-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Kv4U4YC3XNm6hmsPgftAMtt5oexhQsmecBVH+Tmq8Tzb4TkX672FBzOxMG90q7QY eya2ez8PKw+xig+CR4bGrw== 0000900092-03-000068.txt : 20030530 0000900092-03-000068.hdr.sgml : 20030530 20030530160358 ACCESSION NUMBER: 0000900092-03-000068 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030331 FILED AS OF DATE: 20030530 EFFECTIVENESS DATE: 20030530 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CMA TAX EXEMPT FUND/ CENTRAL INDEX KEY: 0000320281 IRS NUMBER: 136789904 STATE OF INCORPORATION: WI FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03111 FILM NUMBER: 03726038 BUSINESS ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08546 BUSINESS PHONE: 6092823319 MAIL ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08536 FORMER COMPANY: FORMER CONFORMED NAME: CMA TAX EXEMPT TRUST DATE OF NAME CHANGE: 19910505 FORMER COMPANY: FORMER CONFORMED NAME: CMA TAX EXEMPT FUND DATE OF NAME CHANGE: 19870802 N-CSR 1 ml7008.txt CMA TAX-EXEMPT 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 811-3111 Name of Fund: CMA Tax-Exempt Fund Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Terry K. Glenn, President, CMA Tax-Exempt Fund, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 03/31/03 Date of reporting period: 04/01/02 - 3/31/03 Item 1 - Attach shareholder report (BULL LOGO) Merrill Lynch Investment Managers Annual Report March 31, 2003 CMA Tax-Exempt Fund www.mlim.ml.com This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund's current prospectus. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other Government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Past performance results shown in this report should not be considered a representation of future performance, which will fluctuate. Statements and other information herein are as dated and are subject to change. CMA Tax-Exempt Fund Box 9011 Princeton, NJ 08543-9011 Printed on post-consumer recycled paper TO OUR SHAREHOLDERS: For the year ended March 31, 2003, CMA Tax-Exempt Fund paid shareholders a net annualized yield of .93%*. As of March 31, 2003, the Fund's 7-day yield was .73%. Economic Environment During the six-month period ended March 31, 2003, equity and fixed income markets and the domestic economy continued to be influenced strongly by developments outside of the financial sector. The uncertainty that surrounded the effectiveness of the weapons inspections by the United Nations and the eventual onset of war with Iraq in mid-March weighed heavily on consumer and corporate spending. Despite the increased volatility in the equity markets because of geopolitical uncertainty, the Dow Jones Industrial Average and the NASDAQ Composite Index were able to post positive gains for the period. However, by March 31, 2003, both indexes were well off the highs reached in late November 2002. Fixed income investors favored the very short end of the U.S. Treasury yield curve because of its relative safety. Six-month Treasury bills and two-year Treasury notes experienced solid gains that lowered yields on these instruments 43 basis points (.43%) and 31 basis points, respectively. Finally, the Federal Open Market Committee has met four times since September 30, 2002, lowering interest rates 50 basis points at its meeting on November 6, 2002 and bringing the Federal Funds borrowing rate to a historic low of 1.25%. This was done in response to a weakening economy, uncertainty over the war with Iraq and possible deflationary pressures. *Based on a constant investment throughout the period, with dividends compounded daily, and reflecting a net return to the investor after all expenses. Investment Strategy During the fiscal year ended March 31, 2003, the short-term municipal market experienced two distinctly different interest rate environments, both driven by excesses in supply and demand. Most of the first half of the fiscal year was driven by heavy new-issue supply and reduced demand in an environment that was perceived to be one of moderately stronger economic growth. The State of California and the Department of Water Resources for California both sold multi- billion dollar issues, while other states and cities also increased their borrowing because of lower tax revenues from the sluggish economy. Yields on one-year notes, which began the fiscal year in the 1.40%--1.45% range, rose to the 1.75%--1.90% range by the beginning of October 2002, with some smaller issues yielding more than 2%. This spike in interest rates was seen as opportunity to extend the Fund's average portfolio maturity by increasing the fixed rate note sector to 25% of assets and maintaining an above-neutral average maturity in the 50-day--60-day range. This strategy proved to be beneficial as the second half of the fiscal year was characterized by reduced supply and increased demand for short-term securities. Fixed rate notes outperformed yields on variable rate securities as short-term interest rates fell as a result of the Federal Reserve Board's easing of monetary policy and the flight to quality. At the close of the period, yields on variable rate issues were in the 1.10% range, while fixed rate notes yielded approximately the same levels. Thus, our position of fixed rate notes purchased at higher yields earlier in the period provided a good core for the Fund as interest rates fell. By March 31, 2003, the average portfolio maturity was allowed to drift into a more neutral range of 40 days--45 days as the flat short-term yield curve provided little incentive to extend the maturity or purchase longer- dated fixed rate notes. Going forward, we are entering a difficult time for the short-term market as we need to assess the impact of the war in Iraq and the economic response that will ultimately affect interest rates. Additionally, with states and municipalities having increased budget deficits, short-term borrowing in our market will increase dramatically, especially the State of California. We must carefully review both the credit and market implications as we devise our portfolio strategy in the coming months. In Conclusion On February 13, 2003, CMA Tax-Exempt Fund converted from a stand- alone investment company to a "feeder" fund that seeks to achieve its investment objective by investing all of its assets in Master Tax-Exempt Trust, which has the same investment objective as the Fund. All investments will be made at the Trust level. This structure is sometimes called a "master/feeder" structure. We thank you for your continued support of CMA Tax-Exempt Fund, and we look forward to serving your investment needs in the months and years ahead. Sincerely, (Terry K. Glenn) Terry K. Glenn President and Trustee (Kenneth A. Jacob) Kenneth A. Jacob Senior Vice President (John M. Loffredo) John M. Loffredo Senior Vice President (Peter J. Hayes) Peter J. Hayes Vice President and Portfolio Manager April 23, 2003 CMA TAX-EXEMPT FUND STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 2003 Assets: Investments in Master Tax-Exempt Trust, at value (identified cost--$10,591,079,299) $10,591,079,299 Prepaid registration fees and other assets 499,678 --------------- Total assets 10,591,578,977 --------------- Liabilities: Payables: Distributor $ 1,804,374 Administrator 1,729,459 3,533,833 --------------- Accrued expenses 251,349 --------------- Total liabilities 3,785,182 --------------- Net Assets $10,587,793,795 =============== Net Assets Consist of: Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 1,058,897,231 Paid-in capital in excess of par 9,529,110,311 Accumulated realized capital losses on investments from the Trust--net (213,747) --------------- Net Assets--Equivalent to $1.00 per share based on 10,588,972,314 shares of beneficial interest outstanding $10,587,793,795 =============== See Notes to Financial Statements.
CMA TAX-EXEMPT FUND STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2003++ Investment Income: Interest and amortization of premium and discount earned $ 137,549,109 Net investment income allocated from the Trust: Interest 16,809,432 Expenses (2,870,774) --------------- Total income and net investment income from the Trust 151,487,767 --------------- Expenses: Investment advisory fees $ 34,799,724 Distribution fees 13,030,962 Administration fees 2,620,623 Transfer agent fees 1,153,787 Accounting services 1,065,487 Registration fees 951,460 Custodian fees 202,340 Professional fees 155,540 Printing and shareholder reports 122,728 Trustees' fees and expenses 55,736 Pricing fees 49,346 Other 100,628 --------------- Total expenses 54,308,361 --------------- Investment income--net 97,179,406 --------------- Realized Gain (Loss) on Investments and from the Trust--Net: Realized gain (loss): Investments--net (344,196) The Trust--net 291,802 --------------- Total realized loss on investments and from the Trust--net (52,394) --------------- Net Increase in Net Assets Resulting from Operations $ 97,127,012 =============== ++On February 13, 2003, the Fund converted from a stand-alone investment company to a "feeder" fund that seeks to achieve its investment objective by investing all of its assets in the Trust, which has the same investment objective as the Fund. All investments will be made at the Trust level. This structure is sometimes called a "master/feeder" structure. See Notes to Financial Statements.
CMA TAX-EXEMPT FUND STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended March 31, 2003++ 2002 Increase (Decrease) in Net Assets: Operations: Investment income--net $ 97,179,406 $ 183,685,929 Realized gain (loss) on investments and from the Trust--net (52,394) 576,159 --------------- --------------- Net increase in net assets resulting from operations 97,127,012 184,262,088 --------------- --------------- Dividends to Shareholders: Dividends to shareholders from investment income--net (97,179,406) (183,685,929) --------------- --------------- Beneficial Interest Transactions: Net proceeds from sale of shares 32,237,106,470 32,372,343,021 Value of shares issued to shareholders in reinvestment of dividends 97,182,443 183,691,543 --------------- --------------- 32,334,288,913 32,556,034,564 Cost of shares redeemed (32,292,069,189) (32,390,022,350) --------------- --------------- Net increase in net assets derived from beneficial interest transactions 42,219,724 166,012,214 --------------- --------------- Net Assets: Total increase in net assets 42,167,330 166,588,373 Beginning of year 10,545,626,465 10,379,038,092 --------------- --------------- End of year $10,587,793,795 $10,545,626,465 =============== =============== ++On February 13, 2003, the Fund converted from a stand-alone investment company to a "feeder" fund that seeks to achieve its investment objective by investing all of its assets in the Trust, which has the same investment objective as the Fund. All investments will be made at the Trust level. This structure is sometimes called a "master/feeder" structure. See Notes to Financial Statements.
CMA TAX-EXEMPT FUND FINANCIAL HIGHLIGHTS
The following per share data and ratios have been derived from information provided in the financial statements. For the Year Ended March 31, Increase (Decrease) in Net Asset Value: 2003++++ 2002 2001 2000 1999 Per Share Operating Performance: Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ----------- ----------- ----------- ----------- ----------- Investment income--net .01 .02 .03 .03 .03 Realized and unrealized gain (loss) on investments and from the Trust--net --++ --++ --++ --++ --++ ----------- ----------- ----------- ----------- ----------- Total from investment operations .01 .02 .03 .03 .03 ----------- ----------- ----------- ----------- ----------- Less dividends from investment income--net (.01) (.02) (.03) (.03) (.03) ----------- ----------- ----------- ----------- ----------- Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========== =========== =========== =========== =========== Total Investment Return .93% 1.76% 3.51% 2.91% 2.87% =========== =========== =========== =========== =========== Ratios to Average Net Assets: Expenses .55%+++ .55% .54% .54% .55% =========== =========== =========== =========== =========== Investment income--net .93% 1.78% 3.46% 2.87% 2.83% =========== =========== =========== =========== =========== Supplemental Data: Net assets, end of year (in thousands) $10,587,794 $10,545,626 $10,379,038 $10,188,792 $ 9,730,131 =========== =========== =========== =========== =========== ++Amount is less than $.01 per share. ++++On February 13, 2003, the Fund converted from a stand-alone investment company to a "feeder" fund that seeks to achieve its investment objective by investing all of its assets in the Trust, which has the same investment objective as the Fund. All investments will be made at the Trust level. This structure is sometimes called a "master/feeder" structure. +++Includes the Fund's share of the Trust's allocated expenses. See Notes to Financial Statements.
