SPARTAN(Registered trademark)
(registered trademark)
FLORIDA
MUNICIPAL
FUNDS
SEMIANNUAL REPORT
MAY 31, 1994
CONTENTS
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PRESIDENT'S MESSAGE 3 Ned Johnson on bond market
strategies.
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO
PERFORMANCE 4 How the fund has done over time.
FUND TALK 7 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 11 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 21 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO
PERFORMANCE 25 How the fund has done over time.
FUND TALK 27 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 29 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 30 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 35 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 39 Notes to the financial statements.
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THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The past few months have been an unsettling time for bond investors. The
bond market declined after the Federal Reserve Board raised short-term
interest rates in February and March. These rate hikes caused bond yields
to rise and bond prices to fall. While nobody knows whether rates will
continue to go up, this may be a good time to review the effect rising
rates have on your bond fund investment, and consider how well your current
bond fund holdings match your original investment goals.
Most investors choose bond funds to generate income and to help diversify
their investment portfolios. Despite the recent market downturn, bond
mutual funds still satisfy these needs. Where investors have felt the
negative effect of rising rates is in the market value of their investment,
which has eroded as bond prices have fallen. It's important to remember,
however, that this loss in principal is only "on paper" until you choose to
sell your shares. That's why your investing time horizon is key.
If your time horizon is short - one year or less - you may want to consider
shifting all or part of your bond fund investment into a money market fund.
If you can't keep your investment in the bond fund until yields start
falling again and bond prices rise, you increase your risk of not recouping
the full value of the shares. A money market fund provides a stable $1
share price and a yield that becomes more attractive as rates go up.
If you don't need your money within the next year, staying in your bond
fund may be the appropriate strategy for you. The longer your investing
time frame, the better your chances of retaining your principal investment
through periods of rising AND falling rates. For example, if you plan to
use your money in one to two years, a short-term bond fund may be the right
choice. If your time frame is two to four years, a fund with an
intermediate length average maturity may be best. If you have a longer-term
goal - say a child's college education that's ten years away - you may be
willing to ride out the bond market's peaks and valleys in exchange for the
higher potential returns of a longer-term fund.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up a regular investment plan using the Fidelity Automatic Account
Builder.
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns,
dividends and yields would have been lower.
TOTAL CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND
Spartan Florida Municipal Income Portfolio -2.30% 2.50% 21.93%
Lehman Brothers Municipal Bond Index -1.83% 2.47% n/a
Average Florida Tax-exempt
Municipal Bond Fund -3.57% 1.22% n/a
Consumer Price Index 1.17% 2.29% 5.89%
CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, one year or since the fund started on March 16,
1992. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, you would end up with $1,050. You can compare these
figures to the performance of the Lehman Brothers Municipal Bond index - a
broad gauge of the municipal bond market. To measure how the fund stacked
up against its peers, you can look at the average Florida municipal bond
fund, which reflects the performance of 54 Florida tax-exempt municipal
bond funds tracked by Lipper Analytical Services. Both benchmarks include
reinvested dividends and capital gains, if any. Comparing the fund's
performance to the consumer price index helps show how your fund did
compared to inflation.
TOTAL AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1994 PAST 1 LIFE OF
YEAR FUND
Spartan Florida Municipal Income Portfolio 2.50% 9.38%
Lehman Brothers Municipal Bond Index 2.47% n/a
Average Florida Tax-exempt
Municipal Bond Fund 1.22% n/a
Consumer Price Index 2.29% 2.67%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
TOTAL $10,000 OVER LIFE OF FUND
Total Total
MonthEnd Value Value
Spart FL Muni Income (427) MUNI BOND INDEX
03/31/92 10000.00 10000.00
04/30/92 10172.61 10089.00
05/31/92 10350.02 10208.05
06/30/92 10575.19 10379.55
07/31/92 11028.25 10690.93
08/31/92 10779.39 10586.16
09/30/92 10823.44 10654.97
10/31/92 10580.51 10550.55
11/30/92 10944.39 10739.41
12/31/92 11095.24 10848.95
01/31/93 11245.75 10974.80
02/28/93 11812.46 11372.08
03/31/93 11626.24 11251.54
04/30/93 11765.70 11365.18
05/31/93 11841.81 11428.83
06/30/93 12066.54 11619.69
07/31/93 12101.29 11634.79
08/31/93 12393.62 11876.80
09/30/93 12566.59 12012.19
10/31/93 12600.06 12035.02
11/30/93 12423.64 11929.11
12/31/93 12745.45 12180.81
01/31/94 12914.00 12319.67
02/28/94 12524.91 12000.59
03/31/94 11935.21 11512.17
04/30/94 12024.45 11610.02
05/31/94 12139.04 11711.03
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Florida Municipal Income Portfolio on March 31, 1992, shortly after the
fund started. As the chart shows, by May 31, 1994, the value of your
investment would have grown to $12,139 - a 21.39% increase on your initial
investment. This assumes you still own the fund on May 31, and therefore
does not include the effect of the $5 account closeout fee. For comparison,
look at how the Lehman Brothers Municipal Bond index did over the same
period. With dividends reinvested, the same $10,000 would have grown to
$11,711 - a 17.11% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
MARCH 16, 1992
SIX MONTHS YEAR (COMMENCEME
ENDED ENDED NT
MAY 31, NOVEMBER 30, OF OPERATIONS) T
1994 1993 O
NOVEMBER 30,
1992
Dividend return 2.60% 6.10% 4.74%
Capital appreciation return -4.90% 7.41% 5.19%
Total return -2.30% 13.51% 9.93%
DIVIDEND returns, capital appreciation returns are both part of a bond
fund's total return. An income return reflects the dividends paid by the
fund. A capital gain return reflects the amount paid by the fund to
shareholders based on the profits it has from selling bonds that have grown
in value. Both returns assume the dividends or gains are reinvested.
Changes in the fund's share price include changes in the prices of the
bonds owned by the fund. Change in share price and total return figures
include the effect of the
$5 account closeout fee.
TOTAL DIVIDENDS AND YIELD
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PERIODS ENDED MAY 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 5.01(cents) 29.41(cents) 59.54(cents)
Annualized dividend rate 5.62% 5.40% 5.34%
30-day annualized yield 5.68% - -
30-day annualized tax-equivalent yield 8.88% - -
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DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.48 over
the past month, $10.95 over the past six months and $11.15 over the past
year, you can compare the fund's income over these two periods. The 30-day
annualized YIELD is a standard formula for all funds based on the yields of
the bonds in the fund, averaged over the past 30 days. This figure shows
you the yield characteristics of the fund's investments at the end of the
period. It also helps you compare funds from different companies on an
equal basis. The tax-equivalent yield shows what you would have to earn on
a taxable investment to equal the fund's tax-free yield, if you're in the
36% combined federal tax bracket.
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Anne Punzak,
Portfolio Manager of Spartan
Florida Municipal Income Portfolio
Q. ANNE, HOW HAS THE FUND PERFORMED?
A. It has been a difficult period both for the fund and municipal bond
market in general, although the fund held up better than many of its
competitors. Total return for the six months ended May 31, 1994, was
- - -2.30%. That compared to the average Florida municipal bond fund, which
returned -3.57% for the same period, according to Lipper Analytical
Services. For the year ended May 31, 1994, the fund had a total return of
2.50%. That beat the average Florida municipal fund's return of 1.22%,
according to Lipper.
Q. WHY DID THE MUNICIPAL BOND MARKET FALL?
A. Simply put, higher interest rates. Throughout October and into November,
short-term interest rates remained fairly stable. But by mid-November,
fears of inflation caused rates to rise slightly. Until the end of January,
rates moved within a narrow range. During this period, the Federal Reserve
Board seemed content to keep the federal funds rate - the rate banks charge
each other for overnight loans - at 3.00%, where it had been since
September 1992. On February 4, the Fed reversed that policy, raising the
fed funds rate to 3.25%. And through May, the Fed moved three more times,
raising fed funds to 4.25%. The Fed rate hikes were a preemptive strike
against inflation. The economy appeared to be heating up and the Fed seemed
determined to keep inflation in check. However, the move still worried bond
investors, who dislike any mention of inflation because it erodes the value
of their bonds' interest income, which is paid at a fixed rate. As a
result, bond prices fell from February through early May. In recent weeks,
though, the market has started to stabilize.
Q. DESPITE THE DOWNDRAFT, THE FUND WAS ABLE TO BEAT THE AVERAGE. WHAT WERE
SOME POSITIVES FOR THE FUND?
A. Fortunately, the fund was positioned fairly conservatively, with an
emphasis on bonds with maturities of less than 20 years. The fund's
duration - which is a measure of sensitivity to changes in interest rates -
was shorter than many other funds of its kind. The shorter the fund, the
less sensitive it is to rising interest rates. On May 31, 1994, about 60%
of the fund was invested in issues with 20-year or shorter maturities.
Also, there is a fairly strong investor demand for intermediate bonds in
the five- to 15-year range. As a result, these bonds, which were about 26%
of the fund's total investments at the end of May, didn't fall as much as
longer bonds.
Q. WHAT CHANGES IN TERMS OF QUALITY DID YOU MAKE TO THE FUND DURING THE
PAST SIX MONTHS?
