SPARTAN(registered trademark)
(registered trademark)
NEW JERSEY
MUNICIPAL
MONEY MARKET
PORTFOLIO
ANNUAL REPORT
OCTOBER 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 9 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 14 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 18 Notes to the financial statements.
REPORT OF INDEPENDENT
ACCOUNTANTS 20 The auditor's opinion.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The year so far has been an unsettling time for many investors. For
example, after three years of a nearly perfect environment for stock market
investing, stock prices generally fell from February through June, and bond
prices fell, as well. Although there was a late-summer stock rally, no one
can know for sure what will happen in the months ahead.
We do know, however, that market ups and downs are a normal part of
investing. We have historically seen corrections of 10% or more every two
years. That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful investors in
every market cycle.
First, take a long-term approach when investing. If you can afford to leave
your money invested through the inevitable ups and downs of financial
markets, you will greatly reduce your vulnerability to any single decline.
Over time, for example, stock prices have gone up - and have significantly
outperformed other types of investments and stayed ahead of inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
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.SM
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
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. If Fidelity had not
voluntarily reimbursed the fund for expenses during the periods shown, the
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 LIFE OF
YEAR FUND
Spartan New Jersey Municipal
Money Market 2.44% 16.59%
Consumer Price Index 2.61% 15.98%
Average New Jersey Tax-Free
Money Market Fund 2.11% 15.83%
CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, one year, or since the fund started on May 1, 1990. 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 New Jersey tax-free money
market fund's total return. This average currently reflects the performance
of 11 New Jersey 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.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 LIFE OF
YEAR FUND
Spartan New Jersey Municipal
Money Market 2.44% 3.46%
Consumer Price Index 2.61% 3.34%
Average New Jersey Tax-Free
Money Market Fund 2.11% 3.31%
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.
YIELDS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
10/31/93 1/31/94 4/30/94 7/31/94 10/31/94
Spartan New Jersey Municip 2.10% 2.19% 2.69% 2.64% 3.09%
al
Money Market
If Fidelity had not n/a 1.94% 2.44% 2.39% 2.89%
reimbursed certain fund
expenses
Average New Jersey 1.95% 1.79% 2.36% 2.33% 2.72%
Tax-Free
Money Market Fund
Spartan New Jersey Municip 3.52% 3.67% 4.50% 4.42% 5.17%
al
Money Market -
Tax-equivalent
If Fidelity had not n/a 3.25% 4.08% 4.00% 4.84%
reimbursed certain fund
expenses
Average All Taxable 2.66% 2.68% 3.15% 3.83% 4.40%
Money Market Fund
</TABLE>
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. If the
adviser had not reimbursed certain portfolio expenses during the periods
shown, the yields would have been lower. You can compare these yields to
the average 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
and state income tax rate of 40.26%. 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
market fund will maintain a $1
share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Scott Orr, Portfolio Manager of Spartan New Jersey
Municipal Money Market Portfolio
Q. SCOTT, INTEREST RATES HAVE KEPT RISING SINCE THE LAST REPORT. CAN YOU
TELL US SOMETHING ABOUT THE ENVIRONMENT YOU'VE BEEN OPERATING IN?
A. Sure. In the last report, we talked about the three quarter-point rate
increases that occurred in February, March and April. Since then, while the
Federal Reserve's strategy has remained the same-to slow the pace of
economic growth by raising the rate banks charge each other for overnight
loans, called the federal funds rate-it has made some tactical changes in
monetary policy. Recent rate increases have been both less frequent and
more dramatic. By the end of this October, the federal funds rate stood at
4.75%, up sharply from 3% a year ago.
Q. HAVE TAX-FREE INTEREST RATES RISEN AS MUCH AS TAXABLE RATES?
A. No, and that's an interesting story. Tax-free interest rates are heavily
influenced by taxable rates, but that doesn't mean the two move in
lock-step. There are supply and demand factors unique to the tax-free
market. Some of those came into play during the first half of 1994, as new
issuance fell and demand for tax-free investments outstripped supply.
Tax-free interest rates, therefore, did not rise as quickly as taxable
rates. At the same time, many high-income investors found themselves paying
higher taxes in 1994, and that too kept tax-free rates from rising as fast
as they might have otherwise. As a result, while short-term, tax-free rates
averaged more than 70% of equivalent taxable rates a year ago, the average
had dipped closer to 65% by the end of October.
Q. WHAT ABOUT FACTORS PECULIAR TO NEW JERSEY?
A. Governor Whitman is proceeding with plans to roll back taxes in New
Jersey, but she seems to be doing so in a responsible manner. I don't think
we have to worry about lower taxes causing fiscal strains or leading to
downgrades of municipal securities in New Jersey.
Q. WHAT STEPS HAVE YOU TAKEN TO MAXIMIZE RETURNS IN THE FACE OF RISING
INTEREST RATES?
A. The simple answer is that I've shortened the fund's average maturity.
When rates are rising, it usually doesn't make sense to emphasize
longer-term securities. It's better to buy shorter-term instruments and let
the fund's yield rise with current rates. That's why the fund's average
maturity was 57 days at the end of October, down from 84 days a year ago.
I've also limited the fund's stake in variable rate demand notes, known as
VRDNs. High demand for VRDNs has made them less attractive than you might
think in a rising-rate environment.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on October 31, 1994 was 3.09%, up from 2.10%
a year ago. For investors in the 40.26% combined state and federal tax
bracket, that was equivalent to a 5.17% taxable return. The fund's total
return for the year ended October 31, 1994, was 2.44%. That beat the
average total return of 2.11% for all New Jersey tax-free money market
funds, according to IBC/Donoghue.
Q. WHAT'S AHEAD?
A. The chances are good that we'll see still higher interest rates in the
months ahead. I'll aim to keep the funds average maturity well within the
neutral range to preserve my flexibility in a rising-rate environment.
FUND FACTS
GOAL: tax-free income and
share price stability by
investing in high-quality,
short-term New Jersey
municipal money market
securities
START DATE: May 1, 1990
SIZE: as of October 31, 1994,
more than $395 million
MANAGER: Scott Orr, since
December 1991; manager,
Fidelity New Jersey Tax-Free
Money Market Fund and
Fidelity Michigan Municipal
Money Market Fund, since
January 1992;
Fidelity and Spartan
Connecticut Municipal Money
Market Funds, since October
1993; Spartan Arizona
Municipal Money Market Fund,
since October 1994; joined
Fidelity in 1989
(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
money market funds have 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.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/94 4/30/94 10/31/93
0 - 30 62 54 56
31 - 90 17 12 12
91 - 180 9 22 11
181 - 397 12 12 21
WEIGHTED AVERAGE MATURITY
10/31/94 4/30/94 10/31/93
Spartan New Jersey
Municipal Money Market
Fund 57 days 65 days 84 days
Average New Jersey
Tax-Free Money Market
Fund* 60 days 56 days 70 days
ASSET ALLOCATION
AS OF OCTOBER 31, 1994 AS OF APRIL 30, 1994
Row: 1, Col: 1, Value: 47.0
Row: 1, Col: 2, Value: 16.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 32.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 49.0
Row: 1, Col: 2, Value: 10.0
Row: 1, Col: 3, Value: 9.0
Row: 1, Col: 4, Value: 31.0
Row: 1, Col: 5, Value: 2.0
Variable rate
demand notes
(VRDNs) 47%
Commercial
paper 16%
Tender bonds 4%
Municipal
notes 32%
Other 1%
Variable rate
demand notes
(VRDNs) 49%
Commercial
paper 10%
Tender bonds 9%
Municipal
notes 31%
Other 1%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS OCTOBER 31, 1994
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - 86.7%
Allendale BAN 3.27% 11/10/94 $ 807,575 $ 807,598
Atlantic County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
3.30%, LOC Marine Midland Bank, Hong Kong &
Shanghai Banking Corp., VRDN 200,000 200,000
Bayonne BAN 3.95% 1/15/95 2,000,000 2,001,008
Berkeley Township BAN:
2.84% 11/30/94 1,567,000 1,567,046
3.86% 4/30/95 2,000,000 2,000,760
Bernards Township Swr. Auth. Swr. Rev. Rfdg. Bonds,
Series 1985, 2.875% tender 12/15/94 4,000,000 4,000,000
Bloomingdale BAN 4.25% 3/22/95 1,000,000 1,002,371
Burlington County BAN 2.77% 11/4/94 1,600,000 1,600,002
Camden County BAN 3.25% 2/16/95 4,325,000 4,325,802
Cape May County Muni. Util. Auth. Solid Wst. Resource
Recovery Rev. Bonds (Daneco Cape May Inc.)
Series 91, 2.80% tender 11/30/94 (b) 3,800,000 3,800,000
Carlstadt Borough BAN 3.54% 2/13/95 1,500,000 1,500,160
Essex County Impt. Auth. Rev. (Pooled Gov't Loan Prog.),
VRDN:
Series 1985, 3.25%, LOC Banco Santander Puerto Rico 1,700,000
1,700,000
Series 1986, 3.25%, LOC Banco Santander Puerto Rico 1,800,000
1,800,000
Essex County TAN 3.75% 12/19/94 16,800,000 16,814,018
Gloucester County Poll. Cont. Fin. Auth. Poll. Cont. Rev.:
Rfdg. (Monsanto Co. Proj.) Series 1992, 3.25%,
VRDN (b) 1,100,000 1,100,000
(Mobil Oil Refining) Series 1993 A, 2.90%, VRDN 6,500,000 6,500,000
Hamilton Township TAN 4.25% 12/15/94 6,600,000 6,607,900
Hudson County BAN 4.55% 10/11/95 6,000,000 6,008,109
Hudson County Impt. Auth. Rev. (Essential Purp. Pooled
Gov't. Loan Prog.) Series 1986, 3.65%,
LOC Marine Midland Bank, VRDN 33,460,000 33,460,000
Hudson County TAN 4.17% 2/17/95 9,000,000 9,005,688
Lacey Township BAN 4% 5/9/95 1,600,000 1,600,389
Lakewood BAN 4.05% 4/26/95 1,200,000 1,200,277
Longbranch TAN 4% 3/31/95 4,500,000 4,501,789
Mercer County BAN 4.75% 7/13/95 16,000,000 16,075,772
Mercer County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
Series 1985, 3.25%, LOC Credit Suisse Bank, VRDN 1,000,000 1,000,000
Middlesex County Gen. Oblig. Bonds 7% 3/15/95 1,375,000 1,420,652
Millburn Township TAN 3.02% 11/15/94 1,200,000 1,200,054
Morristown BAN 4.50% 5/25/95 2,800,000 2,807,557
New Jersey Bldg. Auth. Participating VRDN, Series BTP-6,
3.65%, (BPA Bankers Trust) (c) 2,392,000 2,392,000
New Jersey Econ. Dev. Auth. 1st Mtg. Rev.
(Franciscan Oaks Proj.) Series 1992 B, 3.20%,
LOC Bank of Scotland, VRDN 1,200,000 1,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN:
Rfdg. (Curtiss-Wright Corp.) Series 1992, 3.25%,
LOC Bank of Nova Scotia $ 1,000,000 $ 1,000,000
Rfdg. (RJB Associates 1983 Proj.) 3.40%,
LOC PNC Bank 500,000 500,000
(80 Carter Drive Assoc. Proj.) Series 84, 3.65%,
LOC Marine Midland Bank 480,000 480,000
(Composite Issue 1989-B) 3.50%,
LOC Barclays Bank (b) 650,000 650,000
(Composite Issue-Alesi Graphics Inc.) Series 89 AA, 3.50%,
LOC Barclays Bank (b) 850,000 850,000
(Composite Issue-Ellison School Inc.) Series 89 KK, 3.40%,
LOC Barclays Bank 650,000 650,000
(Danic Urban Renewal Co. Proj.) Series 1985, 3.45%,
LOC Marine Midland Bank 1,800,000 1,800,000
(Dial Realty) Series 1988-L, 3.50%,
LOC Barclays Bank (b) 2,600,000 2,600,000
(Fieldstone Corp.) Series 1988 K, 3.50%,
LOC Barclays Bank (b) 1,300,000 1,300,000
(Guttenplan's Bakery) Series 1989-G, 3.50%
LOC Barclays Bank (b) 3,000,000 3,000,000
(Herzel Mor Corp.) Series 1989 L, 3.50%,
LOC Barclays Bank (b) 600,000 600,000
(Holt Hauling & Warehousing Inc.) Series 1993-1, 3.625%,
LOC Meridian Bank (b) 1,250,000 1,250,000
(Lamart Corporation) Series 1989 JJ, 3.50%,
LOC Barclays Bank (b) 850,000 850,000
(PVC Container Corp.) Series 87-D,
3.50%, LOC Nat'l. Westminster Bank (b) 2,565,000 2,565,000
(Polymeric Resources Corp. Rfdg. Proj.) Series 88 C,
3.60%, LOC Bank of Tokyo (b) 600,000 600,000
(Russ Berrie & Co. Inc.) 3% LOC Bank of New York 700,000 700,000
(The Nash Group 85 Proj.) Series 1986, 3.45%,
LOC Chemical Bank (b) 670,000 670,000
New Jersey Econ. Dev. Auth. Econ. Growth Rev., VRDN:
(Eastern Silk) Second Series D2, 3.45%,
LOC Banque Nat'l. de Paris (b) 1,560,000 1,560,000
(Richard L Tauber Issue) Series 93 B-1, 2.70%,
LOC Nat'l. Westminster Bank 4,485,000 4,485,000
Series E-1, 3.35% LOC Nat'l. Westminster Bank 2,100,000 2,100,000
Series H, 3.35% LOC Nat'l. Westminster Bank (b) 1,000,000 1,000,000
New Jersey Econ. Dev. Auth. Ind. Dev. Rev.
