FIDELITY
(registered trademark)
MASSACHUSETTS
TAX-FREE
PORTFOLIOS
SEMIANNUAL REPORT
JULY 31, 1995
CONTENTS
CHECK PAGE NUMBERS !!!
<TABLE>
<CAPTION>
<S> <C> <C>
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 value.
FINANCIAL STATEMENTS 23 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
FIDELITY MASSACHUSETTS TAX-FREE MONEY MARKET PORTFOLIO
PERFORMANCE 27 How the fund has done over time.
FUND TALK 29 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 31 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 32 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 38 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 42 Notes to the financial statements.
</TABLE>
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.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND
MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for 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, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value). You can also look at the fund's
income to measure performance.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED JULY 31, 1995 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Massachusetts Tax-Free High Yield Portfolio 6.55% 6.47% 46.68% 124.93%
Lehman Brothers Municipal Bond Index 7.61% 7.87% 47.93% 142.33%
Average Massachusetts Municipal Bond Fund 6.29% 6.16% 45.25% 116.22%
Consumer Price Index 1.46% 2.76% 16.95% 41.47%
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or ten
years. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. You can
compare the fund's returns to the performance of the Lehman Brothers
Municipal Bond Index - a broad gauge of the municipal bond market. To
measure how the fund's performance stacked up against its peers, you can
compare it to the average Massachusetts tax-exempt municipal bond fund,
which reflects the performance of 48 Massachusetts municipal bond funds
with similar objectives tracked by Lipper Analytical Services over the past
six months. Both benchmarks include reinvested dividends and capital gains,
if any. Comparing the fund's performance to the consumer price index (CPI)
helps show how your fund did compared to inflation. (The CPI returns begin
on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Massachusetts Tax-Free High Yield Portfolio 6.47% 7.96% 8.44%
Lehman Brothers Municipal Bond Index 7.87% 8.15% 9.25%
Average Massachusetts Municipal Bond Fund 6.16% 7.75% 8.01%
Consumer Price Index 2.76% 3.18% 3.53%
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 10 YEARS
Mass Free High Municipal Bond I
07/31/85 10000.00 10000.00
08/31/85 9940.13 9930.20
09/30/85 9811.13 9830.60
10/31/85 10095.64 10167.49
11/30/85 10379.46 10532.20
12/31/85 10538.33 10624.78
01/31/86 11072.60 11250.58
02/28/86 11479.49 11696.78
03/31/86 11548.27 11700.52
04/30/86 11487.22 11709.41
05/31/86 11297.92 11518.78
06/30/86 11380.37 11628.67
07/31/86 11481.74 11699.26
08/31/86 11911.72 12223.04
09/30/86 11941.20 12253.72
10/31/86 12134.29 12465.34
11/30/86 12304.60 12712.28
12/31/86 12318.02 12677.19
01/31/87 12584.00 13058.90
02/28/87 12680.10 13123.15
03/31/87 12639.43 12984.04
04/30/87 12003.22 12332.50
05/31/87 11850.18 12271.34
06/30/87 12053.99 12631.62
07/31/87 12227.98 12760.46
08/31/87 12271.16 12789.18
09/30/87 11773.03 12317.64
10/31/87 11616.01 12361.24
11/30/87 11916.87 12684.00
12/31/87 12162.86 12868.04
01/31/88 12545.91 13326.40
02/29/88 12690.10 13467.26
03/31/88 12468.63 13310.37
04/30/88 12570.22 13411.52
05/31/88 12637.44 13372.77
06/30/88 12774.01 13568.41
07/31/88 12864.39 13656.88
08/31/88 12908.60 13668.89
09/30/88 13096.51 13916.30
10/31/88 13333.10 14161.92
11/30/88 13256.21 14032.20
12/31/88 13460.77 14175.75
01/31/89 13653.44 14468.90
02/28/89 13564.00 14303.81
03/31/89 13573.83 14269.63
04/30/89 13907.31 14608.39
05/31/89 14154.82 14911.80
06/30/89 14275.59 15114.31
07/31/89 14385.11 15320.01
08/31/89 14329.31 15170.03
09/30/89 14274.50 15124.52
10/31/89 14409.72 15309.04
11/30/89 14613.83 15576.95
12/31/89 14705.44 15704.68
01/31/90 14633.38 15630.87
02/28/90 14814.57 15769.98
03/31/90 14839.99 15774.71
04/30/90 14645.14 15661.13
05/31/90 14963.75 16002.55
06/30/90 15120.54 16143.37
07/31/90 15334.25 16380.68
08/31/90 15150.30 16143.16
09/30/90 15201.04 16152.84
10/31/90 15252.94 16445.21
11/30/90 15724.30 16775.76
12/31/90 15791.35 16849.57
01/31/91 15986.47 17075.35
02/28/91 16109.09 17223.91
03/31/91 16189.34 17230.80
04/30/91 16413.73 17459.97
05/31/91 16579.08 17615.36
06/30/91 16611.82 17597.75
07/31/91 16852.53 17812.44
08/31/91 17006.07 18047.56
09/30/91 17162.39 18282.18
10/31/91 17315.37 18446.72
11/30/91 17361.23 18498.37
12/31/91 17576.65 18896.09
01/31/92 17729.55 18939.55
02/29/92 17786.05 18945.23
03/31/92 17803.59 18952.81
04/30/92 17961.70 19121.49
05/31/92 18157.74 19347.12
06/30/92 18459.70 19672.15
07/31/92 18956.04 20262.32
08/31/92 18717.56 20063.75
09/30/92 18876.92 20194.16
10/31/92 18558.01 19996.26
11/30/92 19027.73 20354.19
12/31/92 19209.27 20561.81
01/31/93 19491.70 20800.32
02/28/93 20162.29 21553.29
03/31/93 19979.91 21324.83
04/30/93 20163.50 21540.21
05/31/93 20300.27 21660.84
06/30/93 20620.09 22022.57
07/31/93 20605.70 22051.20
08/31/93 21035.67 22509.87
09/30/93 21394.97 22766.48
10/31/93 21447.56 22809.73
11/30/93 21271.34 22609.01
12/31/93 21691.29 23086.06
01/31/94 21941.96 23349.24
02/28/94 21482.81 22744.50
03/31/94 20558.34 21818.79
04/30/94 20627.62 22004.25
05/31/94 20830.70 22195.69
06/30/94 20733.70 22066.96
07/31/94 21125.53 22470.78
08/31/94 21218.52 22549.43
09/30/94 20873.17 22217.95
10/31/94 20452.96 21822.47
11/30/94 19875.75 21427.49
12/31/94 20373.85 21898.89
01/31/95 21110.25 22525.20
02/28/95 21701.63 23180.68
03/31/95 21992.44 23447.26
04/30/95 22003.11 23475.40
05/31/95 22691.65 24224.26
06/30/95 22341.63 24013.51
07/31/95 22492.87 24233.00
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity
Massachusetts Tax-Free High Yield Portfolio on July 31, 1985. As the chart
shows, by July 31, 1995, the value of your investment would have grown to
$22,493 - a 124.93% 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
$24,233 - a 142.33% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. Bond prices, for
example, generally 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,
1995 1995 1994 1993 1992 1991
Dividend return 3.12% 5.85% 6.32% 6.67% 7.08% 7.55%
Capital appreciation
return 3.43% -9.64% 6.25% 3.27% 3.82% 1.70%
Total return 6.55% -3.79% 12.57% 9.94% 10.90% 9.25%
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
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED JULY 31, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 5.55(cents) 33.30(cents) 68.21(cents)
Annualized dividend rate 5.82% 6.01% 6.21%
30-day annualized yield 5.74% - -
30-day annualized tax-equivalent yield 10.19% - -
</TABLE>
DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $11.22 over
the past month, $11.18 over the past six months and $10.98 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 1995 federal and state tax bracket.
FIDELITY MASSACHUSETTS TAX-FREE HIGH YIELD PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
NOTICE TO SHAREHOLDERS:
Guy Wickwire - who managed Fidelity Massachusetts Tax-Free High Yield
Portfolio - has left
Fidelity. The following is an interview about the fund's performance with
Boyce Greer (right photo) the head of Fidelity's tax-free bond fund group.
Steve Harvey (left photo) became manager of the fund effective August 24,
1995. At the end of this report, Mr. Harvey discusses his outlook for the
municipal bond market and the Massachusetts economy.
Q. BOYCE, HOW DID THE FUND PERFORM?
B.G. A little bit better than average. For the six- and 12-month periods
ended July 31, 1995, the fund had total
returns of 6.55% and 6.47%, respectively. For the same six- and 12- month
periods, the average Massachusetts municipal bond fund returned 6.29% and
6.16%, respectively, as tracked by Lipper Analytical Services.
Q. HASN'T THE MUNICIPAL BOND MARKET BEEN UNUSUALLY STRONG OVER THE PAST SIX
MONTHS?
B.G. Yes, in fact the municipal bond market enjoyed one of its strongest
rallies of the decade during the first part of the year. The market was
particularly strong during the first quarter of 1995 and municipal bonds
topped the charts as the best performing fixed-income category during that
period. After hitting their lows late last year, municipal bond prices
steadily improved as investors perceived that the threat of higher interest
rates was slowly fading. However, in April, municipals began to lag
Treasury securities. Investors were worried that some elements contained in
various federal tax reform proposals might reduce the appeal of municipal
bonds. The rally in municipals was further stalled when Orange County,
California, continued to experience problems related to its bankruptcy.
While this last development didn't directly affect shareholders, it's
important to understand that it cast a shadow over the municipal market.
Q. WHAT WAS THE KEY TO THE FUND'S PERFORMANCE?
Photo of
Boyce Greer
to come
from WTC
B.G. One important factor was the fund's duration - which measures how
sensitive its share price is to changes in interest rates. During most of
the first half of the period, the fund's duration was long relative to
other funds of its type. Generally speaking, the longer a fund's duration,
the more its share price will rise when interest rates fall, and,
conversely, fall when interest rates rise. As rates declined, having a
longer duration helped the fund's performance.
Q. WAS THAT STRATEGY MODIFIED DURING THE PERIOD?
B.G. Yes, the fund's duration was shortened because the yield curve, or the
difference in yields among bonds of various maturities, was relatively flat
between bonds with 10- and 30-year maturities. When the curve is flat,
investors aren't rewarded with much additional yield by investing in very
long-maturity bonds. So some bonds with maturities of 20 years or longer
were sold and replaced with bonds in the five- to 15-year maturity range.
The yield curve later steepened, and the values of shorter-term bonds
generally rose more than longer-term bonds, so that strategy helped the
fund's performance. After the steepening had occurred, longer-term bonds
once again offered a significant yield advantage over shorter-term bonds,
and the fund again moved toward owning more longer-term bonds.
Q. WHAT OTHER CHANGES WERE MADE DURING THE PERIOD?
B.G. During the early part of the period there was a very limited supply of
lower-quality bonds available, yet they were in relatively high demand.
Limited supply and heavy demand translated into generally higher prices in
the lower-quality sector of the market. That also meant that there was
little difference in the yields between higher- and lower-quality bonds.
So, one change that was made during the period was an improvement in the
overall credit quality of the fund that was accomplished by the sale of
some lower-quality securities, and the simultaneous purchase of some
investment-grade bonds rated Aaa, Aa and A by Moody's Investors Service.
Because the yield spread, or difference in yields between higher- and
lower-quality bonds was narrow, investors didn't have to give up a lot of
yield to improve the fund's overall credit quality.
Q. WHAT TYPES OF LOWER-QUALITY BONDS WERE SOLD?
B.G. Primarily health care bonds. These bonds are attractive because of
their relatively high yields and they help generate an above-average level
of income for the fund. However, the competition among health care
organizations in the state continues to grow more fierce. So we constantly
re-evaluate the fund's health care holdings, weeding out those that we
think may face a tougher road in a more competitive environment and hanging
onto those that can withstand it.
Q. STEVE, AFTER HAVING SUCH A STRONG RUN IN THE FIRST HALF OF 1995, WHAT'S
THE OUTLOOK FOR MUNICIPAL BONDS GOING FORWARD?
S.H. There are a number of things to consider. First is the interest rate
environment. For the balance of the year, I don't think that interest rates
will fall as dramatically as they did in the first half. Rather, interest
rates will probably remain within a narrow band. Therefore, it's unlikely
that bond prices will rise much either. With that in mind, the fund's
returns will probably derive largely from its level of income, rather than
bond price appreciation. Continued talk of tax reform could add some
volatility to the municipal bond market. But my view is that the chances
that a flat tax will be enacted are remote. On a more positive note, the
supply of municipal bonds should remain low. Combined with flat or lower
interest rates, and at least constant demand, a limited supply could help
the municipal bond market for the remainder of the year.
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, 1995,
more than $1 billion
MANAGER: Steven Harvey, as
of August 24, 1995: manager,
Fidelity Ohio Tax-Free High
Yield Portfolio, since 1994;
Fidelity Minnesota Tax-Free,
Spartan Maryland Municipal
Income and Spartan
Pennsylvania Portfolios, since
1993; joined Fidelity in 1986
(checkmark)
STEVEN HARVEY'S OUTLOOK FOR THE
MASSACHUSETTS ECONOMY:
"Massachusetts' economy will
ultimately help dictate the
overall credit quality of the
bonds issued in the state.
