SPARTAN(Registered trademark)
(registered trademark)
NEW JERSEY
MUNICIPAL
MONEY MARKET
PORTFOLIO
SEMIANNUAL REPORT
APRIL 30, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
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 value.
FINANCIAL STATEMENTS 14 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 18 Footnotes to the financial
statements.
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. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
No one wants to pay more taxes than they have to. But a recent survey of
500 U.S. households, conducted by Fidelity and Yankelovich Partners, showed
that few people took steps to reduce their taxes under the new tax laws
that went into effect last year. In fact, many people were not completely
aware of the changes until they filed their 1993 tax returns.
Whether or not you're someone whose tax bill increased as a result of these
changes, it may make sense to consider ways to keep more of what you earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider adding to your tax-free investments, either municipal bonds
or municipal bond funds. Often these can provide higher after-tax yields
than comparable taxable investments. For example, if you're in the new 36%
federal income tax bracket and invest $10,000 in a taxable investment
yielding 7%, you'll pay $252 in federal taxes and receive $448 in income.
That same $10,000 invested in a tax-free bond fund yielding 5.5% would
allow you to keep $550 in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center. We look forward to
talking with you.
Best regards,
Edward C. Johnson 3d, Chairman
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 APRIL 30, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND
Spartan New Jersey Municipal
Money Market Fund 1.09% 2.14% 15.05%
Consumer Price Index 1.17% 2.36% 14.35%
Average New Jersey Tax-Free
Money Market Fund 0.92% 1.90% 16.06%
CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, 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.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1994 PAST 1 LIFE OF
YEAR FUND
Spartan New Jersey Municipal
Money Market Fund 2.14% 3.56%
Consumer Price Index 2.36% 3.41%
Average New Jersey Tax-Free
Money Market Fund 1.90% 3.42%
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>
4/30/93 7/31/93 10/31/93 1/31/94 4/30/94
Spartan New Jersey Municip 2.16% 2.14% 2.10% 2.19% 2.69%
al
Money Market Fund
If Fidelity had not reimbursed 2.08% 2.09% n/a 1.94% 2.44%
certain fund expenses
Average New Jersey 1.95% 2.04% 1.95% 1.77% 2.36%
Tax-Free
Money Market Fund
Spartan New Jersey Municip 3.62% 3.58% 3.52% 3.67% 4.50%
al
Money Market Fund -
Tax-equivalent
If Fidelity had not reimbursed 3.48% 3.50% n/a 3.25% 4.08%
certain fund expenses
Average All Taxable 2.61% 2.65% 2.66% 2.74% 3.15%
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. 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 New Jersey 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 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, DESCRIBE WHAT HAPPENED IN NEW JERSEY'S SHORT-TERM MARKET OVER THE
PAST SIX MONTHS.
A. The big news was that, broadly speaking, short-term interest rates
stopped falling and started rising. But let's start at the beginning.
Despite a brief upturn in November due to inflation fears, short-term rates
remained pretty stable from October 1993 through January 1994, taking their
cue from a 3.00% federal funds rate. By February, however, accelerating
economic growth forced the Federal Reserve Board to shift its stance on
interest rates. It launched a string of three successive hikes in the fed
funds rate, pushing it up to 3.75% by the end of April. During February and
March, supply and demand factors kept yields on tax-free issues from rising
as fast as comparable taxable securities. But by the end of April, tax-free
yields had all but caught up. Throughout the period, tax-free rates in New
Jersey closely tracked the broader market.
Q. THE REVERSAL OF SHORT-TERM INTEREST RATES MUST HAVE REQUIRED A CHANGE IN
YOUR STRATEGY.
A. It meant I had to prepare the fund for an environment of higher rates by
becoming increasingly conservative. When the economy started heating up in
the fall, I was pretty sure the next move in interest rates would be up,
though it was difficult to predict when the Fed would act. I gradually
shortened the fund's average maturity from 84 days at the end of October to
72 days at the end of January. However, even by then there were no real
signs that higher inflation was a threat, so the first Fed rate hike on
February 4 caught many investors off-guard. After the Fed's move, I
continued to shorten the average maturity in anticipation of further rate
increases. Although I was targeting shorter-maturity issues, I did take
advantage of selected longer-maturity securities that offered more
attractive yields after rates went up. As a result, the fund's average
maturity remained in the mid-60s through the end of April.