CMA TAX-EXEMPT FUND NOTES TO FINANCIAL STATEMENTS 1. Significant Accounting Policies: CMA Tax-Exempt Fund (the "Fund") is registered under the Investment Company Act of 1940 as a no load, diversified, open-end management investment company. On February 13, 2003, the Fund converted from a stand-alone investment company to a "feeder" fund that seeks to achieve its investment objective by investing all of its assets in Master Tax-Exempt Trust (the "Trust"), which has the same investment objective as the Fund. All investments will be made at the Trust level. This structure is sometimes called a "master/feeder" structure. The value of the Fund's investment in the Trust reflects the Fund's proportionate interest in the net assets of the Trust. The performance of the Fund is directly affected by the performance of the Trust. The financial statements of the Trust, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund's financial statements. The Fund's financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. The percentage of the Trust owned by the Fund at March 31, 2003 was approximately 100%. The following is a summary of significant accounting policies followed by the Fund. (a) Valuation of investments--The Fund records its investments in the Trust at fair value. Valuation of securities held by the Trust is discussed in Note 1a of the Trust's Notes to Financial Statements, which are included elsewhere in this report. (b) Investment income and expenses--The Fund records daily its proportionate share of the Trust's income, expenses and realized and unrealized gains and losses. In addition, the Fund accrues its own expenses. When the Fund was a stand-alone investment company, realized gains and losses on security transactions were determined on the identified cost basis. Interest income (including amortization of premium and discount) was recognized on the accrual basis. (c) Income taxes--It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no Federal income tax provision is required. (d) Prepaid registration fees--Prepaid registration fees are charged to expense as the related shares are issued. (e) Dividends and distributions to shareholders--The Fund declares dividends daily and reinvests daily such dividends (net of non- resident alien tax and backup withholding tax withheld) in additional fund shares at net asset value. Dividends and distributions are declared from the total of net investment income and net realized gain or loss on investments. (f) Investment transactions--Investment transactions are accounted for on a trade date basis. 2. Investment Advisory Agreement and Transactions with Affiliates: For the period April 1, 2002 to February 12, 2003, the Fund had entered into an Investment Advisory Agreement with Fund Asset Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc. ("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited partner. FAM was responsible for the management of the Fund's portfolio and provided the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. For such services, the Fund paid a monthly fee based upon the average daily value of the Fund's net assets, at the following annual rates: .50% of the Fund's average daily net assets not exceeding $500 million; ..425% of the average daily net assets in excess of $500 million but not exceeding $1 billion; and .375% of the average daily net assets in excess of $1 billion. When the Fund converted from a stand-alone investment company to a "feeder" fund on February 13, 2003, the Investment Advisory Agreement between the Fund and FAM was terminated. CMA TAX-EXEMPT FUND NOTES TO FINANCIAL STATEMENTS (CONCLUDED) The Fund has entered into an Administration Agreement with FAM. The Fund pays a monthly fee at an annual rate of .25% of the Fund's average daily net assets for the performance of administrative services (other than investment advice and related portfolio activities) necessary for the operation of the Fund. The Fund has adopted a Distribution and Shareholder Servicing Plan in compliance with Rule 12b-1 under the Investment Company Act of 1940, pursuant to which Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML & Co., receives a distribution fee from the Fund. The fee is accrued daily and paid monthly at the annual rate of .125% of average daily net assets of the Fund for shareholders who maintain their accounts through MLPF&S. The distribution fee is to compensate MLPF&S financial advisors and other directly involved branch office personnel for selling shares of the Fund and for providing direct personal services to shareholders. The distribution fee is not compensation for the administrative and operational services rendered to the Fund by MLPF&S in processing share orders and administering shareholder accounts. For the year ended March 31, 2003, the Fund reimbursed FAM $181,047 for certain accounting services. Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is the Fund's transfer agent. Certain officers and/or trustees of the Fund are officers and/or directors of FAM, PSI, FDS, and/or ML & Co. 3. Transactions in Shares of Beneficial Interest: The number of shares sold, reinvested and redeemed during the years corresponds to the amounts included in the Statements of Changes in Net Assets for net proceeds from sale of shares, value of shares reinvested and cost of shares redeemed, respectively, since shares are recorded at $1.00 per share. 4. Distributions to Shareholders: The tax character of distributions paid during the fiscal years ended March 31, 2003 and March 31, 2002 was as follows: 3/31/2003 3/31/2002 Distributions paid from: Tax-exempt income $ 97,179,406 $183,685,929 ------------ ------------ Total distributions $ 97,179,406 $183,685,929 ============ ============ As of March 31, 2003, there were no significant differences between the book and tax components of net assets. 5. Capital Loss Carryforward: On March 31, 2003, the Fund had a net capital loss carryforward of $216,368, of which $72,081 expires in 2008 and $144,287 expires in 2011. This amount will be available to offset like amounts of any future taxable gains. CMA TAX-EXEMPT FUND INDEPENDENT AUDITORS' REPORT To the Shareholders and Board of Trustees of CMA Tax-Exempt Fund: We have audited the accompanying statement of assets and liabilities of CMA Tax-Exempt Fund as of March 31, 2003, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of CMA Tax-Exempt Fund as of March 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Princeton, New Jersey May 21, 2003 CMA TAX-EXEMPT FUND IMPORTANT TAX INFORMATION (UNAUDITED) All of the net investment income distributions paid daily by CMA Tax-Exempt Fund during its taxable year ended March 31, 2003 qualify as tax-exempt interest dividends for Federal income tax purposes. Please retain this information for your records. MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (IN THOUSANDS)
Face State Amount Issue Value Alabama--2.6% $ 50,755 Alabama Special Care Facilities Financing Authority, Mobile Revenue Refunding Bonds (Ascension Health Credit), VRDN, Series B, 1.15% due 11/15/2039 (d) $ 50,755 40,000 Birmingham, Alabama, Special Care Facilities, Financing Authority, Revenue Refunding Bonds (Ascension Health Credit), VRDN, Series B, 1.15% due 11/15/2039 (d)+ 40,000 27,765 Daphne, Alabama, Special Care Facilities Financing Authority Revenue Bonds, FLOATS, Series 593, 1.30% due 8/15/2028 (b)(d) 27,765 12,950 Daphne, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds (Presbyterian), VRDN, Series B, 1.22% due 8/15/2023 (a)(d) 12,950 4,255 Eagle Tax-Exempt Trust, Birmingham, Alabama, Water Revenue Bonds, VRDN, Class A, Series 2002-6009, 1.23% due 1/01/2043 (d) 4,255 Eagle Tax-Exempt Trust, Jefferson County, Alabama, Sewer Revenue Refunding Bonds, VRDN, Series 2002 (d): 7,835 Class 6015, 1.23% due 2/01/2032 7,835 3,000 Class 6016, 1.23% due 2/01/2038 3,000 Jefferson County, Alabama, Sewer Revenue Refunding Bonds, VRDN (d): 68,300 Series C-5, 1.20% due 2/01/2040 68,300 20,000 Series C-6, 1.15% due 2/01/2040 (g) 20,000 Stevenson, Alabama, IDB, Environmental Improvement Revenue Bonds (Mead Corporation Project), VRDN, AMT (d): 25,000 1.25% due 1/01/2031 25,000 18,000 Series B, 1.25% due 4/01/2033 18,000 6,300 Stevenson, Alabama, IDB, Environmental Improvement Revenue Refunding Bonds (Mead Corporation Project), VRDN, AMT, Series C, 1.25% due 11/01/2033 (d) 6,300 Alaska--0.4% 16,000 Valdez, Alaska, Marine Terminal Revenue Bonds (Arco Transportation Project), Series B, 2% due 1/01/2004 16,059 Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (Phillips Petroleum Company Project): 14,500 Series A, 2% due 1/01/2004 14,554 15,000 Series C, 2% due 1/01/2004 15,056 Arizona--1.0% 45,200 Apache County, Arizona, IDA, IDR (Tucson Electric Power Co.), VRDN, Series 83-A, 1.15% due 12/15/2018 (d) 45,200 10,200 Arizona Educational Loan Marketing Corporation, Educational Loan Revenue Bonds, VRDN, AMT, Series A, 1.25% due 3/01/2015 (d)(f) 10,200 Marciopa County, Arizona, IDA, S/F Mortgage Revenue Bonds: 28,556 FLOATS, AMT, Series 707, 1.28% due 12/01/2036(d) 28,556 3,000 Series R-1A, 1.389% due 12/01/2003 3,000 13,620 Series R-2A, 1.389% due 12/01/2003 13,620
Portfolio Abbreviations for Master Tax-Exempt Trust AMT Alternative Minimum Tax (subject to) BAN Bond Anticipation Notes COP Certificates of Participation CP Commercial Paper EDA Economic Development Authority EDR Economic Development Revenue Bonds FLOATS Floating Rate Securities GO General Obligation Bonds HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority IDB Industrial Development Board IDR Industrial Development Revenue Bonds M/F Multi-Family MERLOTS Municipal Extendible Receipt Liquidity Option Tender Securities MSTR Municipal Securities Trust Receipts PCR Pollution Control Revenue Bonds PUTTERS Puttable Tax-Exempt Receipts RAN Revenue Anticipation Notes ROCS Reset Option Certificates S/F Single-Family TAN Tax Anticipation Notes TRAN Tax Revenue Anticipation Notes VRDN Variable Rate Demand Notes MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Arkansas--1.2% $ 7,000 Arkansas State Development Finance Authority, Environmental Facilities Revenue Bonds (Teris LLC Project), VRDN, AMT, 1.27% due 3/01/2021 (d) $ 7,000 7,800 Arkansas State Development Finance Authority, M/F Housing Revenue Bonds (Chapelridge Benton Project), VRDN, AMT, Series C, 1.30% due 6/01/2032 (d) 7,800 42,335 Arkansas State Development Finance Authority, S/F Mortgage Revenue Bonds, FLOATS, AMT, Series 708, 1.28% due 9/01/2004 (d) 42,335 43,100 North Little Rock, Arkansas, Health Facilities Board, Health Care Revenue Bonds (Baptist Health), VRDN, Series B, 1.15% due 12/01/2021 (d)(f) 43,100 22,000 Pulaski County, Arkansas, Lease Purpose Revenue Bonds, VRDN, Series A, 1.25% due 3/01/2007 (d)(h) 22,000 7,530 Pulaski County, Arkansas, Public Facilities Board, M/F Housing Revenue Refunding Bonds (Waterford Apartments), VRDN, AMT, 1.30% due 7/01/2032 (d) 7,530 California--9.2% 6,250 California Health Facilities Financing