That said, it looks like the
state's economy is back on its
feet after experiencing a very
rough time early in the
decade. Last year was the
first time since 1990 that the
Massachusetts
unemployment rate fell below
that of the nation as a whole.
A driving force in that
improvement was the growth
in service sector jobs, which
make up one-third of the
employment base now,
compared to only one-fourth
in 1980. The state's
transformation from being
largely a manufacturing state
to one that is more
concentrated in the service
sector may help it be more
resilient to the economy's ups
and downs. However, most of
the recent job gains have
come from the health care
sector. But as health care
organizations contract, these
recent job gains may be lost
over the years to come.
Another positive is
Massachusetts' large number
of universities which, attract a
fair amount of research
money to the state. Those
funds could help plant the
seeds for future economic
improvement generated by
high-growth industries like
biotech."
FIDELITY MASSACHUSETTS TAX-FREE HIGH YIELD PORTFOLIO
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF JULY 31, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
Health Care 33.1 36.9
General Obligation 12.5 13.2
Education 10.7 9.9
Water & Sewer 10.2 9.9
Electric Revenue 9.3 7.4
AVERAGE YEARS TO MATURITY AS OF JULY 31, 1995
6 MONTHS AGO
Years 18.9 19.5
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF JULY 31, 1995
6 MONTHS AGO
Years 8.5 8.1
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1995 AS OF JANUARY 31, 1995
Aaa 25.2%
Aa, A 45.6%
Baa 11.0%
Ba, B 2.4%
Non-rated 12.8%
Short-term
investments 3.0%
Aaa 22.9%
Aa, A 43.1%
Baa 11.3%
Ba, B 2.8%
Non-rated 16.6%
Short-term
investments 3.3%
Row: 1, Col: 1, Value: 25.2
Row: 1, Col: 2, Value: 45.6
Row: 1, Col: 3, Value: 11.0
Row: 1, Col: 4, Value: 2.4
Row: 1, Col: 5, Value: 12.8
Row: 1, Col: 6, Value: 3.0
Row: 1, Col: 1, Value: 22.9
Row: 1, Col: 2, Value: 43.1
Row: 1, Col: 3, Value: 11.3
Row: 1, Col: 4, Value: 2.8
Row: 1, Col: 5, Value: 16.6
Row: 1, Col: 6, Value: 3.3
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED DEBT SECURITIES THAT ARE
EQUIVALENT TO BA AND BELOW ACCOUNT FOR 10.1% AND 12.8% OF THE FUND'S
INVESTMENTS AT JULY 31, 1995, AND JANUARY 31, 1995, RESPECTIVELY.
FIDELITY MASSACHUSETTS TAX-FREE HIGH YIELD PORTFOLIO
INVESTMENTS JULY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL BONDS - 97.0%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - 96.9%
Amherst Gen. Oblig.:
6.50% 1/15/08 Aa $ 795,000 $ 858,600
6.50% 1/15/09 Aa 770,000 806,575
6.50% 1/15/10 Aa 750,000 785,625
Barnstable Ind. Dev. Fing. Auth. Ind. Dev. Rev.
(Whitehall Pavilion Health Proj.) 10.125%
2/15/26 (FHA Guaranteed) A 3,075,000 3,171,094
Bellingham Gen. Oblig.:
7.50% 7/1/06 A 310,000 350,688
7.50% 7/1/07 A 310,000 350,688
7.50% 7/1/08 A 310,000 350,688
7.50% 7/1/09 A 310,000 342,938
7.50% 7/1/10 A 310,000 342,163
7.50% 7/1/11 A 300,000 330,375
Boston Econ. Dev. & Ind. Corp. Rev. (Boston
Army Base 1983 Proj.) 6.25% 8/1/03 AA 4,960,000 5,127,400
Boston Gen. Oblig. Series A,
4.875% 9/1/09 (FSA Insured) Aaa 1,000,000 912,500
Boston Hsg. Dev. Corp. Mtg. Rev. Rfdg.
Section 8, Series A, 5.15% 7/1/08
(FHA Guaranteed) (MBIA Insured) Aaa 3,395,000 3,204,031
Boston Ind. Dev. Fing. Auth. Ind. Rev.
(Massachusetts College of Pharmacy Proj. A):
5.25% 10/1/14 AAA 2,400,000 2,160,000
5.25% 10/1/26 AAA 1,000,000 871,250
Boston Ind. Dev. Rev. (North End Commty. Nursing
Home) 11.45% 3/15/25 (FHA Guaranteed) AA 4,820,000 5,524,925
Boston Wtr. & Swr. Commission Gen. Sr. Series A:
5.40% 11/01/08 A 1,000,000 971,250
5.75% 11/1/13 A 10,025,000 9,749,313
5.25% 11/1/19 A 28,100,000 25,079,226
Bourne Gen. Oblig. Unltd. Tax
(Land Acquisition Loan):
8% 12/15/04 Baa1 290,000 330,963
8% 12/15/05 Baa1 290,000 333,500
8% 12/15/06 Baa1 290,000 333,863
8% 12/15/07 Baa1 290,000 333,863
Brockton Gen. Oblig.:
7.75% 12/15/96 Baa 3,000,000 3,084,720
6.125% 6/15/18 Baa 1,000,000 966,250
Brockton Hsg. Dev. Corp. Multi-Family Hsg. Rev.
Rfdg. (Douglas House Proj.) Series 1992 A,
7.375% 9/1/24 (FNMA Coll.) AAA 8,390,000 8,736,088
Chelsea Gen. Oblig. School Proj. Loan Act 1948:
6.50% 6/15/12 (AMBAC Insured) Aaa 1,500,000 1,558,125
6% 6/15/14 (AMBAC Insured) Aaa 1,830,000 1,820,850
Dedham-Westwood Gen. Oblig.Wtr. Dist. Rfdg.:
5.10% 10/15/12 (MBIA Insured) Aaa 1,000,000 905,000
5.15% 10/15/16 (MBIA Insured) Aaa 1,250,000 1,117,188
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Dighton & Rehoboth Gen. Oblig.
Reg'l. School Dist.:
5.40% 5/15/10 (AMBAC Insured) Aaa $ 385,000 $ 362,863
5.40% 5/15/11 (AMBAC Insured) Aaa 185,000 173,900
5.40% 5/15/12 (AMBAC Insured) Aaa 225,000 210,094
Framingham Hsg. Dev. Corp. Mtg. Rev.
(Claffin House) Series A, 6.95% 1/1/24 AAA 1,820,000 1,858,675
Granville Gen. Oblig.:
7.30% 7/15/05 (MBIA Insured) Aaa 145,000 168,563
7.30% 7/15/06 (MBIA Insured) Aaa 145,000 169,106
7.30% 7/15/07 (MBIA Insured) Aaa 140,000 163,450
7.30% 7/15/08 (MBIA Insured) Aaa 140,000 163,275
Halifax Gen. Oblig.:
6.20% 6/1/10 (AMBAC Insured) Aaa 325,000 338,406
6.25% 6/1/11 (AMBAC Insured) Aaa 325,000 338,000
6.30% 6/1/12 (AMBAC Insured) Aaa 325,000 338,000
6.30% 6/1/13 (AMBAC Insured) Aaa 325,000 338,000
Haverhill Rfdg. Series A:
6.40% 9/1/03 (AMBAC Insured) Aaa 1,600,000 1,730,000
6.50% 9/1/04 (AMBAC Insured) Aaa 1,595,000 1,724,594
Holyoke Gen. Oblig. 7% 11/1/08 Baa 1,000,000 1,068,750
Holyoke Gen. Oblig. School Proj. Loan Act:
7.35% 8/1/02 Baa 2,270,000 2,494,163
7.65% 8/1/09 Baa 2,205,000 2,359,350
Hudson Gen. Oblig. Ltd. Tax:
7.50% 8/15/01 A 215,000 240,263
7.50% 8/15/02 A 215,000 239,456
7.50% 8/15/03 A 215,000 240,531
Lawrence Gen. Oblig.:
5.125% 9/15/03 Baa 500,000 491,250
5.25% 9/15/04 Baa 500,000 490,625
Lawerence Ltd. Tax
4.75% 2/15/14 (AMBAC Insured) Aaa 6,250,000 5,359,375
Leicester Gen. Oblig. Unltd. Tax:
5% 1/15/11 (MBIA Insured) Aaa 515,000 471,225
5.10% 5/15/13 (MBIA Insured) Aaa 305,000 279,075
5.10% 1/15/14 (MBIA Insured) Aaa 500,000 456,250
Leominster Gen. Oblig. 7.50% 4/1/09,
(MBIA Insured) Aaa 2,300,000 2,633,500
Lowell Gen. Oblig.:
Rfdg. Series A, 5.50% 1/15/10
(FSA Insured) Aaa 2,000,000 1,925,000
Series B, 5.60% 11/1/12 (FSA Insured) Aaa 2,500,000 2,409,375
Lot B, Ltd. Tax:
7.40% 11/15/00 Baa 205,000 226,013
7.50% 11/15/01 Baa 200,000 220,000
7.50% 11/15/02 Baa 200,000 219,250
7.60% 11/15/03 Baa 200,000 219,250
7.60% 11/15/04 Baa 200,000 218,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Lowell Gen. Oblig. - continued
8% 1/15/00 Baa1 $ 1,245,000 $ 1,395,956
5.80% 4/1/08 (Cap. Guaranty Insured) Aaa 1,195,000 1,211,431
8.40% 1/15/09 Aaa 1,250,000 1,437,500
Lowell Hsg. Dev. Corp. Multi-Family Rev.:
Rfdg. Series A, 7.875% 11/1/24
(FNMA Coll.) AAA 5,440,000 5,746,000
7.875% 11/1/00 (FNMA Coll.) AAA 760,000 798,000
Lynn Gen. Oblig. Rfdg.
5.25% 1/15/11 (FSA Insured) Aaa 5,570,000 5,131,363
Lynn Wtr. & Swr. Commission Rev. Rfdg.:
5.35% 12/1/07 (FGIC Insured) Aaa 760,000 759,050
5.40% 12/1/08 (FGIC Insured) Aaa 805,000 803,994
5.45% 12/1/09 (FGIC Insured) Aaa 850,000 833,000
5.50% 12/1/10 (FGIC Insured) Aaa 500,000 489,375
Massachusetts Bay Trans. Auth.Rev. :
Rfdg. (Gen. Trans. Sys.) Series A:
5.50% 3/1/09 A1 6,000,000 5,947,500
5.50% 3/1/12 A1 4,350,000 4,235,813
(Gen. Trans. Sys.) Series A:
5.70% 3/1/09 A1 5,000,000 5,012,500
7% 3/1/21 A1 1,500,000 1,710,000
Series B, 6.20% 3/1/16 A1 5,000,000 5,181,250
Massachusetts Gen. Oblig.:
(Consolidated Loan):
Series A:
5.40% 11/1/06 A1 1,000,000 1,016,250
5% 1/1/10 (FGIC Insured) Aaa 3,000,000 2,767,500
Series B, 0% 7/1/02 A1 12,250,000 8,758,750
Series C:
7.25% 12/1/00 (FGIC Insured) Aaa 2,000,000 2,195,000
(Cap. Appreciation) 0% 12/1/05 A1 6,500,000 3,826,875
Rfdg. Series A:
6.25% 7/1/02 A1 5,115,000 5,517,806
5.25% 2/1/08 A1 5,000,000 4,887,500
Rfdg. Series B, 6.50% 8/1/08 A1 1,000,000 1,102,500
Massachusetts Health & Edl. Facs. Auth. Rev.:
Rfdg. (Boston College):
Series K:
5.25% 6/1/09 A1 2,980,000 2,827,275
5.25% 6/1/10 A1 3,025,000 2,851,063
5.375% 6/1/14 A1 10,445,000 9,726,906
5.25% 6/1/23 A1 13,000,000 11,472,500
Rfdg. (Massachusetts Gen. Hosp.) Series F,
6.25% 7/1/12 (AMBAC Insured) Aaa 4,750,000 4,928,125
Rfdg. (Wheaton College) 5.125%7/1/09 A 1,130,000 1,036,775
(1st Mtg.) (Fairview Extended Care)
Series A, 10.25% 1/1/21 - 10,000,000 11,275,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl. Facs. Auth. Rev. - continued
(Anna Jaques Hosp.) Series B:
5.90% 10/1/99 Baa1 $ 930,000 $ 936,975
6% 10/1/00 Baa1 985,000 993,619
6.875% 10/1/12 Baa1 3,250,000 3,245,938
(Baystate Medical Center) Series D 5%
7/1/12 (FGIC Insured) Aaa 1,500,000 1,363,125
(Beth Israel Hosp.) 6% 7/1/25
(AMBAC Insured) Aaa 20,000,000 19,675,000
(Blood Institute) Series A, 6.50% 2/1/22 - 15,770,000 15,770,000
(Boston Univ.) Series K, 3.95% 8/10/95
(MBIA Insured) Aaa 5,000,000 5,000,000
(Cape Cod Health Sys.) Series A, 5.25%
11/15/13 (Connie Lee Insured) AAA 3,500,000 3,176,250
(Cardinal Cushing Gen. Hosp.)
