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, Chief Executive
Officer, 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: 12/31/05
Date of reporting period: 01/01/05 - 03/31/05
Item 1 - Schedule of Investments
The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of March 31, 2005 (in Thousands)
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Face
Amount Municipal Bonds Value
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Massachusetts - 129.4% Massachusetts State College Building Authority, Project Revenue Refunding Bonds,
Series B (i):
$ 1,300 4.61%* due 5/01/2021 $ 598
825 5.50% due 5/01/2039 944
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Massachusetts State Development Finance Agency, Education Revenue Bonds:
1,100 (Belmont Hill School), 5% due 9/01/2031 1,123
400 (Middlesex School Project), 5% due 9/01/2033 407
250 (Xaverian Brothers High School), 5.65% due 7/01/2029 257
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Massachusetts State Development Finance Agency, First Mortgage Revenue Bonds,
Series A:
855 (Edgecombe Project), 6.75% due 7/01/2021 892
850 (Overlook Communities Inc.), 6.125% due 7/01/2024 837
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1,250 Massachusetts State Development Finance Agency, First Mortgage Revenue Refunding
Bonds (Symmes Life Care, Inc. - Brookhaven at Lexington), Series A, 5%
due 3/01/2035 (l) 1,244
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825 Massachusetts State Development Finance Agency, Resource Recovery Revenue Bonds
(Ogden Haverhill Associates), AMT, Series A, 6.70% due 12/01/2014 893
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Massachusetts State Development Finance Agency Revenue Bonds:
500 (College of Pharmacy and Allied Health Services), Series D, 5% due 7/01/2027 511
400 (Franklin W. Olin College), Series B, 5.25% due 7/01/2033 (i) 418
1,000 (Massachusetts College of Pharmacy and Health Sciences), 5.75% due 7/01/2033 1,036
425 (Massachusetts Council of Human Service Providers, Inc.), Series C, 6.60%
due 8/15/2029 410
400 (Suffolk University), 5.75% due 7/01/2019 418
500 (Volunteers of America - Ayer Limited Partnership), AMT, Series A, 6.20%
due 2/20/2046 (k) 540
700 (WGBH Educational Foundation), Series A, 5.375% due 1/01/2042 (a) 737
1,100 (WGBH Educational Foundation), Series A, 5.75% due 1/01/2042 (a) 1,308
600 (Western New England College), 5.875% due 12/01/2022 630
540 (The Wheeler School), 6.50% due 12/01/2029 566
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Massachusetts State Development Finance Agency, Revenue Refunding Bonds:
1,500 (Boston University), Series P, 5.45% due 5/15/2059 1,599
225 (Odd Fellows Home of Massachusetts), 6.25% due 1/01/2015 209
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Massachusetts State Health and Educational Facilities Authority, Revenue Bonds:
800 (Baystate Medical Center), Series E, 6% due 7/01/2026 (e) 845
1,000 (Baystate Medical Center), Series F, 5.75% due 7/01/2033 1,052
350 (Berkshire Health System), Series E, 6.25% due 10/01/2031 364
100 (Capital Asset Program), VRDN, Series E, 2.22% due 1/01/2035 (h) 100
1,500 (Daughters of Charity-Carney), Series D, 6.10% due 7/01/2006 (g) 1,527
1,350 (Harvard University), Series FF, 5.125% due 7/15/2037 1,400
1,000 (Milford-Whitinsville Hospital), Series D, 6.35% due 7/15/2032 1,039
1,000 (Simmons College), Series F, 5% due 10/01/2033 (c) 1,029
230 (University of Massachusetts), Series C, 5.125% due 10/01/2034 (c) 238
1,355 (Wheaton College), Series D, 6% due 1/01/2018 1,433
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Massachusetts State Health and Educational Facilities Authority, Revenue Refunding
Bonds:
885 (Bay Cove Human Services Issue), Series A, 5.90% due 4/01/2028 845
1,000 (Berkshire Health System), Series D, 6% due 10/01/2019 (f) 1,034
1,000 (Boston College), Series N, 5.125% due 6/01/2037 1,030
500 (Christopher House), Series A, 6.875% due 1/01/2029 497
800 (Covenant Health System), 6% due 7/01/2022 853
400 (Covenant Health System), 6% due 7/01/2031 421
495 (Learning Center For Deaf Children), Series C, 6.125% due 7/01/2029 479
500 (Massachusetts Institute of Technology), Series L, 5% due 7/01/2023 543
500 (Milton Hospital), Series C, 5.50% due 7/01/2016 499
100 (Partners Healthcare System), Series A, 5.375% due 7/01/2024 (f) 105
1,000 (Partners Healthcare System), Series C, 5.75% due 7/01/2032 1,082
395 (Valley Regional Health System), Series C, 5.75% due 7/01/2018 (b) 404
1,750 (Wellesley College), 5% due 7/01/2033 1,802