Q. WHAT WAS THE RESULT?
A. The fund's seven-day yield was 2.69% on April 30, 1994, up from 2.10%
six months ago. Of course, the Fed rate hikes played a big role in that
increase. The latest yield equaled a 4.50% yield for New Jersey investors
in the 36% federal tax bracket. The fund's total return for the six months
ended April 30 was 1.09%, which beat the 0.92% return for the average New
Jersey tax-free fund tracked by IBC/Donoghue.
Q. DO YOU THINK SHORT-TERM RATES WILL CONTINUE TO RISE OVER THE NEXT SIX
MONTHS?
A. It's very likely. I believe the Fed is still trying to ward off the
potential for higher inflation that often accompanies periods of economic
growth. It's not trying to slow the economy, but rather to keep it from
growing too fast. I think members of the Fed believe they can most
effectively accomplish that goal by moving short-term rates from a
"stimulative" mode to a "neutral" mode. That may mean a fed funds rate of
roughly 4.50% - it was 3.75% at the end of April. I'll try to keep the fund
flexible enough to respond to rising rates by keeping its average maturity
on the low side - probably 50 to 60 days - in the coming months.
FUND FACTS
GOAL: tax-free income and
price share stability by
investing in high-quality,
short-term New Jersey
municipal securities
START DATE: May 1, 1990
SIZE: as of April 30, 1994,
more than $376 million
MANAGER: Scott Orr, since
January 1992; 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
(checkmark)
WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
4/30/94 10/31/93 4/30/93
0 - 30 54 56 58
31 - 90 12 12 13
91 - 180 22 11 11
181 - 397 12 21 18
WEIGHTED AVERAGE MATURITY
4/30/94 10/31/93 4/30/93
Spartan New Jersey
Municipal Money Market
Fund 65 days 84 days 68 days
Average New Jersey
Tax-Free Money Market
Fund* 56 days 70 days 63 days
ASSET ALLOCATION
AS OF APRIL 30, 1994 AS OF OCTOBER 31, 1993
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
Row: 1, Col: 1, Value: 43.0
Row: 1, Col: 2, Value: 13.0
Row: 1, Col: 3, Value: 7.0
Row: 1, Col: 4, Value: 35.0
Row: 1, Col: 5, Value: 3.0
Variable rate
demand notes
(VRDNs) 49%
Commercial
paper 10%
Tender bonds 9%
Municipal
notes 31%
Other 1%
Variable rate
demand notes
(VRDNs) 43%
Commercial
paper 13%
Tender bonds 7%
Municipal
notes 35%
Other 2%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(Registered trademark)
INVESTMENTS APRIL 30, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - 86.1%
Atlantic County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
3.15%, LOC Marine Midland Bank, Hong Kong &
Shanghai Banking Corp., VRDN $ 600,000 $ 600,000
Atlantic Highland BAN 2.96% 8/19/94 686,000 686,079
Bayonne BAN 2.90% 5/4/94 10,775,000 10,775,131
Berkeley Township BAN 2.84% 11/30/94 1,567,000 1,567,337
Bernards Township Swr. Auth. Swr. Rev. Rfdg.,
Series 1985, 2.875% 12/15/94, OT 4,000,000 4,000,000
Burlington County BAN 2.77% 11/4/94 1,600,000 1,600,121
Camden County BAN 3.25% 2/16/95 4,325,000 4,327,181
Camden County Impt. Auth. Solid Wst. Disp. Rev. Rfdg.
Bonds (County Gtd. Landfill Proj.) 2.75% 7/1/94 1,000,000 999,582
Cape May County BAN 3.25% 8/11/94 13,500,000 13,516,486
Cape May County Muni. Solid Wst. Resource Recovery Rev.