Series A, 8.50% 7/1/00 - 800,000 816,000
(Central Massachusetts Med. Ctr.) Series B,
8.88% 6/23/22 (AMBAC Insured)
INFL (e) Aaa 10,000,000 10,900,000
(Emerson Hosp.) Series C, 8% 7/1/18 Baa1 22,545,000 23,728,613
(Falmouth Hosp.) Series C, 5.50% 7/1/08,
(MBIA Insured) Aaa 1,000,000 1,001,250
(Faulkner Hosp.) Series C:
6% 7/1/13 Baa1 8,995,000 8,264,156
6% 7/1/23 Baa1 6,605,000 5,820,656
(Hebrew Rehabilitation Ctr. For Aged)
Series B:
7% 7/1/97 A- 735,000 758,888
7.375% 7/1/17 A- 14,000,000 14,577,500
(Lowell Gen. Hosp.) Series A:
8.25% 6/1/00 Baa1 2,955,000 3,198,788
8.40% 6/1/11 Baa1 2,565,000 2,831,119
(Medical, Academic, & Scientific Commty.
Organizations) Series A, 6.625%
1/1/15 A- 4,150,000 4,196,688
(Melrose-Wakefield Hosp.)
Series B, 6.25% 7/1/12 A- 1,000,000 963,750
(Milford-Whitinsville Reg'l. Hosp.) Series B:
7.125% 7/15/02 Ba1 3,100,000 3,158,125
7.75% 7/15/17 Ba1 12,400,000 12,694,500
(Morton Hosp. & Med. Ctr.) Series B:
5.25%7/1/08 (Connie Lee Insured) AAA 2,800,000 2,695,000
5.25%7/1/14 (Connie Lee Insured) AAA 2,415,000 2,182,556
5.50% 7/1/23 (Connie Lee Insured) AAA 1,250,000 1,132,813
(Mt. Auburn Hosp.) Issue Series B-1 6.25%
8/15/14 (MBIA Insured) Aaa 1,250,000 1,270,313
(Newton-Wellesley Hosp.) Issue C, 8%
7/1/18 (MBIA Insured) Aaa 500,000 551,875
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl. Facs. Auth. Rev. - continued
(Notre Dame Health Care Ctr.) Series A:
7.25% 10/1/01 - $ 780,000 $ 819,975
7.875% 10/1/22 - 5,000,000 5,150,000
(Simmons College) Series B, 7.50%
10/1/20 Baa1 6,190,000 6,723,888
(Sisters of Providence Health Sys.) Series A:
6.50% 11/15/08 Baa1 1,300,000 1,304,875
6.625% 11/15/22 Baa1 7,185,000 6,942,506
(St. Anne's Hosp.) Series A:
9.25% 7/1/05 Ba 1,270,000 1,276,350
9.375% 7/1/14 Ba 9,170,000 9,238,775
(St. Lukes Hosp. New Bedford)
5.84% 8/15/23 (MBIA Insured) Aaa 20,000,000 19,375,000
(Tufts Univ.):
Series C, 7.40% 8/1/08 A1 1,000,000 1,085,000
6.13% 8/15/18 (FGIC Insured) INFL (e) Aaa 7,900,000 7,297,625
(Wellesley College) Series D:
5.30% 7/1/14 Aa1 5,400,000 4,974,750
5.375% 7/1/19 Aa1 7,015,000 6,418,725
(Wentworth Institute of Technology) Series B:
5.625% 10/1/13 AAA 2,000,000 1,900,000
5.50% 10/1/23 (Connie Lee Insured) AAA 3,000,000 2,718,750
(Wheaton College) Series C:
5.25% 7/1/14 A 2,655,000 2,389,500
5.25% 7/1/19 A 2,000,000 1,765,000
(Whidden Mem. Hosp.) Series B:
7.375% 7/1/98 - 710,000 734,850
7.875% 7/1/12 - 6,530,000 6,660,600
(Williams College) Series D, 5.50%
7/1/17 Aa1 4,000,000 3,710,000
Massachusetts Hsg. Fin. Agcy. (Hsg. Proj.)
Series A, 6.15% 10/1/15
(AMBAC Insured) Aaa 1,000,000 975,000
Massachusetts Hsg. Fin. Agcy. Hsg. Rev.:
(Multi-Family) Series 1985 A, 9.25%
12/1/14 (MBIA Insured) Aaa 1,950,000 2,023,125
(Single Family):
Series 3, 7.30% 6/1/14 Aa 6,000,000 6,247,500
Series 8, 7.70% 6/1/17 Aa 500,000 527,500
Series 10, 7.70% 12/1/17 Aa 785,000 818,363
Series 16:
7.80% 12/1/05 Aa 910,000 952,088
7.90% 6/1/14 Aa 930,000 975,338
Series 1985 A:
9.375% 12/1/09 Aa 395,000 407,344
9.50% 12/1/16 Aa 2,505,000 2,589,544
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Ind. Rev.:
Rfdg. (Beverly Enterprises, Inc.) 8% 5/1/02 - $ 1,075,000 $ 1,116,656
Rfdg. (Chelsea Jewish Nursing Home)
Series A, 11.15% 2/15/25
(FHA Guaranteed) A- 3,590,000 4,195,813
Rfdg. (Inner Belt Realty Trust Proj.)
Series 1985, 9.50% 12/1/98 - 1,708,523 1,796,086
(Beverly Enterprises, Inc.) 8.375% 5/1/09 - 1,875,000 1,992,188
(Meadow Green Nursing Home) 9.60%
8/1/27 (FHA Guaranteed) AA 3,860,000 4,043,350
Massachusetts Ind. Fin. Agcy. Health Care
Facs. Rev. (Hampden Nursing Home Proj.)
Series A, 9.75% 10/1/17 - 11,910,000 8,337,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev.
Rfdg.:
(Boston Edison Co. Proj.) Series A,
5.75% 2/1/14 Baa2 5,900,000 5,464,875
(Eastern Edison Co. Proj.) 5.875% 8/1/08 Baa2 10,750,000 10,306,563
Massachusetts Ind. Fin. Agcy. Rev.:
Rfdg. (Emerson College) Series A:
8.50% 1/1/03 - 5,500,000 6,111,875
8.90% 1/1/18 - 11,250,000 12,515,625
Rfdg. (Framingham Union Hosp.) Series A:
8.25% 7/1/00 Baa1 2,945,000 3,143,788
8.625% 7/1/12 Baa1 14,645,000 15,834,906
Rfdg. (Lesley College) Series A, 6.30%
7/1/15 Aaa 2,525,000 2,566,031
Rfdg. (Milton Academy) Series B, 5.25%
9/1/19 (MBIA Insured) Aaa 3,000,000 2,681,250
Rfdg. (Philips Academy) 5.375% 9/1/23 Aa1 14,800,000 13,616,000
(1st Mtg. Reeds Landing):
7.75% 10/1/00 - 2,500,000 2,481,250
8.625% 10/1/23 - 7,500,000 7,481,250
(Atlanticare Med. Ctr.):
Series A, 10.125% 11/1/14 - 1,900,000 1,748,000
Series B, 10.125% 11/1/14 - 8,600,000 7,912,000
(Babson College) Series A:
5.60% 10/1/06 (MBIA Insured) Aaa 515,000 533,025
5.70% 11/1/07 (MBIA Insured) Aaa 545,000 562,713
(Brandon Residential Treatment Proj.)
8.75% 2/1/24 - 5,360,000 5,473,900
(Boston Architectural Ctr. Proj.) 8.50% 9/1/19 - 3,645,000 3,922,931
(Massachusetts Biomedical Research):
(Cap. Appreciation) Series A-2, 0% 8/1/07 A1 25,000,000 12,000,000
Series A-1, 0% 8/1/02 A1 3,650,000 2,527,625
Series A-2, 0% 8/1/03 A1 1,000,000 637,500
Series A-2, 0% 8/1/05 (d) A1 24,600,000 13,745,250
Series A-2, 0% 8/1/08 A1 20,000,000 8,975,000
Series A-2, 0% 8/1/10 A1 10,000,000 3,800,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Rev. - continued
(Concord Academy) 6.90% 9/1/21,
(FSA Insured) Aaa $ 1,370,000 $ 1,465,900
(Emerson College):
Series 1992, 8.25% 1/1/17 - 3,000,000 3,288,750
(Evergreen Ctr., Inc.) 9.25% 11/1/11 - 4,600,000 4,991,000
(Holy Cross College) 7% 7/1/19 A1 9,000,000 9,315,000
(Institite Dev. Disabilities) 9.25% 6/1/09 - 4,185,000 4,101,300
(Leominster Hosp.) Series A, 8.375% 8/1/99 - 3,100,000 3,313,125
(Museum of Science Proj.):
4.90% 11/1/06
(Cap. Guaranty Insured) Aaa 480,000 462,600
5% 11/1/07
(Cap. Guaranty Insured) Aaa 515,000 493,113
5% 11/1/08
(Cap. Guaranty Insured) Aaa 1,590,000 1,512,488
5.10% 11/1/09
(Cap. Guaranty Insured) Aaa 830,000 777,088
(New England Ctr. for Autism):
9% 11/1/05 - 2,900,000 3,121,125
9.50% 11/1/15 - 8,610,000 9,449,475
7% 11/1/19 - 1,100,000 1,025,750
(Jacobs Pillow Dance Festival) 0% 12/1/11 (f) - 4,800,000 2,400,000
(Springfield College):
5.25% 9/15/03 Baa1 755,000 745,563
5.25% 9/15/04 Baa1 885,000 866,194
5.35% 9/15/05 Baa1 930,000 912,563
5.625% 9/15/10 Baa1 1,000,000 942,500
(Whitehead Institute Biomedical Research)
5.125% 7/1/26 Aa 14,600,000 12,574,250
Massachusetts Spl. Oblig. Rev.:
(Gas Tax) Series A, 6% 6/1/13 A1 18,915,000 18,962,288
Series A, 5.80% 6/1/14 A1 3,185,000 3,109,356
Massachusetts Muni. Wholesale Elec. Co.
Pwr. Supply Sys. Rev.:
Rfdg. Series A:
5.10% 7/1/08 (AMBAC Insured) Aaa 1,000,000 965,000
Rfdg. Series B:
6.625% 7/1/04 A 4,675,000 5,095,750
4.75% 7/1/10 (MBIA Insured) Aaa 11,230,000 10,036,813
5% 7/1/17 (MBIA Insured) Aaa 12,710,000 11,073,588
Series A:
6.75% 7/1/08 A 3,000,000 3,243,750
6% 7/1/18 A 13,000,000 12,528,750
Series C, 6.625% 7/1/18 A 10,000,000 10,250,000
6.75% 7/1/17 A 9,050,000 9,355,438
Massachusetts Muni. Wholesale Elec. Co. Series A:
6.72% 7/1/18, INFL (e) Aaa 12,000,000 10,200,000
5.45% 7/1/18 (AMBAC Insured) Aaa 25,000,000 22,937,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Port Auth. Rev.:
Rfdg. 7.125% 7/1/12 Aa $ 2,490,000 $ 2,539,800
Rfdg. Series A:
5.50% 7/1/09 Aa 3,160,000 3,073,100
5% 7/1/13 Aa 9,835,000 8,777,738
5.625% 7/1/12 (Escrowed to Maturity)(c) Aaa 1,900,000 1,897,625
Massachusetts Tpk. Auth. Tpk. Rev. Rfdg. Series A:
5% 1/1/13 A1 25,040,000 22,348,200
5% 1/1/20 A1 38,485,000 33,145,206
5.125% 1/1/23 (FGIC Insured) Aaa 18,320,000 15,961,300
Massachusetts Wtr. Poll. Abatement Trust Rev.
(Massachusetts Wtr. Recources Auth. Loan Prog.):
Series 1:
5.40% 2/1/06 Aa 2,175,000 2,185,875
5.40% 8/1/06 Aa 2,230,000 2,241,150
5.45% 2/1/07 Aa 2,000,000 1,992,500
5.45% 8/1/07 Aa 2,355,000 2,346,169
5.50% 2/1/08 Aa 1,000,000 998,750
5.50% 8/1/08 Aa 2,000,000 1,997,500
5.60% 8/1/13 Aa 14,300,000 13,745,875
Series A:
5.35% 2/1/08 Aa 2,685,000 2,641,369
5.20% 8/1/11 Aa 5,520,000 5,119,800
5.45% 2/1/13 Aa 19,390,000 18,299,313
Series B:
5.10% 8/1/08 Aa 1,500,000 1,436,250
5.25% 8/1/14 Aa 12,505,000 11,442,075
Massachusetts Water Resource Auth.