A. I built up the fund's stake in Baa-rated bonds to 31% at the end of May,
compared to 11% six months earlier. Their relatively high yields - or
interest payments - helped offset some of the decline in price, which
improved the fund's performance. Also, as the economy improved, so did the
credit quality of many of these bonds. I also invested in some non-rated
bonds for similar reasons. About 8% of the bonds in the fund have no rating
from either Moody's or Standard & Poor's.
Q. ARE NON-RATED BONDS MORE RISKY THAN RATED BONDS?
A. Not necessarily. For example, one non-rated issue that I found
attractive was Johnson and Wales, which is a university specializing in
culinary arts and food service with branches located in Florida. The bond
wasn't rated because it was a relatively small issue and didn't really fall
into a category typically rated by the agencies. But the bonds offered
about 0.20% more in yield than other comparable rated bonds. As the
profession started to gain more respectability and the school enjoyed a
higher profile, its financial position improved.
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. DO YOU USE THESE
TYPES OF CONTRACTS?
A. Yes, I use futures, which is one type of financial derivative - meaning
its market value is derived from an underlying security or index. Earlier
in 1994, I used futures to hedge against the market's sell-off. When the
market fell, the price of the futures rose, offsetting some of the fund's
price decline. Now I'm using municipal futures as a way of taking advantage
of what I think will be a more positive environment for municipal bonds. If
I'm right, the futures will appreciate, and help the fund. We have used
futures and options in our municipal bond funds for many years. More
recently I've started to use another type of derivative known as an inverse
floater - whose yield rises as short-term rates fall, and vice versa. These
securities typically are created by splitting a municipal bond into two
parts: a tax-free money market instrument yielding the prevailing
short-term rate and a longer-term security whose yield moves in the
opposite direction when money market rates change. The latter piece is
called an inverse floater. By using various derivatives, I can achieve
higher levels of tax-exempt income and increased flexibility in managing
overall sensitivity to changes in interest rates. However, I've limited the
use of inverse floaters - to less than 5% of the fund's total investments
as of May 31, 1994.
Q. WHAT'S AHEAD FOR INVESTORS?
A. I'm somewhat optimistic about Florida municipal bonds. The gains in the
state's economy seem to be sustainable, and Florida has benefited from
improvements in Latin American economies. Also, supply and demand factors
are starting to work in municipal bonds' favor. This year the supply of new
Florida bonds issued from January to May was only about 40% of what it was
in the
same period last year. Shortages may crop up soon, which should help boost
Florida municipal prices. In my opinion, the market overreacted to higher
interest rates, and municipals are an attractive investment now. Even
though we may not have seen the last move on the Fed's part, the half-point
hike in May seems to have helped stabilize the market. While I would not
rule out some future short-term market volatility, it probably won't be as
dramatic as in the past six months.
FUND FACTS
GOAL: high current income
exempt from federal income
tax and the Florida intangible
personal property tax by
investing mainly in long-term,
investment-grade Florida
municipal bonds
START DATE: March 16, 1992
SIZE: as of May 31, 1994,
more than $392 million
MANAGER: Anne Punzak,
since March 1992; manager,
Fidelity Aggressive Tax-Free
Fund, since January 1986;
Fidelity High Yield Tax-Free
Fund, since
October 1993; Spartan
Aggressive Municipal Bond
Fund, since April 1993;
Fidelity Insured Tax-Free
Fund, October 1989 to
September 1993; joined
Fidelity in 1985
(checkmark)
ANNE PUNZAK'S STRATEGY:
"When interest rates were
falling, as they did over the
past couple of years, it paid to
concentrate on price
appreciation more than
income as the way to get the
highest total return. As
interest rates fell, the price of
bonds rose. But now, it looks
fairly certain that interest
rates won't come down much
from current levels. Given
that, I'll focus on generating a
higher income. In my opinion,
lower-rated bonds that are
carefully researched by
Fidelity's staff - which is one
of the largest in the industry
- - - should help boost the
fund's total return. With
further improvements in the
economy, the credit quality of
these lower-rated bonds most
likely will improve."
(bullet) Transportation bonds are
the fund's largest sector
concentration at 18.7% of the
fund's investments. They are
backed primarily by tolls and
excise taxes and have strong
credit quality. Health care
bonds are the fund's second
largest sector concentration
at 17.8% of the fund's
investments. They are
attractive because of
relatively high yields.
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF MAY 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO
Transportation 18.7 19.8
Health Care 17.8 18.1
Electric Revenue 13.9 19.9
Water & Sewer 11.5 10.9
General Obligation 10.1 10.3
AVERAGE YEARS TO MATURITY AS OF MAY 31, 1994
6 MONTHS AGO
Years 18.6 19.7
AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF MAY 31, 1994
6 MONTHS AGO
Years 8.9 8.5
DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%, FOR EXAMPLE, THE SHARE PRICE OF A FUND WITH A
FIVE-YEAR DURATION WILL FALL 5%.
QUALITY DIVERSIFICATION AS OF MAY 31, 1994
(MOODY'S RATINGS)
Row: 1, Col: 1, Value: 43.7
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 30.8
Row: 1, Col: 4, Value: 8.5
Aaa 43.7%
Aa, A 14.0%
Baa 30.8%
Non-rated 8.5%
THIS CHART EXCLUDES SHORT-TERM INVESTMENTS. WHERE MOODY'S RATINGS ARE NOT
AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO
INVESTMENTS MAY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 97.0%
MOODY'S PRINCIPAL VALUE
RATINGS (E) AMOUNT (NOTE 1)
FLORIDA - 77.2%
Alachua County Health Facs. Auth. Health
Facs. Rev.:
Rfdg. (Santa Fe Healthcare Facs. Proj.)
6% 11/15/09 Baa $ 1,950,000 $ 1,796,438
6.05% 11/15/09 Baa 3,500,000 3,154,375
(Beverly Enterprises Proj.) 10.125%
4/1/10 - 860,000 969,650
(Santa Fe Healthcare Facs. Proj.)
7.60% 11/15/13 Baa 1,000,000 1,061,250
Bay County Ind. Dev. Correctional Facs. Rev.
(Corrections Corp. America Proj.)
Series A, 8.875% 11/1/05 (b) - 2,855,000 2,969,200
Brevard County Health Facs. Auth. Rev. Rfdg.
(Wuesthoff Mem. Hosp.) Series B,
7.20% 4/1/13 Baa1 750,000 766,875
Broward County Health Facs. Auth. Hosp. Rev.
(Holy Cross Hosp. Inc.) 5.85% 6/1/12,
(AMBAC Insured) Aaa 2,000,000 1,957,500
Broward County School Dist. Rfdg.
5.60% 2/15/07 A1 2,000,000 1,947,500
Cape Canaveral Hosp. Dist. Ctfs. Rev.
6.875% 1/1/21, (AMBAC Insured) Aaa 250,000 259,063
Citrus County Poll. Cont. Rev. Rfdg.
(Florida Pwr. Corp. Crystal River)
Series A, 6.625% 1/1/27 A1 2,700,000 2,770,875
Clay County Util. Sys. Rev. Rfdg. Series B, 5%
11/1/17, (FGIC Insured) Aaa 1,000,000 845,000
Collier County Ind. Dev. Auth. Retirement Rent
Hsg. Rev. Rfdg. (Beverly Enterprises Proj.)
10.75% 3/1/03 (f) - 1,345,000 1,600,550
Collier County Wtr. Swr. Dist. Wtr. Rev. 6.375%
7/1/10, (FGIC Insured) Aaa 1,000,000 1,030,000
Dade County Aviation Rev. Series B,
(MBIA Insured) (b):
6.25% 10/1/05 Aaa 2,000,000 2,097,500
6.55% 10/1/13 Aaa 2,000,000 2,042,500
Dade County Edl. Facs. Auth. Rev. Rfdg.
(Intl. Univ. Proj.) 5% 10/1/16,
(MBIA Insured) Aaa 2,000,000 1,707,500
(Univ. of Miami) 5.125% 4/1/09,
(MBIA Insured) Aaa 1,475,000 1,353,313
Dade County Pub. Facs. Rev. Rfdg.
(Jackson Mem. Hosp.) Series A, 4.75%
6/1/10, (MBIA Insured) Aaa 3,540,000 3,035,550
Dade County Wtr. & Swr. Sys. Rev. Rfdg. 5%
10/1/13, (FGIC Insured) Aaa 3,970,000 3,458,863
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (E) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Delray Beach Wtr. & Swr. Rev. Series B,
(AMBAC Insured):
0% 10/1/12 Aaa $ 4,475,000 $ 1,420,813
0% 10/1/13 Aaa 2,760,000 814,200
0% 10/1/14 Aaa 4,400,000 1,215,500
Dunedin Hosp. Rev. (Mease Health Care)
(MBIA Insured):
5.25% 11/15/06 Aaa 1,400,000 1,345,750
6.75% 11/15/21 Aaa 1,000,000 1,108,750
Dunedin Util Sys. Rev. Rfdg. 6.25% 10/1/11,
(FGIC Insured) Aaa 1,360,000 1,411,000
Dunes Commty. Dev. Dist. Rev. Rfdg.
