FIDELITY UNION STREET TRUST, N-30D, 1994-10-12

FIDELITY UNION STREET TRUST
N-30D, 1994-10-12

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(2_FIDELITY_LOGOS)SPARTAN(registered trademark)

INTERMEDIATE MUNICIPAL
FUND
ANNUAL REPORT
AUGUST 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 19 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 23 Notes to the financial statements.

REPORT OF INDEPENDENT 26 The auditor's opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS
OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE
FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUND NOR FIDELITY
DISTRIBUTORS
CORPORATION IS A BANK. FOR MORE INFORMATION ON ANY FIDELITY FUND INCLUDING
CHARGES AND
EXPENSES, CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU
INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
The year so far has been an unsettling time for bond investors. The bond
market declined after the Federal Reserve Board raised short-term interest
rates from February through May. These rate hikes caused bond yields to
rise and bond prices to fall. The board raised the rate again in August,
and while nobody knows whether rates will continue to go up, this may be a
good time to review the effect rising rates have on your bond fund
investment, and consider how well your current bond fund holdings match
your investment goals.
Most investors choose bond funds to generate income and to help diversify
their investment portfolios. Despite the recent market downturn, bond
mutual funds can still satisfy these needs. Where investors have felt the
negative effect
of rising rates is in the market value of their investment, which has
eroded as bond prices have fallen. It's important to remember, however,
that this loss in principal is only "on paper" until you sell your shares.
That's why your investing time horizon is key.
If your time horizon is short - one year or less - you may want to consider
shifting all or part of your bond fund investment into short-term
investments.
If you don't need your money within the next year, staying in your bond
fund may be the appropriate strategy for you. The longer your investing
time frame, the better your chances of retaining your principal investment
through periods of rising AND falling rates. For example, if you plan to
use your money in one to two years, a short-term bond fund may be the right
choice. If your time frame is two to four years, a fund with an
intermediate length average maturity may be best.
If you have a longer-term goal - say a child's college education that's 10
years away - you may be willing to ride out the bond market's peaks and
valleys in exchange for the higher potential returns of a longer-term fund.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up
a regular investment plan using the Fidelity Automatic Account Builder.SM
Periodic investment plans do not, of course, assure a profit, nor do they
protect against a loss in a declining market.
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns,
dividends and yields would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan Intermediate Municipal 0.51% 5.75%

Lehman Brothers Municipal Bond Index 0.14% n/a

Average Intermediate Municipal Bond Fund 0.95% n/a

Consumer Price Index 2.90% 3.47%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year or since the fund started on
April 26, 1993. For example, if you invested $1,000 in a fund that had a 5%
return over the past year, you would end up with $1,050. You can compare
these figures to the performance of the Lehman Brothers Municipal Bond
Index - a broad measure of the municipal bond market. To measure how the
fund stacked up against its peers, you can look at the average intermediate
municipal bond fund, which reflects the performance of 93 similar funds
tracked by Lipper Analytical Services. Both benchmarks include reinvested
dividends and capital gains, if any. Comparing the fund's performance to
the Consumer Price Index helps show how your fund did compared to
inflation. (The CPI returns begin on the month end closest to the fund's
start date).
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan Intermediate Municipal 0.51% 4.23%

Lehman Brothers Municipal Bond Index 0.14% n/a

Average Intermediate Municipal Bond Fund 0.95% n/a

Consumer Price Index 2.90% 2.58%

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Intermediate Municipal Fund on April 30, 1993, shortly after the fund
started. As the chart shows, by August 31, 1994, the value of your
investment with dividends reinvested would have grown to $10,549 - a 5.49%
increase on your initial investment. This assumes you still owned the fund
on August 31, 1994, and therefore does not include the effect of the $5
account closeout fee. For comparison, look at how the Lehman Brothers
Municipal Bond Index did over the same period. With dividends reinvested,
the same $10,000 would have grown to $10,469 - a 4.69% increase.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
APRIL 26, 1993
(COMMENCEM
YEAR ENDED ENT OF
AUGUST 31, OPERATIONS) TO
1994 AUGUST 31,
1993

Dividend return 4.99% 1.82%

Capital appreciation return -4.48% 3.39%

Total return 0.51% 5.21%

DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by
the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD
PERIODS ENDED AUGUST 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.32(cents) 25.88(cents) 51.37(cents)

Annualized dividend rate 5.18% 5.23% 5.09%

30-day annualized yield 5.45% - -

30-day annualized tax- 8.52% - -
equivalent yield

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.82 over
the past month, $9.82 over the past six months and $10.10 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 36% federal tax bracket. If the advisor had not reimbursed certain
portfolio expenses during the period shown, the yield and tax-equivalent
yield would have been 5.10% and 7.97%, respectively.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Rising interest rates and inflation
concerns sent U.S. bond prices
sharply lower during the first eight
months of 1994. Yields rose -
and prices fell - on taxable and
tax-free bonds alike. The
heaviest investor selling occurred
from February through May. That
coincided with the Federal
Reserve Board's raising of
short-term interest rates. The Fed
was hoping to head off future
inflation growth that might be
triggered by the improving U.S.
economy. However, bond
investors reacted strongly to any
threat of inflation because
inflation deteriorates the value of
their fixed-rate interest payments.
Two influences roughly offset
each other in the municipal bond
market. First, investor demand
fell due to inflation worries, which
dampened prices. However, the
supply of tax-free bonds fell
sharply as well. The ability of
states, cities and public agencies
to refinance outstanding debt at
lower, more attractive rates was
limited amid a rising interest rate
environment. For the 12 months
ended August 31, 1994, the
Lehman Brothers Municipal Bond
Index - a broad measure of the
tax-free market - had a total
return of 0.14%. By comparison,
the Lehman Brothers Aggregate
Bond Index - a proxy of
investment-grade taxable bonds
- - returned -1.51% during the
same period. Most overseas
bond markets took their cue from
the sell-off in the U.S. The
Salomon Brothers World
Government Bond Index -
which includes U.S. issues -
rose 2.28% for the 12 months.
The J.P. Morgan Emerging
Markets Bond Index returned
1.42%.
An interview with David Murphy, Portfolio Manager of Spartan
Intermediate Municipal Fund
Q. DAVID, HOW DID THE FUND DO?
A. With interest rates rising during the past six months it has been a
difficult period for both the municipal market and the fund. For the six
months ended August 31, 1994, the fund had a total return of -0.96%. That
lagged the average intermediate municipal bond fund's return of -0.28% for
the same period, according to Lipper Analytical Services. For the year
ended August 31, 1994, the fund returned 0.51%, compared to the average
fund's return of 0.95%, again according to Lipper.
Q. WHAT WAS YOUR STRATEGY?
A. Toward the end of 1993, I had structured the fund to take advantage of
what I believed would be a relatively stable interest rate environment. I
did not anticipate how high rates would actually climb. To help do that, I
had a longer-than-average duration of 7.6 years. Duration is a measure of a
fund's sensitivity to changes in interest rates. The longer the fund's
duration, the more sensitive its price is when interest rates rise or fall.
Because of the fund's long duration, it underperformed when interest rates
rose.
Q. ONCE RATES STARTED RISING, WHY DIDN'T YOU JUST REDUCE THE FUND'S
DURATION AND MAKE THE FUND LESS SENSITIVE TO RISING RATES?
A. I did reduce the duration by about 8%. But, I kept the fund's core
structure in place because my long-term view is that inflation will stay
low and we'll see a return to lower long-term interest rates within the
next 18 months. Obviously, I have been challenged in my thinking, but I
believe maintaining this structure will be appropriate for the foreseeable
future. However, I used bond futures to modestly help offset the fund's
volatility.
Q. THERE'S BEEN A LOT OF TALK RECENTLY ABOUT DERIVATIVES. AREN'T FUTURES
ONE TYPE OF DERIVATIVE AND DO YOU USE OTHERS?
A. Yes, a futures contract is one type of financial derivative - meaning
its market value is derived from a security or market index. We've used
futures and options in our municipal bond funds for years. I've recently
used what's known as an inverse floater - whose yield rises as short-term
rates fall, and vice versa. These inverse floaters act like longer-term
bonds, effectively increasing the fund's duration, which is good in a
falling interest rate environment, but can hurt the fund when interest
rates rise. During the past six months, inverse floaters made up less than
5% of the fund's total investments. By using these various derivatives, I
achieve increased flexibility in managing the fund's overall sensitivity to
changes in interest rates, and hopefully, can achieve higher levels of
income.
Q. WHAT WERE SOME OF THE BRIGHT SPOTS AND DISAPPOINTMENTS FOR THE FUND?
A. One positive was the fund's stake in New York City bonds, which
benefited from an improving economy and rising sales taxes. I've recently
cut back the fund's stake in New York, however, because I wanted to lock in
profits and look for opportunities elsewhere. Another positive was student
loan bonds, which can offer as much as 0.75% more in yield than similarly
rated bonds. That's because they carry the risk of being prepaid. However,
now that interest rates have risen, there isn't much of an incentive for
borrowers to pay these loans off early. On the other hand, the fund's 4.5%
stake in Denver Airport bonds didn't fare very well. Delays in the opening
of the new airport, caused by the malfunctioning baggage handling system,
caused these bonds to be downgraded and their prices generally fell. But I
continue to hold these bonds because I think that despite the delays, the
new airport will open in February 1995 and be one of the most efficient
airports in the nation.
Q. WHAT'S YOUR OUTLOOK FOR THE
MUNICIPAL BOND MARKET?
A. I'm optimistic that the worst is behind the municipal bond market,
although there could be some continued volatility. In my view, the
municipal market may have reached a bottom after the Fed's 0.50% interest
rate hike in August. If that view proves to be correct, some fundamental
factors could help drive prices higher. First, the supply of new municipals
issued in 1994 is roughly half of what it was in 1993. Second, I believe
that demand for municipal bonds could increase over the next year or so,
once the market settles. If supply and demand follow these trends,
municipal bond prices could rise.

FUND FACTS
GOAL: to provide high current
income exempt from federal
taxes by investing primarily in
high-grade and medium-grade
securities
START DATE: April 26, 1993
SIZE: as of August 31, 1994,
more than $256 million
MANAGER: David Murphy,
since April 1993; manager,
Spartan California
Intermediate Municipal
Portfolio, since December
1993; Spartan New York
Intermediate Municipal
Portfolio, since December
1993; Spartan
Short-Intermediate Municipal
Fund, since December 1989;
Spartan New Jersey Municipal
High Yield Portfolio, since
April 1991; Fidelity Limited
Term Municipals, since
December 1989; joined
Fidelity in 1989
(checkmark)
DAVID MURPHY'S STRATEGY:
"One of my primary goals is to
generate a high level of
income for the fund. Using
Fidelity's research resources,
I try to identify bonds that will
pay a higher-than-average
income but carry little added
risk. Student loan bonds, for
example, are generally rated
A or higher by Moody's
Investors Service. These are
still investment grade ratings.
These bonds can pay 0.50%
to 0.75% more in yield than
similarly rated bonds, but
carry the risk of being prepaid.
Our research analysts project
these prepayments and
identify the student loan
bonds that are most
attractive.
(solid bullet) General obligation (GO)
bonds - which are backed by
the taxing power of the issuer
- - made up the fund's second
largest sector concentration
at 17.2% on August 31, 1994.
These bonds are attractive, in
part, because improvements
in the economy translated into
higher tax receipts for many
municipalities.
(solid bullet) California was the fund's
largest state concentration at
15.4% of investments at the
end of August 1994. A recent
downgrade of some California
municipal securities was
anticipated and had little
effect on the fund's holding in
this state.
INVESTMENT CHANGES

TOP FIVE STATES AS OF AUGUST 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

California 15.4 12.5

Texas 12.4 14.7

New York 9.1 13.5

Colorado 5.3 7.3

Michigan 5.2 3.6

TOP FIVE SECTORS AS OF AUGUST 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Education 27.3 23.8

General Obligation 17.2 18.4

Health Care 11.7 10.3

Special Tax 9.1 10.6

Electric Revenue 8.0 9.3

AVERAGE YEARS TO MATURITY AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 9.0 9.9

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 7.0 7.6

DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%, FOR EXAMPLE, THE SHARE PRICE OF A FUND WITH A
FIVE-YEAR DURATION WILL FALL ABOUT 5%.
QUALITY DIVERSIFICATION AS OF AUGUST 31, 1994
(MOODY'S RATINGS)

Aaa, Aa, A 61.9%
Baa 26.9%
Ba 1.5%
Non-rated 0.5%
Short-term investments 9.2%
Row: 1, Col: 1, Value: 9.199999999999999
Row: 1, Col: 2, Value: 1.5
Row: 1, Col: 3, Value: 2.5
Row: 1, Col: 4, Value: 25.9
Row: 1, Col: 5, Value: 61.9
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS AUGUST 31, 1994

Showing Percentage of Total Value of Investment in Securities

MUNICIPAL BONDS - 90.8%
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
ALASKA - 4.5%
North Slope Borough (Cap. Appreciation)
Series A:
0% 6/30/01, (MBIA Insured) (f) Aaa $ 12,000,000 $ 8,370,000
0% 6/30/02, (MBIA Insured) Aaa 3,950,000 2,592,188
0% 6/30/03, (MBIA Insured) Aaa 1,500,000 933,750
11,895,938
ARIZONA - 2.0%
Maricopa County School Dist. #28 Rfdg.
(Kyrene Elementary) Series C, 0% 1/1/07,
(FGIC Insured) Aaa 5,900,000 2,883,625
Phoenix Civic Impt. Corp. Excise Tax Rev. Rfdg.
Arpt. Impts. Series A, 5.85% 7/1/01 (c) (e) Aa 2,420,000 2,438,150
5,321,775
CALIFORNIA - 11.5%
ABAG Fin. Auth. Nonprofit Corps. Ctfs. of Prtn.
(Stanford Univ. Hosp.) 5.25% 11/1/06 Aa 2,100,000 2,002,875
California Pub. Wks. Board Lease Rev. Rfdg.
(Dept. of Correction State Prisons) Series A,
5.25% 12/1/04, (AMBAC Insured) A 4,075,000 3,861,063
California Statewide Commty. Dev. Auth. Rev.
Ctfs. of Prtn.:
Rfdg. (Hosp. Triad Healthcare) 5.90% 8/1/01 A+ 1,115,000 1,105,244
(Insured Health Facs. Eskaton, Inc.)
5.70% 5/1/05 A 1,610,000 1,565,725
Carson Redev. Agcy. Rfdg. (Redev. Proj. Area 2)
(Tax Allocation):
5.40% 10/1/01 Baa 1,350,000 1,307,813
5.50% 10/1/02 Baa 1,320,000 1,273,800
5.60% 10/1/03 Baa 1,500,000 1,443,750
5.625% 10/1/04 Baa 1,085,000 1,034,819
Central Valley Fin. Auth. Cogeneration Proj. Rev.
(Carson Ice Gen. Proj.):
5.50% 7/1/01 BBB- 2,300,000 2,259,750
5.60% 7/1/02 BBB- 1,800,000 1,766,250
5.80% 7/1/04 BBB- 1,300,000 1,272,375
Clovis Unified School Dist. (Cap. Appreciation)
Series B, 0% 8/1/02 A1 5,700,000 3,697,875
Los Angeles Hosp. Rev. Ctfs. of Prtn.
(Insured Health Facs. Construction Loan Prog.)
(Hollywood Presbyterian Hosp.) 9% 7/1/13 A 100,000 104,250
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Orange County Agcy. Tax Allocation
(Santa Ana Heights Proj.):
5.70% 9/1/02 Baa1 $ 1,170,000 $ 1,156,838
6% 9/1/05 Baa1 1,335,000 1,318,313
San Bernardino County Ctfs. of Prtn.
(Med. Ctr. Fin. Proj.) 5% 8/1/03 Baa1 2,000,000 1,885,000
Sequoia Hosp. Dist. Rev. Rfdg.:
5.10% 8/15/04 A 1,345,000 1,255,894
5.25% 8/15/05 A 1,415,000 1,321,256
West Covina Ctfs. of Prtn. (Queen of the
Valley Hospital) 6.50% 8/15/09 A 1,000,000 1,001,250
30,634,140
COLORADO - 5.3%
Colorado Health Facs. Auth. Rev. (Rocky
Mountain Adventist) 6.25% 2/1/04 Baa 2,000,000 1,995,000
Denver City & County Arpt. Rev. (c):
Series A:
8.25% 11/15/02 Baa 730,000 763,763
0% 11/15/04 Baa 2,070,000 965,138
Series C:
5.35% 11/15/96 Baa 1,035,000 1,013,006
6.55% 11/15/03 Baa 2,660,000 2,497,075
(Cap. Appreciation) Series D:
6.35% 11/15/01 Baa 2,000,000 1,885,000
0% 11/15/03 Baa 5,320,000 2,686,600
0% 11/15/06 (f) Baa 5,500,000 2,193,125
13,998,707
CONNECTICUT - 1.3%
Connecticut Health & Ed. Facs. Auth. Rev.
(Quinnipiac College) Series D:
4.90% 7/1/98 BBB- 2,300,000 2,268,375
5.625% 7/1/03 BBB- 1,100,000 1,076,625
3,345,000
DISTRICT OF COLUMBIA - 2.1%
District of Columbia Hosp. Rev. Rfdg.
(Medlantic Healthcare Group, Washington
Hosp. Ctr.):
Series A, 5.50% 8/15/06, (MBIA Insured) Aaa 1,100,000 1,076,625
Series B, 6.125% 8/15/99 (f) Baa1 4,520,000 4,559,550
5,636,175
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
HAWAII - 0.4%
Hawaii County Rfdg. & Impt. Unltd. Tax Series A,
5.55% 5/1/10, (FGIC Insured) Aaa $ 1,135,000 $ 1,083,925
ILLINOIS - 3.0%
Illinois Dev. Fin. Auth. Poll. Cont. Rev. Rfdg.
(Commonwealth Edison) 5.30% 1/15/04 Baa2 2,500,000 2,350,000
Illinois Univ. Rev. (Auxiliary Facs. Sys.):
0% 4/1/07, (MBIA Insured) Aaa 2,500,000 1,171,875
0% 4/1/08, (MBIA Insured) Aaa 3,645,000 1,590,131
Metropolitan Pier & Exposition Auth. Dedicated
Tax Rev. (McCormick Place Expansion Proj.)
Series A, 0% 6/15/09, (FGIC Insured) Aaa 5,000,000 2,012,500
Western Illinois Univ. Rev. Rfdg. (Auxiliary Facs.)
0% 4/1/08, (MBIA Insured) Aaa 1,890,000 824,513
7,949,019
INDIANA - 0.4%
Indiana Univ. Rev. Series A, 6% 11/15/04,
(MBIA Insured) Aaa 1,000,000 1,043,750
IOWA - 1.6%
Iowa Student Loan Liquidity Corp. Student Loan
Rev. Rfdg. Sr. Series B, 5.75% 12/1/07 (c) Aaa 4,500,000 4,353,750
MARYLAND - 3.0%
Maryland Health & Higher Ed. Facs. Auth. Rev.
Rfdg. (Howard County General)
5.125% 7/1/03 Baa1 2,220,000 2,103,450
Northeast Maryland Waste Disp. Auth. Solid
Waste Rev. (Montgomery County Resource
Recovery Proj.) Series A (c):
5.80% 7/1/04 A 3,375,000 3,324,375
6% 7/1/07 A 1,000,000 973,750
Prince George County Rev. Rfdg. (Dimensions
Health Corp. Proj.) 4.75% 7/1/03 A 1,750,000 1,618,750
8,020,325
MASSACHUSETTS - 4.1%
New England Ed. Loan Marketing Corp. Rfdg.
(Student Loan):
Series A, 5.70% 7/1/05 (c) A- 7,230,000 7,076,363
Series E, 5% 7/1/99 A- 4,000,000 3,950,000
11,026,363
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
MICHIGAN - 5.2%
Detroit Convention Facs. Rev. Rfdg. (Cobo Hall
Expansion Proj.) 5.125% 9/30/05 (f) A $ 10,830,000 $ 10,085,438
Michigan Hosp. Fin. Auth. Rev.
(Daughters of Charity) 10% 11/1/15 Aa 3,390,000 3,652,725
13,738,163
MISSISSIPPI - 1.5%
Mississippi Higher Ed. Assistance Corp. Student
Loan Rev. Sr. Series B, 5.10% 9/1/00 Aaa 4,000,000 3,940,000
MONTANA - 4.7%
Montana Higher Ed. Student Loan Assistance
Corp. Student Loan Rev. Sr. Series B,
5% 12/1/00 (c) (f) Aaa 12,580,000 12,438,475
MULTIPLE STATES - 0.4%
New England Ed. Loan Marketing Corp. Student
Loan Rev. Rfdg. Sr. Issue A, 6.50% 9/1/02 Aaa 1,000,000 1,052,500
NEW HAMPSHIRE - 1.5%
New Hampshire Higher Ed. & Health Facs. Auth.
Rev. (Frisbie Mem. Hosp.) 5.70% 10/1/04 Baa 4,145,000 3,875,575
NEW MEXICO - 2.0%
New Mexico Edl. Assistance Foundation
Student Loan Rev. Sr. Series IV A-1
7.05% 3/1/10 (c) (e) Aaa 5,375,000 5,388,438
NEW YORK - 8.7%
Hempstead Town Ind. Dev. Agcy. Resources
Recovery Rev. (American Refuel Co.):
7.375% 12/1/05 Baa1 2,500,000 2,615,625
7.40% 12/1/10 Baa1 5,845,000 6,122,638
Metropolitan Trans. Auth. Svc. Contract
(Trans. Facs.) Series 7, 0% 7/1/10 Baa1 600,000 220,500
New York Ctfs. of Prtn. 6.70% 9/1/97 Baa1 1,800,000 1,881,000
New York City Gen. Oblig. Short Rites Series C,
7.26384% 8/1/03 INFL (g) Baa1 4,000,000 4,095,000
New York State Dorm. Auth. Rev.:
(City Univ. Sys.) Series B, 5.75% 7/1/06 Baa1 1,080,000 1,063,800
0% 7/1/06, (MBIA Insured) (c) Aaa 1,000,000 505,000
0% 7/1/07, (MBIA Insured) (c) Aaa 1,885,000 888,306
New York State Local Gov't. Assistance Corp.
Rfdg. Series E, 6% 4/1/08 A 1,205,000 1,209,519
New York State Thruway Svc. Contract Rev.
(Local Highway & Bridge) 5.125% 4/1/07 Baa1 2,000,000 1,867,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Urban Dev. Corp. Rev.
5.30% 1/1/05 Baa1 $ 2,900,000 $ 2,787,625
23,256,513
NORTH CAROLINA - 1.0%
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys.
Rev. Rfdg. Series B, 7.25% 1/1/07 A 2,480,000 2,724,900
OHIO - 0.6%
Franklin County Rev. (Online Computer Library
Ctr. Proj.):
4.80% 4/15/97 - 500,000 493,750
5% 4/15/98 - 560,000 551,600
5.65% 4/15/01 - 340,000 337,450
Ohio Dev. Commty. (Globe Ind. Proj.) Series 1,
7.75% 6/1/96 (c) A- 155,000 156,938
1,539,738
PENNSYLVANIA - 5.1%
Allegheny Arpt. Rev. (Pittsburgh Int'l. Arpt.)
Series A, 5.60% 1/1/06, (MBIA Insured) (c) Aaa 1,250,000 1,235,938
Allegheny County Ind. Dev. Agcy. Rev. Rfdg.
Environmental Impt. Series B, 5.30% 12/1/96 (e) Baa3 4,010,000 3,994,963
Delaware County Unltd. Tax Rfdg. 0% 11/15/02 Aa 3,785,000 2,403,475
Pennsylvania Convention Ctr. Auth. Rev. Rfdg.
Series A, 6.60% 9/1/09 Ba 4,000,000 3,935,000
Philadelphia Hosp. & Higher Ed. Facs. Auth.
Hosp. Rev. (Temple Univ. Hosp.) Series A,
5.60% 11/15/97 Baa1 2,100,000 2,121,000
13,690,376
SOUTH DAKOTA - 2.4%
South Dakota Student Loan Fing. Corp. Student
Loan Rev. Series A, 6.15% 8/1/03 (c) A+ 6,430,000 6,421,963
TENNESSEE - 1.2%
Metropolitan Nashville Arpt. Auth. Arpt. Rev.
Series A, 6.60% 7/1/03, (FGIC Insured) (c) Aaa 1,255,000 1,349,125
Tennessee Hsg. Dev. Auth. Mtg. Fin.
5.70% 1/1/08 A1 2,000,000 1,940,000
3,289,125
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
TEXAS - 12.4%
Brazos Higher Ed. Auth. Student Loan Rfdg.
Series C-1 (c):
5.50% 6/1/02 Aaa $ 4,680,000 $ 4,644,900
5.60% 6/1/03 Aaa 6,750,000 6,690,938
5.70% 6/1/04 Aaa 2,500,000 2,478,125
Central Texas Higher Ed. Auth. Student Loan
Rev. Rfdg. Sr. Series A, 5.10% 12/1/03 Aaa 5,000,000 4,756,250
Conroe Independent School Dist. Lot B Rfdg.:
0% 2/1/02, (PSF Guaranteed) Aaa 1,000,000 670,000
0% 2/1/03, (PSF Guaranteed) Aaa 2,025,000 1,275,750
Cypress Fairbanks Independent School Dist.
Unltd. Tax Rfdg.:
0% 2/1/02, (PSF Guaranteed) Aaa 5,105,000 3,420,350
0% 2/1/03, (PSF Guaranteed) Aaa 3,710,000 2,337,300
Houston Independent School Dist. Rfdg. (Cap.
Appreciation) 0% 8/15/12, (PSF Guaranteed) Aaa 6,000,000 1,927,500
Katy Independent School Dist. Rfdg. Ltd. Tax
Series A, 0% 2/15/07, (PSF Guaranteed) Aaa 400,000 191,000
Socorro Independent School Dist. Rfdg. Unltd. Tax:
0% 9/1/04, (PSF Guaranteed) Aaa 3,000,000 1,713,750
0% 9/1/05, (PSF Guaranteed) Aaa 2,400,000 1,275,000
Texas Muni. Pwr. Agcy. Rev. Rfdg.:
9% 9/1/97, (Escrowed to Maturity) (d) A1 500,000 560,625
0% 9/1/07, (AMBAC Insured) Aaa 2,500,000 1,153,125
33,094,613
UTAH - 0.3%
Salt Lake County Unltd. Tax Wtr. Conservancy
Dist. Rev. (Cap. Appreciation) Series A,
0% 10/1/05, (AMBAC Insured) Aaa 1,650,000 874,500
WASHINGTON - 4.6%
Washington State Pub. Pwr. Supply Sys. Rfdg.:
Nuclear Proj. #2 Rev. 5.60% 7/1/07 Aa 6,000,000 5,745,000
Nuclear Proj. #3 Rev.:
Series B:
5.10% 7/1/04, (FGIC Insured) Aaa 1,955,000 1,869,460
0% 7/1/05, (MBIA Insured) Aaa 290,000 153,700
0% 7/1/07 Aa 4,000,000 1,780,000
0% 7/1/10 Aa 2,250,000 807,188
Series C, 0% 7/1/13 Aa 6,030,000 1,733,625
12,088,973
TOTAL MUNICIPAL BONDS
(Cost $250,451,318) 241,722,719
MUNICIPAL NOTES (B) - 9.2%
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
CALIFORNIA - 3.9%
San Bernardino County TRAN, 4.50% 7/31/95 SP-1+ $ 5,000,000 $ 4,994,950
San Bernardino County Multi. Family Hsg. Rev.
(Cedarbrook Terrace Apts.) Series1990 A,
4.25%, LOC Sumitomo Trust &
Banking Ltd., VRDN A-2 5,300,000 5,300,000
10,294,950
CONNECTICUT - 0.4%
Connecticut Spl. Assessment Unemployment Rev.
Series 1993 B, 3.05%, LOC Industrial Bank of
Japan, Mitsubishi Bank Ltd. Japan, VRDN VMIG 1 1,000,000 1,000,000
ILLINOIS - 0.5%
Chicago O'Hare Int'l. Arpt. Spl. Facs. Rev.
(American Airlines, Inc.) Series 1984 B, 3.50%,
LOC Long-Term Cr. Bank of Japan, VRDN P-2 1,300,000 1,300,000
INDIANA - 0.7%
Indiana Health Facs. Fin. Auth. Rev. (Cap. Access
Designated Pool) Series 1992, 3.15%,
LOC Comerica Bank, VRDN VMIG 1 1,800,000 1,800,000
NEW YORK - 0.4%
New York Envir. Facs. Corp. Research Recovery
Rev. (Hunting, Inc. Proj.) Series 1989, 3.25%,
LOC Union Bank of Switzerland, VRDN A-1+ 1,200,000 1,200,000
VIRGINIA - 0.7%
Richmond Ind. Dev. Auth. (Cogentrix Richmond,
Inc. Proj.) Series 1990 A, 3.35%, LOC Banque
Paribas, VRDN - 2,000,000 2,000,000
WISCONSIN - 2.1%
Nekoosa Poll. Cont. Rev. Rfdg. (Nekoosa
Papers, Inc.) 3.35%, LOC Long-Term Cr.
Bank of Japan, VRDN VMIG 2 3,000,000 3,000,000
Wisconsin Gen. Oblig. TRAN Series 1994 A,
4.5% 6/15/95 MIG 1 2,500,000 2,510,650
5,510,650
WYOMING - 0.5%
Platte County Poll. Cont. Rev. Rfdg. Series 1984 A,
3.25%, LOC Chemical Bank, VRDN P-1 1,400,000 1,400,000
TOTAL MUNICIPAL NOTES
(Cost $24,542,655) 24,505,600
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $274,993,973) $ 266,228,319
SECURITY TYPE ABBREVIATIONS
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(c) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(f) A portion of the security was pledged to cover margin requirements for
delayed delivery purchases. At the period end, the value of securities
pledged amounted to $21,906,269.
(g) Coupon is inversely indexed to a floating interest rate. The price will
be more volatile than the price of a comparable fixed rate security. The
rate shown is the rate at period end.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 54.6% AAA, AA, A 46.6%
Baa 23.7% BBB 14.0%
Ba 1.5% BB 7.5%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.5%
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Education 27.3%
General Obligation 17.2
Health Care 11.7
Others (individually less than 10%) 43.8
TOTAL 100.0%
INCOME TAX INFORMATION
At August 31, 1994, the aggregate cost of investment securities for income
tax purposes was $274,993,973. Net unrealized depreciation aggregated
$8,765,654, of which $200,251 related to appreciated investment securities
and $8,965,905 related to depreciated investment securities.
The fund has elected to defer to its fiscal year ending August 31, 1995
$2,716,995 of losses recognized during the period November 1, 1993 to
August 31, 1994.
The fund hereby designates $34,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 31, 1994