(Daneco Cape May Inc.) Series 91, 2.80%
11/30/94, MT (b) 3,800,000 3,800,000
Cape May Swr. Rev. Tender Option Ctfs.,
3.40% (Liquidity Enhancement Canadian Imperial
Bank of Commerce), VRDN (c) 21,500,000 21,500,000
Chatham Township BAN 3.15% 8/1/94 2,520,000 2,520,918
Clark Township BAN 2.98% 6/23/94 1,000,000 1,000,328
Essex County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
Series 1985, 3.10%, LOC Banco de Santander, VRDN 400,000 400,000
Essex County TAN 3.75% 12/19/94 16,800,000 16,867,751
Gloucester County Ind. Poll. Cont. Fin. Auth.
Poll. Cont. Rev., VRDN:
Rfdg. (Monsanto Co. Proj.) Series 1992, 3.20% (b) 1,100,000 1,100,000
(Mobil Oil Refining) Series 93 A, 2.90% 5,000,000 5,000,000
Hudson County BAN 3.26% 10/12/94 3,300,000 3,304,029
Hudson County Impt. Auth. Rev. (Essential Purp. Pooled Gov't.
Loan Prog.) Series 86, 3.50%, LOC Marine Midland
Bank, Hong Kong & Shanghai Banking Corp., VRDN 33,460,000 33,460,000
Lawrence Township BAN 3.25% 8/24/94 700,000 700,964
Manchester Township BAN 3.06% 7/15/94 1,400,000 1,400,163
Mercer County BAN 3% 10/13/94 9,000,000 9,020,312
Mercer County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
Series 1985, 3.10%, LOC Credit Suisse, VRDN 1,000,000 1,000,000
Middlesex County Gen. Oblig. Bonds 7% 3/15/95 1,375,000 1,445,576
Monmouth County BAN 3.25% 9/1/94 3,000,000 3,004,913
Moorestown Township BAN 2.82% 9/7/94 1,100,000 1,100,263
Morristown Township BAN 3.125% 10/13/94 2,000,000 2,003,291
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Bldg. Auth. Participating VRDN, Series BT-6, 3.45%,
(BPA Bankers Trust) (c) $ 2,392,000 $ 2,392,000
New Jersey Econ. Dev. Auth. Dock Facs. Rev. Rfdg.
(Bayonne/IMTT-Bayonne Proj.) Series 1993 A, 3%,
LOC Rabobank Nederland, VRDN 1,500,000 1,500,000
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN:
Rfdg. (Curtiss-Wright Corp.) Series 1992, 3.15%,
LOC Bank of Nova Scotia, VRDN 1,000,000 1,000,000
(80 Carter Dr. Assoc. Proj.) Series 84, 3.45%,
LOC Marine Midland Bank 360,000 360,000
(Composite Issue 1987 Series A-G) Series 87-D, 3.25%,
LOC Nat'l. Westminster Bank (b) 2,715,000 2,715,000
(Composite Issue 1989-B) 3.25%, LOC Barclays Bank (b) 800,000 800,000
(Composite Issue 1989-J) 3.25%, LOC Barclays Bank (b) 800,000 800,000
(Composite Issue - Alesi Graphics Inc.) Series 89 AA,
3.25%, LOC Barclays Bank (b) 850,000 850,000
(Composite Issue - Ellison School Inc.) Series 89 KK,
3.15%, LOC Barclays Bank 650,000 650,000
(Danic Urban Renewal Co. Proj.) Series 1985, 3.30%,
LOC Marine Midland Bank 1,800,000 1,800,000
(Fieldstone Corp.) Series 88 K, 3.25%,
LOC Barclays Bank (b) 1,300,000 1,300,000
(Guttenplan's Bakery) Series 89 G, 3.25%,
LOC Barclays Bank (b) 3,300,000 3,300,000
(Herzel Mor) Series 89-L, 3.25%, LOC Barclays Bank (b) 650,000 650,000
(Holt Hauling & Warehousing Inc.) Series 1993-1, 3.50%,
LOC Meridian Bank (b) 1,250,000 1,250,000
(Lamart Corporation) Series 89 JJ, 3.25%,
LOC Barclays Bank (b) 850,000 850,000
(Polymeric Resources Corp. Rfdg. Proj.) Series 88 C,
3.50%, 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 86, 3.30%,
LOC Chemical Bank (b) 670,000 670,000
New Jersey Econ. Dev. Auth. 1st Mtg. Rev.
