UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-07660
Name of Fund: The Massachusetts Health & Education Tax-Exempt Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: John M. Loffredo, President, The
Massachusetts Health & Education Tax-Exempt Trust, 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: 12/31/04
Date of reporting period: 07/01/04 - 09/30/04
Item 1 - Schedule of Investments
The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2004 (unaudited) (in Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
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Massachusetts - 128.9%
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Massachusetts State College Building Authority, Project Revenue Refunding Bonds,
Series B:(i)
AAA Aaa $ 1,300 4.61%** due 5/01/2021 $ 598
AAA Aaa 825 5.50% due 5/01/2039 931
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Massachusetts State Development Finance Agency, Revenue Bonds:
AAA Aaa 400 (Franklin W. Olin College), Series B, 5.25% due 7/01/2033(i) 415
BBB NR* 1,000 (Massachusetts College of Pharmacy and Health Sciences), 5.75% due 7/01/2033 1,034
NR* NR* 425 (Massachusetts Council of Human Service Providers, Inc.), Series C, 6.60% due
8/15/2029 382
BBB Baa2 400 (Suffolk University), 5.75% due 7/01/2019 419
AAA Aaa 700 (WGBH Educational Foundation), Series A, 5.375% due 1/01/2042(a) 741
AAA Aaa 1,100 (WGBH Educational Foundation), Series A, 5.75% due 1/01/2042(a) 1,287
BBB NR* 600 (Western New England College), 5.875% due 12/01/2022 631
BBB- NR* 540 (The Wheeler School), 6.50% due 12/01/2029 566
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Massachusetts State Development Finance Agency, Education Revenue Bonds:
NR* NR* 1,100 (Belmont Hill School), 5% due 9/01/2031 1,114
NR* A1 400 (Middlesex School Project), 5% due 9/01/2033 404
NR* Baa2 250 (Xaverian Brothers High School), 5.65% due 7/01/2029 256
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BBB- NR* 855 Massachusetts State Development Finance Agency, First Mortgage Revenue Bonds 894
(Edgecombe Project), Series A, 6.75% due 7/01/2021
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BBB NR* 825 Massachusetts State Development Finance Agency, Resource Recovery Revenue Bonds 892
(Ogden Haverhill Associates), AMT, Series A, 6.70% due 12/01/2014
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Massachusetts State Development Finance Agency, Revenue Refunding Bonds:
BBB+ A3 1,500 (Boston University), Series P, 5.45% due 5/15/2059 1,558
NR* NR* 240 (Odd Fellows Home of Massachusetts), 6.25% due 1/01/2015 223
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Massachusetts State Health and Educational Facilities Authority, Revenue Bonds:
AAA Aaa 800 (Bay State Medical Center), Series E, 6% due 7/01/2026(e) 860
A+ A1 1,000 (Bay State Medical Center), Series F, 5.75% due 7/01/2033 1,042
BBB+ NR* 350 (Berkshire Health System), Series E, 6.25% due 10/01/2031 362
NR* VMIG-1 1,000 (Capital Asset Program), VRDN, Series E, 1.64% due 1/01/2035(h) 1,000
AA+ Aaa 1,500 (Daughters of Charity-Carney), Series D, 6.10% due 7/01/2006(g)*** 1,556
AAA Aaa 1,850 (Harvard University), Series FF, 5.125% due 7/15/2037 1,892
BBB- Baa2 1,000 (Milford-Whitinsville Hospital), Series D, 6.35% due 7/15/2032 1,033
AAA Aaa 500 (New England Medical Center Hospitals), Series H, 5% due 5/15/2022(c) 519
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Portfolio Abbreviations
To simplify the listings of The Massachusetts Health & Education Tax-Exempt
Trust's portfolio holdings in the Schedule of Investments, we have abbreviated
the names of many of the securities according to the list below.