ASSETS

Investment in securities, at value (cost $274,993,973) - $ 266,228,319
See accompanying schedule

Cash 78,235

Receivable for investments sold on delayed delivery 7,371,695
basis

Interest receivable 2,647,878

Receivable from investment adviser for expense 54,099
reductions

TOTAL ASSETS 276,380,226

LIABILITIES

Payable for investments purchased on delayed $ 19,635,000
delivery basis

Payable for fund shares redeemed 158,883

Dividends payable 185,675

Accrued management fee 118,936

Payable for daily variation on futures contracts 12,954

TOTAL LIABILITIES 20,111,448

NET ASSETS $ 256,268,778

Net Assets consist of:

Paid in capital $ 267,751,427

Accumulated undistributed net realized gain (loss) on (2,716,995)
investments

Net unrealized appreciation (depreciation) on (8,765,654)
investments

NET ASSETS, for 26,049,375 shares outstanding $ 256,268,778

NET ASSET VALUE, offering price and redemption price per $9.84
share ($256,268,778 (divided by) shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1994

INTEREST INCOME $ 14,061,371

EXPENSES

Management fee $ 1,459,525

Non-interested trustees' compensation 1,576

Interest 141

Total expenses before reductions 1,461,242

Expense reductions (916,717) 544,525

NET INTEREST INCOME 13,516,846

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (2,677,155)

Futures contracts 434,813 (2,242,342)

Change in net unrealized appreciation (depreciation) on (12,347,494)
investment securities

NET GAIN (LOSS) (14,589,836)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (1,072,990)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED APRIL 26, 1993
AUGUST 31, (COMMENCEMENT
1994 OF OPERATIONS) TO
AUGUST 31,
1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 13,516,846 $ 1,506,911
Net interest income

Net realized gain (loss) (2,242,342) 379,011

Change in net unrealized appreciation (depreciation) (12,347,494) 3,581,840

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (1,072,990) 5,467,762
FROM OPERATIONS

Distributions to shareholders: (13,516,846) (1,506,911)
From net interest income

From net realized gain (369,834) -

In excess of net realized gain (625,060) -

TOTAL DISTRIBUTIONS (14,511,740) (1,506,911)

Share transactions 350,398,614 231,054,621
Net proceeds from sales of shares

Reinvestment of distributions 12,039,415 1,306,002

Cost of shares redeemed (309,984,273) (16,921,722)

Net increase (decrease) in net assets resulting from 52,453,756 215,438,901
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS 36,869,026 219,399,752

NET ASSETS

Beginning of period 219,399,752 -

End of period $ 256,268,778 $ 219,399,752

OTHER INFORMATION
Shares

Sold 34,393,131 22,755,876

Issued in reinvestment of distributions 1,192,986 127,558

Redeemed (30,753,385) (1,666,791)

Net increase (decrease) 4,832,732 21,216,643

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED APRIL 26, 1993
AUGUST 31, (COMMENCEMEN
T OF OPERATIONS)
TO AUGUST 31,

1994 1993

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.340 $ 10.000

Income from Investment Operations .514 .177
Net interest income

Net realized and unrealized gain (loss) (.460) .340

Total from investment operations .054 .517

Less Distributions (.514) (.177)
From net interest income

From net realized gain on investments (.010) -

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
In excess of net realized gain on investments (.030) -

Total distributions (.554) (.177)

Net asset value, end of period $ 9.840 $ 10.340

TOTAL RETURN B,C,D .52% 5.22%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 256,269 $ 219,400

Ratio of expenses to average net assetsD .20% -

Ratio of expenses to average net assets before expense .55% .55%A
reductionsD

Ratio of net interest income to average net assets 5.09% 5.20%A

Portfolio turnover rate 69% 95%A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
D SEE NOTE 6 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1994

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Intermediate Municipal Fund (the fund) is a fund of Fidelity Union
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 Massachusetts business trust. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days are valued either at amortized cost or original
cost plus accrued interest, both of which approximate current value.
Securities for which quotations are not readily available through the
pricing service are valued at their fair value as determined in good faith
under consistently applied procedures under the general supervision of the
Board of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
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.
Distributions to shareholders from realized capital gains on investments,
if any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures transactions and losses deferred due to excise tax regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net investment income per share disclosed. Any taxable gain
remaining at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS.
The fund may purchase or sell securities on a when-issued or forward
commitment basis. Payment and delivery may take place a month or more after
the date of the transaction. The price of the underlying securities and the
date when the securities will be delivered and paid for are fixed at the
time the transaction is negotiated. The fund identifies securities as
segregated in its custodial records with a value at least equal to the
amount of the purchase commitment.
FUTURES CONTRACTS AND OPTIONS.
The fund may invest in futures and options contracts, and may also write
options. Futures Contracts reflect the extent of the involvement the fund
has in the particular classes of instruments. Risks may be caused by an
imperfect correlation between movements in the price of the instruments and
the price of the underlying securities and interest rates. Risks also may
arise if there is an illiquid secondary market for the instruments, or due
to the inability of counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $207,955,209 and $174,872,178, respectively.
The market value of futures contracts opened and closed during the period
amounted to $89,187,325 and $88,987,160, respectively.
4. 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 .55% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $8,681.
5. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities
5. BANK BORROWINGS - CONTINUED
having a market value in excess of 220% of the total bank borrowings. The
interest rate on the borrowings is the bank's base rate, as revised from
time to time. The maximum loan and the average daily loan balances during
the periods for which loans were outstanding amounted to $1,400,000. The
weighted average interest rate was 3.625%.
6. 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 .10% to .30% of average net
assets and the reimbursement reduced expenses by $916,717.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Union Street Trust and the Shareholders of
Spartan Intermediate Municipal Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Union Street Trust: Spartan Intermediate Municipal Fund, including
the schedule of portfolio investments, as of August 31, 1994, and the
related statement of operations for the year then ended, the statement of
changes in net assets, and the financial highlights for the year then ended
and for the period April 26, 1993 (commencement of operations) to August
31, 1993. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1994 by correspondence with the custodian
and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Union Street Trust: Spartan Intermediate Municipal Fund as of
August 31, 1994, the results of its operations for the year then ended, the
changes in its net assets, and the financial highlights for the year then
ended and for the period April 26, 1993 (commencement of operations) to
August 31, 1993, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
September 29, 1994
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.

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
4611 Sharon Road
Charlotte, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
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AGGRESSIVE MUNICIPAL
FUND
ANNUAL REPORT
AUGUST 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 18 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 22 Notes to the financial statements.

REPORT OF INDEPENDENT 24 The auditor's opinion.
ACCOUNTANTS

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan Aggressive Municipal 0.60% 6.27%

Lehman Brothers Municipal Bond Index 0.14% n/a

Average High Yield Municipal Bond Fund 0.08% n/a

Consumer Price Index 2.90% 3.47%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year or since the fund started on
April 29, 1993. For example, if you invested $1,000 in a fund that had a 5%
return over the past year, you would end up with $1,050. You can compare
these figures to the performance of the Lehman Brothers Municipal Bond
index - a broad gauge of the municipal bond market. To measure how the fund
stacked up against its peers, you can look at the average high yield
municipal bond fund, which reflects the perform-ance of 35 similar funds
tracked by
Lipper Analytical Services. Both benchmarks include reinvested dividends
and capital gains, if any. Comparing the fund's performance to the consumer
price index helps show how your fund did compared to inflation. (The CPI
returns begin on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan Aggressive Municipal 0.60% 4.64%

Lehman Brothers Municipal Bond Index 0.14% n/a

Average High Yield Municipal Bond Fund 0.08% n/a

Consumer Price Index 2.90% 2.58%

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. In the fund's next report we'll report these
numbers for the fund and the benchmarks.
$10,000 OVER LIFE OF FUND
Spart Aggr.Muni Fund (442)Municipal Bond In
04/30/93 10000.00 10000.00
05/31/93 10111.64 10056.00
06/30/93 10292.53 10223.94
07/31/93 10315.65 10237.23
08/31/93 10551.38 10450.16
09/30/93 10724.42 10569.29
10/31/93 10748.10 10589.37
11/30/93 10656.40 10496.19
12/31/93 10896.03 10717.66
01/31/94 11021.66 10839.84
02/28/94 10776.71 10559.09
03/31/94 10253.21 10129.33
04/30/94 10327.49 10215.43
05/31/94 10413.95 10304.31
06/30/94 10368.72 10244.54
07/31/94 10562.24 10432.02
08/31/94 10616.12 10468.53
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Aggressive Municipal Fund on April 30, 1993, shortly after the fund
started. As the chart shows, by August 31, 1994, the value of your
investment with dividends reinvested would have grown to $10,616 - a 6.16%
increase on your initial investment. This assumes you still owned the fund
on August 31, 1994 and therefore does not include the effect of the $5
account closeout fee. For comparison, look at how the Lehman Brothers
Municipal Bond Index did over the same period. With dividends reinvested,
the same $10,000 would have grown to $10,469 - a 4.69% increase.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
APRIL 29, 1993
(COMMENCEM
YEAR ENDED ENT OF
AUGUST 31, OPERATIONS) TO
1994 AUGUST 31,
1993

Dividend return 5.84% 2.14%

Capital appreciation return -5.24% 3.49%
Total return 0.60% 5.63%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED AUGUST 31, 1994 PAST PAST 6 PAST
MONTH MONTHS 1 YEAR

Dividends per share 4.99(cents) 30.16(cents) 60.34(cents)

Annualized dividend rate 6.03% 6.12% 5.97%

30-day annualized yield 6.36% - -

30-day annualized tax-equivalent 9.94% - -
yield

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.75 over
the past month, $9.78 over the past six months and $10.10 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 36% tax bracket.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Rising interest rates and inflation
concerns sent U.S. bond prices
sharply lower during the first eight
months of 1994. Yields rose -
and prices fell - on taxable and
tax-free bonds alike. The
heaviest investor selling occurred
from February through May. That
coincided with the Federal
Reserve Board's raising of
short-term interest rates. The Fed
was hoping to head off future
inflation growth that might be
triggered by the improving U.S.
economy. However, bond
investors reacted strongly to any
threat of inflation because
inflation deteriorates the value of
their fixed-rate interest payments.
Two influences roughly offset
each other in the municipal bond
market. First, investor demand
fell due to inflation worries, which
dampened prices. However, the
supply of tax-free bonds fell
sharply as well. The ability of
states, cities and public agencies
to refinance outstanding debt at
lower, more attractive rates was
limited amid a rising interest rate
environment. For the 12 months
ended August 31, 1994, the
Lehman Brothers Municipal Bond
Index - a broad measure of the
tax-free market - had a total
return of 0.14%. By comparison,
the Lehman Brothers Aggregate
Bond Index - a proxy of
investment-grade taxable bonds
- - returned -1.51% during the
same period. Most overseas
bond markets took their cue from
the sell-off in the U.S. The
Salomon Brothers World
Government Bond Index -
which includes U.S. issues -
rose 2.28% for the 12 months.
The J.P. Morgan Emerging
Markets Bond Index returned
1.42%.
An interview with Anne Punzak, Portfolio Manager of Spartan Aggressive
Municipal Fund
Q. ANNE, HOW DID THE FUND DO?
A. About average, although with interest rates rising during the past six
months it has been a difficult period for both the municipal market and the
fund. For the six months ended August 31, 1994, the fund had a total return
of -1.50%. That was in line with the average high yield municipal bond
fund's return of -1.47% for the same period, according to Lipper Analytical
Services. For the year ended August 31, 1994, the fund returned 0.60%,
compared to the average fund's return of 0.08%, again according to Lipper.
Q. WHAT WAS YOUR STRATEGY?
A. I kept the fund's duration relatively long. Duration is a measure of the
fund's sensitivity to interest rate changes. The longer the duration, the
more sensitive the fund is to changes in interest rates. When interest
rates first began rising, having a long duration hurt the fund's
performance. But when the municipal market rebounded from March through
June, having a longer duration helped. Earlier in 1994, I used futures to
help shorten the fund's duration. When the market fell, the futures
generally reduced the volatility of the fund.
Q. THERE'S BEEN A LOT OF TALK RECENTLY ABOUT DERIVATIVES. AREN'T FUTURES
ONE TYPE OF DERIVATIVE AND DO YOU USE OTHERS?
A. Yes, a futures contract is one type of financial derivative - meaning
its market value is derived from a security or market index. We've used
futures and options in our municipal bond funds for years. More recently,
I've used what's known as an inverse floater - whose yield rises as
short-term rates fall, and vice versa. Inverse floaters act like
longer-term bonds, effectively increasing a fund's duration, which is good
in a falling interest rate environment but can hurt the fund when interest
rates rise. During the past six months, inverse floaters made up less than
5% of the fund's total investments. I have no current plans to increase
that stake further. By using these various derivatives, I achieve increased
flexibility in managing the fund's overall sensitivity to changes in
interest rates, and hopefully, can achieve higher levels of income.
Q. IN THE LIGHT OF POTENTIAL HEALTH CARE REFORM, WHY HAVE YOU CONCENTRATED
NEARLY A QUARTER OF THE FUND'S INVESTMENTS IN HEALTH CARE BONDS?
A. One reason is that health care bonds can offer very attractive yields. I
continue to focus on hospitals located in growth suburban areas with
established HMO relationships and low cost structures. In my view, this
type of health organization could not only thrive, but prosper in a more
regulated health care environment. If that happens, these bonds could
improve in price as well as offer relatively attractive yields.
Q. WERE THERE ANY CHANGES IN YOUR STRATEGY OVER THE PAST SIX MONTHS?
A. I've increased the fund's stake in industrial revenue bonds, which are
often used by private sector companies to fund their pollution control
programs. Lately, I've been buying industrial revenue bonds backed by Delta
Airlines. We think these bonds are attractive because Delta has done a good
job reducing its costs, which should help its financial health.
Q. ON THE OTHER HAND, YOU'VE SLIGHTLY REDUCED THE FUND'S STAKE IN ELECTRIC
UTILITY BONDS . . .
A. Yes, I did that because I thought concern over increased competition
among privately owned electric utilities might spill over into the
municipal market. I've held on to electric utility bonds that I think will
be able to survive in a more competitive environment.
Q. WHAT'S YOUR OUTLOOK FOR THE
HIGH-YIELD MUNICIPAL MARKET?
A. I think that high-yield bonds will continue to benefit from improvements
in the economy. In fact, we've started to see some evidence of that trend
already. During 1993, more bonds' credit ratings were upgraded than
downgraded, for the first time since the late 1980s. Also, supply and
demand factors are starting to work in municipal bonds' favor.
Q. WHAT ARE THOSE FACTORS?
A. This year, the supply of new bonds issued from January through August
was down about 40% from the same period last year. Shortages may crop up
soon, which eventually should be favorable for municipal bonds. While I
expect there to be some short-term volatility in the municipal market, it
probably won't be as dramatic as in the past six months.

FUND FACTS
GOAL: to provide high current
income exempt from federal
taxes by investing primarily in
medium- and lower-quality
securities
START DATE: April 29, 1993
SIZE: as of August 31, 1994,
more than $61 million
MANAGER: Anne Punzak, since
April 1993; manager, Fidelity
High Yield Tax-Free Portfolio,
since October 1993; Spartan
Florida Municipal Income
Portfolio, since March 1992;
Fidelity Insured Tax-Free
Portfolio, October 1989 to
September 1993; joined Fidelity
in 1985
(checkmark)
ANNE PUNZAK'S STRATEGY:
"When interest rates were
falling - as they were over
the past couple of years - it
paid to concentrate on price
appreciation more than
income as a way to get the
highest total return for the
fund. As interest rates fell, the
price of bonds rose. But now,
it looks fairly certain that
interest rates won't come
down much from current
levels. Given that, I'll focus on
generating a higher income.
In my opinion, higher-yielding,
lower-rated bonds that are
carefully researched by
Fidelity's staff - which is one
of the largest in the industry
- - should help boost the
fund's total return. With
further improvements in the
economy, the credit quality of
these lower-rated bonds most
likely will improve. "
(solid bullet) California was the fund's
largest state concentration at
13.1% of investments at the
end of August, 1994. Of these
investments, about three
quarters were insured and the
remaining California bonds
weren't backed by the state.
As a result, very little of the
fund's holdings were affected
by the recent downgrade of
some California municipal
bonds.
(solid bullet) Health care bonds were the
fund's largest industry sector
at 24.6% of investments on
August 31, 1994. These
bonds are attractive, in part,
because of their relatively
high yields.
INVESTMENT CHANGES

TOP FIVE STATES AS OF AUGUST 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

California 13.1 10.1

Kentucky 9.7 8.5

Pennsylvania 9.1 6.0

Michigan 8.1 7.7

Indiana 6.0 4.7

TOP FIVE SECTORS AS OF AUGUST 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Health Care 24.6 28.6

Industrial Development 24.6 17.3

Electric Revenue 10.4 12.2

Housing 9.0 3.6

Special Tax 7.6 4.4

AVERAGE YEARS TO MATURITY AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 20.4 20.1

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 9.1 9.5

DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%,
FOR EXAMPLE, THE SHARE PRICE OF A FUND WITH A FIVE-YEAR DURATION WILL FALL
ABOUT 5%.
QUALITY DIVERSIFICATION AS OF AUGUST 31, 1994
(MOODY'S RATINGS)

Aaa 14.0%
Aa, A 20.3%
Baa 18.8%
Ba or B 24.3%
Non-rated 22.6%
Row: 1, Col: 1, Value: 22.6
Row: 1, Col: 2, Value: 24.3
Row: 1, Col: 3, Value: 18.8
Row: 1, Col: 4, Value: 20.3
Row: 1, Col: 5, Value: 14.0
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS AUGUST 31, 1994

Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 97.7 %
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
ALABAMA - 1.2 %
Cullman Med. Park South Med. Clinic Board
Rev. (Cullman Reg. Med. Ctr.)
Series A, 6.50% 2/15/13 Baa $ 750,000 $ 706,875
ARKANSAS - 0.9 %
Fayetteville Pub. Facs. Board. Rev. Rfdg.
(Butterfield Trail Village Proj.)
Series A, 8.25% 9/1/00 - 550,000 552,063
CALIFORNIA - 13.1 %
California Pub. Works Board Lease Rev. Rfdg.:
(Dept. of Corrections - Del Norte):
Series C, 5% 12/1/07, (MBIA Insured) Aaa 770,000 703,588
Series S, 5.125%12/1/08, (MBIA Insured) Aaa 750,000 687,188
California Statewide Commty. Dev. Corp. Rev.
Ctfs. of Partn. (Sisters of Charity Leavenworth)
5% 12/1/23 Aa 500,000 401,250
Central California Jt. Pwrs. Health Fing. Auth.
Rfdg. (Commty. Hosp. of Central California Proj.)
5% 2/1/23 A 1,000,000 765,000
La Quinta Redev. Agcy. Tax Allocation Rfdg.
(Redev. Proj. Area #1) 7.30% 9/1/12
(MBIA Insured) Aaa 470,000 537,563
Los Angeles Bldg. Auth. Lease Rev. Rfdg.
(Califronia St. Dept. Gen. Svcs.)
Series A, 5.625% 5/1/11 A 1,000,000 922,500
Los Angeles Dept. Wtr & Pwr. Plant Rev.
4.75% 8/15/16 Aa 1,000,000 803,750
San Bernardino County Ctfs. Partn.
(Med Ctr. Fing. Proj.) 5.50% 8/1/17 Baa1 1,000,000 866,250
Santa Margarita/Dana Point Auth. Rev.
(Impt. Dists. 1-2-2A & 8) Series A
7.25% 8/1/10, (MBIA Insured) Aaa 1,045,000 1,191,300
So. Orange County Pub. Fin. Auth. Spl. Tax Rev.
(Foothill Area) Series C 8% 8/15/08
(FGIC Insured) Aaa 500,000 601,250
Upland Ctfs. Partn. (San Antonio Commty. Hosp.)
5.25% 1/1/08 A 500,000 453,125
7,932,764
COLORADO - 5.7 %
Colorado Health Facs. Auth. Rev.:
(Hosp.-Swedish Med. Ctr. Proj.)
Series A, 6.80% 1/1/23 Baa1 500,000 499,375
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
COLORADO - CONTINUED
Colorado Health Facs. Auth. Rev.: - continued
(PSL Health Sys. Proj.) Series A,
6.875% 2/15/23 Baa1 $ 1,850,000 $ 1,836,125
(Rocky Mountain Adventist)
6.625% 2/1/13 Baa 1,000,000 972,500
Colorado Springs Arpt. Rev. (Cap. Appreciation)
Series C, 0% 1/1/06 BBB 250,000 122,500
3,430,500
CONNECTICUT - 2.4 %
Connecticut Health & Ed. Facs. Auth. Rev.
(Quinnipiac Coll.) Series D, 6%, 7/1/13 BBB- 1,000,000 952,500
Connecticut Hsg. Fin. Auth.
(Hsg. Mortgage Fin. Prog.)
Subseries B-1, 6.50% 5/15/18 Aa 500,000 503,750
1,456,250
ILLINOIS - 3.4 %
Chicago O'Hare Int'l. Arpt. Spl. Facs. Rev.
(American Airlines, Inc. Proj.) Series A,
7.875% 11/1/25 (b) Baa2 400,000 415,500
Illinois Dev. Fin. Auth. Solid Wst. Disp. Rev.
(Ford Heights Wst. Tire Proj.)
7.875% 4/1/11 (b) - 1,100,000 1,116,500
Metropolitan Pier & Expo Auth. Rfdg. (Cap.
Appreciation) (McCormick Place Expansion
Proj.) 0% 6/15/08, (MBIA Insured) Aaa 1,155,000 496,650
2,028,650
INDIANA - 6.0 %
Burns Hbr. Solid Waste Disp. Facs. Rev.
(Bethlehem Steel Proj.) 8% 4/1/24 (b) - 1,000,000 1,051,250
Fishers Econ. Dev. Rev. (1st Mtg. United
Student Funds, Inc.) 8.375% 9/1/14 - 1,500,000 1,556,250
Greensburg Ind. Economic Dev. (Kroger Co.
Proj.) Rev. Rfdg. 7.25% 6/1/11 Ba2 1,000,000 1,001,250
3,608,750
KENTUCKY - 9.7 %
Kenton County Arpt. Board Arpt. Rev.
(Spl. Facs. Delta Airlines Proj. A) (b):
7.50% 2/1/20 Ba1 1,085,000 1,079,575
7.125% 2/1/21 Ba1 2,000,000 1,910,000
6.125% 2/1/22 Ba1 1,000,000 846,250
Owensboro Hosp. Rev. (Children's Psychiatric
Hosp.Western Proj.) 13% 11/1/10 - 930,000 974,175
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
KENTUCKY - CONTINUED
Winchester Ind. Bldg. Rev. Rfdg. (Kroger Co.)
7.75% 7/1/12 Ba2 $ 1,000,000 $ 1,051,250
5,861,250
LOUISIANA - 1.7 %
Port New Orleans Ind. Dev. Rev. Rfdg.
(Continental Grain Co. Proj.) 7.50% 7/1/13 BB- 1,000,000 1,001,250
MASSACHUSETTS - 3.3 %
Massachusetts Hsg. Fin. Agcy. (Hsg. Rev. Rental)
Series A, 6.60% 7/1/14, (AMBAC Insured) (b) Aaa 1,500,000 1,503,750
Massachusetts Ind. Fin. Agcy. 8.625% 10/1/23 - 300,000 291,750
Massachusetts Muni. Wholesale Elec. Co. Pwr.
Supply Sys. Rev. Series A, 6.92% 7/1/18 (c) Aaa 250,000 201,563
1,997,063
MICHIGAN - 8.1 %
Greater Detroit Resources Recovery Auth. Rev.
Series G, 9.25% 12/13/08 BBB- 1,000,000 1,063,750
Michigan Hosp. Fin. Auth. Rev. Rfdg.
(Detroit-Macomb Hosp. Corp) Series A:
7.30% 6/1/01 B 750,000 740,625
7.40% 6/1/13 B 500,000 483,750
(McLaren Obligated Group), Series A,
4.50% 10/15/21 A1 350,000 255,500
(Pontiac Osteopathic Hosp.) 6% 2/1/24 Baa1 1,000,000 881,250
(Saratoga Commty. Hosp.) 8.75% 6/1/10 -- 485,000 518,950
Three Rivers Area Hosp. Rev. Series A:
10.80% 11/1/04 - 180,000 187,875
10.90% 11/1/05 - 215,000 224,675
11% 11/1/06 - 235,000 245,869
11% 11/1/07 - 265,000 277,256
4,879,500
MINNESOTA - 0.8 %
Minnesota Hsg. Fin. Agcy. (Single Family Mtg.)
Series L, 6.7% 7/1/20 (b) Aa 500,000 505,625
MISSOURI - 0.8 %
Kansas City Ind. Dev. Auth. (Kingswood United
Methodist Manor Proj.) Series 1993,
9% 1 1/15/13 - 500,000 500,625
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
NEVADA - 4.3 %
Clark County Ind. Dev. Rev. (Southwest Gas
Corp.) (b):
Series A, 6.50% 12/1/33 Ba1 $ 1,000,000 $ 920,000
Series B, 7.50% 9/1/32 Ba1 1,175,000 1,216,125
Las Vegas Redev. Agcy. Tax Increment Rev.
(Sub. Lien Fremont St. Proj. A) 6.10% 6/15/14 BBB+ 500,000 466,875
2,603,000
NEW JERSEY - 2.7 %
Camden County Impt. Auth. Lease Rev.
(Dockside Refridgerated (Holt) 8.40%, 4/1/24 - 500,000 520,625
New Jersey Economic Dev. Auth.
(Market Transition Fac.) Rev. Sr. Lien Series A,
7% 7/1/04, (MBIA Insured) Aaa 1,000,000 1,113,750
1,634,375
NEW MEXICO - 4.3 %
Albuquerque Retirement Facs. Rev. Rfdg.
(La Vida Liena Proj.) Series A, 8.85% 2/1/23 - 200,000 203,000
Farmington Poll. Cont. Rev.:
(Pub. Svc. Co. of New Mexico San Juan Proj.),
Series A, 6% 3/1/08 Ba2 2,040,000 1,938,000
6.40% 8/15/23 Ba2 500,000 460,000
2,601,000
NEW YORK - 5.8 %
New York City:
Series B, 5.60% 8/15/06 Baa1 350,000 330,313
Series E:
5.70% 8/1/08 Baa1 500,000 471,250
5.70% 8/1/09 Baa1 220,000 204,325
New York City Ind. Dev. Agcy. Spl. Facs. Rev.
(Terminal One Group Assoc. Proj.)
6% 1/1/19 (b) A 1,000,000 950,000
New York State Dorm. Auth. Rev. Rfdg. Series A :
(State Univ. Edl. Facs.):
5.50% 5/15/13 Baa1 250,000 227,813
5.25% 5/15/15 Baa1 650,000 568,750
New York State Local Govt. Assistance Corp.
Rfdg. Series C, 5.50% 4/1/17 A 850,000 774,563
3,527,014
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
NORTH CAROLINA - 4.6 %
North Carolina Eastern Muni. Pwr. Agcy.
Pwr. Sys. Rev. Rfdg. Series C, 5% 1/1/21 A $ 1,000,000 $ 807,500
North Carolina Hsg. Fin. Agcy.
Series V, 6.80% 9/1/25 (b) Aa 1,960,000 1,967,350
2,774,850
OREGON - 0.8 %
Eugene Elec. Util. Rev. Series C,
5.80% 8/1/19 A1 500,000 484,375
PENNSYLVANIA - 9.1 %
Chartiers Valley Ind. & Commercial Dev. Auth.
1st Mtg. Rev. Rfdg. (United Methodist Health
Ctr.) Series 1988 A, 9.50% 12/1/15 - 150,000 156,563
Delaware County Auth. Rev. :
(First Mtg. Riddle Village Proj.) 8% 6/1/99 - 350,000 356,563
(Riddle Village Proj.) 7% 6/1/00 - 600,000 599,250
Montgomery County Higher Ed. & Health Auth.
Hosp. Rev. (United Hosp., Inc.):
Series A, 8.375% 11/1/03 Ba1 135,000 141,919
Series B, 7.50% 11/1/15 Ba1 165,000 165,000
Pennsylvania Convention Ctr. Auth. Rev Rfdg.
Series A, 6.70% 9/1/14 Ba 1,500,000 1,464,375
Philadelphia Hosp. & Higher Ed. Facs. Auth. Rev.
(Graduate Health System) Series A,
6.25% 7/1/13 Baa1 250,000 232,813
Philadelphia Ind. Dev. Auth. Dev. Rev.
(Long Term Care, Maplewood)
8% 1/1/24 - 500,000 483,125
Pennsylvania Intergovernmental Coop.
Auth. Spl. Tax Rev. Rfdg. Series A,
5% 6/15/15 Baa 600,000 510,000
Philadelphia Muni. Auth. Rev. Rfdg. Lease
Series D, 6.125% 7/15/08 Ba 270,000 255,488
Somerset County Hosp. Auth. (Rev. Health
Care 1st Mortgage-GF) 8.40% 6/1/09 - 415,000 413,963
Warren County Ind. Dev. Auth. Specialized
Dev. Rev. Rfdg. (Beverly Enterprises, Inc.):
8.75% 11/1/06 - 125,000 139,531
9% 11/1/12 - 500,000 565,625
5,484,215
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
TEXAS - 5.6 %
East Texas Health Facs. Dev. Corp. Hosp. Rev.
(Palestine) 7.80% 8/15/18 - $ 850,000 $ 816,000
El Paso Prop. Fin. Auth. Single Family Mtg.
Rev. Series A, 8.70% 12/1/18,
(GNMA Coll.) (b) Aaa 875,000 942,813
Harris County Cultural & Ed. Facs. Fin. Corp.
(Space Ctr. Houston Proj.) 9.25% 8/15/15 - 500,000 475,000
Texas Nat'l. Research Lab Commission Fing.
Corp. Lease Rev. (Superconducting Supercollider
Proj.) 6.95% 12/1/12 A 150,000 151,688
Texas Pub. Fin. Auth Series B, 5.75% 10/1/14 Aa 1,000,000 967,500
3,353,001
WASHINGTON - 3.4 %
Washington Pub. Pwr. Supply Sys. Nuclear Proj.
#2 Rev.:
Rfdg. Series A, 0% 7/1/11, (MBIA Insured) Aaa 1,350,000 467,438
7.07% 7/1/10, (FGIC Insured) (c) Aa 1,350,000 1,174,500
6.87% 7/1/12 (c) Aa 500,000 401,242
2,043,180
TOTAL MUNICIPAL BONDS
(Cost $60,610,610) 58,966,175
MUNICIPAL NOTES (D) - 2.3%
KANSAS - 2.3 %
Olathe Edl. Facs. Rev. (College Assoc. Pooled Ed. Loan
Prog.) Series 1989 A, 3.20%, LOC Marine
Midland Bank, VRDN (Cost $1,400,000) VMIG 1 1,400,000 1,400,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $62,010,610) $ 60,366,175
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(h) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(i) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(j) Coupon is inversely indexed to a floating in- terest rate. The price
will be more volatile than the price of a comparable fixed rate security.
The rate shown is the rate at period end.
(k) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
OTHER INFORMATION
The composition of long-term debt holdings
as a percentage of total value of investment in securities, is as follows
(ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 33.6% AAA, AA, A 34.4%
Baa 14.5% BBB 16.5%
Ba 20.6% BB 15.5%
B 0.2% B 2.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 20.3%
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Health Care 24.6%
Industrial Development 24.6
Others (individually less than 10%) 50.8
TOTAL 100.0%
INCOME TAX INFORMATION
At August 31, 1994, the aggregate cost of investment securities for income
tax purposes was $62,010,610. Net unrealized depreciation aggregated
$1,644,435, of which $369,999 related to appreciated investment securities
and $2,014,434 related to depreciated investment securities.
The fund has elected to defer to its fiscal year ending August 31, 1995,
$726,000 of losses recognized during the period November 1, 1993 to August
31, 1994.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 31, 1994

