), Ser. 2003, (LOC: Regions Bank), 3.99%, due 10/4/07	VMIG1		7,900	^µ^ß
1,015	Douglas Co. Dev. Au. IDR (Whirlwind Steel Bldg.), Ser. 1997, (LOC: JP Morgan Chase), 4.15%, due 10/4/07			1,015	^µ^ß
2,405	Gordon Co. Dev. Au. IDR (Nance Carpet & Rug, Inc. Proj.), Ser. 2006, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07			2,405	^µ^ß
1,035	Gwinnett Co. Dev. Au. IDR (Color Image Inc. Proj.), Ser. 1999, (LOC: SouthTrust Bank), 3.98%, due 10/4/07			1,035	^µ^ß
14,695	Puttable Floating Option Tax Exempt Receipts (Floaters), Ser. 2007-3793, (LOC: Merrill Lynch Capital Markets), 4.04%, due 10/4/07			14,695	^µ

See Notes to Schedule of Investments

104



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$5,415	Union City Hsg. Au. Multi-Family Rev. (Floaters), Ser. 2007-3865, (LOC: Merrill Lynch Capital Markets), 4.04%, due 10/4/07			$5,415	^µ
				44,070

Idaho (3.4%)
300	Idaho Hlth. Fac. Au. Rev. (St. Luke's Med. Ctr.), Ser. 2000, (FSA Insured), 4.06%, due 10/1/07	VMIG1	A-1	300	^µ^ßⁿ
6,755	Idaho Hsg. & Fin. Assoc. Single Family Mtge. Rev., Ser. 2007-11192, (LOC: Citibank, N.A.), 4.00%, due 10/4/07	VMIG1		6,755	^µ
12,695	Puttable Floating Option Tax Exempt Receipts (Floaters), Ser. 2007-4049, (LOC: Merrill Lynch Capital Markets), 4.02%, due 10/4/07	VMIG1		12,695	^µ
				19,750

Illinois (9.2%)
2,440	Aurora IDR (FIS Aurora Invest LLC Proj.), Ser. 2001 A, (LOC: National City Bank), 3.98%, due 10/4/07			2,440	^µ^ß
10,580	Aurora Single Family Mtge. Rev., Ser. 2007-10213, (LOC: Government National Mortgage Association), 4.00%, due 10/4/07		A-1+	10,580	^µⁱ
5,000	Aurora Single Family Mtge. Rev. (Merlots), Ser. 2007 C55, (LOC: Government National Mortgage Association), 3.97%, due 10/3/07		A-1+	5,000	^µ^d
4,500	Chicago Enterprise Zone Rev. (J & A LLC Proj.), Ser. 2002, (LOC: Charter One Bank), 3.98%, due 10/4/07			4,500	^µ
2,920	Chicago IDR (Evans Food Prod. Co. Proj.), Ser. 1998, (LOC: LaSalle National Bank), 3.96%, due 10/4/07		A-1+	2,920	^µ
1,160	Chicago Multi-Family Hsg. Rev. (Churchview Supportive Living Fac.), Ser. 2003, (LOC: Harris Trust & Savings Bank), 3.93%, due 10/4/07	VMIG1		1,160	^µ^ß
2,500	Chicago Single Family Mtge. Rev., Ser. 2007 2F, (LOC: Government National Mortgage Association), 3.93%, due 7/1/08			2,500	^f
4,000	Chicago Single Family Mtge. Rev., Ser. 2007 2D, (LOC: Government National Mortgage Association), 3.95%, due 7/1/08			4,000	^j
2,011	Decatur Park Dist. G.O., Ser. 2007 B, 4.25%, due 12/15/07			2,013
1,639	Dundee Township Park Dist. G.O., Ser. 2006, 4.35%, due 12/1/07			1,641
1,500	Elmhurst IDR (Randall Mfg. Prod. Proj.), Ser. 2002, (LOC: LaSalle National Bank), 4.04%, due 10/4/07		A-1+	1,500	^µ^ß
700	Illinois Dev. Fin. Au. IDR (Florence Corp. Proj.), Ser. 1997, (LOC: Bank One), 4.15%, due 10/4/07			700	^µ^ß
980	Illinois Dev. Fin. Au. IDR (JVM LLC Proj.), Ser. 2001, (LOC: Fifth Third Bank), 3.98%, due 10/4/07			980	^µ^ß
4,570	Illinois Dev. Fin. Au. IDR (Trim-Rite Food Corp. Proj.), Ser. 2000, (LOC: Fifth Third Bank), 3.97%, due 10/5/07			4,570	^µ^ß

See Notes to Schedule of Investments

105



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$500	Illinois Fin. Au. IDR (E Kinast Proj.), Ser. 2005 A, (LOC: JP Morgan Chase), 4.15%, due 10/4/07			$500	^µ^ß
3,400	Illinois Fin. Au. IDR (Injection Plastic Corp.), Ser. 2006 A, (LOC: Wachovia Bank & Trust Co.), 4.01%, due 10/3/07			3,400	^µ^ß
1,000	Illinois Fin. Au. IDR (Meyer Ind. LLC Proj.), Ser. 2006, (LOC: Fifth Third Bank), 3.98%, due 10/4/07			1,000	^µ^ß
930	Illinois Fin. Au. IDR (Transparent Container Proj.), Ser. 2004, (LOC: Bank One), 3.98%, due 10/4/07	VMIG1		930	^µ^ß
2,620	Upper Illinois River Valley Dev. Au. IDR (Advanced Drainage Sys.), Ser. 2002, (LOC: National City Bank), 3.98%, due 10/4/07			2,620	^µ^ß
				52,954

Indiana (5.4%)
2,000	Bartholomew Cons. Sch. Corp. Ind. Tax Anticipation Warrants, Ser. 2007, 4.00%, due 12/31/07			2,002
2,680	Concord Comm. Sch. Tax Anticipation Warrants, Ser. 2007, 3.90%, due 12/31/07			2,681
2,000	Crawfordsville Econ. Dev. Ref. Rev. (Pedcor Investments-Shady), Ser. 1993, (LOC: Federal Home Loan Bank), 3.99%, due 10/4/07	VMIG1		2,000	^µ
3,540	Elkhart Co. Econ. Dev. Rev. (Carriage, Inc. Proj.), Ser. 2006, (LOC: National City Bank), 3.98%, due 10/4/07			3,540	^µ
585	Elkhart Co. Econ. Dev. Rev. (Pinnacle Bldg. Sys. Corp.), Ser. 1999, (LOC: Bank One Indiana N.A.), 4.23%, due 10/3/07			585	^µ^ß
1,400	Hamilton Southeastern Sch. Warrants, Ser. 2007, 3.80%, due 12/31/07			1,400
500	Hammond Econ. Dev. Rev. (A.M. Castle & Co. Proj.), Ser. 1994, (LOC: Bank of America), 4.15%, due 10/4/07			500	^µ^ß
4,300	Indiana Hlth. & Ed. Fac. Fin. Au. Hosp. Rev. (Floyd Mem. Hosp. & Hlth. Proj.), Ser. 2006, (LOC: National City Bank), 4.10%, due 10/1/07		A-1	4,300	^µ^ß
2,650	Johnson Co. Tax Anticipation Warrants, Ser. 2007, 4.35%, due 12/31/07			2,654
970	Kendallville Econ. Dev. Rev. (Metal Shred Ind. Proj.), Ser. 2006, (LOC: Fifth Third Bank), 3.97%, due 10/5/07			970	^µ^ß
1,890	Kokomo Econ. Dev. Rev. (Village Comm. Partners IV Proj.), Ser. 1995, (LOC: Federal Home Loan Bank), 3.99%, due 10/4/07	VMIG1		1,890	^µ^ß
1,069	La Porte Co. Econ. Dev. Rev. (Pedcor Investments-Woodland), Ser. 1994, (LOC: Federal Home Loan Bank), 4.00%, due 10/4/07	VMIG1		1,069	^µ
2,600	La Porte Co. Econ. Dev. Rev. (Van Air Proj.), Ser. 2007, (LOC: LaSalle National Bank), 4.01%, due 10/4/07			2,600	^µ^ß
1,087	Noblesville Econ. Dev. Rev. (Princeton Lakes Apts. Proj.), Ser. 2003 B, (LOC: Federal Home Loan Bank), 3.98%, due 10/4/07		A-1+	1,087	^µ