(Wtr. & Swr. Proj.) 6.10% 10/1/18 A3 1,500,000 1,486,875
Duval County Hsg. Fin. Auth. Single Family
Mtg. Rev. Series C, 7.70% 9/1/24,
(FGIC Insured) (GNMA Coll.) Aaa 745,000 776,663
Escambia County Health Facs. Auth. Rev.
(Baptist Hosp. & Baptist Manor):
Rfdg. Series B, 6% 10/1/94 BBB+ 2,400,000 2,211,000
6.75% 10/1/14 (f) BBB+ 3,250,000 3,262,188
Escambia County Hsg. Fin. Auth. Single Family
Mtg. Rev. (Multi-County Prog.) Series A,
6.90% 4/1/20 (b) Aaa 1,000,000 1,033,750
Escambia County Poll. Cont. Rev. Rfdg.
(Gulf Pwr. Co. Proj.) 6.75% 3/1/22 A2 2,000,000 2,075,000
Escambia County Util. Auth. Util. Sys. Rev.
Series B, 6.25% 1/1/15, (FGIC Insured) Aaa 1,500,000 1,524,375
Florida Board Ed. Cap. Outlay (Pub. Ed.):
Series A, 6.75% 6/1/21 Aa 1,870,000 1,958,825
Series B, 6.70% 6/1/22 Aa 2,250,000 2,334,375
Unltd. Tax, Series C, 6.625% 6/1/22 Aa 1,000,000 1,032,500
Florida Div. Board Fin. Dept. Gen. Svcs. Rev.
(Dept. of Natural Resources Preservation)
Series 2000 A, (MBIA Insured):
6.25% 7/1/07 Aaa 1,000,000 1,051,250
6.25% 7/1/08 Aaa 2,500,000 2,618,750
6.75% 7/1/08 Aaa 1,350,000 1,471,500
4.90% 7/1/13 Aaa 2,000,000 1,720,000
Florida Hsg. Fin. Agcy. Single Family Mtg. Rev.
Series A, 7.90% 1/1/16 AA 495,000 498,094
Florida Mid-Bay Bridge Auth. Rev. Series A:
7.50% 10/1/17 - 1,700,000 1,821,125
6.875% 10/1/22 - 3,000,000 3,266,250
Florida Muni. Pwr. Agcy. Rev. Rfdg.
(Stanton II Proj.) (AMBAC Insured):
4.50% 10/1/16 Aaa 3,000,000 2,366,250
4.50% 10/1/27 Aaa 2,645,000 1,963,913
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (E) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Florida Tpk. Auth. Tpk. Rev. Series A:
Rfdg.:
5.10% 7/1/04, (FGIC Insured) Aaa $ 1,000,000 $ 977,500
5.25% 7/1/06, (FGIC Insured) Aaa 1,500,000 1,456,875
5.90% 7/1/06, (FGIC Insured) Aaa 5,000,000 5,100,000
5.25% 7/1/11, (FGIC Insured) Aaa 3,000,000 2,741,250
7.20% 7/1/11, (AMBAC Insured) Aaa 1,500,000 1,696,875
6.30% 7/1/12, (FGIC Insured) Aaa 1,000,000 1,022,500
5% 7/1/16, (FGIC Insured) Aaa 2,000,000 1,710,000
5% 7/1/19, (FGIC Insured) Aaa 2,100,000 1,764,000
6.35% 7/1/22, (FGIC Insured) Aaa 1,130,000 1,146,950
Gainesville Util. Sys. Rev. Series A, 6.50%
10/1/22 Aa 1,225,000 1,254,094
Greater Orlando Aviation Auth. Arpt. Facs. Rev.:
Rfdg. Series D, 6.20% 10/1/08,
(AMBAC Insured) Aaa 1,000,000 1,028,750
Series A, (FGIC Insured) (b):
6.50% 10/1/05 Aaa 3,550,000 3,767,438
6.375% 10/1/21 Aaa 3,000,000 3,011,250
Hernando County Ind. Dev. Rev. Rfdg.
(Beverly Enterprises, Inc.) 10% 9/1/11 - 1,000,000 1,152,500
Hillsborough County Aviation Auth. Rev. Rfdg.
(Tampa Int'l. Arpt.):
Series A, 6.90% 10/1/11, (FGIC Insured) Aaa 4,250,000 4,526,250
Series B, 5.30% 10/10/06, (FGIC Insured) Aaa 2,075,000 2,004,969
Hillsborough County Cap. Impt. Rev.
(County Proj.) 2nd Series, 6.75% 7/1/22 A 3,120,000 3,248,700
Hillsborough County Envir. Sensitive Land
Acquisition & Protection Ltd. Tax 6.375%
7/1/11 A 2,000,000 2,045,000
Hillsborough County Ind. Dev. Auth. Ind. Dev. Rev.
(MBIA Insured):
5.60% 8/15/07 Aaa 1,000,000 982,500
5.75% 8/15/10 Aaa 1,000,000 973,750
Hillsborough County Util. Rev. Rfdg.:
(Cap. Appreciation) Series A:
0% 8/1/05 Aaa 17,445,000 9,115,013
0% 8/1/06 Aaa 13,000,000 6,337,500
0% 8/1/07 Aaa 9,250,000 4,197,188
Series A:
6.625% 8/1/11, (MBIA Insured) Aaa 1,750,000 1,820,000
7% 8/1/14 Baa1 1,245,000 1,288,575
Homestead Spl. Ins. Assessment Rev. (Hurricane
Andrew Covered Claims) (MBIA Insured):
3.85% 3/1/95 Aaa 1,750,000 1,754,375
5% 3/1/01 Aaa 3,000,000 2,977,500
Indian River County Wtr. & Swr. Rev. Rfdg.
Series A, 5.50% 9/1/11, (FGIC Insured) Aaa 2,000,000 1,870,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (E) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Jacksonville Elec. Auth. Rev. Rfdg.
(St. John's River Park Pwr. Sys. #2):
Series 7, 5.75% 10/1/12 Aa1 $ 1,250,000 $ 1,207,813
Series 8:
5.512% 10/1/07 Aa1 1,000,000 938,750
5.50% 10/1/13 Aa1 2,000,000 1,865,000
Jacksonville Excise Tax Rev. Rfdg. 6.25%
10/1/05, (AMBAC Insured) Aaa 2,000,000 2,115,000
Jacksonville Health Facs. Auth. Hosp. Rev.:
Rfdg. (Methodist Hosp. Proj.)
Series A, 8% 10/1/15 - 1,010,000 915,313
(Baptist Med. Ctr.) Series A, 7.30% 6/1/19,
(MBIA Insured) Aaa 500,000 543,750
Jacksonville Health Facs. Auth. Ind. Dev. Rev.:
(Cypress Village Proj.) 7% 12/1/14 Baa1 1,000,000 1,011,250 Rfdg.
(Cypress Village Proj.):
(Nat'l. Benevolent Assoc.) 7% 12/1/22 Baa1 2,000,000 2,005,000
(Nat'l. Benevolent Assoc.) 6.25% 12/1/23 Baa1 2,000,000 1,850,000
Jacksonville Hosp. Rev. (Univ. Med. Ctr.)
(Connie Lee Insured):
6.50% 2/1/07 AAA 2,000,000 2,085,000
6.60% 2/1/21 AAA 1,275,000 1,303,688
Jacksonville Ind. Dev. Rev. Rfdg.
(Cargill, Inc. Proj.) 6.40% 3/1/11 (c) AA- 1,250,000 1,278,125
Jacksonville Wtr. & Swr. Gen. Waterwks. Dev.
Rev. (Jacksonville Suburban Utils.) 6.75%
6/1/22 (b) A2 1,915,000 2,005,963
Key West Util. Board Elec. Rev. Rfdg. 0%
10/1/14, (AMBAC Insured) Aaa 6,755,000 1,882,956
Kissimmee Util. Auth. Elec. Sys. Rev. Rfdg. &
Impt. 5.25% 10/1/18, (FGIC Insured) Aaa 1,000,000 875,000
Kissimmee Wtr. & Swr. Rev. Rfdg. 6% 10/1/11,
(AMBAC Insured) Aaa 2,000,000 2,007,500
Lake Worth Rfdg. 5.80% 10/1/05,
(AMBAC Insured) Aaa 1,000,000 1,006,250
Largo Sun Coast Health Sys. Rev. 6.20%
3/1/13 BBB- 5,000,000 4,387,500
Lee County Cap. Impt. Rev. Rfdg. Series B,
(MBIA Insured):
0% 10/1/11 Aaa 1,975,000 673,969
0% 10/1/12 Aaa 1,060,000 336,550
Lee County Ind. Dev. Auth. Econ. Dev. Rev.
Rfdg. (Encore Nursing Ctr.) (Beverly
Enterprises, Inc.) 8.125% 12/1/07 - 950,000 989,188
Leesburg Hosp. Rev. Rfdg. (Leesburg Reg.
Med. Ctr. Proj.) Series B, 5.625% 7/1/13 Baa1 2,250,000 1,957,500
Leon County 5.50% 10/1/07,
(MBIA Insured) Aaa 1,000,000 978,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (E) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Marion County Hosp. Dist. Rev. Rfdg.
