SPARTAN(registered trademark)
(registered trademark)
NEW JERSEY
MUNICIPAL
MONEY MARKET
FUND
(FORMERLY SPARTAN NEW JERSEY
MUNICIPAL MONEY MARKET PORTFOLIO)
SEMIANNUAL REPORT
APRIL 30, 1996
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.
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,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
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 were fairly positive in 1995, no one can predict what
lies ahead for investors. The previous 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 on an average sized account.
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 APRIL 30, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Spartan New Jersey Municipal
Money Market Fund 1.63% 3.48% 16.36% 22.81%
New Jersey Tax-Free
Money Market Funds Average 1.45% 3.09% 14.74% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a specific period - in this case, six months, 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 New Jersey tax-free money
market funds average, which reflects the performance of 10 New Jersey
tax-free money market funds with similar objectives tracked by IBC
Financial Data, Inc. over the past six months. (The periods covered by IBC
Financial Data, Inc. numbers are the closest available match to those
covered by the fund).
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan New Jersey Municipal
Money Market Fund 3.48% 3.08% 3.48%
New Jersey Tax-Free
Money Market Funds Average 3.09% 2.78% n/a
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
4/24/95 7/31/95 10/30/95 1/29/96 4/29/96
Spartan New Jersey 3.92% 3.55% 3.55% 3.02% 3.40%
Municipal Money Market
If Fidelity had not 3.72% 3.37% 3.37% 2.87% 3.23%
reimbursed certain fund
expenses
New Jersey 3.54% 3.14% 3.16% 2.67% 3.12%
Tax-Free Money Market
Funds Average
Spartan New Jersey 6.54% 5.92% 5.92% 5.04% 5.67%
Municipal Money Market -
Tax-equivalent
If Fidelity had not 6.21% 5.62% 5.62% 4.79% 5.39%
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 New
Jersey tax-free money market funds average as tracked by IBC Financial
Data, Inc. Or you can look at the fund's tax-equivalent yield, which is
based on a combined effective 1996 federal and state income tax rate of
40.08%. 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 Fund
Q. JEFF, HOW HAS THE INVESTMENT CLIMATE CHANGED DURING THE PAST SIX MONTHS?
A. There's been quite a turnaround in market sentiment in recent months.
When the period began, the Federal Reserve was in an easing mode, having
lowered the federal funds rate - the rate banks charge each other for
overnight loans - the previous July. With inflation under control, Congress
and the White House apparently making progress toward a balanced budget
agreement, and the economy losing steam, many market participants believed
it was only a matter of time before the Fed cut interest rates again. It
therefore came as no surprise when the Fed lowered the federal funds rate
one-quarter percentage point in early December, and lowered it again by an
equal amount on the last day of January 1996. Heading into spring, it
appeared likely the rate cuts would continue.
Q. HAS THAT SCENARIO CHANGED?
A. Yes. When Fed Chairman Alan Greenspan, testifying before Congress in
mid-February, seemed to suggest that the economy was basically sound, the
consensus shifted and rates backed up. Then came the infamous February
employment report, which was significantly stronger than most analysts had
predicted. Since then, a string of positive indicators has left little
doubt in most analysts' minds that, for the time being, the economy is in
no need of further stimulus.
Q. HOW DID YOU RESPOND TO CHANGING CONDITIONS?
A. The fund began the period with an average maturity of 70 days. In a
declining-rate environment, it usually makes sense to lock in attractive
rates for as long as possible by extending the fund's average maturity. As
evidence mounted that the economy was not as weak as we had thought, I
sought greater flexibility by reducing the fund's average maturity. By the
time the February employment report was released in early March, the fund's
average maturity was already in the mid 60s. Since then, I've gradually
rolled down, ending the period at 55 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on April 30, 1996 was 3.44%, compared to
3.55% on October 31, 1995. The latest yield was the equivalent of a taxable
yield of 5.74% for investors in the 40.08% combined federal and state tax
bracket. The fund's total return during the six-month period was 1.63%.
That beat the total return of 1.45% for the New Jersey tax-free money
market funds average, according to IBC Financial Data, Inc. The fund also
outperformed its peers over the past 12 months: 3.48%, compared to 3.09%.
Q. WHAT'S THE OUTLOOK?
A. Recently released economic indicators have produced some contradictory
signals, making it unclear just how strong the economy really is. In the
absence of compelling evidence one way or the other, I think it's likely
the Fed will stand pat for a while. Certainly no one expects the Fed to
lower rates again anytime soon. On the other hand, there have been ominous
signs of growing inflationary pressures in recent months. And if we
continue to see evidence of strong economic performance in key indicators
such as employment, housing and consumer spending, it is more likely that
the Fed will choose to raise rates, perhaps sometime during the third
quarter. But again, no one has a very clear sense of what to expect over
the next couple of months. Given the lack of a solid direction, I'll
probably aim to keep the fund's average maturity about where it is right
now - between 50 and 60 days. That gives me maximum flexibility to adapt to
changing conditions and take advantage of buying opportunities as they
arise.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
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 of April 30, 1996,
more than $486 million
MANAGER: Jeff Parker, since
June, 1995; Fidelity
Connecticut Municipal
Money Market, Fidelity
Michigan Municipal 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,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
4/30/96 10/31/95 4/30/95
0 - 30 62 63 70
31 - 90 17 13 13
91 - 180 10 5 7
181 - 397 11 19 10
WEIGHTED AVERAGE MATURITY
4/30/96 10/31/95 4/30/95
Spartan New Jersey
Municipal Money Market
Fund 55 days 72 days 50 days
New Jersey
Tax-Free Money Market
Funds Average* 53 days 61 days 43 days
ASSET ALLOCATION
AS OF APRIL 30, 1996 AS OF OCTOBER 31, 1995
Row: 1, Col: 1, Value: 51.0
Row: 1, Col: 2, Value: 12.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 31.0
Row: 1, Col: 5, Value: 2.0
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
Variable rate
demand notes
(VRDNs) 53%
Commercial
paper 12%
Tender bonds 2%
Municipal
notes 32%
Other 1%
Variable rate
demand notes
(VRDNs) 52%
Commercial
paper 14%
Tender bonds 3%
Municipal
notes 31%
Other 0%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
INVESTMENTS APRIL 30, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
LOUISIANA - 0.3%
Plaquemines Parish Envir. Rev. (BP Exploration &
Oil, Inc.) Series 1994, 4.30%, VRDN (b) $ 1,300,000 $ 1,300,000
NEW JERSEY - 80.3%
Allentown BAN 4.22% 5/21/96 800,000 800,029
Atlantic County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
3.80%, LOC Marine Midland Bank, VRDN 200,000 200,000
Atlantic Highland BAN 3.90% 6/27/96 900,000 900,136
Belmar BAN 4.25% 5/15/96 500,000 500,104
Bergen County BAN 3.41% 7/8/96 4,821,000 4,821,338
Bloomfield BAN 3.81% 6/7/96 2,000,000 2,000,038
Bloomingdale BAN 3.60% 3/14/97 1,000,000 1,000,417
Brick Township Board of Ed. BAN 4.25% 8/1/96 2,000,000 2,002,678
Burlington County BAN 4% 11/27/96 3,100,000 3,105,990
Burlington County Gen. Oblig. Bond 4.875% 11/15/96 600,000 603,858
Caldwell BAN 4.25% 6/7/96 1,500,000 1,500,800
Camden County BAN 3.43% 2/11/97 1,300,000 1,301,039
Camden County Impt. Auth. Rev.
(Jewish Commty. Center Proj.) Series 1995, 3.60%,
LOC Nat'l Westminster Bank, VRDN 2,600,000 2,600,000
Chester Township BAN 3.64% 8/15/96 1,000,000 1,000,110
Clifton Board of Ed. BAN 4.25% 7/12/96 2,500,000 2,502,369
Cresskill BAN 3.78% 1/3/97 800,000 800,418
Delaware River Port Auth. Participating VRDN,
Series SG-53, 3.95% (Liquidity Facility Societe Generale) (c) 9,640,000
9,640,000
Denville Board of Ed. BAN 3.50% 2/19/97 2,500,000 2,506,806
Denville Township BAN 4% 12/27/96 4,154,600 4,168,526
East Brunswick BAN 4% 1/3/97 1,500,000 1,504,495
Englewood BAN 3.78% 7/18/96 3,500,000 3,500,210
Essex County Gen. Oblig. Rev. 4.875% 11/15/96
(AMBAC Insured) 500,000 503,485
Essex County Impt. Auth. Rev.,VRDN:
(Pooled Gov't Loan Prog.)
Series 1985, 3.90%, LOC Bancode Santander 1,800,000 1,800,000
Series 1986, 3.90%, LOC Bancode Santander 1,800,000 1,800,000
Series 1995, 3.90%
(BPA Morgan Guaranty Trust Co.) (AMBAC Insured) 10,000,000 10,000,000
Essex County TAN 4% 8/19/96, LOC Chemical Bank 5,200,000 5,210,285
Essex Fells BAN 4% 12/13/96 2,500,000 2,506,703
Fair Lawn BAN 4% 12/13/96 3,240,994 3,249,687
Fort Lee BAN 4.33% 5/3/96 1,500,000 1,500,002
Franklin Township BAN 4.125% 8/23/96 3,067,900 3,069,778
Freehold Township BAN 3.95% 6/25/96 1,280,000 1,280,018
Gloucester County Ind. Poll. Cont. Fin. Auth. Rev. Rfdg.
(Monsanto Proj.) Series 1992, 3.95%, VRDN 1,100,000 1,100,000
Hamilton Township Mercer County BAN 4.125% 11/27/96 4,100,000 4,110,780
Highland Park BAN 3.75% 2/10/97 1,800,000 1,804,735
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
Hillside BAN:
4.13% 5/22/96 $ 2,000,000 $ 2,000,088
4% 8/9/96 2,900,000 2,903,113
Ho-ho-kus Borough BAN 3.74% 12/5/96 673,175 673,597
Hudson County BAN 4.375% 10/10/96 10,500,000 10,514,936
Hudson County Impt. Auth. Rev. (Essential Purp. Pooled Gov't.
Loan Prog.) Series 1986, 4.20%, LOC Hong Kong &
Shanghai Banking Corp., VRDN 34,260,000 34,260,000
Lavalette BAN:
4% 2/28/97 1,000,000 1,003,989
4.25% 5/2/97 2,100,000 2,109,072
Margate BAN 3.51% 6/25/96 3,000,000 3,000,251
Mercer County Gen. Oblig. Rev 5% 9/1/96 1,000,000 1,003,773
Mercer County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
Series 1985, 3.75%, LOC Credit Suisse Bank, VRDN 800,000 800,000
Middlesex County BAN 3.625% 6/27/96 10,000,000 10,000,375
Mine Hill Township BAN 3.97% 8/2/96 610,000 610,059
Monmouth County Impt. Auth. Rev. 9.25% 12/1/96 500,000 515,783
Montclair Township BAN:
4% 6/28/96 783,000 783,298
4% 1/24/97 2,349,000 2,358,133
4% 3/27/97 2,305,000 2,312,021
Morris County Gen. Oblig. BAN 3.47% 12/13/96 2,100,000 2,100,247
Morris Township BAN 4.50% 5/17/96 3,727,646 3,728,272
Morristown BAN 4.25% 5/24/96 1,600,000 1,600,443
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN:
Rfdg. (RJB Associates 1983 Proj.) 4.10%,
LOC PNC Bank, NA 500,000 500,000
(80 Carter Drive Assoc. Proj.) Series 1984, 4.35%,
LOC Marine Midland Bank 380,000 380,000
(Arden Group) Series 1989 BB, 4%, LOC Barclays Bank 1,500,000 1,500,000
(Composite Issue):
Series 1989-B, 4%, LOC Barclays Bank (b) 500,000 500,000
(Alesi Graphics Inc.) Series 1989 AA, 4%,
LOC Barclays Bank (b) 550,000 550,000
(Ellison School Inc.) Series 1989 KK, 3.90%,
LOC Barclays Bank 550,000 550,000
(Danic Urban Renewal Co. Proj.) Series 1985, 3.90%,
LOC Robobank Nederland (Coop Cent) 3,000,000 3,000,000
(Dial Realty) Series 1988 L, 4%, LOC Barclays Bank 2,300,000 2,300,000
(Fieldstone Corp.) Series 1988 K, 4%,
LOC Barclays Bank (b) 1,150,000 1,150,000
(Guttenplan's Bakery) Series 1989 G, 4%,
LOC Barclays Bank (b) 2,650,000 2,650,000
(Herzel Mor Corp.) Series 1989 L, 4%,
LOC Barclays Bank (b) 550,000 550,000
(Lamart Corporation) Series 1989 JJ, 4%,
LOC Barclays Bank (b) 550,000 550,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN: - continued
(PVC Container Corp.) Series 1987 D, 3.85%,
LOC Nat'l Westminster Bank (b) $ 2,365,000 $ 2,365,000
(Pictorial Offset Corp.) Series 1989 H, 4%,
LOC Barclays Bank (b) 1,600,000 1,600,000
(Recycle Inc. Proj.) Series 1995, 3.85%,
LOC Nat'l. Westminster Bank (b) 5,500,000 5,500,000
(Russ Berrie & Co. Inc.) 3.60%,
LOC Bank of New York 700,000 700,000
(The Nash Group 85 Proj.) Series 1986, 3.90%,
LOC Chemical Bank (b) 470,000 470,000
New Jersey Econ. Dev. Auth. Econ. Growth Rev., VRDN (b):
(Eastern Silk) Second Series D2, 4%,
LOC Banque Nat'l. de Paris 1,415,000 1,415,000
(Richard L Tauber Issue) Series 93 B-1, 3.90%,
LOC Nat'l. Westminster Bank 3,820,000 3,820,000
Series E-1, 4%, LOC Nat'l Westminster Bank 1,995,000 1,995,000
New Jersey Econ. Dev. Auth. First Mtg. Rev.
