FIDELITY
(registered trademark)
MASSACHUSETTS
TAX-FREE
PORTFOLIOS
SEMIANNUAL REPORT
JULY 31, 1994
CONTENTS
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PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
FIDELITY MASSACHUSETTS
TAX-FREE 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 past six
months
and one year.
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.
FIDELITY MASSACHUSETTS
TAX-FREE MONEY MARKET PORTFOLIO
PERFORMANCE 28 How the fund has done over time.
FUND TALK 30 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 32 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 33 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 39 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 43 Notes to the financial statements.
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THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS 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 FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The first half of the year 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 original 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 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 choose to 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 BuilderSM.
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
FIDELITY MASSACHUSETTS TAX-FREE 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). You can also look at the fund's income.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Massachusetts Tax-Free High Yield -3.72% 2.52% 46.86% 153.25%
Portfolio
Lehman Brothers Municipal Bond Index -3.80% 1.87% 46.68% 169.84%
Average Massachusetts Tax-Exempt
Municipal Bond Fund -4.60% 1.03% 43.47% 145.18%
Consumer Price Index (CPI) 1.50% 2.77% 19.29% 42.56%
CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, one year, five years, or ten years. 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 Massachusetts tax-exempt municipal bond
fund, which reflects the performance of 39 Massachusetts 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.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Massachusetts Tax-Free High Yield 2.52% 7.99% 9.74%
Portfolio
Lehman Brothers Municipal Bond Index 1.87% 7.96% 10.44%
Average Massachusetts Tax-Exempt
Municipal Bond Fund 1.03% 7.48% 9.38%
Consumer Price Index 2.77% 3.59% 3.61%
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
Mass Free High Yield Municipal Bond Index (SH15)
07/31/84 10000.00 10000.00
08/31/84 10133.86 10224.30
09/30/84 10068.46 10155.59
10/31/84 10191.18 10283.05
11/30/84 10326.91 10434.41
12/31/84 10560.07 10629.95
01/31/85 11141.39 11243.62
02/28/85 10922.35 10963.09
03/31/85 11052.19 11057.70
04/30/85 11312.69 11462.41
05/31/85 11708.44 11860.39
06/30/85 11893.15 11984.81
07/31/85 11988.04 12008.30
08/31/85 11916.27 11924.48
09/30/85 11761.61 11804.88
10/31/85 12102.70 12209.43
11/30/85 12442.94 12647.38
12/31/85 12633.39 12758.55
01/31/86 13273.87 13510.03
02/28/86 13761.65 14045.84
03/31/86 13844.11 14050.33
04/30/86 13770.92 14061.01
05/31/86 13543.99 13832.10
06/30/86 13642.83 13964.06
07/31/86 13764.36 14048.82
08/31/86 14279.81 14677.78
09/30/86 14315.16 14714.62
10/31/86 14546.63 14968.75
11/30/86 14750.81 15265.28
12/31/86 14766.89 15223.14
01/31/87 15085.75 15681.51
02/28/87 15200.95 15758.67
03/31/87 15152.20 15591.62
04/30/87 14389.50 14809.24
05/31/87 14206.04 14735.78
06/30/87 14450.38 15168.43
07/31/87 14658.95 15323.14
08/31/87 14710.72 15357.62
09/30/87 14113.56 14791.38
10/31/87 13925.32 14843.75
11/30/87 14285.98 15231.32
12/31/87 14580.87 15452.32
01/31/88 15040.07 16002.73
02/29/88 15212.92 16171.88
03/31/88 14947.42 15983.48
04/30/88 15069.21 16104.96
05/31/88 15149.79 16058.41
06/30/88 15313.51 16293.35
07/31/88 15421.85 16399.58
08/31/88 15474.85 16414.01
09/30/88 15700.11 16711.10
10/31/88 15983.72 17006.06
11/30/88 15891.55 16850.28
12/31/88 16136.78 17022.66
01/31/89 16367.75 17374.69
02/28/89 16260.53 17176.44
03/31/89 16272.30 17135.39
04/30/89 16672.08 17542.18
05/31/89 16968.80 17906.54
06/30/89 17113.58 18149.71
07/31/89 17244.87 18396.72
08/31/89 17177.97 18216.62
09/30/89 17112.26 18161.97
10/31/89 17274.37 18383.55
11/30/89 17519.05 18705.26
12/31/89 17628.87 18858.64
01/31/90 17542.48 18770.01
02/28/90 17759.69 18937.06
03/31/90 17790.16 18942.74
04/30/90 17556.58 18806.35
05/31/90 17938.52 19216.33
06/30/90 18126.48 19385.43
07/31/90 18382.67 19670.40
08/31/90 18162.17 19385.18
09/30/90 18222.99 19396.81
10/31/90 18285.20 19747.89
11/30/90 18850.27 20144.83
12/31/90 18930.64 20233.46
01/31/91 19164.55 20504.59
02/28/91 19311.55 20682.98
03/31/91 19407.75 20691.25
04/30/91 19676.74 20966.45
05/31/91 19874.97 21153.05
06/30/91 19914.21 21131.90
07/31/91 20202.78 21389.71
08/31/91 20386.84 21672.05
09/30/91 20574.25 21953.79
10/31/91 20757.64 22151.37
11/30/91 20812.61 22213.39
12/31/91 21070.86 22690.98
01/31/92 21254.17 22743.17
02/29/92 21321.89 22749.99
03/31/92 21342.92 22759.09
04/30/92 21532.47 22961.65
05/31/92 21767.47 23232.60
06/30/92 22129.47 23622.91
07/31/92 22724.47 24331.59
08/31/92 22438.58 24093.14
09/30/92 22629.62 24249.75
10/31/92 22247.32 24012.10
11/30/92 22810.41 24441.92
12/31/92 23028.05 24691.22
01/31/93 23366.63 24977.64
02/28/93 24170.54 25881.83
03/31/93 23951.89 25607.49
04/30/93 24171.98 25866.12
05/31/93 24335.94 26010.97
06/30/93 24719.33 26445.36
07/31/93 24702.09 26479.73
08/31/93 25217.53 27030.51
09/30/93 25648.27 27338.66
10/31/93 25711.30 27390.60
11/30/93 25500.06 27149.57
12/31/93 26003.48 27722.42
01/31/94 26303.98 28038.46
02/28/94 25753.56 27312.26
03/31/94 24645.31 26200.65
04/30/94 24728.36 26423.36
05/31/94 24971.80 26653.24
06/30/94 24855.51 26498.65
07/31/94 25325.25 26983.58
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Massachusetts Tax-Free High Yield Portfolio ten years ago on July 31, 1984.
As the chart shows, by July 31, 1994, the value of your investment would
have grown to $25,325 - a 153.25% increase on your initial investment. 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 $26,984- a 169.84% 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
SIX MONT
HS
ENDED YEARS ENDED JANUARY 31,
JULY 31,
1994 1994 1993 1992 1991 1990
Dividend returns 2.93% 6.32% 6.67% 7.08% 7.55% 7.45%
Capital appreciation
returns -6.65% 6.25% 3.27% 3.82% 1.70% -0.27%
Total returns -3.72% 12.57% 9.94% 10.90% 9.25% 7.18%
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.
DIVIDENDS AND YIELD
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PERIODS ENDED JULY 31, 1994 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 6.02(cents) 35.11(cents) 70.94(cents)
Annualized dividend rate 6.35% 6.21% 6.00%
30-day annualized yield 6.05% - -
30-day annualized tax-equivalent yield 10.74% - -
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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 $11.17 over
the past month, $11.40 over the past six months and $11.82 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 43.68% combined 1994 federal and Massachusetts state tax bracket.
FIDELITY MASSACHUSETTS TAX-FREE HIGH YIELD PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Guy Wickwire,
Portfolio Manager of Fidelity
Massachusetts Tax-Free High Yield
Portfolio
Q. GUY, HOW HAS THE FUND PERFORMED?
A. It was a rough period for both the municipal bond market and the fund.
For the six months ended July 31, 1994, the fund had a total return of
- -3.72.%. That compares to the average Massachusetts municipal bond fund,
which returned -4.60% for the same period, according to Lipper Analytical
Services. For the 12 months ended July 31, 1994, the fund returned 2.52%,
which beat the average fund's return of 1.03%, again according to Lipper.
Q. WHAT ACCOUNTS FOR THE MUNICIPAL BOND MARKET'S PERFORMANCE OVER THE PAST
SIX MONTHS?
A. The market fell mainly because it feared higher inflation. Late last
year, inflation worries caused rates to rise slightly. Rates moved within a
narrow range through the end of January. During this period, the Federal
Reserve Board seemed content to keep the federal funds rate - the rate
banks charge each other for overnight loans - at 3.00%, where it had been
since September 1992. On February 4, the Fed reversed that policy, raising
the fed funds rate to 3.25%. And through May, the Fed moved three more
times, raising the federal funds rate to 4.25%. These rate hikes were a
preemptive strike against inflation. The economy appeared to be heating up
and the Fed seemed determined to keep inflation in check. However, the move
still worried bond investors, who dislike any mention of inflation because
it can erode the value of their bonds' interest income, which is paid at a
fixed rate. As a result, bond prices fell from February through May. June
was more or less flat; during the first couple of weeks, the market
rallied, but then fell later in the month when investors became concerned
about the declining U.S. dollar. In July, the market bounced back slightly
based on some evidence that indicated the economy's growth rate was
slowing.
Q. WHY DID THE FUND DROP LESS THAN THE AVERAGE MASSACHUSETTS FUND?
A. The primary reason was that the fund had a shorter duration during much
of the period than many of its competitors. Duration is a measure of how
volatile the fund's price is when rates move up or down. The shorter the
duration, the less sensitive the fund's price is to changes in interest
rates. Over the past 10 years, we've accumulated some bonds that pay higher
yields - 9% and 10% - than some more recently issued bonds. That is, in
part, why the fund is consistently one of the highest yielding funds in its
category. As time went by, the durations of these older bonds shortened. As
a result, when rates rose, the fund's share price didn't fall as much as
many of its competitors. However, my view is that long-term interest rates
may eventually fall from current levels, so I have been trying to lengthen
the fund's duration during the past six months. That, in turn, has
increased its sensitivity to interest rate moves. So to generally help
reduce the fund's volatility, I've invested in futures contracts.
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. AREN'T FUTURES ONE
OF THE FINANCIAL ARRANGEMENTS KNOWN AS A DERIVATIVE, AND DO YOU USE OTHERS?
A. Yes, a future is one type of 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 very long-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 CHANGES HAVE YOU MADE TO THE FUND DURING THE PAST SIX MONTHS?
A. In terms of sector concentrations, I haven't made any significant
changes. Health care bonds are still the fund's largest sector investment
at 35.0% at the end of July. They're attractive, in part, because they
offer relatively high yields. State and local general obligation bonds -
which are backed by the taxing power of the issuer - made up the fund's
second largest concentration at 12.5% of investments.
Q. WHAT'S AHEAD FOR MASSACHUSETTS MUNICIPALS?
A. Despite the state's boom and bust cycles in the 1980s, the state's
economy appears to be recovering on a par with the nation as a whole.
That's certainly a lot better than where it stood just a couple of years
ago. Turning to the Massachusetts municipal market, I think there are some
encouraging signs. In 1993, there was a record amount of issuance of
Massachusetts municipal bonds. Of those, 85% of the long-term bonds issued
were refundings, or the refinancing of more expensive, older debt at
then-lower interest rates. That figure was the highest, as a percentage, of
any state in the country. In 1994, new issuance is way down. If investors
gain confidence in the bond market again, a scarcity of Massachusetts bonds
could quickly develop, and help boost prices.
Q. WHAT SHOULD WE EXPECT OVER THE NEXT SEVERAL MONTHS?
A. I believe that eventually the economy will slow, and inflation won't be
a problem. Retail sales are slowing and auto sales have fallen from 1993's
torrid pace. I'm not suggesting that we will go back into a recession,
merely that the growth rate will slow. However, over the short-term I do
expect that the market will continue to be volatile until we see some
definitive, sustainable signs that growth is slowing. So for now, my
strategy will most likely remain the same:
I'll seek the best relative value among bonds, selling those that have
peaked and buying those that offer the potential to do well. Since I
believe that inflation won't be much of a problem in the second half of the
year, I'll attempt to lengthen the fund's duration, and use futures and
cash to hedge the fund against short-term volatility as market conditions
warrant.
FUND FACTS
GOAL: to provide high current
income exempt from federal
and Massachusetts state
income taxes
START DATE: November 10,
1983
SIZE: as of July 31, 1994,
more than $1.1 billion
MANAGER: Guy Wickwire,
since November 1983;
manager,
Fidelity Insured Tax-Free
Portfolio, since October,
1993;
Fidelity High Yield Tax-Free
Portfolio, 1981 to 1993;
Fidelity Advisor High Income
Municipal Portfolio, 1987 to
1992; joined Fidelity in 1981
(checkmark)
GUY WICKWIRE'S OUTLOOK FOR THE
MUNICIPAL MARKET:
"The long-term underlying
economic growth rate
averages about 2%. In the
past, nearly every time we've
had economic expansion with
growth that exceeds that
level, we've had higher
inflation. The municipal bond
market seems to be worried
that history will repeat itself
and that the current economic
expansion will cause higher
inflation. Inflation is the most
important factor that affects
bond prices. In my view, this
economic recovery will
continue to be quite moderate
and won't ignite inflation. But
until those fears are calmed,
the market could remain
volatile. Eventually, positive
supply and demand factors
should work in municipals'
favor. The supply of new
bonds issued in 1994 is about
40% less than in 1993. That
lower supply should help
support municipal bond prices
once the market settles."
(medium solid bullet) The fund's duration -
which measures sensitivity to
interest rate changes - was
9.1 years
at the end of July.
(medium solid bullet) Health care bonds were
the fund's largest sector
concentration at 35.0% of
investments as of July 31,
1994. These bonds are
attractive, in part, because of
their relatively higher yields.