See Notes to Schedule of Investments

106



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$1,105	North Vernon Econ. Dev. Rev. (Oak Meadows Apt. Proj.), Ser. 1995, (LOC: Federal Home Loan Bank), 3.94%, due 10/3/07		A-1+	$1,105	^µ^ß
2,150	Spencer Owen Comm. Schs. Tax Anticipation Warrants, Ser. 2007, 3.90%, due 12/31/07			2,151
500	Tippecanoe Co. Econ. Dev. Ref. Rev. (Lafayette Venetian Blind), Ser. 2004, (LOC: PNC Bank), 3.97%, due 10/4/07			500	^µ^ß
				31,034

Iowa (1.6%)
300	Iowa Higher Ed. Loan Au. Rev. (Private College Wartburg Proj.), Ser. 2000, (LOC: American Trust & Savings), 4.10%, due 10/1/07	VMIG1		300	^µ^ß
400	Mason City IDR (SUPERVALU, Inc. Proj.), Ser. 1994, (LOC: Wachovia Bank & Trust Co.), 3.95%, due 10/3/07			400	^µ^ß
6,315	Muni. Sec. Trust Cert. G.O., Ser. 2007 7042A, (LOC: Government National Mortgage Association), 3.96%, due 10/4/07	VMIG1		6,315	^ñ^µ^e
2,215	Sergeant Bluff IDR (Sioux City Brick & Tile Proj.), Ser.1996, (LOC: U.S. Bank), 3.98%, due 10/4/07			2,215	^µ^ß
				9,230

Kansas (0.7%)
3,925	Junction City G.O., Ser. 2007 A, 5.00%, due 6/1/08			3,950
300	Univ. of Kansas Hosp. Au. Rev. (KU Hlth. Sys.), Ser. 2004, (LOC: Harris Trust & Savings Bank), 4.05%, due 10/1/07		A-1	300	^µ^ß
				4,250

Kentucky (2.5%)
200	Bardstown Ind. Rev. (JAV Invt. LLC Proj.), Ser. 2001, (LOC: Bank One Michigan), 4.15%, due 10/4/07			200	^µ^ß
2,790	Boone Co. Ind. Bldg. Rev. (Benda-Lutz Corp. Proj.), Ser. 2005, (LOC: Fifth Third Bank), 3.97%, due 10/5/07			2,790	^µ^ß
2,700	Boone Co. Ind. Bldg. Rev. (Kiswel, Inc. Proj.), Ser. 2007, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07	VMIG1		2,700	^µ^ß
2,665	Fort Mitchell Ind. Bldg. Rev. (Grandview/Hemmer Proj.), Ser. 1986, (LOC: PNC Bank), 3.90%, due 2/1/08			2,665	^µ
4,000	Fulton Co. Ind. Bldg. Rev. (Burke-Parsons-Bowlby Corp.), Ser. 2006, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07			4,000	^µ^ß
1,800	Lexington-Fayette Urban Co. Arpt. Corp. Rev. Ref. (1st Mtg.), Ser. 1998 C, (MBIA Insured), 4.16%, due 10/1/07	VMIG1		1,800	^µ^l
315	Trimble Co. Econ. Dev. Rev. (Synthetic Materials Proj.), Ser. 2000, (LOC: Citizens Bank), 4.01%, due 10/4/07			315	^µ^ß
				14,470

See Notes to Schedule of Investments

107



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Louisiana (2.0%)
$300	Ascension Parish Rev. (BASF Corp. Proj.), Ser. 1998, 4.13%, due 10/1/07	P-1		$300	^µ^ß
1,000	Calcasieu Parish Pub. Trust Au. Gulf Opportunity Zone Rev. (Delta Equine Ctr. LLC Proj.), Ser. 2007, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07			1,000	^µ^ß
4,940	Deutsche Bank Spears/Lifers Trust Var. St., Ser.2007-137, (LOC: Deutsche Bank), 4.02%, due 10/4/07			4,940	^µ
3,310	Louisiana HFA Single Family Mtge. Rev. (Floaters), Ser. 2006-1566, (LOC: Depfa Bank), 3.96%, due 10/4/07		A-1+	3,310	^µ^s
2,000	Louisiana Local Gov't. Env. Facs. & Comm. Dev. Rev. (SRL Holdings LLC Proj.), Ser. 2007, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07			2,000	^µ^ß
				11,550

Maine (1.1%)
6,000	Maine St. Hsg. Au. Mtge. Purchase Bonds, Ser. 2007 F, 3.85%, due 11/15/34 Putable 9/22/08	VMIG1	A-1+	6,000
500	Westbrook Rev. (Corriveau-Routhier, Inc. Proj.), Ser. 1986, (LOC: Fleet National Bank), 3.90%, due 12/15/07			500	^µ^ß
				6,500

Maryland (0.3%)
1,660	Howard Co. IDR (Preston CT Ltd. Partnership), Ser. 1986, (LOC: SunTrust Bank), 3.95%, due 10/1/07		A-1+	1,660	^µ

Massachusetts (1.5%)
3,000	Cape Cod Reg. Transit Au. RANS, Ser. 2007, 4.00%, due 7/31/08			3,002
2,400	Greater Attleboro Taunton Reg. Transit Au. RANS, Ser. 2007, 4.00%, due 8/22/08			2,402
1,150	Massachusetts St. HFA, Ser. 2005 A, (FSA Insured), 3.85%, due 6/1/08			1,150
1,975	Massachusetts St. Ind. Fin. Agcy. Rev. (Sr. Living Fac.-Forge Hill Proj.), Ser. 1998, 6.75%, due 4/1/30 Pre Refunded 4/1/08			2,044	^ß
				8,598

Michigan (0.3%)
1,000	ABN Amro Munitops Cert. Trust Rev., Ser. 2004-2, (LOC: Government National Mortgage Association), 3.97%, due 10/4/07	VMIG1		1,000	^µ^a
300	Eastern Michigan Univ. Rev., Ser. 2001, (FGIC Insured), 4.05%, due 10/1/07		A-1+	300	^µ^l
300	Northern Michigan Univ. Rev., Ser. 2001, (FGIC Insured), 4.05%, due 10/1/07	VMIG1	A-1	300	^µ^j
300	Univ. of Michigan Univ. Rev., Ser. 2005 A, 4.00%, due 10/1/07	VMIG1	A-1+	300	^µ
				1,900