AMT Alternative Minimum Tax (subject to)
FHA Federal Housing Administration
PCR Pollution Control Revenue Bonds
VRDN Variable Rate Demand Notes
The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2004 (unaudited) (continued)
(in Thousands)
S&P Moody's Face
Ratings Ratings Amount Municipal Bonds Value
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Massachusetts (concluded)
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AAA Aaa $ 1,000 (Simmons College), Series F, 5% due 10/01/2033(c) $ 1,020
AAA Aaa 230 (University of Massachusetts), Series C, 5.125% due 10/01/2034(c) 237
NR* NR* 1,420 (Wheaton College), Series D, 6% due 1/01/2018*** 1,521
NR* Aa2 1,000 (Youville House - FHA Insured Project), Series A, 6.25% due 2/15/2007(d)(g) 1,116
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Massachusetts State Health and Educational Facilities Authority, Revenue Refunding
Bonds:
AAA Aaa 1,225 (Addison Gilbert Hospital), Series C, 5.75% due 7/01/2023(f) 1,241
NR* Ba2 885 (Bay Cove Human Services Issue), Series A, 5.90% due 4/01/2028 849
AAA Aaa 1,000 (Berkshire Health System), Series D, 6% due 10/01/2019(f) 1,057
AA- Aa3 1,500 (Boston College), Series N, 5.125% due 6/01/2037 1,538
A-1+ VMIG-1 200 (Capital Asset Program), VRDN, Series C, 1.14% due 7/01/2010(f)(h) 200
NR* VMIG-1 600 (Capital Asset Program), VRDN, Series C, 1.62% due 1/01/2035(f)(h) 600
NR* NR* 500 (Christopher House), Series A, 6.875% due 1/01/2029 483
A- NR* 800 (Covenant Health System), 6% due 7/01/2022 854
A- NR* 400 (Covenant Health System), 6% due 7/01/2031 419
BB Ba2 495 (Learning Center For Deaf Children), Series C, 6.125% due 7/01/2029 481
AAA Aaa 500 (Massachusetts Institute of Technology), Series L, 5% due 7/01/2023 549
BBB NR* 500 (Milton Hospital), Series C, 5.50% due 7/01/2016 502
AAA Aaa 100 (Partners Healthcare System), Series A, 5.375% due 7/01/2024(f) 105
AA- Aa3 1,000 (Partners Healthcare System), Series C, 5.75% due 7/01/2032 1,077
AAA NR* 395 (Valley Regional Health System), Series C, 5.75% due 7/01/2018(b) 404
AA+ Aa1 1,750 (Wellesley College), 5% due 7/01/2033 1,786
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NR* NR* 750 Massachusetts State Industrial Finance Agency, Health Care Facility Revenue Bonds 749
(Age Institute of Massachusetts Project), 8.05% due 11/01/2025
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BBB Baa1 1,500 Massachusetts State Industrial Finance Agency, 1,502
PCR (General Motors Corporation), 5.55% due 4/01/2009
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NR* Baa1 400 Massachusetts State Industrial Finance Agency, Revenue Bonds 413
(Wentworth Institute of Technology), 5.75% due 10/01/2028
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NR* NR* 340 Massachusetts State Industrial Finance Agency, Senior Living Facility Revenue Bonds 322
(Forge Hill Project), AMT, 6.75% due 4/01/2030
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AAA Aaa 500 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds, 556
Series A, 5.75% due 8/01/2039 (c)
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A Aaa 1,000 Rail Connections, Inc., Massachusetts, Capital Appreciation Revenue Bonds 435
(Route 128 Parking Garage), Series B, 6.53%** due 7/01/2009(g)(j)
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AAA Aaa 1,000 University of Massachusetts Building Authority, Project Revenue Refunding Bonds, 1,033
Senior Series 04-1, 5.125% due 11/01/2034(a)
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Total Municipal Bonds (Cost - $39,970) - 128.9% 41,658
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Total Investments (Cost - $39,970****) - 128.9% 41,658
Other Assets Less Liabilities - 2.0% 665
Preferred Stocks, at Redemption Value, Including Dividends Payable - (30.9%) (10,003)
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Net Assets Applicable to Common Stock - 100.0% $ 32,320
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The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2004 (unaudited)(concluded)
(in Thousands)
(a) AMBAC Insured.
(b) Connie Lee Insured.
(c) FGIC Insured.
(d) FHA Insured.
(e) FSA Insured.
(f) MBIA Insured.
(g) Prerefunded.
(h) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at September
30, 2004.
(i) XLCA Insured.
(j) ACA Insured.
* Not Rated.
** Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of the purchase by the Trust.
*** Security exempt from registration under Rule 144A of the Securities Act of
1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At September 30, 2004,
the value of these securities amounted to $3,076,928 or 9.5% of total net
assets.
**** The cost and unrealized appreciation/depreciation of investments as of
September 30, 2004, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 39,958
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Gross unrealized appreciation $ 1,800
Gross unrealized depreciation (100)
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Net unrealized appreciation $ 1,700
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Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to the
filing date of this report.
2(b) - There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the last fiscal quarter of the period
covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 3 - Exhibits
Certifications - 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.
The Massachusetts Health & Education Tax-Exempt Trust
By: /s/ John M. Loffredo
---------------------------------
John M. Loffredo,
President
The Massachusetts Health & Education Tax-Exempt Trust
Date: November 19, 2004
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/ John M. Loffredo
---------------------------------
John M. Loffredo
President
The Massachusetts Health & Education Tax-Exempt Trust
Date: November 19, 2004
By: /s/ Donald C. Burke
---------------------------------
Donald C. Burke
Chief Financial Officer
The Massachusetts Health & Education Tax-Exempt Trust
Date: November 19, 2004