FIDELITY
(registered trademark)
TAX-EXEMPT
MONEY MARKET
TRUST
ANNUAL REPORT
OCTOBER 31, 1995
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 29 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 33 Notes to the financial statements.
REPORT OF INDEPENDENT
ACCOUNTANTS 35 The auditors' 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 RISKS, INCLUDING 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:
Although the markets have been fairly positive this year, no one can
predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was almost
ideal.
These market ups and downs are a normal part of investing, and there are
some basic principles that can help investors in every type of market.
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, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Tax-Exempt Money Market Trust 3.48% 16.85% 49.50%
Average All Tax-Free Money Market Fund 3.35% 15.65% 47.43%
Consumer Price Index 2.81% 15.13% 41.40%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set 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, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to the
average all tax-free money market fund which reflects the performance of
393 tax-free money market funds with similar objectives tracked by
IBC/Donoghue over the past 12 months. Comparing the fund's performance to
the consumer price index (CPI) helps show how your fund did compared to
inflation. (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, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Tax-Exempt Money Market Trust 3.48% 3.16% 4.10%
Average All Tax-Free Money Market Fund 3.35% 2.95% 3.96%
Consumer Price Index 2.81% 2.86% 3.52%
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
10/31/94 1/30/95 4/24/95 7/31/95 10/30/95
Fidelity Tax-Exempt 3.01% 3.28% 3.75% 3.40% 3.41%
Money Market Trust
Average All Tax-Free 2.83% 3.14% 3.68% 3.29% 3.32%
Money Market Fund
Fidelity Tax-Exempt 4.70% 5.13% 5.86% 5.31% 5.33%
Money Market Trust -
Tax-equivalent
Row: 1, Col: 1, Value: 3.01
Row: 1, Col: 2, Value: 2.83
Row: 2, Col: 1, Value: 3.28
Row: 2, Col: 2, Value: 3.14
Row: 3, Col: 1, Value: 3.75
Row: 3, Col: 2, Value: 3.68
Row: 4, Col: 1, Value: 3.4
Row: 4, Col: 2, Value: 3.29
Row: 5, Col: 1, Value: 3.41
Row: 5, Col: 2, Value: 3.32
4% -
3% -
2% -
1% -
0%
Fidelity Tax-Exempt
Money Market Trust
Average All
Tax-Free
Money Market
Fund
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. 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. Figures for the average all tax-free money market fund are
from 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 Deborah Watson,
Portfolio Manager of Tax-Exempt Money Market Trust
Q. DEBORAH, THERE HAVE BEEN SOME DRAMATIC SHIFTS IN THE INVESTMENT CLIMATE
DURING THE PAST YEAR. CAN YOU BRING US UP TO DATE?
A. Sure. We've left behind an environment in which the Federal Reserve was
raising interest rates to slow down growth and ward off inflation and
entered one in which the Fed's main concern has been keeping growth on
track. Throughout the spring and early summer, there were persistent signs
of weakness. In July, the Fed responded by lowering the federal funds rate
one-quarter percent, breaking a string of seven rate increases, during
which the federal funds rate doubled from 3% to 6%. Since then, while
interest rates on many short-term securities have continued to fall, the
Fed has stayed on the sidelines, awaiting clearer signals on the economy's
direction. The initial estimate of third-quarter growth in the gross
domestic product (GDP) surprised most analysts when it came in at more than
4%, much higher than expected. Inflation, however, remains quite tame. For
every sign of strength in the economy, it seems, there's an offsetting
weakness.
Q. YOU'VE BEEN MANAGING THE FUND SINCE JUNE, WHEN YOU TOOK OVER FROM SARAH
ZENOBLE. WHAT CHANGES HAVE YOU MADE?
A. My approach and Sarah's are very similar. Therefore any changes I've
made have been in response only to changing conditions. The fund's average
maturity a year ago October was 48 days. With rates on the rise, Sarah
shortened the fund to 28 days at the end of January. In retrospect, she
might have preferred having a somewhat longer average maturity; soon after
the Fed's rate increase in February, market rates began to fall on
expectations of an impending rate cut by the Fed. On the other hand, Sarah
thought it important to maintain flexibility and liquidity in the wake of
the Orange County, California, bankruptcy. By investing more heavily than
usual in tax-free commercial paper, she kept the fund's yield competitive.
By the time I took over, the downward trend in rates was clearer. During
the annual summer borrowing season, I lengthened the fund's average
maturity, reaching 57 days by the end of June and closing the period, on
October 31, 1995, at 64 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on October 31, 1995, was 3.42%, compared to
3.01% a year ago. The latest yield was the equivalent of a 5.34% taxable
yield for investors in the 36% federal tax bracket. The fund had a total
return for the year of 3.48%, which beat the total return of 3.35% for the
average all tax-free money market fund, according to IBC/Donoghue.
Q. WHAT'S AHEAD FOR THE COMING MONTHS?
A. Lately I've been cutting back on the percentage of commercial paper in
the fund, which is down now to around 24%. It's less attractive now, and
I've been able to capture yield in other ways, mainly by lengthening the
fund's average maturity. Despite the strong improvement in the
third-quarter GDP, the economy remains in flux. Many market participants
lately have been taking their cue from external factors, including
prospects for a budget agreement that might dramatically reduce federal
spending. Many feel the Fed would closely follow any such agreement with a
rate cut to offset any resulting economic weakness. I think the fund is
well-positioned currently with an average maturity of 64 days. I'll likely
maintain an average maturity of between 60 and 70 days in the months ahead,
hoping to preserve an attractive yield while still maintaining some
flexibility in the face of declining rates.
FUND FACTS
GOAL: high current income
while maintaining a stable $1
share price by investing in
high-quality, short-term
municipal money market
securities
START DATE: January 2, 1980
SIZE: as of October 31, 1995,
more than $3.6 billion
MANAGER: Deborah Watson;
since June 1, 1995; manager
Fidelity California Tax-Free
Money Market, Spartan
California Municipal Money
Market; Capital Reserves
Municipal Money Market and
Spartan Pennsylvania
Municipal Money Market
Portfolios; joined Fidelity in
1982
(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,
usually 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
10/31/95 4/30/95 10/31/94
0 - 30 66 68 60
31 - 90 12 27 26
91 - 180 3 3 5
181 - 397 19 2 9
WEIGHTED AVERAGE MATURITY
10/31/95 4/30/95 10/31/94
Fidelity Tax-Exempt
Money Market Trust 64 days 33 days 48 days
Average All Tax-Free
Money Market Fund* 53 days 37 days 51 days
ASSET ALLOCATION
AS OF OCTOBER 31, 1995 AS OF APRIL 30, 1995
Row: 1, Col: 1, Value: 55.0
Row: 1, Col: 2, Value: 24.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 18.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 1, Value: 51.0
Row: 1, Col: 2, Value: 28.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 19.0
Row: 1, Col: 5, Value: 0.0
Variable rate
demand notes
(VRDNs) 55%
Commercial
paper 24%
Tender bonds 3%
Municipal
notes 18%
Other 0%
Variable rate
demand notes
(VRDNs) 51%
Commercial
paper 28%
Tender bonds 2%
Municipal
notes 19%
Other 0%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS OCTOBER 31, 1995
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES - 100%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ALABAMA - 1.3%
Alabama Hsg. Fin. Auth. Multi-Family Hsg. Rev.:
Rfdg. Bonds (Rime Village Proj.) Series 1988 B,
3.75%, tender 11/17/95, LOC NationsBank $ 10,000 $ 10,000
(Gazebo East Proj.) Series 1991 B, 4.35%, LOC
Amsouth Bank of Alabama, VRDN 3,655 3,655
Decatur Poll. Cont. Rev. Rfdg. (Monsanto Co. Proj.)
Series 1992, 3.90%,VRDN 3,500 3,500
Jefferson County Swr. Rev. Series 1995 A, 4%,
LOC Bayerische Landesbank Girozentale,VRDN 15,000 15,000
Mobile Special Care Facs. Fin. Auth. Hosp. Rev.
(Daughters of Charity Providence Hosp.)
Series 1984, 3.95%, FRDN 15,000 15,000
47,155
ALASKA - 0.5%
Alaska Hsg. Fin. Corp. Gen. Mtg. Rev. Series 1991 C,
4% (BPA Swiss Bank Corp.) VRDN 12,000 12,000
Valdez Marine Terminal Rev. Rfdg. (Atlantic Richfield Co.)
Series 1994 B, 4%, VRDN 5,000 5,000
17,000
ARIZONA - 5.4%
Apache County Ind. Dev. Auth. Rev., VRDN:
(Tucson Elec. Pwr. Co. Springerville Proj.):
Series 1983 A, 3.95%, LOC Barclays Bank 18,300 18,300
Series 1983 B, 4.05%, LOC Bank of New York 27,900 27,900
Series 1983 C, 4.05%, LOC Bankers Trust Co. 15,800 15,800
Series 1985 A, 3.95%, LOC Barclays Bank 9,900 9,900
Arizona Health Facs. Auth. Rev., VRDN:
(Samcor 1986 Loan Pool-Samaritan Health Care) 3.90%
(FGIC Insured) (BPA Chemical Bank) 19,430 19,430
(Voluntary Hosp. Federation Pooled Loan Prog.):
Series 1985 A, 3.90% (FGIC Insured)
(Liquidity Facility Citibank) 8,945 8,945
Series 1985 B, 3.90% (FGIC Insured)
(Liquidity Facility Citibank) 7,800 7,800
Maricopa County Poll. Con. Rev. Bonds:
(Southern California Edison Co.):
Series 1985 C, 3.80%, tender 1/18/96 4,300 4,300
Series 1985 D, 3.80%, tender 1/22/96 5,450 5,450
Series 1985 E:
3.85%, tender 12/11/95 20,230 20,230
3.80%, tender 1/22/96 5,000 5,000
Series 1985 F, 3.80%, tender 1/22/96 8,150 8,150
Phoenix Ind. Dev. Auth. Multi-Family Hsg. Rev.
(Bell Square Apt. Proj.) Series 1995, 4.10%,
LOC General Electric Capital Corp., VRDN 6,000 6,000
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ARIZONA - CONTINUED
Pima County Ind. Dev. Auth. Ind. Rev.:
Rfdg. (Tucson Retirement Ctr. Proj.)
3.95%, LOC Swiss Bank, VRDN $ 1,000 $ 1,000
(Tucson Elec. Pwr. Co.) (Irvington Proj.) Series 1982 A,
4%, LOC Societe Generale, VRDN 14,300 14,300
Salt River Proj. Agric. Impvt. & Pwr. Dist., 3.75%
11/27/95, CP 15,413 15,413
Tucson Ind. Dev. Auth. Multi-Family Hsg. Rev. Rfdg.
(Freedom Park Apts. Proj.) Series1989 A, 4.05%,
LOC Sumitomo Bank, VRDN 5,295 5,295
193,213
ARKANSAS - 0.5%
Arkansas Dev. Fin. Auth. Health Facs. Rev.
(Sisters of Mercy Health Sys.) Series 1989 B,
3.85% (BPA Rabobank) VRDN 5,400 5,400
Little Rock Health Facs. Board Rev. (S.W. Hosp.) Series 1988,
4% (FGIC Insured) (Liquidity Facility Bank of Nova Scotia)
VRDN 10,500 10,500
Little Rock School Dist. TRAN Series 1995,
4.20% 12/28/95 1,800 1,800
17,700
CALIFORNIA - 7.5%
Alameda County TRAN 4.75% 7/25/96,
LOC Union Bank of Switzerland 9,000 9,047
California Higher Ed. Loan Auth. Student Loan Rev.
Senior Lien Bonds Series 1992 A, 3.90%, tender
7/1/96, LOC SLMA 20,000 20,000
California Student Loan Mktg. Corp. Student Loan Rev. Rfdg.
Series 1993 A, 3.90%, LOC Dresdner Bank, VRDN 4,500 4,500
California School Cash Reserve Prog. Auth. TRAN
Series 1995 A, 4.75% 7/3/96 50,000 50,322
Contra Costa County TRAN 4.50% 7/3/96 11,000 11,060
Fresno County TRAN 4.50% 7/2/96 11,200 11,230
Los Angeles County TRAN 4.50% 7/1/96 83,000 83,371
Los Angeles Unified School Dist. TRAN 4.50% 7/3/96 29,000 29,150
Oakland TRAN 4.50% 7/31/96 12,500 12,556
Oakland Unified School Dist. TRAN 4.50% 8/30/96 10,000 10,033
San Bernardino County TRAN 4.50% 7/5/96 26,000 26,093
267,362
COLORADO - 1.0%
Denver City & County Multi-Family Hsg. Rev. Rfdg.