Authority Revenue Bonds, FLOATS, Series 591, 1.18% due 3/01/2014 (d)(f) 6,250 California Pollution Control Financing Authority, PCR, Refunding (Pacific Gas and Electric), VRDN (d): 6,625 Series C, 1.20% due 11/01/2026 6,625 70,000 Series E, 1.25% due 11/01/2026 70,000 80,000 California School Cash Reserve Program Authority Revenue Bonds, Series A, 3% due 7/03/2003 80,269 California State Department of Water Resources, Power Supply Revenue Bonds(d): 15,840 FLOATS, Series 765, 1.15% due 5/01/2015 (a) 15,840 25,000 VRDN, Series C-4, 1.25% due 5/01/2022 25,000 30,000 VRDN, Series C-9, 1.125% due 5/01/2022 30,000 California State, RAN: 133,000 2.50% due 6/27/2003 133,250 158,000 Index, 1.36% due 6/27/2003 158,000 176,000 Index, Series G, 1.30% due 6/20/2003 176,000 22,000 California Statewide Communities Development Authority, Revenue Refunding Bonds (Kaiser Permanente), VRDN, Series B, 1.70% due 8/01/2031 (d) 22,000 50,000 California Statewide Communities Development Authority, TRAN, Series A, 3% due 6/30/2003 50,160 Los Angeles, California, Unified School District, GO, TRAN: 25,000 Series B, 3% due 7/01/2003 25,082 100,000 Series C, 3.25% due 7/01/2003 100,387 45,000 San Diego County and School District Revenue Bonds, TRAN, Series B, 3% due 7/31/2003 45,188 25,680 West Basin, California, Municipal Water District Revenue Bonds, COP (Phase II--Recycled Water Project) VRDN, Series B, 1.40% due 8/01/2027(d) 25,680 Colorado--1.2% 7,900 Adams County, Colorado, School District Number 012, GO, ROCS, Series II-R-1045, 1.23% due 12/15/2022 (d)(e) 7,900 10,300 Colorado Department of Transportation, Revenue Refunding Bonds, PUTTERS, Series 318, 1.25% due 6/15/2015 (d)(f) 10,300 6,060 Colorado School Mines Development Corporation Revenue Bonds, VRDN, 1.20% due 9/01/2026 (d) 6,060 Denver, Colorado, City and County Airport Revenue Bonds, VRDN, AMT (d): 10,025 Series F, 1.35% due 11/15/2025 10,025 4,750 Series G, 1.35% due 11/15/2025 4,750 Denver, Colorado, City and County Airport, Revenue Refunding Bonds, AMT (d): 6,000 MERLOTS, Series A61, 1.31% due 11/15/2012 (c) 6,000 20,000 VRDN, Series C, 1.35% due 11/15/2025 20,000
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Colorado $ 6,500 Pitkin County, Colorado, IDR, Refunding (Aspen Skiing Company Project), (concluded) VRDN, AMT, Series B, 1.25% due 4/01/2014 (d) $ 6,500 53,200 Platte River Power Authority, Colorado, Electric Revenue Refunding Bonds, VRDN, Sub-Lien, Series S-1, 1.15% due 6/01/2018 (d) 53,200 Connecticut-- 24,750 Eagle Tax-Exempt Trust, Connecticut, VRDN, Series 96, Class 0701, 1.15% 0.2% due 11/15/2004 (d) 24,750 Delaware--0.7% Delaware State, EDA, Revenue Bonds (Hospital Billing and Collection), VRDN (a)(d): 25,710 Series B, 1.15% due 12/01/2015 25,710 45,000 Series C, 1.15% due 12/01/2015 45,000 District of District of Columbia, GO, Refunding, VRDN (d): Columbia--1.6% 17,350 MSTR, Series SGA-62, 1.20% due 6/01/2017 (a) 17,350 64,155 Series C, 1.15% due 6/01/2026 (c) 64,155 50,000 District of Columbia, GO, TRAN, 2.50% due 9/30/2003 50,177 18,795 District of Columbia Hospital Revenue Bonds, FLOATS, Series 712, 1.28% due 7/15/2019 (d) 18,795 20,750 District of Columbia, Multi-Modal Revenue Bonds (Medlantic), VRDN, Series B, 1.15% due 8/15/2038 (d)(e) 20,750 Florida--2.6% 45,981 Bay County, Florida, HFA, S/F Mortgage Revenue Bonds, FLOATS, AMT, Series 695, 1.35% due 6/01/2004 (d) 45,981 13,885 Broward County, Florida, Professional Sports Facilities, Tax Revenue Bonds, MSTR, VRDN, Series SGA-38, 1.25% due 9/01/2021 (d)(f) 13,885 33,820 Capital Trust Agency, Florida, M/F Housing Revenue Bonds, VRDN, Series 1999-B, 1.41% due 12/01/2032 (d) 33,820 20,700 Dade County, Florida, Water and Sewer System Revenue Bonds, VRDN, 1.15% due 10/05/2022 (c)(d) 20,700 5,000 Florida Housing Finance Corporation, Housing Revenue Bonds (Tuscany Lakes), VRDN, AMT, Series 1, 1.30% due 11/15/2035 (d) 5,000 Florida State Board of Education, GO (d): 5,000 Capital Outlay, FLOATS, Series 557, 1.21% due 1/01/2012 5,000 8,000 MSTR, VRDN, Series SGA-139, 1.25% due 6/01/2032 (f) 8,000 11,677 Florida State Department of Environmental Protection, Preservation Revenue Bonds, FLOATS, Series 722, 1.21% due 7/01/2022 (c)(d) 11,677 845 Gulf Breeze, Florida, Local Government Revenue Bonds, VRDN, Series E, 1.15% due 12/01/2020 (c)(d) 845 4,000 Hillsborough County, Florida, Aviation Authority, Revenue Refunding Bonds, MERLOTS, AMT, Series A18, 1.31% due 10/01/2013 (d)(f) 4,000 14,375 Jacksonville, Florida, Electric Authority, Electric System Revenue Bonds, VRDN, Sub-Series F, 1.20% due 10/01/2030 (d) 14,375 5,500 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Genesis Rehabilitation Hospital), VRDN, 1.14% due 5/01/2021 (d) 5,500 4,610 Jacksonville, Florida, Sales Tax Revenue Bonds, MERLOTS, Series B26, 1.26% due 10/01/2027 (d)(f) 4,610 2,950 Lee County, Florida, Hospital Board of Directors, Hospital Revenue Bonds (Memorial Health System), VRDN, Series B, 1.20% due 4/01/2027 (d) 2,950 32,100 Martin County, Florida, PCR, Refunding (Florida Power & Light Company Project), VRDN, 1.25% due 7/15/2022 (d) 32,100
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Florida $ 16,665 Orange County, Florida, Health Facilities Authority Revenue Bonds, FLOATS, (concluded) Series 532, 1.35% due 11/15/2015 (a)(d) $ 16,665 Orlando and Orange County, Florida, Expressway Authority, Expressway Revenue Refunding Bonds, VRDN (d)(e): 20,000 Series C2, 1.20% due 7/01/2025 20,000 15,000 Series C3, 1.20% due 7/01/2025 15,000 10,000 Sarasota County, Florida, Public Hospital Board, Hospital Revenue Bonds (Sarasota Memorial Hospital), VRDN, Series A, 1.35% due 7/01/2037 (d) 10,000 Georgia--3.0% 120,000 Atlanta, Georgia, Airport Revenue Bonds, BAN, 2.25% due 10/30/2003 120,170 Atlanta, Georgia, Urban Residential Finance Authority, S/F Mortgage Revenue Bonds, VRDN (d): 1,555 Series NT-R-1A, 1.374% due 12/01/2003 1,555 6,195 Series R-3A, 1.374% due 12/01/2004 6,195 8,000 Augusta, Georgia, Water and Sewer Revenue Refunding Bonds, MSTR, VRDN, Series SGS-140, 1.25% due 10/01/2032 (d)(e) 8,000 Burke County, Georgia, Development Authority, PCR, Refunding: 12,200 (Georgia Power Corporation Plant Vogtle), First Series, 1.25% due 3/25/2004 12,200 11,500 (Oglethorpe Power Corporation), VRDN, Series B, 1.15% due 1/01/2020 (a)(d) 11,500 20,470 De Kalb County, Georgia, School District, GO, TAN, Series 2002-2007, 2% due 12/31/2007 20,633 10,585 Eagle Tax-Exempt Trust, Georgia, GO, VRDN, Series 01, Class 1001, 1.23% due 11/01/2017 (d) 10,585 15,000 Fulton County, Georgia, Housing Authority Revenue Bonds, VRDN, 1.30% due 12/01/2034 (d) 15,000 6,815 Georgia Municipal Electric Authority, Power Revenue Bonds, VRDN, Series D, 1.23% due 1/01/2017 (d) 6,815 85,000 Gwinnett County, Georgia, School District, GO, Construction Sales Tax Notes, 2% due 12/29/2003 85,567 15,995 Municipal Securities Trust Certificates Revenue Bonds, VRDN, AMT, Series 2002-186, Class A, 1.25% due 2/25/2021 (d)(f) 15,995 Hawaii--0.9% 7,930 Eagle Tax-Exempt Trust, Hawaii, VRDN, Series 2001, Class 1101, 1.23% due 7/01/2011 (d) 7,930 Hawaii State, GO (d): 7,220 FLOATS, Series 605, 1.21% due 8/01/2015 (c) 7,220 28,740 VRDN, Series II-R-126, 1.23% due 1/01/2005 (b) 28,740 Honolulu, Hawaii, City and County, GO, Refunding, VRDN, Series C (c)(d): 16,700 1.30% due 12/01/2012 16,700 16,600 1.30% due 12/01/2017 16,600 4,100 1.30% due 12/01/2019 4,100 19,000 Honolulu, Hawaii, City and County M/F Housing Revenue Bonds (Moanalua Hillside Apartments), VRDN, AMT, 1.20% due 9/15/2032 (d) 19,000 Idaho--0.4% 45,500 Idaho State, GO, TAN, 3% due 6/30/2003 45,653
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Illinois--9.7% $ 14,285 ABN Amro Munitops Certificates Trust, GO, VRDN, Series 2001-31, 1.23% due 1/01/2009 (c)(d) $ 14,285 Aurora, Illinois, Kane and DuPage Counties and Springfield, Illinois, Single Mortgage Revenue Bonds (d): 34,700 FLOATS, AMT, Series 789, 1.27% due 4/03/2006 34,700 58,630 VRDN, Series A, 1.404% due 4/01/2004 58,630 13,710 Chicago, Illinois, GO, VRDN, Series B, 1.15% due 1/01/2012 (d) 13,710 31,615 Chigago, Illinois, Metropolitan Pier and Exposition Center, Municipal Series Trust Certificates, Revenue Refunding Bonds, VRDN, Class A, Series 2001-157, 1.25% due 10/05/2017 (c)(d) 31,615 53,000 Chicago, Illinois, Midway Airport Revenue Bonds, Second Lien, VRDN, AMT, Series A, 1.25% due 1/01/2029 (d)(f) 53,000 33,895 Chicago, Illinois, Municipal Securities Trust Certificates, GO, Refunding, VRDN, Class A, Series 2002-191, 1.38% due 3/18/2019 (c)(d) 33,895 36,000 Chicago, Illinois, Neighborhoods Alive 21, GO, VRDN, Series B, 1.15% due 1/01/2037 (d)(f) 36,000 29,950 Chicago, Illinois, O'Hare International Airport, Municipal Securities Trust Certificates Revenue Bonds, VRDN, AMT, Class A, Series 2001-151, 1.22% due 6/30/2015 (a)(d) 29,950 25,445 Chicago, Illinois, O'Hare International Airport, Municipal Securities Trust Certificates, Revenue Refunding Bonds, VRDN, AMT, Class A, Series 2000-93, 1.22% due 10/04/2012 (a)(d) 25,445 Chicago, Illinois, O'Hare International Airport Revenue Bonds, CP, Series 2001A: 25,300 1.25% due 4/08/2003 25,300 12,520 1.25% due 4/09/2003 12,520 5,290 Chicago, Illinois, O'Hare International Airport Revenue Bonds (General Airport Second Lien), VRDN, Series B, 1.13% due 1/01/2015 (d) 5,290 14,300 Chicago, Illinois, O'Hare International Airport, Special Facilities Revenue Bonds (Compagnie Nationale--Air France), VRDN, AMT, 1.25% due 5/01/2018 (d) 14,300 26,100 Chicago, Illinois, Revenue Bonds (Homestart Program), VRDN, Series A, 1.25% due 6/01/2005 (d) 26,100 29,085 Cook County, Illinois, Municipal Securities Trust Certificates, GO, Refunding, VRDN, Class A, Series 2001-145, 1.25% due 11/15/2029 (c)(d) 29,085 11,000 Eagle Tax-Exempt Trust, Chicago Board of Education, VRDN, Series 01, Class 1309, 1.23% due 12/01/2026 (d) 11,000 Eagle Tax-Exempt Trust, Chicago, Illinois, GO, VRDN, Class 1301(d): 14,380 Series 95, 1.23% due 1/01/2024 14,380 9,900 Series 98, 1.23% due 1/01/2017 9,900 5,000 Eagle Tax-Exempt Trust, Chicago, Illinois, Metropolitan Pier and Exposition Center, VRDN, Class A, Series 2002-6001, 1.23% due 12/15/2028 (d)(f) 5,000 30,000 Eagle Tax-Exempt Trust, Cook County, Illinois, VRDN, Series 02, Class 1303, 1.23% due 11/15/2025 (d) 30,000 11,000 Eagle Tax-Exempt Trust, Illinois, GO, VRDN, Series 01, Class 1307, 1.23% due 11/01/2022 (d) 11,000 14,355 Eagle Tax-Exempt Trust, Illinois, Metropolitan Expo Center, VRDN, Series 98, Class 1306, 1.23% due 6/15/2029 (d) 14,355 11,100 Eagle Tax-Exempt Trust, Illinois State, GO, VRDN, Series 02, Class 1302, 1.23% due 2/01/2027 (d) 11,100 Illinois Development Finance Authority, Revenue Refunding Bonds (Provena Health), VRDN (d): 41,500 Series B, 1.25% due 5/01/2028 (f) 41,500 20,000 Series C, 1.25% due 5/01/2028 20,000
