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 (MHE)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, 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: (800) 882-0052, Option 4
Date of fiscal year end: 12/31/2007
Date of reporting period: 07/01/2007 - 09/30/2007
Item 1 - Schedule of Investments
The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2007 (Unaudited) (in Thousands)
Face
Amount Municipal Bonds Value
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Massachusetts - 162.4% $ 1,000 Massachusetts State College Building Authority, Project Revenue Bonds,
Series A, 5% due 5/01/2031 (b) $ 1,037
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825 Massachusetts State College Building Authority, Project Revenue Refunding
Bonds, Series B, 5.50% due 5/01/2039 (l) 943
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1,100 Massachusetts State Development Finance Agency, Education Revenue Bonds
(Belmont Hill School), 5% due 9/01/2011 (i) 1,167
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1,000 Massachusetts State Development Finance Agency, Education Revenue Bonds
(Belmont Hill School), 4.50% due 9/01/2036 935
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400 Massachusetts State Development Finance Agency, Education Revenue Bonds
(Middlesex School Project), 5% due 9/01/2033 406
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250 Massachusetts State Development Finance Agency, Education Revenue Bonds
(Xaverian Brothers High School), 5.65% due 7/01/2029 254
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1,000 Massachusetts State Development Finance Agency, Educational Facility Revenue
Bonds (Academy of the Pacific Rim), Series A, 5.125% due 6/01/2031 (a) 971
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855 Massachusetts State Development Finance Agency, First Mortgage Revenue Bonds
(Edgecombe Project), Series A, 6.75% due 7/01/2021 915
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850 Massachusetts State Development Finance Agency, First Mortgage Revenue Bonds
(Overlook Communities Inc.), Series A, 6.125% due 7/01/2024 867
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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 (j) 1,224
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500 Massachusetts State Development Finance Agency, Human Service Provider
Revenue Bonds (Seven Hills Foundation & Affiliates), 5% due 9/01/2035 (j) 490
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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 871
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1,000 Massachusetts State Development Finance Agency Revenue Bonds (Boston
University), Series T-1, 5% due 10/01/2039 (b) 1,027
------------------------------------------------------------------------------------------------------
500 Massachusetts State Development Finance Agency Revenue Bonds (College of
Pharmacy and Allied Health Services), Series D, 5% due 7/01/2027 (c) 517
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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)
HFA Housing Finance Agency
PCR Pollution Control Revenue Bonds
The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2007 (Unaudited) (in Thousands)
Face
Amount Municipal Bonds Value
-------------------------------------------------------------------------------------------------------------------------------
$ 500 Massachusetts State Development Finance Agency Revenue Bonds (Curry
College), Series A, 5% due 3/01/2035 (a) $ 473
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400 Massachusetts State Development Finance Agency Revenue Bonds (Franklin W.
Olin College), Series B, 5.25% due 7/01/2033 (l) 414
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1,000 Massachusetts State Development Finance Agency Revenue Bonds (Linden Ponds,
Inc. Facility), Series A, 5.75% due 11/15/2042 976
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1,000 Massachusetts State Development Finance Agency Revenue Bonds (Massachusetts
College of Pharmacy and Health Sciences), 5.75% due 7/01/2013 (i) 1,050
------------------------------------------------------------------------------------------------------
425 Massachusetts State Development Finance Agency Revenue Bonds (Massachusetts
Council of Human Service Providers, Inc.), Series C, 6.60% due 8/15/2029 425
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2,000 Massachusetts State Development Finance Agency Revenue Bonds (Smith College),
5% due 7/01/2035 2,056
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495 Massachusetts State Development Finance Agency Revenue Bonds (Volunteers of
America - Ayer Limited Partnership), AMT, Series A, 6.20% due 2/20/2046 (h) 543
------------------------------------------------------------------------------------------------------
1,100 Massachusetts State Development Finance Agency Revenue Bonds (WGBH
Educational Foundation), Series A, 5.75% due 1/01/2042 (b) 1,305
------------------------------------------------------------------------------------------------------
600 Massachusetts State Development Finance Agency Revenue Bonds (Western New
England College), 5.875% due 12/01/2012 (i) 654
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540 Massachusetts State Development Finance Agency Revenue Bonds (The Wheeler
School), 6.50% due 12/01/2029 559
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500 Massachusetts State Development Finance Agency Revenue Bonds (Williston
Northampton School Project), 5% due 10/01/2025 (l) 519
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1,985 Massachusetts State Development Finance Agency Revenue Bonds (Worcester
Polytechnic Institute), 5% due 9/01/2027 (d) 2,075
------------------------------------------------------------------------------------------------------
1,500 Massachusetts State Development Finance Agency, Revenue Refunding Bonds
(Boston University), Series P, 5.45% due 5/15/2059 1,543
------------------------------------------------------------------------------------------------------
500 Massachusetts State Development Finance Agency, Revenue Refunding Bonds
(Clark University), 5.125% due 10/01/2035 (l) 517
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1,500 Massachusetts State Development Finance Agency, Revenue Refunding Bonds
(Western New England College), Series A, 5% due 9/01/2033 (c) 1,540
------------------------------------------------------------------------------------------------------
1,000 Massachusetts State Development Finance Agency, Revenue Refunding Bonds
(Wheelock College), Series C, 5.25% due 10/01/2037 996
------------------------------------------------------------------------------------------------------
1,000 Massachusetts State, HFA, Housing Revenue Bonds, AMT, Series A, 5.25%
due 12/01/2048 1,000
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1,000 Massachusetts State Health and Educational Facilities Authority Revenue
Bonds (Baystate Medical Center), Series F, 5.75% due 7/01/2033 1,034
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The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2007 (Unaudited) (in Thousands)
Face
Amount Municipal Bonds Value
-------------------------------------------------------------------------------------------------------------------------------
$ 350 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Berkshire Health System), Series E, 6.25% due 10/01/2031 $ 367
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1,000 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Berkshire Health System), Series F, 5% due 10/01/2019 (c) 1,046