(Munroe Regional Med. Ctr.) 6.25% 10/1/12,
(FGIC Insured) Aaa $ 1,000,000 $ 1,011,250
Melbourne Wtr. & Swr. Rev. Rfdg. Series A,
6.50% 10/1/14, (FGIC Insured) Aaa 1,000,000 1,027,500
Miami Beach Health Facs. Auth. Hosp. Rev. Rfdg.
(Mt. Sinai Med. Ctr. Proj.) (Cap. Gtd. Insured):
6.25% 11/15/08 Aaa 2,000,000 2,077,500
6.25% 11/15/19 Aaa 1,850,000 1,856,938
Miami Beach Redev. Agcy. Tax Increment Rev.
(City Center Proj.) (b):
5.80% 12/1/13 Baa 1,000,000 886,250
5.875% 12/1/22 Baa 1,000,000 865,000
Miami Sports & Exhibit Auth. Spl. Oblig. Rfdg.
Series A, 6.15% 10/1/09, (FGIC Insured) Aaa 1,500,000 1,530,000
Naples Hosp. Rev. Rfdg. (MBIA Insured):
(Community Hosp. Proj.) 5% 10/1/19 Aaa 1,000,000 836,250
(Naples Commty. Hosp., Inc. Proj.)
5.10% 10/1/07 Aaa 3,205,000 3,012,700
Nassau County Poll. Cont. Rev. Rfdg.:
(ITT Rayonier Proj.):
7.65% 6/1/06 Baa2 1,415,000 1,521,125
6.25% 6/1/10 Baa2 9,500,000 9,464,375
6.20% 7/1/15 Baa 1,000,000 978,750
North Broward Hosp. Dist. Rev. (MBIA Insured):
Rfdg. 6.40% 1/1/06 Aaa 950,000 1,007,000
6.50% 1/1/12 Aaa 350,000 360,938
North Miami Edl. Facs. Rev. (Johnson & Wales
Univ. Proj.) Series A, 6.125% 4/1/20 - 6,605,000 5,961,013
Orange County Health Facs. Auth.
(Orlando Reg. Healthcare) Series A, 5.75%
11/1/07, (MBIA Insured) Aaa 2,000,000 1,992,500
Orange County Hsg. Fin. Auth. Mtg. Rev.
Series A, 7.875% 9/1/10 (b) AAA 375,000 389,063
Orange County Sales Tax Rev.
Series B, 5.375% 1/1/24 A1 6,500,000 5,744,375
Orange County Solid Waste Facs. Rev. 6.25%
10/1/12, (FGIC Insured) Aaa 2,175,000 2,204,906
Orange County Tourist Dev. Tax Rev. Rfdg.
Series A, (MBIA Insured):
5.85% 10/1/08 Aaa 1,795,000 1,817,438
5.90% 10/1/09 Aaa 1,250,000 1,265,625
Orlando Util. Commission Wtr. & Elec. Rev.:
Rfdg. Sub-Series D:
6.75% 10/1/17 Aa 1,000,000 1,072,500
5% 10/1/23 Aa 2,375,000 1,962,344
Sub-Series A, 6.50% 10/1/20 Aaa 1,405,000 1,529,694
7.902%, 10/31/13 INFL (d) Aa 3,000,000 2,640,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (E) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Osceola County Gas Tax Rev. Rfdg. & Impt.
6% 4/1/09, (FGIC Insured) Aaa $ 1,915,000 $ 1,934,150
Palm Beach County Arpt. Sys. Rev. Rfdg.
6.375%, 10/1/14, (MBIA Insured) Aaa 1,000,000 1,021,250
Pinellas Park Pub. Impt. Rev. Rfdg.
Series A, 5% 10/1/13 (FGIC Insured) Aaa 1,000,000 866,250
Pinellas Sun Coast Health Rev. 8.50% 3/1/20 BBB- 2,945,000 3,430,488
Plantation Health Facs. Auth. Rev.
(Covenant Retirement Communities Inc.)
7.75% 12/1/22 - 2,500,000 2,512,500
Polk County Ind. Dev. Auth. Ind. Dev. Rev.
(Winter Haven Hosp.) Series 2, 6.25%
9/1/15, (MBIA Insured) Aaa 1,500,000 1,501,875
Reedy Creek Impt. Dist. Util. Rev.
(Cap. Appreciation) Series 1991-1, 6.25%
10/1/11, (MBIA Insured) Aaa 3,500,000 3,745,000
St. John's County Ind. Dev. Auth. Rev.:
Rfdg. (Vicars Landing Proj.)
Series A, 6.75% 2/15/12 - 4,000,000 3,820,000
(Flagler Hosp. Proj.) 6% 8/1/22 A 4,490,000 4,198,150
St. Lucie County Solid Waste Disp. Rev.
(Florida Pwr. & Lt. Co. Proj.)
6.70% 5/1/27 (b) A2 2,000,000 2,042,500
St. Petersburg Health Facs. Auth. Rev.:
(Allegheny Health Sys.) Series A, 7% 12/1/15,
(MBIA Insured) Aaa 1,000,000 1,071,250
(Allegheny Health Sys.-St. Mary's) 7% 12/1/21,
(MBIA Insured) Aaa 1,500,000 1,606,875
Sarasota Wtr. & Swr. Util. Rev. First Rfdg.
9.305% 10/1/11, (FGIC Insured) INFL (d) Aaa 2,000,000 2,077,500
Seminole County Wtr. & Swr. Rev. Rfdg. & Impt.
(MBIA Insured):
6% 10/1/09 Aaa 1,500,000 1,524,375
6% 10/1/12 Aaa 1,500,000 1,501,875
Sumter County School Dist. Rev.
(Multi-Dist. Loan Prog.) 7.15% 11/1/15,
(Cap. Guaranty Insured) Aaa 1,000,000 1,115,000
Sunrise Pub. Facs. Rev. Series B, 0% 10/1/13,
(MBIA Insured) Aaa 2,840,000 859,100
Sunrise Spl. Tax Dist. #1 Rfdg. 6.375% 11/1/21,
LOC Bayer Hypotheken Bank Aa1 2,000,000 1,987,500
Tallhassee Health Facs. Facs. Rev. Rfdg.
(Talahassee Mem. Regional Med.) Series B, 6%
12/1/09, (MBIA Insured) Aaa 2,000,000 2,017,500
Tallahassee Muni. Elec. Rev. Series B, 6.20%
10/1/12 Aa 4,500,000 4,522,500
Tampa Cap. Impt. Proj. Rev. Series B:
8.25% 10/1/05 BBB 4,500,000 4,815,000
8.375% 10/1/18 A- 1,800,000 1,935,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (E) AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Tampa Rev.:
(Allegheny Health Sys.-St. Joseph)
6.75% 12/1/17, (MBIA Insured) Aaa $ 150,000 $ 155,625
5.125% 12/1/23 Aaa 2,115,000 1,781,888
Tampa Wtr. & Swr. Rev.:
Series A-1, 9.410% 10/1/06,
(FGIC Insured), INFL (d) Aaa 3,000,000 3,221,250
5% 10/1/14 Aaa 1,000,000 863,750
Tarpon Springs Health Facs. Auth. Hosp. Rev.
(Helen Ellis Mem. Hosp. Proj.):
7.50% 5/1/11 BBB- 1,225,000 1,243,375
7.625% 5/1/21 BBB- 4,245,000 4,329,900
Vero Beach Wtr. & Swr. Rev. Rfdg.
Series B, 5% 12/1/21 (FGIC Insured) Aaa 1,000,000 835,000
297,354,775
PUERTO RICO - 15.2%
Puerto Rico Commonwealth Aqueduct & Swr.
Auth. Rev. Series A, 7.875% 7/1/17 Baa 1,000,000 1,090,000
Puerto Rico Commonwealth Gen. Oblig.
5% 7/1/21 Baa1 7,340,000 6,138,075
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Hwy. Rev.:
Rfdg. Series X, 5.50% 7/1/15 Baa1 5,000,000 4,556,250
Series T, 6.625% 7/1/18 Baa 1,500,000 1,659,375
Series W:
5.50% 7/1/13 Baa1 8,000,000 7,370,000
5.50% 7/1/15 Baa1 7,000,000 6,378,750
5.50% 7/1/17 Baa1 2,500,000 2,240,625
6.625% 7/1/18 Baa1 6,000,000 6,135,000
Puerto Rico Commonwealth Infrastructuring Fing.
Auth. Spl. Series A, 7.50% 7/1/09 Baa1 1,000,000 1,087,500
Puerto Rico Commonwealth Rfdg. & Impt. Unltd. Tax:
5.30% 7/1/04 Baa1 2,000,000 1,952,500
5.50% 7/1/13 Baa1 3,000,000 2,771,250
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Rfdg. Series N, 7.125% 7/1/14 Baa1 800,000 846,000
Rfdg. Series S, 6.125% 7/1/09 Baa1 2,000,000 2,020,000
Series P, 7% 7/1/21 Baa1 4,450,000 4,717,000
Series T, 6% 7/1/16 Baa1 2,720,000 2,631,600
Puerto Rico Pub. Bldgs. Auth. Rev. Rfdg.
Series L, 5.50% 7/1/21 Baa1 3,000,000 2,692,500
Puerto Rico Pub. Ed. & Health Facs. Rfdg.