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Illinois $ 5,000 Illinois Development Finance Authority, Water Facilities Revenue Refunding (concluded) Bonds (Illinois American Water Company), VRDN, AMT, 1.25% due 3/01/2032 (d)(f) $ 5,000 Illinois Educational Facilities Authority Revenue Bonds, VRDN (d): 8,450 (The Art Institute of Chicago), 1.20% due 3/01/2027 8,450 66,000 (The Art Institute of Chicago), 1.20% due 3/01/2034 66,000 4,800 (Chicago Historical Society), 1.15% due 12/01/2025 4,800 Illinois Educational Facilities Authority, Revenue Refunding Bonds, VRDN (d): 30,300 (The Art Institute of Chicago), 1.20% due 3/01/2027 30,300 17,800 (Northwestern University), 1.20% due 12/01/2025 17,800 Illinois HDA, M/F Housing Revenue Bonds (Danbury Court Apartments), VRDN, AMT (d): 6,300 Series A, 1.25% due 5/01/2037 6,300 450 Series B, 1.35% due 5/01/2037 450 5,000 Illinois HDA, Owner Occupied Housing Revenue Bonds, AMT, Series B, 1.12% due 4/30/2003 5,000 15,000 Illinois Health Facilities Authority, CP, 1.10% due 4/02/2003 15,000 10,000 Illinois Health Facilities Authority Revenue Bonds (Evanston Hospital Corporation), CP, 1.05% due 5/15/2003 10,000 Illinois Health Facilities Authority Revenue Bonds, Revolving Fund, Pooled, VRDN (d): 50,000 Series B, 1.15% due 8/01/2020 50,000 7,000 Series F, 1.15% due 8/01/2015 7,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, VRDN (d): 18,660 (Little Company of Mary Hospital), Series A, 1.26% due 8/15/2021 (f) 18,660 16,700 (Resurrection Health), Series B, 1.15% due 5/15/2029 (e) 16,700 6,800 (University of Chicago Hospitals), 1.15% due 8/01/2026 (f) 6,800 2,940 Illinois State Dedicated Tax (Macon Trust), VRDN, Series N, 1.25% due 12/15/2020 (d) 2,940 18,815 Illinois State, FLOATS, Series SG-60, 1.21% due 8/01/2019 (d) 18,815 9,000 Illinois State, GO, MERLOTS, Series B04, 1.26% due 12/01/2024 (d)(e)(f) 9,000 Illinois State, GO, Refunding (d)(f): 16,785 FLOATS, Series 743D, 1.21% due 8/01/2015 16,785 5,980 MERLOTS, Series A49, 1.26% due 8/01/2013 5,980 4,400 Illinois Student Assistance Commission, Student Loan Revenue Bonds, VRDN, AMT, Series A, 1.20% due 3/01/2006 (d) 4,400 10,000 Madison County, Illinois, Environmental Improvement Revenue Bonds (Shell Wood River Project), VRDN, AMT, Series A, 1.20% due 3/01/2033 (d) 10,000 21,350 Regional Transportation Authority, Illinois, FLOATS, Series SG-82, 1.21% due 6/01/2025 (d) 21,350 Regional Transportation Authority, Ilinois, GO, MERLOTS (d): 19,970 Series A24, 1.26% due 7/01/2032 (f) 19,970 5,000 Series A41, 1.26% due 6/01/2017 (c) 5,000 5,190 Regional Transportation Authority, Illinois, Revenue Bonds, MERLOTS, Series B15, 1.26% due 6/01/2027 (d)(f) 5,190 11,100 Southwestern Illinois Development Authority, Solid Waste Disposal Revenue Bonds (Shell Oil Company--Wood River Project), VRDN, AMT, 1.20% due 8/01/2021 (d) 11,100 7,000 Will County, Illinois, Exempt Facilities Revenue Bonds (Amoco Chemical Company Project), VRDN, AMT, 1.20% due 3/01/2028 (d) 7,000
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Indiana--5.2% $ 10,000 ABN Amro Munitops Certificates Trust, VRDN, Series 1998-5, 1.23% due 4/05/2006 (d)(e) $ 10,000 13,000 Goshen, Indiana, EDR, Refunding (Goshen College Project), VRDN, 1.20% due 10/01/2037 (d) 13,000 Indiana Bond Bank Revenue Bonds: 107,600 Advance Funding Program Notes, Series A, 2% due 1/27/2004 (a) 108,392 5,875 FLOATS, Series 670, 1.21% due 10/01/2022 (d)(f) 5,875 Indiana Bond Bank, Special Program Notes, Series A: 1,600 1.60% due 1/06/2004 1,601 17,400 2% due 1/06/2004 17,499 Indiana Health Facilities Financing Authority, Hospital Revenue Bonds, VRDN (d): 82,200 (Clarian Health Obligation Group), Series C, 1.15% due 3/01/2030 82,200 15,000 (Community Hospitals Project), Series A, 1.20% due 7/01/2027 15,000 Indiana Health Facilities Financing Authority, Hospital Revenue Refunding Bonds (Clarian Health Partners), VRDN (d): 51,800 Series B, 1.20% due 2/15/2026 51,800 50,800 Series C, 1.20% due 2/15/2026 50,800 1,650 Indiana Health Facilities Financing Authority Revenue Bonds (Capital Access Designated Pool), VRDN, 1.15% due 1/01/2012 (d) 1,650 67,190 Indiana Health Facilities Financing Authority, Revenue Refunding Bonds (Ascension Health Credit), VRDN, Series B, 1.15% due 11/15/2039 (a)(d) 67,190 41,330 Indiana Secondary Market Educational Loans Inc., Educational Loan Revenue Bonds, VRDN, AMT, Series B, 1.20% due 12/01/2014 (a)(d) 41,330 18,900 Indiana State, HFA, S/F Mortgage Revenue Bonds, VRDN, AMT, Series E-2, 1.40% due 1/01/2034 (d) 18,900 8,335 Indianapolis, Indiana, Local Public Improvement Bond Bank Revenue Bonds, PUTTERS, Series 331, 1.30% due 2/01/2023 (a)(d) 8,335 34,995 Indianapolis, Indiana, Public Improvement Bonds, Municipal Securities Trust Certificates, GO, VRDN, Series 2002-192, Class A, 1.25% due 6/18/2014 (d)(f) 34,995 10,000 Whiting, Indiana, Environmental Facilities, Revenue Refunding Bonds (BP Products Project), VRDN, AMT, Series C, 1.20% due 7/01/2034 (d) 10,000 7,600 Whiting, Indiana, Industrial Sewer and Solid Waste Disposal, Revenue Refunding Bonds (Amoco Oil Company Project), VRDN, AMT, 1.20% due 1/01/2026 (d) 7,600 Iowa--0.4% 30,000 Iowa State School Cash Anticipation Program, TRAN, 2.75% due 6/20/2003 (e) 30,072 14,500 Iowa Student Loan Liquidity Corporation, Student Loan Revenue Bonds, VRDN, AMT, Series B, 1.20% due 12/01/2013 (a)(d) 14,500 Kansas--0.2% 9,100 Butler County, Kansas, Solid Waste Disposal Facilities Revenue Bonds (Texaco Refining and Marketing), VRDN, AMT, Series A, 1.20% due 8/01/2024 (d) 9,100 16,800 Kansas State Development Finance Authority, Health Facilities Revenue Bonds (Stormont-Vail), VRDN, Series M, 1.20% due 11/15/2023 (d)(f) 16,800 Kentucky--4.3% 12,195 ABN Amro Munitops Certificates Trust, Lexington, Kentucky, GO, VRDN, Series 2001-37, 1.23% due 2/01/2010 (c)(d) 12,195 5,100 Ashland, Kentucky, PCR, Refunding (Calgon Carbon Corporation Project), FLOATS, Series A, 1.45% due 10/01/2006 (d) 5,100 20,930 Carroll County, Kentucky, PCR, CP, 1.15% due 5/22/2003 20,930 Daviess County, Kentucky, Solid Waste Disposal Facility Revenue Bonds (Scott Paper Company Project), VRDN, AMT (d): 44,100 Series A, 1.25% due 12/01/2023 44,100 16,300 Series A, 1.25% due 5/01/2024 16,300 26,200 Series B, 1.25% due 12/01/2023 26,200 21,700 Series B, 1.25% due 5/01/2024 21,700
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Kentucky $ 16,000 Jefferson County, Kentucky, PCR (Louisville Gas and Electric Company), CP, (concluded) Series A, 1.17% due 5/06/2003 $ 16,000 Kentucky Asset/Liability Commission, General Fund Revenue Bonds, TRAN: 85,000 Series A, 2.75% due 6/26/2003 85,217 45,000 Series B, 1.30% due 6/26/2003 45,000 75,000 Kentucky Association of Counties, Advance Revenue Cash Flow Borrowing, COP, TRAN, 3% due 6/30/2003 75,243 5,900 Kentucky State Property and Buildings Commission, Revenue Refunding Bonds, FLOATS, Series 575, 1.21% due 2/01/2017 (d)(e) 5,900 36,475 Kentucky State Turnpike Authority, Resource Recovery Road Revenue Bonds, FLOATS, Series 488, 1.21% due 7/01/2007 (d)(e) 36,475 20,330 Logan/Todd, Kentucky, Regional Water Commission, Revenue Refunding Bonds, BAN, 3% due 8/01/2003 20,419 21,500 Trimble County, Kentucky, PCR, CP, 1.12% due 5/06/2003 21,500 Louisiana--2.8% 5,100 Ascension Parish, Louisiana, PCR, Refunding (Shell Oil Company Project), VRDN, 1.15% due 9/01/2023 (d) 5,100 17,700 Ascension Parish, Louisiana, Revenue Bonds (BASF Corporation Project), VRDN, AMT, 1.30% due 3/01/2025 (d) 17,700 31,500 Calcasieu Parish, Louisiana, IDB, Environmental Revenue Refunding Bonds (Citgo Petroleum Corp.), VRDN, AMT, 1.20% due 3/01/2025 (d) 31,500 22,700 East Baton Rouge, Louisiana, Mortgage Finance Authority Revenue Bonds (Conventional Program Notes), Series A-R-4, 1.152% due 3/11/2004 22,699 25,000 Jefferson Parish, Louisiana, Hospital Service District Number 001, Hospital Revenue Bonds (West Jefferson Medical Center), VRDN, Series B, 1.15% due 1/01/2028 (d)(e) 25,000 6,000 Louisiana Local Government, Environmental Facilities, Community Development Authority Revenue Bonds (Honeywell International Inc. Project), VRDN, AMT, 1.35% due 12/01/2037 (d) 6,000 Louisiana Public Facilities Authority Revenue Bonds (Equipment and Capital Facilities Loan Program), VRDN (d): 21,645 Series B, 1.23% due 7/01/2023 21,645 15,620 Series C, 1.25% due 7/01/2024 15,620 2,845 Louisiana State GO, FLOATS, Series 667, 1.25% due 4/01/2019 (c)(d) 2,845 5,100 Louisiana State Offshore Terminal Authority, Deepwater Port Revenue Refunding Bonds (First Stage A-Loop Inc.), VRDN, 1.15% due 9/01/2008 (d) 5,100 New Orleans, Louisiana, Finance Authority, S/F Mortgage Revenue Refunding Bonds, VRDN (d): 25,000 Series C, 1.374% due 6/01/2042 25,000 27,700 Series R-6, 1.129% due 3/11/2004 27,699 24,200 Plaquemines Parish, Louisiana, Environmental Revenue Bonds (BP Exploration & Oil), VRDN, AMT, 1.20% due 10/01/2024 (d) 24,200 4,400 Saint Charles Parish, Louisiana, PCR, Refunding (Shell Oil Company Project), VRDN, 1.15% due 6/01/2005 (d) 4,400 Saint Charles Parish, Louisiana, PCR, VRDN, AMT (d): 24,400 (Shell Oil Company--Norco Project), 1.20% due 11/01/2021 24,400 15,100 (Shell Oil Company--Norco Project), 1.20% due 9/01/2023 15,100 21,000 (Shell Oil Company Project), Series A, 1.20% due 10/01/2022 21,000 4,400 South Louisiana Port Commission, Port Revenue Refunding Bonds (Occidental Petroleum), VRDN, 1.15% due 7/01/2018 (d) 4,400
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Maine--0.2% $ 16,500 Windham, Maine, GO, BAN, 2.25% due 6/30/2003 $ 16,548 Maryland--1.1% 5,245 Anne Arundel County, Maryland, Pollution Revenue Bonds (Baltimore Gas & Electric Company), VRDN, 2.20% due 7/01/2014 (d) 5,245 35,700 Baltimore, Maryland, Port Facilities Revenue Bonds (Occidental Petroleum), FLOATS, 1.05% due 10/14/2011 (d) 35,700 Maryland State Community Development Administration, Department of Housing and Community Develoment, Residential Revenue Refunding Bonds: 19,760 AMT, Series E, 1.25% due 12/18/2003 19,760 20,000 Series D, 1.20% due 12/18/2003 20,000 36,300 Maryland State Energy Financing Administration, Solid Waste Disposal Revenue Bonds (Cimenteries Project), VRDN, AMT, 1.20% due 5/01/2035 (d) 36,300 Massachusetts-- 10,000 Eagle Tax-Exempt Trust, Massachusetts Commuter Facilities, VRDN, Series 1.6% 2001, Class 2101, 1.15% due 6/15/2033 (d) 10,000 53,925 Franklin, Massachusetts, GO, BAN, 3% due 5/01/2003 53,970 6,150 Hudson, Massachusetts, GO, BAN, 3% due 5/14/2003 6,157 29,973 Massachusetts State, GO, Refunding, FLOATS, Series 716D, 1.15% due 8/01/2018 (d)(f) 29,973 12,166 Mattapoisett, Massachusetts, GO, BAN, 3% due 5/01/2003 12,175 22,000 Natick, Massachusetts, GO, BAN, 3% due 5/01/2003 22,018 17,940 Peabody, Massachusetts, GO, Refunding, BAN, 3% due 4/14/2003 17,947 17,000 Springfield, Massachusetts, GO, BAN, 3% due 4/14/2003 17,013 Michigan--2.0% 8,000 ABN Amro Munitops Certificates Trust, Michigan, GO, VRDN, Series 2002-29, 1.60% due 11/01/2010 (c)(d) 8,000 4,615 Detroit Michigan, City School District, GO, VRDN, Series A, 1.23% due 5/01/2029 (d)(e) 4,615 14,730 Detroit, Michigan, City School District, MERLOTS, Series A-113, 1.26% due 5/01/2029 (d) 14,730 Kent Hospital Finance Authority, Michigan, Revenue Refunding Bonds (Spectrum Health), VRDN (d)(f): 24,200 Series B, 1.15% due 1/15/2026 24,200 16,800 Series C, 1.15% due 1/15/2026 16,800 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (d): 22,000 MERLOTS, Series K, 1.26% due 11/15/2023 (f) 22,000 20,000 (Trinity Health), VRDN, Series E, 1.15% due 12/01/2030 (a) 20,000 4,600 Michigan State Strategic Fund, PCR, Refunding (Consumers Power Project), VRDN, 1.15% due 4/15/2018 (a)(d) 4,600 16,505 Municipal Securities Trust Certificates, Revenue Refunding Bonds (Michigan State Hospital), VRDN, Series 1997-24, Class A, 1.25% due 12/01/2005 (d)(e) 16,505 76,920 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County), VRDN, AMT, Series A, 1.20% due 12/01/2032 (c)(d) 76,920 Minnesota--1.4% 15,000 City of Rochester, Minnesota, CP, Series 2001-C, 1.05% due 4/01/2003 15,000 46,825 Eagle Tax-Exempt Trust, Minnesota, GO, VRDN, Series 93-A, 1.23% due 8/01/2003 (d) 46,825 Minnesota State, CP: 9,000 1.05% due 4/01/2003 9,000 81,000 1.10% due 4/03/2003 81,000 Mississippi--1.0% 7,000 Jackson County, Mississippi, Industrial Sewer Facilities Revenue Bonds (Chevron U.S.A. Inc. Project), VRDN, AMT, 1.20% due 12/15/2024 (d) 7,000 7,100 Mississippi Business Finance Corporation, Mississippi Solid Waste Disposal Revenue Bonds (Mississippi Power Company Project), VRDN, AMT, 1.25% due 7/01/2025 (d) 7,100 3,520 Mississippi Business Finance Corporation, Mississippi, Solid Waste Disposal Revenue Refunding Bonds (Mississippi Power Company Project), VRDN, AMT, 1.25% due 5/01/2028 (d) 3,520
