EXHIBIT 24(A)3
SPARTAN(Registered trademark)
(Registered trademark)
PENNSYLVANIA
MUNICIPAL
PORTFOLIOS
ANNUAL REPORT
DECEMBER 31, 1993
CONTENTS
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PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
SPARTAN PENNSYLVANIA
MUNICIPAL HIGH YIELD PORTFOLIO
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 last six
months
and one year.
INVESTMENTS 11 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 20 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
SPARTAN PENNSYLVANIA
MUNICIPAL MONEY MARKET PORTFOLIO
PERFORMANCE 24 How the fund has done over time.
FUND TALK 26 The manager's review of fund
performance, strategy, and outlook.
INVESTMENT CHANGES 28 A summary of major shifts in the
fund's investments over the last six
months
and one year.
INVESTMENTS 29 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 34 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 38 Footnotes to the financial
statements.
REPORT OF INDEPENDENT 41 The auditor's opinion.
ACCOUNTANTS
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THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Once the new year begins, many people start reviewing their finances and
calculating their tax bills. No one wants to pay more taxes than they have
to. But a recent survey of 500 U.S. households, conducted by Fidelity and
Yankelovich Partners, showed that few people have taken steps to reduce
their taxes under the new legislation. Many were not even aware that the
new tax laws were retroactive to January 1993.
Whether or not you're someone whose tax bill will increase as a result of
these changes, it may make sense to consider ways to keep more of what you
earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider adding to your tax-free investments-either municipal bonds
or municipal bond funds. Often these can provide higher after-tax yields
than comparable taxable investments. For example, if you're in the new 36%
federal income tax bracket and invest $10,000 in a taxable investment
yielding 7%, you'll pay $252 in federal taxes and receive $448 in income.
That same $10,000 invested in a tax-free bond fund yielding 5.5% would
allow you to keep $550 in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
SPARTAN PENNSYLVANIA MUNICIPAL HIGH YIELD PORTFOLIO
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 DECEMBER 31, 1993 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan Pennsylvania
Municipal High Yield 13.17% 63.51% 87.03%
Lehman Brothers Municipal Bond Index 12.29% 62.86% n/a
Average Pennsylvania Tax-Exempt
Municipal Bond Fund 12.54% 59.80% n/a
Consumer Price Index 2.75% 21.00% 33.15%
CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, one year, five years, or since the fund started on August 6,
1986. 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 Pennsylvania
tax-exempt municipal bond fund, which reflects the performance of 49
Pennsylvania 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 consumer price index helps
show how your fund did compared to inflation. (The period covered by CPI
numbers are the closest available match to those covered by the fund).
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan Pennsylvania
Municipal High Yield 13.17% 10.33% 8.82%
Lehman Brothers Municipal Bond Index 12.29% 10.25% n/a
Average Pennsylvania Tax-Exempt
Municipal Bond Fund 12.54% 9.82% n/a
Consumer Price Index 2.75% 3.89% 3.93%
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 PA Hi Yld (402) Municipal Bond Index (SH1
08/31/86 10000.00 10000.00
09/30/86 10054.67 10025.10
10/31/86 10247.94 10198.23
11/30/86 10389.98 10400.26
12/31/86 10329.58 10371.56
01/31/87 10619.06 10683.84
02/28/87 10726.54 10736.41
03/31/87 10633.81 10622.60
04/30/87 9635.80 10089.56
05/31/87 9511.25 10039.52
06/30/87 9731.51 10334.28
07/31/87 9912.36 10439.69
08/31/87 9930.00 10463.17
09/30/87 9312.07 10077.40
10/31/87 9290.87 10113.07
11/30/87 9561.05 10377.12
12/31/87 9737.58 10527.70
01/31/88 10226.62 10902.69
02/29/88 10395.52 11017.93
03/31/88 10077.29 10889.57
04/30/88 10138.64 10972.34
05/31/88 10210.17 10940.63
06/30/88 10412.66 11100.69
07/31/88 10481.85 11173.06
08/31/88 10499.01 11182.90
09/30/88 10728.60 11385.31
10/31/88 11039.46 11586.26
11/30/88 10943.15 11480.13
12/31/88 11121.72 11597.57
01/31/89 11278.34 11837.41
02/28/89 11181.44 11702.34
03/31/89 11178.65 11674.37
04/30/89 11467.63 11951.52
05/31/89 11675.62 12199.76
06/30/89 11859.07 12365.43
07/31/89 11973.29 12533.72
08/31/89 11860.42 12411.02
09/30/89 11821.57 12373.78
10/31/89 11984.64 12524.74
11/30/89 12126.31 12743.93
12/31/89 12212.13 12848.43
01/31/90 12144.67 12788.04
02/28/90 12252.25 12901.85
03/31/90 12254.25 12905.72
04/30/90 12074.26 12812.80
05/31/90 12375.67 13092.12
06/30/90 12488.21 13207.33
07/31/90 12651.30 13401.48
08/31/90 12468.04 13207.16
09/30/90 12531.04 13215.08
10/31/90 12711.90 13454.28
11/30/90 12984.66 13724.71
12/31/90 13091.24 13785.09
01/31/91 13261.52 13969.82
02/28/91 13338.07 14091.35
03/31/91 13367.31 14096.99
04/30/91 13577.20 14284.48
05/31/91 13739.13 14411.61
06/30/91 13670.81 14397.20
07/31/91 13874.86 14572.85
08/31/91 14065.38 14765.21
09/30/91 14228.89 14957.15
10/31/91 14351.80 15091.77
11/30/91 14390.39 15134.03
12/31/91 14726.72 15459.41
01/31/92 14766.44 15494.96
02/29/92 14774.39 15499.61
03/31/92 14773.29 15505.81
04/30/92 14928.17 15643.81
05/31/92 15114.54 15828.41
06/30/92 15358.30 16094.33
07/31/92 15841.46 16577.16
08/31/92 15676.38 16414.70
09/30/92 15760.31 16521.40
10/31/92 15518.08 16359.49
11/30/92 15887.95 16652.32
12/31/92 16068.88 16822.18
01/31/93 16280.58 17017.31
02/28/93 16918.93 17633.34
03/31/93 16726.16 17446.43
04/30/93 16889.04 17622.64
05/31/93 16992.34 17721.32
06/30/93 17280.04 18017.27
07/31/93 17258.87 18040.69
08/31/93 17691.98 18415.94
09/30/93 17952.08 18625.88
10/31/93 17961.08 18661.27
11/30/93 17807.68 18497.05
12/31/93 18186.79 18887.34
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Pennsylvania Municipal High Yield Portfolio on August 31, 1986, shortly
after the fund started. As the chart shows, by December 31, 1993, the value
of your investment would have grown to $18,187 - a 81.87% increase on your
initial investment. This assumes you still own the fund on December 31, 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 $18,887 - a 88.87% 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)
INCOME
YEARS ENDED DECEMBER 31, 1993 1992 1991 1990 1989
Income return 6.68% 7.00% 7.53% 7.40% 7.32%
Capital gain returns 1.40% 0.00% 0.00% 0.00% 0.00%
Change in share price 5.09% 2.11% 4.95% -0.21% 2.47%
Total return 13.17% 9.11% 12.48% 7.19% 9.79%
Income returns, capital gain returns, and changes in share price are all
part of a bond fund's total return. An income return reflects the dividends
paid by the fund. A capital gain return reflects the amount paid by the
fund to shareholders based on the profits it has from selling bonds that
have grown in value. Both returns assume the dividends or gains are
reinvested. Changes in the fund's share price include changes in the prices
of the bonds owned by the fund. Change in share price and total return
figures include the effect of the
$5 account closeout fee.
DIVIDENDS AND YIELD
PERIODS ENDED DECEMBER 31, 1993 PAST 30 PAST 6 PAST 1
DAYS MONTHS YEAR
Dividends per share n/a 33.03(cents) 67.92(cents)
Annualized dividend rate n/a 5.87% 6.17%
Annualized yield 5.46% n/a n/a
Tax-equivalent yield 8.78% n/a n/a
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 $11.16 over
the past six months and $11.01 over the past year, you can compare the
fund's income over these two 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 37.79%
combined federal and state income tax bracket.
SPARTAN PENNSYLVANIA MUNICIPAL HIGH YIELD PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Generally, interest rates fell
during the 12 months ended
December 31, 1993. As a result,
bond prices rose and most
fixed-income investors -
including those in tax-free bonds
- - enjoyed attractive returns.
The period began with worries of
rising interest rates. The
economic recovery was finally
taking hold, and the spending
plans of the president-elect were
still unclear. But the bond market
signaled its approval as
President Clinton promised to
reduce the deficit and fight
inflation. The yield on the
benchmark 30-year Treasury
bond declined steadily and
reached an historic low of 5.79%
in mid-October. By year-end,
mild inflation fears, fueled by a
strengthening economy, had
pushed up the yield on the
30-year bond to 6.35%. Two
factors affected tax-free bonds
specifically: on the positive side,
higher federal taxes -
discussed all year and approved
in August - boosted demand.
At the same time, record new
issuance kept supplies high,
which somewhat dampened
prices. Overall during the period,
tax-free bonds performed well
compared to other fixed-income
investments. The Lehman
Brothers Municipal Bond Index
- - a broad measure of the
tax-free bond market - rose
12.29%. By comparison, the
Lehman Brothers Aggregate
Bond Index - which tracks
investment-grade taxable bonds
- - rose only 9.75%, due in part
to relatively poor performance
by mortgage backed securities.
