Principal

Amount

(000’s omitted)

Security

Value

Cogeneration — 1.2%

$

2,950

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

$

2,957,552

$

2,957,552

Education — 5.1%

$

9,000

California Educational Facilities Authority, (Stanford University), 5.25%, 12/1/32 (1)

$

9,299,160

3,430

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

3,423,792

$

12,722,952

Electric Utilities — 11.5%

$

6,500

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

$

6,757,725

1,300

Brazos River Authority, TX, Pollution Control Revenue (Texas Energy Co.), (AMT), 5.40%, 5/1/29

1,233,908

2,000

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

2,077,920

3,550

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

3,584,222

7,250

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

7,684,710

6,950

Pennsylvania Economic Development Authority, (Reliant Energy, Inc.), (AMT), 6.75%, 12/1/36

7,554,997

$

28,893,482

Escrowed / Prerefunded — 15.2%

$

3,000

Capital Trust Agency, FL, (Seminole Tribe Convention), Prerefunded to 10/1/12, 8.95%, 10/1/33 (2)

$

3,562,020

35,000

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

17,291,400

1,000

Halifax, FL, Medical Center, Prerefunded to 10/01/10, 7.25%, 10/1/24

1,116,160

5,000

Illinois Health Facility Authority, (Loyola University Health System), Prerefunded to 7/1/11, 6.00%, 7/1/21

5,385,900

4,300

Louisiana Public Facilities Authority, (Eden Point), Prerefunded to 3/1/09, 6.25%, 3/1/34

4,529,190

1,400

Mesquite, TX, Health Facilities Authority, (Christian Retirement Facility), Prerefunded to 2/15/10, 7.625%, 2/15/28

1,535,940

302

New York, Prerefunded to 6/1/13, 5.25%, 6/1/28 (1)

301,700

1,290

Tobacco Settlement Financing Corp., NJ, Prerefunded to 6/1/13, 6.75%, 6/1/39

1,482,287

$

2,720

Wisconsin Health & Educational Facilities Authority, (Wisconsin Illinois Senior Housing), Prerefunded to 8/1/09, 7.00%, 8/1/29

$

2,897,344

$

38,101,941

General Obligations — 2.0%

$

1,500

California, 5.25%, 11/1/29

$

1,547,265

3,298

New York City, NY, 5.25%, 6/1/28 (1)

3,433,120

$

4,980,385

Health Care - Miscellaneous — 0.9%

$

457

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

$

467,540

1,206

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

1,236,159

458

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

472,197

$

2,175,896

Hospital — 15.1%

$

2,000

Brevard County, FL, Health Facilities Authority, (Health First, Inc.), 5.00%, 4/1/36

$

1,937,820

600

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/25

573,402

1,260

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35

1,160,384

1,200

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27

1,170,696

835

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

861,712

975

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

1,003,694

6,000

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

6,191,580

2,635

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

2,834,180

5,025

Indiana Health & Educational Facilities Authority, (Clarian Health Partners), 5.00%, 2/15/36

4,840,331

2,000

Knox County, TN, Health, Educational & Housing Facilities Board, (Covenant Health), 0.00%, 1/1/38

361,480

5,000

Knox County, TN, Health, Educational & Housing Facilities Board, (Covenant Health), 0.00%, 1/1/39

851,550

7,590

Knox County, TN, Health, Educational & Housing Facilities Board, (Covenant Health), 0.00%, 1/1/42

1,091,062

900

Louisiana Public Facilities Authority, (Ochsner Clinic Foundation Project), 5.50%, 5/15/32

1,006,245

2,575

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

2,579,069

2,000

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

2,081,520

$

500

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

$

504,105

2,500

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

2,541,575

5,000

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

5,028,100

1,320

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

1,412,228

$

38,030,733

Housing — 13.2%

$

2,420

Capital Trust Agency, FL, (Atlantic Housing Foundation), 5.35%, 7/1/40

$

2,363,130

4,000

Charter Mac Equity Trust, TN, 6.00%, 4/30/19 (2)

4,295,960

4,000

Charter Mac Equity Trust, TN, (AMT), 6.625%, 6/30/09 (2)

4,146,040

2,130

Colorado Housing and Finance Authority, (Birchwood Manor Project), (AMT), 5.50%, 9/20/36