(Cap. Appreciation) Series A,
0% 4/1/06 (MBIA Insured) Aaa 10,000,000 5,625,000
Methuen Gen. Oblig.Wtr. Ltd. Tax Lot A:
9.50% 12/15/98 A1 260,000 300,950
9.50% 12/15/99 A1 260,000 310,700
9.50% 12/15/00 A1 260,000 317,850
Monson Gen. Oblig.:
Rfdg. 5.40% 10/15/07 (MBIA Insured) Aaa 1,005,000 1,001,231
5.50% 10/15/10 (MBIA Insured) Aaa 1,080,000 1,043,550
Nantucket Island Bank Rfdg. Series E,
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 1,000,000 923,750
Orleans Gen. Oblig. Unltd. Tax:
6.70% 6/15/08 A1 180,000 193,725
6.70% 6/15/09 A1 120,000 127,350
Pentucket Reg'l. School Dist. Gen. Oblig.:
5.10% 2/15/11 (MBIA Insured) Aaa 530,000 490,250
5.10% 2/15/12 (MBIA Insured) Aaa 220,000 201,850
5.10% 2/15/13 (MBIA Insured) Aaa 575,000 523,250
5.10% 2/15/14 (MBIA Insured) Aaa 525,000 476,438
Pittsfield Gen. Oblig. 7.25% 8/1/06
(Pre-refunded to 8/1/96 @ 103)(c) A 600,000 637,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Plainville Gen. Oblig. Ltd. Tax:
7% 9/1/05 A $ 175,000 $ 187,906
7% 9/1/06 A 175,000 187,906
7% 9/1/07 A 175,000 187,469
Plymouth County Ctfs. of Prtn. Series A,
7% 4/1/22 A- 10,995,000 11,627,213
Quabbin Reg'l. School Dist. Gen. Oblig.
6.80% 6/15/05 A 510,000 544,425
Quincy Hosp. Rev. Rfdg.:
4.60% 1/15/01 (FSA Insured) Aaa 2,000,000 1,982,500
4.70% 1/15/02 (FSA Insured) Aaa 1,735,000 1,708,975
5.50% 1/15/13 (FSA Insured) Aaa 3,750,000 3,576,563
5.25% 1/15/16 (FSA Insured) Aaa 2,000,000 1,812,500
Quincy Hospital 5.30% 1/15/11 (FSA Insured) Aaa 11,400,000 10,616,250
South Essex Swr. Dist.:
8.75% 12/1/01 A 425,000 508,406
8.75% 12/1/02 A 425,000 506,281
8.75% 12/1/03 A 400,000 474,500
8.75% 12/1/04 A 400,000 473,500
8.75% 12/1/05 A 400,000 472,000
Southern Berkshire Reg'l. School Dist. Gen. Oblig.
7% 4/15/11 (MBIA Insured)(d) Aaa 4,000,000 4,330,000
Springfield Hsg. Auth. Multi-Family Mtg. Rev.
(Citywide Apts.):
9.50% 11/1/05 (FHA Guaranteed) - 450,000 474,188
9.625% 11/1/17 (FHA Guaranteed) - 1,500,000 1,599,375
9.625% 11/1/26 (FHA Guaranteed) - 3,250,000 3,465,313
Taunton Elec. Gen. Oblig.:
8% 2/1/00 A 1,000,000 1,120,000
8% 2/1/05 A 1,000,000 1,166,250
Taunton Ind. Dev. Fing. Rev. (Pepsi Cola
Metropolitan Bottle Co.) 5.65% 8/1/12 A1 2,400,000 2,379,000
Tewksbury Gen. Oblig. Various Purp. Unltd. Tax:
9.60% 12/15/98 Baa1 595,000 675,325
9.60% 12/15/99 Baa1 595,000 693,919
9.60% 12/15/00 Baa1 210,000 251,475
9.60% 12/15/01 Baa1 210,000 254,363
9.60% 12/15/02 Baa1 210,000 258,300
Tewksbury Wtr. Gen. Oblig.:
7.20% 6/1/05 Baa1 350,000 388,063
7.20% 6/1/06 Baa1 150,000 166,875
Westfield Muni. Purp. Loan Gen. Oblig.:
5% 9/1/10 (FSA Insured) Aaa 745,000 682,606
5% 9/1/11 (FSA Insured) Aaa 640,000 581,600
5% 9/1/12 (FSA Insured) Aaa 745,000 674,225
5% 9/1/13 (FSA Insured) Aaa 750,000 673,125
Winchedon School Proj. Loan Gen. Oblig.
6.05% 3/15/12 (AMBAC Insured) Aaa 1,275,000 1,289,344
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Woods Hole, Martha's Vineyard & Nantucket
(Massachusetts Steamship Auth.) Series A:
5.125% 3/1/11 A1 $ 1,100,000 $ 1,014,750
5.125% 3/1/12 A1 630,000 576,450
1,056,618,412
PUERTO RICO - 0.1 %
Puerto Rico Ind., Med. & Environmental Poll.
Ctl. Facs. Fing. Auth. Rev. (Motorola,Inc.)
Series A, 6.75% 1/1/14 Aa3 1,500,000 1,584,375
TOTAL MUNICIPAL BONDS
(Cost $1,043,481,746) 1,058,202,787
MUNICIPAL NOTES (A) - 3.0%
MASSACHUSETTS - 3.0%
Massachusetts Dedicated Income Tax Bonds
Updates First Recovery Loan Series 1990 B,
3.75%, LOC National Westminster
Bank, VRDN VMIG 1 8,700,000 8,700,000
Massachusetts Health & Edl. Facs. Auth. Rev., VRDN
(Brigham & Women's Hosp.) Series A, 3.60%,
LOC Sanwa Bank VMIG 1 1,100,000 1,100,000
(Capital Asset Prog.):
Series 1985 D, 3.65% (MBIA Insured)
BPA Sanwa Bank VMIG 1 7,600,000 7,600,000
Series A, 3.70%,
LOC First Nat'l. Bank of Chicago - 7,000,000 7,000,000
Series B, 3.75% (MBIA Insured)
BPA Sanwa Bank, VMIG 1 3,900,000 3,900,000
Series C, 3.75% (MBIA Insured)
BPA Sanwa Bank VMIG 1 2,000,000 2,000,000
Massachusetts Ind. Fin. Agcy
(Showa Women's Inst. of Boston - 1994 Proj.)
3.75%, LOC Fuji Bank, VRDN VMIG 1 2,500,000 2,500,000
TOTAL MUNICIPAL NOTES
(Cost $32,800,000) 32,800,000
TOTAL INVESTMENTS - 100%
(Cost $1,076,281,746) $ 1,091,002,787
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
100 Ten Year U.S. Treasury Bond Contracts Sept. 1995 $ 10,890,625 $
(125,907)
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 1.0%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate 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) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(c) Security collateralized by an amount sufficient to pay interest and
principal.
(d) A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $7,123,750.
(e) Coupon is inversely indexed to a floating interest rate. The price will
be more volatile than the price of a comparable fixed rate security. The
rate shown is the rate at period end.
(f) Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
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 62.8% AAA, AA, A 64.6%
Baa 11.0% BBB 9.7%
Ba 2.4% BB 1.5%
B 0.0% B 1.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 12.8%. FMR
has determined that unrated debt securities that are lower quality account
for 10.1% 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 33.1%
General Obligation 12.5
Education 10.7
Water & Sewer 10.2
Others
(individually less than 10%) 33.5
TOTAL 100.0%
INCOME TAX INFORMATION
At July 31, 1995, the aggregate cost of investment securities for income
tax purposes was $1,076,281,746. Net unrealized appreciation aggregated
$14,721,041, of which $41,182,581 related to appreciated investment
securities and $26,461,540 related to depreciated investment securities.
At January 31, 1995, the fund elected to defer to its fiscal year ending
January 31, 1996, $6,391,350 of losses recognized during the period
November 1, 1994 to January 31, 1995.
At January 31, 1995, the fund was required to defer $6,693,709 of losses of
losses on futures contracts and options.
FIDELITY MASSACHUSETTS TAX-FREE HIGH YIELD PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995 (UNAUDITED)
1.ASSETS 2. 3.
4.Investment in securities, at value (cost 5. $ 1,091,002,787
$1,076,281,746) - See accompanying schedule
6.Receivable for investments sold 7. 2,098,137
8.Interest receivable 9. 14,343,300
10.Receivable for daily variation on futures contracts 11. 37,500
12. 13.TOTAL ASSETS 14. 1,107,481,724
15.LIABILITIES 16. 17.
18.Payable to custodian bank $ 1,869,427 19.
20.Payable for fund shares redeemed 700,254 21.
22.Distributions payable 1,027,344 23.
24.Accrued management fee 368,227 25.
26.Other payables and accrued expenses 154,933 27.
28. 29.TOTAL LIABILITIES 30. 4,120,185
31.32.NET ASSETS 33. $ 1,103,361,539
34.Net Assets consist of: 35. 36.
37.Paid in capital 38. $ 1,103,507,097
39.Accumulated undistributed net realized gain (loss) 40. (14,740,692)
on investments
41.Net unrealized appreciation (depreciation) 42. 14,595,134
on investments
43.44.NET ASSETS, for 98,757,744 shares outstanding 45. $ 1,103,361,539
46.47.NET ASSET VALUE, offering price and redemption 48. $11.17
price per share ($1,103,361,539 (divided by) 98,757,744 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
49.50.INTEREST INCOME 51. $ 35,205,131
52.EXPENSES 53. 54.
55.Management fee $ 2,208,133 56.
57.Transfer agent, accounting and custodian fees 710,382 58.
and expenses
59.Non-interested trustees' compensation 2,593 60.
61.Registration fees 1,060 62.
63.Audit 17,830 64.
65.Legal 28,330 66.
67.Miscellaneous 1,936 68.
69. 70.TOTAL EXPENSES 71. 2,970,264
72.73.NET INTEREST INCOME 74. 32,234,867
75.REALIZED AND UNREALIZED GAIN (LOSS) 77. 78.
76.Net realized gain (loss) on:
79. Investment securities 2,346,309 80.
81. Futures contracts (4,259,954) (1,913,645)
82.Change in net unrealized appreciation (depreciation) 83. 84.
on:
85. Investment securities 37,002,687 86.
87. Futures contracts 686,692 37,689,379
88.89.NET GAIN (LOSS) 90. 35,775,734
91.92.NET INCREASE (DECREASE) IN NET ASSETS 93. $ 68,010,601
RESULTING FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
94.INCREASE (DECREASE) IN NET ASSETS
95.Operations $ 32,234,867 $ 71,935,262
Net interest income
96. Net realized gain (loss) (1,913,645) 16,811,425
97. Change in net unrealized appreciation (depreciation) 37,689,379 (147,205,535)
98. 99.NET INCREASE (DECREASE) IN NET ASSETS 68,010,601 (58,458,848)
RESULTING FROM OPERATIONS
100.Distributions to shareholders (32,234,867) (71,935,262)
From net interest income
101. From net realized gain - (23,938,149)
102. 103.TOTAL DISTRIBUTIONS (32,234,867) (95,873,411)
104.Share transactions 166,229,479 278,510,983
Net proceeds from sales of shares
105. Reinvestment of distributions 24,530,153 74,034,441
106. Cost of shares redeemed (159,354,594) (549,442,213)
107.108. 31,405,038 (196,896,789)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS
109. 67,180,772 (351,229,048)
110.TOTAL INCREASE (DECREASE) IN NET ASSETS
111.NET ASSETS 112. 113.
114. Beginning of period 1,036,180,767 1,387,409,815
115. End of period $ 1,103,361,539 $ 1,036,180,767
116.OTHER INFORMATION 118. 119.
117.Shares
120. Sold 14,892,761 25,544,589
121. Issued in reinvestment of distributions 2,197,085 6,698,427
122. Redeemed (14,246,870) (49,946,373)
123. Net increase (decrease) 2,842,976 (17,703,357)
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, SIX MONTHS YEARS ENDED JULY 31,
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995 1994C 1993 1992 1991 1990
126.SELECTED PER-SHARE DATA
127.Net asset value, beginning of period
$ 10.800 $ 12.210 $ 11.750 $ 11.860 $ 11.320 $ 11.160 $ 11.250
128.Income from Investment Operations
.333 .700 .714 .364 .735 .783 .799
Net interest income
129. Net realized and unrealized gain
.370 (1.180) .720 (.040) .620 .270 (.090)
(loss)
130. Total from investment operations
.703 (.480) 1.434 .324 1.355 1.053 .709
131.Less Distributions
(.333) (.700) (.714) (.364) (.735) (.783) (.799)
From net interest income
132. From net realized gain on investments
- - (.230) (.230) (.070) (.080) (.110) -
133. In excess of net realized gain on investments
- - - (.030) - - - -
134. Total distributions
(.333) (.930) (.974) (.434) (.815) (.893) (.799)
135.Net asset value, end of period
$ 11.170 $ 10.800 $ 12.210 $ 11.750 $ 11.860 $ 11.320 $ 11.160
136.TOTAL RETURN B
6.55% -3.79% 12.57 2.83% 12.48 9.90 6.60
% % % %
137.RATIOS AND SUPPLEMENTAL DATA
138.Net assets, end of period (000 omitted)
$ 1,103,362 $ 1,036,181 $ 1,387,410 $ 1,262,596 $ 1,235,407 $ 842,179 $ 737,321
139.Ratio of expenses to average net assets
.55% .54% .54 .55% .57 .56 .57
A % A % % %
140.Ratio of net interest income to average
5.93% 6.29% 5.93 6.19% 6.43 7.05 7.20
net assets
A % A % % %
141.Portfolio turnover rate
11% 22% 40 42% 18 29 31
A % A % % %
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C EFFECTIVE FEBRUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
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, 1995 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Massachusetts Tax-Free Money Market 1.61% 2.99% 15.05% 44.99%
Average Massachusetts
Tax-Free Money Market Fund 1.64% 3.07% 15.76% n/a
Consumer Price Index 1.46% 2.76% 16.95% 41.47%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years or ten
years. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. To
measure how the fund's performance stacked up against its peers, you can
compare it to the average Massachusetts tax-free money market fund, which
reflects the performance of 11 Massachusetts tax-free money market funds
with similar objectives tracked by IBC/Donoghue over the past six months.