(National Refrigerant) 3.625%, LOC Corestate,
VRDN (b) 1,500,000 1,500,000
New Jersey Econ. Dev. Auth. Ind. & Econ. Dev. Rev.
(Block Drug Corp.) Series A, 3.50%,
LOC Trust Co. Bank of Georgia, VRDN 715,000 715,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Port Facs. Rev.
(Trailer Marine Proj.) Series 1983, 3.25%, LOC Chemical
Bank, Manufacturer's Hanover Trust, VRDN $ 1,000,000 $ 1,000,000
New Jersey Econ. Dev. Auth. Rev. Bonds:
(Chambers Cogeneration Proj.) Series 1991 (b):
3.25% tender 11/14/94, LOC Swiss Bank Corp. 3,500,000 3,500,000
3.25% tender 11/18/94, LOC Swiss Bank Corp. 4,000,000 4,000,000
3.25% tender 12/13/94, LOC Swiss Bank Corp. 3,000,000 3,000,000
3.55% tender 1/13/95, LOC Swiss Bank Corp. 1,500,000 1,500,000
3.55% tender 1/18/95, LOC Swiss Bank Corp. 5,000,000 5,000,000
3.55% tender 1/27/95, LOC Swiss Bank Corp. 4,000,000 4,000,000
(Exxon Proj. 1989) 3% tender 11/15/94 6,100,000 6,100,000
(Keystone Proj.) Series 1992 (b):
3.20% tender 11/16/94, LOC Union Bank of
Switzerland 4,860,000 4,860,000
3.20% tender 11/17/94, LOC Union Bank of
Switzerland 5,500,000 5,500,000
3.55% tender 1/13/95, LOC Union Bank of
Switzerland 7,200,000 7,200,000
(Morris Hall/St. Lawrence Inc.) Series 1993, 3.75%
tender 11/1/94, LOC New Jersey Nat'l Bank 1,900,000 1,900,000
New Jersey Econ. Dev. Auth. Tender Option Bonds (c):
Series MGT 49-E 3.40%,
(Liquidity Facility Morgan Guaranty) 2,000,000 2,000,000
Series MGT 49-F, 3.40%,
(Liquidity Facility Morgan Guaranty) 1,700,000 1,700,000
New Jersey Gen. Oblig. Participating VRDN (c):
Series 9, 3.40%
(Liquidity Facility Morgan Guaranty Trust Co.) 7,125,000 7,125,000
Series 21, 3.40%
(Liquidity Facility Morgan Guaranty Trust Co.) 7,000,000 7,000,000
Series BTP-104, 3.60%
(Liquidity Facility Banker's Trust Co.) 7,785,000 7,785,000
New Jersey Gen. Oblig. Rfdg. Bonds Series A, 7.90%
8/1/95 2,500,000 2,568,954
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN (c):
Series PA-81, 3.50%
(Liquidity Facility Merrill Lynch & Co.) (b) 1,500,000 1,500,000
Series 94C-3004, 3.51%
(Liquidity Facility Citibank) (MBIA Insured) 5,100,000 5,100,000
Series 94C-3003, 3.66%
(Liquidity Facility Citibank) (MBIA Insured) 6,200,000 6,200,000
New Jersey Participating VRDN, Series 1991 A-13, 3.40%
(Liquidity Facility Sakura Bank) (c) 1,055,000 1,055,000
New Jersey Sports and Exposition Auth. Rev., Series 1992 C,
3.25%, (MBIA Insured), VRDN 7,150,000 7,150,000
New Jersey Turnpike Auth. Turnpike Rev., Series 1991 D,
3.15%, BPA Society Generale, (FGIC Insured), VRDN 23,900,000 23,900,000
North Bergen BAN 3.95% 1/27/95 1,635,000 1,635,189
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
North Brunswick Township:
BAN 3.75% 2/9/95 $ 1,400,000 $ 1,401,119
TAN 4% 12/1/94 750,000 750,483
Ocean City BAN 3.69% 1/4/95 1,200,000 1,200,244
Passaic County BAN 3.68% 12/7/94 2,700,000 2,700,600
Pine Beach BAN 4.10% 3/30/95 630,400 630,648
Princeton Township TAN 4% 1/31/95 1,200,000 1,201,463
Roxbury Township BAN 3.94% 3/16/95 1,000,000 1,000,214
Rutherford TAN 4.50% 2/15/95 1,200,000 1,203,038
Salem County Ind. Poll. Cont. Fin. Auth. Poll Cont. Rev. Bonds
(Philadelphia Elec. Co.) Series 1993 A:
3.25% tender 11/18/94, LOC Toronto Dominion 2,000,000 2,000,000
3.60% tender 2/14/95, LOC Toronto Dominion 2,600,000 2,600,000
Somerset County Ind. Poll. Cont. Auth.
(Somerset New Jersey Minnesota Mining &
Manufacturing 3M) 3.20%, VRDN 100,000 100,000
Union County Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Exxon Proj.) Series 1989, 2.90% tender 11/7/94 4,000,000 3,999,824
Vernon Township BAN 3.85% 1/13/95 700,000 700,203
Wall Township BAN 4.75% 10/26/95 1,500,000 1,504,942
Warren County BAN 4.10% 5/31/95 875,595 875,836
West Deptford Township BAN 4.50% 2/15/95 1,100,000 1,101,553
West Orange BAN 4% 4/5/95 1,989,000 1,992,772
Woodbridge Township BAN:
3.07% 11/7/94 13,000,000 13,000,100
4.13% 7/6/95 14,000,000 14,000,840
344,866,974
NEW YORK & NEW JERSEY - 10.0%
New York & New Jersey Port Auth. Rev.:
Series 1991, 3.851%, VRDN (b) 6,400,000 6,400,000
Series 1992, 3.44%, VRDN 6,900,000 6,900,000
New York & New Jersey Port Auth. Series A, CP (b):
3.55% 1/9/95 (Liquidity Facility Daiwa Bank) 1,790,000 1,790,000
3.60% 1/12/95 (Liquidity Facility Daiwa Bank) 8,330,000 8,330,000
New York & New Jersey Port Auth. Spl. Proj. Rev.
(Kiac Partners Proj.) Series 3 (b):
3.35%, LOC Deutsche Bank, VRDN 6,000,000 6,000,000
3.35%, LOC Deutsche Bank, VRDN 10,600,000 10,600,000
40,020,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - 3.3%
Puerto Rico Commonwealth Participating VRDN, Series PW6,
3.40% (Liquidity Facility Bank of Nova Scotia) (c) $ 5,415,000 $ 5,415,000
Puerto Rico Hsg. Fin. Corp. Multi-Family Mtg. Rev.
Tender Option Bonds Series 90I, 2.80% tender 11/15/94
(Liquidity Facility Citibank) (AMBAC Insured) (c) 7,585,000 7,584,183
12,999,183
TOTAL INVESTMENTS - 100% $ 397,886,157
Total Cost for Income Tax Purposes $ 397,883,073
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
TAN - Tax 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.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At October 31, 1994, the fund had a capital loss carryforward of
approximately $24,000 which will expire on October 31, 2001.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1994
ASSETS
Investment in securities, at value - See accompanying $ 397,886,157
schedule
Cash 494,530
Receivable for investments sold 9,851,027
Interest receivable 2,491,278
TOTAL ASSETS 410,722,992
LIABILITIES
Payable to custodian bank $ 674,471
Payable for investments purchased 14,000,840
Dividends payable 13,684
Accrued management fee 99,388
TOTAL LIABILITIES 14,788,383
NET ASSETS $ 395,934,609
Net Assets consist of:
Paid in capital $ 395,928,345
Accumulated net realized gain (loss) on investments 3,180
Unrealized gain from accretion of market discount 3,084
NET ASSETS, for 395,928,345 shares outstanding $ 395,934,609
NET ASSET VALUE, offering price and redemption price per $1.00
share ($395,934,609 (divided by) 395,928,345 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1994
INTEREST INCOME $ 9,917,643
EXPENSES
Management fee $ 1,820,307
Non-interested trustees' compensation 2,149
Total expenses before reductions 1,822,456
Expense reductions (796,773) 1,025,683
NET INTEREST INCOME 8,891,960
REALIZED AND UNREALIZED GAIN (LOSS) 8,310
Net realized gain (loss) on investment securities
Increase (decrease) in net unrealized gain from 2,954
accretion of market discount
NET GAIN (LOSS) 11,264
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,903,224
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED OCTOBER 31,
1994 1993
INCREASE (DECREASE) IN NET ASSETS
Operations $ 8,891,960 $ 7,069,379
Net interest income
Net realized gain (loss) 8,310 (6,081)
Increase (decrease) in net unrealized gain from 2,954 130
accretion of market discount
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 8,903,224 7,063,428
FROM OPERATIONS
Dividends to shareholders from net interest income (8,891,960) (7,069,379)
Share transactions at net asset value of $1.00 per share 396,044,405 246,461,045
Proceeds from sales of shares
Reinvestment of dividends from net interest income 8,641,755 6,870,321
Cost of shares redeemed (322,239,669) (289,060,254)
Net increase (decrease) in net assets and shares 82,446,491 (35,728,888)
resulting from share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 82,457,755 (35,734,839)
NET ASSETS
Beginning of period 313,476,854 349,211,693
End of period $ 395,934,609 $ 313,476,854
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31, MAY 1, 1990
(COMMENCEME
NT
OF OPERATIONS)
TO
OCTOBER 31,
1994 1993 1992 1991 1990
SELECTED PER-SHARE DATA
Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period
Income from .024 .021 .032 .047 .029
Investment
Operations
Net interest
income
Less Distributions (.024) (.021) (.032) (.047) (.029)
From net interest
income
Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
TOTAL RETURN B 2.45% 2.17% 3.24% 4.84% 2.92%
RATIOS AND SUPPLEMENTAL DATA
Net assets, $ 395,935 $ 313,477 $ 349,212 $ 348,142 $ 210,157
end of period
(000 omitted)
Ratio of expenses to .28% .44% .29% .11% -
average net
assets C
Ratio of expenses to .50% .50% .50% .50% .50%A
average net assets
before expense
reductions C
Ratio of net interest 2.44% 2.15% 3.20% 4.68% 5.90%A
income to average
net assets
</TABLE>
A ANNUALIZED
B 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 THE ADVISER NOT REDUCED CERTAIN EXPENSES DURING THE PERIODS
SHOWN.
C SEE NOTE 3 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1994
1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan New Jersey Municipal Money Market Portfolio (the fund) is a fund of
Fidelity Beacon Street Trust (the trust) and is authorized to issue an
unlimited number of shares. The trust is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Delaware business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. 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, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes 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. Accretion
of market discount represents unrealized gain until realized at the time of
a security disposition or maturity.
EXPENSES. Most expenses of the 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.
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. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, including the cost of providing
shareholder services, 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 .50% of the fund's average net assets.
To offset the cost of providing shareholder services, FMR or its affiliates
collect certain transaction fees from the fund's shareholders. For the
period, fees collected from shareholders amounted to $8,170.
SUB-ADVISER FEE. As the 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.
3. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above a specified percentage of average net assets. During the
period, this expense limitation ranged from .25% to .50% of average net
assets and the reimbursement reduced expenses by $796,773.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of Fidelity Beacon Street Trust:
Spartan New Jersey Municipal Money Market Portfolio:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Beacon Street Trust: Spartan New Jersey Municipal Money Market
Portfolio at October 31, 1994, the results of its operations for the year
then ended, the changes in its net assets for each of the two years then
ended, and its financial highlights for the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities owned at October 31, 1994 by
correspondence with the custodian and brokers, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Dallas, Texas
November 29, 1994
TO WRITE FIDELITY
If more than one address is listed, 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.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
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 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
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 VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East 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
90 Alhambra Plaza
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
8885 Ladue Road
Ladue, 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
4611 Sharon Road
Charlotte, 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
215 South State 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
INVESTMENT ADVISER
(registered trademark)
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
Fred L. Henning, Jr., Vice President
Scott Orr, Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
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
FIDELITY'S TAX-FREE
MONEY MARKET FUNDS
California Tax-Free Money Market
Connecticut Municipal Money Market
Massachusetts Tax-Free Money Market
Michigan Municipal Money Market
New Jersey Tax-Free Money Market
New York Tax-Free Money Market
Ohio Municipal Money Market
Spartan Arizona Municipal
Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
Tax-Exempt Money Market
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 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
FIDELITY
(registered trademark)
TAX-EXEMPT
MONEY MARKET
TRUST
ANNUAL REPORT
OCTOBER 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 9 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 30 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 34 Notes to the financial statements.
REPORT OF INDEPENDENT
ACCOUNTANTS 36 The auditor's opinion.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The year so far has been an unsettling time for many investors. For
example, after three years of a nearly perfect environment for stock market
investing, stock prices generally fell from February through June, and bond
prices fell, as well. Although there was a late-summer stock rally, no one
can know for sure what will happen in the months ahead.
We do know, however, that market ups and downs are a normal part of
investing. We have historically seen corrections of 10% or more every two
years. That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful investors in
every market cycle.
First, take a long-term approach when investing. If you can afford to leave
your money invested through the inevitable ups and downs of financial
markets, you will greatly reduce your vulnerability to any single decline.
Over time, for example, stock prices have gone up - and have significantly
outperformed other types of investments and stayed ahead of inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
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.SM
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
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 and reinvestment of its dividends (or income). 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.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Tax-Exempt Money Market Trust 2.33% 19.28% 52.19%
Consumer Price Index 2.61% 19.03% 41.98%
Average All Tax-Free
Money Market Fund 2.17% 18.11% 49.83%
CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, one year, five years, or 10 years. 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 373 tax-free money market
funds tracked by IBC/Donoghue. (The periods covered by the IBC/Donoghue
numbers are the closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Tax-Exempt Money Market Trust 2.33% 3.59% 4.29%
Consumer Price Index 2.61% 3.55% 3.57%
Average All Tax-Free
Money Market Fund 2.17% 3.38% 4.13%
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.
YIELDS
10/31/93 1/31/94 4/30/94 7/31/94 10/31/94
Fidelity Tax-Exempt 2.18% 1.97% 2.47% 2.51% 3.01%
Money Market Trust
Average All Tax-Free 2.02% 1.84% 2.37% 2.39% 2.83%
Money Market Fund
Fidelity Tax-Exempt 3.41% 3.08% 3.86% 3.92% 4.70%
Money Market Trust -
Tax-equivalent
Average All Taxable 2.66% 2.68% 3.15% 3.83% 4.40%
Money Market Fund
Row: 1, Col: 1, Value: 2.18
Row: 1, Col: 2, Value: 2.02
Row: 2, Col: 1, Value: 1.97
Row: 2, Col: 2, Value: 1.84
Row: 3, Col: 1, Value: 2.47
Row: 3, Col: 2, Value: 2.37
Row: 4, Col: 1, Value: 2.51
Row: 4, Col: 2, Value: 2.39
Row: 5, Col: 1, Value: 3.01
Row: 5, Col: 2, Value: 2.83
Fidelity Tax-Exempt
Money Market Trust
Average All
Tax-Free
Money Market
Fund
3% -
2% -
1% -
0%
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. You can
compare these yields to the average tax-free money market fund. Or you can
look at the fund's tax-equivalent yield, which assumes you're in the 36%
tax bracket. 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. And there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Sarah Zenoble, Portfolio Manager of Fidelity
Tax-Exempt Money Market Trust
Q. SARAH, WE'VE SEEN SOME SHARP MOVEMENTS IN INTEREST RATES DURING THE PAST
YEAR. WILL YOU BRING US UP TO DATE?
A. Sure. In February, the Federal Reserve Board acted to remove the
economic stimulus that low interest rates were generating. It did so by
nudging the federal funds rate-the rate banks charge each other for
overnight loans-up a quarter-point, to 3.25%. Two more quarter point
increases followed in March and April. Those were turbulent months. It was
obvious to most market participants that even higher rates were needed to
temper growth and ward off inflation, and we were always waiting for the
other shoe to drop. Then the Fed changed tactics slightly, opting for
larger rate increases at less frequent intervals, a half-point in May,
another half point in August. The market responded favorably to the Fed's
larger, less frequent moves, and has since settled down. By the end of
October, the federal funds rate had reached 4.75%.
Q. DID TAX-FREE INTEREST RATES FOLLOW TAXABLE RATES?
A. Yes, but not in lock-step. Factors other than Fed policy influenced
tax-free rates, and those caused some divergence. During the first half of
1994, for example, demand for short-term tax-free investments was so great
that the supply couldn't keep pace; that kept rates from rising as fast as
they might have. More importantly, though, as taxes have gone up, tax-free
interest rates haven't had to rise as fast as taxable rates to remain
attractive to high-income investors. The result has been a widening spread
between tax-free and taxable rates. For years, short-term tax-free rates
had hovered at around 74% of taxable rates, but lately the average has
fallen to around 68%.
Q. HOW DID YOU ADAPT THE FUND TO A RISING-RATE ENVIRONMENT?
A. Mainly by shortening the average maturity of the fund's investments,
which helped the fund respond more quickly to higher interest rates. By the
end of October, the fund's average maturity was 48 days, down sharply from
82 days a year ago. I also chose to invest in fewer variable rate demand
notes, or VRDNs, and changed instead to a laddered portfolio made up of
fixed-rate instruments of varying maturities, weighted toward the
short-term. The reason for that may not be obvious. The problem with owning
too many VRDNs
is that when rates are rising, everybody wants them, and you end up paying
for that with a lower yield.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on October 31, 1994 was 3.01%, up from 2.18%
a year ago. That equaled a 4.70% taxable rate for investors in the 36%
federal tax bracket. Through October 31, 1994, the fund's one-year total
return was 2.33%, compared to 2.17% for the average tax-exempt money market
fund, according to IBC/Donoghue.
Q. WHAT DO YOU THINK IS AHEAD?
A. I think it's probably fair to assume interest rates could move still
higher. By the time this report reaches shareholders, it's likely the Fed
will have already increased the federal funds rate again, to more than 5%.
And that may not be the end of it. The latest reported annualized growth
rate for the gross domestic product was 3.4%. That was higher than almost
anyone expected. It suggests that if the Fed hopes to achieve its target
growth rate of 2.5%, it may have more work to do in 1995. In fact, many
economists are predicting a federal funds rate of 7% or more by the end of
the year. Accordingly, I expect to maintain my cautious approach in the
months ahead, aiming for an average maturity in the short to neutral range.
FUND FACTS
GOAL: seeks high current
income free from federal
income tax while maintaining a
stable share price by investing
in high-quality, short-term
municipal securities
START DATE: January 2, 1980
SIZE: as of October 31, 1994,
more than $3 billion
MANAGER: Sarah Zenoble,
since October 1988; manager,
Spartan Municipal Money
Fund, since January 1992; and
various institutional tax-free
money market funds; joined
Fidelity in 1987
(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
money market funds have 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.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/94 4/30/94 10/31/93
0 - 30 60 63 59
31 - 90 26 24 11
91 - 180 5 10 4
181 - 397 9 3 26
WEIGHTED AVERAGE MATURITY
10/31/94 4/30/94 10/31/93
Fidelity Tax-Exempt
Money Market Trust 48 days 35 days 82 days
Average All Tax-Free
Money Market Fund* 51 days 47 days 68 days
ASSET ALLOCATION
AS OF OCTOBER 31, 1994 AS OF APRIL 30, 1994
Row: 1, Col: 1, Value: 50.0
Row: 1, Col: 2, Value: 32.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 16.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 1, Value: 51.0
Row: 1, Col: 2, Value: 22.0
Row: 1, Col: 3, Value: 5.0
Row: 1, Col: 4, Value: 21.0
Row: 1, Col: 5, Value: 2.0
Variable rate
demand notes
(VRDNs) 50%
Commercial
paper 32%
Tender bonds 2%
Municipal
notes 16%
Other -
Variable rate
demand notes
(VRDNs) 51%
Commercial
paper 22%
Tender bonds 5%
Municipal
notes 21%
Other 1%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS OCTOBER 31, 1994
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ALABAMA - 1.7%
Alabama Hsg. Fin. Auth. Multi-Family Hsg. Rev.:
Rfdg. Bonds (Rime Village Proj.) Series 88 B, 3.45%,
tender 12/20/94, LOC Southtrust Bank of Alabama $ 13,675 $ 13,675
(Gazebo East Proj.) Series 1991 B, 3.80%,
LOC Southtrust Bank of Alabama, VRDN 3,715 3,715
Chatam Ind. Dev. Board Poll. Cont. Rev. Bonds
(Alabama Elec. Coop. Proj.) Series 1993 :
3.40%, tender 11/8/94 (National Rural
Util. CFC Guaranteed) 16,500 16,500
3.50%, tender 12/19/94 (National Rural
Util. CFC Guaranteed) 13,100 13,100
Port City Med. Clinic Board Rev. Bonds (Mobile Infirmary
Assoc.) Series 1992 A, 3.75%, tender 1/12/95,
LOC Fuji Bank Ltd 13,000 13,000
59,990
ALASKA - 0.3%
Valdez Marine Terminal Rev. Rfdg.:
Bonds, Series 1994 A, 3.35% 12/16/94 6,500 6,500
Series 1994-B, 3.50%, VRDN 5,000 5,000
11,500
ARIZONA - 5.3%
Apache County Ind. Dev. Auth. Ind. Rev. VRDN:
(Tucson Elec. Pwr. Co. Springerville Proj.):
Series 1983 A, 3.35%, LOC Barclays Bank 5,700 5,700
Series 1983 B, 3%, LOC Bank of New York 48,000 48,000
Series 1983 C, 3.20%, LOC Bankers Trust Co. 1,700 1,700
Apache County Ind. Dev. Auth. Poll. Cont. Rev.
(Tucson Elec. Pwr. Co.) Series 1981 B, 3%,
LOC Mitsubishi Bank, VRDN 22,400 22,400
Arizona Agricultural Impt. & Pwr. Dist. Rev. CP:
(Salt River Proj.):
3.45% 12/19/94 15,263 15,263
3.45% 12/20/94 3,300 3,300
3.60% 1/18/95 14,051 14,051
Arizona Health Facs. Auth. Rev. VRDN:
(Samcor 1986 Loan Pool-Samaritan Health Care)
3.60% (FGIC Insured) 15,950 15,950
(Voluntary Hosp. Federation Pooled Loan Prog.):
Series 1985 A, 3.45% (FGIC Insured) 8,955 8,955
Series 1985 B, 3.45% (FGIC Insured) 7,800 7,800
Chandler Ind. Dev. Auth. Multi-Family Hsg. Rev. Rfdg.
(Southpark Apts.) 3.45%, LOC Citibank, VRDN 6,300 6,300
Maricopa County Poll. Cont. Rev. (Arizona Pub. Service Co.)
(Palo Verde Proj.) Series C, 3.40%, LOC Toronto-Dominion
Bank, VRDN 10,500 10,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ARIZONA - CONTINUED
Maricopa County Poll. Cont. Rev Bonds:
(Southern California Edison Co.):
Series 1985 C, 3.60%, tender 1/18/95 $ 4,300 $ 4,300
Series 1985 D, 3.60%, tender 1/17/95 3,600 3,600
Series 1985 E, 3.60%, tender 1/17/95 9,680 9,680
Series 1985 G, 3.60%, tender 1/19/95 4,000 4,000
Tucson Ind. Dev. Auth. Multi-Family Hsg. Rev. Rfdg.
(Freedom Park Apts. Proj.) Series 89 A, 3.60%,
LOC Sumitomo Bank,VRDN 5,295 5,295
186,794
ARKANSAS - 0.1%
Little Rock School Dist. Pulaski County TRAN,
Series 1994, 3.50% 12/29/94 4,400 4,400
CALIFORNIA - 6.8%
California Gen. Oblig. RAN:
Series 1994-95 B, 3.51% 6/28/95 40,000 39,998
Series A, 5% 6/28/95 15,500 15,594
3.75% 12/21/94 30,900 30,909
California TRAN (School Cash Reserve Prog. Auth.)