Series M, 5.75% 7/1/15 Baa1 1,000,000 937,500
Puerto Rico Tel. Auth. Rev. 6.78% 1/1/04,
(AMBAC Insured), INFL (d) Aaa 4,000,000 3,510,000
58,733,925
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (E) AMOUNT (NOTE 1)
U.S. VIRGIN ISLANDS - 1.7%
Virgin Islands Pub. Fin. Auth. Rev. Rfdg.
Series A, 7.25% 10/1/18 (b) - $ 6,300,000 $ 6,615,000
GUAM - 2.9%
Guam Arpt. Auth. Gen. Rev.
Series B:
6.40% 10/1/05 (b) BBB 2,500,000 2,518,750
6.60% 10/1/10 BBB 1,500,000 1,507,500
6.70% 10/1/23 BBB 3,950,000 3,969,750
Guam Pwr. Auth. Rev.:
Series A:
5.25% 10/1/13 BBB 1,250,000 1,079,688
6.30% 10/1/22 BBB 2,150,000 2,096,237
11,171,925
TOTAL MUNICIPAL BONDS
(Cost $381,367,855) 373,875,625
MUNICIPAL NOTES (A) - 3.0%
FLORIDA - 3.0%
Dade County Ind. Dev. Auth. Ind. Dev. Rev.
(Dolphins Stadium Proj.) Series 1985 B,
3.15%, LOC Citibank, Marine Midland
Bank, VRDN VMIG 1 2,500,000 2,500,000
Dade County Ind. Dev. Rev. (Montenay Dade
Ltd. Proj.) Series 1990 A, 2.40%,
LOC Banque Paribas, VRDN A-1 2,000,000 2,000,000
Dade County Wtr. & Swr. Sys. Rev. 2.85%
(FGIC Insured) ), VRDN VMIG 1 5,900,000 5,900,000
Hillsborough County Ind. Dev. Auth. Poll. Cont.
Rev. Rfdg. (Tampa Elec. Co. Proj.)
Series 1990, 1.90%, VRDN - 1,000,000 1,000,000
TOTAL MUNICIPAL NOTES
(Cost $11,400,000) 11,400,000
TOTAL INVESTMENTS - 100%
(Cost $392,767,855) $ 385,275,625
FUTURES CONTRACTS
AMOUNT IN THOUSANDS EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
10 Municipal Bond Index Contracts Sept. 1994 $ 905,938 $ (8,841)
THE VALUE OF FUTURES CONTRACTS PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - .2%
SELL
80 U.S. Treasury Bond Contracts Sept. 1994 8,210,000 9,897
THE VALUE OF FUTURES CONTRACTS SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.4%
$ 1,056
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(c) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $1,278,125 or .3% of net
assets.
(d) Coupon is inversely indexed to a floating interest rate. The price will
be more volatile than the price of a comparable fixed rate security. The
rate shown is the rate at period end.
(e) Standard & Poor's Corporation credit ratings are used in the
absence of a rating by Moody's Investors Service, Inc.
(f) A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $4,862,738.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investments for the period ended is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 55.3% AAA, AA, A 73.3%
Baa 21.8% BBB 13.6%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 8.5%. FMR
has determined that unrated debt securities that are lower quality account
for 4.8% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investments, is as follows:
Transportation 18.7%
Health Care 17.8
Electric Revenue 13.9
Water & Sewer 11.5
General Obligation 10.1
Others
(individually less than 10%) 28.0
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1994 the aggregate cost of investment securities for income tax
purposes was $392,767,855 Net unrealized depreciation aggregated
$7,492,230, of which $5,433,701 related to appreciated investment
securities and $12,925,931 related to depreciated investment securities.
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1994 (UNAUDITED)
1.ASSETS 2. 3.
4.Investment in securities, at value (cost $392,767,855) 5. $ 385,275,625
(Notes 1 and 2) - See accompanying schedule
6.Cash 7. 142,400
8.Receivable for investments sold 9. 2,409,381
10.Interest receivable 11. 6,196,171
12.Receivable for daily variation on futures contracts 13. 8,817
14. 15.TOTAL ASSETS 16. 394,032,394
17.LIABILITIES 18. 19.
20.Payable for investments purchased $ 870,583 21.
22.Dividends payable 625,270 23.
24.Accrued management fee 181,343 25.
26. 27.TOTAL LIABILITIES 28. 1,677,196
29.30.NET ASSETS 31. $ 392,355,198
32.Net Assets consist of (Note 1): 33. 34.
35.Paid in capital 36. $ 397,555,192
37.Accumulated undistributed net realized gain (loss) on 38. 2,291,180
investments
39.Net unrealized appreciation (depreciation) on: 40. 41.
42. Investment securities 43. (7,492,230)
44. Futures contracts 45. 1,056
46.47.NET ASSETS, for 37,192,215 shares outstanding 48. $ 392,355,198
49.50.NET ASSET VALUE, offering price and redemption 51. $10.55
price per share ($392,355,198 (divided by) 37,192,215 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1994 (UNAUDITED)
52.53.INTEREST INCOME 54. $ 12,412,182
55.EXPENSES 56. 57.
58.Management fee (Note 4)
$ 1,159,236
59.Non-interested trustees' compensation
1,393
60. Total expenses before reductions
1,160,629
61. Expense reductions (Note 5) (55,209) 1,105,420
62.63.NET INTEREST INCOME 64. 11,306,762
65.REALIZED AND UNREALIZED GAIN (LOSS) ON 67. 68.
INVESTMENTS
(NOTE 1)
66.Net realized gain (loss) on:
69. Investment securities 1,153,538 70.
71. Futures contracts 1,348,851 2,502,389
72.Change in net unrealized appreciation (depreciation) 73. 74.
on:
75. Investment securities (24,094,519) 76.
77. Futures contracts 1,056 (24,093,463)
78.79.NET GAIN (LOSS) 80. (21,591,074)
81.82.NET INCREASE (DECREASE) IN NET ASSETS 83. $ (10,284,312)
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1994 NOVEMBER 30,
(UNAUDITED) 1993
84.INCREASE (DECREASE) IN NET ASSETS
85.Operations $ 11,306,762 $ 20,834,018
Net interest income
86. Net realized gain (loss) on investments 2,502,389 8,118,245
87. Change in net unrealized appreciation (depreciation) (24,093,463) 15,435,529
on investments
88. 89.NET INCREASE (DECREASE) IN NET ASSETS (10,284,312) 44,387,792
RESULTING FROM OPERATIONS
90.Distributions to shareholders (11,306,762) (20,834,018)
From net interest income
91. From net realized gain (7,685,399) (227,395)
92. 93.TOTAL DISTRIBUTIONS (18,992,161) (21,061,413)
94.Share transactions 72,480,765 242,254,359
Net proceeds from sales of shares
95. Reinvestment of distributions 12,809,006 13,961,012
96. Cost of shares redeemed (92,076,054) (88,378,513)
97. Redemption fees (Note 1) 50,990 94,890
98. Net increase (decrease) in net assets resulting (6,735,293) 167,931,748
from
share transactions
99. 100.TOTAL INCREASE (DECREASE) IN NET ASSETS (36,011,766) 191,258,127
101.NET ASSETS 102. 103.
104. Beginning of period 428,366,964 237,108,837
105. End of period $ 392,355,198 $ 428,366,964
106.OTHER INFORMATION 108. 109.
107.Shares
110. Sold 6,564,888 22,071,403
111. Issued in reinvestment of distributions 1,160,463 1,252,444
112. Redeemed (8,484,467) (7,911,287)
113. Net increase (decrease) (759,116) 15,412,560
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
114. SIX MONTHS YEAR MARCH 16, 1992
ENDED ENDED (COMMENCEME
MAY 31, 1994 NOVEMBER 30, NT
OF OPERATIONS) T
O
NOVEMBER 30,
115. (UNAUDITED) 1993 1992
116.SELECTED PER-SHARE DATA
117.Net asset value, beginning of period $ 11.290 $ 10.520 $ 10.000
118.Income from Investment Operations .294 .615 .459
Net interest income
119. Net realized and unrealized gain (loss) (.541) .777 .514
on investments
120. Total from investment operations (.247) 1.392 .973
121.Less Distributions (.294) (.615) (.459)
From net interest income
122. From net realized gain on investments (.200) (.010) -
123. Total distributions (.494) (.625) (.459)
124.Redemption fees added to paid in capital .001 .003 .006
125.Net asset value, end of period $ 10.550 $ 11.290 $ 10.520
126.TOTAL RETURN (dagger) -2.29% 13.52% 9.94%
127.RATIOS AND SUPPLEMENTAL DATA
128.Net assets, end of period (000 omitted) $ 392,355 $ 428,367 $ 237,109
129.Ratio of expenses to average net assets .52%* .25% .03%*
(dagger)(dagger)
130.Ratio of expenses to average net assets .55%* .55% .55%*
before
expense reductions (dagger)(dagger)
131.Ratio of net interest income to average 5.36%* 5.52% 6.25%*
net assets
132.Portfolio turnover rate 44%* 50% 38%*
</TABLE>
* ANNUALIZED
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS
SHOWN.
(dagger)(dagger) SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance.