(The Seasons Apts.) Series 1990, 4%,
LOC Federal Home Loan Bank
(Liquidity Facility Banque Paribas) VRDN 12,900 12,900
Moffat County Poll. Cont. Rev. Rfdg.
(Colorado-UTE Elec. Assoc. ) Series 1984, 3.95%
(Nat'l. Rural Utils. Coop. Guaranteed) VRDN 24,200 24,200
37,100
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
CONNECTICUT - 0.9%
Connecticut Special Assessment Unemployment Rev. Bonds
Series 1993 C, 3.85%, tender 7/1/96 (FGIC Insured) $ 32,000 $ 32,000
DELAWARE - 1.9%
Delaware Econ. Dev. Auth. Multi-Family Rev.
(Schoolhouse Trust Prog.) 4.40%, LOC Marine Midland
Bank, VRDN 26,400 26,400
Delaware Econ. Dev. Auth. Rev., VRDN:
(Hosp. Billing & Collection Svcs. Proj.):
Series 1985 B, 4% (MBIA Insured)
(BPA Morgan Stanley Group Inc.) 25,000 25,000
Series 1985 C, 4% (MBIA Insured)
(BPA Morgan Stanley Group Inc.) 15,000 15,000
66,400
FLORIDA - 9.9%
Brevard County Hsg. Fin. Auth. Rev. (Sun Pointe Bay
Apts. Proj.) Series 1993, 4.20% (Continental
Casualty Guaranteed) VRDN 2,180 2,180
Broward County Hsg. Fin. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Jacaranda Village Apts. Proj.) 4%,
LOC Marine Midland 5,000 5,000
(Landings Inverrary) 3.90%, LOC PNC Bank 3,900 3,900
(Parkview Partnership Ltd. Proj.) Series 1985, 4.20%,
LOC Fuji Bank 4,500 4,500
Dade County Ind. Dev. Auth. Ind. Dev. Rev.
(Dolphins Stadium Proj.) VRDN:
Series 1985 C, 3.80%, LOC Hong Kong & Shanghai
Banking Corp. 4,800 4,800
Series 1985 D, 3.80%, LOC Hong Kong & Shanghai
Banking Corp. 12,900 12,900
Dade County Ind. Dev. Auth. (Florida Pwr. & Light
Co. Proj.) Series 1993, 3.90%, VRDN 2,300 2,300
Florida Hsg. Fin. Agcy. Multi-Family Hsg., VRDN:
(Hillsborough-Oxford Proj.) Series D, 4.25%
(Continental Casualty Guaranteed) 5,000 5,000
(Oaks at Mill Creek Proj.) Series 1985, 4.10%,
LOC Chemical Bank 4,800 4,800
(Players Club) Series 1991 C, 4.10%,
LOC Sumitomo Bank 24,500 24,500
Florida League of Cities First Muni. Pooled Loan Prog. Bonds
Series 2, 3.95%, tender 11/7/95, LOC Sumitomo Bank 3,200 3,200
Florida Local Govt. Fin. Auth. (Lake Wales Med. Ctrs.
Inc. Proj.) Series 1994 A, 3.95%, LOC First Union
National Bank, VRDN 2,000 2,000
Florida Local Govt. Fin. Commission, CP:
Series A:
3.85% 11/28/95, LOC First Union National Bank 6,000 6,000
3.75% 11/29/95, LOC First Union National Bank 15,300 15,300
3.80% 11/29/95, LOC First Union National Bank 5,000 5,000
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
FLORIDA - CONTINUED
Florida Muni. Pwr. Agcy. (Initial Pooled Loan Prog.) Series A,
3.80% 2/12/96, LOC First Union National Bank, CP $ 7,660 $ 7,660
Florida State Board of Ed. Participating VRDN, Series PA-103,
4% (Liquidity Facility Merrill Lynch & Co.) (b) 9,735 9,735
Hialeah Hosp. Rev. Rfdg. (Hialeah Hosp. Inc. Proj.) Series B,
4.15%, LOC Bank of Montreal, VRDN 3,410 3,410
Indian River County Hosp. Dist. Hosp. Rev. Bonds:
Series 1988, 3.90%, tender 11/13/95,
LOC Kredietbank 7,100 7,100
Series 1990, 3.90%, tender 11/13/95,
LOC Kredietbank 3,000 3,000
Jacksonville Elec. Auth. Rev. Series A, 3.80% 2/9/96
(Liquidity Facility Morgan Guaranty Trust Co.) CP 5,400 5,400
Jacksonville Poll. Cont. Rev. Bonds (Florida Pwr. & Light
Co. Proj.) Series 1994, 3.80%, tender 1/23/96 11,860 11,860
Jacksonville River City Renaissance Prog., CP:
3.75% 11/27/95 14,300 14,300
3.80% 12/11/95 19,000 19,000
3.80% 12/12/95 5,700 5,700
Lee County Hosp. Board Hosp. Rev. Bonds:
(Lee Memorial Hosp. Proj.):
Series 1985 D, 3.95%, tender 12/12/95
(Liquidity Facility SunTrust Bank) 20,000 20,000
Series 1992 B:
3.95%, tender 11/16/95
(Liquidity Facility SunTrust Bank) 5,000 5,000
3.95%, tender 12/12/95
(Liquidity Facility SunTrust Bank) 10,000 10,000
Manatee County Hsg. Fin. Auth. (Harbor Pointe Proj.)
Series 1990 A, 4.40%,
LOC Marine Midland Bank., VRDN 2,100 2,100
Naples Hosp. Rev. Series 1992, 4.05%, LOC Mellon Bank,
VRDN 8,200 8,200
Palm Beach County Ind. Dev. (Palm Beach Jewish
Commty. Campus Corp. Proj.) Series1990, 3.95%,
LOC SunTrust Bank, VRDN 4,510 4,510
Pinellas County Health Facs. Auth. Rev. (Bayfront Med.)
3.90% (FGIC Insured) (BPA Barnett Bank) VRDN 2,000 2,000
Reedy Creek Impt. Dist. Participating VRDN,
Series CR-168, 4.02% (Liquidity Facility Citibank) (b) 12,100 12,100
St. Johns County Hsg. Fin. Auth. Multi-Family Hsg. Rev.
(Remington at Ponte Vedra Proj.) 3.90%,
LOC SunTrust Bank, VRDN 12,000 12,000
St. Lucie County Poll. Cont. Rev. Rfdg. Bonds (Florida Pwr. & Light
Co. Proj.) Series 1994 A, 3.80%, tender 2/12/96 4,500 4,500
Sarasota County Pub. Hosp. Dist. Bonds:
(Sarasota Memorial Hosp.):
Series 1991:
3.85%, tender 11/9/95
(Liquidity Facility SunTrust Bank) 7,700 7,700
3.80%, tender 11/16/95
(Liquidity Facility SunTrust Bank) 5,000 5,000
3.85%, tender 11/17/95
(Liquidity Facility SunTrust Bank) 4,000 4,000
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
FLORIDA - CONTINUED
Sarasota County Pub. Hosp. Dist. Bonds - continued
(Sarasota Memorial Hosp.):
Series 1991:
3.80%, tender 12/7/95
(Liquidity Facility SunTust Bank) $ 10,000 $ 10,000
3.80%, tender 2/14/96
(Liquidity Facility SunTrust Bank) 14,800 14,800
Series 1993 A:
3.85%, tender 11/9/95 (Liquidity Facility
Goldman Sachs) 6,000 6,000
3.75%, tender 12/19/95 (Liquidity Facility
Goldman Sachs) 3,500 3,500
Sunshine State Governmental Fing. Commission, CP:
3.75% 12/18/95 13,140 13,140
3.82% 2/13/96 12,075 12,075
Volusia County Health Facs. Auth. Rev. (Southwest Volusia
Healthcare Corp.) Series 1994 A, 3.85%, LOC First
Union National Bank, VRDN 7,000 7,000
352,170
GEORGIA - 4.4%
Albany Dougherty Payroll Dev. Auth. Poll. Cont. Rev. Rfdg.
(Philip Morris Cos. Proj.) 3.95%, VRDN 2,790 2,790
Cherokee County Wtr. & Swr. Participating VRDN,
Series 1993,4.05% (MBIA Insured)
(Liquidity Facility Merrill Lynch & Co.) (b) 4,420 4,420
Clayton County Hsg. Auth. Multi-Family Hsg. Rev. Rfdg., VRDN:
(Ten Oaks Apts. Proj.) Series 1990 F, 3.90%
(FSA Insured) (BPA Barclays Bank) 1,100 1,100
(Villa Rouge Apts. Proj.) Series 1990 C, 3.90%
(FSA Insured) (BPA Barclays Bank) 3,900 3,900
Cobb County TAN 5% 12/29/95 11,500 11,514
Cobb-Marietta Coliseum & Exhibition Hall Auth. Rev. Rfdg.
Participating VRDN, Series PA-65, 4.05%
(MBIA Insured) (Liquidity Facility Merrill Lynch & Co.) (b) 11,000
11,000
Columbia County Residential Care Facs. Rev. (Augusta
Residential Ctr./Brandon Wilde Lifecare Ctr.) 3.95%,
LOC SunTrust Bank, VRDN 6,735 6,735
DeKalb County Hsg. Auth. Multi-Family Hsg. Rfdg.
(Wood Terrace Proj.) Series 1988, 4.075%,
LOC Bankers Trust Co., VRDN 2,900 2,900
DeKalb County Ind. Auth. Dev. Auth. (American Cancer
Society Inc. Proj.) Series 1988, 3.75%,
LOC SunTrust Bank, VRDN 6,005 6,005
Dekalb County TAN 5% 12/29/95 15,000 15,019
Fulton County Dev. Auth. (Georgia Tech Athletic Assoc.)
3.95%, LOC SunTrust Bank, VRDN 7,900 7,900
Fulton County Hosp. Auth. Rev. Bonds (St. Joseph's Hosp.
of Atlanta) 3.80%, tender12/8/95,
LOC SunTrust Bank 10,000 10,000
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
GEORGIA - CONTINUED
Georgia Gen. Oblig. Participating VRDN, Series BT-122,
4.15% (BPA Bankers Trust Co.) (b) $ 4,580 $ 4,580
Georgia Muni. Elec. Auth. Participating VRDN,
Series 1994 D, 4.07% (Liquidity Facility Citibank) (b) 22,400 22,400
Georgia Muni. Gas Auth. Rev. Bonds (Southern Portfolio Proj.)
3.80%, tender 11/14/95, LOC Wachovia Bank 2,600 2,600
Gwinnett County Wtr. & Swr. Auth. Wtr. Rev. Partnership Ctfs.,
Series BT-17, 4.15% (BPA Bankers Trust Co.) (b) 7,069 7,069
Marietta Hsg. Auth. Multi-Family Hsg. Rev. Rfdg.
(Wood Pointe Apts.) Series 1993
(Continental Casualty Guaranteed) 4.35%, VRDN 4,895 4,895
Roswell Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg:
(Roswell-Oxford Proj.) Series 1990, 4.25%
(Continental Casualty Guaranteed) 6,100 6,100
(Ski Lodge Apts. Proj.) Series 1991 B, 4.20%,
LOC Amsouth Bank 3,230 3,230
(Wood Crossing Proj.) 4%, LOC NationsBank 6,650 6,650
(Autumnbrook Apts.) Series 1991 A, 4.15%,
LOC AmSouth Bank 7,165 7,165
Whitfield County Residential Care Facs. Auth. Rev.
(Royal Oaks Sr. Living Comm.) 4%,
LOC First Union National Bank, VRDN 9,350 9,350
157,322
HAWAII - 0.2%
Hawaii Gen. Oblig. Participating VRDN, Series 1993 H, 4%
(Liquidity Facility Morgan Guaranty Trust Co.) (b) 6,425 6,425
IDAHO - 1.0%
Caribou County Poll. Cont. Rev. Rfdg. (Monsanto Co.)
Series 1990, 3.90%, VRDN 5,100 5,100
Idaho Gen. Oblig. TAN Series 1995, 4.50% 6/27/96 22,000 22,097
Idaho Health Facs. Auth. Rev. (St. Lukes Regional Med. Ctr.)