(Franciscan Oaks Proj.) Series 1992 B, 3.10%,
LOC Bank of Scotland, VRDN 5,500,000 5,500,000
New Jersey Econ. Dev. Auth. Ind. & Econ. Dev. Rev., VRDN:
Rfdg. (Marriott Corp.) Series 1984, 3.55%,
LOC Nat'l. Westminster Bank 2,700,000 2,700,000
(Block Drugs Corp.) Series A, 3.35%,
LOC Trust Co. Bank of Georgia 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, 2.75%,
LOC Chemical Bank, VRDN $ 1,000,000 $ 1,000,000
New Jersey Econ. Dev. Auth. Rev.:
(Chambers Cogeneration) Series 1991, VT: (b)
2.45% 5/18/94, LOC Swiss Bank Corp 5,000,000 5,000,000
2.60% 6/8/94, LOC Swiss Bank Corp 3,500,000 3,500,000
2.25% 6/21/94, LOC Swiss Bank Corp 1,000,000 1,000,000
2.60% 6/22/94, LOC Swiss Bank Corp 4,000,000 4,000,000
2.35% 6/27/94, LOC Swiss Bank Corp 4,000,000 4,000,000
(Eastern Silk) 2nd Series D-2, 3.50%,
LOC Banque Nat'l. de Paris, VRDN (b) 1,560,000 1,560,000
(Hoffman-La Roche Inc.) 2.95%, LOC Bayerische
Landesbank Girozentrale, VRDN (b) 1,900,000 1,900,000
(Keystone Proj.) Series 1992, VT: (b)
2.25% 6/14/94, LOC Union Bank of Switzerland 2,500,000 2,500,000
2.25% 6/21/94, LOC Union Bank of Switzerland 7,200,000 7,200,000
2.40% 6/24/94, LOC Union Bank of Switzerland 1,860,000 1,860,000
2.70% 6/28/94, LOC Union Bank of Switzerland 5,500,000 5,500,000
(Morris Hall/St. Lawrence Inc.) Series 1993, 3.25%
5/2/94, LOC New Jersey Nat'l. Bank, OT 2,600,000 2,600,000
(Richard L Tauber Issue) Series 93 B-1, 3.10%,
LOC Nat'l. Westminster Bank, VRDN (b) 2,450,000 2,450,000
New Jersey Econ. Dev. Auth. Tender Option Bonds, VRDN: (c)
Series JPM-MGT-49E, 3.25% (Liquidity Enhancement
Morgan Guaranty) 2,000,000 2,000,000
Series JPM-MGT-49F, 3.25% (Liquidity Enhancement
Morgan Guaranty) 1,700,000 1,700,000
New Jersey Gen. Oblig. Tender Option Bonds, VRDN: (c)
Series BT-113, 2.80% (Liquidity Enhancement
Bankers Trust) 1,350,000 1,350,000
Series JPM-MGT-5, 3.25% (Liquidity Enhancement
Morgan Guaranty) 2,000,000 2,000,000
Series JPM-MGT-8, 3.25% (Liquidity Enhancement
Morgan Guaranty) 7,500,000 7,500,000
New Jersey Gen. Oblig. Tender Option Ctfs., VRDN: (c)
Series GS-EE-1, 3.50% (Liquidity Enhancement Bank of
Nova Scotia) 8,300,000 8,300,000
Series GS-EE-2, 3.50% (Liquidity Enhancement Bank of
Nova Scotia) 8,500,000 8,500,000
New Jersey Gen. Oblig. TRAN 3% 6/15/94 5,900,000 5,902,154
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Health Care Facs. Fing. Auth. Rev.