An interview with Steven Harvey,
Portfolio Manager of Spartan
Pennsylvania Municipal High Yield
Portfolio
Q. STEVE, HOW DID THE FUND DO?
A. For the 12 months ended December 31, 1993, the fund had a total return
of 13.17%. That beat the average Pennsylvania tax-free bond fund, which
returned 12.54% over the same period, according to Lipper Analytical
Services. The difference can be attributed to the fund's above average
income and a longer-than-average duration - which measures how much a
bond's price moves with changes in interest rates. When interest rates are
falling - as they have over the past year - funds with longer average
durations tend
to do well.
Q. IS THAT WHY YOU LENGTHENED THE DURATION TO 7.9 YEARS BY DECEMBER 31,
1993 COMPARED TO 7.4 YEARS A YEAR EARLIER?
A. Exactly. I did that by buying non-callable bonds. These bonds can't be
redeemed before the scheduled maturities, and so have longer average
durations.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. Housing bonds - which were 4.9% of the fund's investments at year-end -
didn't perform as well as other sectors. That's because they had seen rapid
prepayments in principal due to the sharp drop in mortgage rates.
Q. WHAT OTHER CHANGES HAVE YOU MADE SINCE TAKING OVER THE FUND IN OCTOBER?
A. I've built up a 7.7% stake in Pennsylvania Intergovernmental Cooperation
Authority (PICA) bonds. PICA was established to bail out the City of
Philadelphia and the bonds are attractive in part because of their limited
supply. If the need to bail out Philadelphia decreases - which seems to be
the case - with improvements in the city's fiscal health, PICA bonds'
credit rating - now Baa - could be upgraded. If they are upgraded, they'd
probably become more attractive to investors and that could translate into
higher prices.
Q. WHY ARE YOU SO CONFIDENT THAT PHILADELPHIA WILL GET BACK ON THE RIGHT
TRACK?
A. Because of what has happened so far. Initially, when the city ran into
problems, I was optimistic that they could be solved and that Philadelphia
wouldn't go bankrupt. That's why when many bondholders overreacted and sold
the city's bonds, I saw it as an opportunity to buy at cheap prices. My
optimism turned out to be justified when Standard & Poor's recently
upgraded Philadelphia municipals. A lot of the programs put into place by
the city's new administration and the cooperation between it and the unions
and city council have translated into an improved fiscal climate. In
addition to the PICA bonds, about 2.6% of the fund is invested in bonds
issued by the Philadelphia Municipal Authority.
Q. THE FUND'S LARGEST SECTOR CONCENTRATION - AT 23.7% OF INVESTMENTS - IS
HEALTH CARE. ARE YOU CONCERNED THAT THESE BONDS MIGHT BE AFFECTED BY
HEALTH-CARE REFORM?
A. The potential impact of health-care reform is a situation I'm monitoring
very carefully. In Philadelphia, for example, there has been some
consolidation of health-care providers. But I think that there are still
many hospital beds that are going empty. I've invested in hospitals that I
think could thrive under health-care reform. I like hospitals with a core
downtown location that provide specialized services, are connected to a
network of suburban hospitals, and have strong HMO relationships. Hospitals
that already know how to deal with HMOs and tailor their costs to suit them
are the ones I think will do well in the future.
Q. HOW DO YOU THINK THE STATE'S ECONOMY WILL FARE OVER THE NEXT 12 MONTHS?
A. I believe that Pennsylvania's economy will perform more or less in step
with the nation's economy. Recent statistics indicate, for example, that
the state's employment growth is on par with the national average. I don't
see any evidence that Pennsylvania's economy will rebound faster than the
national average. One bright spot is that state's newly diversified
economy. In the past several years, Pennsylvania has become less reliant on
heavy industry and more on high technology and medical service businesses.
This shift will make the state's economy a little less sensitive to
downturns in the economy.
Q. SO WHAT CAN INVESTORS EXPECT FOR 1994?
A. Probably more modest returns than they've enjoyed in 1993. It's unlikely
that the huge drop in interest rates that occurred in 1993 will repeat
itself in 1994. What's probably more likely is that the range of interest
rates will be relatively tight. In that kind of market, good investment
returns usually come from selecting the right sector and doing careful
research to identify those bonds which have the strongest potential for
improved credit ratings.
FUND FACTS
GOAL: to provide high current
income exempt from federal
and Pennsylvania state
income taxes
START DATE: August 6, 1986
SIZE: as of December 31,
1993, over $306 million
NEW MANAGER: Steven
Harvey, since October 1993;
manager, Fidelity Minnesota
Tax-Free Portfolio, since
October 1993; Spartan
Maryland Municipal Income
Portfolio, since April 1993
(checkmark)
STEVE HARVEY'S OUTLOOK
ON INTEREST RATES:
"Despite some decline in
bond prices in the last quarter
of 1993 - caused by
stronger-than-expected
economic news - I believe
that interest rates won't rise or
fall much over the next 12
months. And even though
economic growth was strong
over the last quarter of 1993,
it hasn't yet translated into
higher inflation. While some
commodity prices have
started to rise slightly, oil
prices are flat. As long as oil
- - an important part of the
country's economy - stays
low, I don't worry too much
about inflation rising. There's
also continued evidence that
wages are under control,
since major corporations are
still announcing plans to lay
off workers. To me that
signals that rates could
remain low for at least the first
half of 1994."
(bullet) On December 31, 1993, the
fund's duration was 7.9 years.
7.7 years six months earlier.
That means if interest rates
rose one percentage point,
the fund's share price -
$11.13 on December 31 -
would fall about 7.9% to
roughly $10.25.
(bullet) After health care, water and
sewer bonds were the fund's
second largest sector at
12.4%
of investments.
SPARTAN PENNSYLVANIA MUNICIPAL HIGH YIELD PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF DECEMBER 31, 1993
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Health Care 23.7 21.5
Water & Sewer 12.4 8.3
General Obligation 11.7 13.2
Other 9.0 8.8
Special Tax 8.1 0.4
AVERAGE YEARS TO MATURITY AS OF DECEMBER 31, 1993
6 MONTHS AGO
Years 19.6 21.0
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 DECEMBER 31, 1993
6 MONTHS AGO
Years 7.9 7.7
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 5%.
QUALITY DIVERSIFICATION AS OF DECEMBER 31, 1993
(MOODY'S RATINGS)
Aaa 29.8%
Aa, A 14.3%
Baa 32.0%
Ba, -B 5.3%
Non-rated 18.6%
Row: 1, Col: 1, Value: 29.8
Row: 1, Col: 2, Value: 14.3
Row: 1, Col: 3, Value: 32.0
Row: 1, Col: 4, Value: 5.3
Row: 1, Col: 5, Value: 18.6
THIS CHART EXCLUDES SHORT-TERM INVESTMENTS. WHERE MOODY'S RATINGS ARE NOT
AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN PENNSYLVANIA MUNICIPAL HIGH YIELD PORTFOLIO
INVESTMENTS/DECEMBER 31, 1993
(Showing Percentage of Total Value of Investments)
MUNICIPAL BONDS - 96.3%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (D) AMOUNT (NOTE 1)
PENNSYLVANIA - 89.1%
Aliquippa Unltd. Tax Gen. Oblig. 8.25%
9/15/01 - $ 1,440,000 $ 1,553,400 016302CC
Allegheny County Arpt. Rev. (Greater Pittsburgh
Int'l. Arpt.) 7% 1/1/18, (MBIA Insured) (c) Aaa 1,000,000 1,100,000
017286BF
Allegheny County Higher Ed. Bldg. Auth. Rev.
Rfdg. (La Roche College) 7.625% 12/1/06 - 1,000,000 1,053,750 01729EAZ
Allegheny County Hosp. Dev. Auth. Health
Facs. Rev. (Allegheny Valley School)
8.50% 2/1/15 Baa 3,000,000 3,386,250 0172894S
Allegheny County Hosp. Dev. Auth. Rev.:
Rfdg. (South Side Hosp.) Series A, 8.75%
6/1/10 BBB 3,750,000 4,050,000 017289G2
(Allegheny Valley Hosp.) 7.75% 8/1/20 A- 1,000,000 1,132,500 0172895C
(Health & Ed. Rehabilitation Institute) 7%
6/01/22 BBB 1,500,000 1,582,500 01728ABL
Allegheny County Ind. Dev. Auth. Rev.
(YMCA Pittsburgh Proj.) Series 1990,
8.75% 3/1/10 - 2,790,000 3,082,950 017292NR
Allegheny County Residential Fin. Auth. Mtg. Rev.:
Series H, 8% 6/1/17 (GNMA Coll.) Aaa 250,000 261,875 017350PL
Series 1990, 7.95% 6/1/23, (GNMA
Coll.) (c) Aaa 1,835,000 1,945,100 017350RH
Allegheny County San. Auth. Swr. Rev.:
Series B, 7.50% 12/1/16, (FGIC Insured) Aaa 750,000 870,000 017357HQ
0% 12/1/12, (FGIC Insured) Aaa 2,260,000 796,650 017357JE
Beaver County Ind. Dev. Auth. Poll. Cont. Rev.:
Series A:
(Ohio Edison Co.) (Beaver Valley)
10.50% 10/1/15 Baa2 275,000 311,438 074876CY
(Toledo Edison Co.) (Beaver Valley)
13.25% 11/15/14 Ba1 1,000,000 1,098,750 074876CD
Beaver County Ind. Dev. Auth. Rev. 6% 2/15/07 Ba3 1,700,000 1,697,875
07487FAA
Berks County 2nd Series:
0% 5/15/11, (FGIC Insured) Aaa 3,310,000 1,282,625 084509EZ
0% 5/15/12, (FGIC Insured) Aaa 3,395,000 1,243,419 084509FA
Berks County Ind. Dev. Auth. Ind. Dev. Rev.
