mhefinal.htm - Generated by SEC Publisher for SEC Filing

UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
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: 08/31/2009

Date of reporting period: 05/31/2009

Item 1 – Schedule of Investments

The Massachusetts Health & Education Tax-Exempt Trust     
Schedule of Investments May 31, 2009 (Unaudited)  (Percentages shown are based on Net Assets) 
      Par   
  Municipal Bonds    (000)  Value 
Massachusetts - 143.1%         
Corporate - 1.9%  Massachusetts State Development Finance Agency, Resource     
  Recovery Revenue Bonds (Ogden Haverhill Associates), AMT,     
  Series A, 6.70%, 12/01/14    $ 555  $ 522,666 
Education - 93.2%  Massachusetts State College Building Authority, Project     
  Revenue Bonds, Series A, 5%, 5/01/31 (a)    1,000  952,620 
  Massachusetts State College Building Authority, Project     
  Revenue Refunding Bonds, Series B, 5.50%, 5/01/39 (b)  825  881,975 
  Massachusetts State Development Finance Agency, Education     
  Revenue Bonds (Belmont Hill School), 5%, 9/01/11 (c)  1,100  1,207,063 
  Massachusetts State Development Finance Agency, Education     
  Revenue Bonds (Xaverian Brothers High School),     
  5.65%, 7/01/29    250  214,350 
                                         Massachusetts State Development Finance Agency, Educational
                                         Facility Revenue Bonds (Academy of the Pacific Rim), Series A,
  5.125%, 6/01/31 (d)    1,000  634,180 
  Massachusetts State Development Finance Agency Revenue     
  Bonds (Boston University), Series T-1, 5%, 10/01/39 (a)  1,000  921,440 
  Massachusetts State Development Finance Agency Revenue     
                                         Bonds (College of Pharmacy and Allied Health Services), Series
  D, 5%, 7/01/27 (e)    500  513,435 
  Massachusetts State Development Finance Agency Revenue     
  Bonds (Franklin W. Olin College), Series B, 5.25%, 7/01/33 (b)  400  387,756 
  Massachusetts State Development Finance Agency Revenue     
  Bonds (Massachusetts College of Pharmacy and Health     
  Sciences), 5.75%, 7/01/13 (c)    1,000  1,175,590 
  Massachusetts State Development Finance Agency Revenue     
  Bonds (Smith College), 5%, 7/01/35    2,000  2,007,200 
  Massachusetts State Development Finance Agency Revenue     
  Bonds (WGBH Educational Foundation), Series A, 5.75%,     
  1/01/42 (a)    1,100  1,117,061 
  Massachusetts State Development Finance Agency Revenue     
  Bonds (The Wheeler School), 6.50%, 12/01/29  540  520,490 
  Massachusetts State Development Finance Agency Revenue     
  Bonds (Williston Northampton School Project), 5%,     
  10/01/25 (b)    500  453,675 
  Massachusetts State Development Finance Agency Revenue     
  Bonds (Worcester Polytechnic Institute), 5%, 9/01/27 (f)  1,985  1,980,137 
  Massachusetts State Development Finance Agency, Revenue     
  Refunding Bonds (Boston University), Series P, 5.45%, 5/15/59  1,500  1,455,000 
  Massachusetts State Development Finance Agency, Revenue     
  Refunding Bonds (Clark University), 5.125%, 10/01/35 (b)  500  498,890 

Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of
the securities have been abbreviated according to the list below.

AMT  Alternative Minimum Tax (subject to)  VRDN  Variable Rate Demand Notes 
HFA  Housing Finance Agency     