Comparing the fund's performance to the consumer price index (CPI) helps
show how your investment did compared to inflation. (The periods covered by
the CPI and IBC/Donoghue numbers are those closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Massachusetts Tax-Free Money Market 2.99% 2.84% 3.79%
Average Massachusetts
Tax-Free Money Market Fund 3.07% 2.97% n/a
Consumer Price Index 2.76% 3.18% 3.53%
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
8/1/94 10/31/94 1/30/95 4/24/95 7/31/95
Massachusetts Tax-Free 2.17% 2.70% 2.79% 3.51% 3.11%
Money Market
Average Massachusetts 2.31% 2.73% 2.95% 3.57% 3.15%
Tax-Free Money Market
Fund
Massachusetts Municipal 3.82% 4.76% 4.95% 6.23% 5.52%
Money Market Tax-equivalen
t
Portion of fund's income 5.97% 5.13% 0.50% - -
subject to state taxes on
last day of period
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
seven-day yield at quarterly intervals over the past year. You can compare
these yields to the average Massachusetts tax-free money market fund. Or
you can look at the fund's tax-equivalent yield, which is based on a
combined effective 1995 federal and state income tax rate of 43.68% and
reflects that a portion of the fund's income was subject to state taxes.
Figures for the average Massachusetts tax-free money market fund are from
IBC Donoghue. A portion of the fund's income may be subject to the
alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. 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 Jan Bradburn,
Portfolio Manager of Fidelity
Massachusetts Tax-Free
Money Market Portfolio
Q. JAN, WHAT KIND OF INVESTMENT CLIMATE HAVE YOU BEEN OPERATING IN FOR THE
PAST SIX MONTHS?
A. While conditions were relatively calm compared to last year, the climate
definitely has shifted. Shortly after the period began last February, the
Federal Reserve raised the federal funds rate - the rate banks charge each
other for overnight loans - one-half percentage point to 6.0%. It was the
seventh rate increase in 12 months, and the final act in a Fed policy
designed to slow down the pace of economic growth and prevent an outbreak
of inflation. The success of that policy was already becoming apparent even
as the Fed was raising interest rates for the last time. Growth in the
gross domestic product slowed from 5.1% during the fourth quarter of 1994
to 2.8% during the first quarter of 1995, and trickled to an estimated
0.50% during the second quarter. By early summer, it was clear to most
observers that the Fed had no intention of raising rates again any time
soon. Indeed, speculation centered on when the Fed might decide the risk of
recession was great enough to warrant a rate cut. In July, as expected, the
Fed acted, trimming the federal funds rate back to 5.75%.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
A. Throughout the spring and early summer, the fund's average maturity was
around 40 days. Later in the period, as interest rates peaked and new
supply entered the market, I began looking for opportunities to lock in
attractive rates for longer terms. By the end of June, the fund's average
maturity was in the mid-50s, where it ended the period. The fund's stake in
variable rate demand notes, or VRDNs, declined during the period from a
high of around 71% of total investments to around 66%. VRDNs pay a variable
interest rate that resets at daily, weekly or monthly intervals. For
obvious reasons, they're less attractive in a falling-rate environment.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on July 31, 1995, was 3.11%, compared to
2.88% six months ago. On an after-tax basis, the fund's latest yield was
the equivalent of a 5.52% taxable rate for Massachusetts investors in the
43.68% combined state and federal income tax bracket. Through July 31,
1995, the fund's six-month total return was 1.61%, compared to 1.64% for
the average Massachusetts tax-exempt money market fund, according to
IBC/Donoghue.
Q. WHAT'S THE OUTLOOK?
A. The key to the shifts that took place in the investment climate during
the period is understanding that while they were dramatic, there were few
surprises. Most market participants anticipated a rate increase in
February, and they got one. Similarly, by the time the Fed governors met in
July, most market participants not only believed that a rate cut was all
but inevitable, they were already acting on that assumption. Then, for a
short while afterwards, it looked as if more rate cuts might be coming. But
as key economic indicators showed surprising signs of strength, and the
threat of recession faded, it began to look more as if the Fed would stand
pat for a while and wait for a clear trend to develop. That's where we were
when the period ended - waiting for direction. Given the high level of
uncertainty, I think it makes sense to preserve some flexibility in the
months ahead. I'll probably maintain an average maturity of around 55 to 60
days, which I regard as neutral.
FUND FACTS
GOAL: high current tax-free
income for Massachusetts
residents while maintaining a
stable $1.00 share price
START DATE: November 11,
1983
SIZE: as of July 31, 1995,
more than $784 million
MANAGER: Janice Bradburn,
since 1992; manager,
Spartan Florida Money
Market, since 1995; Fidelity
Ohio Municipal Money
Market, since 1993; Spartan
Massachusetts Municipal
Money Market, since 1992;
Fidelity New York Tax-Free
Money Market, since 1989;
Spartan New York Municipal
Money Market, since 1990;
joined Fidelity in 1989
(checkmark)
WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
FIDELITY MASSACHUSETTS TAX-FREE MONEY MARKET PORTFOLIO
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/95 1/31/95 7/31/94
0 - 30 78 83 85
31 - 90 7 4 9
91 - 180 4 11 4
181 - 397 11 2 2
WEIGHTED AVERAGE MATURITY
7/31/95 1/31/95 7/31/94
Massachusetts Tax-Free
Money Market 49 days 28 days 23 days
Average Massachusetts
Tax-Free Money Market
Fund* 48 days 34 days 33 days
ASSET ALLOCATION
AS OF JULY 31, 1995 AS OF JANUARY 31, 1995
Row: 1, Col: 1, Value: 66.0
Row: 1, Col: 2, Value: 16.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 13.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 71.0
Row: 1, Col: 2, Value: 12.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 11.0
Row: 1, Col: 5, Value: 3.0
Variable rate
demand notes
(VRDNs) 66%
Commercial
paper 16%
Tender bonds 3%
Municipal
notes 13%
Other 2%
Variable rate
demand notes
(VRDNs) 71%
Commercial
paper 12%
Tender bonds 3%
Municipal
notes 11%
Other 3%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
FIDELITY MASSACHUSETTS TAX-FREE MONEY MARKET PORTFOLIO
INVESTMENTS JULY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 98.3%
Andover BAN 3.80% 12/15/95 $ 3,800,000 $ 3,804,152
Boston City Hosp. Participating VRDN, Series PT-2, 3.90%,
(Liquidity Enhancement Bank National De Paris) (c) 13,150,000 13,150,000
Boston Wtr. & Swr. Commission Gen. Rev., VRDN:
Series 1985 A:
3.90%, LOC Canadian Imperial Bank of
Commerce 9,260,000 9,260,000
3.90%, LOC Canadian Imperial Bank of
Commerce 16,585,000 16,585,000
Series 1994 A, 3.75%,
LOC State Street Bank & Trust 10,700,000 10,700,000
Boxborough BAN 3.80% 7/12/96 3,500,000 3,501,563
Brockton BAN 4.60% 12/21/95 (BPA Fleet Bank) 3,045,000 3,054,842
Chelmsford BAN 3.75% 6/28/96 3,200,000 3,202,794
Chicopee BAN 4.875% 4/3/96 3,075,000 3,083,805
Clipper Participating VRDN, Series 93-2, 3.86%
(Liquidity Facility State Street Bank & Trust) (c) 19,000,000 19,000,000
Edgartown BAN 3.80% 4/18/96 3,965,000 3,967,729
Framingham Ind. Rev. Board (Perini Corp. Proj.)
Series 1985, 3.85%, LOC Harris Trust & Savings
Bank, VRDN 400,000 400,000
Franklin BAN:
3.49% 11/15/95 4,000,000 4,000,111
3.65% 11/15/95 4,000,000 4,002,272
Holyoke Poll. Cont. Rev. (Holyoke Pwr. & Light Proj.)
Series 1988, 3.65%, LOC Union Bank of
Switzerland, VRDN 1,200,000 1,200,000
Hopkinton BAN 3.70% 7/5/96 4,000,000 4,001,783
Massachusetts Bay Transit Auth. Bonds Series 1984 A,
4.40% tender 9/1/95, LOC State Street Bank 7,900,000 7,900,196
Massachusetts Bay Transit Auth. RAN:
Series 1994 B, 5% 9/8/95 1,200,000 1,201,524
Series 1995 A, 5.50% 3/1/96 2,045,000 2,057,073
Massachusetts Bay Trans. Auth. CP:
Series A:
3.90% 8/7/95, LOC ABN-AMRO Bank 3,000,000 3,000,000
3.95% 8/8/95, LOC ABN-AMRO Bank 3,000,000 3,000,000
4.20% 9/12/95, LOC ABN-AMRO Bank 4,000,000 4,000,000
Series C:
3.75% 8/15/95, LOC Westdeutsche Landesbank 3,200,000 3,200,000
3.40% 8/30/95, LOC Westdeutsche Landesbank 5,000,000 5,000,000
Massachusetts Ed. Fin. Auth. Ed. Loan Rev. 3.50%,
VRDN (b) 27,500,000 27,500,000
Massachusetts Gen. Oblig. BAN Series 1995 A,
4.25% 6/12/96 29,000,000 29,157,281
Massachusetts Gen. Oblig. Bonds:
Series A, 7.25% 6/1/95 (FGIC Insured) 2,000,000 2,059,175
Series 94-B, 5% 8/1/95 5,000,000 5,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Gen. Oblig. Participating VRDN (c):
Series 30-I, 3.96%
(Liquidity Enhancement Citibank) $ 3,000,000 $ 3,000,000
Series 93-A, 3.91% (Liquidity Facility Citibank) 5,000,000 5,000,000
Series 93-I, 3.96% (Liquidity Facility Citibank) 13,000,000 13,000,000
Series CR-147, 3.96% (Liquidity Facility Citibank) 5,000,000 5,000,000
Series PW-21, 3.90% (Liquidity Facility CIBC) 8,000,000 8,000,000
Series PA-107, 3.90%
(Liquidity Facility Merrill Lynch & Co.) 1,500,000 1,500,000
Massachusetts Health & Ed. Facs. Auth. CP
(Fallon Healthcare System-1) 3.80% 8/22/95,
LOC Sanwa Bank 3,000,000 3,000,000
Massachusetts Health & Edl. Facs. Auth. Rev.:
(Harvard Univ.):
Bonds Series J:
8.30% 12/1/95 500,000 514,857
8.875% 12/1/95 2,480,000 2,558,112
3.85% tender 8/16/95 4,000,000 4,000,000
3.50% 10/11/95 2,000,000 2,000,000
3.60% tender 10/12/95 3,200,000 3,200,000
4% tender 10/16/95 3,350,000 3,350,000
3.60% tender 11/14/95 1,100,000 1,100,000
Series I:
3.35%, VRDN 39,245,000 39,245,000
3.35%, VRDN 32,995,000 32,995,000
(Boston Childrens Hosp.) 3.65% BPA Sanwa Bank,
VRDN 2,900,000 2,900,000
(Brigham & Women's Hosp.) Series A, 3.60%,
LOC Sanwa Bank, VRDN 1,300,000 1,300,000
(Cap. Asset Prog.):
Series 1985 D, 3.65% (MBIA Insured)
(BPA Sanwa Bank Ltd.) VRDN 33,000,000 33,000,000
Series A, 3.70%, LOC First Nat'l. Bank of Chicago,
VRDN 22,800,000 22,800,000
Series E, 3.45%, LOC Sanwa Bank, VRDN 25,400,000 25,400,000
(MIT) Series G, 3.40%, VRDN 6,300,000 6,300,000
(Mt. Ida College) 3.55%, LOC Chemical Bank, VRDN 6,800,000 6,800,000
(Wellesley College) Series B, 3.40%, VRDN 13,000,000 13,000,000
(Williams College) Series E, 3.65%, VRDN 3,000,000 3,000,000
Massachusetts Hsg. Fin. Agcy. Participating VRDN (c):
Series 13C, 3.75%
(Liquidity Facility Morgan Guaranty Trust Co.) 5,900,000 5,900,000
Series PA-83, 3.90% (AMBAC Insured)
(Liquidity Facility Merrill Lynch & Co.) (b) 4,920,000 4,920,000
Series PT-33, 4% (AMBAC Insured)
(Liquidity Facility Industrial Bank of Japan) (b) 5,180,000 5,180,000
Series PT-42, 3.90% (Liquidity Facility Industrial
Bank of Japan) 5,200,000 5,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Hsg. Fin. Agcy. Single Family Hsg.
Rev. Bonds:
Series 34, 4.15%tender 6/1/96 (FGIC Insured) (b) $ 5,500,000 $ 5,500,000
Series 35, 4.10% tender 6/1/96 (FGIC Insured) 7,000,000 7,000,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev.