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1,350 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Harvard University), Series FF, 5.125% due 7/15/2037 1,408
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1,000 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Lahey Clinic Medical Center), Series D, 5.25% due 8/15/2037 1,016
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750 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Milford-Whitinsville Hospital), Series D, 6.35% due 7/15/2012 (i) 843
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1,000 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Simmons College), Series F, 5% due 10/01/2013 (f)(i) 1,075
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230 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(University of Massachusetts), Series C, 5.125% due 10/01/2034 (f) 239
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1,210 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Wheaton College), Series D, 6% due 1/01/2018 1,237
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780 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Bay Cove Human Services Issue), Series A, 5.90%
due 4/01/2028 783
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1,000 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Berklee College of Music), Series A, 5% due 10/01/2037 1,014
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1,000 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Boston College), Series N, 5.125% due 6/01/2037 1,027
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500 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Christopher House), Series A, 6.875% due 1/01/2029 509
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800 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Covenant Health System), 6% due 7/01/2022 848
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400 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Covenant Health System), 6% due 7/01/2031 420
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495 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Learning Center For Deaf Children), Series C, 6.125%
due 7/01/2029 504
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500 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Massachusetts Institute of Technology), Series L, 5%
due 7/01/2023 547
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480 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Partners Healthcare System), Series C, 5.75%
due 7/01/2011 (i) 521
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20 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Partners Healthcare System), Series C, 5.75% due 7/01/2032 22
------------------------------------------------------------------------------------------------------
395 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Valley Regional Health System), Series C, 5.75%
due 7/01/2018 (e) 396
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1,500 Massachusetts State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Wellesley College), 5% due 7/01/2033 1,535
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The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2007 (Unaudited) (in Thousands)
Face
Amount Municipal Bonds Value
-------------------------------------------------------------------------------------------------------------------------------
$ 730 Massachusetts State Industrial Finance Agency, Health Care Facility Revenue
Bonds (Age Institute of Massachusetts Project), 8.05% due 11/01/2025 $ 744
------------------------------------------------------------------------------------------------------
1,500 Massachusetts State Industrial Finance Agency, PCR (General Motors
Corporation), 5.55% due 4/01/2009 1,503
------------------------------------------------------------------------------------------------------
400 Massachusetts State Industrial Finance Agency Revenue Bonds (Wentworth
Institute of Technology), 5.75% due 10/01/2008 (i) 416
------------------------------------------------------------------------------------------------------
340 Massachusetts State Industrial Finance Agency, Senior Living Facility Revenue
Bonds (Forge Hill Project), AMT, 6.75% due 4/01/2008 (i) 351
------------------------------------------------------------------------------------------------------
2,000 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue
Bonds, Series A, 5% due 8/15/2030 (g) 2,074
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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 (a)(i)(k) 472
------------------------------------------------------------------------------------------------------
500 University of Massachusetts Building Authority, Project Revenue Refunding
Bonds, Senior Series 04-1, 5.125% due 11/01/2014 (b)(i) 546
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Total Investments (Cost - $49,332*) - 162.4% 50,766
Other Assets Less Liabilities - 1.6% 508
Preferred Shares, at Redemption Value - (64.0%) (20,011)
---------
Net Assets Applicable to Common Shares - 100.0% $ 31,263
=========
* The cost and unrealized appreciation (depreciation) of investments as of
September 30, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 49,332
========
Gross unrealized appreciation $ 1,668
Gross unrealized depreciation (234)
--------
Net unrealized appreciation $ 1,434
========
(a) ACA Insured.
(b) AMBAC Insured.
(c) Assured Guaranty Insured.
(d) MBIA Insured.
(e) Connie Lee Insured.
(f) FGIC Insured.
(g) FSA Insured.
(h) GNMA Collateralized.
(i) Prerefunded.
(j) Radian Insured.
(k) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(l) XL Capital Insured.
The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments as of September 30, 2007 (Unaudited) (in Thousands)
o Forward interest rate swaps outstanding as of September 30, 2007 were as
follows:
-------------------------------------------------------------------------------------------------------------------------
Notional Unrealized
Amount Depreciation
-------------------------------------------------------------------------------------------------------------------------
Pay a fixed rate at 4.019% and receive a floating rate based in 3-month USD LIBOR $1,150 $ (16)
Broker, JPMorgan Chase
Expires November 2022
Pay a fixed rate at 3.984% and receive a floating rate based on 1-week (SIFMA) $1,750 (18)
Municipal Swap Index Rate
Broker, JPMorgan Chase
Expires November 2022
-------------------------------------------------------------------------------------------------------------------------
Total $ (34)
=====
Item 2 - Controls and Procedures
2(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities and Exchange Act of 1934, as amended.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's last fiscal quarter that have
materially affected, or are 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/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer of
The Massachusetts Health & Education Tax-Exempt Trust
Date: November 20, 2007
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/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Executive Officer (principal executive officer) of
The Massachusetts Health & Education Tax-Exempt Trust
Date: November 20, 2007
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews,
Chief Financial Officer (principal financial officer) of
The Massachusetts Health & Education Tax-Exempt Trust
Date: November 20, 2007