ASSETS

Investment in securities, at value (cost $62,010,610) - $ 60,366,175
See accompanying schedule

Cash 10,461

Receivable for investments sold 909,823

Interest receivable 960,667

Redemption fees receivable 10

TOTAL ASSETS 62,247,136

LIABILITIES

Payable for investments purchased $ 466,125

Dividends payable 78,491

Accrued management fee 29,580

TOTAL LIABILITIES 574,196

NET ASSETS $ 61,672,940

Net Assets consist of:

Paid in capital $ 64,050,599

Accumulated undistributed net realized gain (loss) on (733,224)
investments

Net unrealized appreciation (depreciation) on (1,644,435)
investments

NET ASSETS, for 6,299,836 shares outstanding $ 61,672,940

NET ASSET VALUE, offering price and redemption price per $9.79
share ($61,672,940 (divided by) shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1994

INTEREST INCOME $ 2,691,728

EXPENSES

Management fee $ 243,521

Non-interested trustees' compensation 217

TOTAL EXPENSES 243,738

NET INTEREST INCOME 2,447,990

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (734,511)

Futures contracts 19,493 (715,018)

Change in net unrealized appreciation (depreciation) on (1,891,220)
investment securities

NET GAIN (LOSS) (2,606,238)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (158,248)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED APRIL 29, 1993
AUGUST 31, (COMMENCEMENT
OF
OPERATIONS) TO
AUGUST 31,

1994 1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 2,447,990 $ 135,887
Net interest income

Net realized gain (loss) (715,018) 26,999

Change in net unrealized appreciation (depreciation) (1,891,220) 246,785

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (158,248) 409,671
FROM OPERATIONS

Distributions to shareholders: (2,448,988) (135,887)
From net interest income

From net realized gain (26,999) -

In excess of net realized gain (29,073) -

TOTAL DISTRIBUTIONS (2,505,060) (135,887)

Share transactions 65,586,929 19,532,611
Net proceeds from sales of shares

Reinvestment of distributions 1,818,173 110,836

Cost of shares redeemed (20,434,677) (2,652,686)

Redemption fees 98,511 2,767

Net increase (decrease) in net assets resulting from 47,068,936 16,993,528
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS 44,405,628 17,267,312

NET ASSETS

Beginning of period 17,267,312 -

End of period $ 61,672,940 $ 17,267,312

OTHER INFORMATION
Shares

Sold 6,489,653 1,915,939

Issued in reinvestment of distributions 181,929 10,820

Redeemed (2,039,295) (259,210)

Net increase (decrease) 4,632,287 1,667,549

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED APRIL 29, 1993
AUGUST 31, (COMMENCEMENT
OF OPERATIONS) TO
AUGUST 31,

1994 1993

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.350 $ 10.000

Income from Investment Operations .603 .209
Net interest income

Net realized and unrealized gain (loss) (.564) .346

Total from investment operations .039 .555

Less Distributions (.603) (.209)
From net interest income

From net realized gain on investments (.010) -

In excess of net realized gain on investments (.010) -

Total distributions (.623) (.209)

Redemption fees added to paid in capital .024 .004

Net asset value, end of period $ 9.790 $ 10.350

TOTAL RETURNB .61% 5.64%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 61,673 $ 17,267

Ratio of expenses to average net assets .60% .60%A

Ratio of net interest income to average net assets 6.03% 6.24%A

Portfolio turnover rate 64% 53%A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1994

7. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Aggressive Municipal Fund (the fund) is a fund of Fidelity Union
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 Massachusetts business trust. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. Securities are
valued based upon a computerized matrix system and/or appraisals by a
pricing service, both of which consider market transactions and
dealer-supplied valuations. Short-term securities maturing within sixty
days are valued either at amortized cost or original cost plus accrued
interest, both of which approximate current value. Securities for which
quotations are not readily available through the pricing service are valued
at their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
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.
Distributions are declared daily and paid monthly from net investment
income. Distributions from realized gains, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures and market discount. The fund also utilized earnings and profits
distributed to shareholders on redemption of shares as a part of the
dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net interest income per share. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
FUTURES CONTRACTS AND OPTIONS.
The fund may invest in futures and options contracts and write options.
These investments involve, to varying degrees, elements of market risk and
risks in excess of the amount recognized in the Statement of Assets and
Liabilities. The face or contract amounts reflect the
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
FUTURES CONTRACTS AND OPTIONS - CONTINUED
extent of the involvement the fund has in the particular classes of
instruments. Risks may be caused by an imperfect correlation between
movements in the price of the instruments and the price
of the underlying securities and interest rates. Risks also may arise if
there is an illiquid secondary market for the instruments, or due to the
inability of counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
REDEMPTION FEES. Shares held in the fund less than 180 days are subject to
a redemption fee equal to 1% of the proceeds of the redeemed shares. The
fee, which is retained by the fund, is accounted for as an addition to paid
in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
8. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $69,512,808 and $24,482,020, respectively.
The market value of futures contracts opened and closed amounted to
$24,724,697 and $24,766,083, respectively.
9. 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 .60% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $1,000.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Union Street Trust and the Shareholders of
Spartan Aggressive Municipal Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Union Street Trust: Spartan Aggressive Municipal Fund, including
the schedule of portfolio investments, as of August 31, 1994, and the
related statement of operations for the year then ended, the statement of
changes in net assets and the financial highlights for the year then ended
and for the period April 29, 1993 (commencement of operations) to August
31, 1993. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included con- firmation of
securities owned as of August 31, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Union Street Trust: Spartan Aggressive Municipal Fund as of
August 31, 1994, the results of its operations for the year then ended,
the changes in its net assets and the financial highlights for the year
then ended and for the period April 29, 1993 (commencement of operations)
to August 31, 1993, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
September 29, 1994
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RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Gary L. Swayze, Vice President
Thomas J. Steffanci, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
United Missouri Bank, N.A.
Kansas City, MO
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
FIDELITY TAX-FREE BOND FUNDS
Aggressive Tax-Free
California Tax-Free High Yield
California Tax-Free Insured
High Yield Tax-Free
Insured Tax-Free
Limited Term Municipals
Massachusetts Tax-Free High Yield
Michigan Tax-Free High Yield
Minnesota Tax-Free
Municipal Bond
New York Tax-Free High Yield
New York Tax-Free Insured
Ohio Tax-Free High Yield
SpartanAggressive Municipal
(registered trademark)
Spartan California Municipal High Yield
Spartan Connecticut Municipal High Yield
Spartan Florida Municipal Income
Spartan Intermediate Municipal
Spartan Maryland Municipal Income
Spartan Municipal Income
Spartan New Jersey Municipal High Yield
Spartan New York Municipal High Yield
Spartan Pennsylvania Municipal High Yield
Spartan Short-Intermediate Municipal
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
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for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)SPARTAN(registered trademark)

SHORT-INTERMEDIATE MUNICIPAL
FUND
ANNUAL REPORT
AUGUST 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 26 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 30 Notes to the financial statements.

REPORT OF INDEPENDENT 33 The auditor's opinion.
ACCOUNTANTS

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income. If Fidelity had not reimbursed
certain fund expenses, the fund's returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Short-Intermediate Municipal 2.05% 35.23% 46.64%

Lehman Brothers Municipal Bond 0.14% 48.59% n/a
Index

Average Short Municipal Bond Fund 1.84% 33.15% n/a

Consumer Price Index 2.90% 19.58% 34.84%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years or since the fund
started on December 24, 1986. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, you would end up with $1,050. You
can compare these figures to the performance of the Lehman Brothers
Municipal Bond Index - a broad measure of the municipal bond market. To
measure how the fund stacked up against its peers, you can look at the
average short municipal bond fund, which reflects the performance of 42
similar municipal bond funds tracked by Lipper Analytical Services. Both
benchmarks include reinvested dividends and capital gains, if any.
Comparing the fund's performance to the consumer price index helps show how
your fund did compared to inflation. (The CPI returns begin on the month
end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Short-Intermediate Municipal 2.05% 6.22% 5.10%

Lehman Brothers Municipal Bond Index 0.14% 8.24% n/a

Average Short Municipal Bond Fund 1.84% 5.88% n/a

Consumer Price Index 2.90% 3.64% 3.97%

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.
$10,000 OVER LIFE OF FUND
Spart St.-Inter. Muni Fund (404)Municipal Bond Index (SH15)
12/31/86 10000.00 10000.00
01/31/87 10054.19 10301.10
02/28/87 10117.69 10351.78
03/31/87 10080.93 10242.05
04/30/87 9812.59 9728.11
05/31/87 9797.34 9679.85
06/30/87 9956.04 9964.06
07/31/87 10032.45 10065.69
08/31/87 10016.91 10088.34
09/30/87 9828.72 9716.38
10/31/87 9745.55 9750.78
11/30/87 9964.64 10005.37
12/31/87 10026.49 10150.55
01/31/88 10214.94 10512.11
02/29/88 10245.99 10623.22
03/31/88 10180.98 10499.46
04/30/88 10232.40 10579.26
05/31/88 10264.93 10548.68
06/30/88 10288.76 10703.01
07/31/88 10334.17 10772.79
08/31/88 10328.99 10782.27
09/30/88 10402.52 10977.43
10/31/88 10466.30 11171.18
11/30/88 10452.79 11068.86
12/31/88 10517.08 11182.09
01/31/89 10579.27 11413.34
02/28/89 10541.79 11283.11
03/31/89 10524.02 11256.14
04/30/89 10585.63 11523.36
05/31/89 10703.42 11762.71
06/30/89 10787.88 11922.44
07/31/89 10895.39 12084.71
08/31/89 10922.28 11966.40
09/30/89 10939.95 11930.50
10/31/89 11024.77 12076.05
11/30/89 11100.67 12287.38
12/31/89 11179.78 12388.14
01/31/90 11185.47 12329.91
02/28/90 11275.66 12439.65
03/31/90 11319.98 12443.38
04/30/90 11301.90 12353.79
05/31/90 11405.67 12623.10
06/30/90 11462.06 12734.19
07/31/90 11553.83 12921.38
08/31/90 11573.00 12734.02
09/30/90 11641.87 12741.66
10/31/90 11728.47 12972.28
11/30/90 11837.33 13233.03
12/31/90 11897.08 13291.25
01/31/91 12006.73 13469.35
02/28/91 12080.45 13586.54
03/31/91 12129.01 13591.97
04/30/91 12243.41 13772.74
05/31/91 12317.14 13895.32
06/30/91 12351.13 13881.43
07/31/91 12435.87 14050.78
08/31/91 12534.74 14236.25
09/30/91 12634.01 14421.32
10/31/91 12717.80 14551.11
11/30/91 12774.13 14591.86
12/31/91 12950.17 14905.58
01/31/92 13005.05 14939.86
02/29/92 13057.09 14944.35
03/31/92 13063.49 14950.32
04/30/92 13148.56 15083.38
05/31/92 13221.15 15261.37
06/30/92 13330.37 15517.76
07/31/92 13535.01 15983.29
08/31/92 13480.29 15826.65
09/30/92 13547.53 15929.53
10/31/92 13546.29 15773.42
11/30/92 13668.06 16055.76
12/31/92 13750.97 16219.53
01/31/93 13889.29 16407.68
02/28/93 14133.74 17001.63
03/31/93 14090.31 16821.42
04/30/93 14157.50 16991.31
05/31/93 14212.39 17086.47
06/30/93 14307.64 17371.81
07/31/93 14319.09 17394.39
08/31/93 14473.17 17756.20
09/30/93 14569.02 17958.62
10/31/93 14595.30 17992.74
11/30/93 14575.48 17834.40
12/31/93 14730.29 18210.71
01/31/94 14828.46 18418.31
02/28/94 14674.59 17941.28
03/31/94 14422.25 17211.07
04/30/94 14476.71 17357.36
05/31/94 14562.86 17508.37
06/30/94 14586.36 17406.82
07/31/94 14715.89 17725.36
08/31/94 14770.43 17787.40

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Short-Intermediate Municipal Fund on December 31, 1986, shortly after the
fund started. As the chart shows, by August 31, 1994, the value of your
investment would have grown to $14,770 - a 47.70% increase on your initial
investment. This assumes you still own the fund on August 31, 1994, and
therefore does not include the effect of the $5 account closeout fee. For
comparison, look at how the Lehman Brothers Municipal Bond Index - which
includes longer term bonds - did over the same period. With dividends
reinvested, the same $10,000 would have grown to $17,787 - a 77.87%
increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
YEARS ENDED AUGUST 31,

1994 1993 1992 1991 1990

Dividend return 4.43% 4.82% 5.47% 6.30% 5.96%

Capital appreciation -2.38% 2.53% 2.06% 2.00% -0.01%
return

Total return 2.05% 7.35% 7.53% 8.30% 5.95%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED AUGUST 31, 1994 PAST PAST 6 PAST
MONTH MONTHS YEAR

Dividends per share 3.65(cents) 22.25(cents) 44.27(cents)

Annualized dividend rate 4.38% 4.49% 4.44%

30-day annualized yield 4.31% - -

30-day annualized tax-equivalent 6.73% - -
yield

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.82 over
the past month, $9.82 over the past six months and $9.96 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 36% federal tax bracket.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Rising interest rates and inflation
concerns sent U.S. bond prices
sharply lower during the first eight
months of 1994. Yields rose -
and prices fell - on taxable and
tax-free bonds alike. The
heaviest investor selling occurred
from February through May. That
coincided with the Federal
Reserve Board's raising of
short-term interest rates. The Fed
was hoping to head off future
inflation growth that might be
triggered by the improving U.S.
economy. However, bond
investors reacted strongly to any
threat of inflation because
inflation deteriorates the value of
their fixed-rate interest payments.
Two influences roughly offset
each other in the municipal bond
market. First, investor demand
fell due to inflation worries, which
dampened prices. However, the
supply of tax-free bonds fell
sharply as well. The ability of
states, cities and public agencies
to refinance outstanding debt at
lower, more attractive rates was
limited amid a rising interest rate
environment. For the 12 months
ended August 31, 1994, the
Lehman Brothers Municipal Bond
Index - a broad measure of the
tax-free market - had a total
return of 0.14%. By comparison,
the Lehman Brothers Aggregate
Bond Index - a proxy of
investment-grade taxable bonds
- - returned -1.51% during the
same period. Most overseas
bond markets took their cue from
the sell-off in the U.S. The
Salomon Brothers World
Government Bond Index -
which includes U.S. issues -
rose 2.28% for the 12 months.
The J.P. Morgan Emerging
Markets Bond Index returned
1.42%.
An interview with David Murphy, Portfolio Manager of Spartan
Short-Intermediate Municipal Fund
Q. DAVID, HOW HAS THE FUND PERFORMED?
A. A little better than average. For the six months ended August 31, 1994,
the fund had a total return of 0.65%. That slightly outpaced the average
short municipal bond fund's return of 0.64% for the same period, according
to Lipper Analytical Services. For the year ended August 31, 1994, the fund
returned 2.05%, compared to the average short fund's return of 1.84%, again
according to Lipper.
Q. MANY MUNICIPAL BOND FUNDS HAVE POSTED NEGATIVE RETURNS OVER THE PAST SIX
MONTHS. WHY HAVE THE SHORT FUNDS FARED BETTER?
A. Let's start with what happened with the municipal market in general. In
February, the Federal Reserve Board began raising short-term interest
rates. The Fed was acting on evidence that the economy had grown at a
fairly strong pace in the fourth quarter of 1993. That was in spite of the
fact that there wasn't any solid evidence that this growth had caused
higher inflation. Since the bond market dislikes inflation, a preemptive
Fed move against the threat of future inflation is sometimes greeted
enthusiastically by investors. But this time, the market reacted negatively
because investors expected more Fed hikes to come later. As a result, many
investors started to sell municipal bonds and the market dropped. However,
the nature of short- and intermediate- term securities is that they have
less price risk than longer-term securities, and as such, fell less when
interest rates were rising. By the end of August, the Fed had raised
short-term interest rates by 1.75% to 4.75%. In the summer, the market
retraced some of its early-year losses as investors began to believe that
higher interest rates were actually slowing down the economy and inflation
was less of a threat.
Q. TURNING TO THE FUND, WHAT HELPED IT END UP AHEAD OF THE AVERAGE?
A. Two reasons. First, the fund had a relatively short duration during part
of the period. Duration is a measure of a fund's sensitivity to changes in
interest rates. The shorter the fund's duration, the less sensitive its
price when interest rates are rising or falling. Second, and more
importantly, the fund produced an above-average yield. This also helped its
performance relative to other funds of its type.
Q. WHERE DO YOU INVEST TO HELP GENERATE THAT ABOVE-AVERAGE YIELD?
A. One place is student loan bonds, which are the fund's largest sector
concentration at 28.9% of the fund's total investments at the end of
August, compared to 28.3% six months ago. Student loan bonds offer higher
yields - as much as 0.75% more than other similar bonds - because they
carry the risk of being prepaid. However, now that interest rates have
risen, there isn't much of an incentive for borrowers to pay these loans
off early.
Q. THERE'S BEEN A LOT OF TALK RECENTLY ABOUT DERIVATIVES - DO YOU USE THEM
AND WHY?
A. Yes, I use bond futures and options contracts, which are two forms of
financial derivatives - meaning their market values are derived from a
security or market index. We've used bond futures and options in our
municipal funds for years. I've also used what's known as an inverse
floater - whose yield rises as short-term rates fall, and vice versa. These
inverse floaters act like intermediate bonds, with a duration sensitivity
similar to other securities the fund holds. Throughout the period, inverse
floaters made up less than 5% of the fund's total investments. By using
these derivatives, I achieve increased flexibility in managing the fund's
overall sensitivity to changes in interest rates, and hopefully, can
achieve higher levels of income.
Q. WHAT'S YOUR OUTLOOK FOR THE MUNICIPAL MARKET?
A. I'm optimistic that the worst is behind the municipal bond market,
although there could be some continued volatility. In my view, the
municipal market may have reached a bottom after the Fed's recent 0.50%
interest rate hike in August. If that view proves to be correct, some
fundamental factors could help drive municipal prices higher. First, the
supply of new municipals issued in 1994 is roughly half of what it was in
1993. Second, I believe that demand for municipal bonds could increase over
the next year or so, once the market settles. Both factors may work to
boost bond prices. But even if demand remains fairly constant and supply is
lower, municipal bond prices could rise.