FIDELITY MASSACHUSETTS TAX-FREE HIGH YIELD PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF JULY 31, 1994
% OF FUND'S INVESTMENT % OF FUND'S INVESTMENT
S S
IN THESE SECTORS
6 MONTHS AGO
Health Care 35.0 30.2
General Obligation 12.5 12.4
Education 10.9 12.0
Water & Sewer 10.0 11.0
Transportation 7.8 7.3
AVERAGE YEARS TO MATURITY AS OF JULY 31, 1994
6 MONTHS AGO
Years 20.1 19.9
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 JULY 31, 1994
6 MONTHS AGO
Years 9.1 7.9
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 JULY 31, 1994
(MOODY'S RATINGS) % OF FUND'S INVESTMENTS
Aaa 23.9%
Aa, A 47.5%
Baa 8.9%
Ba or B 2.5%
Non-rated 17.0%
Short-term investments 0.2%
Row: 1, Col: 1, Value: 23.9
Row: 1, Col: 2, Value: 47.5
Row: 1, Col: 3, Value: 8.9
Row: 1, Col: 4, Value: 2.5
Row: 1, Col: 5, Value: 17.0
Row: 1, Col: 6, Value: 1.0
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED
DEBT SECURITIES THAT ARE EQUIVALENT TO BA AND BELOW AT JULY 31, 1994
ACCOUNT FOR 11.9% OF THE FUND'S INVESTMENTS.
FIDELITY MASSACHUSETTS TAX-FREE HIGH YIELD PORTFOLIO
INVESTMENTS JULY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 99.8%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - 99.5%
Amherst Gen. Oblig.:
6.50% 1/15/08 Aa $ 795,000 $ 847,669
6.50% 1/15/09 Aa 770,000 805,613
6.50% 1/15/10 Aa 750,000 784,688
6.50% 1/15/11 Aa 695,000 727,144
Ashburnham & Westminster Reg'l. School
Dist. 6% 12/15/13, (MBIA Insured) Aaa 1,000,000 982,500
Barnstable Ind. Dev. Fing. Auth. Ind. Dev.
Rev. (Whitehall Pavilion Health Proj.)
10.125% 2/15/26, (FHA Insured) A 3,115,000 3,212,344
Bellingham Gen. Oblig.:
7.50% 7/1/06 A 310,000 349,913
7.50% 7/1/07 A 310,000 349,913
7.50% 7/1/08 A 310,000 349,913
7.50% 7/1/09 A 310,000 347,588
7.50% 7/1/10 A 310,000 347,588
7.50% 7/1/11 A 300,000 336,375
Boston Econ. Dev. & Ind. Corp.
(Boston Army Base 1983 Proj.)
6.25% 8/1/03 AA 5,220,000 5,343,975
Boston Hsg. Dev. Corp. Mtg. Rev. Rfdg.
Series A, Section 8, 5.15% 7/1/08
(FHA Guaranteed) (MBIA Insured) Aaa 3,510,000 3,281,850
Boston Ind. Dev. Fing. Auth. Ind. Rev.:
(Massachusetts College of Pharmacy)
5.25% 10/1/26 AAA 1,000,000 836,250
(Massachusetts College of Pharmacy Proj. A)
5.25% 10/1/14 AAA 2,400,000 2,100,000
Boston Ind. Dev. Rev. (North End Commty.
Nursing Home) 11.45% 3/15/25
(FHA Guaranteed) AA 4,865,000 5,710,294
Boston Rev. Rfdg. (Boston City Hosp.)
Series B, 5.75% 2/15/23
(FHA Guaranteed) Aa 1,000,000 920,000
Boston Wtr. & Swr. Commission Gen. Sr.
Series A:
6.10% 11/1/07 A 2,000,000 2,030,000
5.75% 11/1/13 A 7,025,000 6,647,406
5.25% 11/1/19 A 27,500,000 24,096,875
Boston Wtr. & Swr. Commission Rev. Gen.
Series 1984 A, 7% 1/1/11 A 500,000 517,095
Bourne Gen. Oblig. Unltd. Tax
(Land Acquisition Loan):
8% 12/15/04 Baa 290,000 328,788
8% 12/15/05 Baa 290,000 330,238
8% 12/15/06 Baa 290,000 329,875
8% 12/15/07 Baa 290,000 329,150
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Brockton Gen. Oblig.:
7.75% 12/15/96 Baa $ 4,500,000 $ 4,651,875
6.125% 6/15/18 Baa 1,000,000 955,000
Brockton Multi-Family 7.375% 9/1/24
(FNMA Coll.) AAA 8,390,000 9,249,975
Dedham-Westwood Wtr. Dist. Rfdg.:
5.10% 10/15/12 (MBIA Insured) Aaa 1,000,000 890,000
5.15% 10/15/16 (MBIA Insured) Aaa 1,250,000 1,098,438
Dighton & Rehoboth Reg'l. School Dist.:
5.40% 5/15/10 (AMBAC Insured) Aaa 385,000 357,569
5.40% 5/15/11 (AMBAC Insured) Aaa 185,000 171,356
5.40% 5/15/12 (AMBAC Insured) Aaa 225,000 207,844
Framingham Hsg. Dev. Corp. Mtg. Rev.
(Claffin House) Series A, 6.95% 1/1/24
(FHA Guaranteed) AAA 1,820,000 1,876,875
Granville Gen. Oblig.:
7.30% 7/15/05 (MBIA Insured) Aaa 145,000 166,025
7.30% 7/15/06 (MBIA Insured) Aaa 145,000 166,025
7.30% 7/15/07 (MBIA Insured) Aaa 140,000 160,125
7.30% 7/15/08 (MBIA Insured) Aaa 140,000 159,775
Halifax Gen. Oblig.:
6.20% 6/1/10 (AMBAC Insured) Aaa 325,000 330,281
6.25% 6/1/11 (AMBAC Insured) Aaa 325,000 330,281
6.30% 6/1/12 (AMBAC Insured) Aaa 325,000 330,281
6.30% 6/1/13 (AMBAC Insured) Aaa 325,000 330,281
Haverhill Rfdg. Series A:
6.40% 9/1/03 (AMBAC Insured) Aaa 1,600,000 1,706,000
6.50% 9/1/04 (AMBAC Insured) Aaa 1,595,000 1,700,669
6.70% 9/1/10 (AMBAC Insured) Aaa 5,000,000 5,312,500
Haverhill Unltd. Tax Series A, 7% 6/15/12
(FGIC Insured) Aaa 2,750,000 2,952,813
Holyoke Gen. Oblig. 7% 11/1/08 Baa 1,000,000 1,052,500
Holyoke School Proj. Loan Act:
7.35% 8/1/02 Baa 2,270,000 2,434,575
7.65% 8/1/09 Baa 2,205,000 2,392,425
Hudson Ltd. Tax:
7.50% 8/15/01 A 215,000 237,575
7.50% 8/15/02 A 215,000 238,650
7.50% 8/15/03 A 215,000 239,456
Lawrence Gen. Oblig.:
5.125% 9/15/03 Baa 500,000 480,625
5.25% 9/15/04 Baa 500,000 480,000
4.75% 2/15/14 (AMBAC Insured) Aaa 2,500,000 2,103,125
Lawrence School Construction 9.75%
3/15/04 (AMBAC Insured) Aaa 1,420,000 1,851,325
Leicester Gen. Oblig. 5.10% 1/15/14
(MBIA Insured) Aaa 500,000 448,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Leicester Unltd. Tax:
5% 1/15/11 (MBIA Insured) Aaa $ 515,000 $ 464,144
5.10% 5/15/13 (MBIA Insured) Aaa 305,000 274,500
Leominster Gen. Oblig. 7.50% 4/1/09
(MBIA Insured) Aaa 2,300,000 2,558,750
Lowell Gen. Oblig.:
Lot B:
7.40% 11/15/00 Baa 205,000 224,475
7.50% 11/15/01 Baa 200,000 220,250
7.50% 11/15/02 Baa 200,000 220,250
7.60% 11/15/03 Baa 200,000 221,250
7.60% 11/15/04 Baa 200,000 221,250
Series B 5.60% 11/1/12 (FSA Insured) Aaa 2,500,000 2,350,000
8% 1/15/00 Baa1 1,495,000 1,672,531
7.20% 2/15/00 Baa1 1,035,000 1,122,975
8.40% 1/15/09 Aaa 1,250,000 1,435,938
Lowell Hsg. Dev. Corp. Multi-Family Rev.:
Rfdg. Series A, 7.875% 11/1/24
(FNMA Coll.) AAA 5,440,000 5,977,200
7.875% 11/1/00 (FNMA Coll.) AAA 870,000 943,950
Lynn Rfdg. 5.25% 1/15/11 (FSA Insured) Aaa 5,570,000 5,054,775
Lynn Wtr. & Swr. Commission Rev. Rfdg.:
6.125% 6/1/05 (FGIC Insured) Aaa 1,000,000 1,047,500
5.35% 12/1/07 (FGIC Insured) Aaa 760,000 733,400
5.40% 12/1/08 (FGIC Insured) Aaa 805,000 776,825
5.45% 12/1/09 (FGIC Insured) Aaa 850,000 810,688
5.50% 12/1/10 (FGIC Insured) Aaa 500,000 472,500
Massachusetts Bay Trans. Auth.
(Gen. Trans. Sys.):
Series A:
Rfdg. 5.50% 3/1/12 A 4,350,000 4,067,250
5.50% 3/1/09 A 6,000,000 5,677,500
7% 3/1/21 A 1,500,000 1,653,750
Series B, 6.20% 3/1/16 A 5,000,000 5,031,250
Massachusetts Gen. Oblig.
(Cap. Appreciation Consolidated Loan)
Series C, 0% 12/1/05 A 36,250,000 19,031,250
Massachusetts Gen. Oblig. Consolidated
Loan Series B, 0% 7/1/02 A 15,000,000 9,750,000
Massachusetts Gen. Oblig. Consolidated
Loan Unltd. Tax, Series A, 5% 1/1/14 A 3,000,000 2,602,500
Massachusetts Gen. Oblig. Rfdg.
Series B, 6.50% 8/1/08 A 3,000,000 3,180,000
Massachusetts Health & Edl. Facs. Auth. Rev.:
Rfdg. (Boston College) Series K:
5.25% 6/1/09 A1 1,500,000 1,381,875
5.25% 6/1/10 A1 3,025,000 2,764,094
5.25% 6/1/23 A1 13,000,000 11,098,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl. Facs. Auth. Rev. - continued
Rfdg. (Massachusetts Gen. Hosp.)
Series F, 6.25% 7/1/12
(AMBAC Insured) Aaa $ 4,750,000 $ 4,850,938
Rfdg. (Wheaton College) Series C,
5.125% 7/1/09 A 1,130,000 1,015,588
Rfdg. (Worcester Polytechnic Institute)
Series E, 6.75% 9/1/11 A 6,765,000 7,052,513
Rfdg. (Youville Hosp.) Series B, 6%
2/15/25 Aa 2,000,000 1,905,000
(1st Mtg.) (Fairview Extended Care)
Series A, 10.25% 1/1/21 - 10,000,000 10,787,500
(Anna Jaques Hosp.) Series B:
5.90% 10/1/99 Baa 930,000 927,675
6% 10/1/00 Baa 985,000 982,538
6.875% 10/1/12 Baa 3,250,000 3,205,313
(Baystate Med. Ctr.) Series D:
5% 7/1/12 (FGIC Insured) Aaa 7,900,000 6,932,250
5.50% 7/1/16 (FGIC Insured) Aaa 6,400,000 5,840,000
(Bentley College) Series H, 6.90%
7/1/21 (MBIA Insured) Aaa 6,720,000 7,106,400
(Beth Israel Hosp.) 0% 7/1/25
(AMBAC Insured) INFL (c) Aaa 10,000,000 9,250,000
(Blood Institute) Series A, 6.50% 2/1/22 - 16,000,000 15,900,000
(Boston College) Series K:
5.375% 6/1/14 A1 10,320,000 9,507,300
(Cape Cod Health Sys.) Series A:
5.25% 11/15/13 (Connie Lee Insured) AAA 3,500,000 3,071,250
5.25% 11/15/21 (Connie Lee Insured) AAA 10,975,000 9,273,875
(Cardinal Cushing Gen. Hosp.)
