Principal

Amount

(000’s omitted)

Security

Value

Cogeneration — 1.2%

$

2,950

Maryland Energy Cogeneration, (AES Warrior Run), (AMT), 7.40%, 9/1/19

$

3,009,000

$

3,009,000

Education — 2.7%

2,250

California Educational Facilities Authority, Stanford University, Residual Certificates, Variable Rate, 14.67%, 12/1/32 (1)(2)

2,921,265

3,430

Massachusetts Development Finance Agency, (Boston University), 5.45%, 5/15/59

3,879,296

$

6,800,561

Electric Utilities — 11.4%

6,500

Brazos River Authority, TX, (Reliant Energy, Inc.), 7.75%, 12/1/18

7,216,300

2,000

Brazos River Authority, TX, PCR (Texas Energy Co.), (AMT), 6.75%, 4/1/38

2,292,540

3,550

Mississippi Business Finance Corp., (System Energy Resources, Inc.), 5.90%, 5/1/22

3,649,968

7,250

North Carolina Municipal Power Agency, (Catawba), 6.50%, 1/1/20

8,048,080

1,000

Pennsylvania EDA, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36

1,079,480

3,400

Pennsylvania EDA, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36

3,670,232

2,550

Pennsylvania EDA, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36

2,752,674

$

28,709,274

Escrowed / Prerefunded — 7.5%

35,000

Dawson Ridge, CO, Metropolitan District #1, Escrowed to Maturity, 0.00%, 10/1/22 (3)

16,584,750

95

Delaware County, PA, IDA, (Glen Riddle), Escrowed to Maturity, (AMT), 8.125%, 9/1/05

95,000

2,000

Kershaw County, SC, School District, Prerefunded to 2/1/10, 5.00%, 2/1/18

2,128,880

$

18,808,630

General Obligations — 7.4%

1,500

California, 5.25%, 11/1/29

1,648,080

4,950

California, 5.50%, 11/1/33

5,578,353

3,100

California, (AMT), 5.05%, 12/1/36

3,224,961

$

1,200

New York, NY, Variable Rate, 10.182%, 6/1/28 (1)(2)

$

1,478,460

5,000

Puerto Rico, Variable Rate, 8.307%, 7/1/29 (1)(4)

6,752,850

$

18,682,704

Health Care-Miscellaneous — 1.2%

608

Tax Exempt Securities Trust, Community Health Provider, Pooled Loan Program, 6.00%, 12/1/36

619,553

1,605

Tax Exempt Securities Trust, Community Health Provider, Pooled Loan Program, 6.25%, 12/1/36

1,733,971

609

Tax Exempt Securities Trust, Community Health Provider, Pooled Loan Program, 7.75%, 12/1/36

618,609

$

2,972,133

Hospital — 19.5%

2,500

California Health Facilities Authority, (Cedars Sinai Medical Center), Variable Rate, 9.695%, 12/1/34 (1)(4)

3,176,500

3,500

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 11/15/34

3,624,040

895

Chautauqua County, NY, IDA, (Women’s Christian Association), 6.35%, 11/15/17

947,984

975

Chautauqua County, NY, IDA, (Women’s Christian Association), 6.40%, 11/15/29

1,026,314

1,000

Halifax, FL, Medical Center, 7.25%, 10/1/24

1,136,090

6,000

Henderson, NV, Health Care Facility, 5.625%, 7/1/24

6,521,340

2,725

Highland County, OH, (Joint Township Hospital District), 6.75%, 12/1/29

2,889,208

5,000

Illinois Health Facility Authority, (Loyola University Health System), 6.00%, 7/1/21

5,387,350

2,575

Louisiana Public Facilities Authority, (Tuoro Infirmary), 5.625%, 8/15/29

2,660,181

2,000

Martin County, MN, (Fairmont Community Hospital Association), 6.625%, 9/1/22

2,145,340

945

Mecosta County, MI, General Hospital, 5.75%, 5/15/09

973,293

2,500

Mecosta County, MI, General Hospital, 6.00%, 5/15/18

2,576,000

1,500

New Jersey Health Care Facilities Financing Authority, (Trinitas Hospital), 7.50%, 7/1/30

1,698,510

5,000

North Central, TX, Health Facility Development Corp., (Baylor Healthcare System), 5.125%, 5/15/29