Series A, 4.50% 7/5/95 59,000 59,287
Los Angeles Commty. Redev. Agcy. Multi-Family Hsg.
Rev., VRDN:
(Grand Promenade Proj.) Series 1985, 3.80%,
LOC Tokai Bank 6,700 6,700
(Promenade Towers) 3.70%, LOC Tokai Bank 27,800 27,800
Los Angeles County TRAN 4.50% 6/30/94 8,000 8,021
Orange County Apt. Dev. Rev., VRDN:
(Hidden Hills) Issue U, Series C, 3.70%,
LOC Tokai Bank, 11,480 11,480
(Wlco Partners) Series 1985 C-2, 3.80%,
LOC Tokai Bank 9,800 9,800
Orange County Apt. Dev. Rev. Bonds (Issue #1)
(The Irvine Co.) Series 1985, 3.50%, tender 11/9/94 15,000 15,000
Orange County Hsg. Auth. Apt. Dev. Rev.
(Costa Mesa Partners) Series 1985-BB, 3.75%,
LOC Tokai Bank, VRDN 9,400 9,400
San Diego Multi-Family Hsg. Auth. Rev. (Nobel Court Apts.)
Series 1985 L, 3.80%, VRDN 6,110 6,110
240,099
COLORADO - 1.4%
Arapahoe County Cap. Impt. Trust Fund Hwy. Rev. Bonds
(Hwy. E-470 Proj.) Series 1986 D, 2.85% 2/28/95,
LOC Union Bank of Switzerland 12,300 12,300
Broomfield County Variable Rate TRAN, Series 1994,
4.78% 12/30/94 4,000 4,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
COLORADO - CONTINUED
Colorado TRAN, 4.50% 6/27/95 $ 10,000 $ 10,035
Moffat County Poll. Cont. Rev. (UTE Elec. Asoc., Inc.)
Series 1984, 3.55% (National Rural Util.
CFC Guaranteed) 24,200 24,200
50,535
DELAWARE - 0.7%
Delaware Econ. Dev. Auth. Multi-Family Rev.
(Schoolhouse Trust Prog.) 3.90%, LOC Marine Midland
Bank, VRDN 26,800 26,800
DISTRICT OF COLUMBIA - 0.2%
District of Columbia Gen. Oblig. Participating VRDN,
Series B-43, 3.70% (Liquidity Facility Sakura Bank),
(MBIA Insured) (b) 7,710 7,710
FLORIDA - 10.3%
Brevard County Hsg. Fin. Auth. Rev. (Sun Pointe Bay
Apts. Proj.) Series 1993, 3.55%, VRDN 500 500
Brevard County Hsg. Rev. (Palm Place Hsg. Proj.)
Series 1985, 3.35%, LOC Chemical Bank, VRDN 3,760 3,760
Broward County Fin. Auth. Multi-Family Hsg. Rev.:
(Jacaranda Village Apts. Proj.) 3.40%,
LOC Marine Midland Bank, VRDN 5,600 5,600
(Landings Inverrary Apts.) 3.45%, LOC PNC Bank,
N.A., VRDN 3,900 3,900
(Parkview Partnership Ltd. Proj.) Series 1985, 3.65%,
LOC Fuji Bank, VRDN 4,500 4,500
Collier County Health Facs. Auth. Health Facs. Rev.
(The Moorings Inc. Proj.) Series1989-B, 3.35%,
LOC National Australia Bank Ltd., VRDN 2,000 2,000
Dade County Ind. Dev. Auth. Ind. Dev. Rev., VRDN:
(Dolphins Stadium Proj.):
Series 1985 C, 3.50%, LOC Citibank 4,800 4,800
Series 1985 D, 3.50%, LOC Citibank 13,100 13,100
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev. (Players Club)
Series 1991 C, 3.53%, LOC Sumitomo Trust, VRDN 32,500 32,500
Florida Hsg. Fin. Agcy. Rev. (Oak Mill Creek Proj.)
Series 1985, 3.40%, LOC Chemical Bank, VRDN 4,800 4,800
Florida League of Cities (1st. Muni. Pooled Loan Prog.):
Series 1:
3.30%, tender 12/16/94, LOC Sumitomo Bank 9,500 9,500
3.50%, tender 1/13/95, LOC Sumitomo Bank 10,050 10,050
Series 2, 3.55%, tender 12/7/94, LOC Sumitomo Bank 4,300 4,300
Indian River County Hosp. Dist. Hosp. Rev. Bonds:
Series 1988, 3.80%, tender 2/9/95, LOC Kredietbank 7,150 7,150
Series 1990, 3.80%, tender 2/9/95, LOC Kredietbank 3,000 3,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
FLORIDA - CONTINUED
Indian Trace Commty. Dev. Dist. Rev. Bonds:
(Basin I Wtr. Mgt.) Series 1991:
3.70%, tender 11/2/94, LOC Tokai Bank $ 9,200 $ 9,200
3.70%, tender 11/2/94, LOC Tokai Bank 20,000 20,000
3.70%, tender 11/2/94, LOC Tokai Bank 2,000 2,000
Jacksonville Hosp. Rev. (Univ. Med. Ctr.), VRDN:
Series 1988, 3.20%, LOC Chemical Bank 5,000 5,000
Series 1989, 3.20%, LOC Barnett Bank 7,800 7,800
Lee County Hosp. Board Hosp. Rev. Bonds:
(Lee Memorial Hosp. Proj.):
Series 1985 D, 2.85% 11/14/94 (Liquidity Facility
Industrial Bank of Japan) 5,000 5,000
Series 1992 B:
3.40%, tender 11/16/94 (Liquidity Facility Industrial
Bank of Japan) 11,500 11,500
3.40%, tender 11/28/94 (Liquidity Facility Industrial
Bank of Japan) 2,700 2,700
3.20%, tender 11/29/94 (Liquidity Facility Industrial
Bank of Japan) 13,800 13,800
Series 1992 C:
2.85%, tender 11/14/94 (Liquidity Facility Industrial
Bank of Japan) 2,000 2,000
3.50%, tender 12/13/94 (Liquidity Facility Industrial
Bank of Japan) 7,000 7,000
Manatee County Hsg. Fin. Auth. (Harbour Pointe Proj.)
Series 1990-A, 3.90%, LOC Marine Midland Bank, VRDN 2,100 2,100
Naples Hosp. Rev. Series 1992, 3.60%, LOC Mellon Bank,
VRDN 12,000 12,000
Orange County Health Facs. Auth. Rfdg. Prog. Rev. Bonds.
(Pooled Hosp. Loan prog.) Series 1985, 3.40%, tender
11/8/94 (MBIA Insured) 9,000 9,000
Orange County Health Facs. Participating VRDN: (b)
Series BS-C44, 3.70% (Liquidity Facility Sakura Bank),
(MBIA Insured) 6,880 6,880
Series BS-C45, 3.70% (Liquidity Facility Sakura Bank),
(MBIA Insured) 6,835 6,835
Series BS-C46, 3.70% (Liquidity Facility Sakura Bank),
(MBIA Insured) 6,600 6,600
Orange County School Dist. TAN 4.75% 6/30/94 21,000 21,100
Orlando Wastewtr. Sys. Rfdg. Rev. Bonds Series 1990 A, 3.15%,
tender 12/9/94 (Liquidity Facility Dai-Ichi Kangyo Bank) 8,465 8,465
Palm Beach County Health Facs. Auth. Bonds
(Pooled Hosp. proj.) 3.70%, tender 1/25/94
(Liquidity Facility Credit Suisse) 5,700 5,700
Palm Beach County Ind. Dev. Rev. (Palm Beach Jewish
Commty. Campus Corp. Proj.) Series1990, 3.50%,
LOC Trust Company Bank of Georgia, VRDN 4,810 4,810
Pinellas County Health Facs. Auth. Rev.:
(Bayfront Med.) 3.30%, (FGIC Insured), VRDN 2,000 2,000
(Pooled Hosp. Loan Prog.) 3.70%,
LOC Chemical Bank, VRDN 4,400 4,400
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
FLORIDA - CONTINUED
Pinellas County Hsg. Fin. Auth. Multi-Family Mtg. Rev.
(Foxbridge Apts.) Series 1993 A, 3.45%,
LOC Citibank, VRDN $ 5,900 $ 5,900
Sarasota County Public Hosp. Dist. Hosp. Rev. Bonds:
(Sarasota Mem. Hosp.):
Series 1991:
3.40%, tender 11/15/94 (Liquidity Facility Sun Bank,
N.A. Orlando) 5,000 5,000
3.40%, tender 11/17/94 (Liquidity Facility Sun Bank,
N.A. Orlando) 5,000 5,000
3.45%, tender 11/18/94 (Liquidity Facility Sun Bank,
N.A. Orlando) 4,900 4,900
3.40%, tender 12/15/94 (Liquidity Facility Sun Bank,
,N.A. Orlando) 5,000 5,000
3.45%, tender 12/20/94 (Liquidity Facility Sun Bank,
N.A. Orlando) 1,800 1,800
3.70%, tender 1/12/95 (Liquidity Facility Sun Bank,
N.A. Orlando)) 4,000 4,000
Series 1993 A:
3.45%, tender 12/12/94 (Liquidity Facility
Goldman Sachs) 3,000 3,000
3.65%, tender 1/18/95 (Liquidity Facility
Goldman Sachs) 5,800 5,800
3.65%, tender 1/20/95 (Liquidity Facility
Goldman Sachs) 2,000 2,000
3.65%, tender 1/27/95 (Liquidity Facility
Goldman Sachs) 3,500 3,500
Sunshine State Governmental Fing. Comm. Rev. 3.45%
12/12/94 (Liquidity Facility Florida State Board
of Ed.), CP 13,440 13,440
Volusia County Health Facs. Auth. Rev. (Southwest Volusia
Healthcare Corp.) Series 1994 A, 3.40%,
LOC First Union Nat'l. Bank of North Carolina 15,000 15,000
West Orange Memorial Hosp. Tax Dist. Rev. Bonds
Series 1991-A1, 3.625%, tender 2/28/95,
LOC Societe Generale 3,400 3,400
363,090
GEORGIA - 6.4%
Albany Dougherty Payroll Dev. Auth. Poll. Cont. Rev. Rfdg.
(Philip Morris Cos. Proj.) 3.50%, VRDN 2,790 2,790
Burke County Dev. Auth. Poll. Cont. Rev. (Georgia Pwr. Co.)
Series 1994, 3.60%, VRDN 10,700 10,700
Cherokee County Wtr. & Swr. Auth. Participating VRDN,
Series 93, 3.55% (Liquidity Facility Merrill Lynch),
(MBIA Insured) 4,420 4,420
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
GEORGIA - CONTINUED
Clayton County Hsg. Auth. Multi-Family Hsg. Auth. Rev.
(Villa Rouge Apts. Proj.) Series 1990 C, 3.50%, BPA Barclays
Bank PLC, (FSA Insured), VRDN $ 3,900 $ 3,900
Cobb County Dev. Auth. Rev. (Institute Of Nuclear Operations)
Series 1992, 3.50%, LOC Trust Company Bank 4,780 4,780
Cobb County Gen. Oblig. TAN, Series 1994, 3.50%
12/30/94 18,500 18,516
Cobb-Marietta Coliseum & Exhibition Hall Auth.
Participating VRDN, Series PA-65, 3.60% (Liquidity
Facility Merrill Lynch), (MBIA Insured) (b) 11,000 11,000
Columbia County Care Facs. Rev. (Augusta Residential
Ctr./Brandon Wild Lifecare Ctr.) 3.50%,
LOC Trust Company Bank, VRDN 2,630 2,630
De Kalb County Hsg. Auth. Multi-Family Hsg. Rfdg.
(Wood Terrace Proj.) Series 1988, 3.525%,
LOC Bankers Trust, VRDN 2,900 2,900
De Kalb County Ind. Auth. Dev. Auth. (American Cancer
Society Inc. Proj.) Series 1988, 3.50%, LOC Trust Company
Bank, VRDN 6,225 6,225
Dekalb County Multi-Family Hsg. Rev. Bonds. (Post Apt.