Series A, 8.50% 7/1/00 - 900,000 920,250
(Central Med. Ctr.) Series B, 9.79%
6/23/22, (AMBAC Insured) INFL (c) Aaa 10,000,000 10,625,000
(Commty. Colleges) 6.50% 10/1/09 AAA 1,500,000 1,546,875
(Dana Farber Cancer Institute):
6.15% 12/1/04 A1 545,000 561,350
6.25% 12/1/05 A1 575,000 592,250
6.35% 12/1/06 A1 615,000 633,450
6.65% 12/1/15 A1 4,000,000 4,125,000
(Daughters of Charity) Series D, 6.10%
7/1/14 Aa 3,600,000 3,609,000
(Emerson Hosp.) Series C, 8% 7/1/18 Baa1 22,875,000 24,905,156
(Falmouth Hosp.) Series C:
5.50% 7/1/08 (MBIA Insured) Aaa 1,000,000 976,250
5.25% 7/1/13 (MBIA Insured) Aaa 1,060,000 950,025
(Faulkner Hosp.) Series C, 6% 7/1/13 Baa1 3,200,000 2,920,000
(Hebrew Rehabilitation Ctr. For Aged)
Series B:
7% 7/1/97 A- 1,065,000 1,111,594
7.375% 7/1/17 A- 14,000,000 14,822,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl. Facs. Auth. Rev. - continued:
(Lahey Clinic Med. Ctr.) Series B, 5.375%
7/1/23 (MBIA Insured) Aaa $ 10,530,000 $ 9,279,563
(Lowell Gen. Hosp.) Series A:
8.25% 6/1/00 Baa1 3,415,000 3,718,081
8.40% 6/1/11 Baa1 2,565,000 2,866,388
(Mass Gen. Hosp.) Series F, 6.25% 7/1/20
(AMBAC Insured) Aaa 3,000,000 3,003,750
(Melrose-Wakefield Hosp.) Series B,
6.25% 7/1/12 A- 1,000,000 952,500
(Metro West Health Inc.) Series C, 6.40%
11/15/11 (AMBAC Insured) Aaa 5,000,000 5,137,500
(Milford Whitinsville Reg'l. Hosp.) Series B:
7.125% 7/15/02 Ba1 3,100,000 3,088,375
7.75% 7/15/17 Ba1 14,400,000 15,048,000
(Morton Hosp. & Med. Ctr.) Series B:
5.25% 7/1/08 (Connie Lee Insured) AAA 1,200,000 1,101,000
5.25% 7/1/14 (Connie Lee Insured) AAA 2,150,000 1,881,250
5.50% 7/1/23 AAA 1,250,000 1,095,313
(New England Med. Ctr.) Series G,
5.375% 7/1/24 (MBIA Insured) Aaa 3,000,000 2,636,250
(Norwood Hosp. Proj.):
Series C, 7% 7/1/14 Baa 1,520,000 1,523,800
Series E, 7.40% 7/1/99 Baa 200,000 205,250
(Notre Dame Health Care Ctr.):
7.25% 10/1/01 - 865,000 919,063
7.875% 10/1/22 - 5,000,000 5,393,750
(Salem Hosp.):
Series A, 6.75% 7/1/00 (MBIA Insured) Aaa 635,000 664,369
Series B, 8.15% 7/1/14 - 8,000,000 9,220,000
(Simmons College) Series B, 7.50%
10/1/20 Baa1 6,190,000 6,863,163
(Sisters of Providence Health Sys.)
Issue A, 6.625% 11/15/22 Baa1 7,185,000 6,969,450
(St. Anne's Hosp.) Series A:
9.25% 7/1/05 B1 1,270,000 1,284,288
9.375% 7/1/14 B1 9,170,000 9,307,550
(St. Luke's Hosp. New Medford) 8.60%
8/15/23 (MBIA Insured) INFL (c) Aaa 10,000,000 8,850,000
(Tufts Univ.):
Series C, 7.40% 8/1/08 A1 1,000,000 1,102,500
7.85% 8/15/18 (FGIC Insured) INFL (c) Aaa 7,900,000 7,139,625
(Wellesley College) Series D:
5.30% 7/1/14 Aa1 5,400,000 4,866,750
5.375% 7/1/19 Aa1 7,015,000 6,278,425
(Wentworth Institute of Technology) Series B:
5.625% 10/1/13 AAA 2,000,000 1,840,000
5.50% 10/1/23 (Connie Lee Insured) AAA 3,000,000 2,628,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl. Facs. Auth. Rev. - continued:
(Wheaton College) Series C:
5.25% 7/1/14 A $ 2,655,000 $ 2,336,400
5.25% 7/1/19 A 2,000,000 1,722,500
(Whidden Mem. Hosp.) Series B:
7.375% 7/1/98 - 915,000 945,881
7.875% 7/1/12 - 6,530,000 6,840,175
(Williams College) Series D, 5.50%
7/1/17 Aa1 4,000,000 3,700,000
(Winchester Hospital) 5.75% 7/1/24 AAA 4,300,000 3,918,375
Massachusetts Hsg. Fin. Agcy. Hsg. Rev.:
(Multi-Family) Series 1985 A, 9.25%
12/1/14 (MBIA Insured) Aaa 1,950,000 2,067,000
(Single Family Hsg.):
Series 3, 7.30% 6/1/14 Aa 6,000,000 6,375,000
Series 4, 7.375% 6/1/14 Aa 6,440,000 6,657,350
Series 8, 7.70% 6/1/17 Aa 500,000 521,250
Series 10, 7.70% 12/1/17 Aa 820,000 858,950
Series 16:
7.80% 12/1/05 Aa 960,000 999,600
7.90% 6/1/14 Aa 985,000 1,025,631
Series 1985 A:
9.375% 12/1/09 Aa 395,000 405,863
9.50% 12/1/16 Aa 2,505,000 2,598,938
Series 22, 6.95% 6/1/16 Aa 3,430,000 3,571,488
Massachusetts Hsg. Fin. Agcy. Residential
Dev. Series H 6.75% 11/15/12
(FNMA Coll.) Aaa 5,000,000 5,137,500
Massachusetts Hsg. Fin. Agcy. Single Family
Mtg. Purchase Series 1984 B, 10.625%
12/1/09 Aa 15,000 15,488
Massachusetts Ind. Fin. Agcy. 8.625%
10/1/23 - 7,500,000 7,181,250
Massachusetts Ind. Fin. Agcy. Health Care
Facs. Rev. (Hampden Nursing Home Proj.)
Series A, 9.75% 10/1/17 - 12,050,000 12,577,188
Massachusetts Ind. Fin. Agcy. Ind. Rev.:
Rfdg. (Beverly Enterprises, Inc.) 8%
5/1/02 - 1,075,000 1,144,875
Rfdg. (Chelsea Jewish Nursing Home)
Series A, 11.15% 2/15/25
(FHA Guaranteed) BBB- 3,625,000 4,386,250
Rfdg. (Inner Belt Realty Trust Proj.)
Series 1985, 9.50% 12/1/98 - 1,913,354 2,044,898
(Beverly Enterprises, Inc.) 8.375% 5/1/09 - 1,875,000 2,006,250
(Eagle Pond Health Care):
10.125% 5/15/04 (FHA Guaranteed) A+ 365,000 381,425
10.125% 5/15/26 (FHA Guaranteed) - 4,270,000 4,472,825
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Ind. Rev. - continued
(Meadow Green Nursing) 9.60% 8/1/27
(FHA Guaranteed) AA $ 3,880,000 $ 4,214,650
(Museum of Science Proj.):
4.90% 11/1/06
(Cap. Guaranty Insured) Aaa 480,000 441,000
5% 11/1/07 (Cap. Guaranty Insured) Aaa 515,000 473,156
(Springfield College):
5/35% 9/15/05 Baa1 930,000 880,013
5.625% 9/15/10 Baa1 1,000,000 923,750
(Village Plaza Ltd. Brookline) 9% 5/1/95
LOC Shawmut National Corp - 3,325,000 3,341,625
Massachusetts Ind. Fin. Agcy. Poll. Cont.
Rev. Rfdg.:
(Boston Edison Co. Proj.)
Series A, 5.75% 2/1/14 Baa2 5,000,000 4,550,000
(Eastern Edison Co. Proj.) 5.875%
8/1/08 Baa2 3,750,000 3,557,813
Massachusetts Ind. Fin. Agcy. Resource
Recovery Rev. (Southeast Mass. Proj.)
Series A, 9% 7/1/15 - 1,000,000 1,115,000
Massachusetts Ind. Fin. Agcy. Rev.:
Rfdg. (Atlanticare Med. Ctr.) Series A,
10.125% 11/1/14 - 8,800,000 9,845,000
Rfdg. (Emerson College) 8.90% 1/1/18 - 11,250,000 12,515,625
Rfdg. (Framingham Union Hosp.) Series A:
8.25% 7/1/00 A 3,405,000 3,664,631
8.625% 7/1/12 A 14,645,000 16,164,419
Rfdg. (Holy Cross College) Series II,
6.375% 11/1/15 A1 2,000,000 2,027,500
Rfdg. (Milton Academy) Series B, 5.25%
9/1/19 (MBIA Insured) Aaa 3,000,000 2,595,000
Rfdg. (Philips Academy) 5.375% 9/1/23 Aa1 11,800,000 10,487,250
(1st Mortgage Reeds Landing) 7.75%
10/1/20 - 2,500,000 2,446,875
(Atlanticare Med. Ctr.) Series A, 10.125%
11/1/14 - 1,900,000 2,125,625
(Boston Architectural Ctr. Proj.) 8.50%
9/1/19 - 3,685,000 3,965,981
(Brandon Residential Treatment Proj.)
8.75% 2/1/24 - 5,400,000 5,346,000
(Concord Academy) 6.90% 9/1/21
(FSA Insured) Aaa 1,370,000 1,429,938
(Emerson College):
Series 1992 8.25% 1/1/17 - 3,000,000 3,270,000
8.50% 1/1/03 - 6,000,000 6,660,000
(Evergreen Ctr., Inc.) 9.25% 11/1/11 - 4,700,000 5,152,375
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Rev. - continued
(Holy Cross College):
6.45% 1/1/12 A1 $ 4,300,000 $ 4,386,000
7% 7/1/19 A1 9,000,000 9,483,750
(Institute Dev. Disabilities) 9.25%
6/1/09 - 4,330,000 4,243,400
(Jacobs Pillow Dance Festival) 9%
12/1/11 - 4,800,000 4,608,000
(Leominster Hosp.) Series A, 8.375%
8/1/99 - 3,300,000 3,572,250
(Massachusetts Biomedical Research):
Series A-1:
0% 8/1/02 A1 3,650,000 2,281,250
0% 8/1/03 A1 1,000,000 582,500
Series A-2:
0% 8/1/05 (e) A1 24,600,000 12,423,000
0% 8/1/08 A1 20,000,000 8,125,000
0% 8/1/10 A1 10,000,000 3,525,000
(Massachusetts Biomedical Research
Cap. Appreciation)
0% 8/1/07 A1 25,000,000 10,875,000
(Museum of Science Proj.):
5% 11/1/08
(Cap. Guaranty Insured) Aaa 1,590,000 1,440,938
5.10% 11/1/09 (Cap. Guaranty
Insured) Aaa 830,000 753,225
(New England Ctr. for Autism):
9% 11/1/05 - 3,050,000 3,267,313
9.50% 11/1/15 - 8,610,000 9,427,950
7% 11/1/19 - 1,100,000 1,007,875
(Orchard Cove, Inc.):
8% 5/1/99 - 10,000,000 10,337,500
9% 5/1/22 - 15,200,000 17,138,000
(Springfield College):
5.25% 9/15/03 Baa1 755,000 721,969
5.25% 9/15/04 Baa1 885,000 837,431
(Whitehead Institute Biomedical Research)
5.125% 7/1/26 Aa 9,500,000 7,920,625
Massachusetts Muni. Wholesale Elec. Co.
Pwr. Supply Sys. Rev.:
Rfdg. Series A, 5.10% 7/1/08
(AMBAC Insured) Aaa 1,000,000 923,750
Rfdg. Series B:
4.75% 7/1/10 (MBIA Insured) Aaa 11,230,000 9,671,838
5% 7/1/12 (MBIA Insured) Aaa 6,000,000 5,212,500
5% 7/1/17 (MBIA Insured) Aaa 12,710,000 10,739,950
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Muni. Wholesale Elec. Co.
Pwr. Supply Sys. Rev. - continued
(Reg. Inflos) Series A, 6.92% 7/1/18
INFL (c) Aaa $ 24,500,000 $ 19,691,875
Series A, 6% 7/1/18 A 13,000,000 12,333,750
5% 7/1/10 (AMBAC Insured) Aaa 3,500,000 3,101,875
6.75% 7/1/17 A 9,050,000 9,163,125
Series C, 6.625% 7/1/18 A 10,000,000 10,075,000
Massachusetts Port Auth. Rev.:
Rfdg. Series A:
5.50% 7/1/08 Aa 2,995,000 2,912,638
5.50% 7/1/09 Aa 3,160,000 3,021,750
5% 7/1/13 Aa 9,835,000 8,790,031
5% 7/1/15 Aa 5,600,000 4,963,000
Rfdg. 7.125% 7/1/12 Aa 2,490,000 2,546,025
Series B, 6% 7/1/23 Aa 8,000,000 7,850,000
5.625% 7/1/12 (Escrowed to Maturity)(d) Aaa 1,900,000 1,850,125
Massachusetts Spl. Oblig. Rev.:
Series A, 5.75% 6/1/12 A1 5,985,000 5,723,156
(Gas Tax) Series A:
6.25% 6/1/06 A1 3,880,000 4,074,000
6.25% 6/1/07 A1 2,480,000 2,604,000
6% 6/1/13 A1 25,915,000 25,947,394
Massachusetts Tpk. Auth. Tpk. Rev. Series A:
5% 1/1/13 A1 15,920,000 13,989,700
5% 1/1/20 A1 30,900,000 26,187,750
5.125% 1/1/23 (FGIC Insured) Aaa 17,115,000 14,504,963
Massachusetts Wtr. Poll. Abatement Trust Rev.:
(Massachusetts Wtr. Resources Auth.
Loan Prog.):
Series A:
5.30% 2/1/07 Aa 3,965,000 3,791,531
5.30% 8/1/07 Aa 4,080,000 3,896,400
5.35% 2/1/08 Aa 2,685,000 2,550,750
5.35% 8/1/08 Aa 4,320,000 4,098,600
5.20% 8/1/11 Aa 5,520,000 5,009,400
5.45% 2/1/13 Aa 17,390,000 15,977,063
Series B, 5.25% 8/1/14 Aa 12,505,000 11,223,238
(Wtr. Poll. Pooled Loan Prog.) Series 1:
5.40% 2/1/06 Aa 2,175,000 2,123,344
5.40% 8/1/06 Aa 2,230,000 2,174,250
5.45% 2/1/07 Aa 2,000,000 1,930,000
5.45% 8/1/07 Aa 2,355,000 2,269,631
5.50% 2/1/08 Aa 1,000,000 965,000
5.50% 8/1/08 Aa 2,000,000 1,930,000
5.60% 8/1/13 Aa 14,300,000 13,370,500
Massachusetts Wtr. Resources Auth.