3.95%, LOC Credit Suisse, VRDN 9,120 9,120
36,317
ILLINOIS - 3.9%
Aurora Multi-Family Hsg. Rev. Rfdg. (Fox Villages Proj.)
Series 1993, 4.10%, LOC Sumitomo Bank, VRDN 10,135 10,135
Chicago Gen. Oblig. Bonds Participating VRDN (b):
Series CR-165, 4.02% (Liquidity Facility Citibank) 10,000 10,000
Series CR-166, 4.02% (Liquidity Facility Citibank) 10,000 10,000
Cook County Rev. (Claretian Assoc. Neighborhood Dev. Office)
Series 1990, 3.95%, LOC ABN-AMRO Bank, VRDN 4,100 4,100
City of Elmhurst Adj. Demand Rev.
(Joint Commission of Healthcare) Series 1988, 4.20%,
LOC Sanwa Bank, VRDN 5,000 5,000
Hazel Crest Retirement Ctr. Rev. (Waterford Estates Proj.)
Series 1992 A, 4.10%, LOC Sumitomo Bank, VRDN 5,555 5,555
Illinois Dev. Fin. Auth. Poll. Con. Rev. (Illinois Pwr. Co.) 3.85%,
LOC Canadian Imperial Bank, VRDN 2,600 2,600
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ILLINOIS - CONTINUED
Illinois Dev. Fin. Auth. Rev. (Museum of Contemporary
Art Proj.) Series 1994, 3.90%, VRDN $ 15,000 $ 15,000
Illinois Edl. Fac. Auth. (Chicago Children's Museum)
Series 1994, 3.90%,
LOC Nat'l. Bank of Detroit, VRDN 3,100 3,100
Illinois Edl. Facs. Auth. Rev. (Northwestern Univ.) Series 1988,
3.90% (BPA Northern Trust Co.) VRDN 4,200 4,200
Illinois Health Facs. Auth. Rev., VRDN:
(Evangelical Hosp. Proj.) 3.85%,
LOC First Nat'l. Bank of Chicago 7,700 7,700
(Gottlieb Health Resources Inc.) 3.90%, LOC Harris Trust &
Savings Bank 4,000 4,000
(Health Corp. Affiliates)
Series 1985 A, 4%, LOC Fuji Bank 7,900 7,900
(Northwest Comm. Hosp.) Series 1995, 4%,
(Liquidity Facility Sanwa Bank) 2,300 2,300
Pekin Mem. Hosp. Proj.) Series 1993 C, 4%,
LOC Lasalle Nat'l. Bank of Chicago 3,700 3,700
(Springfield Mem. Hosp.) Series 1985 C, 4%,
LOC Fuji Bank 1,000 1,000
(West Suburban Hosp. Med. Ctr. Proj.) Series 1991,
3.95%, LOC First Chicago Corp. 13,400 13,400
Libertyville Ind. Rev. Rfdg. (Libertyville Manor Facs. Proj.)
Series 1992, 4%, LOC First of America Bank-Michigan,
VRDN 4,400 4,400
Mundelein Ind. Dev. Rev. Rfdg. (1200 Town Line Rd. Proj.)
3.90%, LOC Harris Trust & Savings Bank, VRDN 2,900 2,900
Rockford Ind. Dev. Rev. (Longview Fiber Co.) Series 1987,
3.90%, LOC Algemene Bank, VRDN 2,000 2,000
Schaumberg Multi-Family Rev. Rfdg. (Treehouse II Apts. Proj.)
Series 1989, 4.10%, LOC Sumitomo Bank, VRDN 21,285 21,285
140,275
INDIANA - 2.7%
Dyer Health Facs. Participating VRDN, Series 1992 A,
4.10% (FHA Insured) (Liquidity Facility Bank One) (b) 3,545 3,545
Fort Wayne Health Care Facs. Participating VRDN,
4.10% (FGIC Insured) (Liquidity Facility Bank One) (b) 3,720 3,720
Fort Wayne Hosp. Auth. Hosp. Rev. (Parkview Hosp.) Series B,
4.15%, LOC Fuji Bank, VRDN 1,300 1,300
Fort Wayne Poll. Cont. Rev. (General Motors Corp. Proj.) 4%,
VRDN 1,380 1,380
Indiana Dev. Fin. Auth. Ind. Dev. Rev. Rfdg. (Group Dekko Int'l.,
Inc. Proj.) 4%, LOC Bank One, VRDN 2,265 2,265
Indiana Health Facs. Fing. Auth. Hosp. Rev., VRDN:
(Deaconess Hosp.) Series 1992, 4.05%, LOC Fuji Bank 1,000 1,000
(St. Anthony Med. Ctr., Inc.) Series 1989, 4%,
LOC Sanwa Bank 1,600 1,600
Indiana Health. Facs. Fin. Auth. Rev. (Capital Access
Designated Pool) Series 1991, 3.90%,
LOC Comerica Bank, VRDN 1,940 1,940
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
INDIANA - CONTINUED
Indiana Hosp. Equip. Fing. Auth. Rev. Series 1985 A, 3.90%
(MBIA Insured) (BPA Bank of New York) VRDN $ 2,500 $ 2,500
Indiana Hsg. Fin. Auth. Single Family Mtg. Rev. Bonds
Series 1994 D, 4.30%, tender 7/3/96 (FGIC Insured) 8,400 8,400
Indianapolis Econ. Dev. Rev. Rfdg. (Morningside of College Park)
Series 1993, 4%, LOC Bank One, VRDN 6,470 6,470
Indianapolis Health Care Facs. Participating VRDN, 4.10%
(FHA Insured) (Liquidity Facility Bank One) (b) 4,145 4,145
Jasper County Poll. Cont. Rev. Bonds (Northern Indiana Pub.
Serv. Proj.) Series 1988 B, 3.70%, tender 12/19/95,
LOC Barclays Bank 12,000 12,000
Kendallville Ind. Dev. Rev. Rfdg. Series 1993
(Philip Morris Cos., Inc.) 3.95%, VRDN 2,475 2,475
Lawrence Township Metropolitan School Dist.
TAN 5.50% 12/29/95 1,500 1,501
Purdue Univ. Rev. (Student Fee) Series E, 3.80%, VRDN 2,020 2,020
Rockport Poll. Cont. Rev. Rfdg.
(Michigan Pwr. Co, Proj.) 3.95% (AMBAC Insured)
(Liquidity Facility Bank of New York) VRDN 7,000 7,000
Sullivan Poll. Cont. Rev. Bonds:
(Hoosier Energy):
Series 1985 L-1, 3.80%, tender 2/14/96
(Nat'l. Rural Utils. Coop.-CFC Guaranteed) 5,645 5,645
Series 1985 L-2, 3.80%, tender 2/13/96
(Nat'l. Rural Utils. Coop.-CFC Guaranteed) 10,550 10,550
Series 1985 L-5, 3.80%, tender 2/14/96
(Nat'l. Rural Utils. Coop.-CFC Guaranteed) 5,505 5,505
Valparaiso Econ. Dev. Rev. (Indiana Retirement
Commty. Proj.) 4%, LOC Bank One, VRDN 4,900 4,900
Vigo County Gen. Oblig. Independent School Corp.
TAN 5.30% 12/29/95 5,000 5,003
94,864
IOWA - 0.3%
Des Moines Comm. Dev. Rev. (Levy, Malone & Co. Proj. #1)
Series 1984, 3.80%, LOC First Bank of Minnesota,
VRDN 5,800 5,800
Iowa Fin. Auth. Small Bus. Dev. Rev. ( Corporate Ctr. Proj.)
4.075% (Principal Mutual Life Insurance Guaranteed)
VRDN 6,000 6,000
11,800
KANSAS - 1.6%
Burlington Poll. Cont. Rev. Bonds
(Kansas Elec. Pwr.):
Series 1985 C-2, 3.75%, tender 12/8/95
(Nat'l. Rural Util. Coop.-CFC Guaranteed) 9,550 9,550
Series 1985 C-2, 3.80%, tender 2/14/96
(Nat'l. Rural Util. Coop.-CFC Guaranteed) 4,250 4,250
Olathe Edl. Facs. Rev. (College Assoc. Pooled Ed. Loan Prog.)
Series 1989 A, 3.95%,
LOC Hong Kong & Shanghai Banking Corp., VRDN 38,270 38,270
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
KANSAS - CONTINUED
Winfield Ind. Dev. Rev. (Binney & Smith, Inc. Proj.)
Series 1982 A, 3.80%, LOC Morgan Guaranty
Trust Co., VRDN $ 4,400 $ 4,400
56,470
KENTUCKY - 1.0%
Jefferson County Poll. Cont. Rev. Bonds (Louisville Gas & Elec.):
Series 1993 A:
3.70%, tender 12/19/95 6,000 6,000
3.80%, tender 2/12/96 9,265 9,265
Kentucky Assoc. of Counties Reinsurance Trust Rev.
Series 1990, 4.15%, LOC Hong Kong & Shanghai
Banking Corp., VRDN 17,000 17,000
Kentucky Dev. Fin. Auth. Healthcare Sys. Rev.
(Appalachian Regional Health) 4%,
LOC ABN-AMRO Bank, VRDN 2,900 2,900
35,165
LOUISIANA - 3.6%
Calcasieu Ind. Dev. Board Poll. Cont. Rfdg. Rev.
(PPG Inds.) Series 1992, 4%,VRDN 14,450 14,450
Jefferson Parish (W. Jefferson Med. Ctr. Dist. #1)
Series 1986, 4.05%, LOC Citibank, VRDN 27,320 27,320
Louisiana Public Facs. Auth., VRDN:
(College & Univ. Equip. & Cap. Facs. Rev.) Series 1985
3.90% (FGIC Insured) (BPA Societe Generale) 9,055 9,055
(Greenbriar Hosp. Proj.) Series 1984, 3.95%,
LOC Societe Generale 1,700 1,700
Louisiana Pub. Facs. Auth. Health Care Sys. Bonds
(Sisters of Charity of the Incarnate Word) 3.85%,
tender 11/13/95 (BPA Credit Suisse) 13,400 13,400
Louisiana Public Facs. Auth. Hosp. Rev. Rfdg.
(Willis-Knighton Med. Ctr. Proj.) Series1992, 3.95%
(AMBAC Insured) (Liquidity Facility Mellon Bank) VRDN 8,000 8,000
Louisiana Recovery Dist. Sales Tax Rev. Series 1988, 3.90%,
(MBIA Insured) (BPA Swiss Bank) VRDN 2,900 2,900
Orleans Levee Dist. Rev., VRDN:
(Levee Impt.) Series 1986, 4.10%, LOC Fuji Bank 13,635 13,635
(Pub. Impt.) Series 1986, 4.10%, LOC Fuji Bank 21,675 21,675
St. Charles Parish Poll. Cont. Rev. Rfdg. (Monsanto Co. Proj.)
Series 1994, 3.90%, VRDN 11,725 11,725
West Baton Rouge Parish Ind. Dist. # 3 Rev. Rfdg. Bonds
(Dow Chemical Co. Proj.) Series 1991, 3.85%,
tender 1/9/96 3,000 3,000
126,860
MAINE - 0.2%
Biddeford Resource Recovery Rev.
(Maine Energy Recovery Co. Proj.) Series 1985, 3.95%,
LOC Bank of America, VRDN 5,500 5,500
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MARYLAND - 1.3%
Howard County Multi-Family Hsg. Rev. (Chase Greens Proj.)
Series 1985 A, 4.075%, LOC Bankers Trust Co., VRDN $ 4,800 $ 4,800
Maryland Econ. Dev. Corp. Rev. Series 1995, 4%,
LOC NationsBank, VRDN 11,000 11,000
Maryland Health and Higher Ed. Facs. Auth. Rev., VRDN:
(Leland Memorial Hosp.) 4%, LOC NationsBank 3,220 3,220
(Pooled Loan Prog.) Series D, 4%, LOC NationsBank 8,435 8,435
Prince George's County Sports Arena Rev. (Capital Ctr. Fac.),
4%, LOC NationsBank, VRDN 8,060 8,060
Washington Suburban Sanitation Dist. Participating VRDN,
Series 1994 F-A, 4.07% (Liquidity Facility Citibank) (b) 10,800 10,800
46,315
MICHIGAN - 3.2%
Dearborn Econ. Dev. Corp. (Oakbrook Common Proj.)