Homes Proj.) Series 1994, 3.50%, LOC Trust Company
Bank, VRDN 3,300 3,300
Fulton County Hosp. Auth. Rev. Ctfs. (St. Joseph's Hosp. of
Atlanta) Series 1989, 3.15%, tender 11/10/94,
LOC Fuji Bank 7,500 7,500
Fulton-DeKalb County Hosp. Auth. RAN (Grady Health
Sys. Proj.) 3.85% 12/30/94, LOC Wachovia Bank 21,700 21,711
Georgia Gen. Oblig. Participating VRDN, Series 1993 D,
3.58% (Liquidity Facility Citibank)(b) 15,000 15,000
Georgia Muni. Elec. Auth. Participating VRDN, Series 94D,
3.61% (Liquidity Facility Citibank) (b) 22,400 22,400
Georgia Muni. Elec. Auth. Rev. Bonds:
(Gen. Resolution Proj.):
Series 1985 A, 3.55%, tender 12/7/94,
BPA Credit Suisse 11,000 11,000
Series 1985 B, 3.50%, tender12/8/94, BPA Morgan
Guaranty Trust Co. 14,650 14,650
(Proj. One) Series 1994 C:
3.50%, tender 12/12/94 (Liquidity Facility Credit Suisse) 15,000
15,000
3.55%, tender 12/19/94 (Liquidity Facility Credit Suisse) 5,000 5,000
Georgia Muni. Elec. Auth. Rev. Participating VRDN,
Series 1994 D, 3.70% (Liquidity Facility Norwest Bank N.A.),
(FGIC Insured) (b) 2,000 2,000
Georgia Muni. Gas Auth. Gas Rev. Bonds:
(Southern Portfolio I Proj.):
Series 1991 A, 3.70%, tender 1/25/95,
LOC Wachovia Bank 4,100 4,100
Series 1991 B, 3.15%, tender 11/22/94, LOC
Wachovia Bank of North Carolina 4,000 4,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
GEORGIA - CONTINUED
Georgia Muni. Gas Auth. Gas Rev. Bonds: - continued
(Transco Portfolio I Proj.):
Series 1991 A, 3.70%, tender 1/25/95,
LOC Credit Suisse $ 2,600 $ 2,600
Series 1991 B, 3.40%, tender 11/8/94,
LOC Credit Suisse 7,500 7,500
Gwinnett County Wtr. & Swr. Auth. Participating VRDN,
Series BT-17, 3.65%, BPA Bankers Trust (b) 7,069 7,069
Marietta Hsg. Auth. Multi-Family Hsg. Rev. Rfdg.
(Wood Pointe Apts.) Series 1993, 3.50%, VRDN 4,895 4,895
Roswell Hsg. Auth. Multi-Family Hsg. Rev.:
Rfdg. (Ski Lodge Apts. Proj.) Series 1991 B, 3.60%,
LOC AmSouth Bank, VRDN 3,230 3,230
(Autumnbrook Apts. Proj.) Series 1991 A, 3.55%,
LOC AmSouth Bank, VRDN 7,165 7,165
225,981
ILLINOIS - 3.5%
Aurora Multi-Family Hsg. Rev. Rfdg. (Fox Villages Proj.)
Series 93, 3.65%, LOC Sumitomo Bank, VRDN 10,195 10,195
Cook County Rev. (Claretian Assoc. Neighborhood Dev. Office)
Series 1990, 3.50%, LOC LaSalle Nat'l. Corp., VRDN 4,165 4,165
Hazel Crest Retirement Ctr. Rev. (Waterford Estates Proj.), VRDN:
Series 1992-A:
3.65%, LOC Sumitomo Bank 1,080 1,080
3.65%, LOC Sumitomo Bank 1,640 1,640
3.65%, LOC Sumitomo Bank 2,890 2,890
Illinois Dev. Fin. Auth. (Long Term Care Medicaid Prog.)
Series 94 A, 3.50% 12/15/94, LOC Canadian
Imperial Bank, CP 4,168 4,168
Illinois Dev. Fin. Auth. Multi-Family Hsg. Rev. Rfdg.
(Garden Glen Apts.) Series 1993, 3.55%, Continental
Casualty Guaranteed, VRDN 8,410 8,410
Illinois Dev. Fin. Auth. Rev. (Museum of Contemporary Art
Proj.) Series 1994, 3.55%, LOC NBD Bank, VRDN 9,400 9,400
Illinois Edl. Facs. Auth. Rev. (Northwestern Univ.)
Series 1988, 3.50%, VRDN 4,200 4,200
Illinois Gen. Oblig. TRAN 4.75 4/17/95 20,000 20,076
Illinois Health Facs. Auth. Rev., VRDN:
(Central Dupage Hosp. Assoc. Proj.) Series 1990, 3.70%,
LOC Industrial Bank of Japan 2,000 2,000
(Evangelical Hosp. Proj.) 3.40%, LOC First Nat'l. Bank of
Chicago 7,900 7,900
(Pekin Mem. Hosp.) Series 1993 C, 3.45%,
LOC Lasalle Bank 3,900 3,900
(West Suburban Hosp. Med. Ctr. Proj.) Series 1991, 3.55%,
LOC First Chicago Corp. 12,500 12,500
Liberty Ind. Rev. Rfdg. (Libertyville Manor Facs. Proj.)
Series 1992, 3.45%, LOC First of America, VRDN 4,740 4,740
Mundelein Ind. Dev. Rev. Rfdg. (1200 Town Line Rd. Proj.)
3.50%, LOC Harris Trust & Savings Bank, VRDN 2,900 2,900
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ILLINOIS - CONTINUED
Rockford Ind. Dev. Rev. (Longview Fiber Co.) Series 1987,
3.35%, LOC Algemene Bank, VRDN $ 2,000 $ 2,000
Schaumberg Multi-Family Rev. (Treehouse II Apts. Proj.)
Series 1989, 3.65%, LOC Sumitomo Bank, VRDN 21,285 21,285
123,449
INDIANA - 3.1%
Dyer Health Care Facs. Participating VRDN, 3.60%,
LOC Bank One (FHA Insured) (b) 3,595 3,595
Ft. Wayne Health Care Facs. Participating VRDN, Series 93A,
3.60% (Liquidity Facility Bank One), (FGIC Insured)(b) 3,720 3,720
Indiana Dev. Fin. Auth. Ind. Dev. Rev. Rfdg. (Group Dekko Int'l.,
Inc. Proj.) 3.50%, LOC Bank One, Indianapolis, VRDN 2,410 2,410
Indiana Health Facs. Fin. Auth. Hosp. Rev. (Deaconess Hosp.)
Series 1992, 3.45%, LOC Fuji Bank, VRDN 1,000 1,000
Indianapolis Econ. Dev. Rev. Rfdg. (Morningside of College
Park) Series 93, 3.50%, LOC Bank One, VRDN 6,585 6,585
Indianapolis Health Care Facs. Participating VRDN, 3.60%
(Liquidity Facility Bank One Akron)(b) 4,145 4,145
Jasper County Poll. Cont. Rev. Bonds:
(Northern Indiana Pub. Service Proj.):
Series 1988 A, 3.60%, tender 1/19/95,
LOC Barclays Bank 6,500 6,500
Series 1988 B:
3.60%, tender 1/19/95, LOC Barclays Bank 6,000 6,000
3.65%, tender 1/27/95, LOC Barclays Bank 10,000 10,000
Series 1988 C:
3.20%, tender 11/9/94, LOC Barclays Bank 4,300 4,300
3.45%, tender 12/12/94, LOC Barclays Bank 4,500 4,500
Series 1988 D, 3.55%, tender 1/24/95,
LOC Barclays Bank 4,000 4,000
Kendallville Ind. Dev. Rev. Series 1993, (Philip Morris Cos.,
Inc.) 3.50%, VRDN 2,475 2,475
Rockport Poll. Cont. Rev. Rfdg. (Indiana & Michigan Elec. Co.)
3.90%, LOC Long-Term Cr. Bank of Japan, VRDN 7,500 7,500
Sullivan Poll. Cont. Rev. Bonds (Hoosier Energy Elec. Coop.):
Series 1985L-1:
3.40%, tender 11/18/94
(National Rural Util. CFC Guaranteed) 5,795 5,795
3.65%, tender 1/26/95
(National Rural Util. CFC Guaranteed) 7,600 7,600
Series1985L-2, 3.60%, tender 1/20/95
(National Rural Util. CFC Guaranteed) 5,590 5,590
Series 1985L-3:
3.40%, tender 11/18/94
(National Rural Util. CFC Guaranteed) 2,800 2,800
3.60%, tender 1/20/95
(National Rural Util. CFC Guaranteed) 3,890 3,890
Series 1985L-4, 3.65% tender 1/26/95
(National Rural Util. CFC Guaranteed) 6,800 6,800
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
INDIANA - CONTINUED
Sullivan Poll. Cont. Rev. Bonds (Hoosier Energy Elec. Coop.) - continued
Series 1985L-5:
3.40%, tender 11/18/94
(National Rural Util. CFC Guaranteed) $ 2,755 $ 2,755
3.60%, tender 1/19/95
(National Rural Util. CFC Guaranteed) 3,210 3,210
Valparaiso Econ. Dev. Rev. (Indiana Retirement Commty. Proj.)
3.50%, LOC Bank One, VRDN 5,000 5,000
110,170
IOWA - 0.4%
Des Moines Comm. Dev. Rev. (Levy, Malone & Co. Proj. #1)
Series 1984, 3.15%, LOC FirstBank, N.A., VRDN 5,900 5,900
Iowa Fin. Auth. Small Bus. Dev. Rev. ( Corporate Ctr. Proj.),
3.775%, VRDN 6,000 6,000
Iowa Univ. Facs. Corp. Rev. (Human Biology Research Facs. Proj.)
Series 1985-A, 3.50%, LOC Bank of Tokyo, VRDN 1,000 1,000
12,900
KANSAS - 0.9%
Burlington Poll. Cont. Rev. (Kansas Elec. Pwr. Coop.):
Series 1985C-1, 3.60%, tender 1/18/95
(National Rural Util. CFC Guaranteed) 2,500 2,500
Series 1985C-2:
3.45%, tender 12/12/94
(National Rural Util. CFC Guaranteed) 6,450 6,450
3.65%, tender 1/12/95
(National Rural Util. CFC Guaranteed) 4,250 4,250
Olathe Edl. Facs. Rev. (College Assoc. Pooled Ed. Loan
Prog.) Series 1989 A, 3.45%,
LOC Marine Midland Bank, VRDN 15,860 15,860
Winfield Ind. Dev. Rev. (Binney & Smith, Inc. Proj.)
Series 1982 A, 3.25%, LOC Morgan Guaranty Trust Co.,
VRDN 3,400 3,400
32,460
KENTUCKY - 1.9%
Danville Multi-City Lease Bonds (Muni. League Pooled
Lease Fin. Prog.) 3.75%, tender 12/8/94,
LOC Marine Midland Bank 3,870 3,870
Jefferson County Poll. Cont. Rev. Bonds. (Louisville Gas &
Elec. Co.) Series 1993 A, 3.55%, tender 1/24/95 5,135 5,135
Kentucky Assoc. of Counties Reinsurance Trust Rev. Series
1990, 3.70%, LOC Hong Kong & Shanghai Banking,
Marine Midland Bank, VRDN 17,000 17,000
Louisville & Jefferson Counties Metro. Swr. Dist. Participating
VRDN: (b)
Series PA-1010, 3.60% (Liquidity Facility Merrill Lynch),
(MBIA Insured) 7,400 7,400
Series PA-2, 3.60% (Liquidity Facility Merrill Lynch),
(MBIA Insured) 10,620 10,620
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
KENTUCKY - CONTINUED
Louisville & Jefferson Counties Metro. Swr. Dist. Swr. Sys.
Rev., VRDN:
Series 1994 A, 3.40%, LOC PNC Bank, N.A. $ 7,000 $ 7,000
Series 1994 B, 3.40%, LOC PNC Bank, N.A. 5,000 5,000
Trimble County Poll. Cont. Rev. Bonds (Louisville Gas & Elec. Co.)
Series 1992 A:
3.60%, tender 1/17/95 9,300 9,300
3.60%, tender 1/19/95 2,715 2,715
68,040
LOUISIANA - 3.1%
Jefferson Parish (W. Jefferson Med. Ctr. Dist. #1) Series 1986,
3.70%, LOC Citibank, VRDN 27,320 27,320
Louisiana Gen. Oblig. Rfdg. Bonds Series 1991 A, 3.65%,
tender 1/24/95, LOC Fuji Bank 4,100 4,100
Louisiana Public Facs. Auth. Hosp. Rev. Rfdg. (Willis-Knighton
Med. Ctr. Proj.) Series 92, 3.30%, (AMBAC Insured), VRDN 8,000 8,000
Louisiana Pub. Facs. Auth. Rev. VRDN:
(College & Univ. Equip. & Cap. Facs. Rev.) Series 1985,
3.55%, (FGIC Insured) 18,265 18,265
(Greenbriar Hosp. Proj.) Series 1984, 3.40%,
LOC Soceite Generale 1,800 1,800
Louisiana Pub. Facs. Hosp. Equip. Rev. Rfdg. Series 1985, 3.50%
(Liquidity Facility Sakura Bank), (MBIA Insured), VRDN 6,000 6,000
Orleans Levee Dist. Rev. VRDN:
(Levee Impt.) Series 1986, 3.95%, LOC Fuji Bank 13,940 13,940
(Pub. Impt.) Series 1986, 3.95%, LOC Fuji Bank 13,835 13,835
St. Charles Parish Poll. Cont. Rev. Rfdg. (Monsanto Co. Proj.)