(Beverly Enterprises, Inc.) Series A, 11.50%
5/1/07 - 540,000 563,625 084517AG
Bucks County Wtr. & Swr. Auth. Rev. (Neshaminy
Interceptor Swr. Sys.) Series A, 0% 12/ 1/14,
(FGIC Insured) Aaa 4,400,000 1,375,000 118673L2
Butler County Ind. Dev. Auth. 1st Mtg. Rev. Rfdg.
(Sherwood Oaks Proj.) (Lifetime Care Commty.)
Series A, 8.75% 6/1/16 A- 675,000 769,500 123594AN
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (D) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Chartiers Valley Ind. & Commercial Dev. Auth.
1st Mtg. Rev. Rfdg. (United Methodist Health
Ctr.) Series A, 9.50% 12/1/15 - $ 3,500,000 $ 3,736,250 161385BS
Chester County Hosp. Auth. Rev. (Paoli Mem.
Hosp.) 7.625% 10/1/13 A 2,000,000 2,152,500 165580HL
Clarion County Hosp. Auth. Hosp. Rev.:
Rfdg. (Clarion Hosp. Proj.) 8.10% 7/1/12 BBB- 6,000,000 6,562,500
180901AM
(Clarion Hosp. Proj.):
8.50% 7/1/13 BBB- 2,945,000 3,346,256 180901AN
8.50% 7/1/21 BBB- 1,665,000 1,891,856 180901AP
Commodore Perry School Dist. Series 1991,
7.10% 2/1/16, (MBIA Insured) Aaa 1,000,000 1,127,500 202665AZ
Dauphin County Gen. Auth. Rev. (Downington
Muni. Pooled Prog.) Series A, 7.75% 1/1/06,
(MBIA Insured) Aaa 750,000 840,000 238259MV
Dauphin County Ida Wtr. Dev. Rev. (Dauphin
Consolidated Wtr. Supply) Series A, 6.90%
6/01/24 (c) A2 1,000,000 1,201,250 23826KAB
Delaware County Auth. Hosp. Rev. (Crozer-Chester
Med Ctr.):
6% 12/15/09 A 1,000,000 1,018,750 246006KC
6% 12/15/20 A 1,000,000 1,010,000 246006KE
Delaware County Auth. Rev. (First Mtg. Riddle
Village Proj.):
Series 1992, 8.75% 6/1/10 - 2,870,000 2,988,388 245913BG
9.25% 6/1/22 - 1,800,000 1,923,750 245913BF
Delaware County Ind. Dev. Auth. Rev. Rfdg.
(Resources Recovery Proj.) Series A, 8.10%
12/1/13, LOC Swiss Bank Aa3 1,400,000 1,541,750 246018CB
Doylestown Hosp. Auth. Hosp. Rev. (Doylestown
Pinerun Retirement Commty.) Series 1993 A
7.20% 7/1/23 - 3,200,000 3,276,000 261333BZ
Dubois Hosp. Auth. Hosp. Rev. Rfdg. (Dubois
Reg'l. Med. Ctr. Proj.) Series A, 8.75%
7/1/11 BBB+ 2,100,000 2,333,625 263804AQ
Erie County Hosp. Auth. Rev. Rfdg. (Hamot
Health Sys., Inc.) 7.10% 2/15/10,
(AMBAC Insured) Aaa 1,000,000 1,142,500 295200MR
Erie County Ind. Dev. Auth. Rev. Rfdg. (Beverly
Enterprises Proj.) 6.875% 10/1/02 - 550,000 559,625 295206HS
Fairview Township Auth. Swr. Rev. 7% 11/1/20,
(AMBAC Insured) Aaa 500,000 562,500 306005AZ
Gettysburg Muni. Auth. College Rev. (Gettysburg
College Proj.) 6.60% 2/15/12 A 2,990,000 3,259,100 374311BH
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (D) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Grove City Area Hosp. Auth. Hosp. Rev. Rfdg.
(United Commty. Hosp.) 8.125% 7/1/12 BBB- $ 450,000 $ 475,313 399545AM
Harrisburg Auth. Lease Rev. 6.25% 6/1/10,
(Cap. Guaranty Insured) Aaa 1,000,000 1,095,000 41473CAM
Harrisburg Auth. Wtr. Rev. (Complimentary
Auction Rate B-3) 8.82% 7/15/15,
(FGIC Insured) (f) Aaa 3,000,000 3,322,500 41473MCB
Harrisburg Redev. Auth. Rev. (Cap. Impt.)
Series A, 7.875% 11/2/16, (FGIC Insured) Aaa 500,000 560,625 414763AD
Indiana County Hosp. Auth. (Indiana Hosp. Proj.)
Series A, 7.125% 7/1/23 Baa1 1,500,000 1,606,875 454690CF
Jenks Township Muni. Auth. Rev. (Abraxas
Group, Inc.) 8% 4/1/18 - 6,605,000 6,671,050 476134AD
Keystone Oaks School Dist. Series D, 8.78%
9/01/16, (AMBAC Insured) (f) Aaa 2,950,000 3,226,563 493534CL
Lackawanna County Multi-Purp. Stadium Auth.
Stadium Rev. 8.625% 8/15/07 (Pre-Refunded to
8/15/98 @103) (b) Baa 2,000,000 2,395,000 505502AR
Lancaster County Solid Waste Resources
Recovery Mgmt. Auth. Sys. Rev. (Landfill)
7.875% 12/15/09 A1 900,000 1,019,250 514057BB
Lancaster County Unltd. Tax Gen. Oblig.
(Cap. Appreciation) 0% 7/1/06,
(FGIC Insured) Aaa 2,645,000 1,395,238 514040HP
Lancaster Ind. Dev. Auth. 1st Mtg. Rev.
(Lancaster Nursing Ctr.) Series A, 8.75%
12/1/12 - 1,405,000 1,408,513 514343BK
Lebanon County Redev. Auth. Rev. 1st Mtg.
(Cornwall Manor) Series A, 8.625% 6/1/16 - 2,570,000 2,740,263 522461AN
Lehigh County Gen. Purp. Auth. Rev.:
(Hosp. Healtheast, Inc.) Series B, 9% 7/1/15 A1 1,000,000 1,187,500
524805GX
(St. Luke's Hosp. Bethlehem Proj.) 3%
11/15/94, (AMBAC Insured) Aaa 1,380,000 1,385,175 524805VB
(Wiley House):
8.75% 11/1/14 - 4,000,000 4,315,000 524805MK
9.50% 11/1/16 - 3,000,000 3,397,500 524805QM
Lehigh County Ind. Dev. Rev. Rfdg. (Stanley-
Vidmar, Inc. Proj.) 6.30% 7/1/10 A2 1,000,000 1,092,500 524807AU
Lower Moreland Township Auth. Swr. Rev.:
Series A:
0% 8/1/13, (FGIC Insured) Aaa 825,000 277,406 548338DG
0% 8/1/14, (FGIC Insured) Aaa 850,000 269,875 548338DJ
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (D) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Lower Providence Township Swr. Auth. Swr.
Rev. 6.75% 5/1/22 A1 $ 1,350,000 $ 1,483,313 548508BJ
Lower Salford Township Swr. Auth. Swr. Rev.
7.375% 12/15/20, (FSA Insured) Aaa 1,000,000 1,133,750 548593CT
McCandless Ind. Dev. Auth. Rev.
(Kroger Co.) 7.375% 10/15/07 Ba3 2,190,000 2,414,475 579402AA
McKeesport Area School Dist. Rfdg. Series C,
5% 4/1/13 A 1,000,000 966,250 581408GJ
Mechanicsburg Area School Dist. Unltd. Tax 0%
9/1/04, (FGIC Insured) Aaa 910,000 535,763 583726DY
Montgomery County Health Facs. Ind. Dev. Auth.
Rev. (ECRI Proj.) Series 1993 6.85% 6/1/13 - 2,165,000 2,202,888
613607AD
Montgomery County Higher Ed. & Health Auth.