Series A, 0% 4/1/06 A 10,000,000 5,012,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Methuen Wtr. Ltd. Tax Lot A:
9.40% 12/15/97 A1 $ 260,000 $ 298,025
9.50% 12/15/98 A1 260,000 303,550
9.50% 12/15/99 A1 260,000 310,375
9.50% 12/15/00 A1 260,000 315,250
Monson Gen. Oblig.:
Rfdg. 5.40% 10/15/07 (MBIA Insured) Aaa 1,005,000 971,081
5.50% 10/15/10 (MBIA Insured) Aaa 1,080,000 1,030,050
Nantucket Gen. Oblig. 6.80% 12/1/11 A 1,425,000 1,499,813
Nantucket Island Bank Rfdg. Series E:
7% 7/1/05 A 1,505,000 1,627,281
7.25% 7/1/19 A 6,175,000 6,699,875
North Attleborough Gen. Oblig. Ltd. Tax
Rfdg. 5.25% 11/1/13 (AMBAC Insured) Aaa 1,000,000 910,000
Orleans Unltd. Tax:
6.70% 6/15/08 A1 180,000 192,825
6.70% 6/15/09 A1 120,000 126,450
Palmer Rfdg. 5.50% 10/1/10
(MBIA Insured) Aaa 2,250,000 2,134,688
Pentucket Reg'l. School Dist.:
5.10% 2/15/11 (MBIA Insured) Aaa 530,000 480,313
5.10% 2/15/12 (MBIA Insured) Aaa 220,000 197,450
5.10% 2/15/13 (MBIA Insured) Aaa 575,000 514,625
5.10% 2/15/14 (MBIA Insured) Aaa 525,000 467,906
Pittsfield Gen. Oblig. 7.25% 8/1/06 A 600,000 650,250
Plainville Gen. Oblig. Ltd. Tax:
7% 9/1/06 A 175,000 187,688
7% 9/1/07 A 175,000 187,250
7% 9/1/09 A 175,000 187,688
Plymouth County Ctfs. of Prtn.
Series A, 7% 4/1/22 BBB 10,995,000 11,530,982
Quabbin Reg'l. School Dist. 6.80% 6/15/05 A 510,000 543,150
Quincy Hosp. Gen. Oblig. 5.16% 1/15/11
(FSA Insured) Aaa 6,000,000 5,392,500
Quincy Hosp. Rev. Rfdg.:
5.50% 1/15/13 (FSA Insured) Aaa 2,975,000 2,737,000
5.25% 1/15/16 (FSA Insured) Aaa 2,000,000 1,757,500
South Essex Swr. Dist. Gen. Oblig. Unltd. Tax:
8.75% 12/1/01 A 425,000 510,531
8.75% 12/1/02 A 425,000 507,875
8.75% 12/1/03 A 400,000 475,500
8.75% 12/1/04 A 400,000 475,500
8.75% 12/1/05 A 400,000 474,500
Southern Berkshire Reg'l. School Dist. 7%
4/15/11 (MBIA Insured)(e) Aaa 4,000,000 4,315,000
Springfield Hsg. Auth. Multi-Family Mtg. Rev.
(Citywide Apts.):
9.50% 11/1/05 (FHA Guaranteed) - 475,000 502,313
9.625% 11/1/17 (FHA Guaranteed) - 1,500,000 1,606,875
9.625% 11/1/26 (FHA Guaranteed) - 3,250,000 3,481,563
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Taunton Gen. Oblig.:
8% 2/1/00 A $ 1,000,000 $ 1,112,500
8% 2/1/02 A 1,465,000 1,664,606
8% 2/1/03 A 1,005,000 1,149,469
8% 2/1/05 A 1,000,000 1,156,250
Taunton Ind. Dev. Fing. Rev.
(Pepsi Cola Metro Bottle Co.)
5.65% 8/1/12 A1 2,400,000 2,310,000
Tewksbury Gen. Oblig. Various Purp. Unltd. Tax:
9.60% 12/15/98 Baa1 595,000 682,019
9.60% 12/15/99 Baa1 595,000 699,869
9.60% 12/15/00 Baa1 210,000 250,950
9.60% 12/15/01 Baa1 210,000 255,413
9.60% 12/15/02 Baa1 210,000 259,613
Tewksbury Wtr. Gen. Oblig.:
7.20% 6/1/05 Baa1 350,000 382,375
7.20% 6/1/06 Baa1 150,000 164,250
Westfield Muni. Purp. Loan:
5% 9/1/10 (FSA Insured) Aaa 745,000 672,363
5% 9/1/11 (FSA Insured) Aaa 490,000 437,938
5% 9/1/12 (FSA Insured) Aaa 745,000 663,050
5% 9/1/13 (FSA Insured) Aaa 500,000 440,625
Winchedon Gen. Oblig.:
6.05% 3/15/11 (AMBAC Insured) Aaa 1,285,000 1,289,819
6.05% 3/15/12 (AMBAC Insured) Aaa 1,275,000 1,279,781
Woods Hole, Martha's Vineyard & Nantucket
(Mass. Steamship Auth.) Series A:
5.125% 3/1/11 A 1,100,000 1,010,625
5.125% 3/1/12 A 630,000 573,300
1,151,420,942
PUERTO RICO - 0.2%
Puerto Rico Ports Auth. Rev.
Series B, 5.70% 7/1/03 A 2,310,000 2,312,888
U.S. VIRGIN ISLANDS - 0.1%
Virgin Island Pub. Fin. Auth. Rev.
Series A, 7% 10/1/02 - 1,000,000 1,043,750
TOTAL MUNICIPAL BONDS
(Cost $1,139,597,160) 1,154,777,580
MUNICIPAL NOTES (A) - 0.2%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - 0.2%
Massachusetts Health & Edl. Facs. Auth. Rev.
(Cap. Asset Prog.) Series B, VRDN:
Series B, 2.60% (MBIA Insured)
BPA Sanwa Bank VMIG 1 $ 1,100,000 $ 1,100,000
Series C, 2.60% (MBIA Insured)
BPA Sanwa Bank VMIG 1 1,800,000 1,800,000
TOTAL MUNICIPAL NOTES
(Cost $2,900,000) 2,900,000
TOTAL INVESTMENTS - 100%
(Cost $1,142,497,160) $ 1,157,677,580
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SELL
500 U.S. Treasury Bond September 1994 $ 52,390,625 $ (857,665)
THE VALUE OF FUTURES CONTRACTS SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 4.5%
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) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(c) 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.
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) Security was pledged to cover margin requirements for futures
contracts. At the period end, the value of securities pledged amounted to
$6,840,000.
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 64.2% AAA, AA, A 60.8%
Baa 7.5% BBB 8.7%
Ba 1.6% BB 1.7%
B 0.9% B 0.9%
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 17.0%. FMR
has determined that unrated debt securities that are lower quality account
for 11.9% 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:
Health Care 35.0%
General Obligation 12.5
Education 10.9
Water & Sewer 10.0
Others
(individually less
than 10%) 31.6
TOTAL 100.0%
INCOME TAX INFORMATION
At July 31, 1994 the aggregate cost of investment securities for income tax
purposes was $1,142,497,160. Net unrealized appreciation aggregated
$15,180,420, of which $47,377,255 related to appreciated investment
securities and $32,196,835 related to depreciated investment securities.
FIDELITY MASSACHUSETTS TAX-FREE HIGH YIELD PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1994 (UNAUDITED)
1.ASSETS 2. 3.
4.Investment in securities, at value (cost 5. $ 1,157,677,580
$1,142,497,160) (Notes 1 and 2) - See accompanying
schedule
6.Cash 7. 350,000
8.Receivable for investments sold 9. 7,835,509
10.Interest receivable 11. 16,119,050
12. 13.TOTAL ASSETS 14. 1,181,982,139
15.LIABILITIES 16. 17.
18.Payable for investments purchased $ 6,242,665 19.
20.Dividends payable 1,451,844 21.
22.Accrued management fee 395,691 23.
24.Payable for daily variation on futures contracts 791,533 25.
26.Other payables and accrued expenses 131,618 27.
28. 29.TOTAL LIABILITIES 30. 9,013,351
31.32.NET ASSETS 33. $ 1,172,968,788
34.Net Assets consist of (Note 1): 35. 36.
37.Paid in capital 38. $ 1,159,113,539
39.Accumulated undistributed net realized gain (loss) on 40. (467,506)
investments
41.Net unrealized appreciation (depreciation) on 42. 14,322,755
investments
43.44.NET ASSETS, for 104,071,438 shares outstanding 45. $ 1,172,968,788
46.47.NET ASSET VALUE, offering price and redemption 48. $11.27
price per share ($1,172,968,788 (divided by) 104,071,438
shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
49.50.INTEREST INCOME 51. $ 40,272,689
52.EXPENSES 53. 54.
55.Management fee (Note 4) $ 2,490,562 56.
57.Transfer agent, accounting and custodian fees and 696,437 58.
expenses (Note 4)
59.Non-interested trustees' compensation 3,707 60.
61.Registration fees 173 62.
63.Audit 28,775 64.
65.Legal 12,736 66.
67.Interest (Note 5) 920 68.
69.Reports to shareholders 11,761
70.Miscellaneous 5,847 71.
72. 73.TOTAL EXPENSES 74. 3,250,918
75.76.NET INTEREST INCOME 77. 37,021,771
78.REALIZED AND UNREALIZED GAIN (LOSS) (NOTES 1 AND 80. 81.
3)
79.Net realized gain (loss) on:
82. Investment securities 12,046,873 83.
84. Futures contracts 7,466,922 19,513,795
85.Change in net unrealized appreciation (depreciation) 86. 87.
on:
88. Investment securities (110,309,652) 89.
90. Futures contracts 521,117 (109,788,535)
91.92.NET GAIN (LOSS) 93. (90,274,740)
94.95.NET INCREASE (DECREASE) IN NET ASSETS 96. $ (53,252,969)
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1994 JANUARY 31,
(UNAUDITED) 1994
97.INCREASE (DECREASE) IN NET ASSETS
98.Operations $ 37,021,771 $ 80,953,626
Net interest income
99. Net realized gain (loss) 19,513,795 39,977,635
100. Change in net unrealized appreciation (109,788,535) 39,916,269
(depreciation)
101. (53,252,969) 160,847,530
102.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
103.Distributions to shareholders: (37,021,771) (80,953,626)
From net interest income
104. From net realized gain (14,280,978) (25,900,006)
105. In excess of net realized gain - (3,133,619)
106. 107.TOTAL DISTRIBUTIONS (51,302,749) (109,987,251)
108.Share transactions 161,601,335 471,434,518
Net proceeds from sales of shares
109. Reinvestment of distributions 40,187,140 86,120,603
110. Cost of shares redeemed (311,673,784) (483,601,622)
111. (109,885,309) 73,953,499
Net increase (decrease) in net assets resulting from
share transactions
112. (214,441,027) 124,813,778
113.TOTAL INCREASE (DECREASE) IN NET ASSETS
114.NET ASSETS 115. 116.
117. Beginning of period 1,387,409,815 1,262,596,037
118. End of period $ 1,172,968,788 $ 1,387,409,815
119.OTHER INFORMATION 121. 122.
120.Shares
123. Sold 14,628,359 39,016,000
124. Issued in reinvestment of distributions 3,533,677 7,102,485
125. Redeemed (27,708,723) (39,936,090)
126. Net increase (decrease) (9,546,687) 6,182,395
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
127. SIX MONTHS YEAR SIX MONTHS YEARS ENDED JULY 31,
ENDED ENDED ENDED
JULY 31, 1994 JANUARY 31, JANUARY 31,
128. (UNAUDITED) 1994 1993 1992 1991 1990 1989
129.SELECTED PER-SHARE DATA
130.Net asset value, beginning
of period $ 12.210 $ 11.750 $ 11.860 $ 11.320 $ 11.160 $ 11.250 $ 10.820
131.Income from Investment
Operations .351 .714 .364 .735 .783 .799 .804
Net interest income
132. Net realized and unrealized
gain (loss) (.810) .720 (.040) .620 .270 (.090) .430
133. Total from investment
operations (.459) 1.434 .324 1.355 1.053 .709 1.234
134.Less Distributions (.351) (.714) (.364) (.735) (.783) (.799) (.804)
From net interest income
135. From net realized gain (.130) (.230) (.070) (.080) (.110) - -
136. In excess of net realized
gain - (.030) - - - - -
137. Total distributions (.481) (.974) (.434) (.815) (.893) (.799) (.804)
138.Net asset value, end of
period $ 11.270 $ 12.210 $ 11.750 $ 11.860 $ 11.320 $ 11.160 $ 11.250
139.TOTAL RETURN B -3.72% 12.57% 2.83% 12.48% 9.90% 6.60% 11.82%
140.RATIOS AND SUPPLEMENTAL DATA
141.Net assets, end of period
(in millions) $ 1,173 $ 1,387 $ 1,263 $ 1,235 $ 842 $ 737 $ 663
142.Ratio of expenses to average
net assets .54%A .54% .55% .57% .56% .57% .56%
A
143.Ratio of net interest income
to average net assets 6.16%A 5.93% 6.19% 6.43% 7.05% 7.20% 7.33%
A
144.Portfolio turnover rate 29%A 40% 42% 18% 29% 31% 26%
A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FINANCIAL HIGHLIGHTS
FIDELITY MASSACHUSETTS TAX-FREE 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 and reinvestment of its dividends (or income). Yield
measures the income paid by a fund. Since a money market fund tries to
maintain a $1 share price, yield is an important measure of performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Massachusetts Tax-Free Money Market 0.91% 1.83% 17.77% 47.90%
Consumer Price Index 1.50% 2.77% 19.29% 42.56%
Average Massachusetts
Tax-Free Money Market Fund 0.96% 1.91% 18.75% n/a
CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, one year, five years, or 10 years. For example, if
you invested $1,000 in a fund that had a 5% return over the past year, you
would end up with $1,050. Comparing the fund's performance to the consumer
price index (CPI) helps show how your investment did compared to inflation.