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Mississippi $ 12,500 Mississippi Home Corporation, Lease Purpose Revenue Bonds, VRDN, (concluded) 1.25% due 10/01/2007 (d) $ 12,500 27,894 Mississippi Home Corporation, S/F Revenue Bonds, FLOATS, AMT, Series 714, 1.28% due 10/03/2005 (d) 27,894 Mississippi Hospital Equipment and Facilities Authority Revenue Bonds, VRDN (d): 19,300 (Baptist Memorial Hospital Project), 1.18% due 5/01/2021 19,300 25,900 (Mississippi Baptist Medical Center), 1.19% due 7/01/2012 25,900 Missouri--1.5% 40,000 Lees Summit, Missouri, M/F Housing Revenue Bonds (Affordable Housing Acquisition), VRDN, Series A, 1.49% due 7/01/2046 (d) 40,000 11,400 Missouri Development Finance Board, Cultural Facilities Revenue Bonds (Nelson Gallery Foundation), VRDN, Series B, 1.20% due 12/01/2031 (d)(f) 11,400 Missouri Higher Education Loan Authority, Student Loan Revenue Bonds, VRDN, AMT (d): 7,800 Series A, 1.20% due 6/01/2017 7,800 37,800 Series B, 1.20% due 6/01/2020 37,800 10,665 Missouri-Illinois Bi-State Development Agency, Metropolitan District Revenue Bonds, PUTTERS, Series 311, 1.25% due 10/01/2013 (d) 10,665 49,835 Tobacco Settlement Financing Authority, Missouri, General Fund Revenue Bonds, Temporary Notes, Series A, 1.60% due 6/15/2003 49,843 Nebraska--1.5% 4,995 Nebhelp Inc., Nebraska, Revenue Bonds, ROCS, AMT, Series II-R-205, 1.15% due 6/01/2013 (d)(f) 4,995 24,000 Nebraska Investment Finance Authority, S/F Housing Revenue Refunding Bonds, VRDN, AMT, Series E, 1.25% due 9/01/2033 (d) 24,000 47,500 Nebraska Public Power District Revenue Bonds, CP, 1.03% due 4/10/2003 47,500 4,995 Nebraska Public Power District, Revenue Refunding Bonds, ROCS, Series II-R-209, 1.15% due 1/01/2012 (d)(f) 4,995 Omaha, Nebraska, Public Power, CP: 24,750 1.10% due 4/14/2003 24,750 30,000 1.07% due 5/01/2003 30,000 18,600 1.15% due 5/27/2003 18,600 Nevada--2.1% 29,185 ABN Amro Munitops Certificates Trust, VRDN, Series 1999-15, 1.22% due 1/02/2008 (d)(f) 29,185 156,700 Clark County, Nevada, Airport Improvement Revenue Refunding Bonds, VRDN, Series A, 1.25% due 7/01/2012 (d)(f) 156,700 12,500 Clark County, Nevada, IDR (Southwest Gas Corporation Project), VRDN, AMT, Series B, 1.25% due 3/01/2038 (d) 12,500 9,065 Las Vegas Valley, Nevada, Water District, GO, Refunding, MERLOTS, Series B-10, 1.26% due 6/01/2024 (d)(f) 9,065 6,795 Nevada Housing Division Revenue Bonds (Multi-Unit Housing--Mesquite), VRDN, AMT, Series B, 1.35% due 5/01/2028 (d) 6,795 7,345 Washoe County, Nevada, School District, GO, ROCS, Series II-R-2012, 1.23% due 6/01/2020 (c)(d) 7,345 New Hampshire-- 5,475 New Hampshire Higher Educational and Health Facilities Authority Revenue 0.2% Refunding Bonds, FLOATS, Series 772, 1.21% due 1/01/2017 (c)(d) 5,475 7,415 New Hampshire State Business Finance Authority, Resource Recovery Revenue Refunding Bonds (Wheelabrator), VRDN, Series A, 1.15% due 1/01/2018 (d) 7,415 5,400 New Hampshire State, HFA, M/F Housing Revenue Bonds (P.R.A. Properties-- Pheasant Run Project), VRDN, AMT, 1.20% due 5/01/2025 (d) 5,400 New Jersey-- 17,200 Atlantic City, New Jersey, GO, BAN, 2.75% due 4/07/2003 17,202 0.3% 14,000 Bayonne, New Jersey, Municipal Utilities Authority, Revenue Refunding Bonds (Water Project Notes), 5.35% due 6/26/2003 14,105
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value New Mexico-- $ 30,000 Bernalillo County, New Mexico, GO, TRAN, Series A, 2% due 12/15/2003 $ 30,175 0.3% New York--6.9% 16,279 Afton, New York, Central School District, GO, Refunding, BAN, 2.75% due 5/22/2003 16,298 19,720 Babylon, New York, IDA Residential Recovery Revenue Refunding Bonds (Ogden Martin Project), VRDN, 1.25% due 1/01/2019 (d)(e) 19,720 24,700 Eagle Tax-Exempt Trust, New York State (Memorial Sloan), VRDN, Series 98, Class 3202, 1.18% due 7/01/2023 (d) 24,700 10,900 Fonda-Fultonville, New York, Central School District, GO, BAN, 3% due 4/11/2003 10,902 19,000 Freeport, New York, GO, Refunding, BAN, Series A, 1.75% due 1/22/2004 19,068 12,000 Hempstead, New York, Union Free School District, GO, TAN, 2.75% due 6/26/2003 12,027 15,000 Johnson City, New York, Central School District, GO, BAN, 2.75% due 6/25/2003 15,034 14,885 Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds, FLOATS, Series 741, 1.18% due 1/01/2017 (d)(f) 14,885 17,600 Monroe County, New York, Public Improvement, GO, BAN, 2% due 12/19/2003 17,700 21,500 New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Refunding Bonds, MSTR, VRDN, Series SGB-27, 1.18% due 6/15/2024 (d)(e) 21,500 63,000 New York City, New York, City Transitional Finance Authority, BAN, Refunding, Series 2, 2% due 2/19/2004 63,515 9,100 New York City, New York, City Transitional Finance Authority Revenue Bonds (New York City Recovery), VRDN, Series 1, Sub-Series 1C, 1.15% due 11/01/2022 (d) 9,100 95,000 New York City, New York, GO, FLOATS, Series L28J, 1.25% due 4/11/2003 (d) 95,000 20,000 New York City, New York, Water Authority, CP, Series 7, 1.15% due 4/24/2003 20,000 17,500 New York State, HFA, Service Contract Revenue Refunding Bonds, VRDN, Series B, 1.125% due 3/15/2026 (d) 17,500 300 New York State Local Government Assistance Corporation Revenue Bonds, VRDN, Series B, 1.10% due 4/01/2025 (d) 300 New York State Local Government Assistance Corporation, Revenue Refunding Bonds, Sub-Lien, VRDN (d): 57,500 Series 4V, 1.15% due 4/01/2022 57,500 16,885 Series 8V, 1.15% due 4/01/2019 16,885 5,995 New York State Power Authority Revenue Bonds, ROCS, Series II-R-210, 1.15% due 11/15/2015 (d)(f) 5,995 6,796 Northport-East Northport, New York, Union Free School District, GO, BAN, 2.75% due 4/30/2003 6,800 20,934 Sandy Creek, New York, Central School District, GO, Refunding, BAN, 2.50% due 6/27/2003 20,973 5,000 South Huntington, New York, Union Free School District, GO, TAN, 2.50% due 6/26/2003 5,011 15,000 Starpoint, New York, Central School District, GO, BAN, 2.75% due 6/27/2003 15,036 175,000 Suffolk County, New York, GO, TAN, Series I, 1.75% due 8/14/2003 175,451 10,000 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Refunding Bonds, VRDN, Series B, 1.15% due 1/01/2032 (d) 10,000 31,910 Triborough Bridge and Tunnel Authority, New York, Revenue Bonds, FLOATS, Series 729, 1.18% due 11/15/2019 (d)(f) 31,910 8,000 West Islip, New York, Union Free School District, GO, TAN, 2.50% due 6/27/2003 8,018 North Carolina-- 19,995 Municipal Securities Trust Certificates, GO, Refunding, VRDN, Series 2002-201, 0.4% Class A, 1.23% due 4/12/2017 (d) 19,995 10,000 Municipal Securities Trust Certificates, GO, VRDN, Series 2001-125, Class A, 1.15% due 7/23/2015 (d) 10,000
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value North Carolina $ 8,165 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, (concluded) MERLOTS, Series A22, 1.26% due 1/01/2024 (d)(f) $ 8,165 4,500 Wake County, North Carolina, Industrial Facilities and Pollution Control Financing Authority Revenue Bonds (Solid Waste Disposal--Highway 55), VRDN, AMT, 1.32% due 9/01/2013 (d) 4,500 North Dakota-- 6,355 Oliver City, North Dakota, PCR, Refunding, MERLOTS, Series B07, 1.26% 0.1% due 1/01/2027 (a)(d) 6,355 Ohio--1.8% Clinton County, Ohio, Hospital Revenue Bonds (Ohio Hospital Capital Asset Inc. Pooled Loan), VRDN (d): 2,135 1.65% due 6/01/2028 2,135 10,830 1.25% due 7/01/2029 10,830 38,000 Dayton, Ohio, City School District, GO, BAN, 2% due 7/10/2003 38,087 22,275 Eagle Tax-Exempt Trust, Ohio State Turnpike, VRDN, Series 98, Class 3503, 1.23% due 2/15/2026 (d) 22,275 10,500 Eagle Tax-Exempt Trust, Ohio, Water Authority Revenue Bonds (Ohio Edison), VRDN, Series 95, Class 3502, 1.23% due 7/01/2015 (d) 10,500 23,875 Franklin County, Ohio, Hospital Revenue Bonds (Holy Cross Health System), VRDN, 1.18% due 6/01/2016 (d) 23,875 16,020 Franklin County, Ohio, Hospital Revenue Refunding and Improvement Bonds (U.S. Health Corporation), VRDN, Series A, 1.15% due 12/01/2021 (d) 16,020 23,000 Kettering, Ohio, City School District, GO, BAN, 2% due 6/25/2003 23,046 10,400 Montgomery County, Ohio, Revenue Refunding Bonds (Miami Valley Hospital), VRDN, Series A, 1.15% due 11/15/2022 (d) 10,400 1,765 Ohio HFA, M/F Housing Revenue Bonds (Kenwood Congregate--Retire), VRDN, 1.05% due 12/01/2015 (d) 1,765 9,600 Ohio HFA, Revenue Bonds, ROCS, AMT, Series II-R-187, 1.27% due 9/01/2007 (d) 9,600 5,000 Ohio State, GO, FLOATS, Series 603, 1.21% due 9/15/2020 (d)(e) 5,000 12,500 Toledo, Ohio, City School District, GO, BAN, 2% due 7/23/2003 12,536 Oklahoma--1.7% Comanche County, Oklahoma, Home Finance Authority, S/F Mortgage Revenue Bonds, VRDN, Series A (d): 5,306 1.19% due 4/01/2004 5,305 4,820 1.40% due 4/01/2004 4,820 7,500 Grand Gateway, Oklahoma, Home Finance Authority, S/F Mortgage Revenue Bonds, VRDN, Series A, 1.374% due 2/01/2006 (d) 7,500 Moore, Oklahoma, EDA, S/F Mortgage Revenue Bonds, VRDN (d): 7,000 Series A, 1.14% due 4/08/2004 7,000 2,900 Series B-R-3, 1.14% due 12/11/2003 2,900 35,000 Oklahoma County, Oklahoma, Finance Authority Revenue Bonds (Oklahoma County Housing Preservation), VRDN, 1.30% due 1/01/2033 (d) 35,000 9,200 Oklahoma County, Oklahoma, HFA, S/F Mortgage Revenue Bonds, Series C-R-3, 1.14% due 12/11/2003 9,200 12,839 Oklahoma County, Oklahoma, Home Finance Authority, S/F Mortgage Revenue Bonds, VRDN, Series D, 1.374% due 6/02/2003 (d) 12,839 65,900 Oklahoma State Industries Authority, Revenue Refunding Bonds (Integris Baptist), VRDN, Series B, 1.15% due 8/15/2029 (d)(f) 65,900 7,000 Rogers County, Oklahoma, HFA Revenue Bonds, Series A, 1.188% due 12/01/2003 7,000 Tulsa County, Oklahoma, Home Finance Authority, S/F Mortgage Revenue Bonds: 15,000 Series G, 1.359% due 12/01/2003 15,000 8,200 VRDN, Series A, 1.374% due 4/01/2004 (d) 8,200