(Falmouth Assisted Living) Series 1995,3.80%,
LOC First Nat'l. Bank of Boston, VRDN 3,800,000 3,800,000
Massachusetts Ind. Fin. Agcy. Ind. Rev., VRDN:
Rfdg. (First Healthcare Corp.) Series 1993 B, 3.85%
LOC Wachovia Bank of Georgia 700,000 700,000
Rfdg. (First Healthcare Corp. for Hillhaven Proj.) 3.85%,
LOC Wachovia Bank of Georgia 2,000,000 2,000,000
Rfdg. (Quamco Inc. Proj.) Series 1988 B, 3.45%
LOC Bank of Nova Scotia 1,405,000 1,405,000
Rfdg. (WGBH Ed. Foundation Proj.) Series 1992, 3.80%,
LOC Nat'l. Westminster Bank 4,915,000 4,915,000
(Interpolymer Corp.) Series 1992, 2.90%,
LOC Bank of Tokyo (b) 3,800,000 3,800,000
(Longview Fiber Co.) Series 1987, 3.85%,
LOC Algemene Bank 2,070,000 2,070,000
(United Medical Corp.) Series 1992, 3.70%,
LOC Chemical Bank, VRDN (b) 1,500,000 1,500,000
Massachusetts Ind. Fin. Agcy. Multimodal Rev., VRDN:
(Hampshire College Proj.) 3.75%,
LOC Nat'l. Westminster Bank 970,000 970,000
(Nova Realty) Series 1994, 3.70%,
LOC First Nat'l. Bank of Boston 2,900,000 2,900,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev.
(Holyoke Wtr. Pwr. Co. Proj.) Series 1990,
3.95%, LOC Swiss Bank, VRDN (b) 8,700,000 8,700,000
Massachusetts Ind. Fin. Agcy. Resource Recovery Rev.
(Ogden-Haverhill Proj.) VRDN:
Series 1986 B, 3.45%,
LOC Union Bank of Switzerland (b) 14,875,000 14,875,000
Series 1992 A, 3.50%,
LOC Union Bank of Switzerland 20,000,000 20,000,000
Massachusetts Ind. Fin. Agcy. Rev.:
Bonds (St. Mark's School of Southborough) Issue1991,
5.25% tender 1/9/96 LOC Barclays Bank 2,000,000 2,000,000
(General Signal Proj.) 3.45%, LOC Wachovia
Bank of Georgia, VRDN 7,500,000 7,500,000
Rfdg. (Showa Women's Institute Boston Inc. 1994 Proj.)
3.75% LOC Fuji Bank, VRDN 1,100,000 1,100,000
(Mary Ann Morse Nursing Home):
Series A, 3.80%, LOC ABN-AMRO Bank, VRDN 6,000,000 6,000,000
Series B, 3.60%, LOC ABN-AMRO Bank, VRDN 7,000,000 7,000,000
(New England Deaconess Assoc.) Series 1993 B,
3.50%, LOC Banque Paribas, VRDN 600,000 600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Rev. - continued
(Riverdale Mills Corp.) Series 1995, 3.90%,
LOC Bank of Boston, VRDN (b) $ 4,400,000 $ 4,400,000
(Tsubaki Inc.) 4.10%, LOC Sakura Bank, VRDN (b) 3,000,000 3,000,000
(Wheelock College Issue) Series A, 3.80%,
LOC Nat'l. Westminster Bank, VRDN 4,800,000 4,800,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev. Rfdg.
(First Healthcare Corp. Proj.) Series 1992 A, 3.85%,
LOC Wachovia Bank of Georgia, VRDN 2,025,000 2,025,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev. Bonds
(New England Pwr. Co. Proj.) Rfdg.:
Series 1992 B:
4.15% tender 8/7/95 1,500,000 1,500,000
4.15% tender 8/9/95 6,000,000 6,000,000
4.15% tender 8/10/95 5,000,000 5,000,000
4.05% tender 8/14/95 4,000,000 4,000,000
4.15% tender 8/23/95 2,700,000 2,700,000
3.40% tender 9/21/95 3,000,000 3,000,000
3.55% tender 10/11/95 4,000,000 4,000,000
3.60% tender 11/14/95 5,200,000 5,200,000
Series 1993 A, 3.75% tender 10/10/95 3,600,000 3,600,000
Series 1993 B:
4.15% tender 8/21/95 3,000,000 3,000,000
3.20% tender 8/24/95 7,000,000 7,000,000
4.15% tender 8/28/95 9,250,000 9,250,000
Massachusetts Muni. Elec. Wholesale Co. Pwr. Supply
Sys. Rev. Series 1994 C, 3.65%,
LOC Canadian Imperial Bank, VRDN 28,800,000 28,800,000
Massachusetts Muni. Elec. Wholesale Co. Pwr. Supply
Sys. Rev. Participating VRDN, Series 93 D, 3.80%
(AMBAC Insured) (Liquidity Enhancement Hong Kong &
Shanghai Banking Corp.) (c) 6,400,000 6,400,000
Massachusetts Port Auth. Multimodal Rev.:
Series 1995 A, 4.10%, LOC Landesbanken Hessen,
VRDN 400,000 400,000
Series 1995 B, 4.20%, LOC Landesbanken
Hessen-Thuringen, VRDN (b) 3,000,000 3,000,000
Massachusetts Tpk. Auth. Participating VRDN, Series PA-1009,
3.95% (Liquidity Facility Merrill Lynch & Co.)(c) 4,020,000 4,020,000
Massachusetts Water Resource Auth.:
Bonds Series A, 7.625% 8/1/95 (MBIA Insured) 1,000,000 1,000,000
CP:
4.15% 8/10/95, LOC Morgan Guaranty Trust Co. 3,600,000 3,600,000
4.05% 8/14/95, LOC Morgan Guaranty Trust Co. 1,000,000 1,000,000
3.60% 8/18/95, LOC Morgan Guaranty Trust Co. 10,000,000 10,000,000
3.85% 8/29/95, LOC Morgan Guaranty Trust Co. 5,000,000 5,000,000
3.85% 8/30/95, LOC Morgan Guaranty Trust Co. 800,000 800,000
4.05% 9/11/95, LOC Morgan Guaranty Trust Co. 7,700,000 7,700,000
3.40% 10/20/95, LOC Morgan Guaranty Trust Co. 5,000,000 5,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Water Resource Auth. Participating VRDN (c):
Series PW-11, 3.90%
(Liquidity Facility Bank of Nova Scotia) $ 11,565,000 $ 11,565,000
Series PW-20, 3.90% (Liquidity Facility CIBC) 8,000,000 8,000,000
Natick BAN 4.10% 5/22/96 4,700,000 4,703,647
New Bedford BAN 4.25% 10/6/95 (BPA Fleet Bank) 1,000,000 1,001,425
Northampton BAN:
4% 5/31/96 2,000,000 2,002,400
4.20% 5/31/96 3,200,000 3,203,065
Northborough Ind. Rev. (Tru Realty Corp. Proj.
Toys "R" Us, Inc) 3.875%,
LOC Bankers Trust, VRDN 2,900,000 2,900,000
Quincy Hosp. Rev. Bond (Quincy City Hosp.) Series A,
7.875% 7/15/96 2,400,000 2,539,265
Reading BAN 3.80% 7/12/96 5,818,000 5,820,599
Somerville BAN 4.08% 11/17/95 3,300,000 3,300,732
Westborough BAN 3.80% 7/18/95 2,500,000 2,501,157
Westfield BAN 4.10% 10/26/95 2,645,000 2,647,141
Worcester BAN 5% 8/31/95, LOC Sanwa Bank 8,050,000 8,052,619
766,919,319
PUERTO RICO - 1.7%
Puerto Rico Commonwealth Participating VRDN,
Series PT-63, 3.80%, (Liquidity Facility
Bayerische Hypotheken/Wech Bank) (c) 5,200,000 5,200,000
Puerto Rico Elec. Pwr. Auth. Rev. Participating VRDN,
BT-105, 3.625%, (Liquidity Facility Bankers
Trust Co.)(c) 3,060,000 3,060,000
Puerto Rico Govt. Dev. Bank CP, 4.15% 8/11/95 5,000,000 5,000,000
13,260,000
TOTAL INVESTMENTS - 100% $ 780,179,319
Total Cost for Income Tax Purposes $ 780,179,439
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - 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.
(c)Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At January 31, 1995 the fund had a capital loss carryforward of
approximately $135,700 of which $58,300, $64,100 and $13,300 will expire on
January 31, 1997, 1998 and 2003, respectively.
FIDELITY MASSACHUSETTS TAX-FREE MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995 (UNAUDITED)
142.ASSETS 143. 144.
145.Investment in securities, at value - See 146. $ 780,179,319
accompanying schedule
147.Cash 148. 271,368
149.Interest receivable 150. 4,444,538
151. 152.TOTAL ASSETS 153. 784,895,225
154.LIABILITIES 155. 156.
157.Distributions payable $ 66,173 158.
159.Accrued management fee 262,289 160.
161.Other payables and accrued expenses 159,709 162.
163. 164.TOTAL LIABILITIES 165. 488,171
166.167.NET ASSETS 168. $ 784,407,054
169.Net Assets consist of: 170. 171.
172.Paid in capital 173. $ 784,429,383
174.Accumulated net realized gain (loss) on 175. (22,329)
investments
176.177.NET ASSETS, for 784,331,472 shares 178. $ 784,407,054
outstanding
179.180.NET ASSET VALUE, offering price and 181. $1.00
redemption price per share ($784,407,054 (divided by)
784,331,472 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
182.183.INTEREST INCOME 184. $ 14,244,427
185.EXPENSES 186. 187.
188.Management fee $ 1,513,048 189.
190.Transfer agent, accounting and custodian fees 710,700 191.
and expenses
192.Non-interested trustees' compensation 2,942 193.
194.Registration fees 1,042 195.
196.Audit 14,512 197.
198.Legal 1,775 199.
200.Miscellaneous 2,476 201.
202. 203.TOTAL EXPENSES 204. 2,246,495
205.206.NET INTEREST INCOME 207. 11,997,932
208.REALIZED AND UNREALIZED GAIN (LOSS) 210. 110,041
209.Net realized gain (loss) on investment securities
211.Increase (decrease) in net unrealized gain from 212. (3,861)
accretion
of market discount
213.214.NET GAIN (LOSS) 215. 106,180
216.217.NET INCREASE IN NET ASSETS RESULTING FROM 218. $ 12,104,112
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
219.INCREASE (DECREASE) IN NET ASSETS
220.Operations $ 11,997,932 $ 15,446,888
Net interest income
221. Net realized gain (loss) 110,041 (13,283)
222. Increase (decrease) in net unrealized gain from (3,861) 3,861
accretion of market discount
223. 12,104,112 15,437,466
224.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
225.Distributions to shareholders from net interest (11,997,932) (15,446,888)
income
226.Share transactions at net asset value of $1.00 per 1,041,369,735 1,739,919,170
share
Proceeds from sales of shares
227. Reinvestment of distributions 11,583,795 14,845,806
228. Cost of shares redeemed (1,025,581,267) (1,607,981,120)
229.230. 27,372,263 146,783,856
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS
231. 27,478,443 146,774,434
232.TOTAL INCREASE (DECREASE) IN NET ASSETS
233.NET ASSETS 234. 235.
236. Beginning of period 756,928,611 610,154,177
237. End of period $ 784,407,054 $ 756,928,611
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, SIX MONTHS YEARS ENDED JULY 31,
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995 1994 1993 1992 1991 1990
240.SELECTED PER-SHARE DATA
241.Net asset value, beginning of period
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
242.Income from Investment Operations
.016 .023 .017 .010 .029 .046 .053
Net interest income
243.Less Distributions
(.016) (.023) (.017) (.010) (.029) (.046) (.053)
From net interest income
244.Net asset value, end of period
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
245.TOTAL RETURN B
1.61% 2.29% 1.71% .99% 2.94% 4.70% 5.42%
246.RATIOS AND SUPPLEMENTAL DATA
247.Net assets, end of period (000 omitted)
$ 784,407 $ 756,929 $ 610,154 $ 584,939 $ 600,945 $ 714,567 $ 750,877
248.Ratio of expenses to average net assets
.60% .63% .66% .64% .65% .60% .57%
A A
249.Ratio of net interest income to average net
3.22% 2.28% 1.69% 1.96% 2.93% 4.60% 5.33%
assets
A A
</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, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Massachusetts Tax-Free High Yield Portfolio and Fidelity
Massachusetts Tax-Free Money Market Portfolio 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 of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which quotations are not readily
available through the pricing service are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees.
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 substantially 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, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions, losses deferred due to wash sales, futures and
options and excise tax regulations.
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 use futures and
options contracts to manage its exposure to the bond markets and to
fluctuations in interest rates. Buying futures, writing puts, and buying
calls tend to increase the fund's exposure to the underlying instrument.
Selling futures, buying puts, and writing calls tend to decrease the fund's
exposure to the underlying instrument, or hedge other fund investments.
Futures contracts and written options involve, to varying degrees, risk of
loss in excess of the futures variation margin or the option value
reflected in the Statement of Assets and Liabilities. The underlying face
amount at value is shown in the schedule of investments under the caption
"Futures Contracts." This amount reflects each contract's exposure to the
underlying instrument at period end. Losses may arise from changes in the
value of the underlying instruments, if there is an illiquid secondary
market for the contracts, or if the counterparties do not perform under the
contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options 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 $78,086,524 and $57,851,884, respectively.
The market value of futures contracts opened and closed during the period
amounted to $263,650,873 and $327,109,821, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of each fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1200% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .25%. For the period, the management
fees were equivalent to annualized rate of .41% of average net assets for
the high yield and money market funds, respectively.