(Franciscan Oaks Proj.) Series 1992 B, 4%,
LOC Bank of Scotland, VRDN 1,200,000 1,200,000
New Jersey Econ. Dev. Auth. Ind. & Econ. Dev. Rev., VRDN:
(Block Drug Corp.) Series A, 4.15%, LOC SunTrust Bank 715,000 715,000
(Casa DiBertacchi Corp. Facs.) Series 1988, 4.30%,
LOC Marine Midland Bank 1,000,000 1,000,000
New Jersey Econ. Dev. Auth. Ind. Dev. Rev., VRDN (b):
(National Refrigerant) 4.40%, LOC Corestate 1,280,000 1,280,000
(Tru-Urban Renewal Corp. Proj.) 3.75%,
LOC Chemical Bank 400,000 400,000
New Jersey Econ. Dev. Auth. Natural Gas Facs. Rev. Series A,
4.10% (BPA Union Bank of Switzerland)
(AMBAC Insured) VRDN 5,300,000 5,300,000
New Jersey Econ. Dev. Auth. Rev.:
VRDN:
(500 International Drive Partners Proj.) Series 1995,
3.95%, LOC First Union Nat'l. Bank of North Carolina 3,000,000
3,000,000
(E.P. Henry Corp. Proj.) 4.10%, LOC New Jersey
Nat'l. Bank (b) 1,305,000 1,305,000
(Hoffman-La Roche Inc.) 4.10%, LOC Bayerische
Landesbank Girozentrale 1,100,000 1,100,000
(Paterson Composite) Series C, 4.15%, LOC Chemical Bank 2,600,000
2,600,000
(Peddie School Proj.) 3.95% (BPA PNC Bank, NA) 500,000 500,000
Bonds:
(Chambers Cogeneration Proj.) Series 1991:
3.20%, tender 5/21/96, LOC Swiss Bank 4,000,000 4,000,000
3.20%, tender 5/23/96, LOC Swiss Bank 3,500,000 3,500,000
3.35%, tender 6/19/96, LOC Swiss Bank 5,000,000 5,000,000
3.40%, tender 6/20/96, LOC Swiss Bank 3,000,000 3,000,000
3.35%, tender 6/21/96, LOC Swiss Bank 4,500,000 4,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Rev.: - continued
(Keystone Proj.) Series 1992:
3.45%, tender 6/18/96, LOC Union Bank of Switzerland $ 4,860,000 $
4,860,000
3.35%, tender 6/19/96, LOC Union Bank of Switzerland 12,700,000
12,700,000
(Morris Hall/St. Lawrence Inc.) Series 1993, 4.50%,
tender 5/1/96, LOC New Jersey Nat'l. Bank 2,900,000 2,900,000
New Jersey Edl. Facs. Auth. Participating VRDN
(Trenton State College) Series SG-48, 3.95% (Liquidity
Facility Societe Generale) (c) 4,500,000 4,500,000
New Jersey Edl. Facs. Auth. Rev. (Princeton Univ.)
Series 1995 C, 4.50% 7/1/96 1,000,000 1,001,048
New Jersey Gen. Oblig. Participating VRDN: (c)
Series BT-104, 4.25% (Liquidity Facility Bankers Trust Co.) 7,785,000
7,785,000
Series MGT-9, 3.80% (Liquidity Facility Morgan Guaranty
Trust Co.) 7,125,000 7,125,000
Series MGT-21, 3.80% (Liquidity Facility Morgan
Guaranty Trust Co.) 7,000,000 7,000,000
Series 1995-CB1, 3.77% (Liquidity Facility Chemical Bank) 5,000,000
5,000,000
New Jersey Gen. Oblig. TRAN:
Series 1996 A:
3.15% 5/10/96 (Liquidity Facility
Union Bank of Switzerland) 5,000,000 5,000,000
3.60% 6/13/96 (Liquidity Facility
Union Bank of Switzerland) 5,000,000 5,000,000
Series 1996 C:
3.20% 5/1/96 (Liquidity Facility
Union Bank of Switzerland) 2,500,000 2,500,000
3.30% 5/16/96 (Liquidity Facility
Union Bank of Switzerland) 2,200,000 2,200,000
3.30% 5/20/96 (Liquidity Facility
Union Bank of Switzerland) 2,000,000 2,000,000
3.20% 5/21/96 (Liquidity Facility
Union Bank of Switzerland) 1,200,000 1,200,000
New Jersey Health Care Facs. Fin. Auth. Rev.
(Cap. Asset Fin. Prog.) Series 1985 B, 3.85%,
LOC Chemical Bank, VRDN 1,500,000 1,500,000
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN: (c)
Series 1994 C-3003, 4.36% (MBIA Insured)
(Liquidity Facility Citibank) 6,200,000 6,200,000
Series 1994 C-3004, 4.21% (MBIA Insured)
(Liquidity Facility Citibank) 4,500,000 4,500,000
New Jersey Sports and Exposition Auth. Rev., Series 1992 C,
3.85%, (MBIA Insured) (BPA Barclays Bank) VRDN 11,100,000 11,100,000
New Jersey Trans. Auth. Participating VRDN,
Series 1995 B, 4.10% (MBIA Insured) (Liquidity
Facility Bank of New York) (c) 3,900,000 3,900,000
New Jersey Turnpike Auth. Turnpike Rev., Series 1991 D,
3.90% (FGIC Insured) LOC Societe Generale, VRDN 3,000,000 3,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
North Brunswick Township BAN 4.125% 8/30/96 $ 5,000,000 $ 5,002,612
Ocean County BAN 4% 6/28/96 6,000,000 6,002,517
Parsippany-Troy Hills BAN 4.625% 5/9/96 2,600,000 2,600,204
Passaic County BAN:
4% 6/27/96 7,547,000 7,550,321
4.125% 9/27/96 500,000 500,369
4.25% 9/27/96 2,600,000 2,603,556
4% 4/4/97 3,600,000 3,612,035
Passaic County Util. Auth. BAN (Solid Waste Sys. Proj.)
Series 1995 B, 3.90% 10/4/96 (MBIA Insured) 6,000,000 5,999,974
Paterson Gen. Impt. Rev. 4.75% 8/18/96 (FSA Insured) 1,000,000 1,003,545
Pequannock Township BAN 4% 12/9/96 700,000 701,610
Princeton BAN 3.58% 6/14/96 1,000,000 1,000,034
Randolph Township BAN 3.71% 6/21/96 2,124,000 2,123,884
Roselle Park BAN 4.25% 10/17/96 1,292,000 1,294,004
Salem County Ind. Poll. Cont. Fing. Auth. Rev. Bonds
(Philadelphia Elec. Co.) Series 1993 A, 3.40%,
tender 6/20/96, LOC Toronto-Dominion Bank 2,000,000 2,000,000
Somerset County Gen. Oblig. Rev 4.35% 12/1/96 900,000 904,605
Somerset County Ind. Poll. Cont. Fing. Auth. Rev,
(Minnesota Mining & Manufacturing 3M) 3.80%, VRDN 100,000 100,000
Somerville BAN 3.50% 2/21/97 1,505,000 1,508,525
South Orange Maplewood School Dist. BAN
3.85% 11/29/96 1,100,000 1,101,224
Southeast Morris County Muni. Util. Auth. Proj. BAN
4% 1/15/97 1,000,000 1,003,074
Sparta Township BAN 4% 6/14/96 900,000 900,438
Verona BAN 4% 5/22/96 2,300,000 2,300,382
West Deptford Township BAN 4.25% 6/27/96 1,000,000 1,000,758
West Milford Township BAN 4% 1/24/97 5,000,000 5,017,670
West Orange Gen. Oblig. Rev. 4% 12/1/96 400,000 400,624
Westwood BAN 4.25% 8/20/96 4,550,000 4,553,971
399,374,268
NEW YORK & NEW JERSEY - 14.2%
New York & New Jersey Port Auth. Participating VRDN: (c)
Series GS-52, 4.15% (Liquidity Facility Societe
Generale) 5,100,000 5,100,000
Series PA-67, 3.90% (Liquidity Facility Merrill Lynch & Co.) 2,080,000
2,080,000
New York & New Jersey Port Auth. Rev.:
Series 1991, 4.10%, VRDN (b) 6,400,000 6,400,000
Series 1992, 3.975%, VRDN 6,900,000 6,900,000
Series 1995, 3.975%, VRDN (b) 10,500,000 10,500,000
Series 1995-1, 4%, VRDN 5,000,000 5,000,000
Series A, 3.20% 5/22/96 (Liquidity Facility Bank of
Nova Scotia) CP 1,770,000 1,770,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - CONTINUED
New York & New Jersey Port Auth. Spl. Proj. Rev.
(KIAC Partners Proj.) Series 3, 4.15%, LOC Deutsche Bank,
VRDN (b) $ 18,500,000 $ 18,500,000
New York & New Jersey Port Auth. Versatile Structure Spl.
Oblig. Rev. VRDN: (b)
Series 1, 4.15% 1,500,000 1,500,000
Series 4, 4% (BPA Landesbank Hessen-Thuringen) 12,700,000 12,700,000
70,450,000
PUERTO RICO - 4.8%
Puerto Rico Commonwealth Pub. Impt. Participating VRDN: (c)
Series 1995, 4.11% (MBIA Insured) (Liquidity Facility
Bankers Trust Co.) 5,000,000 5,000,000
Series BT-165, 4.11% (Liquidity Facility Bankers Trust Co.) 5,814,000
5,814,000
Series PA-97, 3.85% (Liquidity Facility Merrill Lynch & Co.) 1,000,000
1,000,000
Series PT-63, 3.85% (Liquidity Facility
Bayerische Hypotheken) 2,900,000 2,900,000
Puerto Rico Hsg. & Fin. Corp. Bonds
Series 1990 I, 3.40%, tender 5/15/96 (AMBAC Insured)
(Liquidity Facility Citibank) 7,585,000 7,585,000
Puerto Rico Pub. Bldg. Auth. Participating VRDN,
Series PA-106, 3.85% (AMBAC Insured) (Liquidity
Facility Merrill Lynch & Co.) (c) 330,000 330,000
Univ. of Puerto Rico Participating VRDN, Series PA 109,
3.85% (Liquidity Facility Merrill Lynch & Co.) (c) 1,300,000 1,300,000
23,929,000
TEXAS - 0.4%
Brazos River Hbr. Navigation Dist. Rev.
(Dow Chemical Co. Proj.) Series 1996, 4.30%,VRDN 2,000,000 2,000,000
TOTAL INVESTMENTS - 100% $ 497,053,268
Total Cost for Income Tax Purposes $ 497,052,628
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
3. Provides evidence of ownership in one or more underlying municipal
bonds.
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>
APRIL 30, 1996 (UNAUDITED)
ASSETS
Investment in securities, at value - $ 497,053,268
See accompanying schedule
Cash 1,098,610
Interest receivable 4,835,672
TOTAL ASSETS 502,987,550
LIABILITIES
Payable for investments purchased $ 16,295,434
Distributions payable 33,802
Accrued management fee 141,905
TOTAL LIABILITIES 16,471,141
NET ASSETS $ 486,516,409
Net Assets consist of:
Paid in capital $ 486,529,693
Accumulated net realized gain (loss) on investments (14,031)
Unrealized gain from accretion of market discount 747
NET ASSETS, for 486,529,693 shares outstanding $ 486,516,409
NET ASSET VALUE, offering price and redemption price $1.00
per share ($486,516,409 (divided by) 486,529,693 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
INTEREST INCOME $ 8,738,231
EXPENSES
Management fee $ 1,217,728
Non-interested trustees' compensation 409
Total expenses before reductions 1,218,137
Expense reductions (406,736) 811,401
NET INTEREST INCOME 7,926,830
REALIZED AND UNREALIZED GAIN (LOSS) (1,385)
Net realized gain (loss) on investment securities
Increase (decrease) in net unrealized gain from 445
accretion of market discount
NET GAIN (LOSS) (940)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,925,890
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30,1996 1995
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 7,926,830 $ 15,935,156
Net interest income
Net realized gain (loss) (1,385) (15,826)
Increase (decrease) in net unrealized gain from 445 (2,782)
accretion of market discount
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 7,925,890 15,916,548
FROM OPERATIONS
Distributions to shareholders from net interest income (7,926,830) (15,935,156)
Share transactions at net asset value of $1.00 per share 262,897,609 506,341,535
Proceeds from sales of shares
Reinvestment of distributions from net interest income 7,700,611 15,494,923
Cost of shares redeemed (253,914,874) (447,918,456)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 16,683,346 73,918,002
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 16,682,406 73,899,394
NET ASSETS
Beginning of period 469,834,003 395,934,609
End of period $ 486,516,409 $ 469,834,003
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1996
(UNAUDITED) 1995 1994 1993 1992 1991
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period
Income from .016 .036 .024 .021 .032 .047
Investment
Operations
Net interest
income
Less Distributions (.016) (.036) (.024) (.021) (.032) (.047)
From net
interest income
Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
TOTAL RETURN B 1.63% 3.65% 2.45% 2.17% 3.24% 4.84%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end $ 486,516 $ 469,834 $ 395,935 $ 313,477 $ 349,212 $ 348,142
of period
(000 omitted)
Ratio of expenses .35% A, .31% .28% .44% .29% .11%
to average net D D D D D D
assets
Ratio of expenses .33% A, .31% .28% .44% .29% .11%
to average C
net assets after
expense
reductions
Ratio of net interest 3.25%A 3.59% 2.44% 2.15% 3.20% 4.68%
income to
average net
assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL RETURNS WOULD HAVE BEEN LOWER
HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 3 OF
NOTES TO FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 3 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
On December 14, 1995, the Board of Trustees approved a change in the fund's
name from Spartan New Jersey Municipal Money Market Portfolio to Spartan
New Jersey Municipal Money Market Fund. Spartan New Jersey Municipal Money
Market Fund (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 financial statements have been prepared in
conformity with generally accepted accounting principles which permit
management to make certain estimates and assumptions at the date of the
financial statements. 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
$3,570 for the period.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect.