To measure how the fund stacked up against its peers, you can compare its
return to the average Massachusetts tax-free money market fund's total
return. This average currently reflects the performance of 11 Massachusetts
tax-free money market funds tracked by IBC/Donoghue.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Massachusetts Tax-Free Money Market 1.83% 3.33% 3.99%
Consumer Price Index 2.77% 3.59% 3.61%
Average Massachusetts
Tax-Free Money Market Fund 1.91% 3.50% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
7/31/93 10/31/93 1/31/94 4/30/94 7/31/94
Massachusetts Tax-Free 1.85% 1.85% 1.62% 2.22% 2.16%
Money Market
Average Massachusetts 1.98% 1.92% 1.70% 2.25% 2.31%
Tax-Free Money Market
Fund
Massachusetts Municipal 3.28% 3.28% 2.88% 3.94% 3.81%
Money Market Tax-equivalen
t
Average All Taxable 2.65% 2.66% 2.68% 3.15% 3.83%
Money Market Fund
</TABLE>
Row: 1, Col: 1, Value: 1.85
Row: 1, Col: 2, Value: 1.98
Row: 2, Col: 1, Value: 1.85
Row: 2, Col: 2, Value: 1.92
Row: 3, Col: 1, Value: 1.62
Row: 3, Col: 2, Value: 1.7
Row: 4, Col: 1, Value: 2.22
Row: 4, Col: 2, Value: 2.25
Row: 5, Col: 1, Value: 2.16
Row: 5, Col: 2, Value: 2.31
Massachusetts
Tax-Free
Money Market
Average Massachusett
s Tax-Free 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 and effective yield. The chart above shows the fund's
seven-day yield at quarterly intervals over the past year. You can compare
these yields to the average tax-free money market fund. Or you can look at
the fund's tax-equivalent yield, which is based on a combined effective
federal and state income tax rate of 43.68% and reflects that on April 30,
1994, and July 31, 1994 approximately 0.4% and 5.5%, respectively, of the
fund's income was subject to state taxes. 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 WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. And there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
FIDELITY MASSACHUSETTS TAX-FREE MONEY MARKET PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Janice Bradburn,
Portfolio Manager of Fidelity
Massachusetts Tax-Free Money Market Portfolio
Q. JAN, AFTER SEVERAL YEARS OF RELATIVE STABILITY, WE'VE SEEN A LOT OF
ACTIVITY LATELY IN THE MONEY MARKETS. CAN YOU BRING US UP TO DATE?
A. Sure. The watershed was the decision by the Federal Reserve to raise the
federal funds rate - the rate banks charge each other for overnight loans -
one quarter of a percentage point on February 4, 1994. The Fed was
responding to increased economic activity and heightened concerns about
inflation. Later, the Fed tacked on successive increases, taking the rate
to 4.25%.
Q. DID TAX-FREE INTEREST RATES RISE WITH THE TIDE?
A. Not as quickly as you might expect. In the municipal market, technical
factors often play as big a role in the movement of interest rates as the
Fed's monetary policy does. That was certainly the case in Massachusetts,
where demand outpaced supply and interest rates on some issues actually
fell following the Fed's move. Variable rate demand notes - VRDNs - were
affected most by the surge in demand. Investors seek out VRDNs when
interest rates are rising because the rate they pay adjusts weekly with
prevailing rates. Later, though, as more supply entered the market in the
spring, tax-free rates rose; and they've since moved roughly in tandem with
taxable rates.
Q. WHAT WAS YOUR STRATEGY IN AN UNSTABLE MARKET?
A. The fund's average maturity was around 60 days at the beginning of the
period. Once interest rates began to rise, I let the average maturity of
the fund roll down by adding more VRDNs and commercial paper, which in this
context refers to securities issued by municipalities to finance capital or
operating needs. Allowing the fund's average maturity to roll down gave me
more flexibility to respond to rising rates. The fund has since settled in
at around 25 days.
Q. HOW DID THE FUND PERFORM?
A. On July 31, 1994, the fund's seven-day yield was 2.16%, up from 1.62%
six months ago. The latest yield is the equivalent of a 3.81% yield on a
taxable investment for Massachusetts investors in the combined 43.68%
federal and state tax bracket. The fund's total return for the six months
ended on July 31 was 0.91%. During the same period, the average
Massachusetts tax-free money market fund had a total return of .96%,
according to IBC/Donoghue. One of the reasons the fund can lag its
competitors is because many securities issued by Massachusetts
municipalities simply don't meet the fund's strict standards. Occasionally,
that means sacrificing yield in favor of my first goal - safety.
Q. WHAT'S THE OUTLOOK?
A. With short-term rates likely to continue rising, I'll continue to take a
cautious approach. That means I'll probably maintain a large percentage of
VRDNs; currently, they're over 65% of the fund's assets. But as more supply
enters the market, I'll also look for opportunities to extend the fund's
average maturity slightly. While now is not the time to lengthen
aggressively, I will try to position the fund in a more neutral range of
around 35 days.
FUND FACTS
GOAL: tax-free income with
share price stability by
investing in high-quality
short-term Massachusetts
municipal securities
START DATE: November 11,
1983
SIZE: as of July 31, 1994,
more than $673 million
MANAGER: Janice Bradburn,
since January 1992; manager,
Fidelity Ohio Municipal Money
Market Portfolio, since October
1993; Spartan Massachusetts
Municipal Money Market
Portfolio, since January 1992;
Fidelity New York Tax-Free
Money Market Portfolio, since
September 1989; Spartan New
York Municipal Money Market
Portfolio, since February
1990; joined
Fidelity in 1989
(checkmark)
MONEY MARKETS AND
DERIVATIVES:
The word "derivatives" covers
a wide range of financial
agreements, of varying
degrees of complexity, that
have market values based on
security or market indices. All
"derivative" securities in
Fidelity's money market funds
are designed to have the price
characteristics of typical
money market securities.
During the recent Federal
Reserve Board interest rate
increases, all Fidelity money
market holdings performed as
designed and the funds
maintained a stable share
price of $1.00.
The more complex of these
instruments, such as floating
rate notes with unusual and
complex floating rate
formulas, frequently have too
much price volatility to be
appropriate investments for
money market funds. Many of
them do not offer the degree
of price stability Fidelity
believes is required in order
for its funds to maintain a
stable $1.00 share price.
Therefore, despite their
frequent higher yields at the
time they are sold, Fidelity
money market funds have not
purchased these volatile
securities. While this may
sometimes have caused
Fidelity money market funds
to have lower gross yields
than certain other funds,
Fidelity believes its investors
value prudence as well as
performance.
FIDELITY MASSACHUSETTS TAX-FREE MONEY MARKET PORTFOLIO
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/94 1/31/94 7/31/93
0 - 30 83 68 81
31 - 90 12 8 8
91 - 180 3 12 6
181 - 397 2 12 5
WEIGHTED AVERAGE MATURITY
7/31/94 1/31/94 7/31/93
Massachusetts Tax-Free
Money Market 23 days 57 days 33 days
Average Massachusetts
Tax-Free Money Market Fun 38 days 56 days 33 days
d*
ASSET ALLOCATION
AS OF JULY 31, 1994 AS OF JANUARY 31, 1994
Row: 1, Col: 1, Value: 71.0
Row: 1, Col: 2, Value: 4.0
Row: 1, Col: 3, Value: 13.0
Row: 1, Col: 4, Value: 9.0
Row: 1, Col: 5, Value: 3.0
Row: 1, Col: 1, Value: 59.0
Row: 1, Col: 2, Value: 9.0
Row: 1, Col: 3, Value: 10.0
Row: 1, Col: 4, Value: 16.0
Row: 1, Col: 5, Value: 6.0
Variable rate
demand notes
(VRDNs) 71%
Commercial
paper 4%
Tender bonds 13%
Municipal
notes 9%
Other 3%
Variable rate
demand notes
(VRDNs) 59%
Commercial
paper 9%
Tender bonds 10%
Municipal
notes 16%
Other 6%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
FIDELITY MASSACHUSETTS TAX-FREE MONEY MARKET PORTFOLIO
INVESTMENTS JULY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ARIZONA - 0.1%
Maricopa Poll. Contr. Rev. (Palo Verde Proj.) Series D,
2.75% LOC Bank of America, VRDN $ 1,000,000 $ 1,000,000
FLORIDA - 0.3%
Dade County Ind. Dev. Rev. (Montenay-Dade Ltd. Proj.)
Series 1990 A, 3.05%, LOC Banque Paribas,
VRDN (b) 2,000,000 2,000,000
MASSACHUSETTS - 93.7%
Beverly BAN 3.43% 12/2/94
LOC State Street Bank & Trust Co 2,000,000 2,002,794
Boston City Hosp. Participating VRDN, Series PT-2, 3%,
(Liquidity Facility Bank National De Paris) (c) 1,000,000 1,000,000
Boston Gen. Oblig. Participating VRDN (c):
Series 6 A, 3.10% (Liquidity Facility Morgan
Guaranty) 3,300,000 3,300,000
Series 6 C, 3.10% (Liquidity Facility Morgan
Guaranty) 2,000,000 2,000,000
Boston Gen. Oblig. Series A, 4% 9/1/94 (FSA Insured) 1,000,000 1,001,166
Boston Wtr. & Swr. Commission Gen. Rev.:
Series 1984 A, 10.50% 1/1/95 1,900,000 1,994,521
Series 1985 A, 2.80%, LOC Canadian Imperial
Bank of Commerce, VRDN 10,690,000 10,690,000
Series 1985 B, 2.80%, LOC Canadian Imperial
Bank of Commerce, VRDN 14,450,000 14,450,000
Clipper Participating VRDN, Series 93-2, 2.93%
(Liquidity Facility State Street Bank & Trust) (c) 19,000,000 19,000,000
Framingham Ind. Rev. Board (Perini Corp. Proj.)
Series 1985, 2.90%, LOC Harris Trust & Savings
Bank, Chicago, VRDN 400,000 400,000
Holyoke Poll. Cont. Rev. (Holyoke Pwr. & Light Proj.)
Series 1988, 2.70%, LOC Union Bank of
Switzerland, VRDN 1,200,000 1,200,000
Lincoln BAN 4% 7/6/95 4,750,000 4,762,750
Lowell Cust. Receipts BAN 4.625% 3/1/95
LOC State Street Bank & Trust 3,000,000 3,020,772
Lowell Gen. Oblig. State Qualified Rev. Bonds Series B,
7% 11/1/94 (FSA Insured) 1,890,000 1,909,096
Massachusetts Bay Transit Auth. Gen. Trans. Sys.
Series B, 4% 3/1/95 2,000,000 2,006,187
Massachusetts Bay Transit Auth. RAN:
Series 1993 B:
3.25% 9/30/94 11,000,000 11,003,791
3.50% 9/30/94 15,500,000 15,515,841
Series 1994 A, 3.75% 3/1/95 3,200,000 3,203,994
Massachusetts Convention Center Auth. Bonds (Hynes)
Series 1984 A, 10% 9/1/94 2,050,000 2,102,817
Massachusetts Dedicated Income Tax Rev. Series 1990 B,
2.80%, LOC Nat'l. Westminster, VRDN 2,000,000 2,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ed. Fin. Auth. Ed. Loan Rev. Issue E
Series 1994 A, 2.60%, (FGIC Insured) VRDN (b) $ 10,900,000 $ 10,900,000
Massachusetts Electric Wholesale Supply Sys. Rev.
Series 1993 E, 2.90%, (AMBAC Insured),
(Liquidity Enhancement Hong Kong &Shanghai
Banking Corp.) (c) 4,000,000 4,000,000
Massachusetts Gen. Oblig. Consolidated Loan Bonds
Series B:
3.50% 10/1/94 2,000,000 2,002,447
3.40% 11/22/94 12,000,000 12,014,080
Massachusetts Gen. Oblig. Participating VRDN (c):
Series 1993, 2.85%, (Liquidity Facility Citibank) 3,000,000 3,000,000
Series 1993 I, 3.15%, (Liquidity Facility Citibank) 13,000,000
13,000,000
Series PA-13 3.05%
(Liquidity Facility Merrill Lynch & Co. Inc.) 3,000,000 3,000,000
Massachusetts Health & Ed. Facs. Auth. Rev.:
(Boston Univ.) Bonds Series H, 2.90% tender 8/11/93,
LOC First Nat'l. Bank of Chicago 26,000,000 26,000,000
(Brigham & Women's Hosp.) Series A, 2.70%,
LOC Sanwa Bank, VRDN 15,800,000 15,800,000
(Capital Asset Prog.):
Series 1985 D, 2.90%, (MBIA Insured)
BPA Sanwa Bank, VRDN 23,900,000 23,900,000
Series A, 3.10%, LOC First Nat'l. Bank of
Chicago, VRDN 26,300,000 26,300,000
Series E, 3.05%, LOC Sanwa Bank, VRDN 25,400,000 25,400,000
Series G-1, 2.55%, (MBIA Insured)
BPA Credit Suisse, VRDN 3,100,000 3,100,000
(Harvard University):
Series I:
2.75%, VRDN 46,640,000 46,640,000
2.75%, VRDN 65,620,000 65,620,000
Bonds 2% tender 8/12/94 5,200,000 5,200,000
Bonds 3% tender 10/14/94 1,000,000 1,000,000
(MIT) Series G, 2.75%, VRDN 4,000,000 4,000,000
(Mt. Ida College) 2.75%,
LOC Chemical Bank, VRDN 4,200,000 4,200,000
(Wellesley College) Issue B, 2.40%, VRDN 10,700,000 10,700,000
(Williams College) Series E, 2.85%, VRDN 5,100,000 5,100,000
Massachusetts Hsg. Fin. Auth. Participating VRDN (c):
Series 13A, 3.10%, (Liquidity Facility Morgan
Guaranty) 7,250,000 7,250,000
Series 13C, 3.10%, (Liquidity Facility Morgan
Guaranty) 5,900,000 5,900,000
Massachusetts Hsg. Fin. Auth. Single Family Hsg.