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.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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 (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 $12,103 and
$22,245 for the high yield and money market funds, respectively, for the
period.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the custodian
and transfer and shareholder servicing agent for the funds. UMB has entered
into a sub-contract with Fidelity Service Co. (FSC), an affiliate of FMR,
under which FSC performs the activities associated with the funds' transfer
and shareholder servicing agent and accounting functions. Effective January
1, 1995, the Board of Trustees approved a revised transfer agent contract
pursuant to which the funds pay account fees and asset-based fees that vary
according to account size and type of account. Under the prior transfer
agent contract, the funds paid fees based on the type, size, number of
accounts and the 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 $534,949 and $169,498 for
the high yield fund and $621,891 and $65,898 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 $59,460.
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)(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)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
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
Janice Bradburn, Vice President -
MONEY MARKET FUND
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
Michael D. Conway, Assistant Treasurer - MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Marvin L. Mann*
Edward H. Malone*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
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, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 9 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 15 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 19 Notes to the financial statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND
MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was almost
ideal.
These market ups and downs are a normal part of investing, and there are
some basic principles that can help investors in every type of market.
First, take a long-term approach when investing. If you can afford to leave
your money invested through the inevitable ups and downs of financial
markets, you will greatly reduce your vulnerability to any single decline.
Over time, for example, stock prices have gone up - and have significantly
outperformed other types of investments and stayed ahead of inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up a regular investment plan using the Fidelity Automatic Account
Builder.SM
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance.
If Fidelity had not reimbursed certain fund expenses, the life of fund
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND
Spartan Massachusetts
Municipal Money Market Portfolio 1.67% 3.11% 13.08%
Average Massachusetts
Tax-Free Money Market Fund 1.64% 3.07% 11.79%
Consumer Price Index 1.46% 2.76% 13.13%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set 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, the value of your investment would
be $1,050. To measure how the fund's performance stacked up against its
peers, you can compare it to the average Massachusetts tax-free money
market fund, which reflects the performance of 11 Massachusetts tax-free
money market funds with similar objectives tracked by IBC/Donoghue over the
past six months. Comparing the fund's performance to the consumer price
index (CPI) helps show how your fund did compared to inflation. (The
periods covered by the CPI and IBC/Donoghue numbers are the closest
available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1995 PAST 1 LIFE OF
YEAR FUND
Spartan Massachusetts
Municipal Money Market Portfolio 3.11% 2.82%
Average Massachusetts
Tax-Free Money Market Fund 3.07% 2.60%
Consumer Price Index 2.76% 2.83%
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>
8/1/94 10/31/94 1/30/95 4/24/95 7/31/95
Spartan Massachusetts 2.30% 2.77% 2.94% 3.63% 3.22%
Municipal Money Market
Portfolio
Average Massachusetts 2.31% 2.73% 2.95% 3.57% 3.15%
Tax-Free Money Market
Fund
Spartan Massachusetts 4.07% 4.89% 5.22% 6.45% 5.72%
Municipal Money Market
Fund - Tax-equivalent
Portion of fund's income 2.10% 4.60% - - -
subject to state taxes on last
day of period
</TABLE>
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 Massachusetts tax-free money market
fund. Or you can look at the fund's tax-equivalent yield, which is based on
a combined effective 1995 federal and state income tax rate of 43.68% and
reflects that a portion of the fund's income may have been subject to state
taxes. A portion of the fund's income may be subject to the alternative
minimum tax. Figures for the average Massachusetts tax-free money market
fund are from IBC/Donoghue.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free
investments are usually lower
than yields on taxable
investments. However, a
straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the
yield you'd have to earn on a
similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. government neither
insures nor guarantees a
money market fund. 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 Jan Bradburn,
Portfolio Manager of Spartan
Massachusetts Municipal Money
Market Portfolio
Q. JAN, WHAT KIND OF INVESTMENT CLIMATE HAVE YOU BEEN OPERATING IN FOR THE
PAST SIX MONTHS?
A. While conditions were relatively calm compared to last year, the climate
definitely shifted. Shortly after the period began last February, the
Federal Reserve raised the federal funds rate - the rate banks charge each
other for overnight loans - one-half percentage point to 6.0%. It was the
seventh rate increase in 12 months, and the final act in a Fed policy
designed to slow down the pace of economic growth and prevent an outbreak
of inflation. The success of that policy was already becoming apparent even
as the Fed was raising interest rates for the last time. Growth in the
gross domestic product slowed from 5.1% during the fourth quarter of 1994
to 2.8% during the first quarter of 1995, and trickled to an estimated 0.5%
during the second quarter. By early summer, it was clear to most observers
that the Fed had no intention of raising rates again anytime soon. Indeed,
speculation centered on when the Fed might decide the risk of recession was
great enough to warrant a rate cut. In July, as expected, the Fed acted,
trimming the federal funds rate back to 5.75%.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
A. Throughout the spring and early summer, the fund's average maturity was
around 40 days. Later in the period, as interest rates peaked and new
supply entered the market, I began looking for opportunities to lock in
attractive rates for longer terms. By the end of June, the fund's average
maturity was in the mid-50s, and it ended the period at 49 days. The fund's
stake in variable rate demand notes - which was as high as 70% of total
investments during the period - declined to around 66% at the end of the
period. VRDNs pay a variable interest rate that resets at daily, weekly or
monthly intervals. For obvious reasons, they're less attractive in a
falling-rate environment.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on July 31, 1995, was 3.22%, compared to
3.01% six months ago. On an after-tax basis, that was the equivalent of a
5.72% taxable yield for Massachusetts investors in the 43.68% combined
state and federal income tax bracket. Through July 31, 1995, the fund's
six-month total return was 1.67%, compared to 1.64% for the average
Massachusetts tax-free money market fund, according to IBC/Donoghue.
Q. WHAT'S THE OUTLOOK?
A. The key to understanding the shifts that took place in the investment
climate during the period is that while they were dramatic, there were few
surprises. Most market participants anticipated a rate increase in
February, and they got one. Similarly, by the time the Fed governors met in
July, most market participants not only believed that a rate cut was all
but inevitable, they were already acting on that assumption. Then, for a
short while afterwards, it looked as if more rate cuts might be coming. But
as key economic indicators showed surprising signs of strength, and the
threat of recession faded, it began to look more as if the Fed would stand
pat for a while and wait for a clear trend to develop. That's where we were
when the period ended - waiting for direction. Given the high level of
uncertainty, I think it makes sense to preserve some flexibility in the
months ahead. I'll probably maintain an average maturity of around 55-60
days, which I regard as neutral.
FUND FACTS
GOAL: high current tax-free
income for Massachusetts
shareholders while
maintaining a $1.00 share
price
START DATE: March 4, 1991
SIZE: as of July 31, 1995
more than $452 million
MANAGER: Janice Bradburn,
since 1992; manager, Fidelity
Ohio Municipal Money Market
Portfolio, since 1993; Fidelity
Massachusetts Municipal
Money Market Portfolio, since
1992;
Fidelity New York Tax-Free
Money Market Portfolio, since
1989; Spartan New York
Municipal Money Market
Portfolio, since 1990; joined
Fidelity in 1989
(checkmark)
WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/95 1/31/95 7/31/94
0 - 30 76 82 83
31 - 90 10 5 12
91 - 180 2 11 3
181 - 397 12 2 2
WEIGHTED AVERAGE MATURITY
7/31/95 1/31/95 7/31/94
Spartan Massachusetts
Municipal Money Market
Portfolio 49 days 30 days 23 days
Average Massachusetts
Tax-Free Money 48 days 34 days 33 days
Market Fund*
ASSET ALLOCATION
AS OF JULY 31, 1994 AS OF JANUARY 31, 1995
Row: 1, Col: 1, Value: 66.0
Row: 1, Col: 2, Value: 16.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 13.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 67.0
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 5.0
Row: 1, Col: 4, Value: 11.0
Row: 1, Col: 5, Value: 3.0
Variable rate
demand notes
(VRDNs) 66%
Commercial
paper 16%
Tender bonds 4%
Municipal
notes 13%
Other 1%
Variable rate
demand notes
(VRDNs) 67%
Commercial
paper 14%
Tender bonds 5%
Municipal
notes 11%
Other 3%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS JULY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 96.6%
Andover BAN 3.80% 12/15/95 $ 2,200,000 $ 2,202,404
Boston City Hosp. Participating VRDN, Series PT2, 3.90%
(Liquidity Facility Bank Nat'l. De Paris) (c) 1,700,000 1,700,000
Boston Wtr. & Swr. Commission Gen. Oblig. Rev., VRDN:
Series 1985 A:
3.90%, LOC Canadian Imperial
Bank of Commerce 9,540,000 9,540,000
3.90%, LOC Canadian Imperial
Bank of Commerce 5,400,000 5,400,000
Series 1994 A, 3.75%, LOC State Street
Bank & Trust 5,000,000 5,000,000
Boxborough BAN 3.80% 7/12/96 1,000,000 1,000,447
Brockton BAN 4.60% 12/21/95, BPA Fleet Nat'l. Bank 1,000,000 1,003,232
Chelmsford BAN 3.75% 6/28/96 1,900,000 1,901,659
Clipper Tax Exempt Trust Participating VRDN,
Series 93-2, 3.86% (Liquidity Facility State Street
Bank & Trust) (c) 15,630,200 15,630,200
Edgartown BAN 3.80% 4/18/96 1,000,000 1,000,688
Franklin BAN:
3.49% 11/15/95 2,000,000 2,000,056
3.65% 11/15/95 2,000,000 2,001,136
Holyoke Poll. Cont. Rev. (Holyoke Pwr. & Light Proj.)
Series 1988, 3.65%, LOC Union Bank of
Switzerland, VRDN 3,400,000 3,400,000
Hopkinton BAN 3.70% 7/5/96 2,300,000 2,301,025
Massachusetts Bay Transit Auth. Bonds Series 1984 A, 4.40%
tender 9/1/95, LOC State Street Bank & Trust 4,000,000 4,000,000
Massachusetts Bay Transit Auth. RAN
Series 1995 A, 5.50% 3/1/96 13,050,000 13,114,734
Massachusetts Bay Transit Auth. Rev., CP:
Series A:
3.90% 8/7/95, LOC ABN-AMRO Bank 2,000,000 2,000,000
3.95% 8/8/95, LOC ABN-AMRO Bank 2,000,000 2,000,000
Series C, 3.40% 8/30/95,
LOC Westdeutsche Landesbank 2,000,000 2,000,000
Massachusetts Ed. Fin. Auth. Ed. Loan Rev. 3.50%,
VRDN (b) 16,500,000 16,500,000
Massachusetts Gen. Oblig. BAN Series 1995 A,
4.25% 6/12/96 16,000,000 16,086,776
Massachusetts Gen. Oblig. Participating VRDN: (c)
Series CR-159, 3.91% (Liquidity Facility Citibank) 3,200,000 3,200,000
Series PA-107, 3.90% (Liquidity Facility Merrill Lynch) 1,000,000
1,000,000
Series PW-21, 3.90%
(Liquidity Facility Canadian Imperial Bank) 4,000,000 4,000,000
Series 1993 A, 3.96% (AMBAC Insured)
(Liquidity Facility Citibank) 4,000,000 4,000,000
Series 1993 I, 3.96% (AMBAC Insured)
(Liquidity Facility Citibank) 7,800,000 7,800,000
Massachusetts Gen. Oblig. Rev., Series 1994 B, 5%
8/1/95 2,495,000 2,495,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Gen. Oblig. Tender Option Ctfs.,
Series CR-147, 3.96% (Liquidity Facility Citibank) (c) $ 3,000,000 $
3,000,000
Massachusetts Health & Edl. Facs. Auth. Rev.:
Bonds (Harvard Univ.):
3.60% tender 9/25/95 1,500,000 1,500,000
4% tender 10/16/95 2,000,000 2,000,000
3.60% tender 11/14/95 1,000,000 1,000,000
(Fallon Healthcare System-1):
3.80% 8/22/95, LOC Sanwa Bank, CP 1,000,000 1,000,000
Massachusetts Health & Ed. Facs. Auth. Rev., VRDN:
(Boston Childrens Hosp.) Series F, 3.65%,
BPA Sanwa Bank 1,300,000 1,300,000
(Brigham & Women's Hosp.) Series A, 3.60%,
LOC Sanwa Bank 6,400,000 6,400,000
(Cap. Asset Prog.):
Series A, 3.70%, LOC First Nat'l. Bank of Chicago 4,900,000 4,900,000
Series E, 3.45%, LOC Sanwa Bank 9,300,000 9,300,000
Series G1, 3.35% (MBIA Insured) BPA Credit Suisse 3,200,000 3,200,000
Series 1985 D, 3.65% (MBIA Insured)
BPA Sanwa Bank 18,600,000 18,600,000
(Harvard Univ.) Series I, 3.35% 40,841,000 40,841,000
(MIT) Series G, 3.40% 8,000,000 8,000,000
(Wellesley College) Series B, 3.40% 3,200,000 3,200,000
(Williams College) Series E, 3.65% 2,000,000 2,000,000
Massachusetts Hsg. Fin. Agcy. Participating VRDN: (c)
Series PT-33, 4% (AMBAC Insured)
(Liquidity Facility Ind. Bank of Japan) (b) 1,500,000 1,500,000
Series PT-42, 3.90%
(Liquidity Facility Ind. Bank of Japan) 3,000,000 3,000,000
Series 13C, 3.75%
(Liquidity Facility Morgan Guaranty) 3,600,000 3,600,000
Massachusetts Hsg. Fin. Agcy. Single Family Hsg. Rev. Bonds:
Series 34, 4.15% tender 6/1/96
(FGIC & Capital Market Services Inc. Insured) (b) 3,500,000 3,500,000
Series 35, 4.10% tender 6/1/96
(FGIC & Capital Market Services Inc. Insured) 4,100,000 4,100,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev., VRDN :
Rfdg. (First Healthcare Corp. Proj.) Series 1992 B, 3.85%,
LOC Wachovia Bank of Georgia 1,130,000 1,130,000
Rfdg. (First Healthcare Corp. for Hillhaven Proj.) 3.85%,
LOC Wachovia Bank of Georgia 1,195,000 1,195,000
Rfdg. (Quamco Inc. Proj.):
Series 1988 A, 3.45%, LOC Bank of Nova Scotia 655,000 655,000
Series 1988 B, 3.45%, LOC Bank of Nova Scotia 845,000 845,000
(Falmount Assisted Living) Series 1995, 3.80%,
LOC Bank of Boston 2,200,000 2,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev., VRDN - continued
(General Signal Proj.) 3.45%,
LOC Wachovia Bank of Georgia $ 3,000,000 $ 3,000,000
(Manhasset Bay-Cambridge) Series 1985, 3.55%,
LOC Bank of Tokyo 3,900,000 3,900,000
(Nova Realty Trust) Series 1994, 3.70%,
LOC First Nat'l. Bank of Boston 2,000,000 2,000,000
(Riverdale Mills Corp.) Series 1995, 3.90%,
LOC Bank of Boston (b) 2,000,000 2,000,000
(Tsubaki Inc.) 4.10%, LOC Sakura Bank (b) 1,700,000 1,700,000
(United Medical Corp.) Series 1992, 3.70%,
LOC Chemical Bank, VRDN (b) 1,400,000 1,400,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev.