TOTAL CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND
Spartan Florida Municipal
Money Market Portfolio 1.12% 2.35% 4.47%
Consumer Price Index 1.17% 2.29% 4.63%
Average All Tax-Free
Money Market Fund 0.99% 1.97% 3.66%
CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, one year, or since the fund started on August
24,1992. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, you would end up with $1,050. Comparing the fund's
performance to the consumer price index (CPI) helps show how your
investment did compared to inflation. To measure how the fund stacked up
against its peers, you can compare its return to the average all tax-free
money market fund's total return. This average currently reflects the
performance of 352 tax-free money market funds tracked by IBC/Donoghue.
(The periods covered by the CPI and IBC/Donoghue numbers are the closest
available match to those covered by the fund.)
TOTAL AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1994 PAST 1 LIFE OF
YEAR FUND
Spartan Florida Municipal
Money Market Portfolio 2.35% 2.50%
Consumer Price Index 2.29% 2.62%
Average All Tax-Free
Money Market Fund 1.97% 2.07%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
TOTAL YIELDS
5/31/93 8/31/93 11/30/93 2/28/94 5/31/94
Spartan Florida Municipal 2.80% 2.48% 2.26% 2.30% 2.60%
Money Market Portfolio
If Fidelity had not reimbursed 2.40% 2.33% 2.16% 2.20% 2.55%
certain fund expenses
Average All Tax-Free 2.20% 2.00% 1.94% 1.97% 2.35%
Money Market Fund
Spartan Florida Municipal 4.38% 3.88% 3.53% 3.59% 4.06%
Money Market Portfolio -
Tax-equivalent
If Fidelity had not reimbursed 3.75% 3.64% 3.38% 3.44% 3.98%
certain fund expenses
Average All Taxable 2.62% 2.64% 2.69% 2.79% 3.51%
Money Market Fund
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. This
would have been lower if Fidelity had not reimbursed certain fund expenses.
You can compare these yields to the average all tax-free money market fund.
Or you can look at the fund's tax-equivalent yield, which is based on a
combined effective 1994 federal tax rate of 36%. The tax-equivalent figures
are useful in seeing how the fund stacked up against the average taxable
money market fund as tracked by IBC/Donoghue.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Deborah Watson,
Portfolio Manager of Spartan
Florida Municipal Money Market
Portfolio
Q. DEB, THERE HAS BEEN A DRAMATIC SHIFT IN THE FEDERAL RESERVE'S MONETARY
POLICY SINCE THE LAST REPORT. CAN YOU BRING US UP TO DATE?
A. Sure. Short-term interest rates stabilized last fall as signs of an
improving economy multiplied. Entering 1994, many of us - myself included -
were reasonably sure the Fed would eventually have to boost rates, probably
before the end of the first quarter. Well, the Fed acted much sooner than
expected, increasing the federal funds rate one-quarter point on February
4, 1994. Two more quarter-point increases followed over next two months,
plus another half-point increase in May, lifting the federal funds rate to
4.25%. The Fed's actions signaled a determination to restrain inflation
before it became a problem.
Q. HOW DID YOU COPE WITH CHANGING CONDITIONS?
A. While the timing of the Fed's rate increase surprised me, I had been
preparing the fund for an eventual upturn in rates for several months. The
fund's average maturity was 66 days at the end of November. I let that roll
down in December, partly in anticipation of a possible move by the fed and
partly in response to technical factors. The fund's assets swelled
temporarily toward the end of the calendar year as investors sought refuge
from the state intangibles tax. I invested most of that new money in
short-term variable-rate instruments, expecting redemptions in January. By
February the fund's average maturity had fallen into the mid 40s, giving me
the flexibility I needed to respond to rising rates. Since then, I've
continued to let the fund's average maturity roll down. By the end of May,
it stood at 22 days.
Q. HOW DID THE FUND PERFORM?
A. On May 31, 1994, the fund's seven-day yield was 2.60%, up from 2.26% six
months ago. The latest yield is the equivalent of a 4.06% yield on a
taxable investment for investors in the 36% income tax bracket. The fund's
total return for the six months ended May 31 was 1.12%. That beat the
average total return during the same period for all tax-free money market
fund of .99%,
according to IBC/Donoghue.
Q. WHAT'S THE OUTLOOK?
A. Conditions appear to have stabilized. Barring an inflationary flare-up
of some kind this summer, the Fed will probably remain on the sidelines for
the
next few months. As for technical factors, Florida, unlike most other
states, spreads its new issuance throughout the year. However, the flood of
new issues elsewhere influences rates in Florida, too, and that should
provide some attractive opportunities to buy longer-term securities.
Accordingly, I may be willing to extend the fund's average maturity in
spots, as conditions warrant. Overall, somewhere around 40 days seems
reasonable, at least through the summer.
FUND FACTS
GOAL: income exempt from
federal income tax and the
Florida intangible personal
property tax and stability by
investing in high-quality,
short-term Florida municipal
securities
START DATE: August 24, 1992
SIZE: as of May 31, 1994,
more than $377 million
MANAGER: Deborah Watson,
since August 1992; manager,
Spartan California and
Pennsylvania Municipal Money
Market Portfolios, since 1989;
and
Fidelity California Tax-Free
Money Market Fund, since
1988; joined Fidelity in 1982
(checkmark)
MONEY MARKETS AND
DERIVATIVES:
The word "derivatives" covers
a wide range of financial
agreements, of varying
degrees of complexity, that
have market values based on
security or market indices. All
"derivative" securities in
Fidelity's money market funds
are designed to have the price
characteristics of typical
money market securities.
During the recent Federal
Reserve Board interest rate
increases, all Fidelity money
market holdings performed as
designed and the funds
maintained a stable share
price of $1.00.
The more complex of these
instruments, such as floating
rate notes with unusual and
complex floating rate
formulas, frequently have too
much price volatility to be
appropriate investments for
money market funds. Many of
them do not offer the degree
of price stability Fidelity
believes is required in order
for its funds to maintain a
stable $1.00 share price.
Therefore, despite their
frequent higher yields at the
time they are sold, Fidelity
has not purchased these
volatile securities. While this
may sometimes have caused
Fidelity money market funds
to have lower gross yields
than certain other funds,
Fidelity believes its investors
value prudence as well as
performance.
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/94 11/30/93 5/3193
0 - 30 87 63 66
31 - 90 6 13 18
91 - 180 6 1 10
181 - 397 1 23 6
WEIGHTED AVERAGE MATURITY
5/31/94 11/30/93 5/31/93
Spartan Florida
Municipal Money Market
Portfolio 22 days 66 days 46 days
Average All Tax-Free
Money Market Fund* 43 days 64 days 48 days
ASSET ALLOCATION
AS OF MAY 31, 1994 AS OF NOVEMBER 30, 1993
Row: 1, Col: 1, Value: 65.0
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 12.0
Row: 1, Col: 5, Value: 9.0
Row: 1, Col: 1, Value: 59.0
Row: 1, Col: 2, Value: 15.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 18.0
Row: 1, Col: 5, Value: 8.0
Variable rate
demand notes
(VRDNs) 65%
Commercial
paper 14%
Tender bonds 0%
Municipal
notes 12%
Other 9%
Variable rate
demand notes
(VRDNs) 59%
Commercial
paper 15%
Tender bonds 0%
Municipal
notes 18%
Other 8%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(Registered trademark)
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENTS MAY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - 100.0%
Alachua County Health Facs. Rev., CP mode:
(Academic Research Bldg. Proj.) Series 1989:
2.95% 6/16/94, LOC Barnett Bank of Jacksonville $ 5,250,000 $ 5,250,000
3.45% 7/14/94, LOC Barnett Bank of Jacksonville 1,000,000 1,000,000
Bay County Hosp. Sys. Rev. (Bay Med. Ctr. Proj.)
Series 1988 A, 3.15%, LOC Citibank, VRDN 600,000 600,000
Broward County Airport Sys. Rev.
Series D, 2.90% 10/1/94, (AMBAC Insured) (b) 1,500,000 1,500,474
Broward County Fin. Auth. Multi-Family Hsg. Rev.
(Palm Aire-Oxford Proj.) Series 1990, 3.05%, VRDN 6,800,000 6,800,000
Broward County Hsg. & Fin. Auth.
(Sawgrass Pines Apt. Proj.) Series 1993 A, 3.30%
LOC First Union Bank of Florida, VRDN (b) 11,000,000 11,000,000
Charlotte County School Dist. TAN
Series 1993, 3.25% 6/30/94 6,750,000 6,752,633
Collier County Wtr. & Swr. Ind. Dev. Rev.
(Marco Island Util. Proj.) Series 1990, 3.05%,
LOC Sun Bank, VRDN (b) 2,700,000 2,700,000
Dade County Ind. Dev. Rev. VRDN:
(Guastafeste Proj.) Series 1991, 3.05%,
LOC Sun Bank (b) 815,000 815,000
(Montenay-Dade Proj.):
Series 1988, 3.05%, LOC Banque Paribas (b) 7,100,000 7,100,000
Series 1990 A, 3.05%, LOC Banque Paribas (b) 19,890,000 19,890,000
Dade County Multi-Family Hsg. Rev.
(Biscayne View Apts. Proj.)
Series 1993, 3.30%, VRDN (b) 15,000,000 15,000,000
Duval County Hsg. Fin. Auth. Rev.