FUND FACTS
GOAL: to provide a current
income exempt from federal
income tax by investing in
high-grade and upper
medium-grade securities
START DATE: December 24,
1986
SIZE: as of August 31, 1994,
more than $1 billion
MANAGER: David Murphy since
December 1989; manager,
Spartan California
Intermediate Municipal
Portfolio, since December
1993; Spartan New York
Intermediate Portfolio, since
December 1993; Spartan
Intermediate Municipal
Portfolio, since May 1993;
Spartan New Jersey Municipal
High Yield Portfolio, since
April 1991; Fidelity Limited
Term
Municipals, since December
1989; joined Fidelity in 1989
(checkmark)
DAVID MURPHY'S STRATEGY:
"One of my primary goals is to
generate a high level of
income for the fund. Using
Fidelity's research resources,
I try to identify bonds that will
pay a higher-than-average
income but carry little added
risk. Student loan bonds, for
example, are generally rated
A or higher by Moody's
Investors Service. These are
still investment grade ratings.
These bonds can pay 0.50%
to 0.75% more in yield than
similarly rated bonds. But I
don't just chase after yield.
When I buy a municipal bond,
my goal is always to find the
highest yield possible, while
attempting to keep risk in
check."
(solid bullet) Student loan bonds were
the fund's largest sector
concentration at 28.9% of
investments at the end of
August.
(solid bullet) General obligation bonds
(GOs), which are backed by
the taxing power of the issuer,
were the fund's second
largest concentration at
22.7% of investments at the
end of August. Improving
economic conditions could
generate higher tax revenues
for many issuers, and
ultimately help boost the
credit quality and prices of
some GOs.
INVESTMENT CHANGES

TOP FIVE STATES AS OF AUGUST 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Massachusetts 11.2 11.2

Texas 9.8 10.8

Louisiana 8.9 8.3

California 7.7 7.5

Washington 5.3 5.5

TOP FIVE SECTORS AS OF AUGUST 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Education 28.9 28.3

General Obligation 22.7 20.7

Escrowed/Pre-Refunded 11.3 10.4

Electric Revenue 10.4 12.4

Transportation 5.5 6.2

AVERAGE YEARS TO MATURITY AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 3.4 3.9

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND
IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 3.1 3.3

DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%,
FOR EXAMPLE, THE SHARE PRICE OF A FUND WITH A FIVE-YEAR DURATION WILL FALL
ABOUT 5%.
QUALITY DIVERSIFICATION AS OF AUGUST 31, 1994
(MOODY'S RATINGS)

Aaa 48.1%
Aa, A 42.4%
Baa 2.5%
Non-rated 0.2%
Short-term investment 6.8%
Row: 1, Col: 1, Value: 7.0
Row: 1, Col: 2, Value: 2.5
Row: 1, Col: 3, Value: 35.3
Row: 1, Col: 4, Value: 7.1
Row: 1, Col: 5, Value: 48.1
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS AUGUST 31, 1994

Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 93.2%
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
ALABAMA - 0.1 %
Mobile Rfdg. & Impt. 5% 2/15/98, (MBIA Insured) $ 1,000 $ 1,009
ALASKA - 4.9 %
Alaska Student Loan Corp. Student Loan Rev. 6.90% 7/1/96,
(AMBAC Insured) (e) 3,800 3,938
North Slope Borough:
Gen. Oblig. Rfdg. Series 1988 G, 7.50% 6/30/97,
(AMBAC Insured) (f) 28,015 29,941
Unltd. Tax Series G, 8.35% 6/30/98 4,000 4,425
Rfdg. Series G, 8.35% 6/3098, (MBIA Insured) 8,000 8,930
Series B, 0% 1/1/99, (MBIA Insured) 8,000 6,430
53,664
ARIZONA - 4.1 %
Arizona State Univ. Rev. Sys. 7.30% 7/1/08
(Pre-Refunded to 7/1/96 @102) (c) 2,415 2,587
Arizona Trans. Board Excise Tax Rev. (Maricopa County
Reg. Area) 7.40% 7/1/98 3,750 4,069
Maricopa County School Dist. #4 Mesa Unified:
(Cap. Appreciation) 0% 7/1/98, (FGIC Insured) 2,600 2,161
(Mesa Elementary) Series D, 6% 7/1/01, (FGIC Insured) (c) 9,300 9,800
Rfdg. 6% 7/1/97, (AMBAC Insured) 5,000 5,169
Phoenix Arpt. Rev. Rfdg. Series A (b):
4.80% 7/1/96, (MBIA Insured) 2,880 2,891
5.05% 7/1/97, (MBIA Insured) 2,885 2,903
5.40% 7/1/99, (MBIA Insured) 6,070 6,131
Phoenix Civic Impt. Corp. (Arpt. Impts. A) Excise Tax Rev.
Rfdg. (b)(e):
5.25% 7/1/97 2,845 2,852
5.60% 7/1/99 3,240 3,255
5.75% 7/1/00 2,000 2,013
Series A, 5.85% 7/1/01 1,000 1,008
44,839
CALIFORNIA - 5.8 %
California Gen. Oblig. 6.65% 4/1/00 4,000 4,250
California Pub. Works Board Lease Rev. Rfdg.:
(Dept. of Corrections) Series A, 4.50% 12/1/98,
(AMBAC Insured) 4,600 4,485
(Dept. of Corrections State Prison)
Series E:
4.50% 6/1/00 4,035 3,818
4.625% 6/1/01 4,795 4,507
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Clovis California Unified School Dist. (Cap. Appreciation)
Series B, 0% 8/1/00 $ 7,000 $ 5,110
First California Pre-Refunded Pooled
Custodial Receipts Rib Series A, 16.663% 12/1/97 (a)(c)(d) 12,950 17,062
Los Angeles Dept. of Wtr. and Pwr. Rev.:
Second Issue (Electric Plant) 9% 10/15/00 1,300 1,555
9% 10/15/01 2,000 2,420
Los Angeles Wastewtr. Sys. Rev. Series B, 9% 6/1/96,
(AMBAC Insured) 2,305 2,475
Northern California Pwr. Agcy. Pub. Pwr. Rev. Rfdg.
(Geothermal Proj. #3) Series A, 8.80% 7/1/95 2,750 2,846
Orange Cnty. Commty. Facs. Dist. (#88-1 Aliso Viejo Series A)
7.35% 8/15/18 (Pre-Refunded to 8/15/02 - @102) (c) 2,340 2,703
Rosemead Redev. Agcy. (Sub. Lien Tax Allocation Proj. Area 1)
(Escrowed to Maturity) (c):
0% 10/1/96 2,235 2,028
0% 10/1/97 1,875 1,617
0% 10/1/98 1,000 813
0% 10/1/99 2,205 1,697
San Bernardino County Ctfs. of Prtn. (Medical Center
Fing. Proj.) 4.75%, 8/1/00 4,000 3,870
Univ. of California Rev. Rfdg. (Multiple Purpose Projs.)
Series C, 10% 9/1/99, (AMBAC Insured) 2,605 3,159
64,415
COLORADO - 3.1 %
Adams County Multi-Family Hsg. Rev. Rfdg. 5.20% 6/1/03,
(LOC Columbia Savings & Loan) 990 979
Aurora Ctf. of Prtn. Rfdg. 4.75% 12/1/96 500 499
Colorado Ctfs. of Prtn. Rfdg. & Acquisition Projs.:
4.20% 5/1/95, (AMBAC Insured) 3,250 3,258
4.75% 5/1/97, (AMBAC Insured) 4,000 4,020
4.75% 11/1/97, (AMBAC Insured) 2,750 2,764
Denver City & County Arpt. Rev.:
(Stapleton Int'l. Arpt.) 10% 12/1/95, (Escrowed to Maturity) (c) 400 427
Series B, 4.25% 12/1/25, (LOC Sumitomo Bank) 15,000 14,888
Jefferson County School Dist. #R-1 Rfdg. Series A,
5.5% 12/15/01 5,000 5,106
Pueblo Wtr. Rfdg. Series 1984 B, 9.50% 11/1/98,
(MBIA Insured) 2,250 2,697
34,638
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
CONNECTICUT - 0.6 %
Connecticut Resources Recovery Auth. Rev. (Bridgeport
Resco Co. LP Proj.) Series B:
8% 1/1/95 $ 1,980 $ 2,000
8.10% 1/1/96 2,960 3,060
8.20% 1/1/97 1,490 1,564
6,624
DELAWARE - 0.2 %
Delaware Trans. Auth. Trans. Sys. Rev. Jr. 7.75% 7/1/06,
(MBIA Insured) (Pre-Refunded to 7/1/98 - @101.50) (c) 1,500 1,674
DISTRICT OF COLUMBIA - 1.2 %
District of Columbia:
Series E, 4.75% 6/1/00, (FGIC Insured) 1,825 1,773
Gen. Oblig. Series E, 5% 6/1/02,
(FGIC Insured) 3,850 3,758
Rfdg. Series A3, 5% 6/1/01, (MBIA Insured) 3,000 2,928
Unltd. Tax:
Series A, 7.20% 6/1/97, (AMBAC Insured) 2,665 2,832
Series B, 5.50% 6/1/98, (MBIA Insured) 2,165 2,203
13,494
FLORIDA - 2.2 %
Florida Lease Ctfs. of Prtn(Consolidated Equip. Prog.):
5.75%, 11/15/95 6,000 6,075
5.90% 5/15/96 17,790 17,946
24,021
GEORGIA - 0.8 %
Burke County Dev. Auth. Poll. Cont. Rev. (Oglethorpe
Pwr. Corp. - Vogtle Proj.) 9.50% 1/1/01 3,000 3,101
Georgia Muni. Elec. Auth. Pwr. Rev. Series J,
9.90% 1/1/97 (Pre-Refunded to 9/1/95 @103) (c) 1,190 1,250
Gwinnett County Wtr. & Swr. Ctfs. of Prtn. 7.75% 8/1/96 3,850 4,091
8,442
HAWAII - 0.7 %
Hawaii Arpts. Sys. Rev. Rfdg.:
Series 1993,:
4.50% 7/1/95, (MBIA Insured) 1,685 1,693
4.85% 7/1/96, (MBIA Insured) 1,770 1,783
5.10% 7/1/97, (MBIA Insured) 1,860 1,879
Third Series, 5.125% 7/1/00, (AMBAC Insured) (e) 2,260 2,252
7,607
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
ILLINOIS - 2.6 %
Chicago O'Hare Int'l. Arpt. Spl. Facs. Rev. (Int'l. Terminal)
5.50% 1/1/98, (MBIA Insured) (e) $ 3,460 $ 3,512
Illinois Edl. Facs. Auth. Rev:
(Art Institute) 7.50% 3/1/27, LOC Mitsubishi Bank Ltd.
(Putable to 9/1/94 - @100) 2,830 2,830
(DePaul Univ.) Series A, 9.10% 10/1/97,
(Pre-Refunded to 10/1/95 @ 103) (c) 500 539
Illinois Scholarship Commission Student Loan Rev. (e):
Series G, 8.10% 3/1/98 3,500 3,592
Series I, 0.02% 3/1/96 8,725 8,125
McHenry County Conservation Dist. (Cap. Appreciation)
0% 2/1/96, (AMBAC Insured) 1,630 1,530
Metropolitan Pier & Export Auth. Dedicated Tax Rev.
(McCormick Place Expansion Proj.):
Series A, 0% 6/15/96, (AMBAC Insured) 4,055 3,741
0% 6/15/95, (AMBAC Insured) 2,500 2,422
Rock Island County Ctfs. of Prtn.:
10% 12/1/94, (FGIC Insured) 715 726
10% 12/1/95, (FGIC Insured) 790 846
10% 12/1/96, (FGIC Insured) 840 939
28,802
KANSAS - 0.3 %
Johnson Cnty. Unified School Dist. #233 Rfdg. & Impt.
8% 9/1/99, (AMBAC Insured) 3,050 3,458
KENTUCKY - 1.9 %
Kentucky Tpk. Auth. Econ. Dev. Road Rev. (Revitalization Proj.)
7.25% 5/15/10, (Pre-Refunded to 5/15/00 - @101.50) (c) 400 449
Louisville & Jefferson County (Reg. Arpt. Auth. Arpt. Sys. Rev.
Series C, 4.75% 7/1/00, (MBIA Insured) (e) 6,480 6,318
Owenboro Elec. Lt. and Pwr Rev. Rfdg.:
Series B,:
0% 1/1/96, (AMBAC Insured) 1,425 1,343
0% 7/1/96, (AMBAC Insured) 1,400 1,288
0% 1/1/97, (AMBAC Insured) 3,025 2,700
0% 7/1/97, (AMBAC Insured) 1,000 870
0% 1/1/98, (AMBAC Insured) 2,000 1,687
0%, 1/1/99, (AMBAC Insured) 3,300 2,623
0% 1/1/01, (AMBAC Insured) 5,450 3,822
21,100
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
LOUISIANA - 8.9 %
East Baton Rouge Parish Sales and Use Tax (Pub. Impt.)
12% 2/1/97, (MBIA Insured) $ 1,000 $ 1,164
Jefferson Sales Tax Dist. Spl. Sales Tax Rev. Series A:
Rfdg. 6.375% 12/1/99, (FGIC Insured) 1,000 1,061
6.25% 12/1/98, (FGIC Insured) 3,000 3,165
Louisiana Hsg. Fin. Agcy. Mtg. Rev. Rfdg. (Residential Lien)
Series 1992, 0% 3/1/95 8,615 8,400
Louisiana Pub. Facs. Auth. Rev.:
(Browning-Ferris Ind., Inc.) 3.85% 11/1/96 (e) 5,000 4,894
(Loyola Univ.) 9% 10/1/95 9,710 10,183
(Student Loan):
Sr. Series A-1, 5.9% 3/1/99 3,000 3,094
Sr. Series A-2, 5.9% 3/1/98 (e) 3,000 3,079
(Supplemental Student Loan):
Series B, 8.125% 12/1/99, (AMBAC Insured) 8,840 9,989
Series C, 8.125% 12/1/99, (AMBAC Insured) 4,200 4,746
Louisiana Gen. Oblig.:
Rfdg. Series A,:
6.50% 9/1/95 1,000 1,014
6.40% 8/1/96 3,100 3,185
8% 5/1/97, (MBIA Insured) 4,995 5,395
8% 5/1/98, (MBIA Insured) 4,080 4,488
8% 5/1/99, (MBIA Insured) 8,460 9,443
Series A, Unltd. Tax 8% 5/1/96, (AMBAC Insured) 3,130 3,302
Series C, 9.375% 10/1/94 1,325 1,330
8% 9/1/95 3,365 3,479
Louisiana Recovery Dist. Sales Tax Rev.:
Rfdg. 5.70% 7/1/98 1,500 1,532
7.75% 7/1/98 (Pre-Refunded to 7/1/95 @102) (c) 2,750 2,887
7.625% 7/1/96 7,500 7,828
Louisiana State Resource Dist. Sales Tax Rev. Rfdg.
5.50% 7/1/97, (MBIA Insured) 3,435 3,512
Ouachita Parish Hosp. Svc. Dist. #1 Rev.
(Glenwood Regional Med. Ctr.):
6.50% 7/1/95 395 400
6.70% 7/1/96 475 488
98,058
MAINE - 1.2 %
Maine Edl. Loan Auth. Edl. Loan Rev. (Supplemental Ed.
Loan Prog.) Series A-1, 5.60% 12/1/96 (e) 2,720 2,768
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
MAINE - CONTINUED
Maine Edl. Loan. Marketing Corp. Student Loan Rev. Rfdg.
Series A-1, (e):
6.20% 11/1/95 $ 7,250 $ 7,350
4.95% 5/1/96 1,200 1,202
5.20% 5/1/97 1,750 1,752
13,072
MARYLAND - 1.4 %
Northeast Waste Disp. Auth. Resources Recovery Rev. Rfdg.
(Southwest Resources Recovery Fac.):
6.40% 1/1/95, (MBIA Insured) 1,075 1,082
6.50% 1/1/96, (MBIA Insured) 3,000 3,075
6.85% 1/1/99, (MBIA Insured) 4,000 4,260
6.90% 1/1/00, (MBIA Insured) 5,000 5,350
Prince Georges County 6.2% 3/15/99, (MBIA Insured) 1,985 2,099
15,866
MASSACHUSETTS - 11.2 %
Fall River Gen. Oblig. Ltd. Tax 8% 6/1/96, (MBIA Insured) 725 769
Massachusetts Bay Trans. Auth. 1985 Series A, 8.60% 3/1/04
(Pre-Refunded to 3/1/95 @103) (c) 300 316
Massachusetts Gen. Oblig.:
Consolidated Loan (Cap. Appreciation) Series A, 0% 6/1/97 1,930 1,698
(Dedicated Income Tax) Series A,
7.875% 6/1/97, (FGIC Insured) 1,685 1,818
Spl. Tax RIB 16.112% 6/1/97, (FGIC Insured) (a)(d) 3,310 4,096
15.717% 6/1/97 (a)(d) 9,400 11,480
9.25% 7/1/00 4,500 5,394
Massachusetts Ind. Fin. Agcy. Rev. (Cap. Appreciation)
(Massachusetts Biomedical Research) Series A-1:
7.10% 8/1/99 4,500 4,798
0% 8/1/00 4,510 3,236
New England Loan Marketing Corp. Rfdg.(Massachusetts
Student Loan):
Sr. Issue D, 6% 9/1/99 7,000 7,228
Series A, 6.00% 9/1/98 11,500 11,816
Series B, 5.40% 6/1/00 10,500 10,434
Series E, 5% 7/1/99 25,400 25,083
Series G:
4.7% 8/1/98 6,600 6,509
5% 8/1/00 8,350 8,214
Series H, 4.75% 12/1/99 (f) 21,000 20,580
123,469
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
MICHIGAN - 1.5 %
Detroit Convention Fac. Rev. Rfdg.
(Cobo Hall Expansion Project):
3.75% 9/30/96 $ 2,090 $ 2,048
4% 9/30/97 2,000 1,943
4.75% 9/30/00 5,220 5,024
4.8% 9/30/01 3,855 3,677
Detroit, Michigan Gen. Oblig. Rfdg. (Distributable Aid)
3.4% 5/1/95, Non-Callable, (AMBAC Insured) 4,240 4,224
16,916
MINNESOTA - 0.7 %
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys.
Rev. Rfdg.:
Series A, 4.4% 1/1/00 2,500 2,406
Series B, 5.1% 1/1/99 4,875 4,888
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.
Series A, 8.45% 1/1/96 500 526
7,820
MISSISSIPPI - 1.4 %
Mississippi Higher Ed. Assist Corp. Student Loan Rev.
Series B, 4.80% 9/1/98 15,500 15,209
MONTANA - 4.2 %
Montana Dept. Hwy. Trans. Rev. Rfdg. 4.50% 7/1/98 4,000 3,980
Montana Higher Ed. Student Loan Assistance Corp.
Student Loan Rev. (e):
Sr. Series A, 4.75% 12/1/98 1,600 1,590
Sr. Series B:
4.30% 12/1/96 3,500 3,469
6.20% 12/1/97 4,190 4,290
4.50% 12/1/97 3,770 3,736
4.70% 12/1/98 9,225 9,144
4.90% 12/1/99 12,420 12,327
Series B:
6.40% 6/1/98 3,765 3,864
6.40% 12/1/98 4,330 4,482
46,882
MULTIPLE STATE - 0.9 %
California Higher Ed. Loan Student Loan Auth. Rev. Rfdg.
Series E-2, 5.70% 12/1/98 (e) 4,000 4,065
New England Ed. Loan Marketing Corp. Student Loan Rev.
Rfdg. Sr. Issue D, 6.20% 9/1/00 1,100 1,141
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
MULTIPLE STATE - CONTINUED
Washington DC Metro Area Transit Auth Gross Rev. Rfdg.
4.6% 1/1/02, (FGIC Insured) $ 4,930 $ 4,708
9,914
NEW HAMPSHIRE - 1.4 %
New Hampshire Higher Edl. & Health Facs. Auth. Rev.
(Frisbie Mem. Hosp.) 9.50% 10/1/08 (c) 13,960 16,089
NEW JERSEY - 2.0 %
Delaware River Joint Toll Bridge CommissionBridge Rev.
Series I-78, 7.80% 7/1/18, (FGIC Insured) (c) 1,450 1,629
Jersey City School Unltd. Tax 6.40% 2/15/96 1,675 1,725
New Jersey Health Care Facs. Fing. Auth. Rev. (Atlantic City
Med. Ctr.):
Series B, 8.375% 8/1/20, (FHA Guaranteed)
(Pre-Refunded to 2/1/98 @102) (c) 6,820 7,715
Series C:
5.30% 7/1/95 3,615 3,642
5.60% 7/1/96 3,300 3,359
5.80% 7/1/97 4,005 4,095
22,165
NEW MEXICO - 2.2 %
New Mexico Edl. Assistance Foundation Student Loan Rev.:
Sr.:
Series 1-A, 4.80% 12/1/95 (e) 1,750 1,757
Series IV-A1 (b)(e) :
6.40% 3/1/03 5,375 5,388
6.50% 3/1/04 3,370 3,378
Series A:
6.05% 4/1/97, (AMBAC Insured ) (e) 4,025 4,100
6.255 4/1/98, (AMBAC Insured) (e) 4,775 4,901
6.55% 4/1/00, (AMBAC Insured) (e) 2,700 2,822
7% 9/1/94, LOC Fuji Bank (c) 2,045 2,045
24,391
NEW YORK - 2.0 %
New York City Ind. Dev. Agcy. (Term. One Group Assoc. Proj.)
Spl. Fac. Rev. 5.40% 1/1/01 (e) 1,000 990
New York City Muni. Wtr. Fing. Auth Rev. (Wtr. and Swr. Sys.)
Series B, 4.75% 6/15/01 3,000 2,880
New York State Gen. Oblig.:
Crossover Rfdg. 7.80% 11/15/98 12,820 14,262
Rfdg. 7.80% 11/15/99 3,780 4,272
22,404
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
NORTH CAROLINA - 1.6 %
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev. Rfdg.:
Series A, 7.875% 1/1/02 $ 8,000 $ 9,080
Series E, 9% 1/1/1995 2,000 2,033
North Carolina Muni. Pwr. Agcy. Rev. #1 (Catawba Elec.)
4.20% 1/1/98 7,000 6,834
17,947
NORTH DAKOTA - 0.2 %
North Dakota Student Loan Rev. Rfdg. Series A, 5.70% 7/1/97 2,315 2,356
OHIO - 2.8 %
Cincinnati City School Dist.:
Ltd. Tax 5.40% 6/1/96 4,000 4,070
5.35% 6/15/96 2,700 2,744
5.60% 6/15/97 3,000 3,068
Clermont County Hosp. Facs. Rev. (Mercy Health Care System)
9.75% 9/1/13, (AMBAC Insured) (c) 10,000 10,750
Cleveland Pub. Pwr. Sys. Impt. Rev. (1st Mtg.) Series 1987,
8.375% 8/1/17, (AMBAC Insured) (c) 2,500 2,806
Franklin County Rev. (OCLC Online Computer Library Ctr.):
Series 1991, 6% 7/15/95 745 752
Series 1993, 4.70% 4/15/96 270 268
Montgomery County Hosp. Facs. Rev. (Miami Valley Hosp.)
Series A, 9% 12/1/96 1,500 1,608
Ohio Dev. Commty. (Globe Ind. Project) Series 1, 7.75% 6/1/96,
(Escrowed to Maturity) (e) 695 704
Student Loan Funding Corp. Ohio Student Loan Series A,
5.5% 12/1/01 (e) 4,000 3,985
30,755
OKLAHOMA - 0.3 %
Oklahoma Student Loan Auth. Rev. Rfdg. (Student Loan)
Series A, 5.35% 9/1/96 (e) 1,930 1,928
Tulsa Ind. Auth. Hosp. Rev. (Tulsa Reg'l. Med. Ctr.):
Series A, 7% 6/1/96 500 514
6.75% 6/1/95 500 507
2,949
OREGON - 0.2 %
Tri City Svc. Dist. Oregon Advanced Rfdg. Swr. 5% 9/1/00 2,100 2,105
PENNSYLVANIA - 2.2 %
Erie County School Dist. (Cap. Appreciation) (Escrowed to
Maturity) (c):
0% 6/1/96 785 726
0% 12/1/96 1,125 1,011
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Erie County School Dist. (Cap. Appreciation) (Escrowed to
Maturity) (c) - continued:
0% 6/1/97 $ 1,435 $ 1,259
0% 12/1/97 1,405 1,205
0% 6/1/98 905 755
0% 12/1/98 1,770 1,434
Northampton County Ind. Dev. Auth. Rev. (Poll. Cont.)
(Metro Edison Co.) 10.50% 9/1/95 4,000 4,235
Pennslyvania Tpk. Community Tpk. Rev. Series A, 7.875%
12/1/15 (c) 2,500 2,734
Philadelphia Gas Wks. Rev. Fifteenth Series Rfdg.:
4.10% 8/1/99, (AMBAC Insured) 2,000 1,917
4.10% 8/1/99, (MBIA Insured) 3,845 3,686
4.25% 8/1/00, (AMBAC Insured) 2,325 2,215
Philadelphia School Dist. Rfdg. Series A, 6.25% 7/1/97,
(AMBAC Insured) 3,500 3,636
24,813
RHODE ISLAND - 1.7 %
Rhode Island Consolidated Cap. Loan Unltd. Tax Rev.
8% 8/1/98 4,470 4,945
Rhode Island Student Loan Auth. Student Loan Rev. Rfdg.
Series A, 6% 12/1/97 14,000 14,315
19,260
SOUTH DAKOTA - 0.8 %
South Dakota Student Loan Fin. Corp. Student Loan Rev.
Series A (e):
5.70% 8/1/99 3,575 3,584
5.85% 8/1/00 5,000 5,031
5.95% 8/1/01 500 504
9,119
TEXAS - 8.9 %
Alamo Community Dist. Rfdg.:
0% 2/15/99, (AMBAC Insured) 3,530 2,820
0% 2/15/00, (AMBAC Insured) 3,350 2,521
Arlington Independent School Dist. Rfdg. (Cap. Appreciation)
0% 8/15/97, (MBIA Insured) 1,250 1,097
Austin Util. Sys. Rev. Rfdg.:
(Prior Lien):
Series B, 7% 11/15/98, (FGIC Insured) 5,000 5,419
9% 11/15/1994 1,500 1,515
Series A, 0% 11/15/98, (MBIA Insured) 3,000 2,434
Austin Wtr. Swr. & Elec. Rev. Rfdg. 11% 11/15/96 12,505 13,943
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
TEXAS - CONTINUED
Brazos Higher Ed. Auth. Student Loan Rev. Ref. Series C (e):
4.75% 6/1/97 $ 11,600 $ 11,528
4.95% 6/1/98 11,700 11,597
5.15% 6/1/99 13,250 13,150
Colorado River Water Resources Auth. 8.5% 1/1/01 2,200 2,562
Dallas Independent School Dist. Refdg. (Cap. Appreciation):
0% 8/15/96 5,000 4,612
0% 8/15/97 12,400 10,896
Denton Independent School Dist. Rfdg. (Cap. Appreciation)
0% 2/15/98 3,960 3,356
Harris County Toll Road Sub. Lien. Rev. Unltd. Tax Rfdg.
0% 8/1/01 3,490 2,426
North Texas Higher Ed. Auth. Student Loan Rev. Series B,
4.85% 4/1/98 (e) 4,815 4,755
Panhandle-Plains Higher Ed. Auth. Student Loan Rev. Series C,
4.15% 9/1/97 2,800 2,748
Texas Higher Ed. Coordinating Board College Student Loan
Rev. (Sr. Lien) 6.60% 4/1/96 (e) 915 930
98,309
UTAH - 1.3 %
Intermountain Pwr. Agcy Utah Pwr. Supply Rev:
Rfdg.Series B, 0% 7/1/01, (AMBAC Insured) 5,000 3,463
0% 7/1/15 (c) 14,000 10,500
13,963
VIRGINIA - 0.3 %
Chesapeake Wtr. & Swr. Sys. Rev. 7.75% 7/1/17 (c) 1,700 1,876
Virginia Hsg. Dev. Auth. (Multi-Family) Series 1984 A,
9% 11/1/94 1,050 1,053
2,929
WASHINGTON - 5.3 %
Washington General Oblig. 9.10% 4/1/95, (Non-Callable),
(Escrowed to Maturity) 2,000 2,060
Washington Health Care Facs. Auth. Rev.:
(Franciscan Health Sys. St. Francis) 9.25% 7/1/15,
(BIG Insured) (Pre-Refunded to
7/1/95 @102) (c) 17,175 18,227
(Group Health Coop. Puget Sound Seattle) Series 1988 A,
7.40% 12/1/1998, (MBIA Insured) 2,750 3,022
(Northwest Hospital) 2.8% 11/15/94, (AMBAC Insured) 1,210 1,208
(Pooled Cap. Facs. & Equip.) 7.30% 4/1/96, (MBIA Insured) 580 587
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
WASHINGTON - CONTINUED
Washington Pub. Pwr. Supply Sys. Nuclear Rev. Rfdg.:
Proj.#1:
Series A:
7.25% 7/1/99 $ 2,760 $ 2,995
6.5% 7/1/02 1,000 1,058
4.625% 7/1/98 2,400 2,361
Series B, 5% 7/1/01 2,500 2,431
Series C:
7.10% 7/1/96 2,235 2,330
7.30% 7/1/98 6,370 6,848
7.70% 7/1/02 2,500 2,831
Proj. #2:
Series A:
5.10% 7/1/98 1,000 1,000
6.5% 7/1/02 2,220 2,347
Series B:
7% 7/1/97 5,000 5,268
5% 7/1/00 2,150 2,110
Series C:
7.10% 7/1/98 1,000 1,067
7.20% 7/1/99 1,000 1,082
58,832
WISCONSIN - 0.1 %
Milwaukee Wisconsin Rfdg. 4.5% 12/1/98 1,000 984
TOTAL MUNICIPAL BONDS
(Cost $1,034,350) 1,030,363
MUNICIPAL NOTES (A) - 6.8%
CALIFORNIA - 1.8 %
California Gen. Oblig. Rev. Anticipation Notes
(warrants) 5.75% 4/25/96, warranty purchase
agreements with 13 banks 4,000 4,064
California Poll. Cont. Fing. Auth. Resources Recovery Rev.
(Delano Proj.) Series 1991, 3.25%, LOC
Algemene/ABN-AMRO Bank, VRDN (c)(e) 4,300 4,300
San Bernardino County Multi. Family Housing Rev.
(Cedarbrook Terrace Apts.), Series1990 A 4.25% 10/1/07,
LOC Sumitomo Trust & Banking Ltd., VRDN (e) 1,900 1,900
Ventura County TRAN 4.50% 8/1/95 10,000 9,993
20,257
MUNICIPAL NOTES - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
COLORADO - 0.3 %
Colorado General Fund Gen. Oblig. TRAN 4.50% 6/27/95 $ 3,500 $ 3,514
FLORIDA - 0.6 %
Brevard Hsg. Fin. Auth. Rev. (Sun Pointe Bay Apts. Proj.)
Series 1993, 3.35%, BPA Continental Casualty Co., VRDN 3,580 3,580
Dade County Health Facs. Auth. Hosp. Rev. (Miami
Childrens Hosp. Proj.) Series 1990, 3.30%, LOC
Barnett Bank, VRDN (c) 900 900
Dade County Ind. Dev. Rev. (Montenay Dade Ltd. Proj.)
Series 1990-A, 3.35%, LOC Banque Paribas, VRDN (c)(e) 2,200 2,200
6,680
ILLINOIS - 0.4 %
Chicago O'Hare Int'l. Arpt. Spl. Facs. Rev. (American Airlines, Inc.)
Series 1984 B, 3.50%, LOC Long-Term Cr. Bank of
Japan, VRDN (e) 1,700 1,700
Illinois Health Facs. Auth. Rev. (e):
(Central Dupage Hosp. Assoc. Proj.) Series 1990,
3.10%, LOC Industrial Bank of Japan, VRDN 2,000 2,000
(LaGrange Mem. Health Sys.) Series 1990,
3.10%, LOC First Nat'l. Bank of Chicago, VRDN 1,200 1,200
4,900
INDIANA - 0.5 %
Indiana Hosp. Equip. Fing. Auth. Rev. Series 1985 A, 3.10%,
(MBIA Insured) BPA Bank of New York, VRDN (e) 5,725 5,725
MARYLAND - 0.2 %
Montgomery County Hsg. Opportunity Commission Hsg. Rev.
(Draper Lane Apts.) 3.25%, (FGIC Insured) BPA Sumitomo
Bank Ltd., VRDN (c)(e) 2,000 2,000
MINNESOTA - 0.2 %
Duluth Tax Increment Rev. (Lake Superior Paper Co.)
Series 1985, 3.15%, LOC Nat'l Australia Bank, VRDN (e) 1,850 1,850
NEW YORK - 0.2 %
New York Envir. Facs. Corp. Research Recovery Rev.
(Hunting, Inc. Proj.) Series 1989, 3.25%, LOC Union
Bank of Switzerland, VRDN (c)(e) 2,100 2,100
NORTH CAROLINA - 0.2 %
Halifax County Ind. Facs. Poll. Cont. Facs. Auth.
(Westmoreland Hadson Proj.) (Roanoke Valley Proj.)
Series 1991, 3.30%, LOC Cr. Suisse, VRDN (c)(e) 2,300 2,300
MUNICIPAL NOTES - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
PENNSYLVANIA - 0.4 %
Philadelphia School Dist. Gen. Oblig. TRAN
Series 1994-95, 4.75% 6/30/95 (e) $ 4,000 $ 4,018
SOUTH CAROLINA - 0.1 %
South Carolina Jobs Econ. Dev. Auth. (Wellman, Inc. Proj.)
Series 92, 3.30%, LOC Wachovia Bank & Trust NA,
VRDN (c)(e) 1,000 1,000
TEXAS - 0.9 %
Texas Gen. Oblig. TRAN 5% 8/31/95 10,000 10,104
VIRGINIA - 0.8 %
Peninsula Port. Auth. (Port. Fac. - Shell Oil & Terminal Co. Proj.)
Series 87, 3.10% 1/1/05 4,000 4,000
Richmond Ind. Dev. Auth. (Cogentrix Richmond, Inc. Proj.) (c)(e):
Series 1990 A, 3.35%, LOC Banque Paribas, VRDN 1,900 1,900
Series 1991 A, 3.35%, LOC Banque Paribas, VRDN 3,000 3,000
8,900
WYOMING - 0.2 %
Platte County Poll. Cont. Rev. Rfdg. Series 1984 A, 3.25%,
LOC Chemical Bank, VRDN (e) 2,000 2,000
TOTAL MUNICIPAL NOTES
(Cost $75,396) 75,348
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,109,746) $ 1,105,711
SECURITY TYPE ABBREVIATIONS
TRAN - Tax and Revenue
Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(c) Security collateralized by an amount sufficient to pay interest and
principal.
(d) Coupon is inversely indexed to a floating interest rate. The price will
be more volatile than the price of a comparable fixed rate security. The
rate shown is the rate at period end.
(e) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(f) A portion of the security was pledged to cover for delayed delivery
purchases. At the period end, the value of securities pledged amounted to
$34,665,000.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 84.8% AAA, AA, A 72.4%
Baa 2.4% BBB 0.1%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.1%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Education 28.9%
General Obligation 22.7
Escrowed/Pre-Refunded 11.3
Electric Revenue 10.4
Others (individually less than 10%) 26.7
TOTAL 100.0%
INCOME TAX INFORMATION
At August 31, 1994, the aggregate cost of investment securities for income
tax purposes was $1,109,746,000. Net unrealized depreciation aggregated
$4,035,000, of which $6,374,000 related to appreciated investment
securities and $10,409,000 related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) AUGUST 31, 1994