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Oregon--1.4% $ 11,730 ABN Amro Munitops Certificates Trust, GO, VRDN, Series 2001-4, 1.23% due 6/01/2009 (d)(f) $ 11,730 4,250 Gilliam County, Oregon, Solid Waste Disposal Revenue Bonds (Waste Management Inc. Project), VRDN, 1.20% due 7/01/2027 (d) 4,250 7,170 Oregon State Health, Housing, Educational and Cultural Facilities Authority Revenue Bonds (Sacred Heart Medical Center), VRDN, Series A, 1.15% due 11/01/2028 (d) 7,170 125,190 Oregon State, TAN, Series A, 3.25% due 5/01/2003 125,320 Pennsylvania-- 2,500 Butler County, Pennsylvania, IDA, IDR, Refunding (Wetterau Finance Co. 1.9% Project), VRDN, 1.20% due 12/01/2014 (d) 2,500 25,240 Dauphin County, Pennsylvania, General Authority, Revenue Refunding Bonds (School District Pooled Financing Program II), VRDN, 1.17% due 9/01/2032 (a)(d) 25,240 6,000 Delaware Valley, Pennsylvania, Regional Finance Authority, Local Government Revenue Bonds, VRDN, Mode 1, 1.15% due 8/01/2016 (d) 6,000 18,735 Eagle Tax-Exempt Trust, Pennsylvania, GO, VRDN, Series 94, Class 3803, 1.23% due 5/01/2008 (d) 18,735 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN (d): 13,200 (Pennsylvania Loan Program), Series A, 1.15% due 3/01/2030 (e) 13,200 7,500 Series D, 1.20% due 3/01/2024 7,500 5,200 Series G, 1.20% due 3/01/2024 5,200 5,600 Huntingdon County, Pennsylvania, General Authority, College Revenue Bonds (Juniata College Project), VRDN, Series A, 2.05% due 5/01/2026 (d) 5,600 12,000 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 1.23% due 9/15/2020 (d) 12,000 5,000 Mount Lebanon, Pennsylvania, School District, GO, MERLOTS, Series B19, 1.26% due 2/15/2027 (d)(f) 5,000 Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue Bonds, VRDN, Series A (d): 18,700 1.20% due 12/01/2025 18,700 50,000 AMT, 1.20% due 6/01/2029 (a) 50,000 2,900 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (Association of Independent Colleges and Universities), VRDN, Series H-9, 2.20% due 5/01/2031 (d) 2,900 Pennsylvania State Turnpike Commission, Turnpike Revenue Refunding Bonds, VRDN (d): 20,000 Series A-1, 1.15% due 12/01/2030 20,000 8,800 Series A-3, 1.15% due 12/01/2032 8,800 Rhode Island-- Rhode Island State and Providence Plantations, GO, FLOATS (d): 0.4% 26,160 Series 568, 1.21% due 9/01/2017 (f) 26,160 16,170 Series 720, 1.21% due 11/01/2022 (c) 16,170 South Carolina-- Berkeley County, South Carolina, Exempt Facilities, Industrial Revenue Bonds 2.2% (Amoco Chemical Company Project), VRDN, AMT(d): 15,300 1.20% due 4/01/2027 15,300 5,700 1.20% due 4/01/2028 5,700 118,000 Charleston County, South Carolina, School District, GO, BAN, 2% due 2/25/2004 118,941 Florence County, South Carolina, Solid Waste Disposal and Wastewater Treatment Revenue Bonds (Roche Carolina Inc. Project), VRDN, AMT (d): 35,000 1.20% due 4/01/2026 35,000 19,200 1.20% due 4/01/2027 19,200 South Carolina Jobs EDA, Economic Development Revenue Bonds (Wellman Inc. Project), VRDN, AMT (d): 5,400 1.25% due 12/01/2010 5,400 12,295 1.25% due 12/01/2012 12,295
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value South Carolina $ 12,500 South Carolina Transportation Infrastructure Bank Revenue Bonds, FLOATS, (concluded) Series 728, 1.21% due 10/01/2022 (a)(d) $ 12,500 10,700 York County, South Carolina, PCR, Refunding (Duke Power Company Project), CP, 1.25% due 4/03/2003 10,700 South Dakota-- 13,300 Lawrence County, South Dakota, Solid Waste Disposal Revenue Bonds 0.1% (Homestake Mining), VRDN, AMT, Series A, 1.25% due 7/01/2032 (d) 13,300 Tennessee--5.1% Blount County, Tennessee, Public Building Authority, Local Government Public Improvement Revenue Bonds, VRDN (a)(d): 2,500 Series A-1-D, 1.15% due 6/01/2025 2,500 8,000 Series A-2-E, 1.15% due 6/01/2035 8,000 Clarksville, Tennessee, Public Building Authority Revenue Bonds, Pooled Financing (Tennessee Municipal Bond Fund), VRDN (d): 46,405 1.15% due 11/01/2027 46,405 81,200 1.15% due 6/01/2029 81,200 70 1.14% due 7/01/2031 70 22,600 1.14% due 1/01/2033 22,600 Knoxville, Tennessee, Utilities Board Revenue Bonds, VRDN (d)(e): 12,080 (Sub-Electric System), 1.15% due 1/15/2005 12,080 15,915 (Sub-Gas System), 1.15% due 1/15/2005 15,915 18,625 (Sub-Wastewater System), 1.15% due 1/15/2005 18,625 8,100 Loudon, Tennessee, IDB, PCR, Refunding (A.E. Staley Manufacturing Company Project), VRDN, 1.17% due 6/01/2023 (d) 8,100 25,000 Memphis, Tennessee, Health, Educational and Housing Facility Board Revenue Bonds (Not-for Profit M/F Program), VRDN, 1.41% due 8/01/2032 (d) 25,000 4,430 Metropolitan Government of Nashville and Davidson County, Tennessee, Health and Education Facilities Board Revenue Bonds, FLOATS, Series 533, 1.35% due 11/15/2016 (d)(e) 4,430 Montgomery County, Tennessee, Public Building Authority, Pooled Financing Revenue Bonds, VRDN (d): 34,195 (Montgomery County Loan), 1.15% due 7/01/2019 34,195 36,360 (Tennessee County Loan Pool), 1.15% due 11/01/2027 36,360 Sevier County, Tennessee, Public Building Authority Revenue Bonds, Local Government Public Improvement, VRDN (d): 69,900 AMT, Series III-A, 1.20% due 6/01/2028 (a) 69,900 7,100 Series II-A-1, 1.15% due 6/01/2024 (a) 7,100 5,560 Series II-E-2, 1.15% due 6/01/2021 (a) 5,560 15,000 Series II-F-3, 1.15% due 6/01/2005 (a) 15,000 10,000 Series III-D-2, 1.15% due 6/01/2017 (a) 10,000 4,690 Series III-D-6, 1.15% due 6/01/2020 (a) 4,690 19,100 Series III-E-1, 1.15% due 6/01/2025 19,100 10,000 Series III-E-4, 1.15% due 6/01/2025 10,000 5,700 Series IV-2, 1.15% due 6/01/2020 (e) 5,700 5,000 Series IV-3, 1.15% due 6/01/2025 (e) 5,000 6,170 Series IV-A-4, 1.15% due 6/01/2020 (e) 6,170 7,000 Series IV-B-3, 1.15% due 6/01/2013 (e) 7,000 6,000 Series IV-B-4, 1.15% due 6/01/2025 (e) 6,000 4,100 Series IV-B-5, 1.15% due 6/01/2022 (e) 4,100 6,635 Series IV-E-3, 1.15% due 6/01/2024 (a) 6,635 3,865 Series IV-E-4, 1.15% due 6/01/2020 (a) 3,865 6,000 Series IV-G-2, 1.15% due 6/01/2022 6,000 26,000 Shelby County, Tennessee, CP, Series A, 1.12% due 4/01/2003 26,000 12,000 Shelby County, Tennessee, Health, Educational and Housing Facilities Board Revenue Bonds (Hutchison School Project), VRDN, 1.19% due 5/01/2026 (d) 12,000
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Texas--10.1% $ 9,030 ABN Amro Munitops Certificates Trust, Grapevine, Texas, Permanent School Fund, GO, VRDN, Series 2001-8, 1.23% due 2/15/2007 (d) $ 9,030 15,750 ABN Amro Munitops Certificates Trust, Houston, Texas, Airport, VRDN, AMT, Series 1998-15, 1.27% due 7/05/2006 (c)(d) 15,750 ABN Amro Munitops Certificates Trust, San Antonio, Texas, VRDN (d): 13,500 Series 1998-22, 1.23% due 1/03/2007 (f) 13,500 29,950 Series 1999-10, 1.23% due 3/07/2007 (f) 29,950 5,075 Aldine, Texas, Independent School District, GO, Refunding, ROCS, Series II-R-158, 1.23% due 2/15/2020 (d) 5,075 7,445 Austin, Texas, Utility System Revenue Refunding Bonds, ROCS, Series II-R-159, 1.23% due 5/15/2014 (d)(e) 7,445 Bell County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Scott & White Memorial Hospital), VRDN (d)(f): 2,000 Series 2001-1, 1.15% due 8/15/2031 2,000 28,400 Series B-1, 1.15% due 8/15/2029 28,400 26,500 Series B-2, 1.15% due 8/15/2029 26,500 13,925 Bexar County, Texas, Revenue Bonds, FLOATS, Series 454, 1.21% due 8/15/2008 (d)(f) 13,925 10,000 Brazos River Authority, Texas, Harbor Navigational District, Brazoria County Revenue Bonds (BASF Corp.), VRDN, AMT, 1.30% due 4/01/2032 (d) 10,000 8,700 Central Texas Housing Finance Corporation, S/F Mortgage Revenue Bonds, Series 1-R3, 1.14% due 7/10/2003 8,700 7,460 Corpus Christi, Texas, Business and Job Development Corporation, Sales Tax Revenue Refunding Bonds, ROCS, Series II-R-2001, 1.23% due 9/01/2017 (a)(d) 7,460 4,000 Corpus Christi, Texas, Industrial Development Corp., IDR (Dedietrich USA Incorporated Project), VRDN, AMT, 1.35% due 11/01/2008 (d) 4,000 Dallas-Fort Worth, Texas, Regional Airport Revenue Bonds, MSTR, VRDN, AMT (d)(f): 25,300 Series SGB-49, 1.22% due 11/01/2023 25,300 9,495 Series SGB-52, 1.28% due 11/01/2017 9,495 Dallas-Fort Worth, Texas, Regional Airport Revenue Refunding Bonds, MSTR, VRDN (d): 23,885 AMT, Series SGB-46, 1.28% due 11/01/2020 (f) 23,885 6,600 Series SGB-52, 1.23% due 11/01/2015 (c) 6,600 9,900 Eagle Tax-Exempt Trust, Dallas-Fort Worth, Texas, VRDN, Series 96C, Class 4301, 1.23% due 11/01/2005 (d) 9,900 6,000 Eagle Tax-Exempt Trust, Dallas, Texas, VRDN, Series 01, Class 4310, 1.23% due 12/01/2026 (d) 6,000 4,915 Eagle Tax-Exempt Trust, San Antonio, Texas, VRDN, Series 01, Class 4311, 1.23% due 8/15/2026 (d) 4,915 11,120 El Paso County, Texas, Housing Finance Corporation, S/F Mortgage Revenue Bonds, Series A, 1.14% due 12/11/2003 11,120 5,300 Grapevine, Texas, Industrial Development Corporation, Airport Revenue Refunding Bonds (Southern Air Transport), VRDN, 1.20% due 3/01/2010 (d) 5,300 7,300 Gulf Coast IDA, Texas, Marine Terminal Revenue Bonds (Amoco Oil Company Project), VRDN, AMT, 1.20% due 4/01/2028 (d) 7,300 7,400 Gulf Coast IDA, Texas, Solid Waste Disposal Revenue Bonds (Citgo Petroleum Corporation Project), VRDN, AMT, 1.20% due 4/01/2026 (d) 7,400 12,500 Gulf Coast, Texas, Waste Disposal Authority Revenue Bonds (Air Products Project), VRDN, AMT, 1.40% due 3/01/2035 (d) 12,500 25,000 Gulf Coast Waste Disposal Authority, Texas, Environmental Facilities Revenue Bonds (American Acryl LP Project), VRDN, AMT, Series B, 1.25% due 9/01/2036 (d) 25,000