Series 1994, 3.50%, VRDN 11,725 11,725
West Baton Rouge Parish Rev. Rfdg. Bonds (Ind. Dist No. 3)
(Dow Chemical) Series 1991, 3.40%, tender 11/18/94 3,000 3,000
107,985
MAINE - 0.2%
Biddeford Resource Recovery Rev. (Energy Recovery Co. Proj.)
Series 1985, 3.45%, LOC Bank of America, VRDN 6,000 6,000
MARYLAND - 1.1%
Howard County Cons. Pub. Impt. BAN Series A, 3.65%, tender
1/26/95 (Liquidity Facility Swiss Bank Corp.) 10,000 10,000
Howard County Multi-Family Hsg. Rev. (Chase Greens Proj.)
Series 85 A, 3.525%, LOC Bankers Trust, VRDN 4,800 4,800
Maryland Health & Higher Ed. Facs. Auth. Rev., VRDN:
(Leland Memorial Hosp.), 3.55%, LOC NationsBank 5,160 5,160
(Pooled Loan Prog.) Series D, 3.55%,
LOC NationsBank of Maryland 5,075 5,075
Montgomery County Hsg. Opportunities Commission Rev.
Bonds (Oakwood-Gaithersburg), Series 91A, 2.90%,
tender 11/1/94, LOC G.E. Capital Corp. 12,000 12,000
Prince George's County Sports Arena Rev. (Capital Ctr. Fac.),
3.55%, LOC NationsBank, VRDN 3,560 3,560
40,595
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MICHIGAN - 1.0%
Dearborn Econ. Dev. Corp. (Oakbrook Common Proj.)
Series 1991, 3.45%, LOC Mellon Bank, VRDN $ 4,000 $ 4,000
Michigan Bond Auth. Rev. RAN, Series 1994 B,
4.75% 7/20/95 21,000 21,108
Michigan Hosp. Fin. Auth. (Hospital Equip. Loan Prog.):
Series A, 3.50%, LOC First of America Bank, VRDN 3,800 3,800
3.50%, LOC First of America Bank, VRDN 1,200 1,200
Michigan Strategic Fund (Dow Chemical Co. Proj.)
Series 1986, 3.45%, tender 12/19/94 4,200 4,200
34,308
MINNESOTA - 2.8%
Bloomington Multi-Family Hsg. Rev. (Crow/Bloomington
Apts. Proj.) 3.55%, LOC Citibank, VRDN 9,000 9,000
Duluth Health Care Facs. Participating VRDN: (b)
Series 94 E, 3.65%
(Liquidity Facility Norwest Bank (MBIA Insured 1,575 1,575
Series 94 F, 3.65%
(Liquidity Facility Norwest), (Connie Lee Insured 1,890 1,890
Duluth Hosp. Facs. Rev. (Miller-Dwan Med. Ctr.)
Series 1989 A, 3.45%, LOC Citibank, VRDN 8,600 8,600
Eden Prairie Multi-Family Hsg. Rev. (Park at City West Apts.
Proj.) Series 1990, 3.65%, LOC Sumitomo Bank, VRDN 14,905 14,905
Maplewood Multi-Family Hsg. Rev. Rfdg. (Silver Ridge Proj.)
Series 1993, 3.50%, LOC Federal Home Loan Bank of
Chicago, VRDN 2,500 2,500
Minneapolis Hsg. Dev. Rev. Rfdg. (One Ten Grant Proj.)
Series 1989, 3.40%, LOC FirstBank Nat'l. Assoc., VRDN 8,000 8,000
Olmsted County Rev. Bond (COP Human Services Campus
Infrastructure Proj.) 3.55%, LOC Sanwa Bank, VRDN 6,200 6,200
Osseo Ind. Sch. Dist. Participating VRDN, 3.65%,
Series A-94H, (Liquidity Facility Norwest),
(FGIC Insured) (b) 1,325 1,325
Richfield Ind. Sch. Dist. Participating VRDN: (b)
Series 94Q, 3.70% (Liquidity Facility First Bank),
(FGIC Insured) 1,365 1,365
Series 94M, 3.70% (Liquidity Facility First Bank),
(FGIC Insured) 1,725 1,725
Rochester Health Care Facs. Participating VRDN, 3.65%
(Liquidity Facility Norwest) (b) 1,260 1,260
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.
Series A. 3.65% 1/18/95 (Liquidity Facility Norwest), CP 10,000 10,000
St Louis Park Health Care Facs. Participating VRDN, 3.65%
(Liquidity Facility Norwest) (b) 10,200 10,200
St. Paul Port Auth. Tax Increment Bonds (Westgate
Office & Ind. Ctr. Proj.) Series 1991, 3.40%,
LOC First Nat'l. Bank of Minnesota, VRDN 2,900 2,900
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MINNESOTA - CONTINUED
University of Minnesota, CP:
Series 1991 A, 3.50% 12/19/94 $ 4,600 $ 4,600
Series 1991 B, 3.45% 12/19/94 3,000 3,000
Western Minnesota Muni. Pwr. Agcy. Participating VRDN.,
BT-10, 3.65%, BPA Bankers Trust (b) 11,613 11,613
100,658
MISSISSIPPI - 0.7%
Desoto County Ind. Dev. Rev. (Flavorite Labs Proj.)
Series 1991-A, 3.60%, LOC First Tennessee Bank, VRDN 1,300 1,300
Lawrence County Poll Cont. Rev. (Georgia Pacific Corp. Proj.)
Series 1985, 3.525%, LOC Bank of Tokyo, VRDN 4,500 4,500
Perry County Poll. Cont. Rev. Rfdg. (Leaf River Forest Prod.
Inc. Proj.) 3.40%, LOC Morgan Guaranty Trust Co.,
VRDN 17,100 17,100
22,900
MISSOURI - 1.1%
Kansas City Land Clearance Redev. Auth. Rev.
(East-West Bryant Ltd. Partnership Proj.) Series 1984,
3.775%, LOC Bankers Trust, VRDN 2,000 2,000
Missouri Participating VRDN, Series 3, 3.45%
(Liquidity Facility Credit Suisse) (b) 14,752 14,752
Missouri State & Environmental Impt. & Energy Resources
Auth. Rev. (Elec. Coop.) Series 93 M, 3.55%
(National Rural Util. CFC Guaranteed), VRDN 7,000 7,000
University of Missouri RAN Series 1994-95A,
4.50% 6/30/95 15,000 15,062
38,814
MONTANA - 0.9%
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co.) 3.50,
LOC Swiss Bank, VRDN 1,900 1,900
Montana Board of Investments Rev. (Workers Comp. Prog.)
Series 1993, 3.40%, VRDN 5,000 5,000
Montana TRAN Series 1994, 5% 6/30/95 26,200 26,369
33,269
NEBRASKA - 0.2%
Nebraska Public Pwr. Dist. Participating VRDN,
Series 93C, 3.60%, (Liquidity Facility Merrill Lynch),
(MBIA Insured) (b) 6,460 6,460
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEVADA -0.3%
Las Vegas Local Impt. Rev. Bonds (Summerlin Area, Dist. #404)
3.60%, tender 11/1/94, LOC Tokai Bank $ 10,000 $ 10,000
NEW HAMPSHIRE - 0.4%
New Hampshire Health. & Ed. (VHA New England Inc.)
Series D, 3.35% (AMBAC Insured), VRDN 1,600 1,600
New Hampshire Hsg. Fin. Auth. (Hampshire Estates
Manchester Proj.) Series 1991-1, 3.45%,
LOC Citibank, VRDN 5,000 5,000
New Hampshire Hsg. Fin. Auth. Multi-Family Hsg. Rev.
(Nashua-Oxford Proj.) Series 1990, 3.70%, VRDN 1,900 1,900
New Hampshire Ind. Dev. Auth. Resource Recovery
Rev. Bonds (Claremont Co. Proj.) Series 1985, 3%,
tender 1/1/95 (BIG Insured) 4,000 4,000
12,500
NEW JERSEY - 0.6%
New Jersey Bldg. Auth. Participating VRDN, Series-6,
3.65%, BPA Bankers Trust (b) 12,100 12,100
New Jersey Gen. Oblig. Participating VRDN,
Series 94-3005, 3.61% (Liquidity Facility Citibank) (b) 9,700 9,700
21,800
NEW YORK - 4.8%
New York Auth. Gen. Rev. BAN, Series 1994, 4.19%
4/14/95 15,900 15,900
New York City Gen. Oblig. Series 1994A-4, 3.65%,
LOC Chemical Bank, VRDN 4,000 4,000
New York City Muni. Water Fin. Auth. Series 1, 3.20%
12/1/94, LOC Canadian Imperial Bank 25,400 25,400
New York City Muni. Water Fin. Auth. Wtr. & Swr. Sys.
BAN 3.75% 12/15/94 27,000 27,026
New York City RAN Series A, 4.50% 4/12/95 31,975 32,064
New York City TAN 4.25% 2/15/95 64,000 64,100
168,490
NORTH CAROLINA - 2.6%
North Carolina Med. Care Commission Hosp. Rev.
(Pooled Fin.) Series 1986 A-2, 3.30%, BPA Mitsui Bank
(MBIA Insured) VRDN 3,100 3,100
North Carolina Med. Care Community Hosp. Rev. Board
(Park Ridge Hosp.) Series 1988, 3.35%, LOC NationsBank
of Florida, VRDN 9,800 9,800
North Carolina Muni. Pwr. Agcy #1 (Catawba Elec.), CP:
3.40% 12/20/94 25,000 25,000
3.60% 1/17/95 20,000 20,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NORTH CAROLINA - CONTINUED
North Carolina Muni. Pwr. Agcy. #1 (Catawba Elec.), CP: - continued
3.60% 1/18/95 $ 14,000 $ 14,000
3.60% 1/20/95 11,900 11,900
Wake County Ind. Facs. & Poll. Cont. Fin. Auth.
(Carolina Power & Light) Series 1990 B, 3.25%,
tender 11/9/94, LOC Fuji Bank 8,400 8,400
92,200
OHIO - 0.1%
Dayton Spl. Facs. Rev. Rfdg. (Emery Air Freight Corp. Proj.)
Series 1988 C, 3.75%, LOC Citibank, VRDN 4,000 4,000
OKLAHOMA - 1.4%
Oklahoma Ind. Auth. Rev. Bonds (Baptist Medical Center of
Oklahoma) Series 1990 B:
3.50%, tender 12/9/94, LOC Fuji Bank 24,000 24,000
3.70%, tender 1/17/95, LOC Fuji Bank 9,095 9,095
Tulsa Ind. Dev. Auth. Rev. (Tulsa Univ. Proj.), VRDN :
Series 1985, 3.65%, LOC Fuji Bank 5,900 5,900
Series A, 3.65%, LOC Fuji Bank 10,000 10,000
48,995
OREGON - 0.1%
Participating VRDN, Series BS-91, A-27,
3.70% (Liquidity Facility Sakura Bank) (b) 3,000 3,000
PENNSYLVANIA - 6.2%
Berks County Ind. Dev. Auth. Ind. Dev. Rev. (Continental
Assurance Co. Proj.) Series 82, 3.70%, VRDN 6,400 6,400
Commonwealth of Pennsylvania Gen. Oblig. Participating
VRDN, Series 94 B, 3.61% (Liquidity Facility
Citibank) (b) 27,400 27,400
Delaware County Ind. Dev. Auth. Poll. Cont. Rev.
(Philadelphia Elec.) Series B, 3.15%, tender 11/21/94
(Liquidity Facility FGIC),(FGIC Insured) 12,200 12,200
Delaware County Ind. Dev. Auth. Rev. (Scott Paper Co.)