Rev. Bonds:
Series 25, 2.95% tender 9/1/94,
(GIC Bayerische Landesbanken) 24,500,000 24,500,000
Series 32, 3.20% tender 12/1/94(GIC FGIC) (b) 4,000,000 4,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Adj. Rate Rev. Rfdg.
(WGBH Ed. Foundation Proj.) Series 1992, 2.95%,
LOC Nat'l. Westminster Bank, VRDN $ 5,000,000 $ 5,000,000
Massachusetts Ind. Fin. Agcy. Adj. Tender Resource
Recovery Rev. (Ogden-Haverhill Proj.) Series 1986 B,
2.60%, LOC Union Bank of Switzerland, VRDN (b) 15,625,000 15,625,000
Massachusetts Ind. Fin. Agcy. Hlth. Facs. Rev. Rfdg.
(Meritcare, Inc.) 2.75%,
LOC Pittsburgh Nat'l. Bank, VRDN 2,000,000 2,000,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev.:
Rfdg. (First Healthcare Corp. for Hillhaven Proj.) 3%,
LOC Wachovia Bank of Georgia, VRDN 2,000,000 2,000,000
Rfdg. (Quamco Inc. Proj.) Series 1988 B, 2.60%
LOC Banca Commerciale Italiana, VRDN 1,605,000 1,605,000
(Interpolymer Corp.) Series 1992, 2.90%,
LOC Bank of Tokyo, VRDN 4,000,000 4,000,000
(Longview Fiber Co.) Series 1987, 2.85%,
LOC Algemene Bank, VRDN 2,070,000 2,070,000
(United Medical Corp.) Series 1992, 2.90%,
LOC Chemical Bank, VRDN (b) 1,600,000 1,600,000
Massachusetts Ind. Fin. Agcy. Multimodal Rev.:
(Hampshire College Proj.) 2.80%,
LOC Nat'l. Westminster Bank, VRDN 1,000,000 1,000,000
(Regional Family YMCA Proj.) 2.80%,
LOC Nat'l. Westminster Bank, VRDN 180,000 180,000
Massachusetts Ind. Fin. Agcy. Poll Cont. Rev. Bonds:
Rfdg. Series 1992 B:
2.70% tender 8/16/94 1,500,000 1,500,000
3.10% tender 10/14/94 1,500,000 1,500,000
(New England Pwr. Co. Proj.):
Series 1992 B, 3.05% tender 8/5/94 4,000,000 4,000,000
Series 1993 B, 2.60% tender 8/9/94 1,250,000 1,250,000
3.10% tender 8/17/94 3,000,000 3,000,000
Series 1992 B, 3.20%8/8/94 9,000,000 9,000,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev.:
Rfdg. (Hollyoke Wtr. & Pwr. Co. Proj.)
Series 1992 A, 2.70%, LOC Canadian Imperial
Bank of Commerce, VRDN 7,500,000 7,500,000
(Holyoke Wtr. Pwr. Co. Proj.) Series 1990, 2.90%,
LOC Swiss Bank, VRDN (b) 8,700,000 8,700,000
Massachusetts Ind. Fin. Agcy. Resource Recovery Rev.
(Ogden-Haverhill Proj.) Series 1992 A, 2.70%,
LOC Union Bank of Switzerland, VRDN 14,000,000 14,000,000
Massachusetts Ind. Fin. Agcy. Rev. Bonds
(New England Deaconess Assoc.) Series 1993 B,
2.60%, LOC Banque Paribas, VRDN 1,500,000 1,500,000
Massachusetts Ind. Fin. Agcy. Rev.:
Rfdg. (First Healthcare Corp.) Series 1993 B, 3%
LOC Wachovia Bank, VRDN 700,000 700,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Rev. - continued
Rfdg. (Showa Womens Institute Boston Inc. 1994 Proj.)
2.75% LOC Fuji Bank, VRDN $ 3,200,000 $ 3,200,000
(Combined Jewish Philanthropies of Greater Boston, Inc.)
Series 1989 A, 2.80%, LOC Nat'l. Westminster
Bank, VRDN 2,500,000 2,500,000
(General Signal Proj.) 2.90%, LOC Wachovia Bank of
Georgia, VRDN 7,500,000 7,500,000
(Tsubaki Inc.) 3.05%, LOC Sakura Bank, VRDN 3,000,000 3,000,000
(Wheelock College Issue) Series A, 2.95%,
LOC Nat'l. Westminster Bank, VRDN 5,000,000 5,000,000
Massachusets Ind. Fin. Agcy. Poll. Cont. Rev. Rfdg. Bonds
(New England Pwr. Co. Proj.) Series 1993 B, 2.80%
tender 8/24/94 3,000,000 3,000,000
Massachusetts Ind. Fin. Auth. Ind. Dev. Rev. Rfdg.
(First Healthcare Corp. Proj.) Series 1992 A, 3%,
LOC Wachovia Bank of Georgia, VRDN 2,025,000 2,025,000
Massachusetts Ind. Fin. Auth. Poll. Cont. Rev. Bonds
(New England Pwr. Co. Proj.):
Series 1992-B, 2.50% tender 8/12/94 17,100,000 17,100,000
Series 1993 B, 2.70% tender 8/9/94 8,000,000 8,000,000
(Nepco Proj.) Series 1993 B, 2.70%
tender 8/1/94 1,600,000 1,600,000
Massachusetts Ind. Fin. Auth. Poll. Cont. Rev. Rfdg.
Bonds. Series 1992-B, 3.25 tender 8/10/94 4,000,000 4,000,000
Massachusetts Muni. Elec. Wholesale Supply Sys.
Participating VRDN, Series GS-1993 D, 2.90%,
(AMBAC Insured) (Liquidity Facility Hong Kong &
Shanghai Banking Corp.) (c) 6,400,000 6,400,000
Massachusetts Muni. Elec. Auth. Elec. Rev. 13.625%
1/1/95 65,000 65,328
Massachusetts Muni. Wholesale Elec. Auth. Elec. Rev.
13.625% 1/1/95 2,285,000 2,452,972
Massachusetts Tpk. Auth. Participating VRDN,
Series PA-26, 3.05% BPA Merrill Lynch &Co.(c) 4,220,000 4,220,000
Northborough Ind. Fin. Auth. Rev. (Newcor Packaging)
Series 1990 3.05% tender 9/1/94
LOC Barclay's Bank (b) 4,000,000 4,000,000
Northborough Ind. Rev. (Tru Realty Corp. Proj.
Toys "R" Us, Inc) 3.025%,
LOC Bankers Trust, VRDN 2,900,000 2,900,000
Sandwich Non Callable Rev. Rfdg. 3% 11/1/94
(AMBAC Insured) 850,000 850,312
Worcester County BAN 2.95% 8/24/94
LOC State Street Bank & Trust 6,825,000 6,825,832
Worcester Gen. Oblig. 6% 8/1/94 (FSA Insured) 1,375,000 1,375,000
628,834,700
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 0.8%
Babylon Ind. Dev. Agcy. Resource Recovery Rev.
(OFS Equity of Babylon, Inc. Proj.) 2.80%,
LOC Union Bank of Switzerland, VRDN (b) $ 4,600,000 $ 4,600,000
New York City Ind. Dev. Agcy. Ind. Dev. Rev.
(Nippon Cargo Airlines Co.) Series 1992, 2.95%,
LOC Ind. Bank of Japan, VRDN (b) 500,000 500,000
5,100,000
OHIO - 0.4%
Student Loan Fund Corp. Student Loan Rev.,
Series 1990-A2, 2.90%, LOC Natwest, VRDN 3,000,000 3,000,000
PUERTO RICO - 0.8%
Puerto Rico Elec. Pwr. Auth. Participating VRDN, Series K,
2.775%, (Liquidity Facility Bankers Trust) (c) 3,060,000 3,060,000
Puerto Rico Pub. Bldg. Auth. Gtd. Pub. Ed. & Health Facs.
Rev. Rfdg. Bonds 8.875% 7/1/95 2,290,000 2,438,691
5,498,691
SOUTH CAROLINA - 0.4%
South Carolina Jobs Econ. Dev. Auth. Rev.
(Wellman Inc. Proj.):
Series 1990, 2.95%, LOC Wachovia Bank & Trust,
VRDN (b) 1,300,000 1,300,000
Series 1992, 2.95%, LOC Wachovia Bank,
VRDN (b) 1,500,000 1,500,000
2,800,000
TEXAS - 0.7%
Gulf Coast Ind. Dev. Auth. Solid Waste Disp. Rev.
(Citgo Petroleum) 2.90% LOC Wachovia Bank,
VRDN (b) 5,000,000 5,000,000
VIRGINIA - 0.5%
Richmond Ind. Dev. Auth. (I) Rev. (Cogentrix Inc. Proj.)
Series 1990 A, 3%, LOC Banque Paribas,
VRDN (b) 2,500,000 2,500,000
Southampton County Ind. Dev. Auth. Ind. Rev.
(Hadson Pwr. 11 - Southampton Proj.)
Series 1990 A, 2.95%, LOC Credit Suisse,
VRDN (b) 1,000,000 1,000,000
3,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
WASHINGTON - 2.1%
Washington Pub. Pwr. Supply Sys. Elec. Rev. Rfdg.
Series 1993-3A1, 2.85% 7/1/18
LOC Bank of America $ 14,000,000 $ 14,000,000
TOTAL INVESTMENTS - 100% $ 670,733,391
Total Cost for Income Tax Purposes $ 670,733,477
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & 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) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At January 31, 1994, the fund had a capital loss carryforward of
approximately $119,100 of which $54,900 and $64,200 will expire on January
31, 1997 and 1998, respectively.
FIDELITY MASSACHUSETTS TAX-FREE MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1994 (UNAUDITED)
145.ASSETS 146. 147.
148.Investment in securities, at value (Note 1) - See 149. $ 670,733,391
accompanying schedule
150.Cash 151. 1,328,647
152.Interest receivable 153. 3,970,842
154. 155.TOTAL ASSETS 156. 676,032,880
157.LIABILITIES 158. 159.
160.Payable to custodian bank $ 2,245,510 161.
162.Dividends payable 42,783 163.
164.Accrued management fee 233,052 165.
166.Other payables and accrued expenses 169,856 167.
168. 169.TOTAL LIABILITIES 170. 2,691,201
171.172.NET ASSETS 173. $ 673,341,679
174.Net Assets consist of (Note 1): 175. 176.
177.Paid in capital 178. $ 673,469,520
179.Accumulated net realized gain (loss) on 180. (127,917)
investments
181.Unrealized gain from accretion of market discount 182. 76
(Note 1)
183.184.NET ASSETS, for 673,371,609 shares 185. $ 673,341,679
outstanding
186.187.NET ASSET VALUE, offering price and 188. $1.00
redemption price per share ($673,341,679 (divided by)
673,371,609 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
189.190.INTEREST INCOME 191. $ 8,150,050
192.EXPENSES 193. 194.
195.Management fee (Note 4) $ 1,355,704 196.
197.Transfer agent, accounting and custodian fees and 708,253 198.
expenses (Note 4)
199.Non-interested trustees' compensation 4,261 200.
201.Registration fees 1,033 202.
203.Audit 15,880 204.
205.Legal 2,286 206.
207.Reports to shareholders 10,833
208.Miscellaneous 2,578 209.
210. 211.TOTAL EXPENSES 212. 2,100,828
213.214.NET INTEREST INCOME 215. 6,049,222
216.REALIZED AND UNREALIZED GAIN (LOSS)(NOTES 1 218. (8,830)
AND 3)
217.Net realized gain (loss) on investment securities
219.Increase (decrease) in net unrealized gain from 220. 76
accretion
of market discount
221.222.NET GAIN (LOSS) 223. (8,754)
224.225.NET INCREASE IN NET ASSETS RESULTING FROM 226. $ 6,040,468
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1994 JANUARY 31,
(UNAUDITED) 1994
227.INCREASE (DECREASE) IN NET ASSETS
228.Operations $ 6,049,222 $ 9,765,157
Net interest income
229. Net realized gain (loss) (8,830) 28,587
230. Increase (decrease) in net unrealized gain from 76 (7,088)
accretion of market discount
231. 6,040,468 9,786,656
232.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
233.Dividends to shareholders from net interest income (6,049,222) (9,765,157)
234.Share transactions at net asset value of $1.00 per 821,742,591 1,344,601,052
share
Proceeds from sales of shares
235. Reinvestment of dividends from net interest 5,802,617 9,363,840
income
236. Cost of shares redeemed (764,348,952) (1,328,771,708)
237. 63,196,256 25,193,184
Net increase (decrease) in net assets resulting from
share transactions
238. 63,187,502 25,214,683
239.TOTAL INCREASE (DECREASE) IN NET ASSETS
240.NET ASSETS 241. 242.
243. Beginning of period 610,154,177 584,939,494
244. End of period $ 673,341,679 $ 610,154,177
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
245. SIX MONTHS YEAR SIX MONTHS YEARS ENDED JULY 31,
ENDED ENDED ENDED
JULY 31, 1994 JANUARY 31, JANUARY 31,
246. (UNAUDITED) 1994 1993 1992 1991 1990 1989
247.SELECTED PER-SHARE DATA
248.Net asset value, beginning of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
249.Income from Investment
Operations .009 .017 .010 .029 .046 .053 .055
Net interest income
250. Dividends from net interest
income (.009) (.017) (.010) (.029) (.046) (.053) (.055)
251.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
252.TOTAL RETURN B 0.91% 1.71% .99% 2.94% 4.70% 5.42% 5.61%
253.RATIOS AND SUPPLEMENTAL DATA
254.Net assets, end of period
(in millions) $ 673 $ 610 $ 585 $ 601 $ 715 $ 751 $ 651
255.Ratio of expenses to average
net assets .64%A .66% .64%A .65% .60% .57% .60%
256.Ratio of net interest income
to average net assets 1.84%A 1.69% 1.96%A 2.93% 4.60% 5.33% 5.50%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Massachusetts Tax-Free High Yield Portfolio and Fidelity
Massachusetts Tax-Free Money Market Portfolio (the funds) are funds of
Fidelity Massachusetts Municipal Trust (the trust). 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. Each fund is authorized to issue an unlimited number of
shares. The following summarizes the significant accounting policies of the
funds:
SECURITY VALUATION.
