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: 07/01/05 - 09/30/05
Item 1 - Schedule of Investments
The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2005 (in Thousands)
Face
Amount Municipal Bonds Value
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Massachusetts - 160.7% $ 825 Massachusetts State College Building Authority, Project Revenue Refunding Bonds,
Series B, 5.50% due 5/01/2039 (i) $ 969
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1,000 Massachusetts State, Consolidated Loan, GO, Series C, 5% due 9/01/2022 1,059
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Massachusetts State Development Finance Agency, Education Revenue Bonds:
1,100 (Belmont Hill School), 5% due 9/01/2031 1,135
400 (Middlesex School Project), 5% due 9/01/2033 412
250 (Xaverian Brothers High School), 5.65% due 7/01/2029 258
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Massachusetts State Development Finance Agency, First Mortgage Revenue Bonds,
Series A:
855 (Edgecombe Project), 6.75% due 7/01/2021 911
850 (Overlook Communities Inc.), 6.125% due 7/01/2024 869
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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) 1,265
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500 Massachusetts State Development Finance Agency, Human Service Provider Revenue
Bonds (Seven Hills Foundation & Affiliates), 5% due 9/01/2035 (l) 513
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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 891
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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 517
500 (Curry College), Series A, 5% due 3/01/2035 (j) 502
400 (Franklin W. Olin College), Series B, 5.25% due 7/01/2033 (i) 424
1,000 (Massachusetts College of Pharmacy and Health Sciences), 5.75% due
7/01/2033 1,053
425 (Massachusetts Council of Human Service Providers, Inc.), Series C, 6.60%
due 8/15/2029 431
500 (Smith College), 5% due 7/01/2035 522
500 (Volunteers of America - Ayer Limited Partnership), AMT, Series A, 6.20%
due 2/20/2046 (k) 556
700 (WGBH Educational Foundation), Series A, 5.375% due 1/01/2042 (a) 748
1,100 (WGBH Educational Foundation), Series A, 5.75% due 1/01/2042 (a) 1,342
600 (Western New England College), 5.875% due 12/01/2012 (g) 636
540 (The Wheeler School), 6.50% due 12/01/2029 573
500 (Williston Northampton School Project), 5% due 10/01/2025 (i) 523
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1,500 Massachusetts State Development Finance Agency, Revenue Refunding Bonds
(Boston University), Series P, 5.45% due 5/15/2059 1,635
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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) 831
1,000 (Baystate Medical Center), Series F, 5.75% due 7/01/2033 1,057
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 at right.
AMT Alternative Minimum Tax (subject to)
GO General Obligation Bonds
PCR Pollution Control Revenue Bonds
VRDN Variable Rate Demand Notes
The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2005 (in Thousands)
Face
Amount Municipal Bonds Value
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$ 350 (Berkshire Health System), Series E, 6.25% due 10/01/2031 $ 371
2,000 (Capital Asset Program), VRDN, Series E, 2.82% due 1/01/2035 (h) 2,000
1,500 (Daughters of Charity-Carney), Series D, 6.10% due 7/01/2006 (g) 1,522
1,350 (Harvard University), Series FF, 5.125% due 7/15/2037 1,413
750 (Milford-Whitinsville Hospital), Series D, 6.35% due 7/15/2032 796
3,000 (Partners Healthcare System), VRDN, Series D-5, 2.79% due 7/01/2017 (h) 3,000
2,000 (Partners Healthcare System), VRDN, Series D-6, 2.82% due 7/01/2017 (h) 2,000
1,000 (Simmons College), Series F, 5% due 10/01/2033 (c) 1,041
230 (University of Massachusetts), Series C, 5.125% due 10/01/2034 (c) 240
1,000 (University of Massachusetts Memorial Healthcare), Series D, 5% due
7/01/2033 995
1,355 (Wheaton College), Series D, 6% due 1/01/2018 1,429
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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 892
1,000 (Boston College), Series N, 5.125% due 6/01/2037 1,044
3,000 (Capital Asset Program), VRDN, Series C, 2.81% due 7/01/2010 (f)(h) 3,000
500 (Christopher House), Series A, 6.875% due 1/01/2029 502
800 (Covenant Health System), 6% due 7/01/2022 863
400 (Covenant Health System), 6% due 7/01/2031 427
495 (Learning Center For Deaf Children), Series C, 6.125% due 7/01/2029 501
500 (Massachusetts Institute of Technology), Series L, 5% due 7/01/2023 554
500 (Milton Hospital), Series, 5.50% due 7/01/2016 505
100 (Partners Healthcare System), Series A, 5.375% due 7/01/2024 (f) 104
500 (Partners Healthcare System), Series C, 5.75% due 7/01/2032 550
395 (Valley Regional Health System), Series C, 5.75% due 7/01/2018 (b) 400
1,500 (Wellesley College), 5% due 7/01/2033 1,559
1,000 (Youville House - FHA Insured Project), Series A, 6.25% due 2/15/2007
(d)(g) 1,062
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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 764
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1,500 Massachusetts State Industrial Finance Agency, PCR (General Motors Corporation),
5.55% due 4/01/2009 1,488
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400 Massachusetts State Industrial Finance Agency Revenue Bonds
(Wentworth Institute of Technology), 5.75% due 10/01/2028 415
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340 Massachusetts State Industrial Finance Agency, Senor Living Facility Revenue
Bonds (Forge Hill Project), AMT, 6.75% due 4/01/2030 343
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1,000 Massachusetts State Water Pollution Abatement Trust, Pool Program Revenue Bonds,
Series 10, 5% due 8/01/2029 1,049
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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) 443
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750 University of Massachusetts Building Authority, Project Revenue Refunding Bonds,
Senior Series 04-1, 5.125% due 11/01/2034 (a) 791
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The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2005 (in Thousands)
Face
Amount Municipal Bonds Value
-----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 3.2% $ 1,000 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation
Revenue Refunding Bonds, Series K, 5% due 7/01/2040 $ 1,026
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Total Investments (Cost - $50,727**) - 163.9% 52,721
Liabilities in Excess of Other Assets - (1.7%) (553)
Preferred Shares, at Redemption Value - (62.2%) (20,000)
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Net Assets Applicable to Common Shares - 100.0% $ 32,168
========
* Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
** The cost and unrealized appreciation (depreciation) of investments as of
September 30, 2005, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 50,730
========
Gross unrealized appreciation $ 2,027
Gross unrealized depreciation (36)
--------
Net unrealized appreciation $ 1,991
========
(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 that 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.
Investments in companies considered to be an affiliate of the Trust, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
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Net Dividend
Affiliate Activity Income
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CMA Massachusetts Municipal Money Fund --+ --+
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+ Amount is less than $1,000.
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: November 17, 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: November 17, 2005
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke
Chief Financial Officer
The Massachusetts Health & Education Tax-Exempt Trust
Date: November 17, 2005