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Texas $ 28,500 Gulf Coast Waste Disposal Authority, Texas, Environmental Facilities Revenue (continued) Refunding Bonds (Amoco Oil Company Project), VRDN, AMT, 1.20% due 1/01/2026 (d) $ 28,500 36,300 Gulf Coast Waste Disposal Authority, Texas, PCR (Amoco Oil Company Project), VRDN, AMT, 1.20% due 6/01/2024 (d) 36,300 17,710 Harris County, Texas, FLOATS, Series SG-45, 1.21% due 8/15/2016 (d) 17,710 6,150 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Texas Children's Hospital), VRDN, Series B-1, 1.15% due 10/01/2029 (d) 6,150 6,700 Harris County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds (Methodist Hospital), VRDN, 1.15% due 12/01/2032 (d) 6,700 10,400 Harris County, Texas, Health Facilities Development Corporation, Special Facilities Revenue Bonds (Texas Medical Center Project), VRDN, 1.15% due 2/15/2022 (d)(f) 10,400 11,400 Harris County, Texas, Industrial Development Corporation, Revenue Refunding Bonds (Shell Oil Company Project), VRDN, 1.15% due 4/01/2027 (d) 11,400 Harris County, Texas, Industrial Development Corporation, Solid Waste Disposal Revenue Bonds, VRDN, AMT (d): 46,100 (Deer Park Limited Partnership), Series A, 1.30% due 2/01/2023 46,100 12,500 (Deer Park), Series 95-B, 1.30% due 3/01/2023 12,500 10,415 Harris County, Texas, Revenue Refunding Bonds, ROCS, Series II-R-1030, 1.23% due 8/15/2017 (d)(e) 10,415 7,840 Houston, Texas, Water and Sewer System Revenue Bonds, MERLOTS, Series A-128, 1.26% due 12/01/2029 (d)(f) 7,840 9,760 Laredo, Texas, Housing Finance Corporation, S/F Mortgage Revenue Bonds, FLOATS, Series 715, 1.28% due 5/03/2004 (d) 9,760 4,860 Middle Rio Grande, Texas, Housing Finance Corporation, S/F Revenue Bonds, FLOATS, AMT, Series 709, 1.28% due 8/02/2004 (d) 4,860 10,395 Municipal Securities Trust Certificates, Revenue Refunding Bonds, VRDN, Series 2001-134, Class A, 1.25% due 5/15/2010 (d)(e) 10,395 2,000 North Central Texas, Health Facility Development Corporation Revenue Bonds (Methodist Hospitals--Dallas), VRDN, Series B, 1.15% due 10/01/2015 (d)(f) 2,000 North Texas Higher Education Authority Inc., Student Loan Revenue Bonds, VRDN, AMT (a)(d): 12,800 Series C, 1.20% due 4/01/2020 12,800 13,700 Series F, 1.20% due 4/01/2020 13,700 North Texas Higher Education Authority Inc., Student Loan Revenue Refunding Bonds, VRDN, AMT (d): 26,000 1.20% due 12/01/2032 26,000 29,000 Series A, 1.20% due 4/01/2005 29,000 5,000 Series A, 1.20% due 4/01/2020 5,000 3,000 North Texas Thruway Authority, Dallas, North Thruway Systems, Revenue Refunding Bonds, VRDN, Series II-R-166, 1.23% due 1/01/2016 (c)(d) 3,000 5,000 Northside, Texas, Independent School District, GO, VRDN, Series B, 1.27% due 8/01/2033 (d) 5,000 Panhandle-Plains, Texas, Higher Education Authority Incorporated, Student Loan Revenue Bonds, VRDN, AMT, Series A (d): 9,000 1.20% due 6/01/2021 9,000 13,700 1.20% due 6/01/2025 13,700
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Texas $ 4,700 Panhandle-Plains, Texas, Higher Education Authority Incorporated, Student (concluded) Loan Revenue Refunding Bonds, VRDN, AMT, Series A, 1.20% due 6/01/2008 (d) $ 4,700 5,000 Pasadena, Texas, Independent School District, GO, VRDN, Series A, 1.35% due 4/01/2004 (d) 5,000 17,335 Port Arthur, Texas, Navigation District, Environmental Facilities Revenue Refunding Bonds (Motiva Enterprises Project), VRDN, AMT, 1.40% due 12/01/2027 (d) 17,335 10,000 Port Arthur, Texas, Navigation District, Industrial Development Corporation, Exempt Facilities Revenue Bonds (Air Products and Chemicals Project), VRDN, AMT, 1.40% due 4/01/2036 (d) 10,000 Port Arthur, Texas, Navigation District Revenue Bonds, VRDN, AMT (d): 20,000 (BASF Corporation Project), 1.30% due 4/01/2033 20,000 10,000 Multi-Mode (Atofina Petrochemicals), Series B, 1.25% due 4/01/2027 10,000 19,200 Port Corpus Christi, Texas, Industrial Development Corporation, Environmental Facilities Revenue Bonds (Citgo Petroleum Corporation Project), VRDN, AMT, 1.20% due 8/01/2028 (d) 19,200 50,000 Port Corpus Christi, Texas, Nueces County Solid Waste Disposal Revenue Refunding Bonds (Flint Hills Resources), VRDN, AMT, Series A, 1.55% due 7/01/2029 (d) 50,000 10,000 San Antonio, Texas, Hotel Occupancy Revenue Bonds, FLOATS, Series SG-51, 1.21% due 8/15/2019 (d) 10,000 12,000 San Antonio, Texas, Water System, CP, 1% due 4/09/2003 12,000 2,200 South Texas Higher Education Authority Incorporated Revenue Bonds, VRDN, AMT, 1.20% due 12/01/2027 (d)(f) 2,200 7,200 Southeast Texas Housing Finance Corporation, Revenue Refunding Bonds, Series R-3, 1.152% due 3/11/2004 7,200 45,000 Texas State, College Student Loan, GO, Refunding, 1.125% due 7/01/2003 45,000 50,000 Texas State Department of Housing and Community Affairs, Residential Mortgage Revenue Bonds, AMT, Series B, 1.25% due 10/01/2003 50,000 9,195 Texas State, GO, Refunding, FLOATS, Series 657, 1.21% due 4/01/2010 (d) 9,195 107,840 Texas State, TRAN, 2.75% due 8/29/2003 108,545 5,530 Texas State University System Financing Revenue Refunding Bonds, ROCS, Series II-R-1011, 1.23% due 3/15/2019 (d)(e) 5,530 5,770 Travis County, Texas, Housing Finance Corporation, S/F Mortgage Revenue Bonds, Series 2001-1, 1.094% due 4/10/2003 5,770 4,200 West Side Calhoun County, Texas, Navigation District Sewer and Solid Waste District Revenue Bonds (BP Chemicals Inc. Project), VRDN, AMT, 1.20% due 4/01/2031 (d) 4,200 Utah--0.7% 20,000 Intermountain Power Agency, Utah, CP, 1.10% due 4/09/2003 20,000 21,100 Utah County, Utah, Hospital Revenue Refunding Bonds (IHC Health Services Inc.), VRDN, Series C, 1.15% due 5/15/2035 (d) 21,100 20,000 Utah State Board of Regents, Student Loan Revenue Bonds, VRDN, AMT, Series C, 1.15% due 11/01/2013 (a)(d) 20,000 12,500 Weber County, Utah, Hospital Revenue Bonds (IHC Health Services), VRDN, Series A, 1.15% due 2/15/2031 (d) 12,500 Vermont--0.0% 3,460 Vermont HFA, S/F Revenue Bonds, VRDN, AMT, Series 16 A, 1.28% due 5/01/2032 (d)(e) 3,460
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face State Amount Issue Value Virginia--1.2% $ 6,000 Metropolitan Washington D.C., Airport Authority System Revenue Bonds, ROCS, Series II-R-195, 1.27% due 10/01/2032 (c)(d) $ 6,000 56,000 Metropolitan Washington D.C., CP, 1.10% due 4/07/2003 56,000 66,400 Norfolk, Virginia, IDA, Revenue Bonds (Pooled Financing Program-Sentara), CP, 1.03% due 4/10/2003 66,400 3,320 Virginia State, GO, Refunding, ROCS, Series II-R-170, 1.23% due 6/01/2015 (d) 3,320 Washington-- 20,000 ABN Amro Munitops Certificates Trust, Seattle, Washington, GO, VRDN, 2.0% Series 1998-16, 1.22% due 10/04/2006 (d)(f) 20,000 22,900 Clark County, Washington, Public Utility District Number 001, Generating System Revenue Refunding Bonds, MSTR, VRDN, Series SGA-118, 1.20% due 1/01/2025 (d)(e) 22,900 14,810 King County, Washington, Sewer Revenue Refunding Bonds, FLOATS, Series 554, 1.21% due 7/01/2009 (c)(d) 14,810 4,995 Port Seattle, Washington, Revenue Bonds, MERLOTS, AMT, Series B 04, 1.31% due 9/01/2015 (d) 4,995 24,700 Seattle, Washington, Municipal Light and Power Revenue Bonds, RAN, 2.50% due 11/21/2003 24,857 4,945 Snohomish County, Washington, GO, ROCS, Series II-R-1059, 1.23% due 12/01/2020 (d)(f) 4,945 14,105 Tacoma, Washington, Water Revenue Refunding Bonds, FLOATS, Series 555, 1.21% due 12/01/2009 (c)(d) 14,105 15,075 Washington State, GO, PUTTERS, Series 333, 1.30% due 12/01/2014 (d)(f) 15,075 12,985 Washington State, GO, Refunding, MERLOTS, Series A57, 1.26% due 1/01/2011 (d)(f) 12,985 Washington State Housing Finance Commission, M/F Housing Revenue Bonds, VRDN, AMT (d): 6,400 (Arbors on the Park Project), 1.30% due 10/01/2024 6,400 9,695 (Courtside Apartments Project), 1.25% due 1/01/2026 9,695 14,070 Washington State, Motor Vehicle Fuel Tax, Municipal Securities Trust Certificates, GO, VRDN, Series 2001-112, Class A, 1.20% due 1/07/2021 (d) 14,070 Washington State Public Power Supply Systems, Electric Revenue Refunding Bonds, VRDN (d)(f): 8,700 (Project Number 2), Series 2A-1, 1.10% due 7/01/2012 8,700 6,500 (Project Number 2), Series 2A-2, 1.10% due 7/01/2012 6,500 4,600 (Project Number 3), Series 3-A, 1.07% due 7/01/2018 4,600 24,910 Washington State Public Power Supply Systems, Revenue Refunding Bonds (Nuclear Project Number 1), VRDN, Series 1A-2, 1.10% due 7/01/2017 (d) 24,910 West Virginia-- 10,695 ABN Amro Munitops Certificates Trust, West Virginia State, GO, VRDN, 0.2% Series 2000-12, 1.23% due 6/04/2008 (d)(f) 10,695 11,220 Hancock County, West Virginia, County Commission, IDR, Refunding (The Boc Group Inc. Project), VRDN, 1.17% due 8/01/2005 (d) 11,220
MASTER TAX-EXEMPT TRUST SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONCLUDED) (IN THOUSANDS)
Face State Amount Issue Value Wisconsin-- $ 16,000 Carlton, Wisconsin, PCR, Refunding (Wisconsin Power and Light Company 2.1% Project), VRDN, Series B, 1.55% due 9/01/2005 (d) $ 16,000 14,850 Eagle Tax-Exempt Trust, Wisconsin Ball Park, VRDN, Series 98, Class 4901, 1.23% due 12/15/2026 (d) 14,850 350 Eagle Tax-Exempt Trust, Wisconsin Housing and Economic Development, VRDN, Series 94C, Class 4901, 1.23% due 9/01/2015 (d) 350 4,235 Hartland, Wisconsin, IDR (Commercial Communications Inc. Project), VRDN, AMT, 1.40% due 8/01/2009 (d) 4,235 50,000 Milwaukee, Wisconsin, RAN, Series B, 2.75% due 8/28/2003 50,268 19,000 Pleasant Prairie, Wisconsin, Pollution Revenue Refunding Bonds (Wisconsin Electric Power Company), VRDN, Series C, 1.45% due 9/01/2030 (d) 19,000 7,775 Wisconsin Housing and Economic Development Authority, Home Ownership Revenue Refunding Bonds, VRDN, AMT, Series E, 1.25% due 3/01/2028 (d) 7,775 10,400 Wisconsin State, CP, Series 2000A, 1.05% due 4/11/2003 10,400 34,935 Wisconsin State, GO, CP, 1.15% due 5/21/2003 34,935 16,000 Wisconsin State Petroleum Inspection Fee Revenue Bonds, CP, Series 2002, 1.05% due 4/04/2003 16,000 Wisconsin State Transportation Revenue Bonds, CP: 26,500 1.12% due 4/04/2003 26,500 12,670 1.15% due 5/29/2003 12,670 14,050 Wisconsin State Transportation Revenue Bonds, ROCS, Series II-R-1021, 1.23% due 7/01/2021 (c)(d) 14,050 Wyoming--0.6% 12,960 Lincoln County, Wyoming, PCR, Refunding (Pacificorp Projects), VRDN, 1.25% due 11/01/2024 (a)(d) 12,960 16,960 Sweetwater County, Wyoming, PCR, Refunding (Pacificorp Project), VRDN, 1.25% due 11/01/2024 (a)(d) 16,960 35,000 Wyoming State Education Fund, TRAN, 2.50% due 6/27/2003 35,077 Puerto Rico-- 33,380 Puerto Rico Commonwealth TRAN, 2.50% due 7/30/2003 33,492 0.3% Total Investments (Cost--$10,586,396*)--100.0% 10,586,396 Other Assets Less Liabilities--0.0% 4,783 ----------- Net Assets--100.0% $10,591,179 =========== (a)AMBAC Insured. (b)Prerefunded. (c)FGIC Insured. (d)The interest rate is subject to change periodically based upon prevailing market rates. The interest rate shown is the rate in effect at March 31, 2003. (e)FSA Insured. (f)MBIA Insured. (g)XL Captial Insured. (h)FHLMC Collateralized. *Cost for Federal income tax purposes. See Notes to Financial Statements.
MASTER TAX-EXEMPT TRUST STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 2003 Assets: Investments, at value (identified cost--$10,586,395,571) $10,586,395,571 Cash 5,023 Receivables: Interest $ 45,934,952 Securities sold 16,471 45,951,423 --------------- Prepaid registration fees and other assets 712,132 --------------- Total assets 10,633,064,149 --------------- Liabilities: Payables: Securities purchased 40,000,000 Investment adviser 1,729,476 41,729,476 --------------- Accrued expenses and other liabilities 155,290 --------------- Total liabilities 41,884,766 --------------- Net Assets $10,591,179,383 =============== Net Assets Consist of: Investors' capital $10,591,179,383 --------------- Net assets $10,591,179,383 =============== See Notes to Financial Statements.
MASTER TAX-EXEMPT TRUST STATEMENT OF OPERATIONS FOR THE PERIOD FEBRUARY 13, 2003++ TO MARCH 31, 2003 Investment Income: Interest and amortization of premium and discount earned $ 16,809,536 Expenses: Investment advisory fees $ 2,620,639 Accounting services 185,213 Custodian fees 35,173 Trustees' fees and expenses 9,688 Pricing fees 8,578 Professional fees 750 Other 10,753 --------------- Total expenses 2,870,794 --------------- Investment income--net 13,938,742 --------------- Realized Gain on Investments--Net 291,802 --------------- Net Increase in Net Assets Resulting from Operations $ 14,230,544 =============== ++Commencement of operations. See Notes to Financial Statements.