Hosp. Rev. (United Hosp. Proj.):
(St. Christopher) 8.50% 11/1/17 Ba1 1,000,000 1,072,500 613604GF
Series A:
8.375% 11/1/11 Ba1 3,140,000 3,418,675 613604KF
10% 11/1/05 Ba1 675,000 716,344 613604KW
Moon Trans. Auth. Hwy. Impt. Rev. 9.50%
2/1/16 BBB+ 1,000,000 1,072,500 615538AJ
New Garden Township Swr. Auth. Swr. Rev. 7%
3/1/15, (Cap. Guaranty Insured) Aaa 1,000,000 1,121,250 644422AN
Northumberland County Auth. Commonwealth
Lease Rev. 0% 10/15/10, (MBIA Insured) Aaa 1,000,000 407,500 667067AN
Pennsylvania Convention Ctr. Auth. Rev. Series A:
6.70% 9/1/16, (FGIC Insured) Aaa 3,000,000 3,607,500 708681AU
6% 9/1/19, (FGIC Insured) Aaa 8,225,000 9,140,031 708681AV
Pennsylvania Higher Ed. Assistant Agcy. Student
Loan Rev.: (c)
Series A, 7.05% 10/1/16, (AMBAC
Insured) Aaa 1,500,000 1,689,375 709163AD
9.172% 3/1/22 (AMBAC Insured) (f) Aaa 2,000,000 2,120,000 709163AY
10.535% 9/3/26 (AMBAC Insured) (f) Aaa 1,000,000 1,153,750 709163AT
Pennsylvania Higher Edl. Facs. Auth. College &
Univ. Rev. (College Optometry) 9% 2/1/08 - 1,240,000 1,319,050 709171FM
Pennsylvania Higher Ed. Facs. Auth. Rev.:
Rfdg. (Duquesne Univ. Proj.) Series A, 6.75%
4/1/20, (MBIA Insured) Aaa 1,300,000 1,441,375 709171QD
(Pennsylvania Med. College Proj.) Series A,
8.375% 3/1/11 Baa1 900,000 1,030,500 709174BM
Pennsylvania Hsg. Fin. Agcy. Muni. Forwards Rfdg.
(Multi-Family Section 8) Series C, 8.10% 7/1/13,
(FHA Guaranteed) Aa 2,000,000 2,272,500 708791WD
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (D) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Pennsylvania Hsg. Fin. Agcy. Rfdg. (Residential
Dev.-Section 8.), Series A, 7.60% 7/1/13 A1 $ 1,000,000 $ 1,085,000
708791ZN
Pennsylvania Hsg. Fin. Agcy. Single Family Mtg.:
Series N, 8.25% 4/1/14 Aa 500,000 528,125 708791DZ
Series V, 7.80% 4/1/16 Aa 500,000 534,375 708791KP
Series X, 8.15% 4/1/24 (c) Aa 2,925,000 3,180,938 708791TS
Series 28, 7.65% 10/1/23 (c) Aa 1,670,000 1,809,863 708791UW
Series 1990-27, 8.15% 10/1/21(c) Aa 990,000 1,092,713 708791TA
Pennsylvania Ind. Dev. Auth. Econ. Dev. Rev.
Series A, 7% 1/1/11 A 1,750,000 1,927,188 709193GD
Pennsylvania Intergovernmental Coop. Auth.
Spl. Tax Rev.:
Rfdg. Series A, 5% 6/15/15 Baa 7,500,000 7,134,375 708840CH
(City of Philadelphia Funding Prog.) 5.75%
6/15/15 Baa 16,000,000 16,280,000 708840BN
Philadelphia Gas Wks. Rev. Rfdg. Fourteenth:
Series A:
6.375% 7/1/14 Baa1 2,000,000 2,127,500 717823NX
6.375% 7/1/26 Baa1 2,250,000 2,385,000 717823QH
Philadelphia Hosp. & Higher Ed. Facs. Auth.
Hosp. Rev.:
(Albert Einstein Med. Ctr.) 7.625% 4/1/11 A 1,000,000 1,105,000
717903HY
(Graduate Health Sys.):
Series A, 6.25% 7/1/18 Baa1 3,000,000 3,033,750 717825CQ
Philadelphia Ind. Dev. Auth. Rev. (Refrigerated
Enterprises Proj.) 9.05% 12/1/19 (c) (e) - 7,000,000 7,481,250 717818NN
Philadelphia Ind. Impt. Auth. Rev. Rfdg. (Encore
Nursing Ctr. Stenton Proj.) (Beverly Enterprises,
Inc.) 7.50% 11/1/02 - 1,100,000 1,100,000 717821AA
7.25% 7/1/18 Baa1 5,225,000 5,682,188 717903LH
Philadelphia Muni. Auth. Rev.
(Muni. Svcs. Bldg. Lease):
0% 3/15/11, (Cap. Guaranty Insured) Aaa 1,000,000 387,500 717904CQ
0% 3/15/14, (Cap. Guaranty Insured) Aaa 7,360,000 2,410,400 717904CT
0% 3/15/15, (Cap. Guaranty Insured) Aaa 6,500,000 1,998,750 717904CM
Lease Rev. Series D 6.25% 7/15/13 Ba 3,000,000 3,037,500 717904GC
Philadelphia Redev. Auth. Hsg. Rev. Sub-Series 3,
8.125% 8/1/26, (GNMA Coll.) AAA 45,000 53,438 717865BP
Philadelphia Wtr. & Swr. Rev. (Cap. Appreciation)
14th Series:
0% 10/1/05, (MBIA Insured) Aaa 3,300,000 1,815,000 717890LX
0% 10/1/06, (MBIA Insured) Aaa 1,450,000 748,563 717890LY
0% 10/1/08, (MBIA Insured) Aaa 5,300,000 2,418,125 717890MB
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (D) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Philadelphia Wtr. & Wastewtr. Rev.:
Rfdg. 5% 6/15/12, (FGIC Insured) Aaa $ 1,845,000 $ 1,787,344 717893BG
8.12% 6/15/12, (FGIC Insured) (f) Aaa 3,000,000 3,123,750 717893BF
Philadelphia Wtr. & Wastewtr. Rfdg. Rev.,
Series 1993, 5.50% 6/15/07 Baa 7,000,000 7,105,000 717893AN
Pittsburgh Gen. Oblig. Series A, 5.50% 9/1/14,
(AMBAC Insured) Aaa 1,750,000 1,830,938 725208V6
Pittsburgh School Dist. Series B:
0% 8/1/07, (AMBAC Insured) Aaa 2,610,000 1,285,425 725276WZ
0% 8/1/08, (AMBAC Insured) Aaa 2,000,000 927,500 725276XA
Pittsburgh Urban Redev. Auth. Mtg. Rev.
Series A, 7.625% 10/1/17 A1 995,000 1,037,288 725299LF
Pittsburgh Wtr. & Swr. Sys. Rev. Rfdg.
Series A, 6.50% 9/1/13, (FGIC Insured) Aaa 6,000,000 6,982,500 725304DC
Pottstown Borough Auth. Swr. Rev.:
7.60% 11/1/18, (Cap. Guaranty Insured) Aaa 500,000 571,875 738289AR
0% 11/1/10, (FGIC Insured) Aaa 1,600,000 642,000 738289BU
0% 11/1/14 (FGIC) insured Aaa 1,760,000 556,600 738289CC
Rochester Area School Dist. Gen. Oblig.:
0% 5/1/13, (AMBAC Insured) Aaa 655,000 230,069 771738DE
0% 5/1/14, (AMBAC Insured) Aaa 655,000 217,788 771738DF
0% 5/1/15, (AMBAC Insured) Aaa 655,000 204,688 771738DG
0% 5/1/16, (AMBAC Insured) Aaa 655,000 193,225 771738DH
Schuylkill County Ind. Dev. Auth. Rev. (1st Mtg.
Valley Health Concerns) Series A, 8.75%
3/1/12 - 1,500,000 1,556,250 808390CK
Schuylkill County Redev. Auth. Lease Rev.
Series A, 7.125% 6/1/13, (FGIC Insured) Aaa 1,000,000 1,188,750
808412AP
Scranton Parking Auth. Parking Rev. 8.125%
9/15/14, LOC Northeastern Bank A+ 500,000 571,250 810802AY
State Pub. School Bldg. Auth. School Rev. Rfdg.
(Shenandoah Valley School Dist. Proj.) 7.375%
9/15/10, (AMBAC Insured) Aaa 1,000,000 1,141,250 857321GM
Stroud Township Swr. Auth. Swr. Rev.:
0% 11/15/06, (Cap. Guaranty Insured) Aaa 510,000 265,200 863450BF
0% 11/15/07, (Cap. Guaranty Insured) Aaa 510,000 248,625 863450BG
0% 11/15/08, (Cap. Guaranty Insured) Aaa 510,000 232,688 863450BH
0% 11/15/09, (Cap. Guaranty Insured) Aaa 510,000 215,475 863450BJ
Swarthmore Borough Auth. (Swarthmore
College) 7.375% 9/15/18 AA 175,000 196,438 870000DC
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (D) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Upper Gwyned Towamencin Muni. Auth. Swr. Rev.:
0% 4/15/11, (MBIA Insured) Aaa $ 500,000 $ 192,500 915812EN
0% 10/15/11, (MBIA Insured) Aaa 490,000 183,750 915812EP
Warren County Ind. Dev. Auth. Specialized Dev.
Rev. Rfdg. (Beverly Enterprises, Inc.):
8.75% 11/1/06 - 125,000 143,125 935186BB
9%, 11/1/12 - 535,000 620,600 935186BC
Washington County Ind. Dev. Auth. Ind. Dev.
Rev. Rfdg. (Kroger Co.) 7.50% 5/1/99 Ba3 1,000,000 1,090,000 938597AM
West Goshen Swr. Auth. Swr. Rev. 7.10%
9/1/13 A1 1,000,000 1,127,500 952870DG
Westmoreland County Gen Oblig. 0% 8/1/16,
(AMBAC Insured) Aaa 3,545,000 1,050,206 960895GQ
Westmoreland County Ind. Dev. Auth. Rev. Rfdg.:
(Citizens Gen. Hosp. Proj.) Series A, 8.25%
7/1/13 A 750,000 830,625 961008KL
(Commonwealth Dev. 1st Mtg. K mart Corp.)