2,143,930

1,425

Fairfax County Redevelopment and Housing Authority, (Cedar Ridge), (AMT), 4.85%, 10/1/48

1,300,840

3,045

Florida Capital Projects Finance Authority, Student Housing Revenue, (Florida University), Prerefunded to 8/15/10, 7.75%, 8/15/20

3,388,720

1,715

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

1,718,344

4,000

Muni Mae Tax-Exempt Bond, LLC, (AMT), 6.875%, 6/30/49 (2)

4,161,760

2,750

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

2,787,153

3,395

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

3,528,390

3,300

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

3,259,740

$

33,094,007

Industrial Development Revenue — 23.9%

$

1,780

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

$

1,791,306

4,135

Brazos River, TX, Harbor Navigation District (Dow Chemical Co.), (AMT), 5.125%, 5/15/33

3,882,103

1,522

Broward County, FL, Industrial Development Revenue, (Lynxs Cargoport), (AMT), 6.75%, 6/1/19

1,541,773

1,300

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

1,261,897

12,000

Cartersville, GA, Development Authority Sewer and Solid Waste Disposal Facility, (Anheuser-Busch), (AMT), 5.50%, 3/1/44

11,732,160

3,370

Denver, CO, City and County Special Facilities, (United Airlines), (AMT), 5.25%, 10/1/32

3,074,653

2,955

Denver, CO, City and County Special Facilities, (United Airlines), (AMT), 5.75%, 10/1/32

2,906,656

$

1,220

Effingham County, GA, (Solid Waste Disposal), (Fort James), (AMT), 5.625%, 7/1/18

$

1,175,836

2,500

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

2,503,475

6,000

New Jersey Economic Development Authority, (Continental Airlines), (AMT), 6.25%, 9/15/29

6,083,940

1,300

New York City, NY, Industrial Development Agency, (American Airlines, Inc.), (AMT), Variable Rate, 7.75%, 8/1/31

1,493,544

6,000

New York City, NY, Industrial Development Agency, (American Airlines, Inc.-JFK International Airport), Variable Rate, 8.00%, 8/1/28

6,951,360

3,500

New York City, NY, Industrial Development Agency, (JFK International Airport), (AMT), Variable Rate, 8.50%, 8/1/28

3,951,780

4,350

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

4,376,144

7,500

St. John Baptist Parish Revenue, LA, (Marathon Oil Corp.), 5.125%, 6/1/37

7,229,025

$

59,955,652

Insured-Electric Utilities — 0.6%

$

1,350

Wamego, KS, Pollution Control Revenue, (MBIA), 5.30%, 6/1/31

$

1,397,466

$

1,397,466

Insured-General Obligations — 14.4%

$

10,500

California, (FGIC), 5.25%, 9/1/30 (1)

$

11,003,160

13,000

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

7,418,970

2,075

North Las Vegas, NV, Wastewater Reclamation System, (MBIA), 4.25%, 10/1/33

1,859,262

9,990

Puerto Rico, (AGC), 5.50%, 7/1/29 (1)

11,212,376

4,000

Puerto Rico, (FSA), Variable Rate, 7.642%, 7/1/27 (2)(3)

4,602,240

$

36,096,008

Insured-Hospital — 11.5%

$

16,820

Kentucky Economic Development Authority, (Norton Healthcare, Inc.), (MBIA), 0.00%, 10/1/25

$

6,647,600

19,165

Kentucky Economic Development Authority, (Norton Healthcare, Inc.), (MBIA), 0.00%, 10/1/26

7,168,668

8,590

Kentucky Economic Development Authority, (Norton Healthcare, Inc.), (MBIA), 0.00%, 10/1/27

3,021,962

12,000

New Jersey Health Care Facilities Financing Authority, (St. Barnabas Medical Center), (MBIA), 4.75%, 7/1/28 (1)

12,022,920

$

28,861,150

Insured-Housing — 5.6%

$

13,710

Virginia Housing Development Authority, (MBIA), 5.375%, 7/1/36 (1)