Series 1991, 3.95%, LOC Mellon Bank, VRDN 4,000 4,000
Farmington Hills Hosp. Fin. Auth. Hosp. Rev. (Botsford Hosp.)
4% (MBIA Insured) (BPA Comerica Bank) VRDN 200 200
Michigan Hosp. Fin. Auth. (Hosp. Equip. Loan Prog.) VRDN:
4%, LOC First of America Bank 1,100 1,100
Series A, 4% LOC First of America Bank 3,700 3,700
Michigan Hosp. Fin. Auth. Rev. Rfdg. (Mt. Clemens Gen. Hosp.)
Series 1994, 3.95%, LOC Comerica Bank 11,500 11,500
Michigan Hsg. Dev. Auth. Rental Hsg. Rev. Series 1994 C,
3.90%, LOC Credit Suisse, VRDN 11,100 11,100
Michigan Muni. Auth. RAN Series 1995 B, 4.50%
7/3/96 70,000 70,316
Michigan Strategic Fund Rev. Bonds (Dow Chemical Co. Proj.):
Series 1986:
3.75%, tender 11/17/95 5,000 5,000
3.80%, tender 12/8/95 4,300 4,300
Series 1987, 3.85%, tender 1/17/96 2,500 2,500
Michigan Strategic Fund Rev. Rfdg. (Dow Chemical)
Series 1994, 4%, VRDN 1,500 1,500
115,216
MINNESOTA - 3.8%
Becker Poll. Cont. Rev. Bonds (Northern States Pwr. Co.)
(Sherburne Co. Gen. #3):
Series 1993 A, 3.80%, tender 11/13/95 6,700 6,700
Series 1993 B, 3.80%, tender 2/13/96 5,000 5,000
Bloomington Multi-Family Hsg. Rev. Rfdg. (Crow/Bloomington
Apts. Proj.) 4%, LOC Citibank, VRDN 9,000 9,000
Duluth Health Care Facs. Participating VRDN (b):
Series 1994 E, 4.10% (MBIA Insured)
(Liquidity Facility Norwest Bank) 1,575 1,575
Series 1994 F, 4.10% (Connie Lee Insured)
(Liquidity Facility Norwest Bank) 1,890 1,890
Duluth Hosp. Facs Rev. (Miller-Dwan Med. Ctr.) Series 1989 A,
3.90%, LOC Citibank, VRDN 8,500 8,500
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MINNESOTA - CONTINUED
Eden Prairie Multi-Family Hsg. Rev. Rfdg.
(Park at City West Apts. Proj.) Series 1990, 4.10%,
LOC Sumitomo Bank, VRDN $ 14,905 $ 14,905
Maplewood Multi-Family Hsg. Rev. Rfdg. (Silver Ridge Proj.)
Series 1993, 4.10%,
LOC Federal Home Loan Bank, VRDN 2,500 2,500
Minneapolis Commty. Dev. Agcy. Rev. Rfdg. (Riverplace Proj.
Pinnacle Apts.) 4.15%, LOC Sumitomo Bank, VRDN 14,200 14,200
Minneapolis Hsg. Dev. Rfdg. Rev. (One Ten Grant Proj.)
Series 1989, 3.80%, LOC First Bank of Minnesota, VRDN 8,000 8,000
Olmsted County (COP Human Svcs. Campus
Infrastructure Proj.) 4.05%, LOC Sanwa Bank, VRDN 18,605 18,605
Osseo Independent School Dist. Participating VRDN (b):
Series 1994 H, 4.10% (FGIC Insured)
(Liquidity Facility Norwest Bank) 1,325 1,325
Series 1994 S, 4.10%,
(Liquidity Facility First Bank National of Minnesota) 1,000 1,000
Richfield Independent School Dist. Participating VRDN, 4.10%
(FGIC Insured) (Liquidity Facility First Bank of
Minnesota) (b) 1,365 1,365
Rochester Health Care Facs. Participating VRDN, 4.10%
(Liquidity Facility Norwest Bank) (b) 1,260 1,260
Rochester Health Care Facs. Rev. (Mayo Foundation Proj.)
Series 1985 C, 4.10% (Liquidity Facility Credit Suisse)
VRDN 2,000 2,000
Rochester Ind. Dev. Rfdg. Rev. (Seneca Foods Corp.)
Series 1992, 4%, LOC ABN-AMRO Bank, VRDN 4,675 4,675
St. Louis Park Health Care Facs. Participating VRDN,
Series 1994 U, 4.10%
(Liquidity Facility Norwest Bank) (b) 7,700 7,700
St. Paul Port Auth. Tax Increment Bonds (Westgate Office &
Ind. Ctr. Proj.) Series 1991, 3.90%,
LOC First Bank of Minnesota, VRDN 2,900 2,900
University of Minnesota Series 1991 A, 3.80 12/8/95, CP 10,000 10,000
Western Minnesota Muni. Pwr. Agcy. Participating VRDN,
Series BT-10, 4.20% (BPA Bankers Trust Co.) (b) 11,613 11,613
134,713
MISSISSIPPI - 0.3%
Desoto County Ind. Dev. Rev. (Flavorite Labs Proj.)
Series 1991 A, 4.10%, LOC First Tennessee Bank, VRDN 1,200 1,200
Jackson County Port Facs. Rev. Rfdg. (Chevron U.S.A.)
Series 1993, 3.90%, VRDN 2,000 2,000
Mississippi Hosp. Equip. & Facs. Auth. Rev. (Mississippi Baptist
Med. Ctr.) Series 1990, 4%, LOC Sanwa Bank, VRDN 2,300 2,300
Perry County Poll. Cont. Rev. Rfdg.
(Leaf River Forest Prod. Inc. Proj.) 3.875%,
LOC Morgan Guaranty Trust Co., VRDN 7,100 7,100
12,600
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
MISSOURI - 1.3%
Missouri Envir. Impt. & Energy Resources Auth. Poll. Cont.
Rev. Bonds (Union County Elec. Co.) Series 1985 B, 3.45%,
tender 12/5/95, LOC West Deutsche Landesbank $ 8,655 $ 8,655
Missouri State Environmental Impt. & Energy Resources
Auth. Poll. Cont. Rev. (Assoc. Elec. Coop.) Series 1993 M,
3.95% (Nat'l. Rural Coop-CFC Guaranteed) VRDN 6,500 6,500
St. Charles County Ind. Dev. Auth. Rev., VRDN:
(Vanderbilt Apts. Proj.) Series 1990 A, 3.90%,
LOC Citibank 7,950 7,950
(Westchester Apts.) Series 1991, 3.90%, LOC Citibank 5,700 5,700
University of Missouri RAN Series 1995-96,
4.75% 6/28/96 17,000 17,113
45,918
MONTANA - 0.5%
Montana Board of Investments Tax Rev. (Workers Comp. Prog.)
Series 1993, 3.90%, VRDN 5,000 5,000
Montana Gen. Oblig. TRAN 4.50% 6/30/96 12,000 12,058
17,058
NEBRASKA - 0.2%
Nebraska Public Pwr. Dist. Participating VRDN,
Series 1993 C, 4.05% (MBIA Insured)
(Liquidity Facility Merrill Lynch & Co.) (b) 8,600 8,600
NEVADA - 0.1%
Nevada Hsg. Multi Family Hsg. Rev. (Park Vista Apts. Proj.)
Series 1991 A, 4.20%, LOC Sumitomo Bank, VRDN 2,000 2,000
NEW HAMPSHIRE - 0.6%
New Hampshire Higher Ed. & Health Fac. Auth.
(VHA New England Inc.) Series D, 3.85% (AMBAC Insured)
(BPA First National Bank of Chicago) VRDN 1,600 1,600
New Hampshire Hsg. Fin. Auth. Multi-Family Hsg. Rev. Rfdg.
(Nashua-Oxford Proj.) Series 1990, 4.25%
(Continental Casualty Guaranteed) VRDN 16,900 16,900
New Hampshire Ind. Dev. Auth. Resource Recovery Rev. Bonds
(Claremont Co. LP Proj.) Series 1985, 5%, tender 1/1/96
(MBIA Insured) 4,000 4,000
22,500
NEW JERSEY - 1.0%
Cherry Hill Township BAN 5.50% 12/13/95 14,500 14,510
New Jersey Bldg. Auth. Participating VRDN, Series BT-6,
4.20% (BPA Bankers Trust Co.) (b) 12,100 12,100
New Jersey Gen. Oblig. Participating VRDN, Series 943005,
4.02% (Liquidity Facility Citibank) (b) 9,700 9,700
36,310
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW YORK - 1.2%
New York Envir. Fac. Corp. Wtr. Participating VRDN,
Series CR -154, 4.02% (Liquidity Facility Citibank) (b) $ 2,000 $ 2,000
New York Gen Oblig.:
Series 1994 E-4, 3.90%, LOC State Street Bank, VRDN 5,400 5,400
Series 1994 E-6, 3.90% (FGIC Insured) VRDN 2,600 2,600
Series 1995 F-4, 3.95%,
LOC Landesbank Hessen-Thuringen, VRDN 3,800 3,800
RAN Series 1996 B, 4.75% 6/28/96 27,400 27,541
41,341
NORTH CAROLINA - 0.1%
Durham Pub. Impvt. BAN Series 1995 A, 3.90% 2/21/96 2,925 2,928
OKLAHOMA - 0.6%
Holdenville Ind. Auth. Correctional Fac. Rev. Series 1995,
4.05%, LOC First Union National Bank, VRDN 6,850 6,850
Tulsa Ind. Dev. Auth. Univ. Rev. (Univ of Tulsa Proj.) VRDN:
Series A, 4.20%, LOC Fuji Bank 10,000 10,000
Series 1985, 4.20%, LOC Fuji Bank 5,900 5,900
22,750
PENNSYLVANIA - 3.8%
Berks County Ind. Dev. Auth. Ind. Dev. Rev.
(Continental Assurance Co. Proj.) Series 1982,
3.95%, (Continental Casualty Guaranteed) VRDN 6,400 6,400
Delaware County Ind. Dev. Auth. Rev., VRDN:
(Scott Paper Co.):
Series A, 4.15%, LOC Fuji Bank 700 700
Series B, 4.15%, LOC Fuji Bank 6,700 6,700
Series C, 4.15%, LOC Fuji Bank 5,300 5,300
Delaware Valley Reg. Fin. Auth. Rev. Local Govt. Rev., VRDN:
Series 1985 A, 4.05%,
LOC Hong Kong & Shanghai Banking Corp. 6,300 6,300
Series 1985 B, 4.05%, LOC Hong Kong &
Shanghai Banking Corp. 1,500 1,500
Series 1985 C, 4.05%, LOC Hong Kong &
Shanghai Banking Corp. 3,100 3,100
Series 1985 D, 4.05%, LOC Hong Kong &
Shanghai Banking Corp. 5,300 5,300
Series 1986, 4.05%, LOC Hong Kong &
Shanghai Banking Corp. 7,775 7,775
Commonwealth TAN Series 1995-1996, 4.50% 6/28/96 3,000 3,014
Emmaus Gen. Auth. Local Govt. Rev. (Bond Pool Prog.) VRDN:
Series 1989 A-5, 4.20% (Liquidity Facility Fuji Bank) 10,300 10,300
Series 1989 B-11, 4.20% (Liquidity Facility Fuji Bank) 10,000 10,000
Series 1989 C-11, 4.20% (Liquidity Facility Fuji Bank) 11,000 11,000
Pennsylvania Gen. Oblig. Participating VRDN, Series 1994 B,
4.07% (Liquidity Facility Citibank) (b) 27,400 27,400
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
PENNSYLVANIA - CONTINUED
Philadelphia Ind. Dev. Auth. Rev., VRDN :
Rfdg. (Paper Corp. of America Proj.) 3.95%,
LOC SunTrust Bank VRDN $ 3,565 $ 3,565
(Tom James County Proj.)
Series 1991, 3.95%, LOC Third Nat'l. Bank, VRDN 3,175 3,175
Philadelphia School Dist. TRAN Series 1995-96,
4.50% 6/28/96 15,200 15,253
Quakertown Hosp. Auth. Rev. (Pooled Fing. Prog.)
Series 1985 A, 3.75%, LOC PNC Bank, VRDN 4,900 4,900
Sayre Health Care Fac. Auth. Hosp. Rev. (VHA of Pennsylvania)
Series 1985 A, 3.85% (AMBAC Insured)
(BPA First Nat'l. Bank of Chicago) VRDN 4,825 4,825
136,507
RHODE ISLAND - 0.4%
Rhode Island TAN 4.50% 6/28/96,
LOC Union Bank of Switzerland 14,000 14,072
SOUTH CAROLINA - 3.0%
Kershaw County Ind. Dev. Rev. Rfdg., (New South Proj.)