Series A, 6.80% 5/1/07 - 765,000 861,581 961008KW
(Kroger Co.) 7.25% 9/1/99 Ba3 1,000,000 1,107,500 961008KZ
Westmoreland County Muni. Auth. Svc. Rev.
Series K, 0% 7/1/13, (FGIC Insured) Aaa 3,500,000 1,194,375 961017BT
Wilkins Area Ind. Dev. Auth. Rev. (1st Mtg.)
(Fairview Extended Care) Series A, 10.25%
1/1/21 - 2,500,000 2,740,625 968422AA
Wilson Area School Dist. (Cap. Appreciation):
0% 5/15/09, (AMBAC Insured) Aaa 3,275,000 1,436,906 972352DP
0% 5/15/10, (AMBAC Insured) Aaa 3,280,000 1,353,000 972352DQ
0% 5/15/11, (AMBAC Insured) Aaa 3,500,000 1,369,375 972352DR
Wyoming Ind. Dev. Auth. Poll. Ref. (Proctor &
Gamble Paper Proj.) 5.55% 5/1/10 Aa2 5,000,000 5,131,250 983283AD
York City Swr. Auth. Swr. Rev. Unltd. Tax:
0% 12/1/12, (MBIA Insured) Aaa 3,235,000 1,160,556 986863DL
0% 12/1/15, (MBIA Insured) Aaa 1,000,000 298,740 986863DS
271,352,413
PUERTO RICO - 6.2%
Puerto Rico Commonwealth Gen. Oblig. Unltd. Tax
5% 7/1/21 Baa1 5,000,000 4,750,000 745144KJ
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Rev. Series W, 5.50% 7/1/13 Baa1 9,000,000 9,123,750 745181BZ
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (D) AMOUNT (NOTE 1)
PUERTO RICO - CONTINUED
Puerto Rico Commonwealth Urban Renewal & Hsg.
Corp. Rfdg. 7.875% 10/1/04 Baa1 $ 1,000,000 $ 1,170,000 745245ES
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series O,
7.125% 7/1/14 Baa1 1,000,000 1,111,250 745268JU
Puerto Rico Ind. Med. & Envir. Poll. Cont. Facs.
Fing. Auth. Rev. (Baxter Travenol Laboratories)
Series A, 8% 9/1/12 A3 500,000 588,750 745271CH
Puerto Rico Infrastructure Fing. Auth. Spl. Tax
Series 1988 A, 7.75% 7/1/08 Baa1 1,000,000 1,135,000 745219AQ
Puerto Rico Tel. Auth. Rev. 5.25% 1/1/04,
(AMBAC Insured)(f) Aaa 1,000,000 1,032,500 745297HX
18,911,250
GUAM - 1.0%
Guam Arpt. Auth. Rev. Series A, 6.60%
10/1/10 (c) - 1,750,000 1,898,750 400648BK
Guam Pwr. Auth. Rev. Series A, 5.25%
10/1/13 - 1,000,000 957,500 400653BF
2,856,250
TOTAL MUNICIPAL BONDS
(Cost $268,313,386) 293,119,913
MUNICIPAL NOTES (A) - 3.7%
PENNSYLVANIA - 3.7%
Pennsylvania State Higher Ed. Assistance Agcy.
(Student Loan) Series 1988 A, 3.05%,
LOC Fuji Bank, VRDN, (c) VMIG 1 850,000 850,000 709163AF
Quakertown Hosp. Auth. Hosp. Rev. (HPS Group
Pooled Fing. Prog.) Series 1985 A, 3.20%,
LOC First Nat'l. Bank of Chicago, VRDN VMIG 1 2,000,000 2,000,000
747523AP
Schuylkill County Ind. Dev. Auth. Resources
Recovery Rev. (Westwood Energy Prop.)
Series 1985, 3.80%, LOC Fuji Bank, VRDN P-1 8,500,000 8,500,000
80839TAA
TOTAL MUNICIPAL NOTES
(Cost $11,350,000) 11,350,000
TOTAL INVESTMENTS - 100%
(Cost $279,663,386) $ 304,469,913
SECURITY TYPE ABBREVIATIONS
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 collateralized by an amount sufficient to pay interest and
principal.
(c) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(d) Standard & Poor's Corporation credit ratings are used in the
absence of a rating by Moody's Investors Service, Inc.
(e) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $7,481,250 or 2.4% of net
assets.
(f) Inverse floating rate security (inverse floater) is a security where
the coupon is inversely indexed to a floating interest rate multiplied by a
specified factor. If the floating rate is high enough, the coupon rate may
be zero or be a negative amount that is carried forward to reduce future
interest and/or principal payments. The price of an inverse floater may be
considerably more volatile than the price
of a comparable fixed rate security.
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 39.1% AAA, AA, A 54.5%
Baa 22.9% BBB 15.4%
Ba 5.14% BB 0%
B 0% B 1.0%
Caa 0% CCC 0%
Ca, C 0% CC, C 0%
D 0%
The percentage not rated by either S&P or Moody's amounted to 17.9%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investments, is as follows:
Health Care 23.7%
Water & Sewer 12.4%
General Obligation 11.7%
Others (individually
less than 10%) 52.2%
TOTAL 100.0%
INCOME TAX INFORMATION
At December 31, 1993 the aggregate cost of investment securities for income
tax purposes was $279,663,386. Net unrealized appreciation aggregated
$24,806,527, of which $24,849,959 related to appreciated investment
securities and $43,432 related to depreciated investment securities.
The fund hereby designates $321,300 as a capital gain dividend for the
purpose of the dividend paid deduction.
SPARTAN PENNSYLVANIA MUNICIPAL HIGH YIELD PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1993
IASSETS 1. 2.
3.Investment in securities, at value (cost $279,663,386) 4. $ 304,469,913
(Notes 1 and 2) - See accompanying schedule
5.Cash 6. 105,200
7.investment receivable 8. 4,534,437
9. 10.TOTAL ASSETS 11. 309,109,550
ILIABILITIES 12. 13.
14.Payable for investments purchased $ 1,709,917 15.
16.Dividends payable 1,012,046 17.
18.Accrued management fee 141,823 19.
20. 21.TOTAL LIABILITIES 22. 2,863,786
23.INET ASSETS 24. $ 306,245,764
25.Net Assets consist of: 26. 27.
28.Paid in capital 29. $ 280,286,885
30.Accumulated undistributed net realized gain (loss) 31. 1,152,352
on investments
32.Net unrealized appreciation (depreciation) on 33. 24,806,527
investment securities
34.INET ASSETS, for 27,519,545 shares outstanding 35. $ 306,245,764
36.INET ASSET VALUE, offering price and redemption 37. $11.13
price per share ($306,245,764 (divided by) 27,519,545 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1993
INVESTMENT INCOME 38. $ 18,930,371
IEXPENSES 39. 40.
41.Management fee (Note 4) $ 1,555,647 42.
43.Non-investmented trustees' compensation 1,831 44.
45. 46.TOTAL EXPENSES 47. 1,557,478
48.49.NET INVESTMENT INCOME 50. 17,372,893
IREALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 52. 53.
(NOTES 1 AND 3)
51.Net realized gain (loss) on:
54. Investment securities 9,281,154 55.
56. Futures contracts (1,218,148) 8,063,006
57.Change in net unrealized appreciation (depreciation) 58. 8,951,844
on investment securities
59.60.NET GAIN (LOSS) 61. 17,014,850
62.63.NET INCREASE (DECREASE) IN NET ASSETS 64. $ 34,387,743
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED DECEMBER 31,
1993 1992
IINCREASE (DECREASE) IN NET ASSETS
65.Operations $ 17,372,893 $ 14,561,945
Net investment income
66. Net realized gain (loss) on investments 8,063,006 (173,218)
67. Change in net unrealized appreciation (depreciation) 8,951,844 4,713,141
on investments
68. 69.NET INCREASE (DECREASE) IN NET ASSETS 34,387,743 19,101,868
RESULTING
FROM OPERATIONS
70.Distributions to shareholders from: (17,372,893) (14,561,945)
Net investment income
71. Net realized gain (3,786,608) -
72.Share transactions 84,285,725 68,361,043
Net proceeds from sales of shares
73. Reinvestment of distributions from: 13,600,803 11,548,920
Net investment income
74. Net realized gain 3,074,032 -
75. Cost of shares redeemed (50,344,647) (41,601,096)
76. Redemption fees (Notes 1 and 3) 26,131 28,179
77. Net increase (decrease) in net assets resulting 50,642,044 38,337,046
from
share transactions
78. 79.TOTAL INCREASE (DECREASE) IN NET ASSETS 63,870,286 42,876,969
INET ASSETS 80. 81.
82. Beginning of period 242,375,478 199,498,509
83. End of period $ 306,245,764 $ 242,375,478
IOTHER INFORMATION 85. 86.