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 .32% to .35% of average net
assets and the reimbursement reduced expenses by $377,045.
In addition, FMR has entered into arrangements on behalf of the fund with
the fund's custodian and transfer agent whereby interest earned on
uninvested cash balances was used to offset a portion of the fund's
expenses. During the period, the fund's expenses were reduced by $29,691
under these arrangements.
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.
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
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
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 MUNICIPAL
MONEY MARKET FUNDS
California Municipal Money Market
Connecticut Municipal Money Market
Massachusetts Municipal Money Market
Michigan Municipal Money Market
Municipal Money Market
New Jersey Municipal Money Market
New York Municipal 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
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
FIDELITY
(registered trademark)
MUNICIPAL MONEY MARKET
FUND
(FORMERLY FIDELITY TAX-EXEMPT MONEY MARKET TRUST)
SEMIANNUAL REPORT
APRIL 30, 1996
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 9 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 10 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 33 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 37 Notes to the financial statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
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 AMOUNT INVESTED.
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 were fairly positive in 1995, no one can predict what
lies ahead for investors. The previous 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 APRIL 30, 1996 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Fidelity Municipal Money Market Fund 1.58% 3.35% 15.80% 47.99%
All Tax-Free Money Market Funds Average 1.54% 3.25% 14.72% 45.69%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, 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 all tax-free money market funds average which reflects
the performance of 400 tax-free money market funds with similar objectives
tracked by IBC Financial Data, Inc. (IBC) over the past six months. (The
periods covered by IBC numbers are the closest match to those covered by
the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Municipal Money Market Fund 3.35% 2.98% 4.00%
All Tax-Free Money Market Funds Average 3.25% 2.78% 3.83%
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
4/24/95 7/31/95 10/30/95 1/29/96 4/29/96
Fidelity Municipal 3.75% 3.40% 3.41% 2.95% 3.25%
Money Market Fund
All Tax-Free Money Market 3.68% 3.29% 3.32% 2.89% 3.23%
Funds Average
Fidelity Municipal 5.86% 5.31% 5.33% 4.61% 5.08%
Money Market Fund
Tax-equivalent
Row: 1, Col: 1, Value: 3.75
Row: 1, Col: 2, Value: 3.68
Row: 1, Col: 3, Value: 5.859999999999999
Row: 2, Col: 1, Value: 3.4
Row: 2, Col: 2, Value: 3.29
Row: 2, Col: 3, Value: 5.31
Row: 3, Col: 1, Value: 3.41
Row: 3, Col: 2, Value: 3.32
Row: 3, Col: 3, Value: 5.33
Row: 4, Col: 1, Value: 2.95
Row: 4, Col: 2, Value: 2.89
Row: 4, Col: 3, Value: 4.609999999999999
Row: 5, Col: 1, Value: 3.25
Row: 5, Col: 2, Value: 3.23
Row: 5, Col: 3, Value: 5.08
Fidelity Municipal
Money Market
Fund
All Tax-Free
Money Market
Funds Average
Fidelity Municipal
Money Market Fund
Tax-equivalent
6% -
5% -
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the all tax-free money market funds average. Or you
can look at the fund's tax-equivalent yield, which assumes you're in the
36% tax bracket. Figures for the all tax-free money market funds average
are from IBC.
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 Fidelity Municipal
Money Market Fund
Q. DEBORAH, WHAT KIND OF INVESTMENT CLIMATE HAVE YOU BEEN OPERATING IN FOR
THE PAST SIX MONTHS?
A. Conditions have changed dramatically since the beginning of the period.
Last October, the economy was still growing slowly, inflationary pressures
were modest and there appeared to be bipartisan support in Congress for a
balanced-budget agreement. All that helped persuade the Federal Reserve to
continue pursuing a monetary policy designed to stimulate economic growth.
The Fed lowered the interest rate banks charge each other for overnight
loans - known as the federal funds rate - one-quarter percentage point in
December and another one-quarter percentage point in January 1996, to
5.25%. Since then, however, we've seen signs of increased economic activity
in a number of key areas, including employment and home sales. At the same
time, hopes for a balanced budget agreement have faded; and recently, both
the Producer Price Index and the Consumer Price Index have begun rising at
a rate that suggests inflationary pressures may be building. So far, the
Fed has stayed on the sidelines. However, toward the end of the period,
market pressures had nudged short-term rates higher anticipating a possible
Fed rate increase as early as the end of May.
Q. HOW DID YOUR STRATEGY CHANGE IN LIGHT OF CHANGING CONDITIONS?
A. Last fall, when rates seemed likely to continue declining, I positioned
the fund fairly aggressively. The fund's average maturity was 64 days at
the end of October; by the end of December, it was 68 days. In early March,
as market sentiment shifted and the potential for higher rates in the near
future increased, I began selling some of the fund's longer-term
securities. By the end of April, the fund's average maturity was toward the
defensive side of neutral at 41 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on April 30, 1996 was 3.29%, compared to
3.42% six months ago. The latest yield was the equivalent of a 5.14%
taxable yield for investors in the 36% federal tax bracket. The fund had a
total return for six months of 1.58%, compared to 1.54% for the all
tax-free money market funds average, according to IBC Financial Data, Inc.
Q. WHY IS THE FUND CHANGING ITS NAME?
A. As of May 1, 1996, the fund will be known as Fidelity Municipal Money
Market Fund. Even though the fund's name is being changed, the fund's
objective remains the same - to provide tax-free income. The name change
is a result of a change in the fund's investment policy that will allow me
to begin buying securities subject to the alternative minimum tax - often
referred to as AMT securities. This change is a benefit to shareholders
because it gives me greater flexibility in pursuing all marketplace
opportunities - including areas dominated by AMT securities. AMT securities
are issued by municipalities to finance private activity, such as airports,
multi-family housing and industrial development. These securities typically
offer higher yields than other municipal securities of comparable maturity
without necessarily involving higher credit risk. Although the fund is now
permitted to invest in any amount of municipal securities that may be
considered taxable under the AMT, I don't expect to begin buying AMT
securities until early summer, and when I do I'll add them gradually. Six
months from now, it's possible the fund may have about a 20% stake in AMT
securities.
Q. WHAT'S THE OUTLOOK FOR INTEREST RATES AND THE ECONOMY?
A. I think rates are likely to remain fairly stable over the next several
months as market participants and the Fed try to sort through conflicting
signals on the strength of the economy. I'm not convinced that the growth
we've seen since the beginning of the year is sustainable, yet there's
enough uncertainty that another rate cut by the Fed seems unlikely. I'll
probably let the fund's average maturity roll down into the mid 30s ahead
of the annual summer borrowing season. As abundant supplies enter the
market, I typically have opportunities to lengthen the fund's average
maturity at attractive rates.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
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 April 30, 1996,
more than $3.6 billion
MANAGER: Deborah Watson,
since June 1, 1995;
manager, Fidelity California
Municipal Money Market,
since 1988; Spartan
California Municipal Money
Market, since 1989; Capital
Reserves Municipal Money
Market, since 1995; and
Spartan Pennsylvania
Municipal Money Market,
since 1989; joined Fidelity in
1982
(checkmark)
THE ALTERNATIVE MINIMUM TAX
AND WHAT IT MEANS FOR
FIXED-INCOME INVESTORS
The federal alternative
minimum tax (AMT) is an
`additional' tax that may apply
to those individuals in higher
income tax brackets with
large deductions and/or
exclusions from income.
Investors may be subject to
the AMT if they benefit
substantially from what are
considered "items of tax
preference" and
"adjustments," such as
mutual fund dividends
attributable to certain
municipal private activity
bonds.
Most of Fidelity's municipal
money market funds do have
the ability to invest in
securities that are subject to
the AMT. The ability to invest
in such securities allows our
portfolio managers more
latitude in selecting securities
for their portfolios and helps
foster greater portfolio
diversification.
Of course, if you are not
subject to the AMT, the
tax-exempt status of the
income you receive from a
Fidelity municipal bond or
money market fund will not be
affected.
If you are an investor who is
subject to the AMT, or if you
are unsure, you should consult
your tax advisor for further
information.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
4/30/96 10/31/95 4/30/95
0 - 30 65 66 68
31 - 90 21 12 27
91 - 180 9 3 3
181 - 397 5 19 2
WEIGHTED AVERAGE MATURITY
4/30/96 10/31/95 4/30/95
Fidelity Municipal
Money Market Fund 41 days 64 days 33 days
All Tax-Free
Money Market 43 days 53 days 37 days
Funds Average *
ASSET ALLOCATION
AS OF APRIL 30, 1996 AS OF OCTOBER 31, 1995
Row: 1, Col: 1, Value: 54.0
Row: 1, Col: 2, Value: 18.0
Row: 1, Col: 3, Value: 5.0
Row: 1, Col: 4, Value: 21.0
Row: 1, Col: 5, Value: 2.0
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
Variable rate
demand notes
(VRDNs) 54%
Commercial
paper 18%
Tender bonds 5%
Municipal
notes 21%
Other 2%
Variable rate
demand notes
(VRDNs) 55%
Commercial
paper 24%
Tender bonds 3%
Municipal
notes 18%
Other 0%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
INVESTMENTS APRIL 30, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ALABAMA - 0.9%
Alabama Hsg. Fin. Auth. Multi-Family Hsg.:
Rfdg. Bonds (Rime Village Proj.) Series 1988 B,
3.20%,tender 5/10/96, LOC NationsBank NA (South) $ 9,000 $ 9,000
(Gazebo East Proj.) Series 1991 B, 4.55%,
LOC AmSouth Bank of Alabama, VRDN 3,585 3,585
Decatur Poll. Cont. Rev. Rfdg. (Monsanto Co. Proj.)
Series 1992, 4%, VRDN 2,600 2,600
Fairfield County Ind. Dev. Board Envir. Impt. Rev. Bonds
(USX Corp. Proj.) 3.70%, tender 5/1/96,
LOC Wachovia Bank 1,400 1,400
Jefferson County Swr. Rev. Series 1995 A, 4.15%,
LOC Bayerische Landesbank, VRDN 15,000 15,000
31,585
ALASKA - 0.8%
Alaska Hsg. Fin. Corp. Gen. Mtg. Rev. Series 1991 C,
4.10% (BPA Swiss Bank Corp.) VRDN 12,000 12,000
Anchorage TAN 4.25% 12/13/96 7,000 7,033
Valdez Marine Terminal Rev. Rfdg., VRDN:
(Atlantic Richfield Co.) Series 1994 B, 4.20% 5,000 5,000
(Exxon Pipeline Co. Proj.) Series 1993 A, 4% 5,200 5,200
29,233
ARIZONA - 5.6%
Apache County Ind. Dev. Auth. Rev.
(Tucson Elec. Pwr. Co. Springerville Proj.) VRDN:
Series 1983 A, 4.10%, LOC Barclays Bank 18,300 18,300
Series 1983 B, 4.10%, LOC Bank of New York 27,900 27,900
Series 1983 C, 4.10%, LOC Bankers Trust Co.. 10,000 10,000
Arizona Health Facs. Auth. Rev., VRDN:
(Samcor 1986 Loan Pool-Samaritan Health Care) 4.10%
(FGIC Insured) (BPA Chemical Bank) 19,430 19,430
(Voluntary Hosp. Federation Pooled Loan Prog.):
Series 1985 A, 4.10% (FGIC Insured) )
(Liquidity Facility Citibank) 8,945 8,945
Series 1985 B, 4.10% (FGIC Insured)
(Liquidity Facility Citibank) 7,800 7,800
Arizona Trans. Auth. Bond 7.90% 7/1/96 1,000 1,027
Gila County Ind. Dev. Auth. (Cobre Valley Hosp.)