See Notes to Schedule of Investments

108



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Minnesota (3.0%)
$300	Arden Hills Hsg. & Hlth. Care Fac. Rev. (Presbyterian Homes), Ser. 1999 A, (LOC: U.S. Bank), 4.10%, due 10/1/07		A-1+	$300	^µ^ß
100	Blaine IDR (SUPERVALU, Inc. Proj.), Ser. 1993, (LOC: Wachovia Bank & Trust Co.), 3.95%, due 10/3/07			100	^µ^ß
12,195	Dakota Co. Comm. Dev. Agcy. Multi-Family Hsg. Rev. (Brentwood Hills Apts. Proj.), Ser. 2003 A, (LOC: LaSalle National Bank), 4.15%, due 10/1/07	VMIG1		12,195	^µ^ß
2,415	Plymouth Multi-Family Hsg. Ref. Rev. (At the Lake Apts. Proj.), Ser. 2004, (LOC: Freddie Mac), 3.94%, due 10/4/07	VMIG1		2,415	^µ^ß
280	Roseville Private Sch. Fac. Rev. (Northwestern College Proj.), Ser. 2002, (LOC: Marshall & Ilsley), 4.10%, due 10/1/07	VMIG1		280	^µ^ß
500	Rush City IDR (Plastech Corp. Proj.), Ser. 1999, (LOC: U.S. Bank), 4.09%, due 10/4/07			500	^µ^ß
1,155	St. Paul Hsg. & Redev. Au. Rev. (Goodwill/Easter Seals Proj.), Ser. 2000, (LOC: U.S. Bank), 4.00%, due 10/4/07			1,155	^µ^ß
100	Woodbury Private Sch. Fac. Rev. (St. Ambrose Proj.), Ser. 1999, (LOC: U.S. Bank), 4.00%, due 10/3/07			100	^µ^ß
				17,045

Missouri (1.0%)
1,000	Clayton Ind. Dev. Au. Ind. Ref. Rev. (Bailey Court Proj.), Ser. 1989, (LOC: Commerce Bank N.A.), 3.98%, due 10/4/07		A-1	1,000	^µ
300	Hannibal Ind. Dev. Au. Ind. Rev. (Buckhorn Rubber Prods. Proj.), Ser. 1995, (LOC: JP Morgan Chase), 4.15%, due 10/4/07			300	^µ^ß
100	Jefferson Co. Ind. Dev. Au. Ind. Rev. (GHF Holdings LLC Proj.), Ser. 1994, (LOC: LaSalle National Bank), 4.15%, due 10/4/07			100	^µ^ß
4,000	Missouri St. Env. Imp. & Energy Res. Au. Env. Imp. Rev. (UtiliCorp United, Inc. Proj.), Ser. 1993, (LOC: Citibank, N.A.), 4.23%, due 10/3/07	P-1	A-1+	4,000	^µ^ß
300	Missouri St. Hlth. & Ed. Fac. Au. Ed. Fac. Rev. (Christian Brothers), Ser. 2002 A, (LOC: Commerce Bank N.A.), 4.10%, due 10/1/07		A-1	300	^µ^ß
300	Missouri St. Hlth. & Ed. Fac. Au. Hlth. Fac. Rev. (St. Francis Med. Ctr.), Ser. 1996 A, (LOC: Bank of America), 4.05%, due 10/1/07		A-1+	300	^µ^ß
				6,000

Montana (2.1%)
9,965	Montana St. Board Hsg. (Merlots), Ser. 2007-H11, (LOC: Wachovia Bank & Trust Co.), 3.97%, due 10/3/07		A-1+	9,965	^µ
2,000	Montana St. Board of Investments Rev. (Muni. Fin. Cons. Act-Intercap), Ser. 1994, 3.85%, due 3/1/09 Putable 3/1/08	VMIG1		2,000	^µ
				11,965

See Notes to Schedule of Investments

109



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Nebraska (0.1%)
$400	Norfolk IDR Ref. (SUPERVALU, Inc. Proj.), Ser. 1994, (LOC: Wachovia Bank & Trust Co.), 3.95%, due 10/3/07			$400	^µ^ß

Nevada (2.1%)
1,495	Clark Co. IDR (Floaters), Ser. 2007-1843, (AMBAC Insured), 3.91%, due 10/4/07		A-1+	1,495	^µ^s
1,000	Clark Co. IDR (Floaters), Ser. 2006-1306, (FGIC Insured), 3.94%, due 10/4/07	VMIG1		1,000	^µ^s
9,365	Muni. Sec. Trust Cert. G.O., Ser. 2007-321, Class A, (AMBAC Insured), 3.96%, due 10/4/07	VMIG1		9,365	^ñ^µ^e
				11,860

New Hampshire (0.8%)
1,200	Cheshire Co. G.O. TANS, Ser. 2007, 3.75%, due 12/27/07			1,200
1,500	Merrimack Co. G.O. TANS, Ser. 2007, 4.25%, due 12/28/07			1,501
1,660	New Hampshire St. Hsg. Fin. Au. Multi-Family Rev. (Floaters), Ser. 2006-3438, (LOC: Merrill Lynch Capital Markets), 4.02%, due 10/4/07	VMIG1		1,660	^µ
				4,361

New Jersey (1.5%)
7,665	New Jersey Econ. Dev. Au. Econ. Dev. Rev. (Stamato Realty LLC Proj.), Ser. 2001, (LOC: Comerica Bank), 4.02%, due 10/4/07			7,665	^µ^ß
705	New Jersey Econ. Dev. Au. Econ. Dev. Rev. (Wearbest SIL-TEX Mills Proj.), Ser. 2000, (LOC: Bank of New York), 4.00%, due 10/3/07			705	^µ^ß
				8,370

New Mexico (0.0%)
225	Las Cruces IDR (Parkview Metal Prod. Proj.), Ser. 1997, (LOC: America National Bank & Trust Co.), 4.15%, due 10/4/07			225	^µ^ß

North Carolina (0.9%)
1,550	Iredell Co. Ind. Fac. & Poll. Ctrl. Fin. Au. Ind. Rev. (Riley Technologies Proj.), Ser. 2006, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07			1,550	^µ^ß
2,000	Lincoln Co. Ind. Fac. & Poll. Ctrl. Fin. Au. Rev. Ind. Dev. (Sabo USA, Inc. Proj.), Ser. 2007, (LOC: LaSalle National Bank), 3.98%, due 10/4/07	VMIG1		2,000	^µ^ß
1,875	North Carolina HFA, Ser. 2002, (LOC: Citibank, N.A.), 4.00%, due 10/4/07	VMIG1		1,875	^µ
				5,425

See Notes to Schedule of Investments

110



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

North Dakota (0.3%)
$800	Bismarck IDR Ref. (SUPERVALU, Inc. Proj.), Ser. 1995, (LOC: Wachovia Bank & Trust Co.), 3.95%, due 10/3/07			$800	^µ^ß
1,000	North Dakota HFA Rev. (Fin. Prog. Home Mtge.), Ser. 2004 B, (LOC: KBC Bank N.V.), 3.95%, due 10/3/07	VMIG1		1,000	^µ
				1,800