Series B, 3.55%, LOC Fuji Bank, Mellon Bank, VRDN 2,900 2,900
Delaware Valley Regional Fin. Auth. Local Gov't. Rev. VRDN:
Series 1985 A:
3.40%, LOC Marine Midland Bank, Hong Kong
& Shanghai Banking 5,000 5,000
3.40%, LOC Marine Midland Bank, Hong Kong
& Shanghai Banking 6,800 6,800
3.40%, LOC Marine Midland Bank, Hong Kong
& Shanghai Banking 6,200 6,200
Series 1985 B, 3.40%, LOC Marine Midland Bank,
Hong Kong & Shanghai Banking 1,500 1,500
Series 1985 C, 3.40%, LOC Marine Midland Bank,
Hong Kong & Shanghai Banking 23,800 23,800
Series 1985 D, 3.40%, LOC Marine Midland Bank,
Hong Kong & Shanghai Banking 5,300 5,300
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
PENNSYLVANIA - CONTINUED
Delaware Valley Reg'l. Fin. Auth. Local Gov't. Rev., VRDN: - continued
Series 1986, 3.40%, LOC Marine Midland Bank,
Hong Kong & Shanghai Banking $ 7,775 $ 7,775
Emmaus Gen. Auth. Local Govt. Rev., VRDN:
(Altoona School Dist.) Series 89 B-6, 3.61%,
LOC Marine Midland Bank, Hong Kong & Shanghai
Banking 2,000 2,000
(Bond Pool Prog.) Series C-5, 3.55%, LOC Marine
Midland Bank, Hong Kong & Shanghai Banking 7,000 7,000
(Downington Area School Dist.) Series 89 F-4,
3.55%, LOC Marine Midland Bank, Hong Kong &
Shanghai Banking 8,000 8,000
Lehigh County Ind. Dev. Auth. Poll. Cont. Rev. (Allegheny Elec.
Coop., Inc. Proj.) Series 1984 B, 3.60%, LOC Rabobank
Nederland, VRDN 10,400 10,400
Lehigh County Swr. Rev. Series 1985 B, 3.25%, BPA Algemene
Bank (FGIC Insured), VRDN 2,150 2,150
Pennsylvania Gen. Oblig. TAN 4.75% 6/30/95 37,000 37,178
Philadelphia Auth. Ind. Dev. (Tom Jones County Project)
Series 1991, 3.50%, LOC Third Nat'l. Bank, VRDN 3,375 3,375
Philadelphia Gen. Oblig. Bonds 3.65%, tender 1/24/95,
LOC Fuji Bank 4,500 4,500
Philadelphia Ind. Dev. Auth. Rev. Rfdg. (Paper Corp. of
America Proj.) 3.50%, LOC Trust Company Bank of Georgia,
VRDN 3,565 3,565
Philadelphia TRAN:
Series 1994-95B, 4.75% 6/15/95, LOC Corestates 3,000 3,013
Series 1994-95D, 4.75% 6/15/95,
LOC Morgan Guaranty Trust Co. 30,600 30,752
217,208
SOUTH CAROLINA - 2.6%
Greenville County School Dist. TRAN Series 1994,
4.50% 2/15/95 11,500 11,525
Kershaw County Ind. Dev. Rev. Rfdg., (New South Proj.)
Series 1992, 3.60%, LOC NationsBank, VRDN 10,000 10,000
Piedmont Muni. Pwr. Agcy. Participating VRDN (b):
Series BT-39, 3.65%, BPA Bankers Trust 3,878 3,878
Series BT-44, 3.65%, BPA Bankers Trust 14,945 14,945
South Carolina Pub. Service Auth., CP:
3.40% 11/18/94 4,392 4,392
3.40% 12/13/94 3,250 3,250
3.45% 12/19/94 12,850 12,850
3.65% 1/12/95 11,125 11,125
3.60% 1/19/95 7,350 7,350
3.60% 1/27/95 10,821 10,821
90,136
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TENNESSEE - 3.2%
Clarksville Pub. Bldg. Auth. Pooled Fing. Rev. Series 1994,
3.55%, LOC NationsBank, VRDN $ 21,000 $ 21,000
Hamilton County Ind. Dev. Rev. (James Building Proj.)
Series 1991, 3.60%, LOC First Tennessee Bank, VRDN 4,700 4,700
Knox County Hosp. Participating VRDN, Series 4,
3.45% (Liquidity Facility Credit Suisse),
(MBIA Insured) (b) 27,498 27,498
Memphis City Ctr. Rev. Fin. Corp. (Arbors of Harbor
Town Project) Series 1990, 3.45%, VRDN 16,250 16,250
Metropolitan Gov't. Nashville and Davidson County
Health & Ed. Rev. Rfdg. (Mckendree Village Inc. Proj.),
3.50%, LOC Third Nat'l. Bank, VRDN 1,950 1,950
Metropolitan Gov't. Nashville & Davidson County Health.
Facs. Rev. (Richland Place Inc. Proj.) 3.35%,
LOC Societe Generale, VRDN 5,000 5,000
Metropolitan Gov't. Nashville & Davidson County Hosp.
Rev. Bonds (Baptist Hosp.) Series 1992, 3.65% 1/26/95,
BPA NationsBank 11,500 11,500
Nashville & Davidson County Health & Ed. Facs.
Multi-Family Hsg. (Brentwood Oaks Apt.) 3.45%,
VRDN 7,100 7,100
Nashville & Davidson County Ind. Dev. Board Multi-Family
Hsg. Rev. Rfdg. (Western Hills Apt. Proj.) 3.65%,
LOC Sumitomo Trust & Banking, VRDN 7,035 7,035
Nashville & Davidson County Ind. Dev. Board Rev. Bonds:
(Chimney II Oxford Associate), Series1984A,
3.15%, LOC Bank of America, VRDN 2,450 2,450
(YMCA Proj.) Series 1994, 3.55%
LOC NationsBank of Georgia, VRDN 5,000 5,000
Tennessee Gen. Oblig. Rev. Series 1993 B, 3.45%, VRDN 2,000 2,000
111,483
TEXAS - 13.2%
Abilene Health Facs. Dev. Corp. Hosp. Rev. (Hendrick Med.
Ctr. Proj.) 3.70%, LOC Banque Paribas, VRDN 5,570 5,570
Austin Hsg. Fin. Corp. Multi-Family Rev. (Riverchase Proj.)
Series 1985 A, 3.50%, LOC Household Fin. Corp., VRDN 1,600 1,600
Austin Ind. Sch. Dist. TRAN 3.952% 8/31/95 6,000 6,000
Bexar County Health Facs. Dev. Corp. Retirement
Community Rev. VRDN:
Rfdg.:
(Air Force Village II) Series 1985 B, 3.525%,
LOC Banque Paribas 3,000 3,000
(Air Force Village Foundation) 4.15%,
LOC Daiwa Bank 12,300 12,300
(Fountainhead I Proj.) Series 1992-A, 3.55%,
Continental Casualty Guaranteed 8,660 8,660
(Fountainhead III Proj.) Series 1992-A, 3,55%,
Continental Casualty Guaranteed 3,690 3,690
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Bexar County Rev. Participating VRDN (b):
Series BT-1, 3.65%, BPA Bankers Trust $ 1,965 $ 1,965
Series BT-2, 3.65%, BPA Bankers Trust 2,165 2,165
Brazos River Harbor Ind. Dev. Corp. Rev. (Dow Chemical)
Series 1986, 3.70% 1/13/95 6,640 6,640
Brazos River Harbor Navigation Dist. Brazoria County
Rev. Bonds (Dow Chemical) Series1991:
3.40%, tender 11/17/94 7,100 7,100
3.40%, tender 11/18/94 8,250 8,250
3.50%, tender 12/22/94 7,000 7,000
Central Waco Dev. Corp. Ind. Dev. Rev., Series 1992, 3.60%,
LOC Texas Commerce Bank, VRDN 4,430 4,430
Corpus Christi Port Auth. Rev. Rfdg. Bonds
(Union Pacific Corp.):
Series 1989, 3.50%, tender 12/9/94 9,610 9,610
Series 1992, 3.45%, tender 12/14/94 5,000 5,000
Cypress Fairbanks Ind. Sch. Dist. TRAN 3.95%,
tender 8/31/95 10,000 10,000
Dallas-Ft. Worth Airport Reg. Arpt. Rfdg. Bonds Series 1992,
3.15%, tender 11/17/94, LOC Nat'l. Westminster Bank 3,130 3,130
Greater East Higher Ed. Auth. Student Loan Rev.
Rfdg. Bonds Series 1992 A, 3.35%, LOC Student
Loan Marketing Association, VRDN, 5,200 5,200
Guadalupe-Blanco River Auth. Ind. Dev. Rev. (BOC Group
Inc. Proj.) Series 93, 3.50%, LOC Wachovia Bank of
Georgia, VRDN 8,100 8,100
Harris County Health Facs. Dev. Corp. Rev. Series 1985 A,
3.40%, LOC Texas Commerce Bank, VRDN 2,900 2,900
Harris County Health Facs. (Sisters of Charity of the
Incarnate Word) 3.40%, tender 11/7/94, BPA
Toronto Dominion Bank 8,000 8,000
Harris County Toll Rd. Unltd. Tax & Sub. Lein Rev. Bonds
Series B, 3.40%, BPA Morgan Guaranty Trust Co., VRDN 14,000 14,000
Houston TRAN Series 1994A, 4.368% 3/30/95 6,400 6,400
Lower Colorado River Auth. Rev. CP:
Series B:
3.20%, 11/7/94 (Liquidity Facility
Morgan Guaranty Trust Co.) 10,940 10,940
3.10%, 11/17/94 (Liquidity Facility
Morgan Guaranty Trust Co.) 11,700 11,700
3.65%, 1/25/95 (Liquidity Facility
Morgan Guaranty Trust Co.) 5,600 5,600
Series D, 3.65%, 1/23/95 (Liquidity Facility
Morgan Guaranty Trust Co.) 10,000 10,000
Lufkin Health Facs. Dev. Corp. Hosp. Rev. (Memorial Med. Ctr.
of E. Texas Proj.), 3.80%, LOC Texas Commerce Bank,
VRDN 8,600 8,600
Metropolitan Higher Ed. Auth. Higher Ed. Rev. (Univ. of
Dallas Proj.) Series 1984, 3.15%, LOC Mitsubishi
Bank, VRDN 2,400 2,400
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Nacogdoches Ind. Dev. Auth. Rev. Rfdg. (La Quinta Motor
Inns Inc. Proj.) 3.60%, LOC NationsBank of North
Carolina, VRDN $ 2,665 $ 2,665
San Antonio Elec. & Gas Participating VRDN,
Series BT-38A, 3.60%, BPA Bankers Trust (b) 5,892 5,892
San Antonio Elec. & Gas Sys. Rev. CP:
Series A:
3.25% 11/7/94 21,900 21,900
3.45% 11/7/94 9,200 9,200
3.85% 1/11/95 5,200 5,200
3.65% 1/24/95 10,900 10,900
3.65% 1/25/95 15,000 15,000
San Antonio Gen. Oblig. Participating VRDN, Series BT-16,
3.65%, BPA Bankers Trust (b) 6,000 6,000
San Antonio Health Facs. Dev. Corp. Hosp. Rev.
(Warm Springs Rehab. Proj.) Series 92 A, 4.10%,
LOC Daiwa Bank, VRDN 17,300 17,300
San Antonio Water Sys. Rev. Series 1992, 3.60% 1/30/95
(Liquidity Facility Credit Suisse), CP 11,000 11,000
Silsbee Health Facs. Dev. Corp. (Silsbee Doctor's Hosp. Proj.)