(Lakes of Mayport Apts.) Series 1985 F, 3.15%,
LOC Bank of Boston, VRDN 4,300,000 4,300,000
Escambia County Solid Waste Disp. Rev. (Monsanto Co. Proj.)
Series 1993, 3.05%, VRDN (b) 5,300,000 5,300,000
Florida Board of Ed. Cap. Outlay Pub. Ed. Gen. Oblig.:
Series B, 5.30% 6/1/94 1,500,000 1,500,000
Series C, 4.80% 6/1/94 4,700,000 4,700,000
Florida Board of Ed. Participating VRDN: (c)
Series P-1B, 3%, (Liquidity Enhancement
Merrill Lynch & Co.) 4,000,000 4,000,000
Series P-1004, 3%, (Liquidity Enhancement)
Merrill Lynch & Co.) 3,800,000 3,800,000
Florida Dept. Natural Resource Participating VRDN
Series BTP-64 94-A, 3.05%, (Liquidity
Enhancement Automatic Data Processing, Inc.) (c) 7,585,000 7,585,000
Florida Dept. of Trans. Participating VRDN,
Series PA-11, 3%, (Liquidity Enhancement Merrill
Lynch & Co.) (c) 5,300,000 5,300,000
Florida Div. Fin. Dept. Nat. Resource Preservation Rev.
Series 2000 A, 6.10% 7/1/94, (AMBAC Insured) 1,000,000 1,002,666
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev., VRDN:
(Beville-Oxford Proj.) Series 1990 B, 3.05% $ 1,100,000 $ 1,100,000
(Brandon-Oxford Proj.) Series 1990 C, 3.05% 9,000,000 9,000,000
(Hillsborough-Oxford Proj.) Series D, 3.05% 13,335,000 13,335,000
(Players Club) Series 1991 C, 3.12%,
LOC Sumitomo Trust 7,100,000 7,100,000
Florida Local Govt. Fin. Auth. Rev., VRDN:
(Govt. Unit Loan Prog.):
Series 1986 A, 2.90%, LOC First Union Nat'l
Bank of Florida 8,000,000 8,000,000
Series 1986 A, 2.85%, (FGIC Insured) 15,000,000 15,000,000
(Lake Wales Medical Centers Inc. Proj.) Series 1994 A,
3.10%, LOC First Union Nat'l Bank of Florida 2,000,000 2,000,000
Florida Muni. Pwr. Agcy. Participating VRDN,
Series PA 1018, 3%, (Liquidity Enhancement
Merrill Lynch & Co.) (c) 2,680,000 2,680,000
Florida State Univ. Fin. Assistance Ed. Athletic Facs.
Impt. Rev. & Rfdg. 3.50% 10/1/94,
LOC NationsBank of Florida 1,015,000 1,018,382
Hillsborough County Cap. Impt. Rev. (Criminal Justice Facs.)
4.75% 8/1/94, (FGIC Insured) 3,035,000 3,043,667
Hillsborough County Ind. Dev. Auth. Rev. (Univ. Commty.
Hosp. Inc.) 3.25% 8/15/94, (MBIA Insured) 1,775,000 1,776,206
Hillsborough County Ind. Dev. Auth. Poll. Cont. Rev. Rfdg.
(Tampa Elec. County Proj.) Series 1990, 3.15%,
VRDN 500,000 500,000
Indian River County Hosp. Dist. Rev.:
Series 1985, 3.05%, LOC Kredietbank, VRDN 4,900,000 4,900,000
Series 1988 CP mode:
2.95% 6/15/94, LOC Kredietbank 2,000,000 2,000,000
3.20% 7/12/94, LOC Kredietbank 2,350,000 2,350,000
Series 1989 CP mode:
3% 6/10/94, LOC Kredietbank 1,200,000 1,200,000
2.90% 6/16/94, LOC Kredietbank 1,300,000 1,300,000
3.40% 8/12/94, LOC Kredietbank 3,000,000 3,000,000
Series 1990, 2.90% 6/14/94, LOC Kredietbank,
CP mode 5,000,000 5,000,000
Indian Trace Commty. Dev. Dist. Rev.
(Broward Co. Basin 1 Wtr. Mgt. Spl. Benefit), CP mode:
Series 1991, 3.50% 6/2/94, LOC Tokai Bank 1,500,000 1,500,000
3.50% 6/1/94, LOC Tokai Bank 5,000,000 5,000,000
3.50% 6/2/94, LOC Tokai Bank 3,900,000 3,900,000
Jacksonville Elec. Auth. Rev.
(St. John's River Park Pwr. Sys.) 10% 10/1/94 5,450,000 5,686,194
Jacksonville Elec. Auth. Participating VRDN,
Series PA-1008 3%, (Liquidity Enhancement
Merrill Lynch & Co.) (c) 2,840,000 2,840,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Jacksonville Ind. Dev. Rev. (Samuel C. Taylor Foundation
1987 Proj.) 2.75%, LOC Barnett Bank of Jacksonville,
VRDN $ 5,500,000 $ 5,500,000
Lee County Hosp. Board. Hosp. Rev. (Lee Mem. Hosp. Proj.)
Series 1992 B, 3.05% 6/22/94,
LOC Sanwa Bank, CP mode 2,300,000 2,300,000
Lee County Ind. Dev. Auth. Health Care Facs. Rev.
(Hope Hospice 1994) 2.90%,
LOC SunBank, Orlando, VRDN 4,200,000 4,200,000
Lee County Local Opt. Gas Tax Rfdg. Rev. 3.25% 10/1/94,
(MBIA Insured) 1,260,000 1,262,053
Lee County School Board Ctfs. of Prtn. 4% 8/1/94,
(FSA Insured) 605,000 605,969
Liberty County Ind. Dev. Rev. (Timber Energy Res. Inc. Proj.)
Series 1994, 3.10%, LOC Bank of Montreal, VRDN 9,500,000 9,500,000
Manatee County Hsg. Fin. Auth. (Harbour Pointe Proj.)
Series 1990 A, 3.35%, LOC Marine Midland Bank,
VRDN 1,000,000 1,000,000
Manatee County Port Auth. Rev. Rfdg. & Impt.
Series 1993 A,
2.75% 10/1/94, (MBIA Insured) 455,000 455,000
Series 1993 B, 2.90% 10/1/94, (MBIA Insured) (b) 165,000 165,000
Marion County Hsg. Fin. Auth. Rev., VRDN:
(Belvedere Apt. Proj.) Series 1985 C, 3.15%,
LOC Bank of Boston 2,750,000 2,750,000
(Oakhurst Apt. Proj.) Series 1985 E, 3.15%,
LOC Bank of Boston 3,800,000 3,800,000
(Paddock Place Proj.) Series 1985 F, 3.15%,
LOC Bank of Boston 3,900,000 3,900,000
(Summer Trace Apts.) Series 1985 D, 3.15%,
LOC Bank of Boston 3,600,000 3,600,000
Martin County Ind. Dev. Auth. Rev.
(Indiantown Cogeneration Proj.) Series 1992, 3.30%,
LOC Credit Suisse, VRDN (b) 25,000,000 25,000,000
Martin County School Dist
TAN 3.40% 6/30/94 5,000,000 5,001,741
Monroe County School Dist. RAN 2.80% 12/15/94 4,000,000 4,000,000
Naples Wtr. & Swr. Rev. BAN 6.70% 9/1/94 6,000,000 6,051,029
Ocean Hwy. & Port Auth. Rev. Series 1990, 3.15%,
LOC ABN-AMRO, VRDN (b) 17,000,000 17,000,000
Okeechobee County Solid. Waste Rev. (Chambers Waste Sys.)
Series 1992, 3.35%, LOC NationsBank, VRDN (b) 1,000,000 1,000,000
Orange County Health Facs. Auth. Prog. Rev. Rfdg. Series
1985, 3.25% 7/25/94, (MBIA Insured), CP mode 4,900,000 4,900,000
Orange County School Dist. TAN 3% 6/30/94 19,500,000 19,504,142
Orange County Solid Waste Facs. Rev. Rfdg.
Series 1993, 3.50% 10/1/94, (MBIA Insured) 1,170,000 1,172,675
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Orlando & Orange County Expressway Rev. Auth.
Participating VRDN, Series PA-1001, 3%,
(Liquidity Enhancement Merrill Lynch & Co.) (c) $ 5,480,000 $
5,480,000
Orlando Util. Comm. Wtr. & Elec. Rev.
10.50% 10/1/94 3,860,000 4,069,837
Palm Beach County Hsg. Fin. Auth. Rev. (Lake Crystal Apts.
Proj. Phase II) Series 1988 A, 3.05%, LOC Citibank,
VRDN (b) 7,480,000 7,480,000
Pasco County School Dist.:
TAN 3.25% 6/30/94 6,800,000 6,802,652
TRAN 3% 10/27/94 2,160,000 2,160,000
Plant City Hosp. Rev. (South Baptist Hosp. Proj.)