ASSETS

Investment in securities, at value (cost $1,109,746) - $ 1,105,711
See accompanying schedule

Receivable for investments sold 5,138
Regular delivery

Delayed delivery 4,819

Interest receivable 15,231

TOTAL ASSETS 1,130,899

LIABILITIES

Payable to custodian bank $ 45

Payable for investments purchased 11,089
Regular delivery

Delayed delivery 34,665

Payable for fund shares redeemed 1,316

Dividends payable 525

Accrued management fee 504

Payable for daily variation on futures contracts 19

TOTAL LIABILITIES 48,163

NET ASSETS $ 1,082,736

Net Assets consist of:

Paid in capital $ 1,091,981

Accumulated undistributed net realized gain (loss) on (5,210)
investments

Net unrealized appreciation (depreciation) on (4,035)
investments

NET ASSETS, for 109,985 shares outstanding $ 1,082,736

NET ASSET VALUE, offering price and redemption price per $9.84
share ($1,082,736 (divided by) shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED AUGUST 31, 1994

INTEREST INCOME $ 54,688

EXPENSES

Management fee $ 6,100

Non-interested trustees' compensation 7

Interest 1

Total expenses before reductions 6,108

Expense reductions (866) 5,242

NET INTEREST INCOME 49,446

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (4,043)

Futures contracts 578 (3,465)

Change in net unrealized appreciation (depreciation) on (27,205)
investment securities

NET GAIN (LOSS) (30,670)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 18,776
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED EIGHT MONTHS YEAR ENDED
AUGUST 31, ENDED AUGUST DECEMBER 31,
1994 31, 1992
1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 49,446 $ 24,825 $ 22,481
Net interest income

Net realized gain (loss) (3,465) 3,827 (1,894)

Change in net unrealized (27,205) 12,810 7,102
appreciation (depreciation)

NET INCREASE (DECREASE) IN NET 18,776 41,462 27,689
ASSETS RESULTING FROM
OPERATIONS

Distributions to shareholders: (49,456) (24,825) (22,481)
From net interest income

In excess of net realized gain (1,110) - -

TOTAL DISTRIBUTIONS (50,566) (24,825) (22,481)

Share transactions 1,202,475 678,560 718,466
Net proceeds from sales of shares

Reinvestment of distributions 43,957 21,754 19,486

Cost of shares redeemed (1,098,806) (408,742) (328,310)

Net increase (decrease) in net 147,626 291,572 409,642
assets resulting from share
transactions

TOTAL INCREASE (DECREASE) IN NET 115,836 308,209 414,850
ASSETS

NET ASSETS

Beginning of period 966,900 658,691 243,841

End of period $ 1,082,736 $ 966,900 $ 658,691

OTHER INFORMATION
Shares

Sold 120,280 67,756 73,150

Issued in reinvestment of 4,418 2,169 1,983
distributions

Redeemed (110,516) (40,794) (33,404)

Net increase (decrease) 14,182 29,131 41,729

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
YEAR ENDED EIGHT YEARS ENDED DECEMBER 31,
AUGUST 31, MONTHS
ENDED
AUGUST 31,

1994 1993 1992 1991 1990 1989

SELECTED PER-SHARE DATA

Net asset value, $ 10.090 $ 9.880 $ 9.780 $ 9.520 $ 9.490 $ 9.450
beginning of period

Income from .443 .303 .490 .559 .562 .536
Investment
Operations
Net interest income

Net realized and (.240) .210 .100 .260 .030 .040
unrealized gain
(loss)

Total from .203 .513 .590 .819 .592 .576
investment
operations

Less Distributions (.443) (.303) (.490) (.559) (.562) (.536)
From net interest
income

In excess of net (.010) - - - - -
realized gain on
investments

Total distributions (.453) (.303) (.490) (.559) (.562) (.536)

Net asset value, end $ 9.840 $ 10.090 $ 9.880 $ 9.780 $ 9.520 $ 9.490
of period

TOTAL RETURN B,C 2.05% 5.25% 6.18% 8.85% 6.42% 6.30%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 1,083 $ 967 $ 659 $ 244 $ 59 $ 58
period (in millions)

Ratio of expenses to .47% .55% .55% .55% .60% .58%
average net assets A

Ratio of expenses to .55% .55% .55% .75% .89% .87%
average net assets A
before expense
reductions

Ratio of net interest 4.45% 4.55% 4.95% 5.68% 5.90% 5.69%
income to average A
net assets

Portfolio turnover rate 44% 56% 28% 59% 75% 82%
A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1994

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Short-Intermediate Municipal Fund (the fund) is a fund of Fidelity
Union 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 Massachusetts business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which quotations are not readily
available through the pricing service are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
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. Distributions are declared daily and paid
monthly from net investment income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures transactions and market discount. The fund also utilized earnings
and profits distributed to shareholders on redemption of shares as a part
of the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net interest income per share. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS.
The fund may purchase or sell securities on a when-issued or forward
commitment basis. Payment and delivery may take place a month or more after
the date of the transaction. The price of the underlying securities and the
date when the securities will be delivered and paid for are fixed at the
time the transaction is negotiated. The fund identifies securities as
segregated in its custodial records with a value at least equal to the
amount of the purchase commitment.
FUTURES CONTRACTS AND OPTIONS.
The fund may invest in futures and options contracts, and may also write
options. These investments involve, to varying degrees, elements of market
risk and risks in excess of the amount recognized in the Statement of
Assets and Liabilities. The face or contract amounts reflect the extent of
the involvement the fund has in the particular classes of instruments.
Risks may be caused by an imperfect correlation between movements in the
price of the instruments and the price of the underlying securities and
interest rates. Risks also may arise if there is an illiquid secondary
market for the instruments, or due to the inability of counterparties to
perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $614,265,000 and $475,314,000,
respectively.
The market value of futures contracts opened and closed during the period
amounted to $192,369,000 and $192,606,000, respectively.
4. 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 .55% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $30,000.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
DISTRIBUTION AND SERVICE PLAN -
CONTINUED
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $90 for the
period.
5. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $6,800,000. The weighted average
interest rate was 3.63%.
6. 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 .40% to .55% of average net
assets and the reimbursement reduced expenses by $866,000.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Union Street Trust and the Shareholders of
Spartan Short-Intermediate Municipal Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Union Street Trust: Spartan Short-Intermediate Municipal Fund
including the schedule of portfolio investments, as of August 31, 1994, and
the related statement of operations for the year then ended, the
statement of changes in net assets for the year then ended, the eight
month period ended August 31, 1993, and for the year ended December 31,
1992 and the financial highlights for the year then ended, the eight month
period ended August 31, 1993 and the four years in the period ended
December 31, 1992. These financial statements and financial highlights are
the responsibility of the fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1994, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Union Street Trust: Spartan Short-Intermediate Municipal Fund
as of August 31, 1994, the results of its operations for the year then
ended, and the changes in its net assets for the year then ended, the eight
month period ended August 31, 1993, and for the year ended December 31,
1992, and the financial highlights for the year then ended, the eight
month period ended August 31, 1993 and the four years ended December 31,
1992, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
September 29, 1994
TO VISIT FIDELITY

TO WRITE FIDELITY

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2.
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4.
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5.
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* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
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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
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
David Murphy, Vice President
Gary L. Swayze, Vice President
Thomas J. Steffanci, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
United Missouri Bank, N.A.
Kansas City, MO
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
FIDELITY TAX-FREE BOND FUNDS
Aggressive Tax-Free
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Minnesota Tax-Free
Municipal Bond
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SpartanAggressive Municipal
(registered trademark)
Spartan California Municipal High Yield
Spartan Connecticut Municipal High Yield
Spartan Florida Municipal Income
Spartan Intermediate Municipal
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Spartan Municipal Income
Spartan New Jersey Municipal High Yield
Spartan New York Municipal High Yield
Spartan Pennsylvania Municipal High Yield
Spartan Short-Intermediate Municipal
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
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(8 a.m. - 9 p.m.)
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for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

(2_FIDELITY_LOGOS)SPARTAN(registered trademark)

GINNIE MAE
FUND
ANNUAL REPORT
AUGUST 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 13 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 17 Notes to the financial statements.

REPORT OF INDEPENDENT 19 The auditor's opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS
OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE
FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUND NOR FIDELITY
DISTRIBUTORS
CORPORATION IS A BANK. FOR MORE INFORMATION ON ANY FIDELITY FUND,
INCLUDING CHARGES
AND EXPENSES, CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU
INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income. If Fidelity had not reimbursed
certain fund expenses, the life of fund figures would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan Ginnie Mae -0.26% 27.95%

Salomon Brothers GNMA Pass-Through Index 0.20% n/a

Average GNMA Fund -1.15% n/a

Consumer Price Index 2.90% 11.36%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year or since the fund started on
December 27, 1990. For example, if you invested $1,000 in a fund that had a
5% return over the past year, you would end up with $1,050. You can compare
these figures to the performance of the Salomon Brothers GNMA Pass-Through
Index - a broad measure of the GNMA market. To measure how the fund stacked
up against its peers, you can look at the average GNMA fund, which reflects
the performance of 49 GNMA funds tracked by Lipper Analytical Services.
Both benchmarks include reinvested dividends and capital gains, if any.
Comparing the fund's performance to the consumer price index helps show how
your fund did compared to inflation. (The periods covered by CPI numbers
are the closest available match to those covered by the fund).
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan Ginnie Mae -0.26% 6.92%

Salomon Brothers GNMA Pass-Through Index 0.20% n/a

Average GNMA Fund -1.15% n/a

Consumer Price Index 2.90% 2.98%

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.
$10,000 OVER LIFE OF FUND
SPARTAN GNMA (461) SB PASSTHROUGH G
12/31/90 10000.00 10000.00
01/31/91 10104.29 10141.00
02/28/91 10164.55 10200.83
03/31/91 10239.68 10279.38
04/30/91 10302.27 10387.31
05/31/91 10368.06 10469.37
06/30/91 10380.53 10491.36
07/31/91 10535.23 10669.71
08/31/91 10732.58 10862.83
09/30/91 10902.34 11065.97
10/31/91 11063.73 11231.96
11/30/91 11129.01 11304.96
12/31/91 11378.64 11587.59
01/31/92 11291.23 11457.81
02/29/92 11443.23 11563.22
03/31/92 11373.38 11522.75
04/30/92 11467.56 11621.84
05/31/92 11671.06 11826.39
06/30/92 11808.40 11988.41
07/31/92 11791.77 12079.52
08/31/92 11898.54 12246.22
09/30/92 11982.19 12344.19
10/31/92 11900.61 12259.01
11/30/92 11955.80 12325.21
12/31/92 12118.74 12466.95
01/31/93 12269.42 12641.49
02/28/93 12386.01 12752.73
03/31/93 12468.41 12835.63
04/30/93 12522.25 12901.09
05/31/93 12592.40 12973.34
06/30/93 12720.23 13104.37
07/31/93 12787.95 13156.78
08/31/93 12803.67 13183.10
09/30/93 12802.51 13192.33
10/31/93 12850.68 13222.67
11/30/93 12777.53 13204.16
12/31/93 12881.97 13304.51
01/31/94 13025.35 13418.93
02/28/94 12915.75 13354.52
03/31/94 12612.75 13016.65
04/30/94 12498.61 12938.55
05/31/94 12515.69 12981.24
06/30/94 12488.19 12955.28
07/31/94 12740.57 13194.95
08/31/94 12772.26 13210.79

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Ginnie Mae Fund on December 31, 1990, shortly after the fund started. As
the chart shows, by August 31, 1994, the value of your investment would
have grown to $12,772 - a 27.72% increase on your initial investment. This
assumes you still own the fund on August 31, 1994 and therefore does not
include the effect of the $5 account closeout fee. For comparison, look at
how the Salomon Brothers GNMA Pass-Through Index did over the same period.
With dividends reinvested, the same $10,000 would have grown to $13,211 - a
32.11% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
YEARS ENDED AUGUST 31,

1994 1993 1992

Dividend return 5.24% 6.51% 8.30%

Capital appreciation return -5.50% 1.08% 2.55%

Total return -0.26% 7.59% 10.85%

DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by
the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee on an average sized account.
DIVIDENDS AND YIELD
PERIODS ENDED AUGUST 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.41(cents) 28.49(cents) 53.34(cents)

Annualized dividend rate 6.64% 5.85% 5.39%

30-day annualized yield 6.87% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.60 over
the past month, $9.66 over the past six months and $9.90 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Rising interest rates and inflation
concerns in the United States sent
worldwide bond prices sharply
lower during the first eight months
of 1994. Yields rose - and prices
fell - on virtually all types of
fixed-income investments. The
heaviest investor selling occurred
from February through May. That
coincided with the Federal
Reserve Board's aggressive
raising of short-term interest rates.
The Fed was hoping to head off
future inflation growth that might be
triggered by the improving U.S.
economy. However, bond investors
reacted strongly to any threat of
inflation because inflation
deteriorates the value of their
fixed-rate interest payments. For
the 12 months ended August 31,
1994, the Lehman Brothers
Aggregate Bond Index - a broad
measure of taxable bonds in the
U.S. market - had a total return of
- -1.51%. Even though refinancings
slowed, mortgage-backed
securities also suffered from rising
rates. The Lehman Brothers
mortgage index returned 0.37%
during the same period. Most
overseas bond markets took their
cue from the sell-off in the U.S. The
Salomon Brothers World
Government Bond Index - a
measure of bond market
performance in developed nations
- - rose 2.28% for the 12 months.
Although they were hit especially
hard during the first half of 1994,
emerging market bonds
rebounded in August. The J.P.
Morgan Emerging Markets Bond
Index returned 1.42% during the
12 months ended August 31.
An interview with Robert Ives,
Portfolio Manager of Spartan
Ginnie Mae Fund
Q. BOB, HOW DID THE FUND DO?
A. Although 1994 has been a tough year for bond investors, the fund did
outperform most of its peers. The fund's total return for the 12 months
ended August 31, 1994, was -0.26%. The average GNMA fund tracked by Lipper
Analytical Services returned -1.15% during the same period, while the
Salomon Brothers GNMA Pass-Through Index was up 0.20%.
Q. WHAT'S THE LATEST ON THE MORTGAGE BOND MARKET?
A. After a bond market rally that lasted nearly three years, interest rates
generally rose over the past six months. The Federal Reserve Board raised
short-term rates sharply in an attempt to hold the line on future inflation
that might result from a strengthening economy. But the mere threat of
inflation led to a sharp sell-off
in the bond markets. Although mortgage bond prices fell too, there was a
silver lining in the rate rise. It served to slow the rate of prepayments,
which had caused mortgage bonds to generally under-perform Treasuries when
rates were falling.
Q. HOW DOES THE SLOWDOWN IN
PREPAYMENTS HELP THE FUND?
A. A prepayment happens when the principal on a mortgage bond is paid to
its holder before the bond matures. That happens when a homeowner
refinances an existing mortgage or moves. The problem is, once a bond is
prepaid, the investor - in this case the fund - has to reinvest that money
in a newer mortgage bond, usually at a lower interest rate. When a mortgage
bond is sold in the marketplace, its price usually reflects an expected
likelihood of prepayment. And prepayments that happen faster than expected
can hurt the fund's total return. Over the past year, the fund avoided some
of the detrimental effects of prepayments by investing in seasoned bonds.
Their prices were low because investors felt that they were highly
susceptible to prepayments, however these bonds experienced slow
prepayments, which benefited the fund.
Q. WHAT DO YOU MEAN BY "SEASONED" BONDS?
A. Seasoning simply means the bonds have aged several years. Examples
include Ginnie Maes with coupons in the 8% and 9% range, issued in the late
1980s. There may be many reasons why these homeowners never refinanced, but
often they have low balances on their loans.
Q. DO PREPAYMENTS EVER HELP THE FUND?
A. Sometimes. Let's say I bought a discounted bond for $900. If the bond is
prepaid soon after, I'll get its par value of $1,000, and the fund has made
$100. I've already mentioned that some homeowners with seasoned mortgages
might not be apt to refinance, but they are more likely to move than
homeowners with newer mortgages. Now that refinancings have slowed, a
larger percentage of prepayments occur because of moves. To that end,
Fidelity's analysts have been helping me keep close track of expected
housing turnover rates nationwide. We search out discount bonds which we
expect to have a high level of prepayments.
Q. WHAT OTHER FACTORS AFFECTED THE FUND'S PERFORMANCE?
A. The fund had a small stake - 2.7% on February 28 - in collateralized
mortgage obligations or CMOs, which did well. These are essentially pieces
of mortgages; the mortgage's principal and interest payments are divided. I
felt these instruments were undervalued in the marketplace due to investor
confusion about expected prepayment rates. Eventually that prepayment risk
became clearer to investors and the value of the CMOs rose. While
technically considered derivatives because their value is tied to an
underlying mortgage security, the CMOs that I bought carried a relatively
low amount of prepayment and interest rate risk, lower, in fact, than their
underlying mortgage bonds. I've since sold the investments because I felt
that the CMOs had become more fully valued.
Q. WHICH INVESTMENTS DIDN'T WORK OUT AS PLANNED?
A. The fund had an 8.5% stake in 30-year Treasury bonds at the end of
February. I made the investment because I felt that long-term interest
rates had further room to fall. However, when the Fed raised short-term
rates in February, long-term rates shot upward, causing the prices of these
bonds to fall. I sold them pretty quickly, but they did dampen the fund's
total return.
Q. WHAT'S ON THE HORIZON FOR THE FUND?
A. I think the bond market could go either way from here. Lately, we've
been getting some mixed signals on economic growth and inflation, which has
resulted in increased market volatility. Despite this uncertainty, the
mortgage market looks better than it has in some time. If rates stabilize
or even rise slowly, I think mortgage bonds are well-positioned to
outperform comparable maturity Treasuries.

FUND FACTS
GOAL: to provide high current
income by investing primarily
in GNMA securities
START DATE: December 27, 1990
SIZE: as of August 31, 1994,
more than $401 million
MANAGER: Robert Ives, since
January 1993; manager,
Fidelity Ginnie Mae Portfolio,
since January 1993; Fidelity
Mortgage Securities Portfolio,
January 1993 - August 1993;
institutional mortgage-backed
funds, since May 1991; joined
Fidelity in 1991
(checkmark)
BOB IVES ON DURATION:
"The fund's duration - a
measure of its sensitivity to
changes in interest rates - rose
from 3.9 years to 4.9 years over
the past six months. This was
mostly due to the lengthening
duration of the overall market.
The high volume of refinancings
that occurred as interest rates fell
flooded the market with low
coupon bonds which have longer
durations. Also, as rates have
risen and refinancings have
slowed, the average mortgage
bond has a longer life, and
therefore, a longer duration.
"A longer duration could make
the fund's share price more
volatile in the months ahead.
However, the fund's duration was
historically low over the past
couple of years, and now we're
returning to more typical levels.
In addition, as rates have risen, so
has the fund's yield, which may
help offset future share price
drops."
(solid bullet) The fund's stake in Ginnie Mae
bonds has increased from 71.6%
six months ago to 91.2% on
August 31.
DISTRIBUTIONS
A total of 1.43% of the dividends
distributed during the fiscal year
was derived from interest on U.S.
Government securities which is
generally exempt from state
income tax. The fund will notify
shareholders in January 1995 of
the applicable percentage for use
in preparing 1994 income tax
returns.
INVESTMENT CHANGES

COUPON DISTRIBUTION AS OF AUGUST 31, 1994
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
6 MONTHS AGO

6 - 6.99% 6.6 6.5

7 - 7.99% 37.5 27.9

8 - 8.99% 19.7 23.2

9 - 9.99% 23.7 21.3

10 - 10.99% 6.2 8.3

11 - 11.99% 1.9 8.4

12 - 12.99% 3.1 2.6

13% and over 0.6 0.5

COUPON DISTRIBUTION SHOWS THE RANGE OF STATED INTEREST RATES ON THE FUND'S
INVESTMENTS, EXCLUDING REPURCHASE AGREEMENTS.
AVERAGE YEARS TO MATURITY AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 9.2 7.4

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL ON THE
FUND'S BONDS IS EXPECTED
TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 4.9 3.9

DURATION SHOWS HOW MUCH A BOND'S PRICE FLUCTUATES WITH CHANGES IN INTEREST
RATES. IF RATES RISE 1%,
FOR EXAMPLE, A BOND WITH A FIVE-YEAR DURATION WILL LOSE ABOUT 5% OF ITS
VALUE.
ASSET ALLOCATION
AS OF AUGUST 31, 1994* AS OF FEBRUARY 28, 1994**
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 48.0
Row: 1, Col: 3, Value: 50.0
Row: 1, Col: 1, Value: 1.3
Row: 1, Col: 2, Value: 2.7
Row: 1, Col: 3, Value: 8.5
Row: 1, Col: 4, Value: 40.0
Row: 1, Col: 5, Value: 47.5
Mortgage-backed
securities 99.3%
Other 0.7%
Mortgage-backed
securities 87.5%
U.S. government
and government
agency obligations 8.5%
CMOs and other
mortgage-related
securities 2.7%
Other 1.3%

* GNMA SECURITIES - 91.2%
** GNMA SECURITIES - 71.6%
INVESTMENTS AUGUST 31, 1994

Showing Percentage of Total Value of Investments

U.S. GOVERNMENT AGENCY - MORTGAGE-BACKED SECURITIES - 99.3%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FEDERAL HOME LOAN MORTGAGE CORPORATION - 5.8%
8 1/2%, 10/1/18 to 2/1/19 $ 36,279 $ 36,813
9%, 7/1/08 to 7/1/21 7,198,015 7,559,974
9 3/4%, 12/1/08 to 4/1/13 764,197 803,013
10%, 1/1/09 to 11/1/20 8,145,364 8,615,999
10 1/4%, 11/1/10 to 11/1/16 1,522,774 1,612,130
11 1/4%, 9/1/13 286,260 310,377
11 1/2%, 6/1/19 675,639 741,932
12%, 5/1/10 to 2/1/17 972,340 1,068,757
12 1/2%, 11/1/12 to 5/1/15 1,665,039 1,900,226
13%, 11/1/12 to 11/1/14 409,770 471,749
13 1/2%, 1/1/13 to 12/1/14 191,972 222,207
23,343,177
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.3%
10%, 7/1/04 650,860 692,756
10 1/2%, 11/1/05 2,493,063 2,676,926
11%, 8/1/10 963,882 1,063,075
12%, 3/1/17 1,376,864 1,545,530
12 1/4%, 12/1/14 to 6/1/15 90,224 100,587
12 1/2%, 11/1/13 to 5/1/21 2,192,294 2,482,772
13 1/4%, 9/1/11 735,173 839,017
9,400,663
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 91.2%
6 1/2%, 9/15/23 to 4/15/24 20,915,144 18,828,033
6 1/2%, 9/15/24 (a) 9,000,000 8,105,670
7%, 12/15/07 to 1/15/24 85,394,919 80,709,890
7 1/2%, 10/15/22 to 8/15/24 73,803,130 71,243,695
8%, 5/15/18 to 8/15/24 64,300,808 63,881,431
8 1/2%, 2/15/16 to 8/15/24 15,831,943 16,139,580
9%, 9/15/01 to 3/15/10 53,518,237 56,224,923
9 1/2%, 3/15/01 to 1/15/23 29,852,364 31,793,762
10%, 11/15/09 to 9/15/19 10,633,328 11,455,520
10 1/2%, 9/15/00 to 1/15/13 298,421 322,769
11%, 12/15/09 to 1/15/16 4,762,985 5,309,404
11 1/2%, 10/15/10 to 12/15/15 360,038 406,842
12%, 12/15/12 to 5/15/14 836,216 953,286
12 1/2%, 4/14/10 to 10/15/15 3,997,663 4,596,396
13%, 9/15/13 to 1/15/15 670,395 777,657
370,748,858
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE-
BACKED SECURITIES (Cost $405,679,834) 403,492,698
REPURCHASE AGREEMENTS - 0.7%
MATURITY VALUE
AMOUNT (NOTE 1)
Investments in repurchase agreements,
(U.S. Treasury obligations), in a
joint trading account at 4.83%
dated 8/31/94 due 9/1/94 $ 2,987,401 $ 2,987,000
TOTAL INVESTMENTS - 100%
(Cost $408,666,834) $ 406,479,698
LEGEND
(g) Security sold on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
INCOME TAX INFORMATION
At August 31, 1994, the aggregate cost of investment securities for income
tax purposes was $419,826,093. Net unrealized depreciation aggregated
$13,346,395, all of which related to depreciated investment securities.
The fund hereby designates $391,315 as a capital gain dividend for the
purpose of the dividend paid deduction.
The fund has elected to defer to its fiscal year ending August 31, 1995
$14,733,812 of losses recognized during the period November 1, 1993 to
August 31, 1994.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 31, 1994

ASSETS

Investment in securities, at value (including repurchase $ 406,479,698
agreements of $2,987,000) (cost $408,666,834) - See
accompanying schedule