84.Shares
87. Sold 7,686,940 6,527,797
88. Issued in reinvestment of distributions from: 1,234,432 1,106,058
Net investment income
89. Net realized gain 277,439 -
90. Redeemed (4,571,521) (3,978,942)
91. Net increase (decrease) 4,627,290 3,654,913
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
92. YEARS ENDED DECEMBER 31,
93. 1993 1992 1991 1990 1989
94.SELECTED PER-SHARE DATA
95.Net asset value, $ 10.590 $ 10.370 $ 9.880 $ 9.900 $ 9.660
beginning of period
96.Income from Investment .679 .693 .701 .701 .676
Operations
Net investment
income
97. Net realized and .679 .219 .489 (.020) .240
unrealized gain (loss)
on investments
98. Total from investment 1.358 .912 1.190 .681 .916
operations
99.Less Distributions (.679) (.693) (.701) (.701) (.676)
From net investment
income
100. From net realized gai (.140) - - - -
n
on investments
101. Total distributions (.819) (.693) (.701) (.701) (.676)
102.Redemption fees adde .001 .001 .001 - -
d to
paid in capital
103.Net asset value, $ 11.130 $ 10.590 $ 10.370 $ 9.880 $ 9.900
end of period
104.TOTAL RETURN 13.18% 9.11% 12.49% 7.20%(dagger) 9.80%(dagger)
105.RATIOS AND SUPPLEMENTAL DATA
106.Net assets, end of peri $ 306,246 $ 242,375 $ 199,499 $ 142,906 $ 104,202
od
(000 omitted)
107.Ratio of expenses to a .55% .55% .55% .60% .78%
verage
net assets
108.Ratio of expenses to a .55% .55% .55% .66%
verage .82%
net assets before expens
e
reductions
109.Ratio of net investment 6.13% 6.65% 6.96% 7.22% 6.90%
income to average net
assets
110.Portfolio turnover rate 38% 8% 6% 8% 23%
</TABLE>
(dagger) THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
SPARTAN PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance. Both the fund's
returns and yields would have been lower if Fidelity hadn't reimbursed
certain fund expenses.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan Pennsylvania
Municipal Money Market 2.21% 24.02% 37.89%
Consumer Price Index 2.75% 21.00% 33.15%
Average All Tax-Free
Money Market Fund 1.97% 21.67% 35.21%
CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, one year, five years or since the fund started on August 6,
1986. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, you would have $1,050. Comparing the fund's performance
to the consumer price index (CPI) helps show how your investment did
compared to inflation. To measure how the fund stacked up against its
peers, you can compare its return to the average all tax-free money market
fund's total return. This average currently reflects the performance of 338
tax-free money market funds tracked by IBC/Donoghue. (The periods covered
by the CPI and IBC/Donoghue numbers are the closest available match to
those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan Pennsylvania
Municipal Money Market 2.21% 4.40% 4.43%
Consumer Price Index 2.75% 3.89% 3.93%
Average All Tax-Free
Money Market Fund 1.97% 4.00% 4.16%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
YIELDS
12/31/92 3/31/93 6/30/93 9/30/93 12/31/93
Spartan Pennsylvania 3.07% 2.29% 2.01% 2.52% 2.49%
Municipal Money Market
Average All Tax-Free 2.71% 2.00% 1.83% 2.20% 2.16%
Money Market Fund
Spartan Pennsylvania 4.58% 3.68% 3.23% 4.05% 4.00%
Municipal Money Market -
Tax-equivalent
Average All Taxable 2.86% 2.66% 2.63% 2.65% 2.72%
Money Market Fund
Row: 1, Col: 1, Value: 3.07
Row: 1, Col: 2, Value: 2.72
Row: 2, Col: 1, Value: 2.29
Row: 2, Col: 2, Value: 2.0
Row: 3, Col: 1, Value: 2.01
Row: 3, Col: 2, Value: 1.83
Row: 4, Col: 1, Value: 2.52
Row: 4, Col: 2, Value: 2.2
Row: 5, Col: 1, Value: 2.49
Row: 5, Col: 2, Value: 2.16
Spartan
Pennsylvania
Municipal Money
Market
Average All Tax-Fre
e
Money Market Fund
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the average all tax-free money market fund. Or you
can look at the fund's tax-equivalent yield, which is based on a combined
effective 1993 federal and state income tax rate of 37.79%. The
tax-equivalent figures are useful in seeing how the fund stacked up against
the average taxable money market fund as tracked by IBC/Donoghue.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS REFLECT PAST RESULTS RATHER
THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
SPARTAN PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Deborah Watson,
Portfolio Manager of Spartan
Pennsylvania Municipal Money
Market Portfolio
Q. DEB, CAN YOU DESCRIBE THE ENVIRONMENT YOU'VE BEEN OPERATING IN FOR THE
LAST YEAR?
A. Sure. In terms of interest rates, there's not much to report. Tax-free
short-term rates took their cue from the federal funds rate, which held
steady at or near 3% all year. We encountered renewed inflation fears last
May, and again in late October. But both episodes were temporary, and so
did not significantly influence the way I managed the fund. In the absence
of major interest-rate swings, technical factors had a more noticeable
effect on my decision-making.
Q. IN WHAT WAY?
A. Like most states, Pennsylvania does the bulk of its borrowing in
mid-summer. The annual increase in supply generally presents a good buying
opportunity, and I anticipated that by gradually lowering the fund's
average maturity into the 40-day range by the beginning of June. Then, as
supply entered the market and interest rates remained stable, I bought
longer-term issues and extended the fund's average maturity again - to 80
days by the end of October. But supply was scarce, and by the end of the
fund's fiscal year in December, the average maturity had rolled back down
to 52 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on December 31, 1993 was 2.49%, compared to
3.07% at the end of last year, when technical factors bumped up the yield
temporarily. The latest tax-equivalent yield for investors in the 37.79%
combined federal and state income-tax bracket was 4.00%. Total return
during the year-long period was 2.21%. That beat the total return of the
average all tax-free money market fund tracked by IBC/Donoghue, which was
1.97%.
Q. WHY DID THE FUND DO SO MUCH BETTER THAN ITS PEERS?
A. There were several factors: successful interest-rate forecasting; a
51.6% stake in issues subject to the alternative minimum tax, which offer
more yield; and a 11.9% stake in some simple derivatives. The derivatives I
bought combine a long-term municipal bond with a "put," or an option to
sell to a third party, typically a bank. The end product is an investment
that pays a short-term variable interest rate and can be put on short
notice, usually seven days. It acts much like any other variable rate
demand note the fund might own, with one key difference: the yield is
slightly higher, a fact that has more to do with the added complexity of
these instruments than added investment risk.
Q. WHAT'S AHEAD FOR THE FUND?
A. As the economic conditions in Pennsylvania have been improving over the
past year, the pool of investment opportunities that meet our investment
standards has been expanding, which bodes well for the future. Overall, the
short-term tax-free market could be somewhat volatile in the months ahead.
I would expect the economy to continue showing sporadic signs of
improvement, leading to growing expectations that the Fed may move to
increase rates, perhaps before the end of the first quarter of calendar
1994. I've been taking a more defensive approach, and will probably
maintain an average maturity somewhere between 40 and 55 days.
FUND FACTS
GOAL: tax-free income and
stability by investing in
high-quality,
short-term Pennsylvania
municipal securities
START DATE: August 6, 1986
SIZE: as of December 31,
1993, over $240 million
MANAGER: Deborah Watson,
since 1989; manager, Spartan
Florida Municipal Money
Market Portfolio, since 1992;
Spartan California Municipal
Money Market Portfolios, since
1989; Fidelity California
Tax-Free Money Market Fund,
since 1988
(checkmark)
WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager is
expecting rates to fall. When
the average maturity is neutral,
the manager wants the
flexibility to respond to rising
rates, while still capturing a
portion of the higher yields
available from issues with
longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future tax
or other revenues and payable
from those specific sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face value
before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that can
be redeemed on short notice,
typically one or seven days.
VRDNs are useful in managing
the fund's average maturity
and liquidity.
SPARTAN PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
12/31/93 6/30/93 12/31/92
0 - 30 66.3 79.5 61.6
31 - 90 9.1 3.3 15.3
91 - 180 14.0 2.6 13.2
181 - 397 10.6 14.6 9.9
WEIGHTED AVERAGE MATURITY
12/31/93 6/30/93 12/31/92
Spartan Pennsylvania
Municipal Money Market 52 days 61 days 55 days
Average All Tax-Free
Money Market Fund* 62 days 55 days 59 days
ASSET ALLOCATION
AS OF 12/31/93 AS OF 6/30/93
Row: 1, Col: 1, Value: 62.3
Row: 1, Col: 2, Value: 11.4
Row: 1, Col: 3, Value: 9.800000000000001
Row: 1, Col: 4, Value: 15.1
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 60.0
Row: 1, Col: 2, Value: 18.2
Row: 1, Col: 3, Value: 10.4
Row: 1, Col: 4, Value: 4.6
Row: 1, Col: 5, Value: 6.8
Variable rate
demand notes
(VRDNs) 62.3%
Commercial
paper 11.4%
Tender bonds 9.8%
Municipal
notes 15.1%
Other 1.4%
Variable rate
demand notes
(VRDNs) 60.0%
Commercial
paper 18.2%
Tender bonds 10.4%
Municipal
notes 4.6%
Other 6.8%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(Registered trademark)
SPARTAN PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENTS/DECEMBER 31, 1993
(Showing Percentage of Total Value of Investments)
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PENNSYLVANIA - 100.0%
Allegheny County Hosp. Dev. Auth. Rev. Hlth. Ctr.
(Presbyterian Univ. Hosp.) Series1990 B, 3.05%,
(MBIA Insured), VRDN $ 500,000 $ 500,000 0172894U
Allegheny County Hosp. Dev. Auth. Rev. (St. Margaret
Mem. Hosp.) Series 1992 A, 3.35%,
LOC Mellon Bank, VRDN 9,700,000 9,700,000 0172897L
Allegheny County Port Auth. RAN 2.90% 8/1/94,
LOC Pittsburgh Nat'l Bank 5,000,000 5,000,000 017329AJ
Allentown Multi-Family Housing (Arcadia Assoc. Proj.)