Ohio (2.2%)
1,750	American Muni. Pwr. BANS (Montpelier Proj.), Ser. 2007, 3.95%, due 7/3/08			1,750
2,060	American Muni. Pwr. BANS (Shelby Proj.), Ser. 2006, 3.70%, due 11/15/07			2,060
1,775	Marion Co. IDR (Mid Ohio Packaging Co. Proj.), Ser. 1995, (LOC: JP Morgan Chase), 4.03%, due 10/4/07			1,775	^µ
1,910	Marysville Wtr. & Swr. G.O. BANS, Ser. 2007, 4.50%, due 1/24/08			1,915
1,800	Revenue Bond Cert. Ser. Trust Var. St. (Park Trails), Ser. 2007-3 (AIG Insured), 4.06%, due 10/4/07			1,800	^µ
115	Trumbull Co. IDR (UTD Steel Svc., Inc. Proj.), Ser. 2000, (LOC: JP Morgan Chase), 4.30%, due 10/4/07			115	^µ^ß
1,445	Vandalia Land Acquisition G.O. BANS, Ser. 2007, 3.88%, due 8/22/08			1,445
1,155	Warren Co. IDR (PAC Mfg. Proj.), Ser. 2000, (LOC: Bank of America), 4.15%, due 10/1/07		A-1+	1,155	^µ^ß
946	Wood Co. IDR (Reclamation Technologies), Ser. 2006, (LOC: National City Bank), 3.98%, due 10/4/07			946	^µ^ß
				12,961

Oregon (0.2%)
705	Marion Co. Hsg. Au. Rev. (Residence at Marian), Ser. 1997, (LOC: U.S. Bank), 3.99%, due 10/4/07		A-1+	705	^µ^ß
300	Multnomah Co. Higher Ed. Rev. (Concordia Univ. Portland Proj.), Ser. 1999, (LOC: Key Bank), 4.10%, due 10/1/07	VMIG1		300	^µ^ß
				1,005

Pennsylvania (2.9%)
4,000	Crawford Co. Ind. Dev. Au. Rev. (Acutec Precision), Ser. 2007, (LOC: National City Bank), 3.98%, due 10/4/07			4,000	^µ^ß
3,200	Fayette Co. Ind. Dev. Au. IDR (Coastal Lumber Co. Proj.), Ser. 2006, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07			3,200	^µ^ß
2,805	Lackawanna Co. Ind. Dev. Au. Rev. (Material Technology Proj.), Ser. 2006, (LOC: Wachovia Bank & Trust Co.), 4.01%, due 10/4/07			2,805	^µ^ß

See Notes to Schedule of Investments

111



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$3,425	Montgomery Co. Ind. Dev. Au. Rev. (RAF Pennsburg Proj.), Ser. 2006 A, (LOC: Wachovia Bank & Trust Co.), 3.96%, due 10/4/07	VMIG1		$3,425	^µ^ß
3,000	Pennsylvania Econ. Dev. Fin. Au. Econ. Dev. Rev., Ser. 1995 D7, (LOC: PNC Bank), 3.93%, due 10/4/07			3,000	^µ
				16,430

Rhode Island (0.2%)
1,180	Rhode Island St. Ind. Facs. Corp. IDR (Precision Turned Components Proj.), Ser. 2000, (LOC: Bank of America), 4.00%, due 10/3/07		A-1+	1,180	^µ^ß

South Carolina (2.4%)
2,775	Jasper Co. BANS, Ser. 2007, 4.25%, due 2/15/08			2,779
1,000	South Carolina Jobs Econ. Dev. Au. Econ. Dev. Rev. (Blue Ridge Log Cabins LLC), Ser. 2007, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07	VMIG1		1,000	^µ^ß
1,985	South Carolina Jobs Econ. Dev. Au. Econ. Dev. Rev. (DCS Diversified Coating), Ser. 2002, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07	VMIG1		1,985	^µ^ß
500	South Carolina Jobs Econ. Dev. Au. Econ. Dev. Rev. (Mancor Ind., Inc. Proj.), Ser. 1999, (LOC: PNC Bank), 3.97%, due 10/4/07			500	^µ^ß
4,125	South Carolina Jobs Econ. Dev. Au. Econ. Dev. Rev. (Woodhead LLC Proj.), Ser. 2007 A, (LOC: Columbus Bank & Trust), 3.94%, due 10/4/07			4,125	^µ^ß
50	South Carolina Jobs Econ. Dev. Au. IDR (Florence RHF Hsg. Proj.), Ser. 1987 A, (LOC: Wachovia Bank & Trust Co.), 4.15%, due 10/3/07			50	^µ^ß
3,420	Three Rivers Solid Waste Au. Solid Waste Disposal Fac. Ref. Rev. BANS, Ser. 2007, 3.72%, due 1/15/08		SP-1+	3,420
				13,859

South Dakota (0.0%)
125	Watertown IDR (SUPERVALU, Inc. Proj.), Ser. 1994, (LOC: Wachovia Bank & Trust Co.), 3.95%, due 10/3/07			125	^µ^ß
80	Watertown IDR Ref. (Ramkota, Inc. Proj.), Ser. 1993, (LOC: U.S. Bank), 4.00%, due 10/4/07			80	^µ^ß
				205

Tennessee (2.5%)
8,000	Morgan Keegan Muni. Prod. Inc. Var. St. Rev., Ser. 2007 F, (LOC: BNP Paribas), 3.91%, due 10/4/07		A-1+	8,000	^µ
2,110	Rutherford Co. IDB IDR (Tenn. Farmers Coop. Proj.), Ser. 1999, (LOC: AMSouth Bank), 3.99%, due 10/4/07			2,110	^µ^ß

See Notes to Schedule of Investments

112



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$3,200	Shelby Co. Hlth., Ed. & Hsg. Fac. Board Multi-Family Hsg. Rev. (Lexington), Ser. 2005 A, (LOC: Fannie Mae), 3.99%, due 10/4/07	VMIG1		$3,200	^µ
300	Stewart Co. IDB Rev. (Synthetic Materials Proj.), Ser. 1999 A, (LOC: Citizens Bank), 4.01%, due 10/4/07			300	^µ^ß
730	Stewart Co. IDB Rev. (Synthetic Materials Proj.), Ser. 1999 C, (LOC: Citizens Bank), 4.01%, due 10/4/07			730	^µ^ß
				14,340

Texas (9.7%)
4,660	Alliance Arpt. Au. Inc. Spec. Fac. Rev. (Floaters), Ser. 2007-2088, (LOC: Wells Fargo & Co.), 3.99%, due 10/4/07		A-1+	4,660	^µ
615	Bell Co. Hlth. Fac. Dev. Corp. Rev. (Hlth. Fac. Baptist Care, Inc.), Ser. 1998, (LOC: Broadway National Bank), 4.10%, due 10/4/07	VMIG1		615	^µ^ß^g
10,125	Bexar Co. Hsg. Fin. Corp. Multi-Family Hsg. Rev., Ser. 2007-749CE, (LOC: Citigroup Global Markets), 4.04%, due 10/4/07	VMIG1		10,125	^µ
15,450	Brazos River Harbor Navigation Dist. Brazoria Co. Rev. (BASF Corp. Proj.), Ser. 2001, 4.15%, due 10/3/07		A-1+	15,450	^µ^ß
1,300	Dallas Fort Worth Int'l Arpt. Rev. (Putters), Ser. 2004-385, (FGIC Insured), 3.96%, due 10/4/07	VMIG1	A-1+	1,300	^µ^o
1,340	Harris Co. Ind. Dev. Corp. IDR (Precision Gen., Inc. Proj.), Ser. 1991, (LOC: Morgan Guaranty Trust), 3.98%, due 10/4/07		A-1+	1,340	^µ^ß
300	Lufkin Hlth. Fac. Dev. Corp. Hlth. Sys. Ref. Rev. (Mem. Hlth. Sys. East Texas), Ser. 2005, (LOC: Wachovia Bank & Trust Co.), 4.09%, due 10/1/07 Pre Refunded 2/15/08		A-1+	300	^µ^ß
4,200	McAllen Ind. Dev. Au. Rev. (Ridge Sharyland), Ser. 2000, 5.87%, due 10/4/07			4,271	^µ
300	Muni. Sec. Trust Cert. G.O., Ser. 2007-3082A, (MBIA Insured), 4.05%, due 10/1/07	VMIG1		300	^ñ^µ^e
1,200	Port of Port Arthur Navigation Dist. Rev. (Fina Oil & Chemical Co. Proj.), Ser. 1998, 4.08%, due 10/1/07	VMIG1		1,200	^µ^ß
8,200	Tarrant Co. Hsg. Fin. Corp. Rev. (Floaters), Ser. 2007-2050, (LOC: Government National Mortgage Association), 3.96%, due 10/4/07		A-1+	8,200	^µ^s
7,975	Victory Street Pub. Fac. Corp. Multi-Family Rev., Ser. 2007-832CE, (LOC: Citigroup Global Markets), 4.04%, due 10/4/07	VMIG1		7,975	^µ
				55,736