Series 1993, 3.10%,
LOC Barnett Bank of Tampa, VRDN (b) 4,900,000 4,900,000
Putnam County Solid Waste Assessment Rfdg. Series 1993,
2.70% 6/1/94, (MBIA Insured) 955,000 955,000
St. Lucie County School Dist. TAN 3.25% 6/30/94 4,400,000 4,400,831
Sarasota County Pub. Hosp. Dist., CP mode:
(Sarasota Memorial Hosp.):
Series 1993A:
2.70% 6/9/94 4,000,000 4,000,000
3.25% 8/9/94 2,000,000 2,000,000
Series B, 2.85% 6/15/94, LOC Sumitomo Bank 4,750,000 4,750,000
Sunshine Govt. Fing. Comm. Rev., CP mode:
Series 1986:
3.10% 8/19/94, LOC Morgan Guaranty 3,500,000 3,500,000
3.15% 8/19/94, LOC Morgan Guaranty 1,000,000 1,000,000
Volusia County Health Facs. Auth. Rev. (Southwest Volusia
Healthcare Corp.) Series 1994 A, 2.90%,
LOC First Union Nat'l. Bank of North Carolina, VRDN 5,000,000 5,000,000
Volusia County School Dist. Rev. 7.60% 8/1/94 1,000,000 1,026,930
TOTAL INVESTMENTS - 100% $ 399,318,081
Total Cost for Income Tax Purposes $ 399,318,081
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
MT - Mandatory Tender
OT - Optional Tender
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(c) Provides evidence of ownership in an underlying pool of municipal
bonds.
CAPITAL LOSS CARRYFORWARDS
At November 30,1993, the fund had a capital loss carryforward of
approximately $1,200 of which $100, and $1,100 will expire on November 30,
2000, and 2001, respectively.
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1994 (UNAUDITED)
133.ASSETS 134. 135.
136.Investment in securities, at value (Note 1) - See 137. $ 399,318,081
accompanying schedule
138.Interest receivable 139. 2,709,409
140. 141.TOTAL ASSETS 142. 402,027,490
143.LIABILITIES 144. 145.
146.Payable to custodian bank $ 843,557 147.
148.Payable for investments purchased 23,201,031 149.
150.Share transactions in process 370,482 151.
152.Dividends payable 44,852 153.
154.Accrued management fee 146,654 155.
156. 157.TOTAL LIABILITIES 158. 24,606,576
159.160.NET ASSETS 161. $ 377,420,914
162.Net Assets consist of (Note 1): 163. 164.
165.Paid in capital 166. $ 377,431,828
167.Accumulated net realized gain (loss) on 168. (10,914)
investments
169.170.NET ASSETS, for 377,431,828 shares 171. $ 377,420,914
outstanding
172.173.NET ASSET VALUE, offering price and 174. $1.00
redemption price per share ($377,420,914 (divided by)
377,431,828 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1994 (UNAUDITED)
175.176.INTEREST INCOME 177. $ 5,140,259
178.EXPENSES 179. 180.
181.Management fee (Note 4) $ 959,154 182.
183.Non-interested trustees' compensation 1,148 184.
185. Total expenses before reductions 960,302 186.
187. Expense reductions (Note 5) (159,576) 800,726
188.189.NET INTEREST INCOME 190. 4,339,533
191.REALIZED AND UNREALIZED GAIN (LOSS) ON 193. (9,657)
INVESTMENTS
(NOTE 1)
192.Net realized gain (loss) on investment securities
194.Increase (decrease) in net unrealized gain from 195. (17)
accretion of market discount
196.197.NET GAIN (LOSS) 198. (9,674)
199.200.NET INCREASE IN NET ASSETS RESULTING FROM 201. $ 4,329,859
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1994 NOVEMBER 30,
(UNAUDITED) 1993
202.INCREASE (DECREASE) IN NET ASSETS
203.Operations $ 4,339,533 $ 5,069,253
Net interest income
204. Net realized gain (loss) on investments (9,657) (1,143)
205. Increase (decrease) in net unrealized gain from (17) 17
accretion of market discount
206. 4,329,859 5,068,127
207.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
208.Dividends to shareholders from net interest income (4,339,533) (5,069,253)
209.Share transactions at net asset value of $1.00 per 451,001,878 523,059,131
share
Proceeds from sales of shares
210. Reinvestment of dividends from net interest 4,028,526 4,777,607
income
211. Cost of shares redeemed (384,340,709) (270,561,793)
212. 70,689,695 257,274,945
Net increase (decrease) in net assets resulting from
share transactions
213. 70,680,021 257,273,819
214.TOTAL INCREASE (DECREASE) IN NET ASSETS
215.NET ASSETS 216. 217.
218. Beginning of period 306,740,893 49,467,074
219. End of period $ 377,420,914 $ 306,740,893
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
220. SIX MONTHS YEAR AUGUST 24, 199
ENDED ENDED 2
MAY 31, 1994 NOVEMBER 30, (COMMENCEME
NT
OF OPERATIONS) T
O
NOVEMBER 30,
221. (UNAUDITED) 1993 1992
222.SELECTED PER-SHARE DATA
223.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000
224.Income from Investment Operations .011 .025 .008
Net interest income
225.Less Distributions (.011) (.025) (.008)
From net interest income
226.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000
227.TOTAL RETURN (dagger) 1.13% 2.51% .78%
228.RATIOS AND SUPPLEMENTAL DATA
229.Net assets, end of period (000 omitted) $ 377,421 $ 306,741 $ 49,467
230.Ratio of expenses to average net .42%* .18% -%
assets (dagger)(dagger)
231.Ratio of expenses to average net assets .50%* .50% .50%*
before expense reductions (dagger)(dagger)
232.Ratio of net interest income to average 2.26%* 2.48% 2.91%*
net assets
</TABLE>
* ANNUALIZED
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS
SHOWN.
(dagger)(dagger) SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Florida Municipal Income Portfolio(the income fund) is a fund of
Fidelity Court Street Trust. Spartan Florida Municipal Money Market
Portfolio (the money market fund) is a fund of Fidelity Court Street Trust
II. Each trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company.
Fidelity Court Street Trust and Fidelity Court Street Trust II (the trusts)
are organized as a Massachusetts business trust and a Delaware business
trust, respectively. Each fund is authorized to issue an unlimited number
of shares. The following summarizes the significant accounting policies of
the money market fund and the income fund:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix system
and/or appraisals by a pricing service, both of which consider market
transactions and dealer-supplied valuations. Short-term securities maturing
within sixty days are valued either at amortized cost or original cost plus
accrued interest, both of which approximate current value. Securities for
which quotations are not readily available through the pricing service are
valued at their fair value as determined in good faith under consistently
applied procedures under the general supervision of the Board of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to income taxes to
the extent that it distributes all of its taxable income for the fiscal
year. The schedules of investments include information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
losses deferred due to futures and options transactions. The income fund
also utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for income
tax purposes.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective December
1, 1993, the funds adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the funds changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of November 30, 1993 have been restated to reflect
an increase in paid in capital and a decrease in accumulated net realized
gain on investments of $12,445 for the income fund. No adjustments were
necessary for the money market fund.
REDEMPTION FEES. Shares held in the income fund less than 180 days are
subject to a redemption fee equal to .50% of the proceeds of the redeemed
shares.
A portion of the fee is accounted for as a reduction of transfer agent
expenses. This portion of the redemption fee is used to offset the
transaction costs and other expenses that short-term trading imposes on the
fund and its shareholders. The remainder of the redemption fee is accounted
for as an addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FUTURES CONTRACTS AND OPTIONS. The income fund may invest in futures
contracts and write options. These investments involve, to varying degrees,
elements of market risk and risks in excess of the amount recognized in the
Statement of Assets and Liabilities. The face or contract amounts reflect
the extent of the involvement the high yield fund has in the particular
classes of instruments. Risks may be caused by an imperfect correlation
between movements in the price of the instruments and the price of the
underlying securities and interest rates. Risks also may arise if there is
an illiquid secondary market for the instruments, or due to the inability
of counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
DELAYED DELIVERY TRANSACTIONS. The funds may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The funds
may receive compensation for interest forgone on entering into delayed
delivery transactions. The funds identify securities as segregated in its
custodial records with a value at least equal to the amount of the purchase
commitment.
3. PURCHASES AND SALES OF
INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $89,132,847 and $106,628,574, respectively. The face
value of futures contracts opened and closed amounted to $138,509,720 and
$128,017,079, respectively
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management
& Research Company (FMR) pays all expenses except the compensation of
the non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .55% and .50% of average net assets
for the income and money market funds, respectively.
FMR also bears the cost of providing shareholder services to each fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $3,975 and $2,751 for the income and money
market funds, respectively.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect, and after reducing
the fee for any payments by FMR pursuant to the fund's Distribution and
Service Plan.
5. EXPENSE REDUCTIONS.
FMR has voluntarily agreed to reimburse the funds for total operating
expenses (excluding interest, taxes, brokerage commissions and
extraordinary expenses) above a specified percentage of average net assets.
INCOME FUND. For the period, this expense limitation ranged from an annual
rate of .50% to .55% of average net assets and the reimbursement amounted
to $55,209.
MONEY MARKET FUND. For the period, this expense limitation ranged from an
annual rate of .40% to .45% of average net assets and the reimbursement
amounted to $159,576.
TO WRITE FIDELITY
Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
Page 46 = BLANK
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INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Anne Punzak, Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*(dagger)
Phyllis Burke Davis*(dagger)
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*(dagger)
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
United Missouri Bank, N.A.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
(dagger) MONEY MARKET ONLY