(Hosp. Cap. Asset Fing. Prog.) Series 1985 B, 3.20%,
LOC Chemical Bank, VRDN $ 1,600,000 $ 1,600,000
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN: (c)
Series CR-35, 3.15% (MBIA Insured)
(Liquidity Enhancement Citibank) (b) 6,200,000 6,200,000
Series CR-73, 3% (MBIA Insured)
(Liquidity Enhancement Citibank) 5,750,000 5,750,000
New Jersey Hsg. & Mtg. Fin. Agcy. Rev., Series 1993 1-A,
2.90% 9/29/94, MT 9,900,000 9,900,000
New Jersey Participating VRDN,
Series BS-91A-13, 3.40% (AMBAC Insured)
(Liquidity Enhancement Sakura Bank) (c) 1,055,000 1,055,000
New Jersey Sports and Exposition Auth. Rev., Series 1992 C,
3%, (MBIA Insured) VRDN 13,300,000 13,300,000
New Jersey Tpk. Auth. Tpk. Rev., Series 1991 D, 3.15%
(FGIC Insured), VRDN 10,900,000 10,900,000
Newark Tax Appeal Bonds 3.45% 10/1/94
(AMBAC Insured) 1,000,000 1,002,657
Passaic County BAN 2.75% 6/7/94 1,800,000 1,800,359
Salem County Ind. Poll. Cont. Fin. Auth. Poll. Cont. Rev.
(Philadelphia Elec. Pwr. Co.) Series 93 A, 2.35%
6/27/94, LOC Toronto-Dominion Bank, VT (b) 2,000,000 2,000,000
Sea Isle City BAN 2.91% 7/28/94 1,700,000 1,700,241
Somerset County Ind. Poll. Cont. Fing. Auth. Rev.
(Minnesota Mining & Manufacturing 3M)
Series 1982, 3%, VRDN 100,000 100,000
Trenton Gen. Oblig. Bonds 8.125% 8/15/94
(MBIA Insured) 1,000,000 1,016,556
Union City BAN 2.96% 10/19/94 1,000,000 1,000,375
Washington Township Bergen County BAN 2.96%
9/22/94 1,000,000 1,000,227
Woodbridge Township BAN 3.07% 11/7/94 13,000,000 13,003,120
330,453,114
NEW YORK & NEW JERSEY - 8.4%
New York & New Jersey Port Auth. Spl. Proj. Rev.
(KIAC Partners Proj.) Series 3, 3.05%,
LOC Deutsche Bank, VRDN (b) 16,600,000 16,600,000
New York & New Jersey Port Auth. Rev., VRDN:
Series 1991, 3.125% (b) 6,400,000 6,400,000
Series 1992, 3% 6,900,000 6,900,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - CONTINUED
New York & New Jersey Port. Auth. Rev., Series A, CP: (b)
2.45% 5/18/94 $ 1,300,000 $ 1,300,000
2.50% 6/23/94 1,040,000 1,040,000
32,240,000
PUERTO RICO - 5.5%
Puerto Rico TRAN, Series A, 3% 7/29/94 21,000,000 21,015,026
TOTAL INVESTMENTS - 100% $ 383,708,140
Total Cost for Income Tax Purposes $ 383,706,768
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
MT - Mandatory Tender
OT - Optional Tender
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & Revenue Anticipation Notes
VAN - Variable Rate Tax & Revenue
Anticipation Notes
VRDN - Variable Rate Demand Notes
VT - Variable Tender
LEGEND
(1.) The coupon rate shown on floating or adjustable rate securities
represents the
rate at period end.
(2.) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(3.) Provides evidence of ownership in one or more underlying municipal
bonds.
TAX INFORMATION
At October 31, 1993, the fund had a capital loss carryforward of
approximately $32,000 which will expire on October 31, 2001.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 30, 1994 (UNAUDITED)
4.ASSETS 5. 6.
7.Investment in securities, at value (Note 1) - See 8. $ 383,708,140
accompanying schedule
9.Receivable for investments sold 10. 3,608,120
11.Interest receivable 12. 2,403,383
13. 14.TOTAL ASSETS 15. 389,719,643
16.LIABILITIES 17. 18.
19.Payable for investments purchased $ 13,009,772 20.
21.Dividends payable 4,894 22.
23.Accrued management fee 75,810 24.
25.Notes payable 322,421 26.
27. 28.TOTAL LIABILITIES 29. 13,412,897
30.31.NET ASSETS 32. $ 376,306,746
33.Net Assets consist of (Note 1): 34. 35.