1,000 (Youville House - FHA Insured Project), Series A, 6.25% due 2/15/2007 (d)(g) 1,079
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750 Massachusetts State Industrial Finance Agency, Health Care Facility Revenue Bonds
(Age Institute of Massachusetts Project), 8.05% due 11/01/2025 750
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1,500 Massachusetts State Industrial Finance Agency, PCR (General Motors Corporation),
5.55% due 4/01/2009 1,500
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400 Massachusetts State Industrial Finance Agency, Revenue Bonds (Wentworth Institute of
Technology), 5.75% due 10/01/2028 413
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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)
PCR Pollution Control Revenue Bonds
VRDN Variable Rate Demand Notes
The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of March 31, 2005 (in Thousands)
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Face
Amount Municipal Bonds Value
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$ 340 Massachusetts State Industrial Finance Agency, Senior Living Facility Revenue Bonds
(Forge Hill Project), AMT, 6.75% due 4/01/2030 $ 320
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1,000 Massachusetts State Water Pollution Abatement Trust, Pool Program Revenue Bonds,
Series 10, 5% due 8/01/2029 1,036
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500 Massachusetts State Water Resource Authority, General Revenue Refunding Bonds,
Series A, 5.75% due 8/01/2010 (c)(g) 552
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1,000 Rail Connections, Inc., Massachusetts, Capital Appreciation Revenue Bonds (Route 128
Parking Garage), Series B, 6.53%* due 7/01/2009 (g)(j) 436
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1,000 University of Massachusetts Building Authority, Project Revenue Refunding Bonds,
Senior Series 04-1, 5.125% due 11/01/2034 (a) 1,041
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Total Municipal Bonds (Cost - $39,624) - 129.4% 41,325
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Shares
Held Short-Term Securities
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-+ CMA Massachusetts Municipal Money Fund ** -+
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Total Investments (Cost - $39,624***) - 129.4% 41,325
Other Assets Less Liabilities - 1.9% 606
Preferred Shares, at Redemption Value - (31.3%) (10,003)
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Net Assets Applicable to Common Shares - 100.0% $ 31,928
==========
(a) AMBAC Insured.
(b) Connie Lee Insured.
(c) FGIC Insured.
(d) FHA Insured.
(e) FSA Insured.
(f) MBIA Insured.
(g) Prerefunded.
(h) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features, which qualify it as a
short-term security. The rate disclosed is that currently in effect. This
rate changes periodically based upon prevailing market rates.
(i) XL Capital Insured.
(j) ACA Insured.
(k) GNMA Collateralized.
(l) Radian Insured.
+ Amount is less than $1,000.
* Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of the purchase of the Trust.
** Investments in companies considered to be an affiliate of the Trust (such
companies are defined as "Affiliated Companies" in Section 2(a)(3) of the
Investment Company Act of 1940) were as follows:
(in Thousands)
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Dividend
Affiliate Net Activity Income
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CMA Massachusetts Municipal Money Fund --# --
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# Amount is less than $1,000.
*** The cost and unrealized appreciation (depreciation) of investments as of
March 31, 2005, as computed for federal income tax purposes, were as
follows:
(in Thousands)
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Aggregate cost $ 39,627
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Gross unrealized appreciation $ 1,790
Gross unrealized depreciation (92)
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Net unrealized appreciation $ 1,698
========
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
Chief Executive Officer
The Massachusetts Health & Education Tax-Exempt Trust
Date: May 23, 2005
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
Chief Executive Officer
The Massachusetts Health & Education Tax-Exempt Trust
Date: May 23, 2005
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Financial Officer
The Massachusetts Health & Education Tax-Exempt Trust
Date: May 23, 2005