Series 1992, 4.05%, LOC NationsBank, VRDN 9,000 9,000
South Carolina Jobs Econ. Dev. Auth. Healthcare Facs. Rev.
(The Methodist Home Proj.) Series 1994,
4.05%, LOC NationsBank, VRDN 4,000 4,000
South Carolina Pub. Svc. Auth. Rev., CP:
3.85% 11/14/95 14,795 14,795
3.75% 11/16/95 6,200 6,200
3.80% 11/17/95 7,600 7,600
3.75% 11/27/95 11,300 11,300
3.75% 11/28/95 13,120 13,120
3.70% 12/15/95 10,821 10,821
3.80% 1/24/96 16,192 16,192
3.80% 2/9/96 15,392 15,392
108,420
TENNESSEE - 4.5%
Clarksville Pub. Bldg. Auth. Pooled Fing. Rev., VRDN:
Series 1994, 4% LOC NationsBank 22,800 22,800
Series 1995, 4%, LOC NationsBank 12,000 12,000
Memphis Ctr. Rev. Fin. Corp. (Arbors of Harbor Town Project)
Series 1990, 3.80% (Northwestern Mutual
Guaranteed) VRDN 16,250 16,250
Metropolitan Govt. Nashville & Davidson County Gen. Oblig.
Participating VRDN, Series CR-169, 4.02%
(Liquidity Facility Citibank) (b) 11,000 11,000
Metropolitan Govt. Nashville & Davidson County
Health & Ed. Rev. (Mckendree Village Inc. Proj.) 3.95%,
LOC Third Nat'l. Bank, VRDN 13,285 13,285
Metropolitan Govt. Nashville & Davidson County Health
Facs. Rev. (Richland Place Inc. Proj.) 3.90%,
LOC Societe Generale, VRDN 4,600 4,600
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TENNESSEE - CONTINUED
Metropolitan Govt. Nashville and Davidson County Hosp. Rev.
Bonds (Baptist Hosp.) Series 1992, 3.85%, tender 1/11/96
(BPA NationsBank of Georgia) $ 11,700 $ 11,700
Montgomery County Pub. Bldg. Auth. Fing. Rev., VRDN:
Series 1995, 4%, LOC NationsBank 17,000 17,000
4%, LOC NationsBank 15,000 15,000
Nashville & Davidson County Health & Ed. Facs. Board
Multi-Family Hsg. Rev. (Brentwood Oaks Apts.) 3.80%
(Norwestern Mutual Life Insurance Co. Guaranteed) VRDN 7,100 7,100
Nashville & Davidson County Ind. Dev. Board
Multi-Family Hsg. Rev. Rfdg. (Western Hills Apt. Proj.) 4.10%,
LOC Sumitomo Bank, VRDN 7,035 7,035
Nashville & Davidson County Ind. Dev. Board Rev., VRDN:
(Chimney II Oxford Associate), Series 1984 A, 3.95%,
LOC Bank of America 2,450 2,450
(YMCA Proj.) Series 1994, 4%,
LOC NationsBank 6,125 6,125
Sullivan County Ind. Dev. Board Rev. Rfdg., VRDN:
(BC Realty Proj.) Series 1995, 4.10%,
LOC First Tennessee Bank 3,500 3,500
(Executive Park Realty Proj.) Series 1995, 4.10%,
LOC First Tennessee Bank 2,100 2,100
Tennessee Local Dev. Auth. BAN 4.75% 5/31/96 10,300 10,352
162,297
TEXAS - 15.9%
Austin Hsg. Fin. Corp. Multi-Family Hsg. Rev.
(Riverchase Proj.) Series 1985 A, 4.25%,
LOC Household Bank, VRDN 1,600 1,600
Austin Util. Sys. Rev. Series A, 3.75% 11/28/95, CP 6,400 6,400
Bexar County Health Fac. Dev. Corp. (Retirement Commty.
Air Force Village II) Series1985 B, 3.95%,
LOC Rabobank Nederland, VRDN 2,600 2,600
Bexar County Hsg. Fin. Corp. Multi-Family Hsg. Rev. Rfdg.,
VRDN:
(Fountainhead I Proj.) Series 1992 A, 4%
(Continental Casualty Guaranteed) 3,645 3,645
(Fountainhead II Proj.) Series 1992-A, 4%
(Continental Casualty Guaranteed) 8,605 8,605
Brazos River Harbor Navigation Dist. Brazoria County Rev. Bonds
(Dow Chemical Co.) Series 1991, 3.85%, tender 1/9/96 14,100 14,100
Central Waco Dev. Corp. Ind. Dev. Rev.
(HE Butt Grocery Proj.) Series 1992, 4.05%,
LOC Texas Commerce Bank of Houston, VRDN 3,830 3,830
Dallas Area Rapid Transit Sales Tax Rev. Series A, 3.70%
12/19/95, LOC Credit Suisse/ Swiss Bank, CP 10,000 10,000
Dallas Fort Worth Airport Regional Participating VRDN,
Series 95-4301, 4.07% (Liquidity Facility Citibank) 23,400 23,400
Georgetown Higher Ed. Fin. Corp. Rev.
(Southwestern Univ. Proj.) Series 1984, 3.90%,
LOC Chemical Bank, VRDN 5,000 5,000
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
Greater East Higher Ed. Auth. Student Loan Rev. Rfdg. Bonds
Series 1992 A, 3.90%, LOC SLMA, VRDN $ 5,200 $ 5,200
Guadalupe-Blanco River Auth. Ind. Dev. Rev.
(BOC Group Inc. Proj.) Series 1993, 3.95%,
LOC Wachovia Bank, VRDN 3,100 3,100
Gulf Coast Waste Disp. Auth. Poll. Cont. Rev. Rfdg.
(Amoco Oil Co. Proj.) 3.90%, VRDN 1,250 1,250
Harris County Health Fac. Corp. Hosp. Rev. Bonds
(San Jacinto Methodist Hosp.) Series 1987 A, 3.75%,
tender 12/1/95, LOC Morgan Guaranty Trust Co. 9,050 9,050
Harris County Health Facs. Dev. Corp. Rev. Series 1985 A,
4%, LOC Texas Commerce Bank, VRDN 2,700 2,700
Harris County Participating VRDN, Series 1994 E, 4.07%
(Liquidity Facility Citibank) (b) 9,600 9,600
Houston Wtr. & Swr. Sys. Rev., CP:
Series A:
3.90% 11/15/95 (Liquidity Facility Swiss Bank/
Westdeutsche Landesbank) 5,000 5,000
3.95% 11/15/95 (Liquidity Facility Swiss Bank/
Westdeutsche Landesbank) 5,000 5,000
3.95% 11/16/95 (Liquidity Facility Swiss Bank/
Westdeutsche Landesbank) 5,000 5,000
3.90% 11/30/95 (Liquidity Facility Swiss Bank/
Westdeutsche Landesbank) 17,000 17,000
3.95% 11/30/95 (Liquidity Facility Swiss Bank/
Westdeutsche Landesbank) 38,000 38,000
3.80% 12/6/95 (Liquidity Facility Swiss Bank/
Westdeutsche Landesbank) 6,000 6,000
Houston Wtr. Sys. Participating VRDN, Series PW-7, 3.90%
(Liquidity Facility Canadian Imperial Bank) (b) 20,000 20,000
La Porte Independent School District
TRAN 4.392% 8/30/96 (c) 5,000 5,000
Lower Colorado River Auth. Series B, 3.85% 11/29/95
(Liquidity Facility Morgan Guaranty Trust Co.) CP 13,200 13,200
Lufkin Health Facs. Dev. Corp. Hosp. Rev.
(Memorial Med Ctr. of E. Texas Proj.) 4%,
LOC Texas Commerce Bank, VRDN 8,400 8,400
Metro Higher Ed. Auth. Inc. Higher Ed. Rev. (Univ. of Dallas Proj.)
Series 1984, 4%, LOC Mitsubishi Bank, VRDN 2,400 2,400
Nacogdoches Ind. Dev. Auth. Rev. Rfdg. (La Quinta Motor Inns Inc.
Proj.) 4.05%, LOC Nationsbank, VRDN 2,565 2,565
North Central Health Fac. Dev. Corp. Hosp. Rev.
(Presbyterian Med. Ctr. Proj.) Series D, 3.90%
(MBIA Insured) (BPA NationsBank) VRDN 2,500 2,500
San Antonio Elec. & Gas Participating VRDN,
Series BT-38A, 4.15% (BPA Bankers Trust) (b) 5,892 5,892
San Antonio Elec. & Gas Sys., CP:
Series A:
3.80% 11/14/95 8,000 8,000
3.75% 11/15/95 22,000 22,000
3.80% 11/16/95 12,400 12,400
3.75% 11/20/95 5,200 5,200
3.75% 11/21/95 8,000 8,000
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - CONTINUED
San Antonio Wtr. Sys. Series 1992, 3.70% 12/18/95
(Liquidity Facility Credit Suisse) CP $ 9,000 $ 9,000
Silsbee Health Facs. Dev. Corp. Hosp. Rev.
(Silsbee Doctor's Hosp.) Series 1984, 3.95%,
LOC Citibank, VRDN 4,500 4,500
Texas Dept. of Hsg. & Commty. Affairs Participating VRDN,
Series PT-9, 4.05% (Liquidity Facility Dai-Ichi
Kangyo Bank Ltd.) (b) 4,140 4,140
Texas Gen. Oblig.:
TRAN Series 1995 A, 4.75% 8/30/96 126,800 127,623
(Veterans Hsg. Asst. Prog.) Series 1995, 3.75% 13,490 13,490
Texas Health Facs. Dev. Corp. Rev.
(Aces North Texas Pooled Health) Series 1985 B, 4%,
LOC Banque Paribas, VRDN 5,200 5,200
Texas Muni. Pwr. Agcy. Rev.:
BAN 3.75% 11/16/95 (Liquidity Facility Morgan
Guaranty Trust Co.) 16,000 16,000
CP:
3.75% 11/16/95 (Liquidity Facility Bank of America) 12,300 12,300
3.80% 12/11/95 (Liquidity Facility Bank of America) 10,000 10,000
3.70% 12/15/95 (Liquidity Facility Bank of America) 17,000 17,000
Texas Small Bus. Ind. Dev. Corp. Rev. (Pub. Facs. Prog.) 3.95%,
LOC Nat'l. Westminster Bank, VRDN 21,745 21,745
Tyler Health Care Facs. Dev. Corp. Hosp. Rev. Bonds
(Med. Ctr. Reg. Healthcare Proj.) 3.85%, tender 12/15/95,
LOC Banque Paribas 11,000 11,000
Univ. of Texas Fing. Sys. Rev., CP:
Series A:
3.75% 11/28/95 3,064 3,064
3.85% 1/11/96 6,645 6,645
3.80% 2/9/96 5,777 5,777
569,121
UTAH - 0.9%
Intermountain Pwr. Agcy. Pwr. Supply Rev. Bonds Series 1985 F,
3.80% tender 6/17/96 (BPA Bank of America) 20,400 20,400
Provo Multi-Family Rental Hsg. Rev. (Branbury Park Proj.)
Series 1987 A, 4.10%, LOC Dai-Ichi Kangyo Bank,
VRDN 6,500 6,500
Utah County TRAN 4.65% 12/29/95 2,000 2,001
Weber County TRAN, Series 1995 A, 5.25% 12/28/95 5,000 5,003
33,904
VERMONT - 0.1%
Vermont Ed. & Health Bldgs. Fin. Agcy. Hosp. Rev.
(Northeastern Reg. Hosp.) 4%,
LOC Bank of Boston, VRDN 3,000 3,000
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
VIRGINIA - 3.1%
Chesterfield County Ind. Dev. Auth. Poll Cont. Rev. Bonds:
(Virginia Elec. Pwr. Co.):
Series B:
3.80%, tender 11/17/95 $ 5,500 $ 5,500
3.80%, tender 1/10/96 11,335 11,335
3.80%, tender 2/14/96 3,330 3,330
Louisa County Ind. Dev. Auth. Adj. Rate Pooled
Fin. Rev. Series 1995, 4%,
LOC NationsBank of Virginia, VRDN 32,300 32,300
Louisa Ind. Dev. Auth. Poll. Cont. Rev. Bonds:
(Virginia Elec. Pwr. Co. Proj.):
Series 1985, 3.75%, tender 11/28/95
(BPA Bank of New York) 9,790 9,790
Series 1985, 3.70%, tender 12/19/95
(BPA Bank of New York) 15,500 15,500
Series 1985, 3.90%, tender 2/8/96
(BPA Bank of New York) 5,000 5,000
Series 1987, 3.95%, tender 11/7/95 5,100 5,100
Newport News Redev. & Hsg. Auth. Rev.