36.Paid in capital 37. $ 376,328,020
38.Accumulated net realized gain (loss) on investments 39. (22,646)
40.Unrealized gain from accretion of market discount 41. 1,372
42.43.NET ASSETS, for 376,300,825 shares outstanding 44. $ 376,306,746
45.46.NET ASSET VALUE, offering price and redemption 47. $1.00
price per share ($376,306,746 (divided by) 376,300,825 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)
48.49.INTEREST INCOME 50. $ 4,180,075
51.EXPENSES 52. 53.
54.Management fee (Note 2) $ 838,512 55.
56.Non-interested trustees' compensation 1,052 57.
58. Total expenses before reductions 839,564 59.
60. Expense reductions (Note 3) (354,658) 484,906
61.62.NET INTEREST INCOME 63. 3,695,169
64.REALIZED AND UNREALIZED GAIN (LOSS) ON 66. 9,679
INVESTMENTS
(NOTE 1)
65.Net realized gain (loss) on investment securities
67.Increase (decrease) in net unrealized gain from 68. 1,242
accretion
of market discount
69.70.NET GAIN (LOSS) 71. 10,921
72.73.NET INCREASE IN NET ASSETS RESULTING FROM 74. $ 3,706,090
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 1994 OCTOBER 31,
(UNAUDITED) 1993
75.INCREASE (DECREASE) IN NET ASSETS
76.Operations $ 3,695,169 $ 7,069,379
Net interest income
77. Net realized gain (loss) on investments 9,679 (6,081)
78. Increase (decrease) in net unrealized gain from 1,242 130
accretion of market discount
79. 80.NET INCREASE (DECREASE) IN NET ASSETS 3,706,090 7,063,428
RESULTING FROM
OPERATIONS
81.Dividends to shareholders from net interest income (3,695,169) (7,069,379)
82.Share transactions at net asset value of $1.00 per 212,792,220 246,461,045
share
Proceeds from sales of shares
83. Reinvestment of dividends from net interest income 3,576,030 6,870,321
84. Cost of shares redeemed (153,549,279) (289,060,254)
85. Net increase (decrease) in net assets and shares 62,818,971 (35,728,888)
resulting from share transactions
86. 87.TOTAL INCREASE (DECREASE) IN NET ASSETS 62,829,892 (35,734,839)
88.NET ASSETS 89. 90.
91. Beginning of period 313,476,854 349,211,693
92. End of period $ 376,306,746 $ 313,476,854
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
93. SIX MONTHS YEARS ENDED OCTOBER 31, MAY 1, 1990
ENDED (COMMENCEME
APRIL 30, 1994 NT OF
OPERATIONS) TO
OCTOBER 31,
94. (UNAUDITED) 1993 1992 1991 1990
95.SELECTED PER-SHARE DATA
96.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period
97.Income from Inves .011 .021 .032 .047 .029
tment
Operations
Net interest
income
98.Less Distribution (.011) (.021) (.032) (.047) (.029)
s
From net interest
income
99.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
100.TOTAL RETURN (dagger) 1.09% 2.17% 3.24% 4.84% 2.92%
101.RATIOS AND SUPPLEMENTAL DA
TA
102.Net assets, $ 376,307 $ 313,477 $ 349,212 $ 348,142 $ 210,157
end of period
(000 omitted)
103.Ratio of expens .29%* .44% .29% .11% -
es to
average net
assets (dagger)(dagger)
104.Ratio of expens .50%* .50% .50% .50% .50%*
es to
average net assets
before expense
reductions (dagger)(dagger)
105.Ratio of net inte 2.20%* 2.15% 3.20% 4.68% 5.90%*
rest
income to average
net assets
</TABLE>
* ANNUALIZED
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS
SHOWN.
(dagger)(dagger) SEE NOTE 3 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1994 (Unaudited)
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.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles.
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.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective November
1, 1993 the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of October 31, 1993 have been reclassified to
reflect an increase in paid in capital and an increase in accumulated net
realized loss on investments of $27,195.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all expenses
except the compensation of the non-interested Trustees and certain
exceptions such as interest, taxes, brokerage commissions and extraordinary
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
expenses. FMR receives a fee that is computed daily at an annual rate of
.50% of the fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $4,237.
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 .50% to .25% of average net
assets and the reimbursement reduced expenses by $354,658.
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
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 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