Series 1990, 3.15%, LOC Sumitomo Trust & Banking,
VRDN 2,300,000 2,300,000 018469AB
Bucks County Ind. Dev. Auth. (PA Associates Proj.)
Series 1993, 3.65%, LOC Meridian Bank, VRDN (b) 1,715,000 1,715,000
118612GP
Cambria County Ind. Dev. Auth. Resource Recovery Rev.
(Cambria Cogen. Co. Proj.) Series 1989 V-1, 3.25%,
LOC Fuji Bank, VRDN (b) 5,000,000 5,000,000 132046AA
Carbon County Ind. Dev. Auth. Resource Recovery Rev.
(Panther Creek Partners Proj.), VT: (b)
Series 1990 A, 2.60% 2/25/94,
LOC Nat'l Westminster Bank 2,400,000 2,400,000 140991EF
Series1991 A, 2.35% 1/27/94,
LOC Nat'l Westminster 2,000,000 2,000,000 140991EM
Series 1991 A, 2.65% 2/28/94,
LOC Nat'l Westminster Bank 4,200,000 4,200,000 140991EG
Delaware Valley Reg. Fin. Auth. Local Gov't. Rev.,
VRDN:
Series 1985 A, 3.35%, LOC Marine Midland Bank 1,600,000 1,600,000
246579AD
Series 1985 B, 3.35%, LOC Marine Midland Bank 1,500,000 1,500,000
246579AE
Series 1986, 3.35%, LOC Marine Midland Bank 6,200,000 6,200,000
246579AJ
Emmaus Gen. Auth. Rev., Series 1989 H, 3.40%, VRDN 700,000 700,000
291380BT
Erie County Ind. Dev. Auth. Rev. (Carlisle Corp. Proj.)
Series 1993, 3.25%, LOC Trust Company Bank,
VRDN (b) 1,000,000 1,000,000 295206HY
Hazelton Area Ind. Dev. Auth. Energy Dev. Rev.
(Continental Energy Assoc. Proj.) Series 1986, 3.35%,
LOC Swiss Bank Corp., VRDN (b) 8,500,000 8,500,000 421875AA
Lehigh County Ind. Dev. Auth. Poll. Cont. Rev., VRDN:
(Allegheny Elec. Co.):
Series 1984 A, 3% LOC Rabobank Nederland 600,000 600,000 524808AH
Series 1984 B, 3%, LOC Rabobank Nederland 1,080,000 1,080,000
524808AK
Mercer County Ind. Dev. Auth. Dev. Rev.
(Penntecq Inc. Proj.) Series 1990, 3.20%,
LOC Dai-Ichi Kangyo Bank, VRDN (b) 4,000,000 4,000,000 587870AQ
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Montgomery County Higher Ed. & Hlth. (Pottstown
Healthcare Corp. Proj.) Series 1992, 3.275%,
LOC Meridian Bank, VRDN $ 200,000 $ 200,000 613603HY
Montgomery County Ind. Dev. Auth. Rev.
(Sirius Dev. Assoc. Proj.) 3.40%,
LOC Provident Nat'l. Bank, VRDN (b) 1,500,000 1,500,000 613609KJ
Montgomery County Ind. Dev. Auth. (Limited
Partnership Proj.) Series 1992, 3.65%,
LOC Meridian Bank, VRDN (b) 2,080,000 2,080,000 613609MQ
North Lebanon Township (Grace Commty. Inc. Proj.)
Series 1992 B, 3.275%, LOC Meridian Bank, VRDN 3,755,000 3,755,000
660446AQ
Northampton County Ind. Dev. Auth.
(Citizens Utilities Company Proj.)
Series 1991, 2.70% 1/20/94, VT (b) 2,950,000 2,950,000 6635499S
Northumberland County Ind. Dev. Auth Rev., VRDN: (b)
(Foster Wheeler Carmel Proj.):
Series 1987 A, 3.25%, LOC Union Bank of
Switzerland 10,850,000 10,850,000 66707MAA
Series 1987 B, 3.25%,LOC Union Bank of
Switzerland 1,800,000 1,800,000 66707MAB
Pennsylvania Dev. Auth. Rev. (Continental Energy Assoc. Proj.)
Series 1986, 3.20%, LOC Swiss Bank, VRDN 2,500,000 2,500,000 708704AD
Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN: (b)
(Dodge-Regupol, Inc. Proj.) Series D-4, 3.40%,
LOC Pittsburgh Nat'l. Bank 2,000,000 2,000,000 708684CY
(Henry Molded Prod. Inc.) Series 1992 A-4, 3.40%,
LOC Pittsburgh Nat'l. Bank 1,000,000 1,000,000 708684FD
(Payne Printery Proj.) Series 1989 B-8, 3.40%,
LOC Pittsburgh Nat'l. Bank 375,000 375,000 708684AG
(Port Erie Plastics Proj.) Series 1989 D-9, 3.40%,
LOC Pittsburgh Nat'l. Bank 1,110,000 1,110,000 708684AS
(Respironics Inc. Proj.), 3.40%,
LOC Pittsburgh Nat'l. Bank 900,000 900,000 708684BC
(Suntory Water Group Proj.) Series1992 D, 3.25%
LOC Wachovia Bank & Trust, 4,900,000 4,900,000 708688AS
(The Babcock & Wilcox Co. Proj.) Series 1989 A-2,
3.40%, LOC Pittsburgh Nat'l. Bank 4,925,000 4,925,000 708688AM
Pennsylvania Econ. Dev. Fin. Auth. Solid Waste
Disposal Rev,VT.: (b)
(Inter-Pwr./Ahlcon Partner Proj.):
Series 1992 A, 2.70% 1/28/94,
LOC Banque Paribas 2,000,000 2,000,000 7086929Q
Series 1992 A, 2.70% 2/7/94,
LOC Banque Paribas 1,500,000 1,500,000 7086929N
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Pennsylvania Energy Dev. Auth. Rev. (B &W Edensburg
Proj.) Series 1986, 3.30%, LOC Swiss Bank Corp.,
VRDN (b) $ 2,350,000 $ 2,350,000 708704AB
Pennsylvania Gen. Oblig. TAN 3.25% 6/30/94 10,000,000 10,026,071
709138E4
Pennsylvania Higher Ed. Assistance Agcy. (Student Loan)
Series 1988 A, 3.05%, LOC Fuji Bank, VRDN (b) 13,100,000 13,100,000
709163AF
Pennsylvania Higher Ed. Facs. Auth. Rev., OT:
(Thomas Jefferson Univ.) :
Series 1992 B, 2.70% 6/1/94, SBPA Credit Suisse 2,100,000 2,100,000
709174MX
Series 1992 C, 2.70% 6/1/94, SBPA Credit Suisse 12,900,000 12,900,000
709174MY
Pennsylvania Higher Ed. Loan Rev. Bonds
(Med. College of PA.), 12% 3/1/94 1,000,000 1,044,927 709170YC
Pennsylvania Housing Fin. Agcy. Residential Dev. Rev.
Custodial Receipts (Section 8 Assisted Capital), 3.10%,
(Liquidity Enhancement Citibank) (c) 4,005,000 4,005,000 708791F9
Pennsylvania Infrastructure Investment Auth. (Pennvest
Loan Pool Program) Series 1993, 2.75% 3/2/94,
SBPA PNC Bank, MT 3,000,000 3,000,476 708836CX
Pennsylvania Municipal Custodial Receipts: (c)
Series 1991 A-16, 3.30%, 9,490,000 9,490,000 55377EAH
Series 1993 A-38, 3.30%,
(Liquidity Enhancement Sakura Bank.) 4,330,000 4,330,000 709144DT
Pennsylvania State Gen. Oblig. Bond Rfdg. & Projs.
Series B, 6.10% 1/1/94, (MBIA Insured) 1,900,000 1,900,000 709138ZC
Pennsylvania State Higher Ed. Assistance Agcy.
(Student Loan) 2.95%, LOC Union Bank of
Switzerland, VRDN (b) 5,300,000 5,300,000 709163AG
Pennsylvania State University BAN, 3% 5/26/94 5,800,000 5,808,410
709235HD
Philadelphia Hosp. & Higher Ed. Auth. (Frankford Hosp.)
3.05%, LOC Mellon Bank, VRDN 4,400,000 4,400,000 717903RW
Philadelphia Ind. Dev. Auth. Commercial Dev. Rev.
(Airport Hotel Proj.) Series 1990, 3.25% LOC Citibank,
VRDN (b) 2,900,000 2,900,000 717818ML
Philadelphia Ind. Dev. Auth. Rev. (1411 Assoc. Proj.) 3.30%,
LOC Dai-Ichi Kangyo Bank, VRDN 3,900,000 3,900,000 717818FS
Philadelphia Ind. Dev. Auth. Multi-Family Hsg. Rev. Rfdg.
Bonds. (Harbor View Towers Proj.) Series 1993, 3.25%
LOC Sumitomo Bank,VRDN 1,000,000 1,000,000 717908AA
Philadelphia School Dist. Gen. Oblig. Partnership Ctfs.