Series 1984, 3.50%, LOC Citibank, VRDN 4,500 4,500
Texas Dept. of Hsg. & Community Affairs, Participating
VRDN, Series PT-9, 3.65% (Liquidity Facility Dai-Ichi
Kangyo Bank) (b) 4,580 4,580
Texas Health Facs. Dev. Corp. Rev. (North Texas Pooled Health)
Series 1985 B, 3.40%, LOC Citibank, VRDN 5,200 5,200
Texas Muni. Power Agcy. CP:
3.60% 1/17/95 (Liquidity Facility Morgan Guaranty Trust Co.,
Canadian Imperial Bank, Bank of America) 6,800 6,800
3.60% 1/17/95 (Liquidity Facility Morgan Guaranty Trust Co.,
Canadian Imperial Bank, Bank of America) 12,900 12,900
3.60% 1/19/95 (Liquidity Facility Morgan Guaranty Trust Co.,
Canadian Imperial Bank, Bank of America) 14,950 14,950
3.60% 1/27/94 (Liquidity Facility Morgan Guaranty Trust Co.,
Canadian Imperial Bank, Bank of America) 17,000 17,000
Texas Pub. Fin. Auth. Rev. Series 1993 A, 3.55%
1/18/95, CP 15,000 15,000
Texas Small Bus. Ind. Dev. Corp. Rev. (Pub. Facs. Prog.) 3.55%,
LOC Mitsubishi Trust, Mitsubishi Bank, Nat'l. Westminster
Bank U.S., Sumitomo Trust, VRDN 41,745 41,745
Tyler Health Facs. Dev. Corp. Hosp. Rev. (East Texas Medical
Center Reg. Healthcare Prog.) Series 1993 C, 3.70%,
tender 12/16/94, LOC Banque Paribas 10,000 10,000
Univ. of Texas. Fing. Sys. Rev. CP:
Series A:
3.45% 12/19/94 3,000 3,000
3.50% 12/19/94 3,000 3,000
3.60% 1/19/95 21,000 21,000
464,682
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
UTAH - 1.4%
Intermountain Pwr. Agcy. Participating VRDN (b):
Series BT-43, 3.65% (Liquidity Facility Bankers Trust) $ 9,668 $ 9,668
Series BT-47, 3.90% (Liquidity Facility Bankers Trust) 11,525 11,525
Intermountain Pwr. Agcy. Pwr. Rev. Bonds Series F, 3.10%,
tender 11/10/94, BPA Fuji Bank 13,950 13,950
Intermountain Pwr. Agcy. Pwr. Supply Rev. Bonds Series 1985 E,
6%, tender 3/15/95, BPA Bank of America 7,500 7,500
Salt Lake City Flex. Rev. Bonds (Pooled Hosp. Fing. Prog.)
Series 1990, 3.60%, tender 1/17/95, LOC Fuji Bank 2,400 2,400
Weber County TRAN Series 1994 A, 3.875% 12/30/94 3,000 3,002
48,045
VERMONT - 0.5%
Vermont Student Assistance Corp. Student Loan Rev. Series 1985,
3.60%, LOC Nat'l. Westminster Bank, VRDN 18,920 18,920
VIRGINIA - 3.4%
Chesapeake Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Vepco Proj.) Series 1985:
3.30%, tender 11/8/94 5,200 5,200
3.55%, tender 12/7/94 6,970 6,970
Chesterfield County Ind. Dev. Auth. Poll. Cont. Rev.:
Rfdg. (Philip Morris Co. Proj.) Series 1992, 3.50%, VRDN 8,700 8,700
(Virginia Elec. Pwr. Co.):
Series 1985:
3.30%, tender 11/8/94 9,955 9,955
3.55%, tender 12/7/94 6,045 6,045
Series1987, 3.35% tender 12/8/94 (Liquidity Facility
Chemical Bank) 5,700 5,700
Series B:
3.45%, tender 12/12/94 5,335 5,335
3.50%, tender 12/19/94 6,000 6,000
3.65%, tender 1/12/95 3,330 3,330
Louisa Ind. Dev. Auth. Poll. Cont. Rev. (Virginia Elec. Pwr. Co. Proj.)
Series 1985:
3.35%, tender 12/16/94, BPA Bank of New York 5,500 5,500
3.65%, tender 1/11/95, BPA Bank of New York 13,500 13,500
Newport News Redev. & Hsg. Auth. Rev.
(Newport-Oxford Proj.) Series 1984, 3.70%,
LOC Bank of America, VRDN 3,200 3,200
Suffolk Redev. & Hsg. Auth. Multi-Family Rental Hsg. Rev.
(Windsor at Potomac Vista Proj.) 3.55%,
LOC NationsBank of Virginia, VRDN 10,657 10,657
Virginia Hsg. Dev. Auth. Poll. Cont. Rev. Commonwealth Mtg.
Bonds Series 1993, 4.25%, tender 7/12/95 25,500 25,500
York County Ind. Dev. Auth. (Philip Morris Co. Proj.)
Series 1991, 3.50%, VRDN 4,000 4,000
119,592
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
WASHINGTON - 2.0%
Pierce County TAN, Series 1994 A, 3.25% 12/30/94 $ 5,490 $ 5,491
Washington Gen. Oblig. Participating VRDN: (b)
Series 93 B, 3.58% (Liquidity Facility Citibank) 13,300 13,300
Series BT-114, 3.60%, BPA Bankers Trust 9,005 9,005
Washington Participating VRDN, 3.65%, Series BT-12,
BPA Bankers Trust (b) 20,985 20,985
Washington Pwr. Supply Sys. Participating VRDN,
Series 94 B, 3.61% (Liquidity Facility Citibank) (b) 20,600 20,600
69,381
WEST VIRGINIA - 0.0%
West Virginia Hosp. Fin. Auth. Rev. (VHA Mid-Atlantic States)
Series 1985-C, 3.35% (AMBAC Insured), VRDN 1,800 1,800
WISCONSIN - 1.5%
Augusta Ind. Dev. Rev. Rfdg. (Ball Corp.) Series 1993, 3.50%,
LOC PNC Bank, N.A., VRDN 3,100 3,100
Milwaukee Redev. Auth. Dev. Rev. (Bradley Ctr. Parking Facs.
Proj.) Series 1986, 3.40%, LOC Nat'l. Westminster Bank,
VRDN 1,000 1,000
Wisconsin Gen. Oblig. Participating VRDN, Series 93 R,
3.58% (Liquidity Facility Citibank) (b) 18,400 18,400
Wisconsin Health Facs. Auth. Rev. (Franciscan Health
Care, Inc.) Series 1985 A-2, 3.40%,
LOC Toronto-Dominion Bank, Canada, VRDN 1,875 1,875
Wisconsin TRAN Series 1994, 4.50% 6/15/95 29,000 29,107
53,482
WYOMING - 0.1%
Gillette-Campbell County Poll. Cont. Rev. Bonds (Pacificorp)
Series 1988, 3.40%, tender 12/8/94, LOC Deutsche Bank 3,100 3,100
MULTIPLE STATES - 1.5%
Clipper Participating VRDN, Series 93-1, 3.26%
(Liquidity Facility State Street Bank & Trust Co.) (b) 36,000 36,000
Participating VRDN, Series BS-91, A-19, 3.70%
(Liquidity Facility Sakura Bank), (AMBAC
& MBIA Insured) (b) 14,665 14,665
Participating VRDN, Series 1990 A, 3.375%,
LOC NationsBank of North Carolina (b) 3,400 3,400
54,065
TOTAL INVESTMENTS - 100% $ 3,527,786
Total Cost for Income Tax Purposes $ 3,527,786
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and 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) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At October 31, 1994, the fund had a capital loss carryforward of
approximately $553,000 of which $417,000 and $136,000 will expire on
October 31, 1996 and 1997, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) OCTOBER 31, 1994
ASSETS
Investment in securities, at value - See accompanying $ 3,527,786
schedule
Cash 34,440
Interest receivable 17,691
TOTAL ASSETS 3,579,917
LIABILITIES
Payable to custodian bank $ 2,020
Payable for investments purchased 81,274
Dividends payable 470
Accrued management fee 887
Other payables and accrued expenses 712
TOTAL LIABILITIES 85,363
NET ASSETS $ 3,494,554
Net Assets consist of:
Paid in capital $ 3,495,103
Accumulated net realized gain (loss) on investments (549)
NET ASSETS, for 3,495,103 shares outstanding $ 3,494,554
NET ASSET VALUE, offering price and redemption price per $1.00
share ($3,494,554 (divided by) 3,495,103 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED OCTOBER 31, 1994
INTEREST INCOME $ 95,759
EXPENSES
Management fee $ 10,363
Transfer agent, accounting and custodian fees 6,909
and expenses
Non-interested trustees' compensation 38
Registration fees 141
Audit 36
Legal 21
Reports to shareholders 87
Miscellaneous 14
Total expenses before reductions 17,609
Expense reductions (87) 17,522
NET INTEREST INCOME 78,237
REALIZED AND UNREALIZED GAIN (LOSS) 229
Net realized gain (loss) on investment securities
Increase (decrease) in net unrealized gain from (35)
accretion
of market discount
NET GAIN (LOSS) 194
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 78,431
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEARS ENDED OCTOBER 31,
1994 1993
INCREASE (DECREASE) IN NET ASSETS
Operations $ 78,237 $ 61,587
Net interest income
Net realized gain (loss) 229 260
Increase (decrease) in net unrealized gain from (35) 29
accretion of market discount
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 78,431 61,876
FROM OPERATIONS
Dividends to shareholders from net interest income (78,237) (61,587)
Share transactions at net asset value of $1.00 per share 10,167,911 8,356,873
Proceeds from sales of shares
Reinvestment of dividends from net interest income 73,176 56,676
Cost of shares redeemed (9,682,238) (8,203,212)
Net increase (decrease) in net assets and shares 558,849 210,337
resulting from share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 559,043 210,626
NET ASSETS
Beginning of period 2,935,511 2,724,885
End of period $ 3,494,554 $ 2,935,511
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,
1994 1993 1992 1991 1990
SELECTED PER-SHARE DATA
Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of period
Income from Investment .023 .022 .031 .046 .055
Operations
Net interest income
Less Distributions (.023) (.022) (.031) (.046) (.055)
From net interest income
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN 2.33% 2.23% 3.14% 4.66% 5.63%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,495 $ 2,936 $ 2,725 $ 2,721 $ 2,824
(in millions)
Ratio of expenses to average net .52% .49% .48% .45% .43%
assets
Ratio of net interest income to 2.31% 2.21% 3.11% 4.55% 5.52%
average net assets
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1994
4. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Tax-Exempt Money Market Trust (the fund) is a fund of Fidelity
Beacon Street Trust (the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company Act
of 1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Delaware business trust. The following summarizes
the significant accounting policies of the fund:
SECURITY VALUATION. 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, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes 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. Accretion
of market discount represents unrealized gain until realized at the time of
a security disposition or maturity.
EXPENSES. Most expenses of the 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.
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.
5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1325% to
.3700% for the period November 1, 1993 to July 31, 1994; and .1200% to
.3700% for the period August 1, 1994 to October 31, 1994. In the event that
these rates were lower than the contractual rates in effect during those
periods, FMR voluntarily implemented the above rates, as they resulted in
the same or a lower management fee. The annual individual fund fee rate is
.15%. For the period, the management fee was equivalent to an annual rate
of .31% of average net assets.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
SUB-ADVISER FEE. As the 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.
TRANSFER AGENT AND ACCOUNTING FEES. United Missouri Bank, N.A. (the Bank)
is the custodian and transfer and shareholder servicing agent for the fund.
The Bank has entered into a sub-contract with Fidelity Service Co. (FSC),
an affiliate of FMR, under which FSC performs the activities associated
with the fund's transfer and shareholder servicing agent and accounting
functions. The fund pays transfer agent fees based on the type, size,
number of accounts and number of transactions made by shareholders. FSC
pays for typesetting, printing and mailing of all shareholder reports,
except proxy statements. The accounting fee is based on the level of
average net assets for the month plus out-of-pocket expenses. For the
period, FSC received transfer agent and accounting fees amounting to
$6,267,000 and $378,000, respectively.
Shareholders participating in the Fidelity Ultra Service Account(registered
trademark) Program (the Program) pay a $5.00 monthly fee to Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, for performing
services associated with the Program. For the period, fees paid to FBSI by
shareholders participating in the Program amounted to $645,000.
6. EXPENSE REDUCTIONS.
A special meeting of shareholders of the fund was held on November 17,
1993. All expenses in connection with this meeting including the
preparation of the proxy statement, its enclosures and all solicitations
were reimbursed by FMR.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Fidelity Beacon Street Trust: Fidelity
Tax-Exempt Money Market Trust:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Beacon Street Trust: Fidelity Tax-Exempt Money Market Trust at
October 31, 1994, the results of its operations for the year then ended,
the changes in its net assets for each of the two years then ended, and its
financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Trust's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities owned at October 31, 1994 by
correspondence with the custodian and brokers, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Dallas, Texas
November 29, 1994
TO WRITE FIDELITY
If more than one address is listed, 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.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
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 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
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 VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East 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
90 Alhambra Plaza
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
8885 Ladue Road
Ladue, 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
4611 Sharon Road
Charlotte, 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
215 South State 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
INVESTMENT ADVISER
(registered trademark)
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
Fred L. Henning Jr., Vice President
Sarah H. Zenoble, Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
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
FIDELITY'S TAX-FREE
MONEY MARKET FUNDS
California Tax-Free Money Market
Connecticut Municipal Money Market
Massachusetts Tax-Free Money Market
Michigan Municipal Money Market
New Jersey Tax-Free Money Market
New York Tax-Free Money Market
Ohio Municipal Money Market
Spartan(registered trademark) Arizona Municipal
Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
Tax-Exempt Money Market
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 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