(Newport-Oxford Proj.) Series 1984, 4%,
LOC Bank of America, VRDN 3,200 3,200
Suffolk Redev. & Hsg. Auth. Multi-Family Rental Hsg. Rev.
(Windsor at Potomac Vista Proj.) 4%,
LOC NationsBank of Virginia, VRDN 14,169 14,169
York County Ind. Dev. Auth. (Philip Morris Co. Proj.)
Series 1991, 3.95%, VRDN 4,000 4,000
109,224
WASHINGTON - 3.9%
Washington Gen. Oblig. Participating VRDN (b):
Series 1993 B, 4.07% (Liquidity Facility Citibank) 13,300 13,300
Series 1995 A, 4% (Liquidity Facility Internationale
Nederlanden Bank) 8,900 8,900
Series BT-12, 4.15% (BPA Bankers Trust Co.) (b) 20,985 20,985
Series BT-101, 4.15% (BPA Bankers Trust Co.) 12,065 12,065
Series BT-114,4.15% (BPA Bankers Trust Co.) 9,005 9,005
Series SG-37, 4.05% (Liquidity Facility Societe Generale) 11,080 11,080
Washington Pub. Pwr. Supply Participating VRDN,
Series 94 B, 4.07% (Liquidity Facility Citibank) (b) 20,600 20,600
Washington Pub. Pwr. Supply Sys. Bonds
(Nuclear Pwr. Proj. 1) Series A, 4.20% 7/1/96 3,400 3,404
Washington Pub. Pwr. Supply Sys. Elec. Rev. Rfdg.
Series 1993-3A1, 4%, LOC Bank of America, VRDN 3,200 3,200
Washington Pub. Pwr. Supply Sys. Rev. Rfdg.
(Nuclear Proj. #1) Series 1993-1A1, 3.90%,
LOC Bank of America, VRDN 38,170 38,170
140,709
MUNICIPAL SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
WEST VIRGINIA - 0.0%
West Virginia Hosp. Fin. Auth. Rev. (VHA Mid-Atlantic States)
Series 1985 C, 3.85% (BPA First Nat'l. Bank of Chicago)
(AMBAC Insured) VRDN $ 1,800 $ 1,800
WISCONSIN - 1.3%
Augusta Ind. Dev. Rev. Rfdg. (Ball Corp.) Series 1993, 4%,
LOC PNC Bank, VRDN 3,100 3,100
Kenosha Unified School Dist. TRAN 4.50% 9/6/96 10,500 10,539
Menomonee Falls School Dist. TRAN 4.25% 8/30/96 3,200 3,208
Milwaukee Gen. Oblig. Participating VRDN,
Series 1993 R, 4.07%
(Liquidity Facility Citibank) (b) 18,400 18,400
Milwaukee Redev. Auth. Dev. Rev.
(Bradley Ctr. Parking Facs. Proj.) Series 1986, 3.90%,
LOC Nat'l. Westminster Bank, VRDN 900 900
New Berlin School Dist. TRAN 4.25% 8/22/96 3,500 3,509
Wauwatosa Hsg. Auth. Rfdg. Rev. (San Camillo Inc.)
Series 1995 B, 4%, LOC Firststar Bank, VRDN 7,500 7,500
47,156
MULTIPLE STATES - 1.1%
Clipper Participating VRDN, Series 1993-1A, 3.98%
(Liquidity Facility State Street Bank & Trust Co.) (b) 36,000 36,000
Participating VRDN, Series 1990 A,
3.75%, LOC NationsBank (b) 1,870 1,870
37,870
TOTAL INVESTMENTS - 100% $ 3,573,427
Total Cost for Income Tax Purposes $ 3,573,427
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
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.
(c) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION
ACQUISITION COST
SECURITY DATE (000S)
La Porte ISD TRAN 9/1/95 $ 5,000
INCOME TAX INFORMATION
At October 31, 1995 the fund had a capital loss carryforward of
approximately $117,000 which will expire on October 31, 1997.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) OCTOBER 31, 1995
1.ASSETS 2. 3.
4.Investment in securities, at value - See accompanying 5. $ 3,573,427
schedule
6.Cash 7. 15,439
8.Receivable for investments sold 9. 9,706
10.Interest receivable 11. 24,763
12. 13.TOTAL ASSETS 14. 3,623,335
15.LIABILITIES 16. 17.
18.Payable for investments purchased $ 15,450 19.
20.Distributions payable 466 21.
22.Accrued management fee 897 23.
24.Other payables and accrued expenses 730 25.
26. 27.TOTAL LIABILITIES 28. 17,543
29.30.NET ASSETS 31. $ 3,605,792
32.Net Assets consist of: 33. 34.
35.Paid in capital 36. $ 3,605,902
37.Accumulated net realized gain (loss) on investments 38. (110)
39.40.NET ASSETS, for 3,605,902 shares outstanding 41. $ 3,605,792
42.43.NET ASSET VALUE, offering price and redemption 44. $1.00
price per share ($3,605,792 (divided by) 3,605,902 shares)
</TABLE>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED OCTOBER 31, 1995
45.46.INTEREST INCOME 47. $ 142,418
48.EXPENSES 49. 50.
51.Management fee $ 10,988 52.
53.Transfer agent, accounting and custodian fees 6,834 54.
and expenses
55.Non-interested trustees' compensation 2 56.
57.Registration fees 139 58.
59.Audit 78 60.
61.Legal 42 62.
63.Miscellaneous 29 64.
65. 66.TOTAL EXPENSES 67. 18,112
68.69.NET INTEREST INCOME 70. 124,306
71.72.NET REALIZED GAIN (LOSS) ON INVESTMENTS 73. 439
74.75.NET INCREASE IN NET ASSETS RESULTING FROM 76. $ 124,745
OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994
77.INCREASE (DECREASE) IN NET ASSETS
78.Operations $ 124,306 $ 78,237
Net interest income
79. Net realized gain (loss) 439 229
80. Increase (decrease) in net unrealized gain from - (35)
accretion of market discount
81. 82.NET INCREASE (DECREASE) IN NET ASSETS 124,745 78,431
RESULTING FROM OPERATIONS
83.Distributions to shareholders from net interest (124,306) (78,237)
income
84.Share transactions at net asset value of $1.00 per 10,129,110 10,167,911
share
Proceeds from sales of shares
85. Reinvestment of distributions from net interest 117,967 73,176
income
86. Cost of shares redeemed (10,136,278) (9,682,238)
87.88. 110,799 558,849
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS
89. 90.TOTAL INCREASE (DECREASE) IN NET ASSETS 111,238 559,043
91.NET ASSETS 92. 93.
94. Beginning of period 3,494,554 2,935,511
95. End of period $ 3,605,792 $ 3,494,554
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
96. YEARS ENDED OCTOBER 31,
97. 1995 1994 1993 1992 1991
98.SELECTED PER-SHARE DATA
99.Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
100.Income from Investment .034 .023 .022 .031 .046
Operations
Net interest income
101.Less Distributions (.034) (.023) (.022) (.031) (.046)
From net interest income
102.Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
103.TOTAL RETURN 3.48% 2.33% 2.23% 3.14% 4.66%
104.RATIOS AND SUPPLEMENTAL
DATA
105.Net assets, end of period $ 3,606 $ 3,495 $ 2,936 $ 2,725 $ 2,721
(in millions)
106.Ratio of expenses to .50% .52% .49% .48% .45%
average
net assets
107.Ratio of net interest income 3.43% 2.31% 2.21% 3.11% 4.55%
to average net assets
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995
1. 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 substantially 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. OPERATING POLICIES.
RESTRICTED SECURITIES. The fund is permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
restricted securities (excluding 144A issues) amounted to $5,000,000 or
0.1% of net assets.
3. 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 .1200% to
.3700%. In the event that these rates were lower than the contractual rates
in effect during the period, FMR voluntarily
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
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 .30% of
average net assets.
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. UMB Bank, n.a. (UMB) is the custodian
and transfer and shareholder servicing agent for the fund. UMB 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. During the period
November 1, 1994 to December 31, 1994, the fund paid fees based on the
type, size, number of accounts and the number of transactions made by
shareholders. Effective January 1, 1995, the Board of Trustees approved a
revised transfer agent contract pursuant to which the fund pays account
fees and asset-based fees that vary according to account size and type of
account. 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
$6,209,000 and $410,000, 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 $599,000.
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, 1995, 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, 1995 by
correspondence with the custodian and brokers, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
Dallas, Texas
November 28, 1995
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)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
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OVERNIGHT EXPRESS
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OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
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Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
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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
6300 Canoga Avenue
Woodland Hills, 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
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
56 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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, 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
2701 Drexel Drive
Houston, TX
1010 Lamar Street
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
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, 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
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB 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
SPARTAN(registered trademark)
(registered trademark)
NEW JERSEY
MUNICIPAL
MONEY MARKET
PORTFOLIO
ANNUAL REPORT
OCTOBER 31, 1995
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 16 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 20 Notes to the financial statements.
REPORT OF INDEPENDENT
ACCOUNTANTS 22 The auditors' 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 RISKS, INCLUDING 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:
Although the markets have been fairly positive this year, no one can
predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was almost
ideal.
These market ups and downs are a normal part of investing, and there are
some basic principles that can help investors in every type of market.
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
reimbursed the fund for certain expenses during the periods shown, the
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan New Jersey Municipal
Money Market Fund 3.64% 17.42% 20.84%
Average New Jersey Tax-Free
Money Market Fund 3.21% 16.25% n/a
Consumer Price Index 2.81% 15.13% 19.24%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a specific period - in this case, one year, five years, 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, the value of your investment would
be $1,050. To measure how the fund's performance stacked up against its
peers, you can compare it to the average New Jersey tax-free money market
fund, which reflects the performance of 11 New Jersey tax-free money market
funds with similar objectives tracked by IBC/Donoghue over the past six
months. Comparing the fund's performance to the consumer price index (CPI)
helps show how your fund did compared to inflation. (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, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan New Jersey Municipal
Money Market Fund 3.64% 3.26% 3.50%
Average New Jersey Tax-Free
Money Market Fund 3.21% 3.05% n/a
Consumer Price Index 2.81% 2.86% 3.25%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
10/31/94 1/30/95 4/24/95 7/31/95 10/30/95
Spartan New Jersey 3.09% 3.47% 3.92% 3.55% 3.55%
Municipal Money Market
If Fidelity had not 2.89% 3.27% 3.72% 3.37% 3.37%
reimbursed certain fund
expenses
Average New Jersey 2.72% 2.98% 3.54% 3.14% 3.16%
Tax-Free Money Market
Fund
Spartan New Jersey 5.17% 5.80% 6.56% 5.94% 5.94%
Municipal Money Market -
Tax-equivalent
If Fidelity had not 4.83% 5.47% 6.22% 5.64% 5.64%
reimbursed certain fund
expenses
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 fund expenses during the periods shown,
the yields would have been lower. You can compare these yields to the
average New Jersey tax-free money market fund as tracked by IBC/Donoghue.
Or you can look at the fund's tax-equivalent yield, which is based on a
combined effective 1995 federal and state income tax rate of 40.21%. A
portion of the fund's income may be subject to the alternative minimum tax.
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 Jeff Parker, Portfolio Manager of Spartan
New Jersey Municipal Money
Market Portfolio
Q. JEFF, HOW HAVE INVESTMENT CONDITIONS CHANGED DURING THE PAST YEAR?
A. A year ago the economy was expanding rapidly and the Federal Reserve was
doing its best to temper growth and stave off inflation. In November 1994
and again in February 1995, the Fed raised the federal funds rate,
completing a string of seven rate increases dating back to February 1994.