(Holyoke Wtr. Pwr. Co. Proj.) Series 1990, 3.95%,
LOC Swiss Bank, VRDN (b) 2,600,000 2,600,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev. Bonds
Rfdg. (New England Power Co. Proj.):
Series 1992 B:
4.15% tender 8/7/95 3,000,000 3,000,000
4.15% tender 8/10/95 5,000,000 5,000,000
4.05% tender 8/14/95 1,600,000 1,600,000
3.90% tender 8/16/95 4,000,000 4,000,000
4.15% tender 8/23/95 2,000,000 2,000,000
3.40% tender 9/21/95 2,000,000 2,000,000
3.60% tender 9/21/95 2,000,000 2,000,000
3.55% tender 10/11/95 700,000 700,000
3.40% tender 10/16/95 2,300,000 2,300,000
Series 1993 A, 3.75% tender 10/10/95 2,000,000 2,000,000
Series 1993 B:
4.15% tender 8/21/95 2,000,000 2,000,000
3.20% tender 8/24/95 3,000,000 3,000,000
3.60% tender 10/17/95 5,800,000 5,800,000
Massachusetts Ind. Fin. Agcy. Resource Recovery Rev.
(Ogden-Haverhill Proj.) VRDN:
Series 1986 B, 3.45%,
LOC Union Bank of Switzerland (b) 10,650,000 10,650,000
Series 1992 A, 3.50%,
LOC Union Bank of Switzerland 9,795,000 9,795,000
Massachusetts Ind. Fin. Agcy. Rev. Bonds
(St. Mark's School of Southborough) Series 1991, 5.25%
tender 1/9/96, LOC Barclays Bank 1,000,000 1,000,000
Massachusetts Ind. Fin. Agcy. Rev., VRDN:
Rfdg. (Showa Women's Institute Boston Inc. 1994 Proj.)
3.75%, LOC Fuji Bank 300,000 300,000
Rfdg. (WGBH Ed. Foundation Proj.) Series 1992, 3.80%,
LOC Nat'l. Westminster Bank 2,510,000 2,510,000
(Mary Ann Morse Nursing Home):
Series A, 3.80%, LOC ABN-AMRO Bank 3,300,000 3,300,000
Series B, 3.60%, LOC ABN-AMRO Bank 4,600,000 4,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Rev., VRDN: - continued
(New England Deaconess Assoc.) Series 1993 B, 3.50%,
LOC Banque Paribas $ 300,000 $ 300,000
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys.
Participating VRDN, Series 1993 D, 3.80% (Liquidity
Facility Hong Kong & Shanghai Banking Corp.) (c) 3,800,000 3,800,000
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply
Sys. Rev. Series 1994 C, 3.65%,
LOC Canadian Imperial Bank, VRDN 17,000,000 17,000,000
Massachusetts Port Auth. Rev., VRDN:
Series 1995 A, 4.10%,
LOC Landesbanken Hessen-Thuringen 3,800,000 3,800,000
Series 1995 B, 4.20%,
LOC Landesbanken Hessen-Thuringen (b) 8,105,000 8,105,000
Massachusetts Single Family Hsg. Auth. Rev. Bonds
3.90% tender 9/1/95 (AMBAC Insured)
(Liquidity Facility Citibank) (b) (c) (d) 5,700,000 5,700,000
Massachusetts Tpk. Auth. Participating VRDN,
Series PA-1009, 3.95% (Liquidity Facility Merrill
Lynch) (c) 3,360,000 3,360,000
Massachusetts Wtr. Resource Auth. Gen. Oblig. Rev.
Series A, 7.625% 8/1/95 (MBIA Insured) 1,000,000 1,000,000
Massachusetts Wtr. Resource Auth. Participating VRDN: (c)
Series PW-11, 3.90%
(Liquidity Facility Bank of Nova Scotia) 2,000,000 2,000,000
Series PW-20, 3.90%
(Liquidity Facility Canadian Imperial Bank) 2,000,000 2,000,000
Massachusetts Wtr. Resource Auth. Rev., CP:
4.15% 8/10/95, LOC Morgan Guaranty Trust Co. 2,000,000 2,000,000
4.05% 8/14/95, LOC Morgan Guaranty Trust Co. 2,000,000 2,000,000
4.15% 8/28/95, LOC Morgan Guaranty Trust Co. 2,000,000 2,000,000
3.85% 8/30/95, LOC Morgan Guaranty Trust Co. 3,200,000 3,200,000
4.05% 9/11/95, LOC Morgan Guaranty Trust Co. 6,000,000 6,000,000
3.40% 10/20/95, LOC Morgan Guaranty Trust Co. 4,000,000 4,000,000
Natick BAN 4.10% 5/22/96 2,710,000 2,712,103
New Bedford BAN 4.25% 10/6/95, BPA Fleet Bank 800,000 801,140
Northampton BAN:
4% 5/31/96 535,000 535,642
4.20% 5/31/96 1,790,000 1,791,715
Reading Township BAN 3.80% 7/12/96 3,000,000 3,001,340
Somerville BAN 4.08% 11/17/95 1,700,000 1,700,377
Westborough Township BAN 3.80% 7/18/95 1,500,000 1,500,694
Westfield BAN 4.10% 10/26/95 1,000,000 1,000,809
Worcester BAN 5% 8/31/95, LOC Sanwa Bank 4,168,000 4,169,331
427,876,508
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - 3.4%
Puerto Rico Commonwealth Participating VRDN,
Series PT-63, 3.80% (Liquidity Facility Bayerische
Hypotheken) (c) $ 2,900,000 $ 2,900,000
Puerto Rico Elec. Pwr. Auth. Participating VRDN, BTP-105,
3.625% (Liquidity Facility Bankers Trust Co.) (c) 7,068,600 7,068,600
Puerto Rico Ind. Med. Higher Ed. & Envir. Cont. Facs. Fin.
Auth. Rev. (Mendez/Feagm Proj.) Series 1985, 3.90%,
LOC Bank of Tokyo, VRDN 1,000,000 1,000,000
Puerto Rico Gov't. Dev. Bank, CP:
4.10% 8/9/95 2,000,000 2,000,000
4.15% 8/11/95 2,000,000 2,000,000
14,968,600
TOTAL INVESTMENTS - 100% $ 442,845,108
Total Cost for Income Tax Purposes $ 442,845,108
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - 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.
(c)Provides evidence of ownership in one or more underlying municipal
bonds.
(d)Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Massachusetts
Single Family
Hsg. Auth.
Rev. Bonds 6/1/95 $ 5,700,000
INCOME TAX INFORMATION
At January 31, 1995, the fund had a capital loss carryforward of
approximately $8,000 which will expire on January 31, 2003.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995 (UNAUDITED)
5.ASSETS 6. 7.
8.Investment in securities, at value - See accompanying 9. $ 442,845,108
schedule
10.Cash 11. 7,549,058
12.Interest receivable 13. 2,567,659
14. 15.TOTAL ASSETS 16. 452,961,825
17.LIABILITIES 18. 19.
20.Distributions payable $ 10,617 21.
22.Accrued management fee 186,102 23.
24. 25.TOTAL LIABILITIES 26. 196,719
27.28.NET ASSETS 29. $ 452,765,106
30.Net Assets consist of: 31. 32.
33.Paid in capital 34. $ 452,777,446
35.Accumulated net realized gain (loss) on investments 36. (12,340)
37.38.NET ASSETS, for 452,776,021 shares outstanding 39. $ 452,765,106
40.41.NET ASSET VALUE, offering price and redemption 42. $1.00
price per share ($452,765,106 (divided by) 452,776,021 shares)
</TABLE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1995 (UNAUDITED)
43.44.INTEREST INCOME 45. $ 8,136,669
46.EXPENSES 47. 48.
49.Management fee $ 1,057,846 50.
51.Non-interested trustees' compensation 1,135 52.
53. 54.TOTAL EXPENSES 55. 1,058,981
56.57.NET INTEREST INCOME 58. 7,077,688
59.60.NET REALIZED GAIN (LOSS) ON INVESTMENTS 61. (5,460)
62.63.NET INCREASE IN NET ASSETS RESULTING FROM 64. $ 7,072,228
OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JULY 31, 1995 JANUARY 31,
(UNAUDITED) 1995
65.INCREASE (DECREASE) IN NET ASSETS
66.Operations $ 7,077,688 $ 9,035,922
Net interest income
67. Net realized gain (loss) (5,460) (7,953)
68. 69.NET INCREASE (DECREASE) IN NET ASSETS 7,072,228 9,027,969
RESULTING FROM OPERATIONS
70.Distributions to shareholders from net interest (7,077,688) (9,035,922)
income
71.Share transactions at net asset value of $1.00 per 320,224,314 566,930,253
share
Proceeds from sales of shares
72. Reinvestment of distributions from net interest 6,931,775 8,761,154
income
73. Cost of shares redeemed (280,672,924) (516,275,938)
74.75. 46,483,165 59,415,469
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS
76. 77.TOTAL INCREASE (DECREASE) IN NET ASSETS 46,477,705 59,407,516
78.NET ASSETS 79. 80.
81. Beginning of period 406,287,401 346,879,885
82. End of period $ 452,765,106 $ 406,287,401
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JANUARY 31, SIX MONTHS YEAR MARCH 4, 1991
ENDED ENDED ENDED (COMMENCEME
JULY 31, 1995 JANUARY 31, JULY 31, NT
OF OPERATIONS) T
O
JULY 31,
(UNAUDITED) 1995 1994 1993 1992 1991
85.SELECTED PER-SHARE DATA
86.Net asset value, beginning of period
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
87.Income from Investment Operations
.017 .024 .019 .012 .034 .017
Net interest income
88.Less Distributions
(.017) (.024) (.019) (.012) (.034) (.017)
From net interest income
89.Net asset value, end of period
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
90.TOTAL RETURN B
1.67% 2.42 1.95 1.23% 3.45 1.71%
% % %
91.RATIOS AND SUPPLEMENTAL DATA
92.Net assets, end of period (000 omitted)
$ 452,765 $ 406,287 $ 346,880 $ 333,655 $ 278,369 $ 122,114
93.Ratio of expenses to average net assets
.50% .50 .40 .17% .05 -
A % % A %
94.Ratio of expenses to average net assets before
.50% .50 .50 .50% .50 .50%A
expense reductions
A % % A %
95.Ratio of net interest income to average net assets
3.34% 2.40 1.93 2.44% 3.29 4.17%A
A % % A %
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1995 (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 substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. Accretion
of market discount represents unrealized gain until realized at the time of
a security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
RESTRICTED SECURITIES. The fund is permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
restricted securities (excluding 144A issues) amounted to $5,700,000 or
1.3% of net assets.
3. 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.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$3,655 for the period.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to the fund's Distribution and Service
Plan.
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)(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)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
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
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
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President
Michael D. Conway, Assistant Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S TAX-FREE
MONEY MARKET FUNDS
California Tax-Free Money Market
Connecticut Municipal Money Market
Massachusetts Tax-Free Money Market
Michigan Municipal Money Market
New Jersey Tax-Free Money Market
New York Tax-Free Money Market
Ohio Municipal Money Market
Spartan Arizona Municipal Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
Tax-Exempt Money Market
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