Vermont (1.1%)
300	Vermont Ed. & Hlth. Bldg. Fin. Agcy. Rev. (Mount Ascutney Hosp. Proj.), Ser. 2004 A, (LOC: TD Banknorth N.A.), 4.00%, due 10/1/07	VMIG1		300	^µ^ß
6,000	Vermont HFA Multi. Purp. Notes, Ser. 2007 D, (LOC: Calyon Bank), 3.85%, due 9/25/08			6,000
				6,300

See Notes to Schedule of Investments

113



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)

Virginia (4.7%)
$2,500	Amherst Co. Econ. Dev. Au. IDR (Englands Stove Works Proj.), Ser. 2007, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07			$2,500	^µ^ß
7,150	BB&T Muni. Trust Var. St. (Floaters), Ser. 2007-1006, (LOC: Branch Banking & Trust Co.), 4.02%, due 10/4/07	VMIG1		7,150	^µ
6,380	Portsmouth Redev. & Hsg. Au. Multi-Family Hsg. Rev., Ser. 2006-3667, (LOC: Merrill Lynch Capital Markets), 4.02%, due 10/4/07			6,380	^µ
2,210	Southampton Co. Ind. Dev. Au. Rev. (Feridies Proj.), Ser. 2006, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07			2,210	^µ^ß
3,000	Sussex Co. Ind. Dev. Au. IDR (McGill Env. Sys.), Ser. 2007, (LOC: Branch Banking & Trust Co.), 3.98%, due 10/4/07	VMIG1		3,000	^µ^ß
2,865	Tazewell Co. Ind. Dev. Au. Rev. (Jennmar Corp., Inc.), Ser. 2007, (LOC: PNC Bank), 3.97%, due 10/4/07			2,865	^µ^ß
1,865	Virginia St. Hsg. Dev. Au. Commonwealth Mtge. (Merlots), Ser. 2006-C07, (LOC: Bank of New York), 3.97%, due 10/3/07		A-1+	1,865	^µ
1,380	Wythe Co. Ind. Dev. Au. Rev. (Klockner-Pentaplast of America), Ser. 1989, (LOC: Landesbank Hessen-Thveringen Girozentrale), 4.02%, due 10/4/07			1,380	^µ^ß
				27,350

Washington (5.7%)
300	Everett Pub. Fac. Dist. Proj. Rev., Ser. 2007, (LOC: Dexia Credit Locale de France), 4.10%, due 10/1/07		A-1+	300	^µ
9,870	Washington St. Hsg. Fin. Commission, Ser. 2007-11203, (LOC: Government National Mortgage Association), 4.00%, due 10/4/07	VMIG1		9,870	^µ^h
7,395	Washington St. Hsg. Fin. Commission Multi-Family Hsg. Rev., Ser. 2007-10003CE, (LOC: Citigroup Global Markets), 4.04%, due 10/4/07	VMIG1		7,395	^µ
4,500	Washington St. Hsg. Fin. Commission Multi-Family Rev. (Silver Creek Retirement), Ser. 2004 A, (LOC: Wells Fargo & Co.), 4.09%, due 10/1/07	VMIG1		4,500	^µ^ß
10,300	Washington St. Hsg. Fin. Commission Multi-Family Rev. (Woodland Retirement Proj.), Ser. 2003 A, (LOC: Wells Fargo & Co.), 4.09%, due 10/1/07		A-1+	10,300	^µ^ß
300	Washington St. Hsg. Fin. Commission Non-Profit Rev. (Tacoma Art Museum Proj.), Ser. 2002, (LOC: Northern Trust Co.), 4.10%, due 10/1/07	VMIG1		300	^µ^ß
				32,665

Wisconsin (6.5%)
425	Elkhorn IDR (Lanco Precision Plus Proj.), Ser. 1999, (LOC: Bank One), 4.23%, due 10/3/07			425	^µ^ß
6,500	Muni. Sec. Trust Cert. G.O., Ser. 2007-7063, Class A, (LOC: Bear Stearns), 3.96%, due 10/4/07	VMIG1		6,500	^ñ^µ

See Notes to Schedule of Investments

114



PRINCIPAL AMOUNT SECURITY^@@		RATING^‡^‡		VALUE^†^†
(000's omitted)		Moody's	S&P	(000's omitted)
$19,945	Puttable Floating Option Tax Exempt Receipts (Floaters), Ser. 2007-4391, (LOC: Dexia Credit Locale de France), 4.00%, due 10/4/07	VMIG1		$19,945	^µ
300	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Beloit College Proj.), Ser. 2007, (XLCA Insured), 4.05%, due 10/1/07		A-1+	300	^µ^ß^d
2,600	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Fort Healthcare Inc.), Ser. 2007 A, (LOC: JP Morgan Chase), 4.08%, due 10/1/07		A-1+	2,600	^µ^ß
7,500	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Gundersen Lutheran), Ser. 2000 A, (FSA Insured), 4.05%, due 10/1/07		A-1+	7,500	^µ^ß^l
200	Wisconsin St. Hlth. & Ed. Fac. Au. Rev. (Meriter Hosp., Inc. Proj.), Ser. 2002, (LOC: Marshall & Ilsley), 4.10%, due 10/1/07		A-1	200	^µ^ß
				37,470

	Total Investments (98.4%)			567,279
	Cash, receivables and other assets, less liabilities (1.6%)			8,945
	Total Net Assets (100.0%)			$576,224

See Notes to Schedule of Investments

115

Notes to Schedule of Investments Institutional Liquidity

Trust (Unaudited)

^†^†	Investment securities are valued at amortized cost, which approximates U.S. federal income tax cost.

Municipal securities held by Municipal Master Series and Tax-Exempt Master Series are within the two highest rating categories assigned by a nationally recognized statistical rating organization ("NRSRO") such as Moody's Investors Service, Inc. or Standard & Poor's or, where not rated, are determined by the master series' investment manager to be of comparable quality. Approximately 90.9% and 89.1% of the municipal securities held by Municipal Master Series and Tax-Exempt Master Series, respectively, have credit enhancement features backing them, which the funds may rely on, such as letters of credit, insurance, or guarantees. Without these credit enhancement features the securities may or may not meet the quality standards of the fund. Pre-refunded bonds are supported by securities in escrow issued or guaranteed by the U.S. Government, its agencies, or instrumentalities. The amount escrowed is sufficient to pay the periodic interest due and the principal of these bonds. Putable bonds give the funds the right to sell back the issue on the date specified.