5,183,400

1,420

Oneonta, AL, Eastern Health Care Facility Financing Authority, (Eastern Health Systems, Inc.), 7.75%, 7/1/21

1,589,420

7,000

Rhode Island HEFA, (St. Joseph Health Services), 5.50%, 10/1/29

7,026,530

500

Washington County, AR, Hospital, (Washington Regional Medical Center), 5.00%, 2/1/35

505,860

$

49,067,360

Housing — 12.6%

$

990

California Statewide Communities Development Authority, (AMT), Variable Rate, 31.577%, 12/1/34 (1)(2)(5)

$

1,034,926

4,000

Charter Mac Equity Trust, TN, 6.00%, 4/30/19

4,434,240

4,000

Charter Mac Equity Trust, TN, (AMT), 6.625%, 6/30/09

4,353,240

3,185

Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), 7.75%, 8/15/20

3,326,510

880

Lake Creek, CO, Affordable Housing Corp., Multifamily, 7.00%, 12/1/23

868,727

4,435

Louisiana Public Facilities Authority, (Eden Point), 6.25%, 3/1/34

4,121,756

4,000

Muni Mae Tax-Exempt Bond, LLC, (AMT), 6.875%, 6/30/49

4,392,280

2,975

North Little Rock, AR, Residential Housing Facilities, (Parkstone Place), 6.50%, 8/1/21

2,873,404

3,505

Oregon Health Authority, (Trillium Affordable Housing), (AMT), 6.75%, 2/15/29

3,173,497

970

Raleigh, NC, Housing Authority, Multifamily, (Cedar Point), 7.00%, 11/1/30 (6)

29,100

3,300

Texas Student Housing Corp., (University of Northern Texas), 6.75%, 7/1/16

3,190,374

$

31,798,054

Industrial Development Revenue — 11.2%

1,870

ABIA Development Corp., TX, (Austin Cargoport Development), (AMT), 6.50%, 10/1/24

1,814,244

1,550

Alliance Airport Authority, TX, (American Airlines, Inc.), (AMT), 7.50%, 12/1/29

1,356,017

1,700

Broward County, FL, IDR, (Lynxs Cargoport), (AMT), 6.75%, 6/1/19

1,604,235

1,300

California Pollution Control Financing Authority, (Solid Waste Disposal), (AMT), 5.40%, 4/1/25

1,361,880

1,045

Denver, CO, City and County Special Facilities, (United Airlines), (AMT), 6.875%, 10/1/32

967,419

2,055

Fulton County, GA, Development Authority, (Delta Air Lines, Inc.), (AMT), 5.45%, 5/1/23

328,800

2,500

Gulf Coast, TX, Waste Disposal Authority, (Valero Energy Corp.) (AMT), 5.70%, 4/1/32

2,564,350

1,000

Kenton County, KY, Airport, (Delta Airlines), (AMT), 7.125%, 2/1/21

852,250

6,000

New Jersey EDA, (Continental Airlines), (AMT), 6.25%, 9/15/29

5,428,440

3,500

New York City, NY, IDA, (American Airlines, Inc.), (AMT), 8.50%, 8/1/28

3,501,715

$

5,000

Ohio Environmental Facilities, (Ford Motor Co.), (AMT), 5.75%, 4/1/35

$

4,757,400

4,350

Phoenix, AZ, IDA, (America West Airlines, Inc.), (AMT), 6.25%, 6/1/19

3,562,867

$

28,099,617

Insured-Education — 1.3%

3,000

Massachusetts HEFA, (Berklee College of Music), (MBIA), Variable Rate, 7.59%, 10/1/27 (1)(4)

3,307,830

$

3,307,830

Insured-Electric Utilities — 2.1%

3,730

Maricopa County, AZ, Pollution Control Corp., (El Paso Electric Co.), (FGIC), 4.80%, 8/1/40

3,760,027

1,350

Wamego, KS, PCR, (MBIA), 5.30%, 6/1/31

1,469,151

$

5,229,178

Insured-Escrowed / Prerefunded — 1.7%

4,250

Metropolitan Transportation Authority of New York, Escrowed to Maturity, (FGIC), 4.75%, 7/1/26