MASTER TAX-EXEMPT TRUST STATEMENT OF CHANGES IN NET ASSETS
For the Period February 13, 2003++ to March 31, 2003 Increase (Decrease) in Net Assets: Operations: Investment income--net $ 13,938,742 Realized gain on investments--net 291,802 --------------- Net increase in net assets resulting from operations 14,230,544 --------------- Capital Transactions: Proceeds from contributions 3,757,178,224 Fair value of net asset contributions 10,591,437,724 Fair value of withdrawals (3,771,767,109) --------------- Net increase in net assets derived from capital transactions 10,576,848,839 --------------- Net Assets: Total increase in net assets 10,591,079,383 Beginning of period 100,000 --------------- End of period $10,591,179,383 =============== ++Commencement of operations. See Notes to Financial Statements.
MASTER TAX-EXEMPT TRUST FINANCIAL HIGHLIGHTS
For the Period February 13, 2003++ The following ratios have been derived from to March 31, information provided in the financial statements. 2003 Total Investment Return: .68%* =============== Ratios to Average Net Assets: Expenses .21%* =============== Investment income and realized gain on investments--net 1.04%* =============== Supplemental Data: Net assets, end of period (in thousands) $ 10,591,179 =============== *Annualized. ++Commencement of operations. See Notes to Financial Statements.
MASTER TAX-EXEMPT TRUST NOTES TO FINANCIAL STATEMENTS 1. Significant Accounting Policies: Master Tax-Exempt Trust (the "Trust") is registered under the Investment Company Act of 1940 and is organized as a Delaware business trust. The Declaration of Trust permits the Trustees to issue nontransferable interest in the Trust, subject to certain limitations. On February 13, 2003, the Trust received all of the assets of CMA Tax-Exempt Fund, a registered investment company that converted to a master/feeder structure. The Trust's financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. The following is a summary of significant accounting policies followed by the Trust. (a) Valuation of investments--Investments are valued at amortized cost, which approximates market value. For the purpose of valuation, the maturity of a variable rate demand instrument is deemed to be the demand notice payment period. In the case of a floating rate instrument, the remaining maturity is the next coupon date on which the interest rate is to be adjusted. (b) Income taxes--The Trust is classified as a partnership for Federal income tax purposes. As such, each investor in the Trust is treated as owner of its proportionate share of the net assets, income, expenses and realized and unrealized gains and losses of the Trust. Accordingly, as a "pass through" entity, the Trust pays no income dividends or capital gains distributions. Therefore, no Federal income tax provision is required. It is intended that the Trust's assets will be managed so an investor in the Trust can satisfy the requirements of subchapter M of the Internal Revenue Code. (c) Security transactions and investment income--Security transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Interest income (including amortization of premium and discount) is recognized on the accrual basis. 2. Investment Advisory Agreement and Transactions with Affiliates: The Trust has entered into an Investment Advisory Agreement with Fund Asset Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc. ("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited partner. FAM is responsible for the management of the Trust's portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Trust. For such services, the Trust pays a monthly fee based upon the average daily value of the Trust's net assets at the following annual rates: .25% of the Trust's average daily net assets not exceeding $500 million; ..175% of the average daily net assets in excess of $500 million but not exceeding $1 billion; and .125% of the average daily net assets in excess of $1 billion. For the period February 13, 2003 to March 31, 2003, the Trust reimbursed FAM $30,048 for certain accounting services. Certain officers and/or trustees of the Trust are officers and/or directors of FAM, PSI, and/or ML & Co. MASTER TAX-EXEMPT TRUST INDEPENDENT AUDITORS' REPORT To the Investors and Board of Trustees of Master Tax-Exempt Trust: We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Master Tax- Exempt Trust as of March 31, 2003, and the related statements of operations and changes in net assets, and the financial highlights for the period February 13, 2003 (commencement of operations) through March 31, 2003. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master Tax-Exempt Trust as of March 31, 2003, the results of its operations, the changes in its net assets, and its financial highlights for the period February 13, 2003 through March 31, 2003, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Princeton, New Jersey May 21, 2003 CMA TAX-EXEMPT FUND OFFICERS AND TRUSTEES
Number of Portfolios Other in Fund Director- Position(s) Length Complex ships Held of Time Overseen by Held by Name, Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee Interested Trustee Terry K. Glenn* President 1999 to President and Chairman of Merrill Lynch 118 Funds None P.O. Box 9011 and present Investment Managers, L.P. ("MLIM")/Fund 162 Portfolios Princeton, Trustee and Asset Management, L.P. ("FAM")-Advised NJ 08543-9011 1988 to Funds since 1999; Chairman (Americas Age: 62 present Region) of MLIM from 2000 to 2002; Executive Vice President of MLIM and FAM (which terms as used herein include their corporate predecessors) from 1983 to 2002; President of FAM Distributors, Inc. ("FAMD") from 1986 to 2002 and Director thereof from 1991 to 2002; Executive Vice President and Director of Princeton Services, Inc. ("Princeton Services") from 1993 to 2002; President of Princeton Administrators, L.P. from 1989 to 2002; Director of Financial Data Services, Inc. from 1985 to 2002. *Mr. Glenn is a director, trustee or member of an advisory board of certain other investment companies for which FAM or MLIM acts as investment adviser. Mr. Glenn is an "interested person," as described in the Investment Company Act, of the Fund based on his former positions with FAM, MLIM, FAMD, Princeton Services and Princeton Administrators, L.P. The Trustee's term is unlimited. Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. As Fund President, Mr. Glenn serves at the pleasure of the Board of Trustees. Number of Portfolios Other in Fund Director- Position(s) Length Complex ships Held of Time Overseen by Held by Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Trustee Trustee Independent Trustees Ronald W. Forbes Trustee 1988 to Professor Emeritus of Finance, School of 45 Funds None P.O. Box 9095 present Business, State University of New York at 51 Portfolios Princeton, Albany since 2000 and Professor thereof NJ 08543-9095 from 1989 to 2000; International Consultant, Age: 62 Urban Institute from 1995 to 1999. Cynthia A. Montgomery Trustee 1994 to Professor, Harvard Business School since 45 Funds Unum P.O. Box 9095 present 1989; Director, Unum Provident Corporation 51 Portfolios Provident Princeton, since 1990; Director, Newell Rubbermaid, Corporation; NJ 08543-9095 Inc. since 1995. Newell Age: 50 Rubbermaid, Inc.
CMA TAX-EXEMPT FUND OFFICERS AND TRUSTEES (CONTINUED) Number of Portfolios Other in Fund Director- Position(s) Length Complex ships Held of Time Overseen by Held by Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Trustee Trustee Independent Trustees (concluded) Charles C. Reilly Trustee 1990 to Self-employed financial consultant since 45 Funds None P.O. Box 9095 present 1990. 51 Portfolios Princeton, NJ 08543-9095 Age: 71 Kevin A. Ryan Trustee 1992 to Founder and Director Emeritus of The 45 Funds None P.O. Box 9095 present Boston University Center for the 51 Portfolios Princeton, Advancement of Ethics and Character; NJ 08543-9095 Professor of Education at Boston Age: 70 University from 1982 to 1999 and Professor Emeritus since 1999. Roscoe S. Suddarth Trustee 2000 to President, Middle East Institute from 45 Funds None P.O. Box 9095 present 1995 to 2001; Foreign Service Officer, 51 Portfolios Princeton, United States Foreign Service from 1961 NJ 08543-9095 to 1995; Career Minister from 1989 to Age: 67 1995; Deputy Inspector General, U.S. Department of State from 1991 to 1994; U.S. Ambassador to the Hashemite Kingdom of Jordan from 1987 to 1990. Richard R. West Trustee 1988 to Dean Emeritus of New York University, 45 Funds Bowne & Co., P.O. Box 9095 present Leonard N. Stern School of Business 51 Portfolios Inc.; Vornado Princeton, Administration since 1994. Operating NJ 08543-9095 Company; Age: 65 Vornado Realty Trust; Alexander's, Inc. Edward D. Zinbarg Trustee 2000 to Self-employed financial consultant since 45 Funds None P.O. Box 9095 present 1994. 51 Portfolios Princeton, NJ 08543-9095 Age: 68 *The Trustee's term is unlimited. Directors serve until their resignation, removal, or death, or until December 31 of the year in which they turn 72.
CMA TAX-EXEMPT FUND OFFICERS AND TRUSTEES (CONCLUDED)
Position(s) Length Held of Time Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Fund Officers Donald C. Burke Vice 1993 to First Vice President of MLIM and FAM since 1997 and Treasurer thereof P.O. Box 9011 President present since 1999; Senior Vice President and Treasurer of Princeton Services Princeton, and and since 1999; Vice President of FAMD since 1999; Director of MLIM Taxation NJ 08543-9011 Treasurer 1999 to since 1990. Age: 42 present Kenneth A. Jacob Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fixed Income) P.O. Box 9011 Vice present of MLIM from 1997 to 2000. Princeton, President NJ 08543-9011 Age: 51 John M. Loffredo Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fixed Income) P.O. Box 9011 Vice present of MLIM from 1998 to 2000. Princeton, President NJ 08543-9011 Age: 39 Phillip S. Gillespie Secretary 2000 to First Vice President of MLIM since 2001; Director (Legal Advisory) of MLIM P.O. Box 9011 present from 2000 to 2001; Vice President of MLIM from 1999 to 2000; Attorney Princeton, associated with MLIM since 1998; Assistant General Counsel of Chancellor NJ 08543-9011 LGT Asset Management, Inc. from 1997 to 1998. Age: 39 *Officers of the Fund serve at the pleasure of the Board of Trustees.
Further information about the Fund's Officers and Trustees is available in the Fund's Statement of Additional Information, which can be obtained without charge by calling 1-800-MER-FUND. Custodian State Street Bank and Trust Company P.O. Box 351 Boston, MA 02101 Transfer Agent Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, FL 32246-6484 800-221-7210++ ++For inquiries regarding your CMA account, call 800-CMA-INFO or 800-262-4636. Item 2 - Did registrant adopt a code of ethics, as of the end of the period covered by this report, that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party? If not, why not? Briefly describe any amendments or waivers that occurred during the period. State here if code of ethics/amendments/waivers are on website and give website address-. State here if fund will send code of ethics to shareholders without charge upon request--N/A (not answered until July 15, 2003 and only annually for funds) Item 3 - Did the registrant's board of directors determine that the registrant either: (i) has at least one audit committee financial expert serving on its audit committee; or (ii) does not have an audit committee financial expert serving on its audit committee? If yes, disclose name of financial expert and whether he/she is "independent," (fund may, but is not required, to disclose name/independence of more than one financial expert) If no, explain why not. -N/A (not answered until July 15, 2003 and only annually for funds) Item 4 - Disclose annually only (not answered until December 15, 2003) (a) Audit Fees - Disclose aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. N/A. (b) Audit-Related Fees - Disclose aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A. (c) Tax Fees - Disclose aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A. (d) All Other Fees - Disclose aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A. (e)(1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. N/A. (e)(2)Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. N/A. (f) If greater than 50%, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. N/A. (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. N/A. (h) Disclose whether the registrant's audit committee has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. N/A. Item 5 - If the registrant is a listed issuer as defined in Rule 10A- 3 under the Exchange Act, state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant's audit committee in Section 3(a)(58)(B) of the Exchange Act, so state. If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act regarding an exemption from the listing standards for audit committees. (Listed issuers must be in compliance with the new listing rules by the earlier of their first annual shareholders meeting after January 2004, or October 31, 2004 (annual requirement)) Item 6 - Reserved Item 7 - For closed-end funds that contain voting securities in their portfolio, describe the policies and procedures that it uses to determine how to vote proxies relating to those portfolio securities. N/A (not answered until July 1, 2003) Item 8--Reserved Item 9(a) - Disclose the conclusions of the registrant's principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, about the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR 270.30a-2(c))) based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph. N/A (not answered until July 15, 2003 and only annually for funds) Item 9(b)--There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Item 10 - Exhibits 10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or amendments/waivers is on website or offered to shareholders upon request without charge. N/A. 10(b) - Attach certifications pursuant to Section 302 of the Sarbanes-Oxley Act. Attached hereto. Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CMA Tax-Exempt Fund By: _/s/ Terry K. Glenn_______ Terry K. Glenn, President of CMA Tax-Exempt Fund Date: May 21, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: _/s/ Terry K. Glenn________ Terry K. Glenn, President of CMA Tax-Exempt Fund Date: May 21, 2003 By: _/s/ Donald C. Burke________ Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund Date: May 21, 2003 Attached hereto as an exhibit are the certifications pursuant to Section 906 of the Sarbanes-Oxley Act. EX-99.CERT 3 ex99cert.txt EX-99 CERT EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Terry K. Glenn, President of CMA Tax-Exempt Fund, certify that: 1. I have reviewed this report on Form N-CSR of CMA Tax-Exempt Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. Date: May 21, 2003 /s/ Terry K. Glenn Terry K. Glenn, President of CMA Tax-Exempt Fund EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund, certify that: 1. I have reviewed this report on Form N-CSR of CMA Tax-Exempt Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. Date: May 21, 2003 /s/ Donald C. Burke Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund Exhibit 99.1350CERT Certification Pursuant to Section 906 of the Sarbanes Oxley Act I, Terry K. Glenn, President of CMA Tax-Exempt Fund (the "Fund"), certify that: 1. The N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: May 21, 2003 /s/ Terry K. Glenn Terry K. Glenn, President of CMA Tax-Exempt Fund Exhibit 99.1350CERT Certification Pursuant to Section 906 of the Sarbanes Oxley Act I, Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund (the "Fund"), certify that: 1. The N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: May 21, 2003 /s/ Donald C. Burke Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund -----END PRIVACY-ENHANCED MESSAGE-----