Commitment to sell securities on a delayed delivery $ (8,105,670)
basis

Receivable for securities sold on a delayed delivery 8,115,469 9,799
basis

Receivable for investments sold, regular delivery 1,859,509

Cash 786

Interest receivable 2,800,035

TOTAL ASSETS 411,149,827

LIABILITIES

Payable for investments purchased 8,706,840

Payable for fund shares redeemed 646,883

Dividends payable 556,598

Accrued management fee 221,958

TOTAL LIABILITIES 10,132,279

NET ASSETS $ 401,017,548

Net Assets consist of:

Paid in capital $ 429,588,394

Distributions in excess of net investment income (491,682)

Accumulated undistributed net realized gain (loss) on (25,901,827)
investments

Net unrealized appreciation (depreciation) on (2,177,337)
investments

NET ASSETS, for 41,606,564 shares outstanding $ 401,017,548

NET ASSET VALUE, offering price and redemption price per $9.64
share ($401,017,548 (divided by) shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1994

INVESTMENT INCOME $ 41,167,549
Interest

EXPENSES

Management fee $ 3,336,038

Non-interested trustees' compensation 3,393

TOTAL EXPENSES 3,339,431

NET INVESTMENT INCOME 37,828,118

REALIZED AND UNREALIZED GAIN (LOSS) (33,092,333)
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on:

Investment securities (6,939,349)

Delayed delivery commitments 9,799 (6,929,550)

NET GAIN (LOSS) (40,021,883)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (2,193,765)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,

1994 1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 37,828,118 $ 58,520,758
Net investment income

Net realized gain (loss) (33,092,333) (5,319,289)

Change in net unrealized appreciation (depreciation) (6,929,550) 2,840,732

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (2,193,765) 56,042,201
FROM OPERATIONS

Distributions to shareholders: (27,176,375) (48,304,215)
From net investment income

From net realized gain - (19,460,315)

In excess of net realized gain (4,300,957) -

TOTAL DISTRIBUTIONS (31,477,332) (67,764,530)

Share transactions 78,976,702 245,596,540
Net proceeds from sales of shares

Reinvestment of distributions 23,657,169 52,029,607

Cost of shares redeemed (351,849,693) (439,587,780)

Net increase (decrease) in net assets resulting from (249,215,822) (141,961,633)
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS (282,886,919) (153,683,962)

NET ASSETS

Beginning of period 683,904,467 837,588,429

End of period (including under (over) distribution of net $ 401,017,548 $ 683,904,467
investment income of ($491,682) and $12,642,531,
respectively)

OTHER INFORMATION
Shares

Sold 7,887,946 24,083,307

Issued in reinvestment of distributions 2,380,934 5,106,989

Redeemed (35,239,181) (43,169,890)

Net increase (decrease) (24,970,301) (13,979,594)

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
YEARS ENDED AUGUST 31, DECEMBER 27,
1990
(COMMENCEMENT
OF OPERATIONS) TO
AUGUST 31,

1994 1993 1992 1991

SELECTED PER-SHARE DATA

Net asset value, beginning $ 10.270 $ 10.400 $ 10.160 $ 10.000
of period

Income from Investment .332D .800 .832 .578
Operations
Net investment income

Net realized and unrealized (.359) (.050) .236 .154
gain (loss)

Total from investment (.027) .750 1.068 .732
operations

Less Distributions (.533) (.640) (.808) (.572)
From net investment
income

From net realized gain - (.240) (.020) -
on investments

In excess of net realized (.070) - - -
gain on investments

Total distributions (.603) (.880) (.828) (.572)

Net asset value, end of period $ 9.640 $ 10.270 $ 10.400 $ 10.160

TOTAL RETURN B, C (0.25) 7.61% 10.86% 7.53%
%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end of period $ 401,018 $ 683,904 $ 837,588 $ 422,498
(000 omitted)

Ratio of expenses to average .65% .41% .17% .25%A
net assets

Ratio of expenses to average .65% .65% .65% .65%A
net assets before expense
reductions

Ratio of net investment 7.36% 7.63% 8.09% 8.69%A
income
to average net assets

Portfolio turnover rate 285% 241% 168% 41%A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES. (SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1994

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Ginnie Mae Fund (the fund) is a fund of Fidelity Union 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
Massachusetts business trust. The following summarizes the significant
accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which quotations are not readily
available are valued at their fair value as determined in good faith under
consistently applied procedures under the general supervision of the Board
of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net investment income. Distributions from realized gains, if
any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
paydown gains/losses on mortgage-backed securities and losses deferred due
to wash sales and excise tax regulations.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net investment income per share. Distributions in excess of net
investment income may include temporary book and tax basis differences
which will reverse in a subsequent period. Any taxable income or gain
remaining at fiscal year end is dis- tributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective September
1, 1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and
Financial Statement Presentation of
Income, Capital Gain, and Return of Capital Distributions by Investment
Companies. As a result, the fund changed the classification of
distributions to shareholders to better disclose the differences between
financial statement amounts and distributions determined in accordance with
income tax regulations. Accordingly,
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
amounts as of August 31, 1993 have been reclassified to reflect a decrease
in paid in capital of $1,263,010, a decrease in undistributed net
investment income of $11,747,618 and a decrease in accumulated net realized
loss on investments of $13,010,628.
2. OPERATING POLICIES.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of FMR, may transfer uninvested cash balances into one or more
joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and are collateralized by U.S. Treasury or Federal Agency
obligations.
DELAYED DELIVERY TRANSACTIONS.
The fund may purchase or sell securities on a when-issued or forward
commitment basis. Payment and delivery may
take place a month or more after the date of the transaction. The price of
the underlying securities and the date when the securities will be
delivered and paid for are fixed at the time the transaction is negotiated.
The fund may receive compensation for interest forgone in a delayed
delivery transaction. The fund identifies securities as segregated in its
custodial records with a value at least equal to the amount of the purchase
commitment.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of long-term U.S. government and government agency
obligations aggregated $1,466,451,099 and $1,740,783,675, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's
investment adviser, FMR pays all expenses except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR
receives a fee that is computed daily at
an annual rate of .65% of the fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $44,907.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Union Street Trust and the Shareholders of
Spartan Ginnie Mae Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Union Street Trust: Spartan Ginnie Mae Fund, including the
schedule of portfolio investments, as of August 31, 1994, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended, and the
financial highlights for each of the three years in the period then ended
and for the period December 27, 1990 (commencement of operations) to August
31, 1991. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1994, by correspondence with the
custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Union Street Trust: Spartan Ginnie Mae Fund as of August 31,
1994, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the three years in the period then ended
and for the period December 27, 1990 (commencement of operations) to August
31, 1991, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
September 29, 1994
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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
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Norman Lind, Vice President
Thomas J. Steffanci, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
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Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
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SERVICING AGENT
Fidelity Service Co.
Boston, MA
United Missouri Bank, N.A.
Kansas City, MO
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The Bank of New York
New York, NY
* INDEPENDENT TRUSTEES
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(2_FIDELITY_LOGOS)SPARTAN(registered trademark)

MUNICIPAL INCOME
PORTFOLIO
ANNUAL REPORT
AUGUST 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 24 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 28 Notes to the financial statements.

REPORT OF INDEPENDENT 31 The auditor's opinion.
ACCOUNTANTS

Spartan Municipal Income -1.42% 40.94%

Lehman Brothers Municipal Bond Index 0.14% n/a

Average General Municipal Bond Fund -1.10% n/a

Consumer Price Index 2.90% 15.33%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year or since the fund started on
June 4, 1990. For example, if you invested $1,000 in a fund that had a 5%
return over the past year, you would end up with $1,050. You can compare
these figures to the performance of the Lehman Brothers Municipal Bond
index - a broad measure of the municipal bond market. To measure how the
fund stacked up against its peers, you can look at the average general
municipal bond fund, which reflects the performance of 202 similar
municipal bond funds tracked by Lipper Analytical Services. Both benchmarks
include reinvested dividends and capital gains, if any. Comparing the
fund's performance to the consumer price index helps show how your fund did
compared to inflation. (The CPI returns begin on the month end closest to
the fund's start date).
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan Municipal Income -1.42% 8.41%

Lehman Brothers Municipal Bond Index 0.14% n/a

Average General Municipal Bond Fund -1.10% n/a

Consumer Price Index 2.90% 3.41%

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.
$10,000 OVER LIFE OF FUND
Spartan Muni Inc. (424)Municipal Bond Index (SH15)
06/30/90 10000.00 10000.00
07/31/90 10181.47 10147.00
08/31/90 9974.13 9999.87
09/30/90 10017.45 10005.87
10/31/90 10121.87 10186.97
11/30/90 10359.04 10391.73
12/31/90 10425.75 10437.46
01/31/91 10552.62 10577.32
02/28/91 10615.56 10669.34
03/31/91 10668.63 10673.61
04/30/91 10826.12 10815.57
05/31/91 10964.36 10911.83
06/30/91 10953.34 10900.91
07/31/91 11104.20 11033.91
08/31/91 11235.66 11179.55
09/30/91 11366.05 11324.89
10/31/91 11464.39 11426.81
11/30/91 11473.45 11458.81
12/31/91 11749.14 11705.17
01/31/92 11748.27 11732.09
02/29/92 11767.02 11735.61
03/31/92 11790.52 11740.31
04/30/92 11901.96 11844.80
05/31/92 12060.83 11984.56
06/30/92 12251.68 12185.90
07/31/92 12617.13 12551.48
08/31/92 12463.74 12428.48
09/30/92 12528.61 12509.26
10/31/92 12314.71 12386.67
11/30/92 12593.68 12608.39
12/31/92 12733.78 12737.00
01/31/93 12911.16 12884.75
02/28/93 13428.90 13351.18
03/31/93 13302.89 13209.65
04/30/93 13405.33 13343.07
05/31/93 13522.61 13417.79
06/30/93 13771.91 13641.87
07/31/93 13813.56 13659.60
08/31/93 14152.92 13943.72
09/30/93 14341.56 14102.68
10/31/93 14355.77 14129.48
11/30/93 14225.06 14005.14
12/31/93 14556.51 14300.65
01/31/94 14731.99 14463.67
02/28/94 14312.83 14089.06
03/31/94 13549.62 13515.64
04/30/94 13630.75 13630.52
05/31/94 13756.39 13749.11
06/30/94 13646.92 13669.36
07/31/94 13923.31 13919.51
08/31/94 13952.60 13968.23
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Municipal Income Portfolio on June 30, 1990, shortly after the fund
started. As the chart shows, by August 31, 1994, the value of your
investment would have grown to $13,953 - a 39.53% increase on your initial
investment. This assumes you still own the fund on August 31, 1994, and
therefore does not include the effect of the $5 account closeout fee. For
comparison, look at how the Lehman Brothers Municipal Bond index did over
the same period. With dividends reinvested, the same $10,000 would have
grown to $13,968 - a 39.68% increase.

1994 1993 1992 1991

Dividend return 5.54% 6.69% 7.15% 7.90%

Capital appreciation -6.96% 6.86% 3.77% 4.74%
return

Total return -1.42% 13.55% 10.92% 12.64%

Dividends per share 5.12(cents) 30.73(cents) 61.11(cents)

Annualized dividend rate 6.00% 6.04% 5.79%

30-day annualized yield 6.16% - -

30-day annualized tax-
equivalent yield 9.63% - -

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.04 over
the past month, $10.10 over the past six months and $10.56 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 36% federal tax bracket.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Rising interest rates and inflation
concerns sent U.S. bond prices
sharply lower during the first eight
months of 1994. Yields rose -
and prices fell - on taxable and
tax-free bonds alike. The
heaviest investor selling occurred
from February through May. That
coincided with the Federal
Reserve Board's raising of
short-term interest rates. The Fed
was hoping to head off future
inflation growth that might be
triggered by the improving U.S.
economy. However, bond
investors reacted strongly to any
threat of inflation because
inflation deteriorates the value of
their fixed-rate interest payments.
Two influences roughly offset
each other in the municipal bond
market. First, investor demand
fell due to inflation worries, which
dampened prices. However, the
supply of tax-free bonds fell
sharply as well. The
ability of states, cities and public
agencies to refinance
outstanding debt at lower, more
attractive rates was limited amid a
rising interest rate environment.
For the 12 months ended August
31, 1994, the Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
had a total return of 0.14%. By
comparison, the Lehman
Brothers Aggregate Bond Index
- - a proxy of investment-grade
taxable bonds -
returned -1.51% during the same
period. Most overseas bond
markets took their cue from the
sell-off in the U.S. The Salomon
Brothers World Government
Bond Index - which includes
U.S. issues - rose 2.28% for the
12 months. The J.P. Morgan
Emerging Markets Bond Index
returned 1.42%.
An interview with Norman Lind, Portfolio Manager of Spartan Municipal
Income Portfolio
Q. NORM, HOW DID THE FUND DO?
A. With interest rates rising during the past six months, it has been a
difficult period for both the municipal market and the fund. For the six
months ended August 31, 1994, the fund had a total return of -2.53%. That
lagged the average municipal bond fund's return of-1.83% for the same
period, according to Lipper Analytical Services. For the year ended August
31, 1994, the fund returned -1.42%, compared to the average fund's return
of -1.10%, again according to Lipper.
Q. WHY DID THE FUND LAG THE AVERAGE?
A. Mainly because it had a longer duration during much of the period than
many of its competitors. Duration is a measure of the fund's sensitivity to
changes in interest rates. The longer the fund's duration, the more
volatile its share price is to changes in interest rates. As a result, the
fund's share price fell more than many of its competitors when interest
rates rose. However, my view is that long-term interest rates will remain
flat or even fall from current levels, and having a longer duration will
benefit the fund if that kind of environment evolves. However, to generally
help reduce the fund's volatility, I've sold bond futures contracts.
Q. THERE'S BEEN A LOT OF TALK RECENTLY ABOUT DERIVATIVES. AREN'T FUTURES
ONE TYPE OF DERIVATIVE AND DO YOU USE OTHERS?
A. Yes, a futures contract is one type of financial derivative - meaning
its market value is derived from a security or market index. We've used
futures and options in our municipal bond funds for years. More recently,
I've used what's known as an inverse floater - whose yield rises as
short-term rates fall, and vice versa. Inverse floaters act like longer-
term bonds, effectively increasing a fund's duration, which is good in a
falling interest rate environment but can hurt the fund when interest rates
rise. During the past six months, inverse floaters made up less than 5% of
the fund's total investments. By using these various derivatives, I achieve
increased flexibility in managing the fund's overall sensitivity to changes
in interest rates, and hopefully, can achieve higher levels of income.
Q. WHAT WERE SOME OF THE BRIGHT SPOTS FOR THE FUND?
A. The fund's investments in New York state-appropriated and New York City
bonds did relatively well. State-appropriated bonds rely on annual
appropriations by the state legislature to meet all or part of their
principal and interest payments. As the state's economy and fiscal
condition improved, investors seemed to expect these bonds to get upgraded.
As a result, they did relatively well. New York City bonds also benefited
from the state's, and its own, improving economy. The fund's total
investments in New York bonds stood at 13.1% of investments at the end of
August 1994. Another bright spot was that despite the market's downturn,
the fund still posted a relatively high yield.
Q. HOW DO YOU GO ABOUT GENERATING THAT HIGH YIELD?
A. One way is through owning non-investment grade bonds - those rated Ba or
lower by Moody's Investors Services - or non-rated bonds, which we think
can benefit from an improving economy. For example, lower-rated industrial
development bonds and selected health care issues can add substantial yield
to the
portfolio. Fidelity's fixed income analysts do extensive research to
identify these bonds. Non-investment grade bonds made up 11.4% of the
fund's total investments at the end of August 1994.
Q. WHAT'S AHEAD FOR THE MUNICIPAL MARKET?
A. Higher commodity and industrial product prices have caused many
investors to worry that inflation is on the rise. But I think those numbers
are just a temporary blip. The service sector - which is the majority of
the U.S. economy - hasn't been able to raise prices. What's more, wages
aren't rising dramatically. In my view, those factors indicate that higher
interest rates have done their job and slowed the economy down, and
inflation should not be a major problem going forward. A moderate growth,
low-inflation environment is usually good for bonds. As a result, I think
the municipal bond market could post positive results over the next six to
12 months.

FUND FACTS
GOAL: to provide high current
income exempt from federal
taxes
START DATE: June 4, 1990
SIZE: as of August 31, 1994,
more than $680 million
MANAGER: Norman Lind,
since June 1990; manager,
Fidelity New York Insured
Tax-Free Portfolio, since
March 1994; Fidelity New
York Tax-Free High Yield
Portfolio and Spartan New
York Tax-Free Portfolio,
since October 1993; joined
Fidelity in 1986
(checkmark)
NORM LIND ON FINDING VALUE:
"The market's sell-off did
present an opportunity to buy
the types of bonds I wanted at
`bargain' prices. With the
quantitative expertise of
Fidelity's fixed-income
analysts, I was able to identify
bonds that were undervalued,
meaning they were trading for
a price that was below what we
believed to be their actual
value. For example, I bought
some non-callable bonds - or
bonds that can't be redeemed
before their scheduled maturity
dates - at relatively attractive
prices in the early spring. Our
quantitative process helps us
identify bonds that are
undervalued."
(solid bullet) California was the fund's
largest state concentration at
14.3% of investments at the
end of August 1994. More
than half of these bonds were
insured or guaranteed by an
issuer other than the state. As
a result, very little of the fund's
holdings were affected by a
recent downgrade of some
California municipal bonds.
DISTRIBUTION
The Board of Trustees of
Spartan Municipal Income
Portfolio voted to pay on
October 11, 1994, to
shareholders of record at the
opening of business on
October 7, 1994, a
distribution of $.08 derived
from capital gains realized
from sales of portfolio
securities.
INVESTMENT CHANGES

TOP FIVE STATES AS OF AUGUST 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

California 14.3 10.1

New York 13.1 13.4

Washington 6.8 6.2

Pennsylvania 6.5 4.6

Illinois 5.8 3.5

TOP FIVE SECTORS AS OF AUGUST 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Electric Revenue 21.3 22.5

Health Care 13.2 11.8

Lease Revenue 11.6 11.5

Transportation 10.9 13.8

Special Tax 9.6 7.7

AVERAGE YEARS TO MATURITY AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 19.9 20.5

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 10.3 9.1

Row: 1, Col: 1, Value: 2.1
Row: 1, Col: 2, Value: 11.4
Row: 1, Col: 3, Value: 2.7
Row: 1, Col: 4, Value: 18.8
Row: 1, Col: 5, Value: 39.8
Row: 1, Col: 6, Value: 25.2
Aaa 25.2%
Aa, A 39.8%
Baa 18.8%
Ba, B 2.7%
Non-rated 11.4%
Short-term investments 2.1%
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED
DEBT SECURITIES THAT ARE EQUIVALENT TO BA AND BELOW AT AUGUST 31, 1994
ACCOUNT FOR 10.2% OF THE FUND'S INVESTMENTS.
INVESTMENTS AUGUST 31, 1994