3.40%, (Liquidity Enhancement Banque
Nationale De Paris) (c) 8,550,000 8,550,000 717880E3
Philadelphia School. Dist. Gen. Oblig. Rfdg. Tender Option
Bonds, 3%, (Liquidity Enhancement Morgan Guaranty
Trust Co. NY) (c) 2,000,000 2,000,000 717880E2
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Philadelphia School Dist. Bonds Series B, 5.75% 7/1/94,
(MBIA Insured) $ 2,165,000 $ 2,195,728 717880YS
Philadelphia School Dist. TRAN, Series 1993-94, 3.625%
6/30/94 8,000,000 8,020,134 717880E5
Philadelphia TRAN, Series B, 3.25% 6/15/94,
LOC Corestates Bank 7,000,000 7,015,400 717811WR
Pittsburgh Urban Redev. Auth. Mtg. Rev., MT: (b)
Series 1992 A, 2.85% 6/1/94, GIC Barclays Bank 2,795,000 2,795,000
725299TD
Series 1992 B, 2.85% 6/1/94, GIC Barclays Bank 965,000 965,000
725299TE
Series 1992 C, 2.85% 6/1/94, GIC Barclays Bank 1,575,000 1,575,000
725299TF
Schuylkill County Ind. Dev. Auth. Resource Recovery Rev.
(Westwood Energy Prop.) Series 1985, 3.80%,
LOC Fuji Bank, VRDN 3,500,000 3,500,000 80839TAA
Venango Ind. Dev. Auth. Resource Recovery Rev., VT: (b)
(Scrubgrass Proj.):
Series 1990 A:
2.25% 2/18/94, LOC Nat'l Westminster Bank 4,500,000 4,500,000
92299BBK
2.60% 2/24/94, LOC Nat'l Westminster Bank 5,050,000 5,050,000
92299BBH
Series 1990 B, 2.35% 1/26/94,
LOC Nat'l Westminster Bank 2,550,000 2,550,000 92299BBL
Washington County Ind. Dev. Auth. Ind. Dev. Rev.
(Mac Plastics, Inc. Proj.) Series 1990, 3.45%,
LOC Nat'l. City Bank, VRDN (b) 805,000 805,000 938597AH
TOTAL INVESTMENTS - 100% $ 239,416,146
Total Cost for Income Tax Purposes $ 239,416,146
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
MT - Mandatory Tender
OT - Optional Tender
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
VT - Variable Tender
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(c) Provide evidence of ownership in an underlying pool of municipal bonds.
INCOME TAX INFORMATION
At December 31, 1993, the fund had a capital loss carryforward of
approximately $9,500 of which $4,600, and $4,900 will expire on December
31, 1997 and 1998, respectively.
SPARTAN PENNSYLVANIA MUNICIPAL MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1993
IASSETS 111. 112.
113.Investment in securities, at value (Note 1) - 114. $ 239,416,146
See accompanying schedule
115.Cash 116. 2,067,523
117.Interest receivable 118. 1,407,493
119. 120.TOTAL ASSETS 121. 242,891,162
ILIABILITIES 122. 123.
124.Payable for investments purchased $ 1,800,325 125.
126.Dividends payable 13,928 127.
128.Accrued management fee 93,553 129.
130. 131.TOTAL LIABILITIES 132. 1,907,806
133.INET ASSETS 134. $ 240,983,356
135.Net Assets consist of: 136. 137.
138.Paid in capital 139. $ 240,992,908
140.Accumulated net realized gain (loss) on 141. (9,552)
investments
142.INET ASSETS, for 240,990,957 shares outstanding 143. $ 240,983,356
144.INET ASSET VALUE, offering price and redemption 145. $1.00
price per share ($240,983,356 (divided by) 240,990,957 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1993
I146.INTEREST INCOME 147. $ 5,894,216
IEXPENSES 148. 149.
150.Management fee (Note 4) $ 1,092,498 151.
152.Non-interested trustees' compensation 1,549 153.
154. 155.TOTAL EXPENSES 156. 1,094,047
157.158.NET INTEREST INCOME 159. 4,800,169
IREALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 161. 2,251
(NOTE 1)
160.Net realized gain (loss) on investment securities
162.Increase (decrease) in net unrealized gain from 163. (4,269)
accretion
of market discount
164.165.NET GAIN (LOSS) 166. (2,018)
167.168.NET INCREASE IN NET ASSETS RESULTING FROM 169. $ 4,798,151
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED DECEMBER 31,
1993 1992
IINCREASE (DECREASE) IN NET ASSETS
170.Operations $ 4,800,169 $ 7,178,538
Net interest income
171. Net realized gain (loss) on investments 2,251 10,111
172. Increase (decrease) in net unrealized gain from (4,269) 4,269
accretion of market discount
173. 4,798,151 7,192,918
174.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM
OPERATIONS
175.Dividends to shareholders from net interest income (4,800,169) (7,178,538)
176.Share transactions at net asset value of $1.00 per 176,936,625 180,419,164
share
Proceeds from sales of shares
177. Reinvestment of dividends from net interest 4,536,853 6,791,752
income
178. Cost of shares redeemed (183,823,236) (233,716,275)
179. (2,349,758) (46,505,359)
Net increase (decrease) in net assets and shares
resulting from share transactions
180. (2,351,776) (46,490,979)
181.TOTAL INCREASE (DECREASE) IN NET ASSETS
INET ASSETS 182. 183.
184. Beginning of period 243,335,132 289,826,111
185. End of period $ 240,983,356 $ 243,335,132
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
186. YEARS ENDED DECEMBER 31,
187. 1993 1992 1991 1990 1989
188.SELECTED PER-SHARE DATA
189.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period
190.Income from Inv .022 .029 .045 .059 .062
estment Operations
Net interest
income
191. Dividends from (.022) (.029) (.045) (.059) (.062)
net
interest income
192.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
193.TOTAL RETURN 2.21% 2.90%(dagger) 4.55%(dagger) 6.05%(dagger) 6.35%(dagger)
194.RATIOS AND SUPPLEMENTAL DAT
A
195.Net assets, end $ 240,983 $ 243,335 $ 289,826 $ 319,982 $ 176,998
of
period (000
omitted)
196.Ratio of expense .50% .47% .34% .13% .28%
s to
average net
assets
197.Ratio of expense .50% .50% .50% .57% .73%
s to
average net assets
before expense
reductions
198.Ratio of net inter 2.19% 2.88% 4.47% 5.92% 6.17%
est
income to average
net assets
</TABLE>
(dagger) 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 December 31, 1993
1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Pennsylvania Municipal High Yield Portfolio (the high yield fund)
is a fund of Fidelity Municipal Trust. Spartan Pennsylvania Municipal Money
Market Portfolio (the money market fund) is a fund of Fidelity Municipal
Trust II. Each trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company. Fidelity Municipal Trust and Fidelity Municipal Trust II (the
trusts) are organized as a Massachusetts and a Delaware business trust,
respectively. Each fund is authorized to issue an unlimited number of
shares. The following summarizes the significant accounting policies of the
money market fund and the high yield fund:
SECURITY VALUATION.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
HIGH YIELD FUND. 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.
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
municipal money market fund, accretion of market discount represents
unrealized gain until realized at the time of a security disposition or
maturity.
EXPENSES. Most expenses of each 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
losses deferred due to futures and options transactions.
REDEMPTION FEES. Shares held in the high yield 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.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective January
1, 1993, the funds 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 funds 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 December 31, 1992 have been restated as follows:
MONEY MARKET FUND. Paid in capital and accumulated net realized loss on
investments increased by $1,951.
HIGH YIELD FUND. Paid in capital and accumulated net realized loss on
investments decreased by $30,382.
2. OPERATING POLICIES.
FUTURES CONTRACTS AND OPTIONS. The high yield fund may invest in futures
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 extent of the involvement the high yield 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.
HIGH YIELD FUND. Purchases and sales of securities, other than short-term
securities, aggregated $148,081,606 and $104,779,668, respectively. The
market value of futures contracts opened and closed amounted to
$107,776,140 and $107,776,140, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management
& Research Company (FMR) pays all expenses except the compensation of
the non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .50% and .55% of average net assets
for the money market and high yield funds, respectively.
FMR also bears the cost of providing shareholder services to each fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $14,534 and $5,050 for the money market and
high yield funds, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect, and after reducing
the fee for any payments by FMR pursuant to the fund's Distribution and
Service Plan.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Municipal
Trust and Fidelity Municipal Trust II
and the Shareholders of the Spartan
Pennsylvania Municipal High Yield
Portfolio and Spartan Pennsylvania
Municipal Money Market Portfolio:
We have audited the accompanying statements of assets and liabilities of
Spartan Pennsylvania Municipal High Yield Portfolio, a portfolio of the
Fidelity Municipal Trust, and Spartan Pennsylvania Municipal Money Market
Portfolio, a portfolio of Fidelity Municipal Trust II, including the
schedules of portfolio investments, as of December 31, 1993, the related
statements 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 five years in the period then ended.
These financial statements and financial highlights are the responsibility
of the Funds' 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 December 31, 1993, 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 Spartan Pennsylvania Municipal High Yield Portfolio and Spartan
Municipal Money Market Portfolio as of December 31, 1993, the results of
their operations for the year then ended, the changes in their net assets
for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND
Boston, Massachusetts
January 28, 1994
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 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
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
32 West Central Boulevard
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
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
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8300 Boone Boulevard
Vienna, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Deborah F. Watson, Vice President
MONEY MARKET FUND
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
United Missouri Bank, N.A.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