1

The Massachusetts Health & Education Tax-Exempt Trust     
Schedule of Investments May 31, 2009 (Unaudited)  (Percentages shown are based on Net Assets) 
      Par   
  Municipal Bonds    (000)  Value 
  Massachusetts State Development Finance Agency, Revenue     
                               Refunding Bonds (Western New England College), Series A, 5%,
  9/01/33 (e)    $ 1,500  $ 1,458,795 
  Massachusetts State Development Finance Agency, Revenue     
  Refunding Bonds (Wheelock College), Series C, 5.25%,     
  10/01/37    1,000  818,010 
  Massachusetts State Health and Educational Facilities     
  Authority Revenue Bonds (Harvard University), Series FF,     
  5.125%, 7/15/37    850  865,045 
  Massachusetts State Health and Educational Facilities     
  Authority Revenue Bonds (Northeastern University), Series R,     
  5%, 10/01/33    225  213,750 
  Massachusetts State Health and Educational Facilities     
  Authority Revenue Bonds (Simmons College), Series F, 5%,     
  10/01/13 (c)(g)    1,000  1,131,170 
  Massachusetts State Health and Educational Facilities     
  Authority Revenue Bonds (Tufts University), 5.375%, 8/15/38  1,000  1,048,400 
  Massachusetts State Health and Educational Facilities     
  Authority Revenue Bonds (University of Massachusetts), Series     
  C, 5.125%, 10/01/34 (f)(g)    230  226,297 
  Massachusetts State Health and Educational Facilities     
  Authority Revenue Bonds (Wheaton College), Series D, 6%,     
  1/01/18    1,040  962,250 
  Massachusetts State Health and Educational Facilities     
  Authority, Revenue Refunding Bonds (Berklee College of     
  Music), Series A, 5%, 10/01/37    1,000  964,700 
  Massachusetts State Health and Educational Facilities     
  Authority, Revenue Refunding Bonds (Boston College), Series     
  N, 5.125%, 6/01/37    1,000  1,009,900 
  Massachusetts State Health and Educational Facilities     
                                Authority, Revenue Refunding Bonds (Learning Center For Deaf
  Children), Series C, 6.125%, 7/01/29    495  373,408 
  Massachusetts State Health and Educational Facilities     
  Authority, Revenue Refunding Bonds (Wellesley College), 5%,     
  7/01/33    1,500  1,528,785 
        25,521,372 
Health - 39.4%  Massachusetts State Development Finance Agency, First     
  Mortgage Revenue Bonds (Edgecombe Project), Series A,     
  6.75%, 7/01/21    855  816,260 
  Massachusetts State Development Finance Agency, First     
  Mortgage Revenue Bonds (Overlook Communities Inc.), Series     
  A, 6.125%, 7/01/24    850  649,170 
  Massachusetts State Development Finance Agency, First     
  Mortgage Revenue Refunding Bonds (Symmes Life Care, Inc. -     
  Brookhaven at Lexington), Series A, 5%, 3/01/35 (h)  1,250  897,937 

2

The Massachusetts Health & Education Tax-Exempt Trust     
Schedule of Investments May 31, 2009 (Unaudited)  (Percentages shown are based on Net Assets) 
    Par   
                                                                       Municipal Bonds                                            (000)  Value 
                                                                       Massachusetts State Development Finance Agency, Human     
                                                                       Service Provider Revenue Bonds (Seven Hills Foundation &     
                                                                       Affiliates), 5%, 9/01/35 (h)  $ 500  $ 399,200 
                                                                       Massachusetts State Development Finance Agency Revenue     
                                                                       Bonds (Massachusetts Council of Human Service Providers,     
                                                                       Inc.), Series C, 6.60%, 8/15/29    425  312,069 
                                                                       Massachusetts State Health and Educational Facilities     
                                                                       Authority, Healthcare System Revenue Refunding Bonds     
                                                                       (Covenant Health System), 6%, 1/01/12 (c)    255  287,178 
                                                                       Massachusetts State Health and Educational Facilities     
                                                                       Authority, Healthcare System Revenue Refunding Bonds     
                                                                       (Covenant Health System), 6%, 7/01/22    630  647,237 
                                                                       Massachusetts State Health and Educational Facilities     
                                                                       Authority, Healthcare System Revenue Refunding Bonds     
                                                                       (Covenant Health System), 6%, 7/01/31    315  315,104 
                                                                       Massachusetts State Health and Educational Facilities     
                                                                       Authority Revenue Bonds (Baystate Medical Center), Series F,     
                                                                       5.75%, 7/01/33    1,000  954,840 
                                                                       Massachusetts State Health and Educational Facilities     
                                                                       Authority Revenue Bonds (Berkshire Health System), Series E,     
                                                                       6.25%, 10/01/31    350  307,328 
                                                                       Massachusetts State Health and Educational Facilities     
                                                                       Authority Revenue Bonds (Berkshire Health System), Series F,     
                                                                       5%, 10/01/19 (e)    1,000  1,010,480 
                                                                       Massachusetts State Health and Educational Facilities     
Authority Revenue Bonds (Lahey Clinic Medical Center), Series
                                                                       D, 5.25%, 8/15/37    1,000  900,990 
                                                                       Massachusetts State Health and Educational Facilities     
Authority Revenue Bonds (Milford-Whitinsville Hospital), Series
                                                                       D, 6.35%, 7/15/12 (c)    750  859,913 
                                                                       Massachusetts State Health and Educational Facilities     
Authority, Revenue Refunding Bonds (Bay Cove Human Services
                                                                       Issue), Series A, 5.90%, 4/01/28    765  568,410 
                                                                       Massachusetts State Health and Educational Facilities     
                                                                       Authority, Revenue Refunding Bonds (Caregroup, Inc.), Series     
                                                                       E-1, 5%, 7/01/28    500  454,165 
                                                                       Massachusetts State Health and Educational Facilities     
                                                                       Authority, Revenue Refunding Bonds (Christopher House),     
                                                                       Series A, 6.875%, 1/01/29    480  400,594 
                                                                       Massachusetts State Health and Educational Facilities     
                                                                       Authority, Revenue Refunding Bonds (Valley Regional Health     
                                                                       System), Series C, 5.75%, 7/01/18 (i)    395  360,690 