^‡^‡	Where no rating appears from any NRSRO, the security is deemed unrated for purposes of Rule 2a-7 under the Investment Company Act of 1940, as amended. Each of these securities is an eligible security based on a comparable quality analysis performed by the Master Series' investment manager.

Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A and have been deemed by the investment manager to be liquid. At September 30, 2007, these securities amounted to approximately $749,378,000 or 28.7% of net assets for Money Market Master Series, approximately $2,274,087,000 or 16.2% of net assets for Prime Master Series, approximately $200,070,000 or 9.3% of net assets for Tax-Exempt Master Series and approximately $22,480,000 or 3.9% of net assets for Municipal Master Series.

ß	Security is guaranteed by the corporate or non-profit obligor.

µ	Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of September 30, 2007.

Ø	All or a portion of this security was purchased on a when-issued basis. At September 30, 2007, these securities amounted to $20,020,000 for Government Reserves Master Series and $18,484,000 for Tax-Exempt Master Series, respectively.

ØØ	All or a portion of this security is segregated as collateral for when-issued purchase commitments.

a	Security is subject to a guarantee provided by ABN AMRO Bank NV, backing 100% of the total principal.

b	Security is subject to a guarantee provided by Banco Santander, backing 100% of the total principal.

c	Security is subject to a guarantee provided by Bank of America, backing 100% of the total principal.

d	Security is subject to a guarantee provided by Bank of New York, backing 100% of the total principal.

e	Security is subject to a guarantee provided by Bear Stearns, backing 100% of the total principal.

f	Security is subject to a guarantee provided by Calyon Bank, backing 100% of the total principal.

g	Security is subject to a guarantee provided by Chase Bank, backing 100% of the total principal.

h	Security is subject to a guarantee provided by Citibank, N.A., backing 100% of the total principal.

i	Security is subject to a guarantee provided by Citigroup Global Markets, backing 100% of the total principal.

j	Security is subject to a guarantee provided by Depfa Bank PLC, backing 100% of the total principal.

116

Notes to Schedule of Investments Institutional Liquidity Trust (Unaudited) (cont'd)

k	Security is subject to a guarantee provided by Deutsche Bank, backing 100% of the total principal.

l	Security is subject to a guarantee provided by Dexia Credit Locale de France, backing 100% of the total principal.

m	Security is subject to a guarantee provided by Goldman Sachs, backing 100% of the total principal.

n	Security is subject to a guarantee provided by Harris Trust & Savings Bank, backing 100% of the total principal.

o	Security is subject to a guarantee provided by JP Morgan Chase, backing 100% of the total principal.

p	Security is subject to a guarantee provided by Landesbank Hessen-Thveringen Girozentrale, backing 100% of the total principal.

q	Security is subject to a guarantee provided by Lloyd's Bank, backing 100% of the total principal.

r	Security is subject to a guarantee provided by Merrill Lynch Capital Markets, backing 100% of the total principal.

s	Security is subject to a guarantee provided by Morgan Stanley, backing 100% of the total principal.

t	Security is subject to a guarantee provided by Societe Generale, backing 100% of the total principal.

u	Security is subject to a guarantee provided by U.S. Bank, backing 100% of the total principal.

v	Security is subject to a guarantee provided by Wachovia Bank & Trust Co., backing 100% of the total principal.

117

Statements of Assets and Liabilities (Unaudited)

Institutional Liquidity Trust

(000's omitted)


	MONEY MARKET MASTER SERIES	PRIME MASTER SERIES
	September 30, 2007	September 30, 2007
Assets
Investments in securities, at value* (Note A)-see Schedule of Investments:
Unaffiliated issuers	$2,316,543	$11,584,242
Repurchase agreements	286,000	2,465,100

	2,602,543	14,049,342
Cash	564	565
Interest receivable	10,818	29,282
Receivable for securities sold	-	-
Prepaid expenses and other assets	116	133

Total Assets	2,614,041	14,079,322


Liabilities
Payable for securities purchased	-	-
Payable to investment manager-net (Note B)	179	898
Accrued expenses and other payables	113	8

Total Liabilities	292	906

Net Assets Applicable to investors' beneficial interests	$2,613,749	$14,078,416


Net Assets consist of:
Paid-in capital	$2,613,749	$14,078,416

*Cost of investments:
Unaffiliated issuers	$2,602,543	$14,049,342

See Notes to Financial Statements

118


GOVERNMENT MASTER SERIES	GOVERNMENT RESERVES MASTER SERIES	TREASURY MASTER SERIES	TAX-EXEMPT MASTER SERIES	MUNICIPAL MASTER SERIES
September 30, 2007	September 30, 2007	September 30, 2007	September 30, 2007	September 30, 2007


$499,545	$318,546	$34,875	$2,111,103	$567,279
520,500	-	721,000	-	-

1,020,045	318,546	755,875	2,111,103	567,279
405	44	78	45,044	5,508
2,767	762	852	15,738	3,291
-	-	-	931	194
25	-	25	109	-

1,023,242	319,352	756,830	2,172,925	576,272



-	20,162	-	18,487	-
62	21	49	96	26
30	33	26	4	22

92	20,216	75	18,587	48

$1,023,150	$299,136	$756,755	$2,154,338	$576,224



$1,023,150	$299,136	$756,755	$2,154,338	$576,224


$1,020,045	$318,546	$755,875	$2,111,103	$567,279

119

Statements of Operations (Unaudited)

Institutional Liquidity Trust

(000's omitted)


	MONEY MARKET MASTER SERIES		PRIME MASTER SERIES
	For the Six Months Ended September 30, 2007		For the Six Months Ended September 30, 2007
Investment Income

Income:
Interest income-unaffiliated issuers (Note A)	$65,922		$298,501


Expenses:
Investment management fees (Note B)	980		4,441
Audit fees	15		11
Custodian fees (Note B)	256		638
Insurance expense	36		104
Legal fees	1		1
Rating agency fees	-		10
Shareholder reports	3		3
Trustees' fees and expenses	13		14
Miscellaneous	36		101

Total expenses	1,340		5,323
Investment management fees waived (Note B)	-		-

Expenses reduced by custodian fee expense offset arrangement (Note B)	(67	)	(129	)

Total net expenses	1,273		5,194

Net investment income	$64,649		$293,307


Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers	(69	)	(120	)

Net increase (decrease) in net assets resulting from operations	$64,580		$293,187

See Notes to Financial Statements

120


GOVERNMENT MASTER SERIES		GOVERNMENT RESERVES MASTER SERIES	TREASURY MASTER SERIES		TAX-EXEMPT MASTER SERIES		MUNICIPAL MASTER SERIES
For the Six Months Ended September 30, 2007		Period from July 9, 2007 (Commencement of Operations) to September 30, 2007	For the Six Months Ended September 30, 2007		Period from September 10, 2007 (Commencement of Operations) to September 30, 2007		Period from September 10, 2007 (Commencement of Operations) to September 30, 2007



$18,961		$2,784	$12,071		$4,585		$1,271



290		44	196		251		80
16		10	5		5		13
67		22	63		101		27
8		-	2		-		-
5		2	6		1		1
4		1	4		-		-
3		2	3		-		-
13		6	13		1		1
6		-	4		2		1

412		87	296		361		123
-		-	-		(156	)	(54	)

(20	)	-	(21	)	(96	)	(22	)

392		87	275		109		47

$18,569		$2,697	$11,796		$4,476		$1,224




(6	)	-	50		2		2

$18,563		$2,697	$11,846		$4,478		$1,226

121

Statements of Changes in Net Assets

Institutional Liquidity Trust

(000's omitted)