$

13,989,374

$

13,989,374

Insured-Pooled Loan — 1.3%

$

3,625

Massachusetts Educational Financing Authority, (AMBAC), (AMT), 4.70%, 1/1/33

$

3,393,435

$

3,393,435

Insured-Special Tax Revenue — 4.4%

$

4,100

New York Convention Center Development Corp., (AMBAC), 4.75%, 11/15/45

$

3,942,642

37,800

Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54

3,338,496

6,160

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44

932,501

12,215

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45

1,756,273

7,685

Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46

1,049,079

$

11,018,991

Insured-Transportation — 23.0%

$

1,500

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

$

1,508,595

3,500

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

3,552,640

2,500

Dallas Fort Worth, International Airport Facility Improvements Corp., (FGIC), (AMT), 5.50%, 11/1/20 (1)

2,603,000

4,930

Dallas-Fort Worth, TX, International Airport, (FGIC), (AMT), 5.75%, 11/1/30 (1)

5,081,735

4,500

Dallas-Fort Worth, TX, International Airport, (FGIC), (AMT), 6.125%, 11/1/35 (1)

4,674,960

5,500

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 5.375%, 1/1/40

5,591,190

6,600

E-470 Public Highway Authority, CO, (MBIA), 0.00%, 9/1/39

1,245,288

25,500

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

5,444,505

7,200

Massachusetts Turnpike Authority, Metropolitan Highway System, (MBIA), 5.00%, 1/1/37 (1)

7,224,840

9,825

Puerto Rico Highway and Transportation Authority, (CIFG), 5.25%, 7/1/41 (1)

10,649,088

7,000

San Antonio, TX, Airport System, (FGIC), (AMT), 5.25%,
7/1/21 (4)

7,152,110

3,000

San Francisco, CA, City and County Airports Commission, (FGIC), (AMT), 6.612%, 5/1/30 (2)(3)

3,015,840

$

57,743,791

Insured-Water and Sewer — 1.0%

$

2,730

Marysville, OH, Wastewater Treatment System Revenue, (XLCA), 4.75%, 12/1/46

$

2,601,690

$

2,601,690

Nursing Home — 0.8%

$

2,000

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

$

2,054,420

$

2,054,420

Other Revenue — 23.1%

$

1,955

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

$

2,140,588

5,800

Golden State Tobacco Securitization Corp., CA, 5.625%, 6/1/38 (1)

6,300,279

3,160

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

3,631,409

8,000

Michigan Tobbacco Settlement Finance Authority, 6.00%, 6/1/48

8,037,200

1,500

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

1,560,105

2,300

Northern Tobacco Securitization Corp., 0.00%, 6/1/46

173,972

6,050

Northern Tobacco Securitization Corp., 5.00%, 6/1/46

5,171,056

195

Otero County, NM, Jail Project, 5.50%, 4/1/13

192,369

360

Otero County, NM, Jail Project, 5.75%, 4/1/18

350,395

100

Otero County, NM, Jail Project, 6.00%, 4/1/23

97,091

110

Otero County, NM, Jail Project, 6.00%, 4/1/28

105,058

19,500

Puerto Rico Infrastructure Financing Authority, 5.50%, 10/1/32 (1)

20,486,427

3,008

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

3,073,963

8,530

Tobacco Settlement Financing Corp., NJ, 0.00%, 6/1/41

930,111

6,905

Tobacco Settlement Financing Corp., VA, 0.00%, 6/1/47

546,255

3,000

Tobacco Settlement Financing Corp., VA, 5.625%, 6/1/37 (1)

3,310,350

1,415

White Earth Band of Chippewa Indians, MN, 6.375%, 12/1/26

1,353,702

250

Willacy County, TX, Local Government Corp., 6.00%, 3/1/09

254,945

410

Willacy County, TX, Local Government Corp., 6.00%, 9/1/10

411,169

$

58,126,444

Senior Living / Life Care — 4.2%

$

3,210

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

$

2,191,884

1,000

Fairfax County Economic Development Authority, (Goodwin House, Inc.), 5.125%, 10/1/37

909,020

1,700

Fairfax County Economic Development Authority, (Goodwin House, Inc.), 5.125%, 10/1/42

1,521,245

3,240

Logan County, CO, Industrial Development Revenue, (TLC Care Choices, Inc.), 6.875%, 12/1/23 (5)