4,367,598

$

4,367,598

Insured-General Obligations — 16.2%

7,905

California, (AMBAC), 4.25%, 3/1/28

7,764,449

2,000

California, (AMBAC), 4.50%, 5/1/28

2,018,180

2,625

California, (FGIC), Variable Rate, 13.32%, 9/1/30 (1)(2)

3,411,345

500

California, (FGIC), Variable Rate, 64.598%, 12/1/29 (1)(2)(5)

1,496,200

30,160

Chicago, IL, Board of Education, (FGIC), 0.00%, 12/1/22 (3)

14,044,607

13,000

Illinois Development Finance Authority, (Local Government Program-Elgin School District-U46), (FSA), 0.00%, 1/1/20

6,995,950

4,000

Puerto Rico, (FSA), Variable Rate, 10.70%, 7/1/27 (1)(2)

4,970,560

$

40,701,291

Insured-Hospital — 9.8%

19,705

Kentucky EDA, (Norton Healthcare, Inc.), (MBIA), 0.00%, 10/1/25

7,967,323

22,770

Kentucky EDA, (Norton Healthcare, Inc.), (MBIA), 0.00%, 10/1/26

8,800,833

10,000

Kentucky EDA, (Norton Healthcare, Inc.), (MBIA), 0.00%, 10/1/27

3,686,700

4,000

New Jersey Health Care Facilities Financing Authority, (St. Barnabas Medical Center), (MBIA), Variable Rate, 9.057%, 7/1/28 (1)(2)

4,232,920

$

24,687,776

Insured-Housing — 2.0%

$

4,525

Virginia Housing Development Authority, (MBIA), Variable Rate, 11.091%, 7/1/36 (1)(2)

$

5,050,036

$

5,050,036

Insured-Transportation — 17.5%

1,500

Central, TX, Regional Mobility Authority, (FGIC), 5.00%, 1/1/45

1,566,435

3,500

Chicago, IL, O’Hare International Airport, (AMBAC), (AMT), 5.375%, 1/1/32

3,702,545

2,983

Dallas-Fort Worth, TX, International Airport, (FGIC), (AMT), Variable Rate, 15.291%, 5/1/10 (1)(2)

4,001,366

25,500

E-470 Public Highway Authority, CO, (MBIA), 0.00%, 3/1/36

5,100,255

2,400

Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), Variable Rate, 9.866%, 1/1/37 (1)(2)

2,668,968

5,000

Minneapolis and St. Paul, MN, Metropolitan Airport Commission, (FGIC), 5.25%, 1/1/32

5,361,750

5,500

Nevada Department of Business and Industry, (Las Vegas Monorail -1st Tier), (AMBAC), 5.375%, 1/1/40

5,845,070

2,000

Puerto Rico Highway and Transportation Authority, (FSA), Variable Rate, 9.875%, 7/1/32 (1)(2)

2,335,140

7,000

San Antonio, TX, Airport System, (Improvements), (FGIC), (AMT), 5.25%, 7/1/21

7,434,420

1,500

South Carolina Transportation Infrastructure, (AMBAC), 5.00%, 10/1/33

1,576,095

9,000

Texas Turnpike Authority, (Central Texas Turnpike System), (AMBAC), 0.00%, 8/15/21

4,464,810

$

44,056,854

Nursing Home — 2.2%

695

Okaloosa County, FL, Retirement Rental Housing, (Encore Retirement Partners), 6.125%, 2/1/14

638,121

2,000

Orange County, FL, Health Facilities Authority, (Westminster Community Care), 6.75%, 4/1/34

1,994,820

2,820

Wisconsin HEFA, (Wisconsin Illinois Senior Housing), 7.00%, 8/1/29

2,816,503

$

5,449,444

Other Revenue — 17.5%

4,000

California Statewide Communities Development Authority, (East Valley Tourist Development Authority), 8.25%, 10/1/14

4,351,160

3,000

Capital Trust Agency, FL, (Seminole Tribe Convention), 8.95%, 10/1/33

3,284,670

2,740

Capital Trust Agency, FL, (Seminole Tribe Convention), 10.00%, 10/1/33

3,020,192

1,955

Central Falls, RI, Detention Facility Revenue, 7.25%, 7/15/35

2,020,923

6,125

Golden Tobacco Securitization Corp., CA, 5.00%, 6/1/45

6,391,193

$

3,160

Golden Tobacco Securitization Corp., CA, 6.75%, 6/1/39

$

3,646,292

2,900

Golden Tobacco Securitization Corp., CA, Variable Rate, 8.587%, 6/1/38 (1)(4)