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.
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.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to income taxes to
the extent that it distributes all of its taxable income for the fiscal
year. The schedules of investments include 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. For the
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 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
losses deferred due to wash sales and, for the high yield fund, futures and
options transactions. The high yield fund also utilized earnings and
profits distributed to shareholders on redemption of shares as part of the
dividends paid deduction for income tax purposes.
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 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 $170,297,551
and $261,405,199, respectively.
The market value of futures contracts opened and closed amounted to
$553,263,630 and $621,756,841,
respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly basic fee that is calculated on
the basis of a group fee rate plus a fixed individual fund fee rate applied
to the average net assets of each fund. The group fee rate is the weighted
average of a series of rates ranging from .1325% to .37% and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
annual individual fund fee rate is .25%. For the period, the management
fees were equivalent to annual rates of .41% of average net assets for the
high yield and money market funds.
The Board of Trustees has approved a new group fee rate schedule with
ranging from .12% to .37%. Effective August 1, 1994, FMR voluntarily agreed
to implement this new group fee.
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.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans), and in accordance with Rule 12b-1 of the 1940 Act, FMR
or the funds' distributor, Fidelity Distributors Corporation
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN -
CONTINUED
(FDC), an affiliate of FMR, may use their resources to pay administrative
and promotional expenses related to the sale of each fund's shares. Subject
to the approval of each Board of Trustees, the Plans also authorize
payments to third parties that assist in the sale of each fund's shares or
render shareholder support services. FMR or FDC has informed the funds that
payments made to third parties under the Plans amounted to $11,718 and
$15,844 for the high yield and money market funds, respectively, for the
period.
TRANSFER AGENT AND ACCOUNTING FEES. United Missouri Bank, N.A. (the Bank)
is the custodian and transfer and shareholder servicing agent for the
funds. The Bank has entered into a sub-contract with Fidelity Service Co.
(FSC), an affiliate of FMR, under which FSC performs the activities
associated with the funds' transfer and shareholder servicing agent and
accounting functions. The funds pay transfer agent fees based on the type,
size, number of accounts and number of transactions made by shareholders.
FSC pays for typesetting, printing and mailing of all shareholder reports,
except proxy statements. The accounting fee is based on the level of
average net assets for the month plus out-of-pocket expenses. For the
period, FSC received transfer agent and accounting fees amounting to
$501,922 and $187,471 for the high yield fund and $623,924 and $57,864 for
the money market fund, respectively.
Shareholders participating in the Fidelity Ultra Service Account(registered
trademark) Program (the Program) pay a $5.00 monthly fee to Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, for performing
services associated with the Program.
For the period, fees paid to FBSI by shareholders participating in the
Program amounted to $63,600.
5. BANK BORROWINGS.
The funds are permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The funds have established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the funds 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. For
the high yield fund, the maximum loan and the average daily loan balances
during the periods for which loans were outstanding amounted to $5,356,000
and $4,414,500, respectively, and the weighted average interest rate was
3.75%. Interest expense includes $920 paid under the bank borrowing
program.
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
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
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
8180 Greensboro Drive
McLean, 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
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUND
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr. , Vice President -
MONEY MARKET FUND
Thomas J. Steffanci, Vice President -
HIGH YIELD FUND
Guy Wickwire, Vice President -
HIGH YIELD FUND
Jan Bradburn, Vice President -
MONEY MARKET FUND
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
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
Marvin L. Mann*
Edward H. Malone*
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 1-800-544-0118
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)
MASSACHUSETTS
MUNICIPAL
MONEY MARKET
PORTFOLIO
SEMIANNUAL REPORT
JULY 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 9 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 13 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 17 Notes to the financial statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The first half of 1994 was 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.
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance. If Fidelity had not
reimbursed certain fund expenses during the periods shown, the total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND
Spartan Massachusetts
Municipal Money Market Portfolio 0.98% 1.97% 9.66%
Consumer Price Index 1.50% 2.77% 10.09%
Average Massachusetts
Tax-Free Money Market Fund 0.96% 1.91% 9.29%
CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, six months, one year, or since the fund started on March 4,
1991. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, you would end up with $1,050. Comparing the fund's
performance to the consumer price index (CPI) helps show how your
investment did compared to inflation. To measure how the fund stacked up
against its peers, you can compare its return to the average Massachusetts
tax-free money market fund's total return. This average currently reflects
the performance of just 11 Massachusetts 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 JULY 31, 1994 PAST 1 LIFE OF
YEAR FUND
Spartan Massachusetts
Municipal Money Market Portfolio 1.97% 2.74%
Consumer Price Index 2.77% 2.85%
Average Massachusetts
Tax-Free Money Market Fund 1.91% 2.54%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
7/31/93 10/31/93 1/31/94 4/30/94 7/31/94
Spartan Massachusetts 2.05% 2.00% 1.83% 2.30% 2.27%
Municipal Money Market
Portfolio
Average Massachusetts 1.98% 1.92% 1.70% 2.25% 2.31%
Tax-Free Money Market
Fund
Spartan Massachusetts 3.62% 3.55% 3.24% 4.08% 4.02%
Municipal Money Market
Fund - Tax-equivalent
Portion of fund's income 4.70% - 1.00% 1.50% 2.10%
subject to state taxes on last
day of period
Average All Taxable 2.65% 2.66% 2.68% 3.15% 3.83%
Money Market Fund
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the average tax-free money market fund. Or you can
look at the fund's tax-equivalent yield, which is based on a combined
effective 1994 federal and Massachusetts state income tax rate of 43.68%
and reflects that a portion of the fund's income was subject to state
taxes. If the adviser had not reimbursed certain portfolio expenses during
the periods shown, the yield and tax-equivalent yield would have been 1.95%
and 3.44% for the period ended July 31, 1993. 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 WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free
investments are usually lower
than yields on taxable
investments. However, a
straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the
yield you'd have to earn on a
similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Janice Bradburn,
Portfolio Manager of Spartan
Massachusetts Municipal Money
Market Portfolio
Q. JAN, AFTER SEVERAL YEARS OF RELATIVE STABILITY, WE'VE SEEN A LOT OF
ACTIVITY LATELY IN THE MONEY MARKETS. CAN YOU BRING US UP TO DATE?
A. Sure. The watershed was the decision by the Federal Reserve to raise the
federal funds rate - the rate banks charge each other for overnight loans -
one quarter of a percentage point on February 4, 1994. The Fed was
responding to increased economic activity and heightened concerns about
inflation. Later, the Fed tacked on successive quarter-point increases in
March and April, followed by a half-point increase in May to 4.25%. Since
then, rates were stable through the period.
Q. DID TAX-FREE INTEREST RATES RISE WITH THE TIDE?
A. Not as quickly as you might expect. In the municipal market, technical
factors often play as big a role in the movement of interest rates as the
Fed's monetary policy does. That was certainly the case in Massachusetts,
where demand outpaced supply and interest rates on some issues actually
fell following the Fed's move. Variable rate demand notes were affected
most by the surge in demand. Investors seek out VRDNs when interest rates
are rising because the rate they pay adjusts weekly with prevailing rates.
Later, though, as more supply entered the market in the spring, tax-free
rates rose; they've since moved roughly in tandem with taxable rates.
Q. WHAT WAS YOUR STRATEGY IN AN UNSTABLE MARKET?
A. The fund's average maturity was around 60 days at the beginning of the
period. Once interest rates began to rise, I let the average maturity of
the fund roll down by adding more VRDNs and commercial paper, which in this
context refers to securities issued by municipalities to finance capital or
operating needs. Allowing the fund's average maturity to roll down gave me
more flexibility to respond to rising rates. The fund has since settled in
around 25 days.
Q. HOW DID THE FUND PERFORM?
A. On July 31, 1994, the fund's seven-day yield was 2.27%, up from 1.83%
six months ago. The latest yield is the equivalent of a 4.02% yield on a
taxable investment for Massachusetts investors in the combined 43.68%
federal and state tax bracket. The fund's total return for the six months
ended on July 31 was 0.98%. During the same period, the average
Massachusetts tax-free money market fund had a total return of 0.96%,
according to IBC/Donoghue.
Q. WHAT'S THE OUTLOOK?
A. With short-term rates likely to continue rising , I'll continue to take
a cautious approach. That means I'll probably maintain a large percentage
of VRDNs; currently, they're over 71% of the fund's assets. But as more
supply enters the market, I'll also look for opportunities to extend the
fund's average maturity slightly. While now is not the time to lengthen
aggressively, I will try to position the fund more in a more neutral range,
or around 35 days.
FUND FACTS
GOAL: tax-free income and
stability by investing in
high-quality short-term
Massachusetts municipal
securities
START DATE: March 4, 1991
SIZE: as of July 31, 1994,
more than $353 million
MANAGER: Janice Bradburn,
since January 1992; manager,
Fidelity Ohio Municipal Money
Market Portfolio, since October
1993; Fidelity Massachusetts
Municipal Money Market
Portfolio, since 1992; Fidelity
New York Tax-Free Money
Market Portfolio, since
September 1989; Spartan New
York Municipal Money Market
Portfolio, since 1990; joined
Fidelity in 1989
(checkmark)
MONEY MARKETS AND
DERIVATIVES:
The word "derivatives" covers
a wide range of financial
agreements, of varying
degrees of complexity, that
have market values based on
security or market indices. All
"derivative" securities in
Fidelity's money market funds
are designed to have the price
characteristics of typical
money market securities.
During the recent Federal
Reserve Board interest rate
increases, all Fidelity money
market holdings performed as
designed and the funds
maintained a stable share
price of $1.00.
The more complex of these
instruments, such as floating
rate notes with unusual and
complex floating rate
formulas, frequently have too
much price volatility to be
appropriate investments for
money market funds. Many of
them do not offer the degree
of price stability Fidelity
believes is required in order
for its funds to maintain a
stable $1.00 share price.
Therefore, despite their
frequent higher yields at the
time they are sold, Fidelity
money market funds have not
purchased these volatile
securities. While this may
sometimes have caused
Fidelity money market funds
to have lower gross yields
than certain other funds,
Fidelity believes its investors
value prudence as well as
performance.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/94 1/31/94 7/31/93
0 - 30 83 70 79
31 - 90 12 4 10
91 - 180 3 12 6
181 - 397 2 14 5
WEIGHTED AVERAGE MATURITY
7/31/94 1/31/94 7/31/93
Spartan Massachusetts
Money Market Fund 23 days 60 days 33 days
Average Massachusetts
Tax-Free Money 33 days 56 days 38 days
Market Fund*
ASSET ALLOCATION
AS OF JULY 31, 1994 AS OF JANUARY 31, 1994
Row: 1, Col: 1, Value: 71.0
Row: 1, Col: 2, Value: 4.0
Row: 1, Col: 3, Value: 13.0
Row: 1, Col: 4, Value: 9.0
Row: 1, Col: 5, Value: 3.0
Row: 1, Col: 1, Value: 62.0
Row: 1, Col: 2, Value: 4.0
Row: 1, Col: 3, Value: 13.0
Row: 1, Col: 4, Value: 15.0
Row: 1, Col: 5, Value: 6.0
Variable rate
demand notes
(VRDNs) 71%
Commercial
paper 4%
Tender bonds 13%
Municipal
notes 9%
Other 3%
Variable rate
demand notes
(VRDNs) 62%
Commercial
paper 4%
Tender bonds 13%
Municipal
notes 15%
Other 6%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS JULY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
IOWA - 0.1%
Iowa Fin. Auth. Solid Waste Disp. Rev.
(Cedar River Paper Co.) Series 1994 A, 2.90%
LOC Swiss Bank, VRDN (b) $ 500,000 $ 500,000
MASSACHUSETTS - 94.7%
Beverly BAN 3.43% 12/2/94
LOC State Street Bank & Trust Co. 1,774,000 1,776,478
Boston City Hosp. Participating VRDN, Series PT-2,
3%, (Liquidity Facility Bank National De Paris) (c) 500,000 500,000
Boston Gen. Oblig. Participating VRDN (c):
Series 6 A, 3.10%
(Liquidity Facility Morgan Guaranty) 2,400,000 2,400,000
Series 6 C, 3.10%
(Liquidity Facility Morgan Guaranty) 1,800,000 1,800,000
Boston Wtr. & Swr. Commission Gen. Rev., VRDN:
Series 1985 A:
2.80%, LOC Canadian Imperial
Bank of Commerce 8,340,000 8,340,000
2.80%, LOC Canadian Imperial
Bank of Commerce 5,400,000 5,400,000
Clipper Participating VRDN, Series 1993-2,
2.93% (Liquidity Facility State Street Bank & Trust) (c) 15,630,200
15,630,200
Holyoke Poll. Cont. Rev. (Holyoke Pwr. & Light Proj.)