Showing Percentage of Total Value of Investment in Securities

MUNICIPAL BONDS - 97.9%
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
ALABAMA - 0.1%
Alabama Hsg. Fin. Auth. Single Family Mtg.
Rev. Series 1983 A, 0% 10/1/14 Aaa $ 4,505,000 $ 568,756
ARIZONA - 0.6%
Chandler:
7.375% 7/1/09, (FGIC Insured) Aaa 1,000,000 1,128,750
4.375% 7/1/12, (FGIC Insured) Aaa 1,000,000 803,750
Tucson Wtr. Rev. Series D:
9.75% 7/1/07 A1 500,000 683,125
9.75% 7/1/08 A1 500,000 680,000
9.75% 7/1/09 A1 750,000 1,021,875
4,317,500
CALIFORNIA - 12.5%
California Gen. Oblig. 4.75% 9/1/23 A1 8,500,000 6,608,750
California Hsg. Fin. Agcy. Rev. (Home Mtg.)
Series 1983 A, 0% 2/1/15 Aa 238,000 31,535
California Pub. Wrks. Board Lease Rev.:
Rfdg. (Dept. Corrections St. Prisons) Series A,
5% 12/1/19, (AMBAC Insured) (c) Aaa 5,000,000 4,175,000
(California University Proj.) Series A:
Rfdg. 5.50% 6/1/14 A 3,000,000 2,670,000
5.50% 12/1/18 A 2,500,000 2,200,000
Culver City Redev. Fing. Auth. Rev. Rfdg.
Tax Allocation:
5.50% 11/1/14, (AMBAC Insured) Aaa 2,000,000 1,855,000
4.60% 11/1/20, (AMBAC Insured) Aaa 3,000,000 2,321,250
Los Angeles County Metropolitan Trans. Auth.
Sales Tax Rev. Rfdg. Series A, 5% 7/1/21,
(FGIC Insured) Aaa 3,500,000 2,900,625
Metropolitan Wtr. Dist. Southern California
Wtrwks. Rev. Rfdg. Series A, 5.75% 7/1/21 Aa 9,000,000 8,561,250
Northern California Pwr. Agcy. Pub. Pwr. Rev.
Rfdg. (Geothermal Proj. # 3) Series A,
5.85% 7/1/10 A 1,750,000 1,682,188
Sacramento Fing. Auth. Lease Rev. Rfdg.:
Series A, 5.40% 11/1/20, (AMBAC Insured) Aaa 10,000,000 8,900,000
Series B, 5.40% 11/1/20 Aa 12,000,000 10,425,000
San Bernardino County Ctfs. of Prtn.
(Med Ctr. Fing. Proj.) 5.50% 8/1/17 Baa1 4,000,000 3,465,000
San Diego Swr. Rev. Series A,
5% 5/15/23, (AMBAC Insured) Aaa 3,500,000 2,887,500
San Joaquin County Ctfs. of Prtn.
(Cap. Facs. Proj.) 4.90% 11/15/08,
(MBIA Insured) Aaa 4,000,000 3,595,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
San Jose Redev. Agcy. Tax Allocation (Merged
Area Redev. Proj.) 5% 8/1/20, (MBIA Insured) Aaa $ 2,550,000 $ 2,116,500
South Orange County California Pub. Fing. Auth.
Special Tax Rev. (Foothill Area) Series C,
7.50% 8/15/07, (FGIC Insured) Aaa 2,500,000 2,893,750
Southern California Pub. Pwr. Auth:
(San Juan Unit 3) Series A, 5.375%
1/1/10, (MBIA Insured) Aaa 2,735,000 2,570,900
(Transmission Proj. Rev.) Rfdg. Sub Series A,
4.75% 7/1/23, (MBIA Insured) Aaa 3,110,000 2,433,575
Three Valleys Muni. Wtr. Dist. Rev. Rfdg.
Ctfs. of Prtn. 5% 11/1/14, (FGIC Insured) Aaa 4,590,000 3,941,663
Univ. of California Rev. Rfdg. Series C,
5% 9/1/23, (AMBAC Insured) Aaa 3,550,000 2,924,313
West & Central Basin Wtr. Rfdg.
(West Basin Proj.) (g):
6.67% 8/1/07, (AMBAC Insured) INFL Aaa 2,900,000 2,566,500
6.77% 8/1/08, (AMBAC Insured) INFL Aaa 3,050,000 2,645,875
84,371,174
COLORADO - 3.7%
Adams County Single Family Mtg. Rev.
Rfdg. Series A-2, 8.70% 6/1/12,
(FSA Insured) Aaa 5,000,000 5,550,000
Colorado Health Facs. Auth. Rev.:
(PSL Health Sys. Proj.):
Series A, 6.875% 2/15/23 Baa1 4,000,000 3,970,000
Series B, 8.50% 2/15/21 Baa1 2,250,000 2,466,563
(Rocky Mountain Adventist) 6.625% 2/1/13 Baa 8,500,000 8,266,250
Denver City & County Arpt. Rev. (e):
Series A, 0% 11/15/05 Baa 4,615,000 1,984,450
Series D, 0% 11/15/05 Baa 5,000,000 2,150,000
Denver City & County Ind. Dev. Rev. (Denver Univ.
Prog.) Series 1991, 7.50% 3/1/11 BBB 870,000 935,250
25,322,513
CONNECTICUT - 0.9%
Connecticut Health & Ed. Facs. Auth. Rev.
(St. Raphael Hosp.) 5.30% 7/1/10,
(AMBAC Insured) Aaa 2,990,000 2,784,438
Connecticut Unltd. Tax Rfdg. Series E,
6% 3/15/12 Aa 3,215,000 3,247,150
6,031,588
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
DISTRICT OF COLUMBIA - 2.0%
District of Columbia Hosp. Rev. (Hosp. for Sick
Children) Series A, 8.875% 1/1/21 - $ 3,465,000 $ 3,733,538
District of Columbia Rev. (Georgetown Univ.)
Series A, 7.40% 4/1/18 A1 2,380,000 2,549,575
Metropolitan Washington Arpt. Auth. Gen.
Arpt. Rev. Series A (e):
7.25% 10/1/10, (FGIC Insured) Aaa 3,000,000 3,247,500
5.75% 10/1/20, (MBIA Insured) Aaa 4,000,000 3,720,000
13,250,613
FLORIDA - 0.9%
Dade County Aviation Rev. Series P,
6.75% 10/1/94 (e) Aa 2,900,000 2,907,250
Jacksonville Health Facs. Auth. Hosp. Rev.
(Baptist Med. Ctr.) Series A, 7.30% 6/1/19,
(MBIA Insured) Aaa 3,000,000 3,251,250
6,158,500
GEORGIA - 2.2%
Brunswick Wtr. & Swr. Rev. Rfdg. & Impt. 6.10%
10/1/19, (MBIA Insured) Aaa 1,500,000 1,511,250
Cobb-Marrieta Coliseum & Exhibit Hall Auth.
Rev. Rfdg. 5.50% 10/1/12, (MBIA Insured) Aaa 3,975,000 3,741,469
Georgia Residential Fin. Auth. Home Ownership
Mtg. Series 1984 B, 0% 12/1/15 (c) Aa3 34,815,000 3,568,538
Muni. Elec. Auth. Spl. Oblig. Fourth Crossover
Series Proj. #1, 6.50% 1/1/20 A 5,750,000 5,915,313
14,736,570
HAWAII - 2.2%
Hawaii Arpts. Sys. Rev. 2nd Series, 7.50%
7/1/20, (FGIC Insured) (e) Aaa 1,500,000 1,646,250
Hawaii County Rfdg. & Impt. Series A, 5.55%
5/1/09, (FGIC Insured) Aaa 1,000,000 961,250
Hawaii Gen. Oblig.:
Series CH, 6% 11/1/08 (c) Aa 3,390,000 3,474,750
Series CH, 6% 11/1/09 Aa 4,000,000 4,050,000
Honolulu City & County Rfdg. & Impt. Series B,
5% 10/1/13 Aa 5,000,000 4,393,750
14,526,000
IDAHO - 1.8%
Idaho Falls Elec. Rfdg.:
0% 4/1/07, (FGIC Insured) Aaa 4,000,000 1,920,000
0% 4/1/08, (FGIC Insured) Aaa 1,950,000 877,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
IDAHO - CONTINUED
Idaho Hsg. Agcy. Residential Mtg. Rev.
Series 1984 A, 0% 7/1/15 Aa1 $ 57,900,000 $ 6,948,000
Idaho Hsg. Agcy. Single Family Mtg.
Series 1991 B, 7.50% 7/1/24 AA 2,500,000 2,603,125
12,348,625
ILLINOIS - 5.8%
Chicago Gen. Oblig. Rfdg. Series B, 5.125%
1/1/15, (FGIC Insured) Aaa 2,250,000 1,940,625
Chicago O'Hare Int'l. Arpt. Spl. Facs. Rev.
(United Airlines, Inc.) 8.25% 5/1/99 (e) Baa3 4,395,000 4,675,181
Chicago O'Hare Int'l. Arpt. Rev. Rfdg. Sr.
Lien Series A:
5% 1/1/12 A1 7,500,000 6,506,250
5% 1/1/16 A1 6,325,000 5,328,813
Chicago Residential Mtg. Rev. Rfdg. (Cap.
Appreciation) Series B, 0% 10/1/09,
(MBIA Insured) Aaa 9,000,000 3,105,000
Chicago Single Family Mtg. Rev. (Cap.
Appreciation) Series A, 0% 12/1/16,
(FGIC Insured) Aaa 44,255,000 5,421,238
DeKalb Single Family Mtg. Rev. 7.45% 12/1/09,
(GNMA Coll.) (e) Aaa 2,215,000 2,322,981
Illinois Dev. Fin. Auth. Solid Waste Disp. Rev.
(Ford Heights Waste Tire Proj.)
7.875% 4/1/11 (e) - 10,000,000 10,150,000
39,450,088
INDIANA - 0.6%
Indianapolis Arpt. Fac. Rev. Econ. Dev. Rfdg.
(Federal Express Corp. Proj.) 6.85% 4/1/17 (b) Baa3 4,000,000 3,980,000
KANSAS - 0.2%
Reno County Mtg. Rev. Rfdg. (Single Family)
Series B, 8.70% 9/1/11 A1 980,000 1,048,600
KENTUCKY - 1.5%
Kenton County Arpt. Board Arpt. Rev. (Spl. Facs.
Delta) Series A, 7.50% 2/1/20 (e) Ba1 3,600,000 3,582,000
Kentucky Tpk. Auth. Econ. Dev. Rev. Rfdg.
(Revitalization Proj.) 5.50% 7/1/07,
(AMBAC Insured) Aaa 5,000,000 4,925,000
Owensboro Elec. Lt. & Pwr. Rev. Series B,
0% 1/1/10, (AMBAC Insured) Aaa 4,000,000 1,560,000
10,067,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
LOUISIANA - 0.3%
New Orleans Rfdg. (Cap. Appreciation)
0% 9/1/12, (AMBAC Insured) Aaa $ 6,250,000 $ 2,046,875
MARYLAND - 1.5%
Maryland Health & Higher Ed. Facs. Auth. Rev.:
Proj. & Rfdg. (Doctors Commty. Hosp.):
5.75% 7/1/13 Baa 2,000,000 1,727,500
5.50% 7/1/24 Baa 7,500,000 5,971,875
(Howard County Gen. Hosp.) 5.50% 7/1/13 Baa1 3,000,000 2,655,000
10,354,375
MASSACHUSETTS - 3.3%
Massachusetts Bay Trans. Auth. Rfdg. (Gen.
Trans. Sys.) Series A, 5.50% 3/1/12 A 5,000,000 4,675,000
Massachusetts Gen. Oblig. 5% 8/1/06 A 9,265,000 8,489,056
Massachusetts Health & Edl. Facs. Auth. Rev.
(St. Anne's Hosp.) Series A, 9.375% 7/1/14 B1 1,000,000 1,012,500
Massachusetts Ind. Fin. Agcy. 8.625% 10/1/23 - 1,945,000 1,891,513
Massachusetts Muni. Wholesale Elec. Co. Pwr.
Supply Sys. Rev.:
Series A, 6.75% 7/1/08 A 6,000,000 6,322,500
13.625% 7/1/17, (Pre-Refunded to
1/1/95 @ 103) (f) Baa1 5,000 5,164
13.625% 7/1/17, (Pre-Refunded to
7/1/95 @ 100) (f) Baa1 5,000 5,390
22,401,123
MICHIGAN - 3.5%
Detroit Swr. Disp. Rev. 7.821% 7/1/23,
(FGIC Insured) INFL (g) Aaa 3,000,000 2,557,500
Michigan Hosp. Fin. Auth. Rev. Rfdg.
(Pontiac Osteopathic Hosp.):
Series A, 6% 2/1/14 Baa1 1,500,000 1,355,625
6% 2/1/24 Baa1 3,500,000 3,084,375
(Sisters of Mercy Health Corp.) 5.375%
8/15/14, (MBIA Insured) Aaa 2,840,000 2,563,100
Michigan Pub. Pwr. Agcy. Rev. Rfdg.
(Belle River Proj.) Series B, 5% 1/1/19 A1 1,000,000 840,000
Michigan Strategic Fund Ltd. Oblig. Rev.
(Mercy Svcs. for Aging Proj.) 9.40% 5/15/20 - 3,900,000 4,173,000
Midland County Econ. Dev. Corp. Poll. Cont. Rev.
Rfdg. (Subordinated Ltd. Oblig.) Series B,
9.50% 7/23/09 (e) - 7,000,000 7,682,500
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
MICHIGAN - CONTINUED
Pontiac Hosp. Fin. Auth. Rev. (North Oakland
Med. Ctr. Obligated Group) 6% 8/1/18 Baa $ 1,000,000 $ 871,250
Waterford Township Econ. Dev. Corp. Rev.
Ltd. Tax Oblig. (Canterbury Health Care)
8.375% 7/1/23 - 800,000 815,000
23,942,350
MINNESOTA - 2.7%
Minneapolis & St. Paul Hsg. & Redev. Auth.
Healthcare Sys. Rev. Rfdg. (Healthspan Health
Sys. Corp.) Series A, 4.75% 11/15/18,
(AMBAC Insured) Aaa 5,000,000 4,031,250
Southern Minnesota Muni. Pwr. Agcy. Pwr.
Supply Sys. Rev. Series A, 4.75% 1/1/16 A1 17,500,000 14,546,875
18,578,125
MISSISSIPPI - 0.2%
Mississippi Hosp. Equip. & Facs. Auth. Rev.
(Rush Med. Foundation Proj.) Series A,
8.75% 1/1/16 Baa 1,500,000 1,646,250
MISSOURI - 2.5%
Kansas City Ind. Dev. Auth. Health Facs. Rev.:
Rfdg. & Impt. (Menorah Med. Ctr. Proj.)
9.25% 6/1/16 - 5,900,000 6,475,250
Rfdg. (Encore Nursing Ctr.) (Beverly
Enterprises, Inc.) 8% 12/1/02 - 3,175,000 3,385,344
Missouri Health & Edl. Facs. Auth. Health
Facs. Rev. (Still Reg'l. Med. Ctr. Proj.)
7.70% 2/1/13 Baa 2,000,000 2,080,000
St. Louis Regional Convention & Sports
Complex Auth. Series C:
7.75% 8/15/01 - 895,000 927,444
7.90% 8/15/21 - 3,500,000 3,696,875
16,564,913
MONTANA - 2.1%
Montana Board of Investment Payroll Tax
(Workers Compensation):
Series 1991, 6.875% 6/1/11, (MBIA Insured) Aaa 3,000,000 3,191,250
6.875% 6/1/20, (MBIA Insured) (c) Aaa 7,130,000 7,584,538
Montana Coal Severance Tax Rfdg.
(Broadwater Pwr. Proj.) Series A,
6.875% 12/1/11 (e) A1 3,050,000 3,164,375
13,940,163
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
NEBRASKA - 1.4%
Nebraska Pub. Pwr. Dist. Rev. Rfdg.
(Pwr. Supply Sys.) Series C, 5% 1/1/17 A1 $ 4,500,000 $ 3,858,750
Omaha Pub. Pwr. Dist. Elec. Rev. Series C,
5.50% 2/1/14 Aa 5,650,000 5,261,563
9,120,313
NEVADA - 1.0%
Clark County Ind. Dev. Rev. (Southwest Gas Corp.)
Series A, 6.50% 12/1/33 (e) Ba1 7,500,000 6,900,000
NEW JERSEY - 2.9%
Camden County Impt. Auth. Lease Rev.
(Dockside Refridgerated Holt) 8.40% 4/1/24 (e) - 3,000,000 3,123,750
New Jersey Econ. Dev. Auth. Econ. Dev. Rev.
Rfdg. (Holt Hauling & Warehouse)
Series G, 8.40% 12/15/15 - 5,000,000 5,062,500
New Jersey Tpk. Auth. Tpk. Rev. Rfdg. Series C:
6.50% 1/1/16 A 9,000,000 9,472,500
6.50% 1/1/16, (MBIA Insured) Aaa 2,000,000 2,135,000
19,793,750
NEW MEXICO - 1.0%
Farmington Poll. Cont. Rev. Rfdg. (Pub.
Svc. Co. San Juan Proj.) Series A,
6.40% 8/15/23 Ba2 3,250,000 2,990,000
Hobbs Single Family Mtg. Rev. Rfdg.
8.75% 7/1/11 A 1,975,000 2,135,469
New Mexico Univ. Rev. Rfdg. Series A,
6.25% 6/1/12 A1 1,560,000 1,597,050
6,722,519
NEW YORK - 13.1%
Metropolitan Trans. Auth. Svc. Contract:
(Commuter Facs.) Series O, 5.75% 7/1/13 Baa1 1,000,000 947,500
Series O, 5.75% 7/1/13 Baa1 2,000,000 1,895,000
Rfdg. Series 7, 0% 7/1/09 Baa1 7,500,000 2,953,125
New York City Ind. Dev. Agcy. Spl. Facs. Rev.
(Terminal One Group Assoc. Proj.)
6% 1/1/19 (e) A 5,000,000 4,750,000
New York State Dorm. Auth. Rev
Rfdg. (State Univ. Edl. Facs.) Series A:
5.50% 5/15/09 Baa1 4,000,000 3,725,000
5.50% 5/15/13 Baa1 13,100,000 11,937,375
5.25% 5/15/15 (c) Baa1 10,000,000 8,750,000
(Suffolk County Judicial Facs.) Series A,
9.50% 4/15/14 Baa1 7,000,000 8,058,750
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Local Gov't. Assistance Corp.
Rfdg.:
Series C, 5.50% 4/1/17 A $ 15,000,000 $ 13,668,750
Series C, 5% 4/1/21 A 12,000,000 9,975,000
Series E, 5.25% 4/1/16 A 4,075,000 3,606,375
New York State Urban Dev. Corp. Rev.
Rfdg. (Correctional Facs.) Series A,
5.50% 1/1/09 Baa1 3,500,000 3,263,750
New York Unltd. Tax Rfdg. Series D,
5.75% 8/15/10 Baa1 2,000,000 1,865,000
Triborough Bridge & Tunnel Auth. Rev.
(Gen. Purp.):
Rfdg. Series Y, 5.50% 1/1/17 Aa 6,500,000 5,947,500
Series X, 6.625% 1/1/12 Aa 7,000,000 7,455,000
88,798,125
NORTH CAROLINA - 1.7%
North Carolina Muni. Pwr. Agcy. # 1
Catawba Elec. Rev.:
Rfdg.:
6% 11/1/09, (AMBAC Insured) Aaa 2,935,000 2,960,681
6% 11/1/10, (MBIA Insured) Aaa 2,750,000 2,760,313
5.25% 1/1/09 A 6,155,000 5,654,906
11,375,900
NORTH DAKOTA - 0.8%
Mercer County Poll. Cont. Rev. Rfdg.
(Antelope Valley Station) 7.20% 6/30/13,
(AMBAC Insured) (b) Aaa 5,000,000 5,381,250
OHIO - 1.1%
Bedford Hosp. Impt. Rev. Rfdg. (Bedford Commty.
Hosp.) Series 1990, 8.50% 5/15/09 - 1,020,000 1,074,825
Hamilton County Swr. Sys. Rev. Rfdg. & Impt.
(Metro. Swr. Dist.) Series A, 5.45%
12/1/09, (FGIC Insured) Aaa 2,250,000 2,154,375
Ohio Bldg. Auth. (Workers Comp.)
4.75% 4/1/14 A 3,000,000 2,493,750
Ohio Hsg. Fin. Agcy. Mtg. Rev. (Oakleaf-Toledo
Apts. Proj.) 10.25% 12/20/25, (GNMA Coll.) AAA 1,590,000 1,818,563
7,541,513
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
OKLAHOMA - 2.1%
Grand River Dam Auth. Rev. Rfdg.:
5.75% 6/1/06 A $ 5,150,000 $ 5,214,375
5.50% 6/1/10 A 9,450,000 9,048,375
14,262,750
OREGON - 0.8%
Port Morrow Poll. Ctr. Rev. (Pacific Northwest)
Series A, 8% 7/15/11 AA- 3,420,000 3,890,250
Portland Swr. Sys. Rev. Rfdg. Series A,
5.25% 3/1/10 A1 2,000,000 1,820,000
5,710,250
PENNSYLVANIA - 6.5%
Clarion County Hosp. Auth. Hosp. Rev.
(Clarion Hosp. Proj.) 8.50% 7/1/21 BBB- 2,500,000 2,721,875
Delaware County Auth. Rev. (First Mtg. Riddle
Village Proj.):
8% 6/1/99 - 3,875,000 3,947,656
7% 6/1/00 - 700,000 699,125
8.25% 6/1/22 - 1,660,000 1,662,075
9.25% 6/1/22 - 4,915,000 5,314,344
Delaware County Ind. Dev. Auth. Poll. Cont. Rev.
(Philadelphia Elec. Co. Proj.) 7.375% 4/1/21 Baa1 2,000,000 2,130,000
Montgomery County Ind. Dev. Auth. Rev. Rfdg.
Poll. Cont. (Philadelphia Elec. Co.) Series A,
7.60% 4/1/21 (e) Baa2 1,000,000 1,058,750
Pennsylvania Convention Ctr. Auth. Rev. Rfdg.
Series A:
6.70% 9/1/14 Ba 1,500,000 1,464,375
6.75% 9/1/19 Ba 2,250,000 2,190,938
Pennsylvania Intergovernmental Coop. Auth.
Spl.Tax Rev.:
Rfdg. Series A, 5% 6/15/15 Baa 3,000,000 2,550,000
(City of Philadelphia Funding Prog.)
5.75% 6/15/15 Baa 6,000,000 5,565,000
Philadelphia Gas Wks. Rev. Rfdg. Fourteenth
Series A:
5.50% 7/1/03 Baa1 2,000,000 1,970,000
5.50% 7/1/04 Baa1 1,000,000 976,250
Philadelphia Hosp. & Higher Ed. Facs. Auth.
Hosp. Rev. (Temple Univ. Hosp.) Series A,
6.50% 11/15/08 Baa1 2,000,000 1,992,500
Philadelphia Wtr. & Wastewtr. Rev. 7.57%
6/15/12, (FGIC Insured) INFL (g) Aaa 6,000,000 5,295,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Somerset County Hosp. Auth. Rev.
(Health Care 1st Mtg.) 8.50% 6/1/24 - $ 2,000,000 $ 1,995,000
Wilkins Area Ind. Dev. Auth. Rev. (1st Mtg.)
(Fairview Extended Care) Series A,
10.25% 1/1/21 (c) - 2,000,000 2,152,500
43,685,388
PUERTO RICO - 0.2%
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Hwy. Rev. Series W, 5.50% 7/1/15 Baa1 1,500,000 1,372,500
SOUTH DAKOTA - 0.3%
South Dakota Health & Edl. Facs. Auth. Rev.
Rfdg. (Prairie Lakes Healthcare) 7.25% 4/1/22 Baa 2,000,000 2,017,500
TENNESSEE - 0.3%
Metro Gov't. Nashville & Davidson County
Wtr. & Swr. Rev. Rfdg. 5.20% 1/1/13,
(FGIC Insured) Aaa 2,000,000 1,807,500
TEXAS - 4.8%
Alliance Arpt. Auth. Spl. Facs. Rev.
(American Airlines, Inc. Proj.) 7% 12/1/11 (e) Baa1 10,000,000 9,812,500
Austin Util. Sys. Rev. Rfdg. (Cap. Appreciation)
Series A:
0% 11/15/08, (MBIA Insured) Aaa 3,895,000 1,645,638
0% 5/15/09, (MBIA Insured) Aaa 3,060,000 1,235,475
East Texas Health Facs. Dev. Corp. Hosp. Rev.
(Palestine) 7.80% 8/15/18 - 3,000,000 2,880,000
El Paso Prop. Fin. Auth. Single Family Mtg.
Rev. Series A, 8.70% 12/1/18,
(GNMA Coll.) (e) Aaa 1,495,000 1,610,863
Harris County Cultural & Ed. Facs. Fin. Corp.
(Space Ctr. Houston Proj.) 9.25% 8/15/15 - 3,515,000 3,339,250
San Antonio Elec. & Gas Rev. Rfdg. Series B:
0% 2/1/08, (FGIC Insured) Aaa 2,000,000 887,500
0% 2/1/09, (FGIC Insured) Aaa 2,000,000 835,000
Texas Muni. Pwr. Agcy. Rev. Rfdg.
(Cap. Appreciation) 0% 9/1/13,
(MBIA Insured) (c) Aaa 27,000,000 8,201,250
Victoria Hsg. Fin. Corp. Single Family Mtg.
Rev. Rfdg. Series A, 8.50% 1/1/11 A 1,100,000 1,186,625
Winters Wtrwks. & Swr. Sys. Rev. Rfdg.
8.50% 8/1/17 (Pre-Refunded to 8/1/03
@ 100) (f) - 500,000 609,375
32,243,476
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
UTAH - 0.5%
Intermountain Pwr. Agcy. Pwr. Supply Rev. Rfdg.
7.834% 7/1/21 INFL (g) Aa $ 1,000,000 $ 811,250
Utah Hsg. Fin. Agcy.:
(Residential Mtg.) Series 1983 A, 0% 7/1/16 A+ 10,735,060 1,207,694
(Single Family Mtg.) Series G, 9.25% 7/1/19,
(FHA Guaranteed) (e) AA 1,310,000 1,395,150
3,414,094
VERMONT - 0.8%
Vermont Hsg. Fin. Agcy. Single Family Series 2:
7.30% 5/1/25 (e) A1 2,600,000 2,658,500
7.30% 5/1/25 A1 650,000 650,000
Vermont Ind. Dev. Auth. Ind. Dev. Rev.
(Radisson Hotel) Series B-1, 7.75%
11/15/15 - 2,350,000 2,376,438
5,684,938
VIRGINIA - 0.2%
Fairfax County Pub. Impt. Series A,
5.625% 6/1/11 Aaa 1,000,000 971,250
Virginia Hsg. Dev. Auth. Residential Mtg.
(Single Family Mtg.) Series 1983 B,
0% 9/1/14 Aa 2,430,000 315,900
1,287,150
WASHINGTON - 6.8%
Douglas County Pub. Util Dist. #1 Wells Hydroelec.
Rev. 8.75% 9/1/18 A 1,395,000 1,724,569
Washington Pub. Pwr. Supply Sys. Rev.:
Nuclear Proj. #1 Rfdg. Series A, 7.50% 7/1/15 Aa 11,295,000 12,382,144
Nuclear Proj. #2:
Rfdg. Series B, 7% 7/1/12 Aa 3,700,000 3,898,875
Rfdg. Series C, 0% 7/1/05, (MBIA Insured) Aaa 16,140,000 8,554,200
6.87% 7/1/12 INFL (g) Aa 14,000,000 11,235,000
Nuclear Proj. #3 6.87% 7/1/12 INFL (g) Aa 10,000,000 7,825,000
45,619,788
WYOMING - 0.5%
Wyoming Commty. Dev. Auth. Single Family Mtg.
7.15% 6/1/22 Aa 2,920,000 3,040,440
TOTAL MUNICIPAL BONDS
(Cost $685,669,180) 661,430,845
MUNICIPAL NOTES (D) - 2.1%
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
CALIFORNIA - 1.8%
California Poll. Cont. Fing. Auth. Resources
Recovery Rev.:
(Delano Proj.) Series 1990, 3.25%, LOC
Algemene Bank, VRDN (e) P-1 $ 800,000 $ 800,000
(Malaga Proj.) Series A, 3.30%, LOC
Bank of America Nat'l. Trust & Savings,
VRDN (e) - 1,500,000 1,500,000
Ventura County TRAN 4.50% 8/1/95 MIG 1 10,000,000 9,992,500
12,292,500
FLORIDA - 0.3%
Dade County Ind. Dev. Rev. (Montenay Dade
Ltd. Proj.) Series 1990-A, 3.35%,
LOC Banque Paribas, VRDN (e) A-1 1,600,000 1,600,000
MINNESOTA - 0.0%
Duluth Tax Increment Rev. (Lake Superior
Paper Co.) Series 1985, 3.15%, LOC Nat'l.
Australia Bank, VRDN VMIG 1 300,000 300,000
TOTAL MUNICIPAL NOTES
(Cost $14,265,830) 14,192,500
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $699,935,010) $ 675,623,345
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SOLD
75 U.S. Treasury Bond Contracts Sept. 1994 $ 7,778,906 $ (62,869)
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 1.2%
SECURITY TYPE ABBREVIATIONS
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(h) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(i) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(j) A portion of the Security was pledged to cover margin requirements for
futures contracts and delayed delivery purchases. At the period end, the
value of securities pledged amounted to $23,046,163.
(k) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(l) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(m) Security collateralized by an amount sufficient to pay interest and
principal.
(n) Coupon is inversely indexed to a floating interest rate. The price will
be more volatile than the price of a comparable fixed rate security. The
rate shown is the rate at period end.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 63.4% AAA, AA, A 64.7%
Baa 18.2% BBB 14.4%
Ba 2.5% BB 4.3%
B 0.2% B 0.2%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 11.4%. FMR
has determined that unrated debt securities that are lower quality account
for 10.2% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Electric Revenue 21.3%
Health Care 13.2
Lease Revenue 11.6
Transportation 10.9
Others (individually less than 10%) 43.0
TOTAL 100.0%
INCOME TAX INFORMATION
At August 31, 1994, the aggregate cost of investment securities for income
tax purposes was $699,935,010. Net unrealized depreciation aggregated
$24,311,665, of which $9,834,691 related to appreciated investment
securities and $34,146,356 related to depreciated investment securities.
The fund hereby designates $4,806,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 31, 1994

ASSETS

Investment in securities, at value (cost $699,935,010) - $ 675,623,345
See accompanying schedule

Cash 154,160

Receivable for investments sold 8,117,553

Interest receivable 9,511,961

Redemption fees receivable 92

TOTAL ASSETS 693,407,111

LIABILITIES

Payable for investments purchased $ 2,445,072
Regular delivery

Delayed delivery 9,060,400

Payable for fund shares redeemed 560,918

Dividends payable 833,678

Accrued management fee 312,497

Payable for daily variation on futures contracts 18,750

TOTAL LIABILITIES 13,231,315

NET ASSETS $ 680,175,796

Net Assets consist of:

Paid in capital $ 696,907,002

Accumulated undistributed net realized gain 7,643,328
(loss) on investments

Net unrealized appreciation (depreciation) on (24,374,534)
investments

NET ASSETS, for 67,540,946 shares outstanding $ 680,175,796

NET ASSET VALUE, offering price and redemption price per $10.07
share ($680,175,796 (divided by) shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1994

INTEREST INCOME $ 50,018,463

EXPENSES

Management fee $ 4,332,192

Non-interested trustees' compensation 19,027

TOTAL EXPENSES 4,351,219

NET INTEREST INCOME 45,667,244

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 18,268,098

Futures contracts 1,267,175 19,535,273

Change in net unrealized appreciation (depreciation) on:

Investment securities (76,997,629)

Futures contracts (61,487) (77,059,116)

NET GAIN (LOSS) (57,523,843)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (11,856,599)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
AUGUST 31, 1994 AUGUST 31, 1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 45,667,244 $ 52,958,243
Net interest income

Net realized gain (loss) 19,535,273 36,519,652

Change in net unrealized appreciation (depreciation) (77,059,116) 20,925,770

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (11,856,599) 110,403,665
FROM OPERATIONS

Distributions to shareholders: (45,674,031) (52,958,243)
From net interest income

From net realized gain (43,781,431) (5,730,111)

TOTAL DISTRIBUTIONS (89,455,462) (58,688,354)

Share transactions 144,360,608 268,787,536
Net proceeds from sales of shares

Reinvestment of distributions 70,984,626 47,323,126

Cost of shares redeemed (346,734,933) (325,984,136)

Redemption fees 167,057 204,197

Net increase (decrease) in net assets resulting from (131,222,642) (9,669,277)
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS (232,534,703) 42,046,034

NET ASSETS

Beginning of period 912,710,499 870,664,465

End of period $ 680,175,796 $ 912,710,499

OTHER INFORMATION
Shares

Sold 13,609,404 24,803,405

Issued in reinvestment of distributions 6,585,102 4,358,356

Redeemed (32,895,616) (30,219,037)

Net increase (decrease) (12,701,110) (1,057,276)

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED AUGUST 31, JUNE 4, 1990
(COMMENCEMEN
T OF OPERATIONS)
TO

1994 1993 1992 1991 AUGUST 31, 1990

SELECTED PER-SHARE DATA

Net asset value, beginning $ 11.370 $ 10.710 $ 10.360 $ 9.890 $ 10.000
of period

Income from Investment .611 .663 .704 .739 .187
Operations
Net interest income

Net realized and (.752) .727 .387 .463 (.120)
unrealized gain (loss)

Total from investment (.141) 1.390 1.091 1.202 .067
operations

Less Distributions (.611) (.663) (.704) (.739) (.187)
From net interest income

From net realized gain on (.550) (.070) (.040) - -
investments

Total distributions (1.161) (.733) (.744) (.739) (.187)

Redemption fees added to .002 .003 .003 .007 .010
paid in capital

Net asset value, end of $ 10.070 $ 11.370 $ 10.710 $ 10.360 $ 9.890
period

TOTAL RETURN B,C (1.42) 13.55% 10.93% 12.65% .76%
%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 680 $ 913 $ 871 $ 551 $ 93
(in millions)

Ratio of expenses to .55% .47% .36% .23% -
average net assets

Ratio of expenses to .55% .55% .55% .55% .55%A
average net assets before
expense reductions

Ratio of net interest income 5.76% 6.09% 6.68% 7.24% 7.91%A
to average net assets

Portfolio turnover rate 48% 50% 62% 78% 116%A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1994

5. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Municipal Income Portfolio (the fund) is a fund of Fidelity Union
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 Massachusetts business trust. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which quotations are not readily
available through the pricing service are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
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.
Distributions to shareholders from realized capital gains on investments,
if any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures and options transactions, market discount and losses deferred due
to wash sales. The fund also utilized earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net interest income per share. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
REDEMPTION FEES. Shares held in the fund less than 180 days are subject to
a redemption fee equal to .50% of the proceeds of the redeemed shares. The
fee, which is retained by the fund, is accounted for as an addition to paid
in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective September
1, 1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of August 31, 1993 have been reclassified to
reflect an increase in paid in capital of $737,425, and a decrease in
accumulated net realized gain on investments of $737,425.
6. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The fund
identifies securities as segregated in its custodial records with a value
at least equal to the amount of the purchase commitment.
FUTURES CONTRACTS AND OPTIONS. The fund may invest in futures and options
contracts, and may also write options. These investments involve, to
varying degrees, elements of market risk and risks in excess of the amount
recognized in the Statement of Assets and Liabilities. The face or contract
amounts reflect the extent of the involvement the fund has in the
particular classes of instruments. Risks may be caused by an imperfect
correlation between movements in the price of the instruments and the price
of the underlying securities and interest rates. Risks also may arise if
there is an illiquid secondary market for the instruments, or due to the
inability of counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
7. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $364,816,667 and $532,562,413, respectively.
3. PURCHASES AND SALES OF
INVESTMENTS - CONTINUED
The market value of futures contracts opened and closed during the period
amounted to $1,018,116,217 and $1,012,570,507, respectively.
8. 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 .55% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $20,570.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Union Street Trust and the Shareholders of
Spartan Municipal Income Portfolio:
We have audited the accompanying statement of assets and liabilities of
Fidelity Union Street Trust: Spartan Municipal Income Portfolio, including
the schedule of portfolio investments, as of August 31, 1994, and the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended
and the financial highlights for each of the four years in the period then
ended and for the period June 4, 1990 (commencement of operations) to
August 31, 1990. These financial statements and financial highlights are
the responsibility of the fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Union Street Trust: Spartan Municipal Income Portfolio as of
August 31, 1994, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the four years in the
period then ended and for the period June 4, 1990 (commencement of
operations) to August 31, 1990, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
September 29, 1994
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Norman Lind, Vice President
Gary L. Swayze, Vice President
Thomas J. Steffanci, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
United Missouri Bank, N.A.
Kansas City, MO
(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
FIDELITY TAX-FREE BOND FUNDS
Aggressive Tax-Free
California Tax-Free High Yield
California Tax-Free Insured
High Yield Tax-Free
Insured Tax-Free
Limited Term Municipals
Massachusetts Tax-Free High Yield
Michigan Tax-Free High Yield
Minnesota Tax-Free
Municipal Bond
New York Tax-Free High Yield
New York Tax-Free Insured
Ohio Tax-Free High Yield
Spartan Aggressive Municipal
(registered trademark)
Spartan California Municipal High Yield
Spartan Connecticut Municipal High Yield
Spartan Florida Municipal Income
Spartan Intermediate Municipal
Spartan Maryland Municipal Income
Spartan Municipal Income
Spartan New Jersey Municipal High Yield
Spartan New York Municipal High Yield
Spartan Pennsylvania Municipal High Yield
Spartan Short-Intermediate Municipal
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

SPARTAN

(registered trademark)
(registered trademark)
MARYLAND
MUNICIPAL INCOME
FUND
ANNUAL REPORT
AUGUST 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 15 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 19 Notes to the financial statements.