3,737,549

1,500

Mohegan Tribe Indians, CT, Gaming Authority, (Public Improvements), 6.25%, 1/1/21

1,633,470

3,900

Puerto Rico Infrastructure Financing Authority, Variable Rate, 19.305%, 10/1/32 (1)(2)(7)

5,917,392

3,300

Santa Fe, NM, (Crow Hobbs), 8.50%, 9/1/16

3,375,075

1,290

Tobacco Settlement Financing Corp., NJ, 6.75%, 6/1/39

1,506,049

3,000

Tobacco Settlement Financing Corp., NJ, Variable Rate, 11.262%, 6/1/39 (1)(4)(5)

4,004,880

1,000

Tobacco Settlement Financing Corp., VA, Variable Rate, 10.346%, 6/1/37 (1)(2)

1,118,380

$

44,007,225

Senior Living / Life Care — 2.4%

3,210

Cliff House Trust, PA, (AMT), 6.625%, 6/1/27

1,622,334

3,240

Logan County, CO, Industrial Development Revenue, (TLC Care Choices, Inc.), 6.875%, 12/1/23

3,003,610

1,400

Mesquite, TX, Health Facilities Authority, (Christian Retirement Facility), 7.625%, 2/15/28

1,530,340

$

6,156,284

Special Tax Revenue — 3.5%

3,280

Bell Mountain Ranch, CO, Metropolitan District, 6.625%, 11/15/25

3,383,156

355

Longleaf, FL, Community Development District, 6.20%, 5/1/09

357,744

1,655

Longleaf, FL, Community Development District, 6.65%, 5/1/20

1,548,319

1,150

New Jersey EDA, (Cigarette Tax), 5.50%, 6/15/24

1,222,427

2,115

New Jersey EDA, (Cigarette Tax), 5.75%, 6/15/29

2,286,675

$

8,798,321

Transportation — 1.4%

1,500

Augusta, GA, (AMT), 5.35%, 1/1/28

1,539,795

1,875

Kent County, MI, Airport Facility, Variable Rate, 12.02%, 1/1/25 (1)(4)

2,113,050

$

3,652,845

Total Tax-Exempt Investments — 152.3%
(identified cost $346,900,098)

$

383,412,015

Other Assets, Less Liabilities — (0.2)%

$

(551,326

)

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (52.1)%

$

(131,030,318

)

Net Assets Applicable to Common Shares — 100.0%

$

251,830,371

AMBAC

—

AMBAC Financial Group, Inc.

AMT

—

Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.

FGIC

—

Financial Guaranty Insurance Company

FSA

—

Financial Security Assurance, Inc.

MBIA

—

Municipal Bond Insurance Association

California

22.0

%

Colorado

11.9

%

Illinois

12.0

%

Texas

16.9

%

Others, representing less than 10% individually

89.5

%

(1)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2005, the aggregate value of the securities is $63,729,617 or 25.3% of the Trust’s net assets.

(2)

Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at August 31, 2005.

(3)

Security (or a portion thereof) has been segregated to cover when-issued securities.

(4)

Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at August 31, 2005.

(5)

Security is subject to a shortfall and forbearance agreement.

(6)

Defaulted bond.

(7)

Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

Expiration

Aggregate

Net Unrealized

Date

Contracts

Position

Cost

Value

Appreciation

12/05

1,200 U.S. Treasury Bond

Short

$

(140,366,776

)

$

(141,637,500

)

$

(1,270,724

)

Aggregate cost

$

346,303,002

Gross unrealized appreciation

$

41,268,322

Gross unrealized depreciation

(4,159,309

)

Net unrealized appreciation

$

37,109,013

By:

/s/ Thomas J. Fetter

Thomas J. Fetter

President and Principal Executive Officer

Date:

October 26, 2005

By:

/s/ Thomas J. Fetter

Thomas J. Fetter

Date:

October 26, 2005

By:

/s/ James L. O’Connor

James L. O’Connor

Treasurer and Principal Financial Officer

Date:

October 26, 2005