2,523,377

1,855

Massachusetts Development Finance Agency, (Linden Ponds Inc.), 5.75%, 11/15/35

1,793,321

1,905

Massachusetts Development Finance Agency, (Linden Ponds Inc.), 5.75%, 11/15/42

1,833,982

$

10,772,829

Special Tax Revenue — 2.7%

$

3,280

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

$

3,337,958

190

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

190,367

$

1,150

New Jersey Economic Development Finance Authority, (Cigarette Tax), 5.50%, 6/15/24

$

1,169,481

2,115

New Jersey Economic Development Finance Authority, (Cigarette Tax), 5.75%, 6/15/29

2,192,261

$

6,890,067

Transportation — 4.7%

$

1,500

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

$

1,427,610

2,025

Branson, MO, Regional Airport Transportation Development District, (Branson Airport LLC), (AMT), 6.00%, 7/1/37

1,913,706

915

Branson, MO, Regional Airport Transportation Development District, (Branson Airport LLC), (AMT), 6.00%, 7/1/25

886,223

7,500

Kent County Airport Facility, 5.00%, 1/1/25 (1)

7,547,850

$

11,775,389

Water and Sewer — 1.1%

$

3,405

Massachusetts Water Resources Authority, 4.00%, 8/1/46

$

2,819,000

$

2,819,000

Total Tax-Exempt Investments — 186.5%
(identified cost $455,435,689)

$

468,452,654

Other Assets, Less Liabilities — (34.3)%

$

(86,242,084

)

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (52.2)%

$

(131,029,256

)

Net Assets Applicable to Common Shares — 100.0%

$

251,181,314

AGC

—

Assured Guaranty Corp.

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.

CIFG

—

CDC IXIS Financial Guaranty North America, Inc.

FGIC

—

Financial Guaranty Insurance Company

FSA

—

Financial Security Assurance, Inc.

MBIA

—

Municipal Bond Insurance Association

XLCA

—

XL Capital Assurance, Inc.

Puerto Rico

21.5

%

Texas

19.8

%

Colorado

15.8

%

California

14.4

%

New Jersey

10.7

%

Others, representing less than 10% individually

104.3

%

(1)

Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Trust.

(2)

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, 2007, the aggregate value of the securities is $23,783,860 or 9.5% of the net assets applicable to common shares.

(3)

Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at August 31, 2007.

(4)

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

(5)

Security is in default and making only partial interest payments.

Expiration
Date

Contracts

Position

Aggregate
Cost

Value

Net
Unrealized
Depreciation

12/07

500 U.S. Treasury Bond

Short

$

(55,607,131

)

$

(55,781,250

)

$

(174,119

)

Counterparty

Notional
Amount

Annual
Fixed
Rate Paid
By Fund

Floating Rate
Paid To Fund

Effective Date/
Termination Date

Unrealized
Appreciation
(Depreciation)

Citibank, N.A.

$

7,500,000

5.732

%

3 month USD-
LIBOR-BBA

May 16, 2008/
May 16, 2038

$

(313,746

)

Lehman Brothers Special Financing, Inc.

$

15,000,000

3.896

%

USD-BMA-Municipal
Swap Index

October 23, 2007/
October 23, 2037

$

577,300

Lehman Brothers Special Financing, Inc.

$

10,950,000

5.503

%

3 month USD-
LIBOR-BBA

September 28, 2008/
September 28, 2038

$

(62,372

)

Merrill Lynch Capital Services, Inc.

$

7,500,000

5.817

%

3 month USD-
LIBOR-BBA

April 1, 2008/
April 1, 2038

$

(412,450

)

$

(211,268

)

Aggregate cost

$

368,265,544

Gross unrealized appreciation

$

20,432,755

Gross unrealized depreciation

(7,537,639

)

Net unrealized appreciation

$

12,895,116

By:

/s/ Robert B. MacIntosh

Robert B. MacIntosh
President and Principal Executive Officer

Date:

October 23, 2007

By:

/s/ Robert B. MacIntosh

Robert B. MacIntosh
President and Principal Executive Officer

Date:

October 23, 2007

By:

/s/ Barbara E. Campbell

Barbara E. Campbell
Treasurer and Principal Financial Officer

Date:

October 23, 2007