	MONEY MARKET MASTER SERIES
	Six Months Ended September 30, 2007 (Unaudited)		Year Ended March 31, 2007
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss)	$64,649		$129,526
Net realized gain (loss) on investments	(69	)	(78	)
Net increase (decrease) in net assets resulting from operations	64,580		129,448

Transactions in Investors' Beneficial Interest:
Contribution from initial capitalization	-		-
Contributions	4,493,841		5,640,176
Withdrawals	(4,437,908	)	(5,506,910	)
Net increase (decrease) from transactions in investors' beneficial interest	55,933		133,266
Net Increase (Decrease) in Net Assets	120,513		262,714

Net Assets:
Beginning of period	2,493,236		2,230,522
End of period	$2,613,749		$2,493,236

See Notes to Financial Statements

122


PRIME MASTER SERIES				GOVERNMENT MASTER SERIES
Six Months Ended September 30, 2007 (Unaudited)		Year Ended March 31, 2007		Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006 (Commencement of Operations) to March 31, 2007


$293,307		$291,330		$18,569		$7,760
(120	)	(95	)	(6	)	-
293,187		291,235		18,563		7,760


-		-		-		100
40,170,218		35,971,111		1,677,075		1,008,074
(32,867,793	)	(32,985,741	)	(1,442,247	)	(246,175	)
7,302,425		2,985,370		234,828		761,999
7,595,612		3,276,605		253,391		769,759


6,482,804		3,206,199		769,759		-
$14,078,416		$6,482,804		$1,023,150		$769,759

123

Statements of Changes in Net Assets

Institutional Liquidity Trust

(000's omitted)


	GOVERNMENT RESERVES MASTER SERIES
	Period from July 9, 2007 (Commencement of Operations) to September 30, 2007
	(Unaudited)
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss)	$2,697
Net realized gain (loss) on investments	-
Net increase (decrease) in net assets resulting from operations	2,697

Transactions in Investors' Beneficial Interest:
Contribution from initial capitalization	-
Contributions	434,591
Withdrawals	(138,152	)
Net increase (decrease) from transactions in investors' beneficial interest	296,439
Net Increase (Decrease) in Net Assets	299,136

Net Assets:
Beginning of period	-
End of period	$299,136

See Notes to Financial Statements

124


TREASURY MASTER SERIES				TAX-EXEMPT MASTER SERIES		MUNICIPAL MASTER SERIES
Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006 (Commencement of Operations) to March 31, 2007		Period from September 10, 2007 (Commencement of Operations) to September 30, 2007 (Unaudited)		Period from September 10, 2007 (Commencement of Operations) to September 30, 2007 (Unaudited)


$11,796		$6,723		$4,476		$1,224
50		-		2		2
11,846		6,723		4,478		1,226


-		-		-		-
997,527		814,761		2,882,228		766,441
(708,859	)	(365,243	)	(732,368	)	(191,443	)
288,668		449,518		2,149,860		574,998
300,514		456,241		2,154,338		576,224


456,241		-		-		-
$756,755		$456,241		$2,154,338		$576,224

125

Notes to Financial Statements Institutional Liquidity Trust (Unaudited)

Note A-Summary of Significant Accounting Policies:

General: The Money Market Master Series, Prime Master Series, Government Master Series, Government Reserves Master Series, Treasury Master Series, Tax-Exempt Master Series and Municipal Master Series (individually a "Master Series," collectively, the "Master Series") are separate operating series of Institutional Liquidity Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated October 1, 2004. The Trust is registered as a diversified, open-end management investment company under the Investment Company Act of 1940, as amended. Government Master Series had no operations until December 18, 2006 other than matters relating to its organization and the contribution of beneficial interest from the Institutional Class of Government Portfolio of $100,000 on December 4, 2006. Each of Government Reserves Master Series, Treasury Master Series, Tax-Exempt Master Series and Municipal Master Series had no operations until July 9, 2007, December 18, 2006, September 10, 2007 and September 10, 2007, respectively other than matters relating to its organization.

Other investment companies sponsored by Neuberger Berman Management Inc. ("Management") and Lehman Brothers Asset Management LLC ("LBAM"), the sub-adviser to the Master Series, whose financial statements are not presented herein, also invest in the Master Series.

The assets of each Master Series belong only to that Master Series, and the liabilities of each Master Series are borne solely by that Master Series and no other series of the Trust.

2	Portfolio valuation: Investment securities are valued as indicated in the notes following the Master Series' Schedule of Investments.

Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Interest income, including accretion of discount (adjusted for original issue discount, where applicable), and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost and stated separately in the Statements of Operations.

Income tax information: It is the policy of the Money Market Master Series, Prime Master Series, Government Master Series, and Treasury Master Series, and it is the intention of Government Reserves Master Series, Tax-Exempt Master Series and Municipal Master Series, to comply with the requirements of the Internal Revenue Code. It is also the policy of the Money Market Master Series, Prime Master Series, Government Master Series, and Treasury Master Series, and the intention of Government Reserves Master Series, Tax-Exempt Master Series and Municipal Master Series to conduct their operations so that each of its investors that are regulated investment companies and invest substantially all of their net investable assets therein will continue to qualify as such for Money Market Master Series, Prime Master Series, Government Master Series, and Treasury Master Series and so that its investors will be able to qualify as a regulated investment company for Government Reserves Master Series, Tax-Exempt Master Series and Municipal Master Series. Each Master Series will be treated as a partnership for U.S. federal income tax purposes and is therefore not subject to U.S. federal income tax.

126

Concentration of risk: Money Market Master Series and Prime Master Series normally concentrate in the financial services industries; therefore, factors influencing the health of those industries could have a significant negative effect on these Master Series' performance. These may include economic trends, governmental action, changes in interest rates, as well as the availability and cost of capital funds.

Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Master Series are charged to that Master Series. Expenses of the Trust that are not directly attributed to a series of the Trust are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributed to a Master Series or the Trust, are allocated among the Master Series and the other investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly.

Repurchase agreements: Each Master Series may enter into repurchase agreements with institutions that Management has determined are creditworthy. Each repurchase agreement is recorded at cost. Each Master Series requires that the securities purchased in a repurchase agreement be transferred to the custodian in a manner sufficient to enable the Master Series to assert a perfected security interest in those securities in the event of a default under the repurchase agreement. Each Master Series monitors, on a daily basis, the value of the securities transferred to ensure that their value, including accrued interest, is greater than amounts owed to the Master Series under each such repurchase agreement.

Note B-Management Fees and Other Transactions with Affiliates:

Each Master Series retains Management as its investment manager under a Management Agreement. For such investment management services, each Master Series (except Tax-Exempt and Municipal) pays Management a fee at the annual rate of 0.08% of its average daily net assets. Tax-Exempt and Municipal pay Management a fee at the annual rate of 0.25% of the first $500 million of average daily net assets, 0.225% of the next $500 million, 0.20% of the next $500 million, 0.175% of the next $500 million, and 0.15% of average daily net assets in excess of $2 billion. Management contractually agreed to waive its management fee so that the management fee was 0.08% of its average daily net assets for Tax-Exempt and Municipal. For the period ended September 30, 2007, such waived fees amounted to $155,568 for Tax-Exempt and $54,293 for Municipal, respectively.