3

The Massachusetts Health & Education Tax-Exempt Trust     
Schedule of Investments May 31, 2009 (Unaudited)  (Percentages shown are based on Net Assets) 
      Par   
  Municipal Bonds    (000)       Value 
  Massachusetts State Industrial Finance Agency, Health Care     
  Facility Revenue Bonds (Age Institute of Massachusetts     
  Project), 8.05%, 11/01/25    $ 695  $ 661,626 
        10,803,191 
Housing - 3.5%  Massachusetts State, HFA, Housing Revenue Refunding Bonds,     
  AMT, Series F, 5.70%, 6/01/40    1,000  957,490 
State - 3.3%  Massachusetts State College Building Authority, Project     
  Revenue Bonds, Series A, 5.50%, 5/01/39    500  511,490 
  Massachusetts State Development Finance Agency, Education     
  Revenue Bonds (Middlesex School Project), 5%, 9/01/33  400  383,164 
        894,654 
Transportation - 1.8%  Rail Connections, Inc., Massachusetts, Capital Appreciation     
  Revenue Bonds (Route 128 Parking Garage), Series B, 6.53%,     
  7/01/09 (c)(d)(j)    1,000  502,720 
  Total Municipal Bonds - 143.1%      39,202,093 
  Municipal Bonds Transferred to       
  Tender Option Bond Trusts (k)       
Massachusetts - 7.5%         
State - 7.5%  Massachusetts State School Building Authority, Dedicated Sales     
  Tax Revenue Bonds, Series A, 5%, 8/15/30 (l)  2,010  2,062,297 
  Total Municipal Bonds Transferred to       
  Tender Option Bond Trusts - 7.5%      2,062,297 
  Total Long-Term Investments       
  (Cost-$43,750,337) - 150.6%       
  Short-Term Securities       
Massachusetts - 4.4%  Massachusetts State Health and Educational Facilities     
  Authority, Revenue Refunding Bonds (Partners Healthcare     
  System), VRDN, Series D-1, 0.10%, 6/01/09 (m)  1,200  1,200,000 
  Total Short-Term Securities       
  (Cost - $1,200,000) - 4.4%      1,200,000 
  Total Investments (Cost - $44,307,170*) - 155.0%    42,464,390 
  Other Assets Less Liabilities - 17.4%      4,775,300 
  Liability for Trust Certificates, Including       
  Interest Expense and Fees Payable - (4.9)%    (1,342,653) 
  Preferred Shares, at Redemption Value - (67.5)%    (18,501,303) 
  Net Assets Applicable to Common Shares - 100.0%  $ 27,395,734 

* The cost and unrealized appreciation (depreciation) of investments as of May 31, 2009, as computed for
federal income tax purposes, were as follows:

Aggregate cost  $ 42,950,411 
Gross unrealized appreciation  $ 979,028 
Gross unrealized depreciation                                   (2,804,644) 
Net unrealized depreciation  $ (1,825,616) 

4

The Massachusetts Health & Education Tax-Exempt Trust
Schedule of Investments May 31, 2009 (Unaudited)

(a) AMBAC Insured.
(b) XL Capital Insured.
(c) US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in
full at the date indicated, typically at a premium to par.

(d) ACA Insured.
(e) Assured Guaranty Insured.
(f) NPFGC Insured.
(g) FGIC Insured.
(h) Radian Insured.
(i) Connie Lee Insured.
(j) Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(k) Securities represent bonds transferred to a separate securitization trust established in a tender option bond
transaction in which the Trust may have acquired the residual interest certificates. These securities serve as
collateral in a financing transaction.

(l) FSA Insured.
(m) 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 shown is as of report date and maturity shown is the date
the principal owed can be recovered through demand.

Ÿ Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157,
"Fair Value Measurements", clarifies the definition of fair value, establishes a framework for
measuring fair values and requires additional disclosures about the use of fair value
measurements. Various inputs are used in determining the fair value of investments, which are
as follows:

Ÿ Level 1 - price quotations in active markets/exchanges for identical securities
Ÿ Level 2 - other observable inputs (including, but not limited to: quoted prices for similar
assets or liabilities in markets that are active, quoted prices for identical or similar
assets or liabilities in markets that are not active, inputs other than quoted prices that
are observable for the assets or liabilities (such as interest rates, yield curves,
volatilities, prepayment speeds, loss severities, credit risks and default rates) or other
market-corroborated inputs)

Ÿ Level 3 - unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the Trust's
own assumptions used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the
risk associated with investing in those securities. For information about the Trust's policy
regarding valuation of investments and other significant accounting policies, please refer to the
Trust's most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of May 31, 2009 in determining the fair
valuation of the Trust's investments:

  Investments in 
Valuation Inputs  Securities 
  Assets 
Level 1  - 
Level 2  $ 42,464,390 
Level 3  - 
Total  $ 42,464,390 

5

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 13(a)-15(b) under the Securities 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: July 15, 2009

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: July 15, 2009

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
The Massachusetts Health & Education Tax-Exempt Trust

Date: July 15, 2009