Then, early in 1995, signs began appearing that suggested Fed monetary
policy was having the desired effect, and growth was slowing. That led to
predictions that the next Fed move would be a credit ease, and short-term
rates began falling in anticipation. As expected, the Fed did ease in July,
cutting the federal funds rate one-quarter percentage point. Since then,
the economy has been extremely difficult to read, and the Fed has remained
on the sidelines. It now appears that the growth rate in the gross domestic
product rebounded sharply during the third quarter of 1995 after an
essentially flat second quarter. But throughout the summer and into the
fall, signs of economic vibrancy alternated with signs of sluggishness.
Perhaps the one constant during the year was inflation, which remained
consistently low.
Q. HOW DID YOU COPE WITH CHANGING CONDITIONS?
A. When the period began, the fund's average maturity was 57 days. Scott
Orr, who managed the fund until I took over in June, lengthened
aggressively beginning late in 1994 and was able to lock in attractive
yields while short-term rates were declining. Entering the annual summer
borrowing season, the fund's average maturity was back down to 55 days.
That gave me the flexibility I needed to take advantage of abundant new
supplies and move the fund back out close to 70 days by the end of June, in
time for the Fed rate cut. The fund has been in a holding pattern since
then, finishing the period at 72 days. I have added more variable rate
demand notes (VRDN) in recent months as increased supplies have made them
more attractive than fixed-rate securities. VRDNs totaled about 52% of the
fund's assets at the end of October, compared to 45% this past June.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on October 31, 1995, was 3.55%, compared to
3.09% a year ago. The latest yield was the equivalent of a 5.94% taxable
yield for investors in the 40.21% combined federal and state tax bracket.
The fund had a total return for the year of 3.64%, which beat the average
total return of 3.21% for all New Jersey tax-free money market funds,
according to IBC/Donoghue.
Q. WHAT CAN WE EXPECT GOING FORWARD?
A. Many market participants believe the Fed's next move will be to lower
rates again, possibly before year end. A key variable may be the budget
debate in Congress. A balanced budget agreement would necessitate steep
cuts in federal spending, which the Fed, in turn, might seek to offset with
a rate cut. But that scenario is by no means certain. Rather than make a
big bet on a rate cut, I think it probably makes more sense to keep the
fund's average maturity about where it is, around 70 days. That way I have
a choice: to pull back slightly if rates fall, or extend a little if the
market cheapens. The key is maintaining flexibility until the market
regains a sense of direction.
FUND FACTS
GOAL: high current tax-free
income while maintaining
share price stability by
investing in high-quality,
short-term New Jersey
municipal money market
securities
START DATE: May 1, 1990
SIZE: as October 31, 1995,
more than $469 million
MANAGER: Jeff Parker, since
June, 1995; Fidelity
Connecticut Municipal Money
Market,
Fidelity Michigan Municipal
Money Market, Fidelity New
Jersey Tax-Free Money
Market, Spartan Connecticut
Municipal Money Market,
since June 1995; joined
Fidelity in 1991
(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,
usually 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
10/31/95 4/30/95 10/31/94
0 - 30 63 70 62
31 - 90 13 13 17
91 - 180 5 7 9
181 - 397 19 10 12
WEIGHTED AVERAGE MATURITY
10/31/95 4/30/95 10/31/94
Spartan New Jersey
Municipal Money Market
Fund 72 days 50 days 57 days
Average New Jersey
Tax-Free Money Market
Fund* 61 days 43 days 60 days
ASSET ALLOCATION
AS OF OCTOBER 31, 1995 AS OF APRIL 30, 1995
Row: 1, Col: 1, Value: 52.0
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 31.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 1, Value: 48.0
Row: 1, Col: 2, Value: 18.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 30.0
Row: 1, Col: 5, Value: 2.0
Variable rate
demand notes
(VRDNs) 52%
Commercial
paper 14%
Tender bonds 3%
Municipal
notes 31%
Other 0%
Variable rate
demand notes
(VRDNs) 48%
Commercial
paper 18%
Tender bonds 3%
Municipal
notes 30%
Other 1%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS OCTOBER 31, 1995
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
ARIZONA - 0.1%
Coconino County Poll. Cont. Corp. Poll. Cont. Rev.
(Arizona Pub. Svc. Co. - Navajo Proj.) Series 1994 A,
4.10%, LOC Bank of America, VRDN (b) $ 300,000 $ 300,000
NEW JERSEY - 77.3%
Allentown BAN 4.22% 5/21/96 800,000 800,293
Atlantic County Impt. Auth. Rev. (Pooled Gov't. Loan
Prog.) 3.75%, LOC Marine Midland Bank, VRDN 200,000 200,000
Bernards Township Swr. Auth. Swr. Rev. Rfdg. Bonds,
Series 1985, 5.35%, tender 12/15/95
(BPA Marine Midland Bank) 2,500,000 2,500,000
Bloomfield Township BAN 3.81% 6/7/96 2,000,000 2,000,228
Burlington County BAN 5.50% 12/15/95 2,600,000 2,601,490
Caldwell BAN 4.25% 6/7/96 1,500,000 1,504,735
Chatham Township BAN 4.31% 4/19/96 1,231,000 1,231,320
Chester Township BAN 4.50% 1/11/96 861,000 861,646
Clark Township BAN 3.85% 12/22/95 561,392 561,468
Clifton Board of Ed. BAN 4.25% 7/12/96 2,500,000 2,508,356
Cranbury Township BAN 4.50% 3/15/96 1,400,000 1,401,990
Cranford Township BAN 4.25% 3/22/96 500,000 501,030
Englewood Ban 3.78% 7/18/96 3,500,000 3,500,698
Essex County Impt. Auth. Rev. (Pooled Gov't Loan Prog.)
VRDN:
Series 1985, 3.75%, LOC Banco de Santander 2,000,000 2,000,000
Series 1986, 3.75%, LOC Banco de Santander 1,800,000 1,800,000
Florham Park BAN 4.75% 11/9/95 1,300,000 1,300,068
Fort Lee BAN 4.33% 5/3/96 1,500,000 1,500,212
Franklin Township BAN 4.125% 8/23/96 3,067,900 3,072,776
Freehold Township BAN 3.95% 6/25/96 1,280,000 1,280,078
Gloucester County Ind. Poll. Cont. Fin. Auth. Rev. Rfdg.,
VRDN:
(Mobil Oil Refining) Series 1993 A, 3.65% 3,800,000 3,800,000
(Monsanto Proj.) Series 1992, 3.80% 1,100,000 1,100,000
Hightstown BAN 5.18% 12/7/95 577,000 577,043
Hillside BAN 4.13% 5/22/96 2,000,000 2,000,848
Hudson County BAN 4.375% 10/10/96 10,500,000 10,531,716
Hudson County Impt. Auth. Rev. (Essential Purp. Pooled
Gov't. Loan Prog.) Series 1986, 3.75%
LOC Hong Kong & Shanghai Banking Corp, VRDN 33,460,000 33,460,000
Maplewood Township BAN 4% 11/17/95 1,818,150 1,818,344
Margate BAN 4.25% 3/25/96 1,500,000 1,502,334
Mercer County Gen. Oblig. Rev. 5% 9/1/96 1,000,000 1,009,356
Mercer County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
Series 1985, 3.60%, LOC Credit Suisse Bank, VRDN 900,000 900,000
Metuchen BAN 5% 12/19/95 1,089,823 1,090,651
Middlesex County BAN 3.625% 6/27/96 10,000,000 10,001,571
Mine Hill Township BAN 3.97% 8/2/96 610,000 610,175
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW JERSEY - CONTINUED
Montclair Township BAN 4% 6/28/96 $ 783,000 $ 784,232
Montgomery Township BAN 4.32% 4/26/96 700,000 700,055
Montgomery Township Board of Ed. BAN 4.25% 2/1/96 2,500,000 2,502,150
Morris Township BAN 4.50% 5/17/96 3,727,646 3,735,392
Morristown BAN 4.25% 5/24/96 1,600,000 1,603,945
New Jersey Bldg. Auth. Participating VRDN, Series BT-6,
4.20% (BPA Bankers Trust Co.) (c) 2,392,000 2,392,000
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN:
Rfdg. (RJB Associates 1983 Proj.)
3.95%, LOC PNC Bank 500,000 500,000
(80 Carter Drive Assoc. Proj.) Series 1984, 4.20%,
LOC Marine Midland Bank 436,000 436,000
(Arden Group) Series 1989 BB, 3.80%,
LOC Barclays Bank (b) 1,550,000 1,550,000
(Composite Issue):
Series 1989 B, 3.80%, LOC Barclays Bank (b) 500,000 500,000
(Alesi Graphics Inc.) Series 1989 AA, 3.80%,
LOC Barclays Bank (b) 700,000 700,000
(Ellison School Inc.) Series 1989 KK, 3.70%,
LOC Barclays Bank 550,000 550,000
(Danic Urban Renewal Co. Proj.) Series 1985, 3.75%,
LOC Marine Midland Bank 1,700,000 1,700,000
(Dial Realty) Series 1988 L, 3.80%,
LOC Barclays Bank (b) 2,450,000 2,450,000
(Fieldstone Corp.) Series 1988 K, 3.80%
LOC Barclays Bank (b) 1,200,000 1,200,000
(Guttenplan's Bakery) Series 1989 G, 3.80%
LOC Barclays Bank (b) 2,650,000 2,650,000
(Herzel Mor Corp.) Series 1989 L, 3.80%,
LOC Barclays Bank (b) 550,000 550,000
(Lamart Corporation) Series 1989 JJ, 3.80%,
LOC Barclays Bank (b) 700,000 700,000
(PVC Container Corp.) Series 1987 D, 4.10%,
LOC Nat'l. Westminster Bank (b) 2,365,000 2,365,000
(Pictorial Offset Corp.) Series 1989 H, 3.80%,
LOC Barclays Bank (b) 1,600,000 1,600,000
(Recycle Inc. Proj.) Series 1995, 4.10%,
LOC Nat'l. Westminster Bank (b) 5,500,000 5,500,000
(Russ Berrie & Co. Inc.) 3.65%,
LOC Bank of New York 700,000 700,000
(The Nash Group 85 Proj.) Series 1986, 3.65%,
LOC Chemical Bank (b) 570,000 570,000
New Jersey Econ. Dev. Auth. Econ. Growth Rev., VRDN:
(Eastern Silk) Second Series D2, 3.85%,
LOC Banque Nat'l. de Paris (b) 1,490,000 1,490,000
(Richard L Tauber Issue) Series 93 B-1, 3.75%,
LOC Nat'l. Westminster Bank (b) 3,820,000 3,820,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Econ. Growth Rev., VRDN - continued
Series H, 3.85%, LOC Nat'l. Westminster Bank (b) $ 950,000 $ 950,000
Series E-1, 3.85%, LOC Nat'l Westminster Bank 1,995,000 1,995,000
New Jersey Econ. Dev. Auth. First Mtg. Rev., VRDN:
(Fellowship Village Inc. Proj.) Series 1994 B, 3.75%,
LOC Banque Paribas 8,500,000 8,500,000 (Franciscan Oaks Proj.) Series
1992 B, 3.85%,
LOC Bank of Scotland 1,200,000 1,200,000
New Jersey Econ. Dev. Auth. Ind. & Econ. Dev. Rev.
(Block Drug Corp.) Series A, 3.95%,
LOC SunTrust Bank, VRDN 715,000 715,000
New Jersey Econ. Dev. Auth. Ind. Dev. Rev.
(National Refrigerant) 4.25%, LOC Corestate,
VRDN (b) 1,280,000 1,280,000
New Jersey Econ Dev. Auth. Rev. (E. P. Henry Corp. Proj.)
4%, LOC New Jersey Nat'l. Bank, VRDN (b) 1,305,000 1,305,000
New Jersey Econ. Dev. Auth. Rev. Bonds (b):
(Chambers Cogeneration Proj.) Series 1991:
3.70%, tender 11/15/95, LOC Swiss Bank 3,500,000 3,500,000
3.75%, tender 11/16/95, LOC Swiss Bank 4,000,000 4,000,000
3.75%, tender 11/17/95, LOC Swiss Bank 4,500,000 4,500,000
3.70%, tender 1/11/96, LOC Swiss Bank 3,000,000 3,000,000
3.70%, tender 1/26/96, LOC Swiss Bank 5,000,000 5,000,000
(Keystone Proj.) Series 1992:
3.75%, tender 12/11/95,
LOC Union Bank of Switzerland 4,860,000 4,860,000
3.80%, tender 1/26/96,
LOC Union Bank of Switzerland 12,700,000 12,700,000
(Morris Hall/St. Lawrence Inc.) Series 1993, 4.75%,
tender 11/1/95, LOC New Jersey Nat'l. Bank 2,900,000 2,900,000
New Jersey Edl. Facs. Auth. Rev. (Princeton Univ.)