Series 1988, 2.70%, LOC Union Bank of
Switzerland, VRDN 3,400,000 3,400,000
Lincoln BAN 4% 7/6/95 2,500,000 2,506,710
Lowell Cust. Receipts BAN 4.625% 3/1/95
LOC State Street Bank & Trust 2,000,000 2,013,848
Lowell Gen. Oblig. State Qualified Rev. Bonds Series B,
7% 11/1/94 (FSA Insured) 1,000,000 1,010,103
Massachusetts Bay Trans. Auth. RAN:
Series 1993 B:
3.25% 9/30/94 5,500,000 5,502,430
3.50% 9/30/94 9,500,000 9,509,709
Series 1994 A, 3.75% 3/1/95 1,200,000 1,201,498
Massachusetts Convention Center Auth. Bonds (Hynes)
Series 1984 A, 10% 9/1/94 2,000,000 2,051,959
Massachusetts Ed. Fin. Auth. Ed. Loan Rev. Issue E
Series 1994 A, 2.60%, (FGIC Insured), VRDN (b) 5,000,000 5,000,000
Massachusetts Gen. Oblig. BAN Series B, 3.40%
11/22/94 3,000,000 3,003,520
Massachusetts Gen. Oblig. Consolidated Loan Bonds
Series B, 3.50% 10/1/94 1,500,000 1,501,834
Massachusetts Gen. Oblig. Participating VRDN (c):
Series 1993 A, 2.85%, (Liquidity Facility Citibank) 4,000,000 4,000,000
Series 1993 I, 3.15% (Liquidity Facility Citibank) 7,800,000 7,800,000
Series PA-13, 3.05%, (Liquidity Facility
Merrill Lynch & Co. Inc.) 2,000,000 2,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Ed. Facs. Auth. Rev:
(Boston Univ.) Bonds Series H, 2.90% tender 8/11/93,
LOC First Nat'l. Bank of Chicago $ 25,000,000 $ 25,000,000
(Brigham & Women's Hosp.) Series A, 2.70%,
LOC Sanwa Bank, VRDN 2,000,000 2,000,000
(Capital Asset Prog.) VRDN:
Series 1985 D, 2.90%, (MBIA Insured)
BPA Sanwa Bank 21,300,000 21,300,000
Series A, 3.10%, LOC First Nat'l. Bank of Chicago 8,400,000 8,400,000
Series E, 3.05%, LOC Sanwa Bank 9,300,000 9,300,000
Series G-1, 2.55%, (MBIA Insured)
BPA Credit Suisse 5,800,000 5,800,000
(Harvard University):
Bonds 3% tender 10/14/94 2,000,000 2,000,000
Series I, VRDN:
2.75% 31,840,000 31,840,000
2.75% 23,601,000 23,601,000
(MIT) Series G, 2.75%, VRDN 8,000,000 8,000,000
(Mt. Ida College) 2.75%,
LOC Chemical Bank, VRDN 2,900,000 2,900,000
(Wellesley College) Issue B, 2.40%, VRDN 3,300,000 3,300,000
(Williams College) Series E, 2.85%, VRDN 5,500,000 5,500,000
Massachusetts Hsg. Fin. Auth. Participating VRDN(c):
Series 13A, 3.10%
(Liquidity Facility Morgan Guaranty) 2,250,000 2,250,000
Series 13C, 3.10%
(Liquidity Facility Morgan Guaranty) 3,600,000 3,600,000
Massachusetts Hsg. & Fin. Auth. Single Family Hsg.
Rev. Bonds:
Series 25, 2.95% tender 9/1/94,
(GIC Bayerische Landesbanken) 15,500,000 15,500,000
Series 32, 3.20% tender 12/1/94 (b) 1,500,000 1,500,000
Massachusetts Ind. Fin. Agcy. Adj. Rate Rev. Rfdg.
(WGBH Ed. Foundation Proj.) Series 1992, 2.95%,
LOC Nat'l. Westminster Bank, VRDN 2,555,000 2,555,000
Massachusetts Ind. Fin. Agcy. Adj. Tender Resource
Recovery Rev. (Ogden-Haverhill Proj.) Series 1986 B,
2.60%, LOC Union Bank of Switzerland, VRDN (b) 7,750,000 7,750,000
Massachusetts Ind. Fin. Agcy. Hlth. Facs. Rev. Rfdg.
(Meritcare, Inc.) 2.75%,
LOC Pittsburgh Nat'l. Bank, VRDN 300,000 300,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev. Rfdg.
(First Healthcare Corp. Proj.) Series 1992 B, 3%,
LOC Wachovia Bank of Georgia, VRDN 1,130,000 1,130,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev., VRDN:
Rfdg. (Quamco Inc. Proj.):
Series 1988 A, 2.60%, LOC Banca Commerciale
Italiana 730,000 730,000
Series 1988 B, 2.60% LOC Banca Commerciale
Italiana 920,000 920,000
MUNICIPAL SECURITIES (A) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev., VRDN - continued
(Manhasset Bay-Cambridge) Series 1985, 2.75%,
LOC Bank of Tokyo $ 3,900,000 $ 3,900,000
(United Medical Corp.) Series 1992, 2.90%,
LOC Chemical Bank (b) 1,400,000 1,400,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev. Rfdg. Bonds
(New England Pwr. Co. Proj.) Series 1992-B:
3.25 tender 8/10/94 1,000,000 1,000,000
2.50% tender 8/12/94 12,000,000 12,000,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev., VRDN:
Rfdg. (Hollyoke Wtr. & Pwr. Co. Proj.) Series 1992 A,
2.70%, LOC Canadian Imperial Bank of Commerce 1,400,000 1,400,000
(Holyoke Wtr. Pwr. Co. Proj.) Series 1990, 2.90%,
LOC Swiss Bank (b) 2,600,000 2,600,000
Massachusetts Ind. Fin. Agcy. Resource Recovery Rev.
(Ogden-Haverhill Proj.) Series 1992 A, 2.70%,
LOC Union Bank of Switzerland 8,195,000 8,195,000
Massachusetts Ind. Fin. Agcy. Rev., VRDN
Rfdg. (First Healthcare Corp. for Hillhaven Proj.) 3%,
LOC Wachovia Bank of Georgia 1,195,000 1,195,000
(General Signal Proj.) 2.90%,
LOC Wachovia Bank of Georgia 3,000,000 3,000,000
(New England Deaconess Assoc.) Series 1993 B,
2.60%, LOC Banque Paribas 1,000,000 1,000,000
(Tsubaki Inc.) 3.05%, LOC Sakura Bank 1,700,000 1,700,000
Massachusetts Muni. Elec. Wholesale Supply Sys.
Participating VRDN (c):
Series GS-1993 D, 2.90%, (AMBAC Insured) (Liquidity
Facility Hong Kong & Shanghai Banking Corp.) 3,800,000 3,800,000
Series GS-1993 E, 2.90%, (AMBAC Insured) (Liquidity
Facility Hong Kong & Shanghai Banking Corp.) 2,000,000 2,000,000
Massachusetts Muni. Wholesale Elec. Auth. Elec. Rev. Bonds:
Series 1985 A,13.625% 1/1/95 50,000 50,253
13.625% 1/1/95 1,940,000 2,082,611
Massachusetts Tpk. Auth. Participating VRDN,
Series PA-26, 3.05% BPA Merrill Lynch & Co. (c) 3,520,000 3,520,000
Northborough Ind. Fin. Auth. Rev. Bonds
(Newcor Packaging) Series 1990 3.05% tender 9/1/94
LOC Barclay's Bank (b) 2,335,000 2,335,000
Northhampton Gen. Oblig. Bonds 6.50% 9/1/94
(AMBAC Insured) 850,000 852,689
Sandwich Non Callable Rev. Rfdg. Bonds 3% 11/1/94
(AMBAC Insured) 800,000 800,294
Westfield Gen. Oblig. Bonds 6.75% 9/1/94 (FSA Insured) 1,000,000
1,003,284
Worcester County BAN 2.95% 8/24/94
LOC State Street Bank & Trust 5,000,000 5,000,610
330,359,030
MUNICIPAL SECURITIES (A) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
PUERTO RICO - 3.2%
Puerto Rico Elec. Pwr. Auth. Participating VRDN, Series K,
2.775% (Liquidity Facility Banker's Trust) (c) $ 7,140,000 $ 7,140,000
Puerto Rico Hwy. And Trans. Rev. Series 1993 X, 2.60%,
LOC Bank of Switzerland, VRDN 1,000,000 1,000,000
Puerto Rico Ind. Med. Higher Ed. & Environmental Cont.
Facs. Fin. Auth. Rev. (Mendez/Feagm Proj.) Series 1986,
2.80%, LOC Bank of Tokyo, VRDN 1,000,000 1,000,000
Puerto Rico Pub. Bldg. Auth. Gtd. Pub. Ed. & Health
Facs. Rev. Rfdg. Bonds Series E & F, 8.875%
7/1/95 2,000,000 2,129,862
11,269,862
WASHINGTON - 2.0%
Washington Pub. Pwr. Supply Sys. Elec. Rev. Rfdg.
Series 1993-3A1, 2.85%,
LOC Bank of America, VRDN 6,875,000 6,875,000
TOTAL INVESTMENTS - 100% $ 349,003,892
Total Cost for Income Tax Purposes $ 349,004,008
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(d) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(e) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(f) Provides evidence of ownership in one or more underlying municipal
bonds.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1994 (UNAUDITED)
6.ASSETS 7. 8.
9.Investment in securities, at value (Note 1) - See 10. $ 349,003,892
accompanying schedule
11.Cash 12. 2,119,690
13.Interest receivable 14. 2,154,964
15. 16.TOTAL ASSETS 17. 353,278,546
18.LIABILITIES 19. 20.
21.Dividends payable $ 11,647 22.
23.Accrued management fee 155,921 24.
25. 26.TOTAL LIABILITIES 27. 167,568
28.29.NET ASSETS 30. $ 353,110,978
31.Net Assets consist of (Note 1): 32. 33.
34.Paid in capital 35. $ 353,114,669
36.Accumulated net realized gain (loss) on investments 37. (3,716)
38.Unrealized gain from accretion of market discount 39. 25
(Note 1)
40.41.NET ASSETS, for 353,113,244 shares outstanding 42. $ 353,110,978
43.44.NET ASSET VALUE, offering price and redemption 45. $1.00
price per share ($353,110,978 (divided by) 353,113,244 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1994 (UNAUDITED)
46.47.INTEREST INCOME 48. $ 4,607,037
49.EXPENSES 50. 51.
52.Management fee (Note 4) $ 928,050 53.
54.Non-interested trustees' compensation 1,127 55.
56. 57.TOTAL EXPENSES 58. 929,177
59.60.NET INTEREST INCOME 61. 3,677,860
62.REALIZED AND UNREALIZED GAIN (LOSS) ON 64. (4,789)
INVESTMENTS
(NOTES 1 AND 3)
63.Net realized gain (loss) on investment securities
65.Increase (decrease) in net unrealized gain from 66. 25
accretion
of market discount
67.68.NET GAIN (LOSS) 69. (4,764)
70.71.NET INCREASE IN NET ASSETS RESULTING FROM 72. $ 3,673,096
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1994 JANUARY 31,
(UNAUDITED) 1994
73.INCREASE (DECREASE) IN NET ASSETS
74.Operations $ 3,677,860 $ 6,568,377
Net interest income
75. Net realized gain (loss) (4,789) 1,073
76. Increase (decrease) in net unrealized gain from 25 (3,817)
accretion of market discount
77. 78.NET INCREASE (DECREASE) IN NET ASSETS 3,673,096 6,565,633
RESULTING FROM OPERATIONS
79.Dividends to shareholders from net interest income (3,677,860) (6,568,377)
80.Share transactions at net asset value of $1.00 per 280,839,013 427,705,579
share
Proceeds from sales of shares
81. Reinvestment of dividends from net interest income 3,555,703 6,265,299
82. Cost of shares redeemed (278,158,859) (420,743,406)
83. Net increase (decrease) in net assets resulting 6,235,857 13,227,472
from
share transactions
84. 85.TOTAL INCREASE (DECREASE) IN NET ASSETS 6,231,093 13,224,728
86.NET ASSETS 87. 88.
89. Beginning of period 346,879,885 333,655,157
90. End of period $ 353,110,978 $ 346,879,885
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
91. SIX MONTHS YEAR SIX MONTHS YEAR MARCH 4, 1991
ENDED ENDED ENDED ENDED (COMMENCEME
JULY 31, 1994 JANUARY 31, JANUARY 31, JULY 31, NT
OF OPERATIONS) T
O
JULY 31,
92. (UNAUDITED) 1994 1993 1992 1991
93.SELECTED PER-SHARE DATA
94.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.00
beginning of
period
95.Income from Invest .010 .019 .012 .034 .017
ment
Operations
Net interest
income
96. Dividends from net (.010) (.019) (.012) (.034) (.017)
interest income
97.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
98.TOTAL RETURN B 0.98% 1.95% 1.23% 3.45% 1.71%
99.RATIOS AND SUPPLEMENTAL DATA
100.Net assets, end of $ 353,111 $ 346,880 $ 333,655 $ 278,369 $ 122,114
period
(000 omitted)
101.Ratio of expenses .50% .40% .17% .05% -
to A A
average net
assets
102.Ratio of expenses .50% .50% .50% .50% .50%A
to A A
average net assets
before expense
reductions
103.Ratio of net intere 1.98% 1.93% 2.44% 3.29% 4.17%A
st A A
income to average
net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. 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 July 31, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Massachusetts Municipal Money Market Portfolio (the fund) is a fund
of Fidelity Massachusetts Municipal 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. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year.
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. Accretion
of market discount represents unrealized gain until realized at the time of
a security's disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between
the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles.
SECURITY TRANSACTIONS. Security trans-
actions are accounted for as of trade date. Gains and losses on securities
sold are determined on the basis of identified cost.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .50% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $3,807.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to the fund's Distribution and Service
Plan.
TO WRITE FIDELITY
Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0001
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
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
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
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
8180 Greensboro Drive
McLean, 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
Page 22 = BLANK
Do NOT strip-in this type
Page 23 = BLANK
Do NOT strip-in this type
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Janice Bradburn, Vice President
Fred L. Henning, Jr., Vice President
Thomas D. Maher, Assistant
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 AGENTS
United Missouri Bank, N.A.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
FIDELITY'S TAX-FREE
MONEY MARKET FUNDS
California Tax-Free Money Market
Connecticut Municipal Money Market
Massachusetts Tax-Free Money Market
Michigan Municipal Money Market
New Jersey Tax-Free Money Market
New York Tax-Free Money Market
Ohio Municipal Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
Tax-Exempt Money Market
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