Series 1995, 4.20%, LOC Bank One, VRDN 5,300 5,300
Maricopa County Gen. Oblig. Participating VRDN,
Series BT-182, 4.30%
(Liquidity Facility Bankers Trust Co.) (b) 3,200 3,200
Maricopa County Poll. Cont. Rev. Bonds
(Southern California Edison Co.):
Series 1985 C, 3.60%, tender 7/10/96 4,300 4,300
Series 1985 D, 3.55%, tender 6/18/96 5,450 5,450
Series 1985 E:
3.65%, tender 5/13/96 20,230 20,230
3.55%, tender 6/18/96 5,000 5,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ARIZONA - CONTINUED
Maricopa County TAN:
(Gilbert Unified School Dist. #41) 4.40% 7/31/96 $ 2,000 $ 2,004
(Paradise Valley Unified School Dist. #69) 4.30% 7/31/96 5,000 5,010
Mesa Bond 4.55% 7/1/96 (FGIC Insured) 1,000 1,002
Phoenix Gen. Oblig. Rev. Series 1995-2, 4.10%,
LOC Morgan Guaranty Trust Co., VRDN 4,800 4,800
Phoenix Ind. Dev. Auth. Multi-Family Hsg. Rev., VRDN:
(Bell Square Apt. Proj.) Series 1995, 4.40%,
LOC G. E Capital Corp. 6,000 6,000
(Del Mar Terrace Apts. Proj.) Series 1984, 4%,
LOC Bank of America 2,000 2,000
Pima County Ind. Dev. Auth. Ind. Rev. (Tucson Elec. Pwr. Co.)
(Irvington Proj.) Series 1982 A, 4.05%,
LOC Societe Generale, VRDN 6,300 6,300
Pinal County Ind. Dev. Auth. Hosp. Rev. (Casa Grande
Medical Ctr Proj.) Series 1995, 4%,
LOC Chemical Bank, VRDN 17,200 17,200
Salt River Proj. Agricultural Impt. & Pwr. Dist..,
3.20% 5/17/96, CP 15,413 15,413
Salt River Proj. Agricultural Impt. & Pwr. Dist. Bonds Series A,
7.50% 1/1/97 2,060 2,152
Tempe Excise Tax Rev. Bonds Series 1995, 6.20% 1/1/97 1,205 1,227
199,990
ARKANSAS - 0.7%
Arkansas Dev. Fin. Auth. Health Facs. Rev. (Sisters of
Mercy Health Sys.) Series 1989 B, 4.05%, VRDN 1,700 1,700
Arkansas Dev. Fin. Auth. Single Family Mtg. Rev. Bonds
Series 1995 H, 3.80%, tender 8/1/96
(FGIC Capital Markets Guaranteed) 3,455 3,455
Arkansas Hosp. Equip. Fin. Auth. Rev. (Baptist Health Proj.)
Series 1995, 4.20%, LOC Credit Suisse, VRDN 10,500 10,500
Little Rock Health Facs. Board Rev. (S.W. Hosp.) Series 1988,
4.15% (FGIC Insured) (BPA Bank of Nova Scotia) VRDN 1,300 1,300
University of Arkansas Rev. 4.25%,
LOC Credit Suisse, VRDN 7,000 7,000
23,955
CALIFORNIA - 6.8%
Alameda County TRAN 4.75% 7/25/96,
LOC Union Bank of Switzerland 9,000 9,015
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 School Cash Reserve Prog. Auth. TRAN
Series 1995 A, 4.75% 7/3/96 (MBIA Insured) 50,000 50,083
Contra Costa County TRAN 4.50% 7/3/96 11,000 11,016
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Fresno County TRAN 4.50% 7/2/96 $ 11,200 $ 11,208
Los Angeles County TRAN 4.50% 7/1/96 75,000 75,084
Los Angeles Unified School Dist. TRAN 4.50% 7/3/96 21,000 21,028
Oakland TRAN 4.50% 7/31/96 12,500 12,519
Oakland Unified School Dist. TRAN 4.50% 8/30/96 10,000 10,013
San Bernardino County TRAN 4.50% 7/5/96 26,000 26,024
245,990
COLORADO - 1.5%
Arapahoe County School Dist. #5
Gen. Oblig. Participating VRDN, Series 1996 A, 4.25%,
(Liquidity Facility Norwest Bank, N.A.) (b) 3,000 3,000
Colorado TRAN 4.50% 6/27/96 5,000 5,007
Fort Lupton Wtr. Util. Enterprise Wtr. Rev. BAN
Series 1995, 4.25% 1/10/97 1,700 1,700
Highlands Ranch County Metro Dist. #2 Gen. Oblig.
Participating VRDN, Series 1996 E, 4.25%
(Liquidity Facility Norwest Bank, N.A.) (b) 1,850 1,850
Moffat County Poll. Cont. Rev. Rfdg.
(Colorado-UTE Elec. Assoc. Inc.) Series 1984, 4.15%
(Nat'l. Rural Util. Coop. Guaranteed) VRDN 43,200 43,200
54,757
CONNECTICUT - 1.0%
Connecticut Special Assessment Unemployment Rev. Bonds
Series 1993 C, 3.90%, tender 7/1/96 (FGIC Insured)
(Liquidity Facility FGIC Security Purchase Inc.) 32,000 32,000
Mashantucket (Western) Pequot Tribe Series 1996,
3.40% 10/24/96, LOC Bank of America, CP 5,700 5,700
37,700
DELAWARE - 1.9%
Delaware Econ. Dev. Auth. Multi-Family Rev.
(Schoolhouse Trust Prog.) 4.55%,
LOC Marine Midland Bank, VRDN 26,100 26,100
Delaware Econ. Dev. Auth. Rev.
(Hosp. Billing & Collection Svc. Proj.) VRDN:
Series 1985 A, 4.20% (MBIA Insured)
(BPA Morgan Stanley Group Inc.) 2,400 2,400
Series 1985 B, 4.20% (MBIA Insured)
(BPA Morgan Stanley Group Inc.) 25,000 25,000
Series 1985 C, 4.20% (MBIA Insured)
(BPA Morgan Stanley Group Inc.) 15,000 15,000
68,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - 7.7%
Brevard County Hsg. Fin. Auth. Rev.
(Sun Pointe Bay Apts. Proj.) Series 1993, 4.50%
(Continental Casualty Insurance Co. Guaranteed) VRDN $ 2,180 $ 2,180
Dade County Health Facs. Auth. Hosp. Rev.
(Miami Children's Hosp. Proj.)
Series 1990, 4.20%, LOC Barnett Bank, VRDN 2,400 2,400
Dade County Ind. Dev. Auth. Rev.
(Dolphins Stadium Proj.) VRDN:
Series 1985 C, 4.05%, LOC Societe Generale 4,800 4,800
Series 1985 D, 4.05%, LOC Societe Generale 12,900 12,900
Florida Hsg. Fin. Agcy. (Oaks at Mill Creek Proj.)
Series 1985, 4.10%, LOC Chemical Bank, VRDN 4,800 4,800
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Hillsborough-Oxford Proj.) Series D, 4.45%
(Continental Casualty Insurance Co. Guaranteed) 5,000 5,000
(Parrot's Landing Proj.) Series 1985 AA, 4.15%
(FNMA Guaranteed) 4,000 4,000
Florida Local Govt. Fin. Auth. (Lake Wales Medical
Centers Inc. Proj.) Series 1994 A, 4.15%,
LOC First Union Nat'l. Bank, VRDN 4,458 4,458
Florida Local Govt. Fin. Commission Series A,
3.30% 5/13/96, LOC First Union Nat'l. Bank, CP 4,300 4,300
Florida Muni. Pwr. Agcy. (Initial Pooled Loan Proj.) Series A,
3.20% 5/20/96, LOC First Union Nat'l. Bank, CP 7,660 7,660
Florida Muni. Pwr. Agcy. Participating VRDN
Series PA-1018, 4.10%
(Liquidity Facility Merrill Lynch & Co.) (b) 2,245 2,245
Florida State Board of Ed. Pub. Participating VRDN,
Series CR-163, 4.26% (Liquidity Facility Citibank) (b) 5,000 5,000
Gulf Breeze Rev. Series 1995 A, 3.90%,
LOC Barnett Bank, VRDN 5,400 5,400
Hialeah Hosp. Rev. Rfdg. (Hialeah Hosp. Inc. Proj.) Series B,
4.55%, LOC Bank of Montreal, VRDN 3,310 3,310
Indian River County Hosp. Dist. Hosp. Rev. Bonds:
Series 1988, 3.20%, tender 5/15/96, LOC Kredietbank 7,100 7,100
Series 1990, 3.60%, tender 6/12/96, LOC Kredietbank 4,400 4,400
Indian Trace Commty. Dev. Dist. Rev. (Broward County Basin I
Wtr. Mgmt. Spl. Benefit Bd.) 4.10% (MBIA Insured)
(BPA Swiss Bank Corp.) VRDN 1,800 1,800
Jacksonville Elec. Auth. Series A, 3.20% 5/22/96
(Liquidity Facility Morgan Guaranty Trust Co.) CP 5,600 5,600
Jacksonville Poll. Cont. Rev. Rfdg. Bonds (Florida Pwr. &
Light Co. Proj.) Series 1994, 3.25%, tender 5/16/96 11,860 11,860
Jacksonville (River City Renaissance Prog.) CP:
3.45% 6/11/96 14,300 14,300
3.45% 6/14/96 19,000 19,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Lee County Hosp. Board Hosp. Rev. Bonds
(Lee Memorial Hosp. Proj.):
Series 1985 D, 3.55%, tender 6/14/96
(Liquidity Facility SunTrust Bank, Central Florida) $ 13,000 $ 13,000
Series 1992, 3.45%, tender 5/9/96
(Liquidity Facility SunTrust Bank, Central Florida) 5,000 5,000
Series 1992 B, 3.55%, tender 6/12/96
(Liquidity Facility SunTrust Bank, Central Florida) 10,000 10,000
Series 1992 C, 3.25%, tender 8/9/96
(Liquidity Facility SunTrust Bank, Central Florida) 4,000 4,000
Manatee County Hsg. Fin. Auth.
(Harbor Pointe Proj.) Series 1990 A, 4.55%,
LOC Marine Midland Bank, VRDN 2,100 2,100
Manatee County Poll. Cont. Rev. (Florida Pwr. & Light Co. Proj.)
Series 1994, 4.10%, VRDN 1,100 1,100
Naples Hosp. Rev. (Naples Commty. Hosp. Proj.)
Series 1992, 4.40%, LOC Mellon Bank, VRDN 8,200 8,200
Orlando & Orange County Expressway Auth.
Participating VRDN, Series 1996 C, 4.25%
(Liquidity Facility Norwest Bank NA) (b) 1,500 1,500
Palm Beach County Ind. Dev. Rev. (Palm Beach Jewish
Commty. Campus Corp. Proj.) Series1990, 4.15%,
LOC SunTrust Bank, Central Florida, VRDN 4,510 4,510
Reedy Creek Impt. Dist. Participating VRDN,
Series CR-168, 4.21% (Liquidity Facility Citibank) (b) 12,100 12,100
St. Johns County Hsg. Fin. Auth. Multi-Family Hsg. Rev.
(Remington at Ponte Vedra Proj.) 4.35%,
LOC SunTrust Bank, Atlanta, VRDN 12,000 12,000
St. Lucie County Poll. Cont. Rev. Rfdg. Bonds
(Florida Pwr. & Light Co. Proj.) 3.25%, tender 5/20/96 4,500 4,500
Sarasota County Pub. Hosp. Dist. Bonds
(Sarasota Memorial Hosp.):
Series 1991:
3.25%, tender 5/15/96
(Liquidity Facility Goldman Sachs & Co.) 14,800 14,800
3.45%, tender 5/21/96
(Liquidity Facility Goldman Sachs & Co.) 9,000 9,000
3.35%, tender 8/12/96
(Liquidity Facility Goldman Sachs & Co.) 10,000 10,000
Series 1993 A, 3.50%, tender 6/12/96
(Liquidity Facility Goldman Sachs & Co.) 15,000 15,000
Sunshine State Governmental Fing. Commission:
Bonds Series 1986, 3.25%, tender 5/24/96 2,000 2,000
3.25% 5/20/96, CP 12,075 12,075
3.50% 7/12/96, CP 4,540 4,540
277,938
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
GEORGIA - 4.8%
Albany Dougherty Payroll Dev. Auth. Poll. Cont. Rev. Rfdg.
(Philip Morris Cos. Proj.) 4.15%, VRDN $ 2,790 $ 2,790
Atlanta Gen. Oblig. Participating VRDN, Series SG-58,
4.15% (Liquidity Facility Societe Generale) (b) 7,200 7,200
Cherokee County Wtr. & Swr. Auth. Participating VRDN,
Series 1993, 4.10% (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, 4.10%
(FSA Insured) (BPA Barclays Bank) 1,100 1,100
(Villa Rouge Apts. Proj.) Series 1990 C, 4.10%
(FSA Insured) (BPA Barclays Bank) 3,900 3,900
Columbia County Residential Care Facs. Rev.
(Augusta Residential Ctr./Brandon Wilde Lifecare Ctr.)
4.15%, LOC SunTrust Bank Atlanta, VRDN 6,635 6,635
Dekalb County Dev. Auth. Rev., VRDN:
(American Cancer Society Inc. Proj.) Series 1988 4.15%,
LOC SunTrust Bank Atlanta, 6,005 6,005
(BDS Oglethorpe Univ. Proj.)
4.15%, LOC SunTrust Bank Atlanta 5,100 5,100
Dekalb County Hosp. Auth. Rev.