Series 1995 C, 4.50% 7/1/96 1,000,000 1,004,174
New Jersey Gen. Oblig. Participating VRDN: (c)
Series BT-104, 4.10%
(Liquidity Facility Bankers Trust Co.) 7,785,000 7,785,000
Series MGT-21, 3.90%
(Liquidity Facility Morgan Guaranty Trust Co.) 7,000,000 7,000,000
Series 9, 3.90%
(Liquidity Facility Morgan Guaranty Trust Co.) 7,125,000 7,125,000
Series 1995-CB1, 3.88%
(Liquidity Facility Chemical Bank) 5,000,000 5,000,000
New Jersey Health Care Facs. Fin. Auth. Rev.
(Cap. Asset Fin. Prog.) Series 1985 B, 3.60%,
LOC Chemical Bank, VRDN 1,500,000 1,500,000
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN (c):
Series 1994 C-3003, 4.17% (MBIA Insured)
(Liquidity Facility Citibank) 6,200,000 6,200,000
Series 1994 C-3004, 4.02% (MBIA Insured)
(Liquidity Facility Citibank) 4,800,000 4,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW JERSEY - CONTINUED
New Jersey Sports and Exposition Auth. Rev.
Series 1992 C, 3.60%, (MBIA Insured)
(BPA Industrial Bank of Japan), VRDN $ 10,040,000 $ 10,040,000
New Jersey Turnpike Auth. Turnpike Rev., Series 1991 D,
3.60% (FGIC Insured) (LOC Societe Generale), VRDN 26,800,000 26,800,000
North Brunswick Township BAN 4.125% 8/30/96 5,000,000 5,006,540
Ocean County BAN 4% 6/28/96 6,000,000 6,010,415
Parsippany-Troy Hills BAN 4.625% 5/9/96 2,600,000 2,604,845
Passaic County BAN:
6% 11/22/95 3,247,000 3,247,886
4.46% 4/5/96 1,500,000 1,500,364
5% 4/5/96 9,100,000 9,121,616
4% 6/27/96 7,547,000 7,560,926
4.125% 9/27/96 500,000 500,821
4.25% 9/27/96 2,600,000 2,607,899
Passaic County Util. Auth. BAN (Solid Waste Sys. Proj.):
Series 1994 B, 4.625%, 11/9/95 (MBIA Insured) 6,350,000 6,350,000
Series 1995 B, 3.90% 10/4/96 (MBIA Insured) 6,000,000 5,999,944
Princeton BAN 3.58% 6/14/96 1,000,000 1,000,174
Randolph Township BAN 3.71% 6/21/96 2,124,000 2,123,470
Roselle Park BAN 4.25% 10/17/96 1,292,000 1,296,163
Salem County Ind. Poll. Cont. Fing. Auth. Poll. Cont. Rev. Bonds:
(Philadelphia Elec. Co.) Series 1993 A (b):
3.80%, tender 12/14/95,
LOC Toronto Dominion Bank 2,600,000 2,600,000
3.70%, tender 1/23/96,
LOC Toronto Dominion Bank 2,000,000 2,000,000
Sea Isle City BAN 3.99% 1/26/96 1,300,000 1,300,265
Somerset County Ind. Poll. Cont. Auth. Rev.
(Minnesota Mining & Manufacturing 3M)
3.80%, VRDN 100,000 100,000
South Brunswick TAN 5.25% 1/3/96 2,500,000 2,502,684
South Orange Maplewood School Dist. BAN 3.97%
11/30/95 600,000 600,123
Sparta Township BAN 4% 6/14/96 900,000 902,252
Upper Freehold Regional School Dist. BAN 5.625%
2/1/96 3,000,000 3,003,405
Verona BAN 4% 5/22/96 2,300,000 2,303,693
Washington Township BAN 5.50% 12/15/95 3,900,000 3,901,365
West Milford Township BAN 4% 1/26/96 1,800,000 1,800,613
West Orange BAN:
4.75% 1/4/96 1,500,000 1,501,362
4% 3/12/96 1,000,000 1,000,875
Westwood BAN 4.25% 8/20/96 4,550,000 4,560,483
Willingboro BAN 5.25% 11/22/95 1,200,000 1,200,382
358,644,939
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
NEW YORK & NEW JERSEY - 14.1%
New York & New Jersey Port. Auth. Participating VRDN,
Series PA-67, 3.95%
(Liquidity Facility Merrill Lynch & Co.) (c) $ 2,080,000 $ 2,080,000
New York & New Jersey Port. Auth. Rev.:
Series 1991, 4.021%, VRDN (b) 6,400,000 6,400,000
Series 1992, 3.775%, VRDN 6,900,000 6,900,000
Series 1995, 3.775%, VRDN (b) 10,500,000 10,500,000
Series 1995-1, 3.85%, VRDN 5,000,000 5,000,000
Series A, CP (b):
3.45% 11/16/95 2,630,000 2,630,000
3.80% 11/29/95 755,000 755,000
3.65% 12/1/95 1,690,000 1,690,000
3.75% 12/12/95 3,535,000 3,535,000
3.70% 12/15/95 3,700,000 3,700,000
3.70% 12/15/95 825,000 825,000
New York & New Jersey Port Auth. Spl. Proj. Rev.
(KIAC Partners Proj.) Series 3, 3.80%,
LOC Deutsche Bank, VRDN (b) 18,500,000 18,500,000
New York & New Jersey Versatile Structure Gen. Oblig.,
VRDN:
3.60% (BPA Morgan Guaranty Trust Co.) 1,400,000 1,400,000
Series 3, 3.70%, LOC Morgan Guaranty Trust Co. 1,600,000 1,600,000
65,515,000
PUERTO RICO - 7.4%
Puerto Rico Commonwealth Participating VRDN, (c):
Series 1995, 3.92% (MBIA Insured)
(Liquidity Facility Bankers Trust) 5,000,000 5,000,000
Series BT-165, 3.92% (Liquidity Facility Bankers Trust) 5,814,000
5,814,000
Series PT-63, 3.85%,
(Liquidity Facility Bayerische Hypotheken) 2,900,000 2,900,000
Puerto Rico Pub. Bldg. Auth. Participating VRDN,
Series PA-106, 3.80% (AMBAC Insured)
(Liquidity Facility Merrill Lynch & Co.) (c) 3,905,000 3,905,000
Puerto Rico Hsg. & Fin. Corp. Tender Option Bonds
Series 1990 I, 3.85%, tender 11/15/95 (Ambac Insured)
(Liquidity Facility Citibank) 7,585,000 7,585,000
Puerto Rico Dev. Bank, CP:
3.75% 11/7/95 6,000,000 6,000,000
3.75% 11/9/95 1,000,000 1,000,000
3.75% 12/12/95 1,900,000 1,900,000
34,104,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
TEXAS - 0.6%
Brazos River Auth. Poll. Cont. Rev. Rfdg.
(Texas Util. Elect.) Series 1995 C, 4.05%,
LOC Swiss Bank, VRDN (b) $ 1,200,000 $ 1,200,000
Gulf Coast Waste Disp. Auth.
(Amoco Oil Co. Proj.) 4.05%, VRDN (b) 1,300,000 1,300,000
Harris County Ind. Dev. Corp. Poll. Cont. Rev.
(Exxon Proj.) Series 1987, 4.05%, VRDN (b) 300,000 300,000
2,800,000
VIRGINIA - 0.5%
Richmond Ind. Dev. Auth. (I) Rev. (Cogentrix Inc. Proj.)
Series 1990 A, 4.20%, LOC Banque Paribas,
VRDN (b) 2,300,000 2,300,000
TOTAL INVESTMENTS - 100% $ 463,663,939
Total Cost for Income Tax Purposes $ 463,663,637
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, 1995, the fund had a capital loss carryforward of
approximately $40,000 of which $24,000 and $16,000 will expire on October
31, 2001 and 2003, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995
4.ASSETS 5. 6.
7.Investment in securities, at value - See accompanying 8. $ 463,663,939
schedule
9.Receivable for investments sold 10. 2,817,786
11.Interest receivable 12. 4,298,698
13. 14.TOTAL ASSETS 15. 470,780,423
16.LIABILITIES 17. 18.
19.Payable to custodian bank $ 33,948 20.
21.Share transactions in process 762,541 22.
23.Distributions payable 22,909 24.
25.Accrued management fee 127,022 26.
27. 28.TOTAL LIABILITIES 29. 946,420
30.31.NET ASSETS 32. $ 469,834,003
33.Net Assets consist of: 34. 35.
36.Paid in capital 37. $ 469,846,347
38.Accumulated net realized gain (loss) on investments 39. (12,646)
40.Unrealized gain from accretion of market discount 41. 302
42.43.NET ASSETS, for 469,846,347 shares outstanding 44. $ 469,834,003
45.46.NET ASSET VALUE, offering price and redemption 47. $1.00
price per share ($469,834,003 (divided by) 469,846,347 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1995
48.49.INTEREST INCOME 50. $ 17,298,085
51.EXPENSES 52. 53.
54.Management fee $ 2,216,748 55.
56.Non-interested trustees' compensation 2,162 57.
58. Total expenses before reductions 2,218,910 59.
60. Expense reductions (855,981) 1,362,929
61.62.NET INTEREST INCOME 63. 15,935,156
64.REALIZED AND UNREALIZED GAIN (LOSS) 66. (15,826)
65.Net realized gain (loss) on investment securities
67.Increase (decrease) in net unrealized gain from 68. (2,782)
accretion of market discount
69.70.NET GAIN (LOSS) 71. (18,608)
72.73.NET INCREASE IN NET ASSETS RESULTING FROM 74. $ 15,916,548
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994
75.INCREASE (DECREASE) IN NET ASSETS
76.Operations $ 15,935,156 $ 8,891,960
Net interest income
77. Net realized gain (loss) (15,826) 8,310
78. Increase (decrease) in net unrealized gain from (2,782) 2,954
accretion of market discount
79. 80.NET INCREASE (DECREASE) IN NET ASSETS 15,916,548 8,903,224
RESULTING
FROM OPERATIONS
81.Distributions to shareholders from net interest (15,935,156) (8,891,960)
income
82.Share transactions at net asset value of $1.00 per 506,341,535 396,044,405
share
Proceeds from sales of shares
83. Reinvestment of distributions from net interest 15,494,923 8,641,755
income
84. Cost of shares redeemed (447,918,456) (322,239,669)
85.86. 73,918,002 82,446,491
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS
87. 88.TOTAL INCREASE (DECREASE) IN NET ASSETS 73,899,394 82,457,755
89.NET ASSETS 90. 91.
92. Beginning of period 395,934,609 313,476,854
93. End of period $ 469,834,003 $ 395,934,609
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
94. YEARS ENDED OCTOBER 31,
95. 1995 1994 1993 1992 1991
96.SELECTED PER-SHARE
DATA
97.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of period
98.Income from .036 .024 .021 .032 .047
Investment
Operations
Net interest income
99.Less Distributions (.036) (.024) (.021) (.032) (.047)
From net interest
income
100.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
101.TOTAL RETURN A 3.65% 2.45% 2.17% 3.24% 4.84%
102.RATIOS AND SUPPLEMENTAL DATA
103.Net assets, end of $ 469,834 $ 395,935 $ 313,477 $ 349,212 $ 348,142
period (000 omitted)
104.Ratio of expenses .31% .28% .44% .29% .11%
to average net assets
105.Ratio of expenses .50% .50% .50% .50% .50%
to average net assets
before expense
reductions
106.Ratio of net 3.59% 2.44% 2.15% 3.20% 4.68%
interest income to
average
net assets
</TABLE>
A TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN (SEE
NOTE 3 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995
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 individual
investment objective, policies and limitations of the fund remain the same.
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 substantially 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, 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.
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$7,869 for the period.
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 .30% to .32% of average net
assets and the reimbursement reduced expenses by $855,981.
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, 1995, the results of its operations for the year
then ended, and the changes in its net assets for each of the two years
then ended, and the 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, 1995 by
correspondence with the custodian, provide a reasonable basis for the
opinion expressed above.
PRICE WATERHOUSE LLP
Dallas, Texas
November 29, 1995
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call -
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
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
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB 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