Management and LBAM, the sub-adviser to the Master Series, are wholly-owned subsidiaries of Lehman Brothers Holdings Inc., a publicly-owned holding company. LBAM is retained by Management to provide day-to-day investment management services. LBAM, as sub-adviser to each Master Series, receives a monthly fee paid by Management, based on an annual rate of each Master Series' average daily net assets. The Master Series do not pay a fee directly to LBAM for such services. As investment adviser, Management is responsible for overseeing the investment activities of LBAM. Several individuals who are officers and/or trustees of the Trust are also employees of LBAM and/or Management.

Each Master Series has an expense offset arrangement in connection with its custodian contract. For the six months ended September 30, 2007, the impact of this arrangement was a reduction of expenses of $67,219, $129,174, $20,040, $491, $21,185, $95,949 and $21,991 for Money Market Master Series, Prime Master Series,

127

Government Master Series, Government Reserves Master Series, Treasury Master Series, Tax-Exempt Master Series and Municipal Master Series, respectively.

Note C-Securities Transactions:

All securities transactions for Money Market Master Series, Prime Master Series, Government Master Series, Government Reserves Master Series, Treasury Master Series, Tax-Exempt Master Series and Municipal Master Series, were short-term.

Note D-Line of Credit:

On May 25, 2007 the Master Series became a participant in a single committed, unsecured $300,000,000 line of credit with State Street Bank and Trust Company ("State Street") and Bank of New York, as agent, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this agreement at the overnight Federal Funds Rate plus 0.375% per annum. A commitment fee of 0.075% per annum of the unused available line of credit is charged, of which the Master Series has agreed to pay its pro rata share, based on the ratio of its individual net assets to the net assets of all participants at the time the fee is due and payable. The fee is paid quarterly in arrears. Because several investment companies participate, there is no assurance that an individual Master Series will have access to all or any part of the $300,000,000 at any particular time.

On September 27, 2007 the Master Series became a participant in a single uncommitted, unsecured $150,000,000 line of credit with State Street, as lender, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this agreement at the overnight Federal Funds Rate plus 0.375% per annum. Because several investment companies participate, there is no assurance that an individual Master Series will have access to all or any part of the $150,000,000 at any particular time.

The Master Series had no loans outstanding pursuant to either line of credit at September 30, 2007. During the six months ended September 30, 2007, the Master Series did not utilize either line of credit.

Note E-Recent Accounting Pronouncement:

In September 2006, Financial Accounting Standards Board ("FASB") issued FASB Statement No. 157, "Fair Value Measurement" ("SFAS 157"), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Management believes the adoption of SFAS 157 will not have a material impact on the Master Series' financial position or results of operations.

Note F-Unaudited Financial Information:

The financial information included in this interim report is taken from the records of each Master Series without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.

128

Financial Highlights

Money Market Master Series


	Six Months Ended September 30, 2007 (Unaudited)		Year Ended March 31, 2007		Year Ended March 31, 2006		Period from December 30, 2004^{^} to March 31, 2005
Ratios to Average Net Assets:
Gross Expenses^#	.11	%*	.10	%	.11	%	.11	%*
Net Expenses	.10	%*	.10	%^‡	.11	%^‡	.11	%*^‡
Net Investment Income (Loss)	5.28	%*	5.14	%	3.72	%	2.38	%*
Total Return^†	+2.66	%**	+5.27	%^@	+3.87	%^@	+0.63	%**^@
Net Assets, End of Period (in millions)	$2,613.7		$2,493.2		$2,230.5		$2,418.4

See Notes to Financial Highlights

129

Financial Highlights

Prime Master Series


	Six Months Ended September 30, 2007 (Unaudited)		Year Ended March 31, 2007		Year Ended March 31, 2006		Period from December 27, 2004^{^} to March 31, 2005
Ratios to Average Net Assets:
Gross Expenses^#	.10	%*	.10	%	.11	%	.12	% *
Net Expenses	.09	%*	.10	%^‡	.10	%^‡	.11	%*^‡
Net Investment Income (Loss)	5.28	%*	5.19	%	3.78	%	2.43	%*
Total Return^†	+2.67	%**	+5.29	%^@	+3.87	%^@	+0.66	%**^@
Net Assets, End of Period (in millions)	$14,078.4		$6,482.8		$3,206.2		$1,277.5

See Notes to Financial Highlights

130

Financial Highlights

Government Master Series


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Ratios to Average Net Assets:
Gross Expenses^#	.11	%*	.13	%*
Net Expenses	.11	%*	.13	%*
Net Investment Income (Loss)	5.12	%*	5.17	%*
Total Return^†	+2.59	%**	+1.49	%**
Net Assets, End of Period (in millions)	$1,023.2		$769.8

See Notes to Financial Highlights

131

Financial Highlights

Government Reserves Master Series


	Period from July 9, 2007^{^} to September 30, 2007 (Unaudited)
Ratios to Average Net Assets:
Gross Expenses^#	.16	%*
Net Expenses	.16	%*
Net Investment Income (Loss)	4.95	%*
Total Return^†	+1.16	%**
Net Assets, End of Period (in millions)	$299.1

See Notes to Financial Highlights

132

Financial Highlights

Treasury Master Series


	Six Months Ended September 30, 2007 (Unaudited)		Period from December 18, 2006^{^} to March 31, 2007
Ratios to Average Net Assets:
Gross Expenses^#	.12	%*	.12	%*
Net Expenses	.11	%*	.12	%*
Net Investment Income (Loss)	4.81	%*	5.05	%*
Total Return^†	+2.47	%**	+1.46	%**
Net Assets, End of Period (in millions)	$756.8		$456.2

See Notes to Financial Highlights

133

Financial Highlights

Tax-Exempt Master Series


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Ratios to Average Net Assets:
Gross Expenses^#	.17	%*
Net Expenses^‡	.09	%*
Net Investment Income (Loss)	3.74	%*
Total Return^†^@	+0.21	%**
Net Assets, End of Period (in millions)	$2,154.3

See Notes to Financial Highlights

134

Financial Highlights

Municipal Master Series


	Period from September 10, 2007^{^} to September 30, 2007 (Unaudited)
Ratios to Average Net Assets:
Gross Expenses^#	.21	%*
Net Expenses^‡	.14	%*
Net Investment Income (Loss)	3.77	%*
Total Return^†^@	+0.22	%**
Net Assets, End of Period (in millions)	$576.2

See Notes to Financial Highlights

135

Notes to Financial Highlights Institutional Liquidity Trust (Unaudited)

#	The Master Series is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.

^‡	After waiver of a portion of the investment management fee by Management. Had Management not undertaken such action, the annualized ratios of net expenses to average daily net assets would have been:


	Six Months Ended September 30, 2007		Year Ended March 31, 2007		Year Ended March 31, 2006		Period Ended March 31, 2005
Money Market Master Series	-		.12	%	.13	%	.13	%⁽¹⁾
Prime Master Series	-		.11	%	.12	%	.13	%⁽²⁾
Tax-Exempt Master Series⁽³⁾	.22	%	-		-		-
Municipal Master Series⁽³⁾	.31	%	-		-		-

(1)

Period from December 30, 2004 (commencement of operations) to March 31, 2005.

(2)

Period from December 27, 2004 (commencement of operations) to March 31, 2005.

(3)

Period from September 10, 2007 (commencement of operations) to September 30, 2007.

^†

Total return for the Master Series has been calculated based on the total return for the feeder funds that invest all of their net investable assets in the Master Series. Total return assumes all distributions were reinvested and adjusted for the difference in expenses as set forth in the Notes to the Financial Statements of the feeder funds. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted.

^	The date investment operations commenced.

*	Annualized.

**	Not annualized.

@	Total return would have been lower had Management not waived a portion of the investment management fee.

136