(Medical Ctr. Proj.) Series B, 4.15%,
LOC SunTrust Bank Atlanta, VRDN 14,300 14,300
Dekalb County Tender Option Ctfs. Series BT-178, 4.25%
(Liquidity Facility Bankers Trust Co.) (b) 3,200 3,200
Fulton County Dev. Auth. (Georgia Tech Athletic Assoc.)
4.15%, LOC SunTrust Bank Atlanta, VRDN 7,900 7,900
Georgia Gen. Oblig.:
Rfdg. Bonds Series B, 6.70% 9/1/96 1,000 1,011
Participating VRDN, Series BT-122, 4.30%
(BPA Bankers Trust Co.) (b) 4,580 4,580
Georgia Muni. Elec. Auth. Pwr. Rev. Bonds Series L, 7.75%
1/1/97 10,000 10,491
Georgia Muni. Elec. Auth. Participating VRDN,
Series 1994 D, 4.26% (Liquidity Facility Citibank) (b) 22,400 22,400
Georgia Muni. Gas Auth. Rev. Bonds
(Southern Portfolio Proj.) Series 1991 C, 3.25%,
tender 5/28/96, LOC Wachovia Bank of NC, 2,600 2,600
Gwinett County Various Purpose Unltd Tax
Bonds 7.10% 1/1/97 1,650 1,723
Gwinnett County Wtr. & Swr. Auth. Participating VRDN.,
Series BT-17, 4.30% (BPA Bankers Trust Co.) (b) 7,069 7,069
Macon-Bibb County Hosp. Auth. Rev.
(Med. Ctr. of Central Georgia) 4.15%,
LOC SunTrust Bank Atlanta, VRDN 9,745 9,745
Marietta Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Wood Pointe Apts.) Series 1993, 4.65%,
LOC First Union Nat'l. Bank of NC 4,895 4,895
(Concepts 21 Apts.) 4.20% (FNMA Guaranteed) 2,000 2,000
(Winterset Apts.) 4.25%, LOC Wachovia Bank of GA 4,225 4,225
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
GEORGIA - CONTINUED
Metro Atlanta Rapid Transit Auth. Sales Tax Rev.
Participating VRDN, Series SG-57, 4.10%
(Liquidity Facility Societe Generale) (b) $ 10,000 $ 10,000
Rockdale County Hosp. Auth. Rev.
Series 1994, 4.15%, LOC SunTrust Bank Atlanta, VRDN 2,085 2,085
Roswell Hsg. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Roswell-Oxford Proj.) Series 1990, 4.45%
(Continental Casualty Insurance Co. Guaranteed) 6,100 6,100
Rfdg. (Ski Lodge Apts. Proj.) Series 1991 B, 4.35%,
LOC AmSouth Bank 3,230 3,230
(Autumnbrook Apts.) Series 1991 A, 4.35%,
LOC AmSouth Bank 7,165 7,165
Whitfield County Residential Care Facilities Auth. Rev. Bonds
(Royal Oaks Sr. Living Comm.) 4.20%,
LOC First Union Nat'l. Bank, VRDN 9,350 9,350
171,219
HAWAII - 0.2%
Hawaii Gen. Oblig. Participating VRDN,
Series 1993 CH, 4.20%
(Liquidity Facility Morgan Guaranty Trust Co.) (b) 6,460 6,460
IDAHO - 0.8%
Caribou County Poll. Cont. Rev. Rfdg. (Monsanto Co.)
Series 1990, 4%, VRDN 5,100 5,100
Idaho Gen. Oblig. TAN Series 1995, 4.50% 6/27/96 22,000 22,023
27,123
ILLINOIS - 5.8%
Chicago Gen. Oblig.:
Bonds:
Series 1995 B, 3.75%, tender 5/1/96,
LOC Morgan Guaranty Trust Co 21,000 21,000
Series 1996, 3.10%, tender 2/4/97,
LOC Landesbank Hessen-Thuringen 16,200 16,200
Participating VRDN (b):
Series CR-165, 4.21% (Liquidity Facility Citibank) 10,000 10,000
Series CR-166, 4.21% (Liquidity Facility Citibank) 10,000 10,000
Chicago O'Hare International Arpt. Rev. Series C,
4.20%, LOC Societe Generale, VRDN 4,700 4,700
Cook County Rev. (Claretian Assoc. Neighborhood
Dev. Office) Series 1990, 4.10%,
LOC Federal Home Loan Bank, Chicago, VRDN 4,100 4,100
Illinois Dev. Fin. Auth. Poll. Con. Rev. (Illinois Pwr. Co.) 4%,
LOC Canadian Imperial Bank, VRDN 2,600 2,600
Illinois Dev. Fin. Auth. Rev. (Museum of Contemporary
Art Proj.) Series 1994, 4.10%, VRDN 18,200 18,200
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ILLINOIS - CONTINUED
Illinois Edl. Facs. Auth. Rev., VRDN:
(Art Institute of Chicago) Series 1996, 4.15%
(Liquidity Facility Bank of America) $ 13,000 $ 13,000
(Chicago Children's Museum) Series 1994, 4.10%,
LOC Nat'l. Bank of Detroit 3,100 3,100
(Northwestern Univ.) Series 1988, 4.15%
(BPA Northern Trust Co.) 8,200 8,200
(The Arts Club of Chicago) Series 1996, 4.10%,
LOC Northern Trust Company 4,400 4,400
Illinois Gen. Oblig. Participating VRDN, Series BT-174, 4.30%
(FGIC Insured) (Liquidity Facility Bankers Trust Co.) (b) 3,615 3,615
Illinois Health Facs. Auth. Bonds (Evanston Hosp.
Corp. Proj.) Series 1985-B, 3.15%, tender 1/31/97 12,300 12,300
Illinois Health Facs. Auth. Rev., VRDN:
(Evangelical Hosp. Proj.) 4.25%,
LOC First Nat'l. Bank of Chicago 7,400 7,400
(Gottlieb Health Resources Inc.) 4.10%,
LOC Harris Trust & Savings Bank 4,000 4,000
(Pekin Mem. Hosp. Proj.) Series 1993 C, 4.15%,
LOC Lasalle Nat'l. Bank of Chicago 3,700 3,700
(West Suburban Hosp. Med. Ctr. Proj.) Series 1991, 4.10%,
LOC First Chicago Corp. 21,550 21,550
Kane, Cook and Du Page County School Dist. # U-46 TAN
Series 1995, 3.94% 9/30/96 4,400 4,407
Kane McHenry Cook & Dekalb Counties Commty. Unit
School Dist. # 300 TAN 4.25% 9/27/96 5,000 5,010
Libertyville Ind. Rev. (Libertyville Manor Facs. Proj.)
Series 1992, 4.10%,
LOC First of America Bank-Michigan, VRDN 4,060 4,060
Lisle Village Multi-Family Hsg. Rev. (Four Lakes Proj.)
Series 1985 A, 4.25%, LOC Chemical Bank, VRDN 9,920 9,920
Mundelein Ind. Dev. Rev. Rfdg. (1200 Town Line Rd. Proj.)
4.10%, LOC Harris Trust & Savings Bank, VRDN 2,900 2,900
Rockford Ind. Dev. Rev. (Longview Fiber Co.) Series 1987, 4%,
LOC Algemene Bank, VRDN 2,000 2,000
Schaumburg Gen. Oblig. Rev. Series 1996 A, 4.10%
(BPA Credit Suisse) VRDN 9,000 9,000
Winnebago & Boone Counties School Dist. # 205 TAN,
Series 1996, 4.35% 10/30/96
(FSA Insured) 2,500 2,515
207,877
INDIANA - 2.2%
Dyer Health Care Facs. Participating VRDN, Series 1992 A,
4.35% (FHA Insured) (Liquidity Facility Bank One) (b) 3,515 3,515
Fort Wayne Health Care Facs. Participating VRDN, Issue X
4.35% (Liquidity Facility Bank One) (FHA Insured) (b) 3,700 3,700
Fort Wayne Poll. Cont. Rev. (General Motors Corp. Proj.)
4%, VRDN 1,380 1,380
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
INDIANA - CONTINUED
Indiana Bond Bank TAN 4.25% 7/8/96 $ 8,450 $ 8,464
Indiana Dev. Fin. Auth. Ind. Dev. Rev. Rfdg.
(Group Dekko Int'l., Inc. Proj.) 4.25%,
LOC Bank One, VRDN 1,755 1,755
Indiana Health Facs. Fing. Auth. Hosp. Rev.
(Methodist Hosp. Of Indiana) Series1992 B, 4.20%,
LOC Credit Suisse, VRDN 1,500 1,500
Indiana Hsg. Fin. Auth. Single Family Mtg. Rev. Bonds,
Series 1994 D, 3.90%, tender 7/1/96 (FGIC Insured) 8,400 8,400
Indianapolis Econ. Dev. Rev. Rfdg.
(Morningside of College Park)
Series 1993, 4.25%, LOC Bank One, VRDN 6,470 6,470
Indianapolis Health Care Facs.
Participating VRDN, 4.35% (FHA Insured)
(Liquidity Facility Bank One Akron) (b) 4,145 4,145
Kendallville Ind. Dev. Rev. Rfdg. Series 1993
(Philip Morris Co., Inc.) 4.15%, VRDN 2,475 2,475
Rockport Poll. Cont. Rev. Rfdg., VRDN:
(AEP Generating Co. Proj.) Series 1995 A, 4.10%
(AMBAC Insured) (Liquidity Facility Bank of New York) 1,500 1,500
(Michigan Pwr. Co. Proj.) 4.10% (AMBAC Insured)
(Liquidity Facility Bank of New York) 13,500 13,500
Sullivan Poll. Cont. Rev. Bonds (Hoosier Energy Rural Elec.):
Series 1985 L-1, 3.25%, tender 5/16/96
(Nat'l. Rural Util. Coop. Guaranteed) 5,645 5,645
Series 1985 L-2, 3.25%, tender 5/17/96
(Nat'l. Rural Util. Coop. Guaranteed) 10,550 10,550
Valparaiso Econ. Dev. Rev.
(Indiana Retirement Commty. Proj.)
4.25%, LOC Bank One, VRDN 4,600 4,600
77,599
IOWA - 0.5%
Des Moines Comm. Dev. Rev. (Levy, Malone & Co. Proj. #1)
Series 1984 A, 4%, LOC First Bank Minnesota, VRDN 5,700 5,700
Des Moines Swr. Rev. Bonds 6% 6/1/96 (BIG Insured) 1,000 1,002
Iowa Fin. Auth. Single-Family Rev. Mtg. Bonds Series 1995 A,
3.10%, tender 2/27/97 (FGIC Insured) 1,260 1,260
Iowa Fin. Auth. Small Bus. Dev. Rev. (Corporate Ctr. Proj.)
4.475% (Principal Mutual Life Insurance Co.
Guaranteed) VRDN 6,000 6,000
Iowa School TRAN Series 1996 B, 4.25% 1/30/97
(FSA Insured) 3,025 3,044
17,006
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
KANSAS - 1.4%
Burlington Poll Cont. Rev. Bonds (Kansas Elec. Pwr. Coop. Inc.)
Series 1985 C-2, 3.25%, tender 5/16/96 (Nat'l. Rural Util.
Coop. Guaranteed) $ 4,250 $ 4,250
Lawrence Gen. Oblig. BAN:
Series 1995 D, 3.45% 10/1/96 2,000 2,000
Series 1995 E, 3.45% 10/1/96 1,900 1,900
Olathe Edl. Facs. Rev. (College Assoc. Pooled Ed. Loan Prog.)
Series 1989 A, 4.15%, LOC Marine Midland Bank, VRDN 38,680 38,680
Wamego Poll Cont. Rev. Rfdg. (Utilicorp United Inc. Proj.)
Series 1996, 4.10%, LOC Credit Suisse, VRDN 3,300 3,300
50,130
KENTUCKY - 1.0%
Boone County Kentucky (Hennegan Co. Proj.) 4.30%,
LOC Star Bank, VRDN 1,880 1,880
Jefferson County Poll. Cont. Rev. Bonds
(Louisville Gas & Elec. Co.) Series 1993 A,
3.20%, tender 5/20/96 9,265 9,265
Kentucky Dev. Fin. Auth. Healthcare Sys. Rev.
(Appalachian Regional Health) 4%,
LOC ABN-AMRO Bank, VRDN 2,900 2,900
Louisville & Jefferson County Participating VRDN,
Series PT-69, 4.15% (Liquidity Facility Bayerische
Hypotheken-und Weschel) (b) 3,300 3,300
Mason County Poll. Cont. Rev. (East Kentucky Pwr. Proj.)
Series 1984 B3, 4.15% (Nat'l. Rural Util. Coop.
Guaranteed) VRDN 20,150 20,150
37,495
LOUISIANA - 3.0%
Ascension Parish Poll. Cont. Rev. Rfdg. (Borden Inc. Proj.)
Series 1992, 4%, LOC Credit Suisse, VRDN 10,000 10,000
Calcasieu Ind. Dev. Board Poll. Cont. Rfdg. Rev.
(PPG Industries) Series 1992, 4.10%, VRDN 14,450 14,450
Jefferson Parish Hosp. Rev., VRDN:
(Svc. Dist. #2) Series 1985, 4.10% (FGIC Insured)
(BPA FGIC Security Purchase Inc.) 4,000 4,000
(W. Jefferson Med. Ctr. Dist. #1)
Series 1986, 4.10%, LOC Citibank 27,320 27,320
Lafayette Ind. Dev. Rev. (Westwood Village Proj.)
4.15%, LOC Texas Commerce Bank, VRDN 3,735 3,735
Louisiana Pub. Facs. Auth. Health Care Sys. Bonds
(Sisters of Charity of the Incarnate Word):
3.55%, tender 5/30/96 (BPA Credit Suisse) 8,000 8,000
3.55%, tender 6/7/96 (BPA Credit Suisse) 10,500 10,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
LOUISIANA - CONTINUED
Louisiana Public Facs. Auth. Hosp. Rev., VRDN:
Rfdg. (Willis-Knighton Med. Ctr. Proj.) Series1993,
4.10% (AMBAC Insured) (BPA Mellon Bank) $ 8,000 $ 8,000
(Greenbriar Hosp. Proj.) Series 1984, 4.20%,
LOC Societe Generale 1,700 1,700
Louisiana Pub. Facs. Auth. Rev. (College & Univ. Equip.
& Cap. Facs.) Series 1985, 4.10% (FGIC Insured)
(BPA Societe Generale) VRDN 3,020 3,020
Plaquemines Port Harbor Terminal Dist. Port Fac. Rev.
Bonds, (Chevron Corp.) 6.25%, tender 9/1/96 3,400 3,402
St. Charles Parish Poll. Cont. Rev. Rfdg. (Monsanto Co. Proj.)
Series 1994, 4%, VRDN 11,725 11,725
West Baton Rouge Parish Ind. Dist. #3 Rev. Rfdg. Bonds
(Dow Chemical Co. Proj.) Series 1991, 3.40%,
tender 5/7/96 3,000 3,000
108,852
MAINE - 0.2%
Biddeford Resource Recovery Rev.
(Maine Energy Recovery Co. Proj.)
Series 1985, 3.50%, LOC Bank of America, VRDN 5,500 5,500
MARYLAND - 2.1%
Baltimore RAN 4.25% 6/10/96 23,400 23,412
Baltimore Rfdg. Rev. Participating VRDN,
(Wastewater Proj.) Series SG-20, 4.20%
(Liquidity Facility Societe Generale) (b) 8,500 8,500
Howard County Multi-Family Hsg. Rev. (Chase Greens Proj.)
Series 1985 A, 4.225%, LOC Bankers Trust Co., VRDN 4,800 4,800
Maryland Econ. Dev. Corp. Rev. Series 1995, 4.20%,
LOC NationsBank NA, VRDN 11,000 11,000
Maryland Health and Higher Ed. Facs. Auth. Rev. , VRDN:
(Leland Memorial Hosp.), 4.20%,
LOC NationsBank NA 3,220 3,220
(Pooled Loan Prog.) Series D, 4.20%,
LOC NationsBank NA 14,040 14,040
Washington Suburban Sanitation Dist. Participating VRDN,
Series 1994 F-A, 4.26% (Liquidity Facility Citibank) (b) 10,800 10,800
75,772
MASSACHUSETTS - 0.5%
Massachusetts Bay Trans. Auth. Series C, 3.50% 5/30/96,
LOC Westdeutsche Landesbank, CP 3,950 3,950
Massachusetts Gen. Oblig. Participating VRDN, Series SG-47,
4.15% (Liquidity Facility Societe Generale) (b) 6,000 6,000
Massachusetts Wtr. Resource Auth., 3.40% 5/24/96,
LOC Morgan Guaranty Trust Co., CP 7,000 7,000
16,950
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MICHIGAN - 4.1%
Dearborn Econ. Dev. Corp. (Oakbrook Common Proj.)
Series 1991, 4.15%, LOC Mellon Bank, VRDN $ 3,900 $ 3,900
Michigan Gen. Oblig. TAN 4% 9/30/96 23,000 23,075
Michigan Hosp. Fin. Auth. (Hospital Equip. Loan Prog.) VRDN:
4.15%, LOC First of America Bank 900 900
Series 1995 A, 4.15%, LOC First of America Bank 4,000 4,000
Series A, 4.15%, LOC First of America Bank 3,000 3,000
Michigan Hosp. Fin. Auth. Rev., VRDN:
Rfdg. (Mt. Clemens Gen. Hosp.)
Series 1994, 4.15%, LOC Comerica Bank 17,100 17,100
(Chelsea Commty. Hosp.) 4.10%, LOC Comerica Bank 7,320 7,320
Michigan Hsg. Dev. Auth. Rental Hsg. Rev. Series 1994 C,
4.10%, LOC Credit Suisse, VRDN 15,200 15,200
Michigan Muni. Auth. RAN Series 1995 B, 4.50% 7/3/96 70,000 70,081
Michigan Strategic Fund Bonds (Dow Chemical Co. Proj.)
Series 1987, 3.25%, tender 5/21/96 2,500 2,500
147,076
MINNESOTA - 2.9%
Becker Poll. Cont. Rev. Bonds (Northern States Pwr.
Co./Sherburne Co. Gen. #3) Series1993 B,
3.25%, tender 5/16/96 5,000 5,000
Bloomington Multi-Family Hsg. Rev. Rfdg.
(Crow/Bloomington Apts. Proj.) 4.15%,
LOC Citibank, VRDN 9,000 9,000
Dakota County Hsg. & Redev. Auth. Multi-Family
Rental Hsg. Rev. Rfdg. (Southview Gables Apts. Proj.)
4.10%, VRDN 1,000 1,000
Duluth TAN 4.25% 12/31/96 4,700 4,722
Duluth Health Care Facs. Participating VRDN (b):
Series 1994 E, 4.25% (MBIA Insured)
(Liquidity Facility Norwest Bank) 1,575 1,575
Series 1994 F, 4.25% (Connie Lee Insured)
(Liquidity Facility Norwest Bank) 1,890 1,890
Duluth Hosp. Facs. Rev. (Miller-Dwan Med. Ctr.)
Series 1989 A, 4.10%, LOC Citibank, VRDN 8,300 8,300
Duluth Tax Increment Rev. (Lake Superior Paper Co.)
Series 1985, 4.40%,
LOC Nat'l. Australia Bank, VRDN 2,900 2,900
Maplewood Multi-Family Hsg. Rev. Rfdg.
(Silver Ridge Proj.) Series 1993, 4.20%,
LOC Federal Home Loan Bank, VRDN 2,500 2,500
Minnesota Hsg. Fin. Agcy. Single Family Mtg. Rev. Bonds
Series M, 3.50%, tender 12/12/96 4,900 4,900
Olmsted County (COP Human Svcs. Campus
Infrastructure Proj.) 4.15%,
LOC Toronto Dominion Bank, VRDN 18,605 18,605
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MINNESOTA - CONTINUED
Osseo Ind. Sch. Dist. Participating VRDN (b):
Series 94H, 4.25% (FGIC Insured)
(Liquidity Facility Norwest Bank) $ 1,325 $ 1,325
Series 94 S, 4.25% (Liquidity Facility First Bank, Minnesota) 1,000
1,000
Series 94-T1, 4.25%
(Liquidity Facility First Bank, Minnesota) 4,390 4,390
Richfield Ind. School Dist. Participating VRDN
Series 94Q, 4.25% (FGIC Insured)
(Liquidity Facility First Bank, Minnesota) (b) 2,365 2,365
Rochester Health Care Facs. Rev.:
(Mayo Foundation Proj.) Series 1985 C, 4.30% (Liquidity
Facility Credit Suisse) VRDN 5,400 5,400
Participating VRDN Series 94K, 4.25%
(Liquidity Facility Norwest Bank) (b) 1,260 1,260
Rochester Ind. Dev. Rev. (Seneca Foods Corp.) Series 1992,
4.35%, LOC ABN-AMRO Bank, VRDN 4,675 4,675
St Louis Park Health Care Facs. Participating VRDN
Series 94U, 4.25% (Liquidity Facility Norwest Bank) (b) 7,700 7,700
St. Paul Port Auth. Tax Increment Rev.
(Westgate Office & Ind. Ctr. Proj.)
Series 1991, 4%, LOC First Bank, Minnesota, VRDN 3,900 3,900
Univ. of Minnesota Bonds Series G, 3.25%,
tender 8/1/96 3,300 3,300
Univ. of Minnesota Series 1991 A, 3.50% 7/12/96, CP 10,000 10,000
105,707
MISSISSIPPI - 0.3%
Desoto County Ind. Dev. Rev. (Flavorite Labs Proj.) Series 1991 A,
4.35%, LOC First Tennessee Bank, VRDN 1,100 1,100
Jackson County Wtr. Sys. Gen. Oblig. Rfdg. Bonds
(Chevron Corp.) 3.30%, tender 8/1/96 1,800 1,800
Perry County Poll. Cont. Rev. Rfdg.
(Leaf River Forest Prod. Inc. Proj.) 4.10%,
LOC Morgan Guaranty Trust Co., VRDN 7,100 7,100
10,000
MISSOURI - 1.1%
Missouri Envir. Impt. & Energy Resources Auth.
Poll. Cont. Rev. (Assoc. Elec. Coop.) Series 1993 M, 4.15%
(Nat'l. Rural Util. Coop. Guaranteed) VRDN 5,900 5,900
Missouri Health & Ed. Facs. Auth. Rev.
(SSM Healthcare Proj.) Series A, 4%,
LOC RaboBank Nederland, VRDN 8,400 8,400
St. Charles County Ind. Dev. Auth. Rev. Rfdg., VRDN:
(Vanderbilt Apts. Proj.)
Series 1990 A, 4.15%, LOC Citibank 7,900 7,900
(Westchester Apts.)
Series 1991, 4.15%, LOC Citibank 5,700 5,700
University of Missouri RAN Series 1995-96,
4.75% 6/28/96 10,500 10,517
38,417
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MONTANA - 1.0%
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co.)
Series 1983 A, 4.15%,
LOC Union Bank of Switzerland, VRDN $ 7,900 $ 7,900
Montana Board of Investments Payroll Tax Rev.
(Workers Comp. Prog.) Series 1993, 4.05%, VRDN 5,000 5,000
Montana Gen. Oblig. TRAN 4.50% 6/30/96 21,800 21,826
34,726
NEBRASKA - 0.3%
Nebraska Public Pwr. Dist. Pwr. Participating VRDN
Series 93C, 4.10%
(Liquidity Facility Merrill Lynch & Co.) (b) 8,600 8,600
Omaha Pub. Pwr. Dist. Elec. Rev. Bonds Series B,
4.10% 2/1/97 2,600 2,617
11,217
NEVADA - 0.5%
Nevada Gen. Oblig. Participating VRDN, 4.15%
(Liquidity Facility Societe Generale) (b) 18,160 18,160
NEW HAMPSHIRE - 0.8%
Hollis-Brookline Coop School Dist. Gen. Oblig. BAN
4.25% 7/25/96 3,800 3,803
New Hampshire Hsg. Fin. Auth. Multi-Family Hsg. Rev. Rfdg.
(Nashua-Oxford Proj.) Series 1990, 4.45%
(Continental Casualty Insurance Co. Guaranteed) VRDN 16,900 16,900
New Hampshire Ind. Dev. Auth. Resource Recovery Rev. Bonds
(Claremont Co. LP Proj.) Series 1985, 3.80%, tender 7/1/96
(MBIA Insured) 4,000 4,000
New Hampshire Muni. Bond Bank Bonds Series 1995 A,
5.25% 8/15/96 (AMBAC Insured) 3,300 3,320
28,023
NEW JERSEY - 1.6%
Camden County Muni Util. Auth. Swr. Rev. Rfdg. Bonds
4% 7/15/96 (FCIC Insured) 1,685 1,688
Cape May BAN 3.50% 2/28/97 1,243 1,247
East Brunswick BAN 4% 1/3/97 10,219 10,250
Freehold Township Monmouth County BAN,
Series 1996 A, 3.625% 2/7/97 1,648 1,651
Jackson Township BAN 3.65% 11/27/96 4,352 4,353
Livingston Township Rfdg. Tax Appeal Bonds
3.26% 2/12/97 2,687 2,687
Morris County Gen. Oblig. BAN 3.47% 12/13/96 2,200 2,200
New Jersey TRAN Series 1996 A, 3.60% 6/11/96
(Liquidity Facility Union Bank of Switzerland) 15,000 15,000
New Jersey Gen. Oblig. Participating VRDN,
Series 943005, 4.21% (Liquidity Facility Citibank) (b) 9,700 9,700
Pleasantville School Dist. BAN 3.50% 8/29/96 4,000 4,002
Washington Township BAN 4% 12/13/96 5,000 5,013
West Patterson BAN 3.875% 9/6/96 1,149 1,149
58,940
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW MEXICO - 0.1%
Albuquerque Spl. Tax Rev. Rfdg.
Series 1991 A, 4.20%,
LOC Canadian Imperial Bank, VRDN $ 3,200 $ 3,200
Bernalillo County Gen. Oblig. Bonds 6% 8/1/96 1,080 1,088
Farmington Util. Sys. Rev. 9.625% 5/15/96,
(FGIC Insured) 1,895 1,937
6,225
NEW YORK - 3.1%
Buffalo Gen. Oblig. RAN 4.20% 7/16/96,
LOC Landesbank Hessen-Thuringen 3,700 3,706
Hempstead BAN 3.50% 2/28/97 23,900 23,942
New York City Gen. Oblig. RAN
Series 1996 B, 4.75% 6/28/96 37,500 37,554
New York City Gen. Oblig. Rev. Series 1994 A-7, 4%,
LOC Morgan Guaranty Trust Co.,VRDN 1,000 1,000
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Rev.
Series 1994 C, 4% (FGIC Insured) VRDN 16,700 16,700
New York Energy Research & Dev. Auth. Elec. &
Gas Poll. Cont. Rev., 3.85%,
LOC Union Bank of Switzerland, VRDN 3,100 3,100
New York Envir. Fac. Corp. Participating VRDN,
Series CR-154, 4.21% (Liquidity Facility Citibank) (b) 2,000 2,000
New York Local Govt. Assistance Corp. Participating VRDN,
Series 199-C, 4.25%
(Liquidity Facility Bank of Nova Scotia) (b) 7,000 7,000
Suffolk County BAN, Series 1996 A, 4% 1/2/97 16,000 16,052
111,054
NORTH CAROLINA - 0.3%
Mecklenburg County Gen. Oblig. Rev. Series 1996 C, 4.10%
(Liquidity Facility NationsBank) VRDN 8,600 8,600
North Carolina Hosp. Rev. Board Rev.
(Park Ridge Hosp.) Series 1988, 4.10%,
LOC NationsBank NA (South) VRDN 3,900 3,900
12,500
OHIO - 0.3%
Greene County BAN 4% 12/12/96 2,500 2,507
Montgomery BAN 3.75% 12/20/96 2,000 2,004
Ohio Air Quality Dev. Auth. Rev. (Cincinnati Gas & Elec.)
Series A, 4.10%, LOC ABN-Amro Bank, VRDN 3,100 3,100
Ohio Pub. Facs. Higher Ed. Bonds Series II-B,
5% 11/1/96 (MBIA Insured) 4,000 4,030
11,641
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
OKLAHOMA - 0.4%
Holdenville Ind. Auth. Correctional Fac. Rev.
Series 1995, 4.20%,
LOC First Union Nat'l. Bank, VRDN $ 6,850 $ 6,850
Tulsa Ind. Auth. Rev. Rfdg. (University of Tulsa)
Series 1996 B, 4.10% (MBIA Insured)
(BPA Credit Locale de France) VRDN 7,700 7,700
14,550
PENNSYLVANIA - 2.7%
Allegheny County Hosp. Dev. Auth. Health Ctr. Rev.
(Presbyterian Univ. Health Sys.) Series 1990 B, 4.10%
(MBIA Insured) (BPA PNC Bank) VRDN 700 700
Berks County Ind. Dev. Auth. Ind. Dev. Rev.
(Continental Assurance Co. Proj.) Series 1982, 3.55%
(Continental Casualty Co. Guaranteed) VRDN 6,400 6,400
Delaware Valley Reg'l. Fin. Auth. Local Gov't. Rev., VRDN:
Series 1985 A, 4.25%, LOC Midland Bank PLC 8,600 8,600
Series 1985 B, 4.25%, LOC Midland Bank PLC 1,500 1,500
Series 1985 C, 4.25%, LOC Midland Bank PLC 3,100 3,100
Series 1985 D, 4.25%,
LOC Hong Kong & Shanghai Banking Corp. 5,300 5,300
Series 1986, 4.25%,
LOC Hong Kong & Shanghai Banking Corp. 8,775 8,775
Emmaus Gen. Auth. Local Govt. Rev., VRDN:
Series 1989 B-10, 4.30%, LOC Midland Bank PLC 1,000 1,000
Series 1989 D-10, 4.25%, LOC Canadian Imperial Bank 2,800 2,800
Pennsylvania Gen. Oblig. Participating VRDN, Series 94B,
4.26%, (Liquidity Facility Citibank) (b) 27,400 27,400
Pennsylvania Infrastructure Investment Auth. Rev.
(Pennvest Pooled Loan Program) Series 1994, 4.05%
(Liquidity Facility PNC Bank) 1,700 1,700
Philadelphia Ind. Dev. Auth. Rev. Rfdg., VRDN:
(Paper Corp. of America Proj.) 4.15%,
LOC SunTrust Bank, Atlanta 3,565 3,565
(Tom James Co. Proj.) Series 1991, 4.15%,
LOC SunTrust Bank, Nashville 2,950 2,950
Philadelphia School Dist. TRAN, Series 1995-96,
4.50% 6/28/96 15,200 15,213
Schuylkill County Ind. Dev. Auth. Resource Recovery Rev.
(Gilberton Pwr.) 4.25%, LOC Mellon Bank NA, VRDN 5,000 5,000
Scranton -Lackawanna Health & Welfare Auth.
(Elan Gardens Proj.) Series 1996, 4.15%,
LOC PNC Bank, VRDN 2,000 2,000
96,003
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
RHODE ISLAND - 0.4%
Rhode Island Hsg. & Mtg. Fin. Corp.
Homeownership Opportunity Bonds
Series 19-C, 3.45%, tender 1/30/97 $ 1,200 $ 1,200
Rhode Island TAN 4.50% 6/28/96,
LOC Union Bank of Switzerland 14,000 14,018
15,218
SOUTH CAROLINA - 2.5%
Kershaw County Ind. Dev. Rev. Rfdg. (New South Proj.)
Series 1992, 4.25%, LOC NationsBank NA
(Carolinas) VRDN 8,500 8,500
South Carolina Jobs Econ. Dev. Auth. Healthcare Facs. Rev.
(The Methodist Home Proj.) Series 1994, 4.25%,
LOC NationsBank NA (Carolinas) VRDN 4,000 4,000
South Carolina Pub. Svc. Auth., CP:
3.40% 5/14/96 22,395 22,395
3.20% 5/17/96 11,300 11,300
3.20% 5/22/96 12,892 12,892
3.25% 5/24/96 4,200 4,200
3.50% 6/13/96 10,821 10,821
South Carolina Pub. Svc. Auth. Tender Option Bonds
Series CR-183, 4.21%,
(Liquidity Facility Citibank) (b) 6,600 6,600
West Columbia Wtr. & Swr. Rev. Bonds 7.375% 10/1/96
(MBIA Insured) 1,000 1,027
York County Poll. Cont. Rev. Bonds (Saluda River Elec.):
Series 1984 E-1, 3.10% 8/15/96
(Nat'l. Rural Util. Coop. Guaranteed) 1,940 1,940
Series 1984 E-2, 3.10% 8/15/96
(Nat'l. Rural Util. Coop. Guaranteed) 5,250 5,250
88,925
TENNESSEE - 4.6%
Clarksville Pub. Bldg. Auth. Pooled Fing. Rev., VRDN:
Series 1994, 4.20 LOC NationsBank 21,400 21,400
Series 1995, 4.20%, LOC NationsBank NA (South) 12,000 12,000
Franklin Ind. Dev. Board Multi-Family Hsg. Rev.
(The Landings Proj.) Series 1985 A, 3.90%,
LOC Citibank, VRDN 7,100 7,100
Memphis Ctr. Rev. Fin. Corp. (Arbors of Harbor Town Project)
Series 1990, 4.20% (Northwestern Mutual Life
Insurance Guaranteed) VRDN 16,250 16,250
Metropolitan Govt. Nashville & Davidson County Hosp. Rev.
Bonds (Baptist Hosp.) Series 1992, 3.45%,
tender 5/23/96 (BPA NationsBank NA (South)) 11,700 11,700
Metropolitan Nashville & Davidson County Health & Ed. Facs.
Multi-Family Hsg. Rev. (Brentwood Oaks Apts.) 4.20%
(Northwestern Mutual Life Insurance Guaranteed) VRDN 7,100 7,100
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
TENNESSEE - CONTINUED
Metropolitan Nashville & Davidson County Health & Ed. Rev.
(Mckendree Village Inc. Proj.) 4.15%, LOC
SunTrust Bank, Nashville VRDN $ 12,955 $ 12,955
Metropolitan Nashville & Davidson County Health. Facs. Rev.
(Richland Place Inc. Proj.) 4.05%,
LOC Societe Generale, VRDN 4,600 4,600
Nashville & Davidson County Gen. Oblig. Participating VRDN,
Series CR-169, 4.21% (Liquidity Facility Citibank) (b) 11,000 11,000
Nashville & Davidson County Ind. Dev. Board Rev., VRDN:
(Chimneytop II Oxford Associate) Series 1984 A, 4.10%,
LOC Bank of America 3,450 3,450
(YMCA Proj.) Series 1994, 4.20%,
LOC Nationsbank NA (South) 6,125 6,125
Montgomery County Pub. Bldg. Auth. Rev., VRDN:
Series 1995, 4.20%, LOC NationsBank 17,000 17,000
4.20%, LOC NationsBank NA (South) 15,000 15,000
Sullivan County Ind. Dev. Board Rev. Rfdg., VRDN:
(BC Realty Proj.) Series 1995, 4.35%,
LOC First Tennessee Bank, NA 3,400 3,400
(Executive Park Realty Proj.) Series 1995, 4.35%,
LOC First Tennessee Bank, NA 2,100 2,100
Tennessee Gen. Oblig. BAN
Series 1994 B, 4.40% 5/1/96 6,000 6,000
Tennessee Local Dev. Auth. BAN 4.75% 5/31/96 10,300 10,307
167,487
TEXAS - 13.4%
Austin Combined Util. Sys. Series A, 3.25% 5/16/96,
LOC Swiss Bank, CP 8,851 8,851
Austin Hsg. Fin. Corp. Multi-Family Hsg. Rev. (Riverchase Proj.)
Series 1985 A, 4.15%, LOC Household Finance
Corp., VRDN 1,600 1,600
Bexar County Hsg. Fin. Corp. Multi-Family Hsg. Rev. Rfdg., VRDN:
(Fountainhead I Proj.) Series 1992 A, 4.15%
(Continental Casualty Guaranteed) 3,620 3,620
(Fountainhead III Proj.) Series 1992 A, 4.15%
(Continental Casualty Guaranteed) 8,545 8,545
Brazos Harbor Ind. Dev. Corp. Bonds (Dow Chemical Corp.):
Series 1986, 3.55%, tender 6/18/96 7,040 7,040
Series 1991, 3.40%, tender 5/7/96 14,100 14,100
Central Waco Dev. Corp. Ind. Dev. Rev. Rfdg.
(HE Butt Grocery Proj.) Series 1992, 4.20%,
LOC Texas Commerce Bank of Houston, VRDN 3,330 3,330
Dallas Fort Worth Regional Airport Participating VRDN,
Series 954301, 4.26% (Liquidity Facility Citibank) (b) 23,400 23,400
Georgetown Higher Ed. Fin. Corp. Rev. (Southwestern Univ. Proj.)
Series 1984, 4.05%, LOC Chemical Bank, VRDN 5,000 5,000
Harris County Participating VRDN, Series 1994 E, 4.26%
(Liquidity Facility Citibank) (b) 9,600 9,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
TEXAS - CONTINUED
Greater East Texas Higher Ed. Auth. Student Loan Rev. Rfdg.
Series 1992 A, 4.10%, LOC SLMA, VRDN $ 5,200 $ 5,200
Guadalupe-Blanco River Auth. Ind. Dev. Rev.
(BOC Group Inc. Proj.) Series 1993, 4.15%,
LOC Wachovia Bank, VRDN 3,100 3,100
Harris County Dev. Corp. Rev. Series 1996 A, 4%,
LOC Texas Commerce Bank, VRDN 3,400 3,400
Harris County Health Facs. Dev. Corp.
(Aces Greater Houston Pooled Health) Series 1985 A,
4.20%, LOC Texas Commerce Bank, VRDN 2,700 2,700
Harris County Health Facs. Dev. Corp. Hosp. Rev. Bonds
(San Jacinto Methodist Hosp.) Series 1987 A,
3.35%, tender 6/3/96,
LOC Morgan Guaranty Trust Co. 9,000 9,000
Houston Wtr. Sys. Rev.:
Bonds 8.20% 12/1/96 4,500 4,709
Series A, CP:
3.30% 5/23/96 (Liquidity Facility Swiss Bank Corp./
Westdeutsche Landesbank) 10,000 10,000
3.30% 5/30/96 (Liquidity Facility Swiss Bank Corp./
Westdeutsche Landesbank) 3,000 3,000
3.40% 5/30/96 (Liquidity Facility Swiss Bank Corp./
Westdeutsche Landesbank) 6,000 6,000
3.60% 6/10/96 (Liquidity Facility Swiss Bank Corp./
Westdeutsche Landesbank) 10,000 10,000
3.70% 8/20/96 (Liquidity Facility Swiss Bank Corp./
Westdeutsche Landesbank) 6,000 6,000
Lewisville Wtr. & Swr. Rev. Rfdg. & Impt. Bonds 8% 2/15/97
(AMBAC Insured) 1,005 1,041
Nacogdoches Ind. Dev. Auth. Rev. Rfdg.
(La Quinta Motor Inns Inc. Proj.) 4.25%,
LOC NationsBank NA, VRDN 2,465 2,465
San Antonio Elec. & Gas Rev. Sys. Series A, CP:
3.40% 5/8/96 8,000 8,000
3.30% 5/21/96 11,000 11,000
3.30% 5/28/96 29,200 29,200
San Antonio Hotel Occupancy Tax Rev.
(Henry B. Gonzalez Convention Ctr. Proj.) 4.15%
(Liquidity Facility Societe Generale) (b) 4,150 4,150
San Antonio Wtr. Sys. Rev., CP:
Series 1992:
3.20% 5/10/96 (Liquidity Facility Credit Suisse) 8,000 8,000
3.50% 6/12/96 (Liquidity Facility Credit Suisse) 9,000 9,000
Silsbee Health Facs. Dev. Corp. Hosp. Rev.
(Silsbee Doctor's Hosp.) Series 1984, 4.15%,
LOC Citibank, VRDN 4,500 4,500
Texas Dept. of Hsg. & Commty. Affairs Participating VRDN,
Series PT-9, 4.15% (Liquidity Facility CommerzBank) (b) 3,800 3,800
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
TEXAS - CONTINUED
Texas Dept. of Hsg. & Commty. Affairs Multi-Family Hsg. Rev.
Rfdg. (Remington Hills Development) 4.35%,
LOC SunTrust Bank, Atlanta, VRDN $ 8,500 $ 8,500
Texas Gen. Oblig. TRAN:
Series 1995 A, 4.75% 8/30/96 141,300 141,692
Series 1995 B:
3.35% 8/15/96 10,000 10,000
3.40% 8/15/96 10,000 10,000
Texas Higher Ed. Auth. Inc. Series B, 4.10%
(BPA FGIC Security Purchase Inc.) VRDN 9,590 9,590
Texas Muni. Pwr. Agcy. 3.20% 8/9/96, CP 20,000 20,000
Texas Pub. Fin. Auth. Participating VRDN Series 1996 CB2,
3.87% (Liquidity Facility Chemical Bank) (b) 4,970 4,970
Texas Small Bus. Ind. Dev. Corp. Rev. (Pub. Facs. Cap.
Access Prog.) 4.15%, LOC Nat'l. Westminster Bank/
Credit Suisse, VRDN 23,945 23,945
Texas Wtr. Dev. Board Participating VRDN,
Series SG-23, 4.20%
(Liquidity Facility Societe Generale) (b) 2,500 2,500
Univ. of Texas Sys. Rev. Fing. Series A, CP:
3.20% 5/9/96 5,777 5,777
3.25% 5/13/96 3,064 3,064
3.45% 5/23/96 6,645 6,645
3.25% 5/24/96 6,920 6,920
482,954
UTAH - 0.9%
Intermountain Pwr. Agcy. Pwr. Supply Rev. Bonds:
Rfdg. Series 1993 A, 3.90% 7/1/96 3,000 3,002
Series 1985-F, 3.80% tender 6/17/96
(BPA Bank of America) 20,400 20,400
Series F (U.S. Steel Corp.) 3.25%, tender 5/21/96
LOC Swiss Bank Corp. 1,700 1,700
Utah County Envir. Impt. Bonds Series 1995,
3.70%, tender 5/1/96 LOC Wachovia Bank of NC 3,000 3,000
Utah Gen. Oblig Bonds:
(Bldg. & Highway) 4.70% 7/1/96 1,000 1,002
5.75% 7/1/96 3,400 3,413
32,517
VERMONT - 0.1%
Vermont Ed. & Health Bldg. Fin. Agcy. Hosp. Rev.
(Northeastern Reg. Hosp.) 4.40%,
LOC Bank of Boston, VRDN 3,000
VIRGINIA - 2.5%
Louisa County Ind. Dev. Auth. Rev.
Series 1995, 4.20%, LOC NationsBank NA, VRDN 32,300 32,300
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
VIRGINIA - CONTINUED
Louisa Ind. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec.
Pwr. County Proj.):
Series 1985, 3.65%, tender 5/10/96
(BPA Bank of New York) $ 9,790 $ 9,790
Series 1985, 3.20%, tender 6/11/96
(BPA Bank New York) 5,000 5,000
Series 1985, 3.45%, tender 6/13/96
(BPA Bank of New York) 15,500 15,500
Series 1987, 3.30%, tender 5/13/96 5,100 5,100
Newport News Redev. & Hsg. Auth. Rev.
(Newport-Oxford Proj.) Series 1984, 4.10%,
LOC Bank of America, VRDN 3,200 3,200
Suffolk Redev. & Hsg. Auth. Multi-Family Rental Hsg. Rev.
(Windsor at Potomac Vista Proj.) 4.20%,
LOC NationsBank NA, VRDN 14,169 14,169
York County Ind. Dev. Auth. (Philip Morris Co. Proj.)
Series 1991, 4.15%, VRDN 4,000 4,000
89,059
WASHINGTON - 4.1%
King County Gen. Oblig. Rfdg. Bonds Series 1996 A,
5% 1/1/97 3,335 3,371
Port Seattle Rev. Rfdg. Bonds, Series A, 5.50% 2/1/97
(AMBAC Insured) 2,915 2,963
Seattle Metropolitan Wtr. Muni. Bonds 7.20% 1/1/97 8,050 8,425
Snohomish County Pub. Util. Dist. #1 Elec. Rev. Rfdg. Bonds
(Generation Sys.) Series 1986 A:
7.375% 1/1/97 (MBIA Insured) (BIG Insured) 10,625 11,119
8% 1/1/97 1,055 1,108
Washington Gen. Oblig. Series VR-96A, 4.05%
(Liquidity Facility Landesbank Hessen-Thuringen) VRDN 2,300 2,300
Washington Gen. Oblig. Participating VRDN (b):
Series BT-101, 4.30% (BPA Bankers Trust Co.) 12,065 12,065
Series BT-114, 4.30% (BPA Bankers Trust Co.) 9,005 9,005
Series SG-37, 4.15%
(Liquidity Facility Societe Generale) 11,080 11,080
Series 1993 B, 4.26% (Liquidity Facility Citibank) 13,300 13,300
Series 1995 A, 4.25%
(Liquidity Facility Internationale Nederlanden Bank) 8,900 8,900
Washington Pub. Pwr. Supply Sys.:
Rfdg. (Nuclear Proj. #1) Series 1993-1A1, 4.10%,
LOC Bank of America Nat'l. Trust & Savings, VRDN 33,170 33,170
Bonds:
Rfdg. (Nuclear Proj. #2) Series 1993 B,
4.10% 7/1/96 3,400 3,401
Rfdg. (Nuclear Proj. #3) Series C, 3.75% 7/1/96 2,000 2,000
(Nuclear Pwr. Proj. #1) Series A, 4.20% 7/1/96 1,000 1,001
Participating VRDN, Series 94 B, 4.26%
(Liquidity Facility Citibank) (b) 20,600 20,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
WASHINGTON - CONTINUED
Washington Pub. Pwr. Supply Sys. Elec. Rev. Rfdg.
Series 1993 3-A1, 4.05%, LOC Bank of America, VRDN $ 3,200 $ 3,200
Washington Pub. Pwr. Supply Sys. Tender Option Ctfs.
(Nuclear Project #2) Series BT-61, 4.29%,
(Liquidity Facility Automatic Data Processing Inc.) (b) 2,335 2,335
149,343
WISCONSIN - 2.1%
Augusta Ind. Dev. Rev. Rfdg. (Ball Corp.) Series 1993, 4.15%,
LOC PNC Bank, VRDN 3,100 3,100
Janesville Ind. Dev. Rev. Rfdg. (Senca Foods Corp. Proj.)
Series 1992, 4.35%, LOC ABN-AMRO Bank, VRDN 7,710 7,710
Kenosha Unified School Dist. TRAN 4.50% 9/6/96 10,500 10,516
Menomonee Falls School Dist. TRAN 4.25% 8/30/96 3,200 3,203
Milwaukee Gen. Oblig. Participating VRDN,
Series 1993 R, 4.26%, (Liquidity Facility Citibank) (b) 18,400 18,400
Milwaukee Redev. Auth. Rev. (Bradley Ctr.
Parking Facs. Proj.) Series 1986, 4%,
LOC Nat'l. Westminster Bank, VRDN 800 800
New Berlin School Dist. TRAN 4.25% 8/22/96 3,500 3,503
Wauwatosa Hsg. Auth. Rfdg. Rev. (San Camillo Inc.)
Series 1995 B, 4.20%,
LOC Firstar Bank, Milwaukee, VRDN 7,500 7,500
W. Allis Milwaukee TRAN 4.50% 8/21/96 1,450 1,453
Wisconsin Health & Ed. Facs. Auth. (Daughters of Charity
- -St. Mary's) Series 1992 A, 4.20%, VRDN 10,940 10,940
Wisconsin Health & Ed. Facs. Auth Health Facs. Rev.
(SSM Healthcare Proj.) Series 1990 A, 4%,
LOC Credit Suisse, VRDN 7,300 7,300
74,425
WYOMING - 0.1%
Gillette Campbell Co. Poll. Cont. Rev. Bonds (Pacific Corp.)
Series 1988, 3.50%, tender 5/21/96,
LOC Deutsche Bank 2,500
Uinta County Poll. Cont. Rev. Rfdg. (Chevron USA Inc. Proj.)
Series 1993, 4%, VRDN 2,100
4,600
MULTIPLE STATES - 0.4%
NCNB Tax-Exempt Trust Participating VRDN, Series 1990 A,
4.125%, LOC NationsBank NA (Carolinas) (b) 1,620 1,620
California Student Loan Mktg. Corp. Student Loan Rev. Rfdg.
Series 1993 A, 4.20%, LOC Dresdner Bank AG, VRDN 11,500 11,500
13,120
TOTAL INVESTMENTS - 100% $ 3,596,518
Total Cost for Income Tax Purposes $ 3,596,518
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. 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 $117,000 which will expire on October 31, 1997.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
(EXCEPT PER-SHARE AMOUNT) APRIL 30, 1996 (UNAUDITED)
ASSETS
Investment in securities, at value - $ 3,596,518
See accompanying schedule
Share transactions in process 62,224
Receivable for investments sold 80
Interest receivable 38,830
TOTAL ASSETS 3,697,652
LIABILITIES
Payable to custodian bank $ 48
Payable for investments purchased 7,019
Distributions payable 297
Accrued management fee 934
Other payables and accrued expenses 744
TOTAL LIABILITIES 9,042
NET ASSETS $ 3,688,610
Net Assets consist of:
Paid in capital $ 3,688,872
Accumulated net realized gain (loss) on investments (262)
NET ASSETS, for 3,688,872 shares outstanding $ 3,688,610
NET ASSET VALUE, offering price and redemption price per $1.00
share ($3,688,610 (divided by) 3,688,872 shares)
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
INTEREST INCOME $ 67,137
EXPENSES
Management fee $ 5,491
Transfer agent, accounting and custodian fees and 3,446
expenses
Non-interested trustees' compensation 12
Registration fees 117
Audit 10
Legal 10
Miscellaneous 9
TOTAL EXPENSES 9,095
NET INTEREST INCOME 58,042
NET REALIZED GAIN (LOSS) ON INVESTMENTS (152)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 57,890
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
APRIL 30,1996 OCTOBER 31,
(UNAUDITED) 1995
INCREASE (DECREASE) IN NET ASSETS
Operations $ 58,042 $ 124,306
Net interest income
Net realized gain (loss) (152) 439
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 57,890 124,745
FROM OPERATIONS
Distributions to shareholders from net interest income (58,042) (124,306)
Share transactions at net asset value of $1.00 per share 5,732,717 10,129,110
Proceeds from sales of shares
Reinvestment of distributions from net interest income 55,434 117,967
Cost of shares redeemed (5,705,181) (10,136,278)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 82,970 110,799
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 82,818 111,238
NET ASSETS
Beginning of period 3,605,792 3,494,554
End of period $ 3,688,610 $ 3,605,792
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1996
(UNAUDITED) 1995 1994 1993 1992 1991
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period
Income from .016 .034 .023 .022 .031 .046
Investment
Operations
Net interest
income
Less Distributions (.016) (.034) (.023) (.022) (.031) (.046)
From net interest
income
Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
TOTAL RETURN B 1.58% 3.48% 2.33% 2.23% 3.14% 4.66%
RATIOS AND SUPPLEMENTAL DATA
Net assets, $ 3,689 $ 3,606 $ 3,495 $ 2,936 $ 2,725 $ 2,721
end of period
(in millions)
Ratio of expenses .49% .50% .52% .49% .48% .45%
to average net A
assets
Ratio of net interest 3.16% 3.43% 2.31% 2.21% 3.11% 4.55%
income to A
average net
assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
On April 10, 1996, the Board of Trustees approved a change in the fund's
name from Fidelity Tax-Exempt Money Market Trust to Fidelity Municipal
Money Market Fund. The fund's name change will be effective May 1, 1996.
Fidelity Municipal Money Market Fund (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 financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. 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) 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 .1100% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
management fee. The annual individual fund fee rate is .15%. For the
period, the management fee was equivalent to an annualized rate of .30% of
the fund's 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.
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. 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 $3,142,000 and $206,000, respectively.
For the period, the transfer agent fees were equivalent to an annualized
rate of .17% of the fund's average net assets.
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 $284,000.
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 MUNICIPAL
MONEY MARKET FUNDS
California Municipal Money Market
Connecticut Municipal Money Market
Massachusetts Municipal Money Market
Michigan Municipal Money Market
Municipal Money Market
New Jersey Municipal Money Market
New York Municipal 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 Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
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