REPORT OF INDEPENDENT
ACCOUNTANTS 21 The auditor's opinion.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
The year so far has been an unsettling time for many investors. For
example, after three years of a nearly perfect environment for stock market
investing, stock prices generally fell from February through June. Bond
prices have fallen as well. Investors disagree about whether these declines
represent only a short-term correction or signal the beginning of a longer
bear market. One can collect statistics to support either opinion, but of
course, nobody knows for sure what will happen in the months ahead.
We do know, however, that market declines are a normal part of investing.
We have historically seen corrections of 10% or more every two years.
That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful investors in
every market cycle.
First, take a long-term approach when investing. If you can afford to leave
your money invested through the inevitable ups and downs of financial
markets, you will greatly reduce your vulnerability to any single decline.
Over time, for example, stock prices have gone up - and have significantly
outperformed other types of investments and stayed ahead of inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up a regular investment plan using the Fidelity Automatic Account
Builder.SM
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns and
dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan Maryland Municipal Income -1.48% 3.93%

Lehman Brothers Municipal Bond Index 0.14% n/a

Average Maryland Tax-Exempt
Municipal Bond -1.17% 3.67%

Consumer Price Index (CPI) 2.90% 3.47%

CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, one year or since the fund started on April 22, 1993. For
example, if you had invested $1,000 in a fund that had a 5% return over the
past year, you would end up with $1,050. You can compare these figures to
the performance of the Lehman Brothers Municipal Bond Index - a broad gauge
of the municipal bond market. To measure how the fund stacked up against
its peers, you can look at the average Maryland tax-exempt municipal bond
fund, which reflects the performance of 23 Maryland tax-exempt municipal
bond funds tracked by Lipper Analytical Services. Both benchmarks include
reinvested dividends and capital gains, if any. Comparing the fund's
performance to the CPI helps show how your fund did compared to inflation.
(The periods covered by CPI numbers are the closest available match to
those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan Maryland Municipal Income -1.48% 2.87%

Lehman Brothers Municipal Bond Index 0.14% n/a

Average Maryland Tax-Exempt
Municipal Bond -1.17% 2.65%

Consumer Price Index 2.90% 2.58%

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.
$10,000 OVER LIFE OF FUND
Spart MD Muni Inc.Fund (429)Municipal Bond
04/30/93 10000.00 10000.00
05/31/93 10085.91 10056.00
06/30/93 10290.79 10223.94
07/31/93 10265.31 10237.23
08/31/93 10557.39 10450.16
09/30/93 10704.98 10569.29
10/31/93 10689.74 10589.37
11/30/93 10529.06 10496.19
12/31/93 10803.25 10717.66
01/31/94 10954.64 10839.84
02/28/94 10622.39 10559.09
03/31/94 10073.67 10129.33
04/30/94 10162.94 10215.43
05/31/94 10243.70 10304.31
06/30/94 10206.48 10244.54
07/31/94 10384.84 10432.02
08/31/94 10403.21 10468.53
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Maryland Municipal Income Portfolio on April 30, 1993, shortly after the
fund started. As the chart shows, by August 31, 1994, the value of your
investment would have grown to $10,403 - a 4.03% increase on your initial
investment. This assumes you still own the fund on August 31, 1994 and
therefore does not include the effect of the $5 account closeout fee. For
comparison, look at how the Lehman Brothers Municipal Bond Index did over
the same period. With dividends reinvested, the same $10,000 would have
grown to $10,469 - a 4.69% increase.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, move in the
opposite direction of interest
rates. In turn, the share price,
return, and yield of a fund
that invests in bonds will vary.
That means if you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
APRIL 22, 1993
YEAR (COMMENCEMENT
ENDED OF OPERATIONS) TO
AUGUST 31, AUGUST 31,

1994 1993

Dividend returns 5.22% 1.99%

Capital appreciation
returns -6.70% 3.48%

Total returns -1.48% 5.47%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED AUGUST 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.71(cents) 27.67(cents) 54.31(cents)

Annualized dividend rate 5.77% 5.68% 5.43%

30-day annualized yield 6.02% - -

30-day annualized tax-equivalent yield 10.34% - -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.62 over
the past month, $9.66 over the past six months and $10.01 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 41.76% combined effective 1994 federal and state income tax bracket.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Rising interest rates and inflation
concerns sent U.S. bond prices
sharply lower during the first eight
months of 1994. Yields rose -
and prices fell - on taxable and
tax-free bonds alike. The
heaviest investor selling occurred
from February through May. That
coincided with the Federal
Reserve Board's raising of
short-term interest rates. The Fed
was hoping to head off future
inflation growth that might be
triggered by the improving U.S.
economy. However, bond
investors reacted strongly to any
threat of inflation because
inflation deteriorates the value of
their fixed-rate interest payments.
Two influences roughly offset
each other in the municipal bond
market. First, investor demand
fell due to inflation worries, which
dampened prices. However, the
supply of tax-free bonds fell
sharply as well. The ability of
states, cities and public agencies
to refinance outstanding debt at
lower, more attractive rates was
limited amid a rising interest rate
environment. For the 12 months
ended August 31, 1994, the
Lehman Brothers Municipal Bond
Index - a broad measure of the
tax-free market - had a total
return of 0.14%. By comparison,
the Lehman Brothers Aggregate
Bond Index - a proxy of
investment-grade taxable bonds
- - returned -1.51% during the
same period. Most overseas
bond markets took their cue from
the sell-off in the U.S. The
Salomon Brothers World
Government Bond Index -
which includes U.S. issues -
rose 2.28% for the 12 months.
The J.P. Morgan Emerging
Markets Bond Index returned
1.42%.
An interview with Steven Harvey,
Portfolio Manager of Spartan
Maryland Municipal Income Fund
Q. STEVE, HOW HAS THE FUND PERFORMED?
A. For the six months ended August 31, 1994, the fund had a total return of
- -2.08%. That slightly outpaced the average Maryland municipal bond fund's
return of -2.21% for the same period, according to Lipper Analytical
Services. However, for the year ended August 31, 1994, the fund returned
- -1.48%, which slightly lagged the average fund's return of -1.17%, again
according to Lipper.
Q. DID THE HIGHER INTEREST RATES WE'VE SEEN OVER THE PAST SIX MONTHS AFFECT
THE WAY YOU MANAGED THE FUND?
A. Not significantly. Throughout the period, I continued to keep the fund's
duration relatively long. Duration is a measure of how sensitive the fund's
share price is to changes in interest rates; the longer the fund's
duration, the more volatile its share price when interest rates rise or
fall. Although I could have shortened the fund's duration when interest
rates were rising, I was hesitant to do so for two reasons. First, my
long-term outlook is that economic growth will moderate and inflation and
long-term interest rates will probably stay relatively low, on a historical
basis. In that type of environment, having a longer duration could benefit
the fund. Second, the supply of new Maryland bonds issued so far in 1994 is
roughly 40% less than the amount issued in 1993. As a result, I was
concerned that the type of bonds I wanted to own over the long term
wouldn't be available later on. However to generally help shorten the
fund's duration, I've used bond futures contracts.
Q. THERE'S BEEN A LOT OF TALK RECENTLY ABOUT DERIVATIVES. AREN'T FUTURES
ONE TYPE OF DERIVATIVE AND DO YOU USE
OTHERS?
A. Yes, a futures contract is one type of financial derivative - meaning
its market value is derived from a security or market index. We've used
futures and options in our municipal bond funds for years. More recently,
I've used what's known as an inverse floater - whose yield rises as
short-term rates fall, and vice versa. Inverse floaters act like
longer-term bonds, effectively increasing a fund's duration, which is good
in a falling interest rate environment but can hurt the fund when interest
rates rise. During the past six months, inverse floaters made up less than
5% of the fund's total investments. By using these various derivatives, I
achieve increased flexibility in managing the fund's overall sensitivity to
changes in interest rates, and hopefully, can achieve higher levels of
income.
Q. WHAT FACTOR HELPED KEEP THE FUND'S PERFORMANCE IN LINE WITH THE AVERAGE
MARYLAND FUND?
A. An above-average income helped boost the fund's performance. One way
I've added income to the fund is by building a 5% stake in pollution
control bonds backed by Bethlehem Steel, which paid about 7.25% in yield
compared to an insured Maryland bond which paid about 6.25% in yield at the
end of August. If the economic recovery continues, these bonds could also
enjoy some price appreciation. Housing bonds - which made up 11.3% of the
fund's total investments at the end of August - also pay higher yields than
bonds with similar ratings. That's because housing bonds carry the risk
that they'll be prepaid. But through careful research, we've identified
housing bonds that should be relatively insulated from the threat of
prepayment.
Q. IN TERMS OF SECTOR CONCENTRATIONS, WHAT OTHER CHOICES HAVE YOU MADE?
A. Health care bonds - at 24.7% of the fund's investments as of August 31,
1994 - made up the fund's largest sector concentration. In this sector,
I've targeted health care organizations that I think are well managed, and
could not only survive, but possibly benefit from health care reform.
Transportation bonds - at 20.4% of investments - make up the fund's third
largest concentration. I bought them at a time when their prices were
relatively cheap because of an abundance of supply. Also, many of these
bonds are non-callable, which means they can't be prematurely redeemed by
their issuers. That feature makes them attractive because non-callable
bonds tend to do relatively well in both up and down markets.
Q. WHAT'S AHEAD FOR THE MUNICIPAL MARKET?
A. I think that for the short term, the market could remain volatile. But
over the long term, my outlook is more optimistic. It appears that higher
interest rates are actually slowing things down, as evidenced by a drop in
auto and new home sales. A slow-growth, low inflation environment is
generally positive for bonds.

FUND FACTS
GOAL: to provide high current
income exempt from federal,
Maryland state and county
income taxes by investing
primarily in long-term,
investment grade Maryland
municipal bonds
START DATE: April 22, 1993
SIZE: as of August 31, 1994,
more than $41 million
MANAGER: Steven Harvey,
since April 1993; manager,
Fidelity Minnesota Tax-Free
Portfolio and Spartan
Pennsylvania Municipal
Portfolio, since October, 1993;
Fidelity Ohio Tax-Free
Portfolio, since July 1993;
joined Fidelity
in 1986
(checkmark)

STEVEN HARVEY'S OUTLOOK FOR
THE MUNICIPAL MARKET:
"There could be some
additional short-term volatility
in the municipal market over
the next several months. But
eventually, the municipal
market should start benefiting
from a reduced supply of
bonds available. Last year
there was a record supply of
municipal bonds issued, the
result of many municipalities
refinancing more expensive,
older debt at lower rates.
Most of the issuers that could
refinance already had done
so by the start of 1994; and
higher interest rates
effectively eliminated the
incentive to finance any
remaining issues. In
Maryland, the supply of bonds
has dropped about 40% from
last year's level. A lower
supply and a constant
demand for municipals could
help drive prices higher."
(solid bullet) Although the fund invests
primarily in long-term,
investment-grade (Baa or
above) Maryland municipal
bonds, up to one-third of its
assets may be invested in
non-investment grade bonds.
At the end of August, less
than 6% of the fund's
investments was rated
equivalent to those
Ba or below.
(solid bullet) Because of recent federal,
state and county tax hikes,
some Maryland residents
could be subject to a tax-rate
as high as 45.04%.
INVESTMENT CHANGES

TOP FIVE SECTORS AS OF AUGUST 31, 1994
% OF FUND'S INVESTMENT % OF FUND'S INVESTMENT
S S
IN THESE SECTORS
6 MONTHS AGO

Health Care 24.7 22.9

General Obligation 22.3 20.9

Transportation 20.4 21.4

Housing 11.3 12.1

Industrial Development 5.0 4.0

AVERAGE YEARS TO MATURITY AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 18.3 17.6

AVERAGE YEARS TO MATURITY SHOWS THE AVERAGE TIME UNTIL THE PRINCIPAL OF THE
BONDS IN THE FUND IS EXPECTED TO BE REPAID, WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF AUGUST 31, 1994
6 MONTHS AGO

Years 9.2 8.5

Aaa 32.8%
Aa, A 30.4%
Baa 26.7%
Ba or B -
Non-rated 5.5%
Short-term investments 4.6%
Row: 1, Col: 1, Value: 32.8
Row: 1, Col: 2, Value: 30.4
Row: 1, Col: 3, Value: 26.7
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 5.5
Row: 1, Col: 6, Value: 4.6
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED
DEBT SECURITIES THAT ARE EQUIVALENT TO BA AND BELOW AT AUGUST 31, 1994
ACCOUNT FOR 5.5% OF THE FUND'S INVESTMENTS
INVESTMENTS AUGUST 31, 1994

Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 95.4%
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
MARYLAND - 74.7%
Anne Arundel County Consolidated Gen.
Impt. Ltd. Tax 5.25% 7/15/11 Aa $ 500,000 $ 458,125
Anne Arundel County Consolidated
Wtr. & Swr. Rfdg. 5% 4/15/07 Aa 500,000 468,750
Baltimore Cons. Pub. Impt.:
Rfdg. Series D:
6% 10/15/04 (AMBAC Insured) Aaa 1,000,000 1,042,500
5% 10/15/08 (AMBAC Insured) Aaa 750,000 690,000
5.40% 10/15/12 (AMBAC Insured) Aaa 700,000 654,500
Series B, 7.05% 10/15/07
(MBIA Insured) Aaa 1,000,000 1,118,750
Baltimore County Metro. Dist. Unltd. Tax
62nd Issue 6% 7/1/99 Aaa 125,000 131,563
Baltimore County Mtg. Rev. Rfdg.
(Kingswood IV) Series A, 5.75% 9/1/20
(FHA Guaranteed) AAA 1,000,000 921,250
Baltimore County Poll. Cont. Rev. Rfdg.
(Bethlehem Steel Proj.)
Series A, 7.55% 6/1/17 - 2,000,000 2,050,000
Baltimore Wastewtr. 7.98% 7/1/20,
(MBIA Insured) INFL (d) Aaa 1,000,000 870,000
Calvert County Rfdg.
(Consolidated Pub. Impt. Proj.):
Unltd. Tax 4.50% 7/15/03 Aa 500,000 461,875
4.875% 7/15/10 Aa 500,000 443,125
Howard County Mtg. Rev. Rfdg.
(Beechs Farm Apts. FHA) Series A, 6.5%
7/1/24, (MBIA Insured) Aaa 500,000 507,500
Maryland Commty. Dev. Administration Dept.
Hsg. & Commty. Dev. (Single Family Prog.)
4th Series, 6.45% 4/1/14 Aa 1,000,000 1,013,750
Maryland Dept. Trans. Consolidated Trans.:
Rfdg. Series 1993, 4.85753%
12/15/05 INFL (d) Aa 1,000,000 767,500
Series 1991, 6.25% 9/1/03 Aa 100,000 105,000
Maryland Health & Higher Ed. Facs. Auth. Rev.:
Rfdg.
(Doctors Commty. Hosp.)
5.75% 7/1/13 Baa 500,000 431,875
5.50% 7/1/24 Baa 1,945,000 1,548,706
(Howard County Gen. Hosp.)
5.50% 7/1/13 Baa1 2,000,000 1,770,000
(Johns Hopkins Health Sys.)
Series 1988, 7.50% 7/1/20 Aa1 1,000,000 1,090,000
(Maryland Univ. Med. Sys.)
5% 7/1/20, (FGIC Insured) Aaa 1,000,000 840,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
MARYLAND - CONTINUED
Maryland Health & Higher Ed. Facs. Auth. Rev. - continued
Rfdg. - continued
(Suburban Hosp.) 6% 7/1/21
(Pre-Refunded to 7/1/02 @ 102) (e) A1 $ 200,000 $ 210,750
(Frederick Mem. Hosp.) 5.20% 7/1/08,
(FGIC Insured) Aaa 1,500,000 1,415,625
(Good Samaritan Hosp.), 5.75%
7/1/13 A 385,000 364,306
Maryland Trans. Auth. Trans. Facs. Proj. Rev.
0% 7/1/11, (FGIC Insured) Aaa 500,000 181,875
Montgomery County Poll. Cont. Rev. Rfdg.
(Potomac Electric Pwr. Co.)
5.375% 2/15/24 A1 1,500,000 1,318,125
Montgomery County Rev. Auth. Lease Rev.
Rfdg. (Olney Indoor Swim Center)
Project C, 5. 25% 10/1/12 AA- 1,000,000 905,000
Montgomery County Rev. Hsg. Opportunity
Comm. (Single Family Mtg.)
Series A, 6.6% 7/1/14 Aa 1,000,000 1,008,750
Northeast Waste Disp. Auth. Solid Waste Rev.
(Montgomery County Resource
Recovery Proj.):
Series A, 5.90% 7/1/05 (b) A 600,000 591,000
Series A, 6% 7/1/07 (b) A 500,000 486,875
Prince George's County Hosp. Rev.
(Greater Southeast Health Care Sys.):
6.375% 1/1/13 Baa 470,000 442,388
6.375% 1/1/23 Baa 2,660,000 2,443,875
Prince George's County Hsg. Auth.
(Single Family Rev.) Series A, 6.50%
12/1/15 (b) AAA 500,000 500,625
Prince George's County Rfdg. Consolidated
Pub. Ipmt. Ltd. Tax 5.25% 10/1/11 A 1,000,000 921,250
Rockville Mtg. Rev. Rfdg.
(Summit Apts.) Project A 5.625%
7/1/19 (FHA & MBIA Insured) Aaa 750,000 690,000
Univ. of Maryland Sys. Auxiliary
Facs. & Tuition Rev. 5% 10/1/09 Aa 1,000,000 906,250
Washington Suburban San. Dist. Rfdg. Swr.
Disp. 4.90% 12/1/05 Aa1 355,000 330,150
Washington Suburban San. Dist. Wtr.
Supply Unltd. Tax Rfdg. 5.10%
12/1/07 Aa1 250,000 231,563
Worcester County Sanitation Dist. Rfdg.
Series J, 6% 8/15/02 Aa 400,000 418,500
30,751,676
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (A) PRINCIPAL VALUE
(UNAUDITED) AMOUNT (NOTE 1)
PUERTO RICO - 8.6%
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Rev. Series W, 5.50% 7/1/13 Baa1 $ 2,000,000 $ 1,840,000
Puerto Rico Pub. Ed. & Health Facs. Rfdg.
Series M, 5.75% 7/1/15 Baa1 1,000,000 938,750
Puerto Rico Ports Auth. Rev.
(Spl. Facs. American Airlines)
Series A, 6.30% 6/1/23 (b) Baa3 805,000 759,719
3,538,469
U.S. VIRGIN ISLANDS - 0.5%
Virgin Islands Pub. Fin. Auth. Rev. Rfdg.
Series A, 7.25% 10/1/18
(Escrowed to Maturity) (e) - 200,000 209,000
GUAM - 2.0%
Guam Arpt. Auth. Gen. Rev. Series B:
6.40% 10/1/05 (b) BBB 500,000 510,000
6.70% 10/1/23 BBB 300,000 300,374
810,374
MULTIPLE STATE - 9.6%
Washington Metropolitan Area Trans. Auth.
Gross Rev. Rfdg.:
3.90% 7/1/97 (FGIC Insured) Aaa 1,380,000 1,357,575
6% 7/1/10 (FGIC Insured) (f)(g) Aaa 2,570,000 2,589,275
3,946,850
TOTAL MUNICIPAL BONDS
(Cost $41,676,007) 39,256,369
MUNICIPAL NOTES (A) - 4.6%

MARYLAND - 4.6%
Maryland Gen. Oblig. Participating VRDN,
5.10% Liquidity Facility Merrill
Lynch & Co. (f) VMIG 1 1,000,000 1,000,000
Maryland Health & Higher Edl. Facs. Rev.
(Pooled Loan Prog.) Series A, 3.25%
LOC Dai-Ichi Kangyo Bank Ltd., VRDN VMIG 1 900,000 900,000
TOTAL MUNICIPAL NOTES
(Cost $1,900,000) 1,900,000
TOTAL INVESTMENTS - 100%
(Cost $43,576,007) $ 41,156,369
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SELL
20 30-Year Bond Contracts Sept. 1994 $ 2,074,375 $ (20,807)
THE VALUE OF FUTURES CONTRACTS PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 5%

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
9. The coupon rate shown on floating or adjustable rate securities
represents the rate
at period end.
10. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
11. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
12. Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
13. Security collateralized by an amount sufficient to pay interest and
principal.
14. Provides evidence of ownership in one or more underlying municipal
bonds.
15. A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $2,589,275.
INCOME TAX INFORMATION
At August 31, 1994, the aggregate cost of investment securities for income
tax purposes was $43,576,007. Net unrealized depreciation aggregated
$2,419,638 of which $101,430 related to appreciated investment securities
and $2,521,068 related to depreciated investment securities.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investments for the period ended is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 57.6% AAA, AA, A 61.4%
Baa 24.7% BBB 11.1%
Ba 0.0% BB 1.9%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 5.5%. FMR has
determined that unrated debt securities that are lower quality account for
5.5% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investments, is as follows:
Health Care 24.7%
General Obligation 22.3
Transportation 20.4
Housing 11.3
Others
(individually less than 10%) 21.3
TOTAL 100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

AUGUST 31, 1994

ASSETS

Investment in securities, at value (cost $43,576,007) - $ 41,156,369

See accompanying schedule

Interest receivable 581,655

Receivable from investment adviser for expense reductions 15,833

TOTAL ASSETS 41,753,857

LIABILITIES

Payable to custodian bank $ 45,342

Payable for fund shares redeemed 176,490

Dividends payable 43,694

Accrued management fee 19,352

Payable for daily variation on futures contracts 5,000

TOTAL LIABILITIES 289,878

NET ASSETS $ 41,463,979

Net Assets consist of:

Paid in capital $ 43,967,281

Accumulated undistributed net realized gain (loss) on (62,857)

investments

Net unrealized appreciation (depreciation) on investments (2,440,445)

NET ASSETS, for 4,301,673 shares outstanding $ 41,463,979

NET ASSET VALUE, offering price and redemption price per $9.64

share ($41,463,979 (divided by) shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1994

INTEREST INCOME $ 2,146,881

EXPENSES

Management fee $ 215,295

Non-interested trustees' compensation 119

Total expenses before reductions 215,414

Expense reductions (205,005) 10,409

NET INTEREST INCOME 2,136,472

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities (142,713)

Futures contracts 154,526 11,813

Change in net unrealized appreciation (depreciation) on:

Investment securities (3,015,893)

Futures contracts (20,807) (3,036,700)

NET GAIN (LOSS) (3,024,887)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ (888,415)
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR APRIL 22, 1993
ENDED (COMMENCEMENT
AUGUST 31, OF OPERATIONS)
1994 AUGUST 31, 1993

INCREASE (DECREASE) IN NET ASSETS

Operations $ 2,136,472 $ 264,915
Net interest income

Net realized gain (loss) 11,813 (437)

Change in net unrealized appreciation (depreciation) (3,036,700) 596,255

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (888,415) 860,733
FROM OPERATIONS

Distributions to shareholders: (2,136,472) (264,915)
From net interest income

From net realized gain (11,813) -

In excess of net realized gain (62,420) -

TOTAL DISTRIBUTIONS (2,210,705) (264,915)

Share transactions 27,396,237 30,709,782
Net proceeds from sales of shares

Reinvestment of distributions 1,711,392 229,468

Cost of shares redeemed (13,513,074) (2,596,708)

Redemption fees 27,464 2,720

Net increase (decrease) in net assets resulting from 15,622,019 28,345,262
share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS 12,522,899 28,941,080

NET ASSETS

Beginning of period 28,941,080 -

End of period $ 41,463,979 $ 28,941,080

OTHER INFORMATION
Shares

Sold 2,692,013 3,033,327

Issued in reinvestment of distributions 172,096 22,484

Redeemed (1,360,016) (258,231)

Net increase (decrease) 1,504,093 2,797,580

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR APRIL 22, 1993
ENDED (COMMENCEM
AUGUST 31, ENT
OF OPERATIONS)
TO
AUGUST 31,

1994 1993

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.350 $ 10.000

Income from Investment Operations .543 .194
Net interest income

Net realized and unrealized gain (loss) (.697) .348

Total from investment operations (.154) .542

Less Distributions (.543) (.194)
From net interest income

In excess of net realized gain on investments (.020) -

Total distributions (.563) (.194)

Redemption fees added to paid in capital .007 .002

Net asset value, end of period $ 9.640 $ 10.350

TOTAL RETURN B -1.46% 5.49%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 41,464 $ 28,941

Ratio of expenses to average net assets C .03% -

Ratio of expenses to average net assets before expense .55% .55%
reductions C A

Ratio of net interest income to average net assets 5.46% 5.46%
A

Portfolio turnover rate 64% 29%
A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1994

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Maryland Municipal Income Fund (the fund) is a fund of Fidelity
Union 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 Massachusetts business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days are valued either at amortized cost or original
cost plus accrued interest, both of which approximate current value.
Securities for which quotations are not readily available through the
pricing service are valued at their fair value as determined in good faith
under consistently applied procedures under the general supervision of the
Board of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year.
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
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. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures and options transactions.
REDEMPTION FEES. Shares held in the fund less than 180 days are subject to
a redemption fee equal to .50% of the proceeds of the redeemed shares. The
fee, which is retained by the fund, is accounted for as an addition to paid
in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FUTURES CONTRACTS AND OPTIONS. The fund may invest in futures and options
contracts, and may also write options. These investments involve, to
varying degrees, elements of market risk and risks in excess of the amount
recognized in the Statement of Assets and Liabilities. The face or contract
amounts, as reflected in
2. OPERATING POLICIES -
CONTINUED
FUTURES CONTRACTS AND OPTIONS -
CONTINUED
the schedule of investments under the caption "Futures Contracts," reflect
the extent of the involvement the fund has in the particular classes of
instruments. Risks may be caused by an imperfect correlation between
movements in the price of the instruments and the price of the underlying
securities and interest rates. Risks also may arise if there is an illiquid
secondary market for the instruments, or due to the inability of
counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $38,994,852 and $23,310,530, respectively.
4. 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 .55% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $1,105.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses). During the period, this expense limitation ranged from 0% to
.10% of average net assets and the reimbursement reduced the expenses by
$205,005.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Union Street Trust and the Shareholders of
Spartan Maryland Municipal Income Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Union Street Trust: Spartan Maryland Municipal Income Fund,
including the schedule of portfolio investments as of August 31, 1994, the
related statement of operations for the year then ended, and the statement
of changes in net assets and the financial highlights for the year then
ended and for the period April 22, 1993 (commencement of operations) to
August 31, 1993. These financial statements and financial highlights are
the responsibility of the fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1994, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Union Street Trust: Spartan Maryland Municipal Income Fund as
of August 31, 1994, the results of its operations for the year then ended,
and the changes in its net assets and the financial highlights for the year
ended August 31, 1994, and the period April 22, 1993 (commencement of
operations) to August 31, 1993, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, MA
September 29, 1994
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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
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Thomas J. Steffanci, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
FIDELITY TAX-FREE BOND FUNDS
Aggressive Tax-Free
California Tax-Free High Yield
California Tax-Free Insured
High Yield Tax-Free
Insured Tax-Free
Limited Term Municipals
Massachusetts Tax-Free High Yield
Michigan Tax-Free High Yield
Minnesota Tax-Free
Municipal Bond
New York Tax-Free High Yield
New York Tax-Free Insured
Ohio Tax-Free High Yield
Spartan Aggressive Tax-Free
Spartan California Intermediate Municipal
Spartan California Municipal High Yield
Spartan Connecticut Municipal High Yield
Spartan Florida Municipal Income
Spartan Intermediate Municipal
Spartan Maryland Municipal Income
Spartan Municipal Income
Spartan New Jersey Municipal High Yield
Spartan New York Intermediate Municipal
Spartan New York Municipal High Yield
Spartan Pennsylvania Municipal High Yield
Spartan Short-Intermediate Municipal
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE