FIDELITY
(registered trademark)
MASSACHUSETTS
MUNICIPAL
FUNDS
ANNUAL REPORT
JANUARY 31, 1997
CONTENTS
CHECK PAGE NUMBERS !!!
<TABLE>
<CAPTION>
<S> <C> <C>
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
FIDELITY MASSACHUSETTS MUNICIPAL INCOME FUND
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 25 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
PERFORMANCE 29 How the fund has done over time.
FUND TALK 31 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 33 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 34 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 42 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 46 Notes to the financial statements.
REPORT OF INDEPENDENT 49 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 50
</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,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
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
(PHOTO_OF_EDWARD_C_JOHNSON_3D)DEAR SHAREHOLDER:
As 1997 begins, the stock and bond markets generally have continued on the
course they followed during the past year. Through January, stocks
maintained their unprecedented climb, with the large companies still
setting the pace. With low, stable interest rates, the bond market has
tended to mirror its historical returns in the mid-single digits.
While it's impossible to predict the future direction of the markets with
any degree of certainty, there are certain basic principles that can help
investors plan for their future needs.
The longer your investment time frame, the more likely it is that you will
be affected by short-term market volatility. A 10-year investment horizon
appropriate for saving for a college education, for example, enables you to
weather market cycles in a long-term fund, which may have a higher risk
potential, but also has a higher potential rate of return.
An intermediate-length fund could make sense if your investment horizon is
two to four years, while 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. These funds seek
income and a stable share price by investing in high-quality, short-term
investments. Of course, it's important to remember that there is no
assurance that a money market fund will achieve its goal of maintaining a
stable net asset value of $1.00 per share, and that these types of funds
are neither insured nor guaranteed by any agency of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it makes
good sense to follow a regular investment plan, investing a certain amount
of money in a fund at the same time each month or quarter and periodically
reviewing your overall portfolio. By doing so, you won't get caught up in
the excitement of a rapidly rising market, nor will you buy all your shares
at market highs. While this strategy - known as dollar cost averaging -
won't assure a profit or protect you from a loss in a declining market, it
should help you lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are available
24 hours a day, seven days a week to provide you the information you need
to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
FIDELITY MASSACHUSETTS MUNICIPAL INCOME FUND
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate 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. Total return reflects
the change in the value of an investment, assuming reinvestment of the
fund's dividend income and capital gains (the profits earned upon the sale
of securities that have grown in value). You can also look at the fund's
income, as reflected in the fund's yield, to measure performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity 3.06% 40.83% 98.41%
Massachusetts Municipal Income Fund
Lehman Brothers Massachusetts Enhanc 3.73% n/a n/a
ed
Municipal Bond Index
Massachusetts Municipal Debt Funds Average 3.04% 39.50% 90.19%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years, or 10 years. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Lehman Brothers Massachusetts
Enhanced Municipal Bond Index, - a total return performance benchmark for
Massachusetts investment-grade municipal bonds with maturities of at least
one year. To measure how the fund's performance stacked up against its
peers, you can compare it to the Massachusetts municipal debt funds
average, which reflects the performance of 51 mutual funds with similar
objectives tracked by Lipper Analytical Services, Inc. over the past one
year. Both benchmarks reflect investment of dividends and capital gains, if
any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity 3.06% 7.09% 7.09%
Massachusetts Municipal Income Fund
Lehman Brothers Massachusetts Enhanc 3.73% n/a n/a
ed
Municipal Bond Index
Massachusetts Municipal Debt Funds Average 3.04% 6.88% 6.64%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and show you
what would have happened if the fund had performed at a constant rate each
year. (Note: Lipper calculates average annual total returns by annualizing
each fund's total return, then taking the arithmetic average. This may
produce a slightly different figure than that obtained by averaging the
cumulative total returns and annualizing the result.)
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19970131 19970211 134716 S00000000000001
MA Muni Income LB Municipal Bond
00070 LB015
1987/01/31 10000.00 10000.00
1987/02/28 10076.36 10049.20
1987/03/31 10044.05 9942.68
1987/04/30 9538.47 9443.75
1987/05/31 9416.86 9396.91
1987/06/30 9578.82 9672.81
1987/07/31 9717.08 9771.47
1987/08/31 9751.40 9793.46
1987/09/30 9355.55 9432.37
1987/10/31 9230.78 9465.76
1987/11/30 9469.85 9712.91
1987/12/31 9665.34 9853.85
1988/01/31 9969.73 10204.84
1988/02/29 10084.31 10312.71
1988/03/31 9908.32 10193.08
1988/04/30 9989.05 10270.55
1988/05/31 10042.47 10240.86
1988/06/30 10151.00 10390.69
1988/07/31 10222.82 10458.44
1988/08/31 10257.95 10467.64
1988/09/30 10407.27 10657.10
1988/10/31 10595.28 10844.67
1988/11/30 10534.17 10745.33
1988/12/31 10696.73 10855.26
1989/01/31 10849.84 11079.74
1989/02/28 10778.77 10953.32
1989/03/31 10786.57 10927.14
1989/04/30 11051.58 11186.55
1989/05/31 11248.26 11418.90
1989/06/30 11344.24 11573.97
1989/07/31 11431.26 11731.49
1989/08/31 11386.92 11616.64
1989/09/30 11343.37 11582.02
1989/10/31 11450.83 11723.67
1989/11/30 11613.02 11928.83
1989/12/31 11685.82 12026.41
1990/01/31 11628.56 11969.53
1990/02/28 11772.54 12076.05
1990/03/31 11792.75 12079.68
1990/04/30 11637.91 11992.22
1990/05/31 11891.09 12254.01
1990/06/30 12015.68 12361.72
1990/07/31 12185.51 12543.44
1990/08/31 12039.34 12361.31
1990/09/30 12079.66 12368.36
1990/10/31 12120.90 12592.72
1990/11/30 12495.47 12845.96
1990/12/31 12548.75 12901.84
1991/01/31 12703.80 13074.98
1991/02/28 12801.25 13188.73
1991/03/31 12865.02 13193.48
1991/04/30 13043.33 13368.95
1991/05/31 13174.73 13487.80
1991/06/30 13200.75 13474.45
1991/07/31 13392.03 13638.57
1991/08/31 13514.04 13818.19
1991/09/30 13638.26 13998.10
1991/10/31 13759.83 14124.09
1991/11/30 13796.27 14163.49
1991/12/31 13967.45 14467.44
1992/01/31 14088.96 14500.43
1992/02/29 14133.86 14505.07
1992/03/31 14147.80 14510.43
1992/04/30 14273.44 14639.58
1992/05/31 14429.22 14811.88
1992/06/30 14669.18 15060.43
1992/07/31 15063.60 15511.94
1992/08/31 14874.09 15360.70
1992/09/30 15000.73 15461.16
1992/10/31 14747.31 15309.17
1992/11/30 15120.57 15583.36
1992/12/31 15264.84 15742.47
1993/01/31 15489.27 15925.55
1993/02/28 16022.16 16501.58
1993/03/31 15877.23 16327.16
1993/04/30 16023.12 16491.90
1993/05/31 16131.81 16584.58
1993/06/30 16385.95 16861.38
1993/07/31 16374.52 16883.47
1993/08/31 16716.20 17234.98
1993/09/30 17001.72 17431.29
1993/10/31 17043.51 17464.93
1993/11/30 16903.48 17311.06
1993/12/31 17237.19 17676.50
1994/01/31 17436.39 17878.37
1994/02/28 17071.53 17415.32
1994/03/31 16336.88 16706.16
1994/04/30 16391.94 16847.83
1994/05/31 16553.32 16993.90
1994/06/30 16476.23 16890.07
1994/07/31 16787.61 17199.67
1994/08/31 16861.51 17259.18
1994/09/30 16587.07 17005.81
1994/10/31 16253.15 16703.79
1994/11/30 15794.46 16401.78
1994/12/31 16190.28 16762.79
1995/01/31 16775.47 17241.87
1995/02/28 17245.41 17743.26
1995/03/31 17476.50 17947.13
1995/04/30 17484.99 17968.31
1995/05/31 18032.14 18541.68
1995/06/30 17754.00 18380.37
1995/07/31 17874.18 18554.61
1995/08/31 18091.31 18789.88
1995/09/30 18241.52 18908.82
1995/10/31 18539.02 19183.76
1995/11/30 18864.84 19502.02
1995/12/31 19116.08 19689.43
1996/01/31 19251.41 19838.09
1996/02/29 19051.04 19704.18
1996/03/31 18790.78 19452.36
1996/04/30 18708.18 19397.31
1996/05/31 18711.22 19389.55
1996/06/30 18895.01 19600.70
1996/07/31 19098.14 19779.07
1996/08/31 19065.79 19774.32
1996/09/30 19319.74 20051.16
1996/10/31 19542.06 20277.94
1996/11/30 19900.09 20649.03
1996/12/31 19803.73 20562.30
1997/01/31 19840.83 20601.16
IMATRL PRASUN SHR__CHT 19970131 19970211 134719 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Massachusetts Municipal Income Fund on January 31, 1987. As the
chart shows, by January 31, 1997, the value of the investment would have
grown to $19,841 - a 98.41% increase on the initial investment. For
comparison, look at how the Lehman Brothers Municipal Bond Index, which
reflects the performance of the investment-grade municipal bond market, did
over the same period. With dividends and capital gains, if any, reinvested,
the same $10,000 would have grown to $20,601 - a 106.01% 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
YEARS ENDED JANUARY 31,
1997 1996 1995 1994 1993
Dividend returns 5.33% 6.41% 5.85% 6.32% 6.67%
Capital appreciation returns -2.27% 8.35% -9.64% 6.25% 3.27%
Total returns 3.06% 14.76% -3.79% 12.57% 9.94%
TOTAL RETURN COMPONENTS include both dividend returns and capital
appreciation returns. 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 capital gains paid
by the fund are reinvested.
DIVIDENDS AND YIELD
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED JANUARY 31, 1997 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 5.15(cents) 30.23(cents) 60.45(cents)
Annualized dividend rate 5.32% 5.26% 5.33%
30-day annualized yield 5.08% - -
30-day annualized tax-equivalent yield 9.02% - -
</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 $11.40 over
the past month, $11.39 over the past six months and $11.34 over the past
year, you can compare the fund's income over these three periods. Dividends
per share show the income paid by the fund for a set period and do not
reflect any tax reclassifications. 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 1997 federal and state tax bracket, but does not reflect the
payment of the alternative minimum tax, if applicable.
FIDELITY MASSACHUSETTS MUNICIPAL INCOME FUND
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Stable demand helped municipal
bonds perform better than their
investment-grade taxable
counterparts in the 12 months
ending January 31, 1997.
However, uncertainty over the
direction of the economy and
Federal Reserve Board monetary
policy affected all bonds. For the
period, the Lehman Brothers
Municipal Bond Index - a broad
measure of the municipal bond
market - had a total return of
3.85%. In comparison, the
Lehman Brothers Aggregate
Bond Index - a broad measure
of the performance of the U.S.
taxable bond market - returned
3.26%. New issue supply was
strong through most of the
period, but insurance companies
and individual investors helped
sustain demand. The diminishing
likelihood of significant tax reform
in the near future also helped
support the muni market. Like
most domestic bonds, munis
were affected by signs of strength
in the economy early in 1996.
Nevertheless, the market
conditions that supported the
muni market helped munis enter
the fall trading at expensive
levels relative to taxable
counterparts. However, demand
declined in October and munis
stalled because their rich
valuations made them less
attractive buy candidates, and
those investors who owned munis
sought to sell them to take profits.
Munis outperformed comparable
Treasuries in November and
December, but lagged in January.
From December on, munis and
the rest of the bond market
stalled as a result of conflicting
economic data and fears that
inflation might encourage the Fed
to raise short-term rates.
An interview with Steven Harvey, Portfolio Manager of Fidelity
Massachusetts Municipal Income Fund
Q. HOW DID THE FUND PERFORM, STEVE?
A. For the 12 months that ended January 31, 1997, the fund had a total
return of 3.06%. That was in line with the Massachusetts municipal debt
funds average, which had a 3.04% return during the same 12-month period,
according to Lipper Analytical Services. The Lehman Brothers Massachusetts
Enhanced Municipal Bond Index posted a 12-month return of 3.73%.
Q. WHAT WERE THE KEYS TO THE FUND'S PERFORMANCE?
A. The fund's increasing stake in general obligation bonds (GOs) was one
factor. State GOs - which are municipal bonds backed by the full faith and
credit of the state - benefited from an improving economy and, as a result,
a better fiscal footing for the state. The state budget posted a surplus
for the fiscal year that ended June 30, 1996. And, during the first six
months of fiscal year 1997, tax collections were well above the previous
year's levels - as well as budgeted levels - thanks mainly to especially
strong sales tax collections. However, even after adding more state GOs,
the fund continued to have a smaller weighting than its benchmark in these
bonds. That helps to explain why the fund lagged its benchmark during the
period. I purposely kept the fund's stake in state GOs light for two
reasons. First, I didn't want the fund to be overly reliant on the fortunes
of one type of bond. Second, I believe that there are growing uncertainties
about the state's long-term outlook. The state will most likely have to
take on a large amount of debt to finance the Central Artery Project and a
convention center and/or stadium for the New England Patriots.
Q. WERE THERE ANY OTHER BONDS THAT PERFORMED ESPECIALLY WELL?
A. Yes. Two of the fund's larger hospital holdings benefited from the trend
toward consolidation in the health care sector. MetroWest Health Center, a
Baa-rated hospital bond and the successor institution to Framingham Union
Hospital, was acquired by Columbia HCA. To the benefit of the fund,
MetroWest was the subject of an advanced refunding. With an advanced
refunding an issuer with existing bonds in the market will issue a second
set of bonds. Proceeds from this sale are then invested in high-quality
U.S. Treasury securities, and these Treasuries then secure the original
bonds until the call date. The bond investor can gain two important
advantages in this situation: one, the bonds are backed by high-quality
Treasuries and two, because an advanced refunding can lower the effective
maturity date of the original bonds, there is the potential for price
appreciation since they trade to a shorter call date, rather than to a
longer maturity date. The issuer, on the other hand, gains a lower interest
rate on its debt. The second of the fund's large hospitals that did well
was Lowell General Hospital. Because of its strong competitive and
financial position, the hospital holdings was able to refinance its older
debt at lower current interest rates. As a result, its bonds appreciated,
reflecting the hospital's lower debt costs and improved financial outlook.
Q. HOW DID THE FUND'S STAKE IN NON-CALLABLE BONDS PERFORM?
A. Non-callable bonds - which can't be redeemed by their issuer before
maturity - did well during the year and helped the fund's performance.
Investors were willing to pay relatively high prices for non-callable bonds
since interest rates were falling and non-callables tend to do well in
declining rate environments. As the year ended, I felt that investors were
overpaying for some non-callable bonds, so I sold some to lock in
significant gains.
Q. WHAT WERE THE DISAPPOINTMENTS?
A. I'd say that one was the erratic performance of bonds issued by the
Massachusetts Turnpike Authority, which has a new management team that is
changing the entire toll structure. The market interpreted these changes as
somewhat negative developments for the Authority. What's more, the
Authority is being asked to contribute as much as $100 million to the
Central Artery Project. To many observers, these two events seem to
indicate that the Authority has lost some of its political independence and
is probably not as strong as it once was.
Q. WHAT'S YOUR OUTLOOK?
A. Over the past six months, we've experienced a healthy municipal bond
market rally as interest rates have fallen. I think it may be unrealistic
to expect the recent rally to continue at its present pace. Therefore, the
fund's returns likely will derive less from price appreciation and more
from the income that its holdings generate. However, I believe that with
careful research I can identify situations that offer the potential for
price appreciation based on positive events that would enhance their credit
rating, while avoiding those with deteriorating credit quality.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
FUND FACTS
GOAL: to provide high current
income exempt from federal
income tax and
Massachusetts personal
income taxes by investing in
investment-grade
municipal securities under
normal conditions
TRADING SYMBOL: FDMMX
FUND NUMBER: 070
START DATE: November 10,
1983
SIZE: as of January 31,
1997, more than $1.1 billion
MANAGER: Steven Harvey,
since August 1995; manager,
Spartan New Jersey
Municipal Income Fund,
since 1996; Fidelity Ohio
Municipal Income Fund, since
1994; Spartan Pennsylvania
Municipal Income and
Spartan Maryland Municipal
Income funds, since 1993;
joined Fidelity in 1986
(checkmark)
STEVE HARVEY ON THE FUTURE OF
THE STATE ECONOMY AND FISCAL
WELL-BEING:
"The Massachusetts
economy remains quite
vibrant. As anecdotal
evidence of that, office
vacancies in Boston are at
20-year lows and the state's
unemployment rate has
dipped under 5%, well below
the national average. The
state continues to be
successful in cutting taxes to
attract and retain businesses.
In my view, it can continue to
do that as long as the
economy remains healthy and
the state's biggest budget item
- - welfare case loads -
declines. However, a very
large future capital program
remains a major concern. I
think the state's ability to
manage its large future debt
needs will determine the
credit and trading quality of
the state's debt."
FIDELITY MASSACHUSETTS MUNICIPAL INCOME FUND
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF JANUARY 31, 1997
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO
General Obligation 26.2 24.1
Health Care 20.9 16.3
Education 11.7 11.7
Water & Sewer 11.1 10.9
Escrowed/Pre-Refunded 7.1 8.0
AVERAGE YEARS TO MATURITY AS OF JANUARY 31, 1997
6 MONTHS AGO
Years 15.3 15.3
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 JANUARY 31, 1997
6 MONTHS AGO
Years 6.9 7.3
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. BEGINNING
WITH THE REPORTING CYCLE OF JUNE,1996, THE MODEL USED TO CALCULATE
DURATIONS MAY BE SLIGHTLY MODIFIED IN ORDER TO FURTHER REFINE THIS
INFORMATION. THESE CHANGES IN METHODOLOGY MAY PRODUCE ADJUSTMENTS IN
HISTORICAL DURATION FIGURES.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JANUARY 31, 1997 AS OF JULY 31, 1996
Aaa 31.2%
Aa, A 53.4%
Baa 9.9%
Ba, B 0%
Non-rated 3.9%
Short-term
investments 1.6%
Aaa 31.3%
Aa, A 50.3%
Baa 8.2%
Ba, B 0%
Non-rated 5.3%
Short-term
investments 4.9%
Row: 1, Col: 1, Value: 31.2
Row: 1, Col: 2, Value: 53.4
Row: 1, Col: 3, Value: 9.9
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 3.9
Row: 1, Col: 6, Value: 1.6
Row: 1, Col: 1, Value: 31.3
Row: 1, Col: 2, Value: 50.3
Row: 1, Col: 3, Value: 8.199999999999999
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 5.3
Row: 1, Col: 6, Value: 4.9
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
FIDELITY MASSACHUSETTS MUNICIPAL INCOME FUND
INVESTMENTS JANUARY 31, 1997
Showing Percentage of Total Value of Investments in Securities
MUNICIPAL BONDS - 98.4%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - 95.5%
Amherst Gen. Oblig.:
6.50% 1/15/08 Aa $ 795,000 $ 855,619
6.50% 1/15/09 Aa 770,000 824,863
6.50% 1/15/10 Aa 750,000 802,500
Barnstable Ind. Dev. Fing. Auth. Ind. Dev. Rev.
(Whitehall Pavilion Health Proj.) 10.125%
2/15/26 (FHA Guaranteed) A 3,030,000 3,121,112
Bellingham Gen. Oblig.:
7.50% 7/1/06 (Pre-Refunded to
7/1/01 @ 103) (c) A 310,000 354,563
7.50% 7/1/07 (Pre-Refunded to
7/1/01 @ 103) (c) A 310,000 354,563
7.50% 7/1/08 (Pre-Refunded to
7/1/01 @ 103) (c) A 310,000 354,563
7.50% 7/1/09 (Pre-Refunded to
7/1/01 @ 103) (c) A 310,000 354,563
7.50% 7/1/10 (Pre-Refunded to
7/1/01 @ 103) (c) A 310,000 354,563
7.50% 7/1/11 (Pre-Refunded to
7/1/01 @ 103) (c) A 300,000 343,125
Boston Econ. Dev. & Ind. Corp. (Boston Army
Base 1983 Proj.) 6.25% 8/1/03 AA 4,570,000 4,696,589
Boston Gen. Oblig.:
Series A, 7% 2/1/00 (AMBAC Insured) Aaa 2,060,000 2,214,500
10% 7/1/00 (MBIA Insured) Aaa 1,000,000 1,173,750
Unltd. Tax Series A, 6.75% 7/1/11
(MBIA Insured) (Pre-Refunded to
7/1/01 @ 102) (c) Aaa 2,500,000 2,768,750
Boston Hsg. Dev. Corp. Mtg. Rev. Rfdg.
Section 8 Series A, 5.15% 7/1/08
(MBIA Insured) (FHA Guaranteed) Aaa 3,210,000 3,137,775
Boston Ind. Dev. Rev. (North End Commty.
Nursing Home) 11.45% 3/15/25
(FHA Guaranteed) AA 4,820,000 5,319,111
Boston Wtr. & Swr. Commission Rev. Gen. Sr.:
Series A:
5.40% 11/1/08 A 1,000,000 1,012,500
5.25% 11/1/19 A 10,100,000 9,456,125
Bourne Gen. Oblig. Unltd. Tax (Land Acquisition):
8% 12/15/04 Baa1 290,000 341,837
8% 12/15/05 Baa1 290,000 344,738
8% 12/15/06 Baa1 290,000 346,912
8% 12/15/07 Baa1 290,000 348,725
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Brockton Hsg. Dev. Corp. Multi-Family Hsg.
Rev. Rfdg. (Douglas House Proj.) Series 1992 A,
7.375% 9/1/24 (FNMA Coll.) AAA $ 8,215,000 $ 8,564,138
Chelsea School Proj. Loan Act 1948:
6.50% 6/15/12 (AMBAC Insured) Aaa 2,500,000 2,696,875
6% 6/15/14 (AMBAC Insured) Aaa 1,830,000 1,900,913
Dighton & Rehoboth Reg'l. School Dist.:
5.40% 5/15/10 (AMBAC Insured) Aaa 385,000 385,481
5.40% 5/15/11 (AMBAC Insured) Aaa 185,000 184,537
5.40% 5/15/12 (AMBAC Insured) Aaa 225,000 221,343
Granville Gen. Oblig.:
7.30% 7/15/05 (MBIA Insured) Aaa 145,000 169,469
7.30% 7/15/06 (MBIA Insured) Aaa 145,000 170,738
7.30% 7/15/07 (MBIA Insured) Aaa 140,000 165,550
7.30% 7/15/08 (MBIA Insured) Aaa 140,000 166,075
Halifax Gen. Oblig.:
6.20% 6/1/10 (AMBAC Insured) Aaa 325,000 348,156
6.25% 6/1/11 (AMBAC Insured) Aaa 325,000 348,156
6.30% 6/1/12 (AMBAC Insured) Aaa 325,000 349,375
6.30% 6/1/13 (AMBAC Insured) Aaa 325,000 349,375
Haverhill Rfdg. Series A:
6.40% 9/1/03 (AMBAC Insured) Aaa 1,600,000 1,732,000
6.50% 9/1/04 (AMBAC Insured) Aaa 1,595,000 1,726,587
Holyoke Gen. Oblig.:
Series A:
5.50% 6/15/04 (FSA Insured) Aaa 1,255,000 1,302,063
6% 6/15/05 (FSA Insured) Aaa 1,350,000 1,442,813
6% 6/15/06 (FSA Insured) Aaa 1,300,000 1,387,750
5.50% 6/15/16 (FSA Insured) Aaa 2,100,000 2,089,500
Series B:
5.50% 6/15/04 (FSA Insured) Aaa 2,015,000 2,090,562
6% 6/16/06 (FSA Insured) Aaa 1,400,000 1,494,500
Holyoke School Proj. Loan Act:
7.35% 8/1/02 Baa 2,270,000 2,482,813
7.65% 8/1/09 Baa 2,205,000 2,400,694
Hudson Ltd. Tax:
7.50% 8/15/01 A 215,000 238,919
7.50% 8/15/02 A 215,000 237,844
7.50% 8/15/03 A 215,000 239,456
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Leicester Gen. Oblig. Unltd. Tax:
5% 1/15/11 (MBIA Insured) Aaa $ 515,000 $ 487,319
5.10% 1/15/13 (MBIA Insured) Aaa 305,000 288,606
5.10% 1/15/14 (MBIA Insured) Aaa 500,000 471,875
Lowell Gen. Oblig.:
Rfdg. Series A 5.50% 1/15/10 (FSA Insured) Aaa 2,000,000 2,000,000
Ltd. Tax:
8% 1/15/00 Baa1 750,000 782,813
6.25% 8/1/04 (AMBAC Insured) Aaa 2,035,000 2,220,694
6.25% 8/1/05 (AMBAC Insured) Aaa 2,120,000 2,321,400
5.80% 4/1/08 (FSA Insured) Aaa 1,195,000 1,253,256
8.40% 1/15/09 Aaa 1,250,000 1,420,312
7.625% 2/15/10
(Pre-Refunded to 2/15/01 @ 103) (c) Aaa 1,650,000 1,883,062
Lowell Hsg. Dev. Corp. Multi-Family Rev.:
Rfdg. Series A, 7.875% 11/1/24 (FNMA Coll.) AAA 5,440,000 5,725,600
7.875% 11/1/00 (FNMA Coll.) AAA 525,000 547,313
Lynn Wtr. & Swr. Commission Rfdg.:
5.35% 12/1/07 (FGIC Insured) Aaa 760,000 773,300
5.40% 12/1/08 (FGIC Insured) Aaa 805,000 815,062
5.45% 12/1/09 (FGIC Insured) Aaa 850,000 856,375
5.50% 12/1/10 (FGIC Insured) Aaa 500,000 500,625
Massachusetts Bay Trans. Auth.:
Rfdg. (Gen. Trans. Sys.) Series A:
5.50% 3/1/09 A1 6,000,000 6,127,500
5.50% 3/1/12 A1 4,350,000 4,393,500
6.25% 3/1/12 A1 1,500,000 1,638,750
Rfdg. Series B:
6% 3/1/12 A1 7,440,000 7,653,900
6.20% 3/1/16 A1 27,500,000 29,596,875
5.50% 3/1/21 A1 10,750,000 10,360,312
(Gen. Trans. Sys.) Series A:
6.25% 3/1/05 A1 2,780,000 3,044,100
5.70% 3/1/09 A1 5,000,000 5,193,750
5.80% 3/1/11 A1 6,435,000 6,748,706
5.80% 3/1/12 A1 3,000,000 3,138,750
7% 3/1/21 A1 1,500,000 1,764,375
5.75% 3/1/25 A1 9,675,000 9,638,719
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Edl. Loan Auth. (Student Loans):
5.75% 7/1/07 (AMBAC Insured) Aaa $ 3,365,000 $ 3,453,331
5.85% 7/1/08 (AMBAC Insured) Aaa 5,000,000 5,131,250
Massachusetts Gen. Oblig.:
Rfdg:
Series A:
6.25% 7/1/02 A1 12,565,000 13,491,669
6.25% 7/1/03 A1 18,500,000 20,072,500
6.25% 7/1/04 A1 9,300,000 10,137,000
6% 7/1/05 (AMBAC Insured) Aaa 4,000,000 4,320,000
5.25% 2/1/08 A1 5,000,000 5,012,500
Series B:
5.40% 11/1/06 A1 3,750,000 3,867,187
6.50% 8/1/08 A1 9,500,000 10,592,500
(Consolidated Loan):
Series A:
0% 6/1/97 A1 1,225,000 1,209,871
7.50% 6/1/04 A1 2,100,000 2,433,375
5.40% 11/1/06 A1 1,000,000 1,031,250
7.625% 6/1/08
(Pre-Refunded to 6/01/01 @102) (c) Aaa 5,000,000 5,700,000
5.50% 11/1/08 A1 5,000,000 5,168,750
5.75% 6/1/16 A1 19,820,000 19,919,100
Series B:
0% 6/1/99 A1 2,000,000 1,810,000
0% 7/1/02 A1 12,250,000 9,432,500
Series C:
7.25% 12/1/00 (FGIC Insured) Aaa 2,000,000 2,145,000
0% 12/1/05 A1 6,500,000 4,160,000
Series D:
6.875% 7/1/10
(Pre-Refunded to 7/1/01 @ 102) (c) Aaa 1,000,000 1,112,500
6% 7/1/12
(Pre-Refunded to 7/1/01 @ 100) (c) A1 4,700,000 4,914,075
(Massachusetts State College Bldg.)
7.50% 5/1/05 A1 3,000,000 3,536,250
Massachusetts Health & Ed. Facs. Auth. Rev.:
Rfdg. (Baystate Med. Ctr.) Series D
5% 7/1/12 (FGIC Insured) Aaa 6,250,000 5,968,750
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Ed. Facs. Auth. Rev.: - continued
Rfdg. (Boston College) Series K:
5.25% 6/1/10 A1 $ 3,025,000 $ 2,990,969
5.375% 6/1/14 A1 10,445,000 10,262,212
5.25% 6/1/23 A1 8,000,000 7,330,000
Rfdg. (Harvard Univ.) Series P:
6.50% 11/1/05 Aaa 1,000,000 1,128,750
5.60% 11/1/14 Aaa 1,000,000 1,005,000
5.625% 11/1/28 Aaa 1,500,000 1,479,375
5.375% 11/1/32 Aaa 4,000,000 3,765,000
Rfdg. (Massachusetts Gen. Hosp.) Series F,
6.25% 7/1/12 (AMBAC Insured) Aaa 3,250,000 3,562,812
Rfdg. (Morton Hosp. & Med. Ctr.) Series B,
5.25% 7/1/08 (Connie Lee Insured) AAA 2,800,000 2,761,500
Rfdg. (Newton-Wellesley Hosp.) Series G:
6% 7/1/12 (MBIA Insured) Aaa 4,070,000 4,248,062
6.125% 7/1/15 (MBIA Insured) Aaa 4,500,000 4,708,125
Rfdg. (Wheaton College) Series C,
5.125% 7/1/09 A 1,130,000 1,089,037
(Anna Jaques Hosp.) Series B:
5.90% 10/1/99 Baa1 930,000 942,787
6% 10/1/00 Baa1 985,000 1,002,237
6.875% 10/1/12 Baa1 3,250,000 3,355,625
(Baystate Med. Ctr.)
Series D, 5.50% 7/1/16 (FGIC Insured) Aaa 6,400,000 6,176,000
Series E:
6% 7/1/04 (FSA Insured) Aaa 1,290,000 1,372,237
6% 7/1/05 (FSA Insured) Aaa 1,385,000 1,473,294
6% 7/1/06 (FSA Insured) Aaa 1,425,000 1,514,062
(Blood Institute) Series A, 6.50% 2/1/22 - 15,540,000 15,656,550
(Cape Cod Health Sys.) Series A, 5.25%
11/15/13 (Connie Lee Insured) AAA 3,500,000 3,329,375
(Central Med. Ctr.) Series B, 0% 6/23/22
(AMBAC Insured) (d) Aaa 10,000,000 11,262,500
(Dana Farber Cancer Proj.) Series G-1:
6.25% 12/1/14 A1 3,000,000 3,153,750
5.50% 12/1/27 A1 22,625,000 21,267,500
(Daughter's Charity-Carney Hosp.) Series C,
7.75% 7/1/14 (Pre-Refunded to
7/1/00 @ 102) (c) Aaa 2,300,000 2,584,625
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Ed. Facs. Auth. Rev.: - continued
(Emerson Hospital):
Series C, 8% 7/1/18
(Pre-Refunded to 7/1/00 @ 102) (c) Baa1 $ 22,150,000 $ 25,029,500
Series D, 5.70% 8/15/12 (FSA Insured) Aaa 9,475,000 9,569,750
(Falmouth Hosp.) Series C, 5.50% 7/1/08
(MBIA Insured) Aaa 1,000,000 1,018,750
(Faulkner Hosp.) Series C:
6% 7/1/13 Baa1 9,745,000 9,598,825
6% 7/1/23 Baa1 6,605,000 6,316,031
(Hebrew Rehabilitation Ctr. For Aged) Series B:
7% 7/1/97
(Pre-Refunded to 7/1/97 @ 100) (c) A- 380,000 383,184
7.375% 7/1/17 A- 14,000,000 14,483,840
(Lahey Hitchcock Clinic Med. Ctr.) Series B,
5.25% 7/1/10 (MBIA Insured) Aaa 14,120,000 13,978,800
(Lowell Gen. Hosp.) Series A:
8.25% 6/1/00 A3 5,020,000 5,611,869
(Med., Academic, & Scientific Cmmty.
Organizations) Series A, 6.625% 1/1/15 A- 4,150,000 4,341,937
(Mount Auburn Hosp.) Series B-1:
6.25% 8/15/14 (MBIA Insured) Aaa 1,250,000 1,318,750
6.30% 8/15/24 (MBIA Insured) Aaa 5,000,000 5,200,000
(New England Med. Ctr.) Series G, 5.375%
7/1/24 (MBIA Insured) Aaa 1,200,000 1,140,000
(Notre Dame Health Care Ctr.) Series A:
7.25% 10/1/01 - 595,000 621,775
7.875% 10/1/22 - 5,000,000 5,162,500
(Simmons College) Series B, 7.50% 10/1/20 Baa1 6,190,000 6,716,150
(Smith College) Series D, 5.75% 7/1/24 Aa 5,100,000 4,998,000
(Tufts Univ.) 6.69% 8/15/18 (FGIC Insured) (d) Aaa 7,900,000 7,742,000
(Wheaton College) Series C:
5.25% 7/1/14 A 2,655,000 2,558,756
5.25% 7/1/19 A 2,000,000 1,880,000
(Whidden Mem. Hosp.) Series B,
7.375% 7/1/98 (Pre-Refunded to
7/1/97 @100) (c) A- 490,000 497,742
(Williams College) Series F, 5.50% 7/1/26 Aa1 5,165,000 4,939,031
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Hsg. Fin. Agcy. (Hsg. Proj.) Series A,
6.15% 10/1/15 (AMBAC Insured) Aaa $ 1,000,000 $ 1,011,250
Massachusetts Hsg. Fin. Agcy. Hsg. Rev.:
(Single Family Hsg.):
Rfdg. Series A, 6% 12/1/13 (MBIA Insured) Aaa 5,680,000 5,743,900
Series 3, 7.30% 6/1/14 Aa 6,000,000 6,153,660
Series 8, 7.70% 6/1/17 Aa 500,000 523,125
Series 10, 7.70% 12/1/17 Aa 690,000 720,188
Series 16:
7.80% 12/1/05 Aa 820,000 855,875
7.90% 6/1/14 Aa 795,000 831,769
6.60% 12/1/24 Aa 19,550,000 20,112,062
6.75% 6/1/26 Aa 2,700,000 2,801,250
6.65% 12/1/27 Aa 7,000,000 7,253,750
Massachusetts Ind. Fin. Agcy. Rev.:
Rfdg. (Boston Edison Co. Proj.) Series A,
5.75% 2/1/14 (Pre-Refunded to
7/1/98 @ 102) (c) Baa2 8,000,000 7,840,000
Rfdg. (Chelsea Jewish Nursing Home) Series A,
11.15% 2/15/25 (FHA Guaranteed) A- 3,560,000 3,920,948
Rfdg. (Framingham Union Hosp.) Series A,
8.25% 7/1/00 (Pre-Refunded to
7/1/98 @ 102) (c) Aaa 2,445,000 2,640,600
Rfdg. (Lesley College Proj.) Series A,
6.30% 7/1/15 (Connie Lee Insured) Aaa 2,525,000 2,603,906
Rfdg. (Milton Academy) Series B,
5.25% 9/1/19 (MBIA Insured) Aaa 2,500,000 2,343,750
Rfdg. (Museum of Fine Arts):
5% 1/1/01 (MBIA Insured) Aaa 2,800,000 2,849,000
5.125% 1/1/04 (MBIA Insured) Aaa 1,150,000 1,171,562
5.375% 1/1/05 (MBIA Insured) Aaa 1,750,000 1,817,812
Rfdg. (Museum of Science Proj.)
5.10% 11/1/09 (FSA Insured) Aaa 830,000 810,287
Rfdg. (Philips Academy) 5.375% 9/1/23 Aa1 14,800,000 14,041,500
(Atlanticare Med. Ctr.):
Series A, 10.125% 11/1/14 - 1,900,000 1,840,625
Series B, 10.125% 11/1/14 - 8,200,000 7,943,750
(Babson College) Series A:
5.60% 10/1/06 (MBIA Insured) Aaa 515,000 541,394
5.70% 11/1/07 (MBIA Insured) Aaa 545,000 572,931
(Brandon Residential Treatment Proj.)
8.75% 2/1/24 - 5,320,000 5,359,900
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (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 $ 1,484,738
(Holy Cross College) 7% 7/1/19
(Pre-Refunded to 7/1/99 @101) (c) A1 9,000,000 9,663,750
(Institute Dev. Disabilities) 9.25% 6/1/09 - 4,030,000 3,949,400
(Leominster Hosp.) Series A, 8.375% 8/1/99
(Escrowed to Maturity) (c) - 2,500,000 2,615,625
(Massachusetts Biomedical/Mass. Gen. Hosp.):
Series A-1, 0% 8/1/02 A1 3,650,000 2,774,000
Series A-2:
0% 8/1/03 A1 1,000,000 715,000
0% 8/1/05 A 24,600,000 15,651,750
0% 8/1/07 A 25,000,000 13,968,750
0% 8/1/08 A 15,000,000 7,837,500
(Springfield College):
5.25% 9/15/03 Baa1 755,000 750,281
5.25% 9/15/04 Baa1 885,000 873,937
5/35% 9/15/05 Baa1 930,000 917,212
5.625% 9/15/10 Baa1 1,000,000 956,250
(Whitehead Institute Biomedical Research)
5.125% 7/1/26 Aa 14,600,000 13,267,750
Massachusetts Muni. Wholesale Elec. Co.
Pwr. Supply Sys. Rev.:
Rfdg. Series A:
5.10% 7/1/08 (AMBAC Insured) Aaa 1,000,000 991,250
6% 7/1/18 (MBIA Insured) Aaa 10,000,000 10,100,000
Rfdg. Series B:
6.625% 7/1/04 Baa 4,675,000 5,054,844
6.75% 7/1/08 Baa 2,000,000 2,135,000
6.75% 7/1/17 Baa 9,050,000 9,536,437
Series A, 6.75% 7/1/08 Baa 3,000,000 3,202,500
Series C, 6.625% 7/1/18 (MBIA Insured) Baa 10,000,000 10,625,000
Series D, 6% 7/1/06 Baa 1,000,000 1,036,250
Series E, 6% 7/1/06 Baa 1,640,000 1,699,450
Massachusetts Port. Auth. Rev.:
Rfdg:
7.125% 7/1/12 Aa 2,490,000 2,533,426
Series A:
5.50% 7/1/09 Aa 3,160,000 3,175,800
5% 7/1/13 Aa 8,835,000 8,293,856
5.625% 7/1/12 (Escrowed to Maturity) (c) Aaa 1,900,000 1,902,375
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Spl. Oblig. Rev.:
(Gas Tax) Series A, 6% 6/1/13 A1 $ 17,695,000 $ 18,071,019
Series A, 5.80% 6/1/14 A1 4,185,000 4,221,619
7% 6/1/02 A1 3,050,000 3,362,625
5.20% 6/1/07 (AMBAC Insured) Aaa 6,950,000 7,010,812
Massachusetts Wtr. Poll. Abatement Trust Rev.:
(Wtr. Poll. Pooled Loan Prog.):
Series 1:
5.30% 2/1/05 Aa 1,000,000 1,026,250
5.40% 2/1/06 Aa 2,175,000 2,234,814
5.40% 8/1/06 Aa 2,230,000 2,291,326
5.45% 2/1/07 Aa 2,000,000 2,047,500
Series A:
6% 8/1/02 Aa 2,255,000 2,407,212
6% 8/1/03 Aa 3,450,000 3,700,125
6% 8/1/04 Aa 3,670,000 3,945,250
6% 8/1/05 Aa 1,500,000 1,614,375
Massachusetts Wtr. Resources Auth.:
Rfdg. Series B:
5.875% 11/1/04 A1 1,975,000 2,098,437
6% 11/1/08 A 4,500,000 4,708,125
6.25% 11/1/10 A 3,605,000 3,798,769
5% 3/1/22 A 13,000,000 11,570,000
Rfdg. Series C:
6% 12/1/11 A 2,000,000 2,110,000
4.75% 12/1/23 A 13,000,000 11,017,500
(Cap. Apprec.) Series A, 0% 4/1/06
(MBIA Insured) Aaa 10,000,000 6,300,000
Series A:
6.50% 7/15/07 A 6,000,000 6,750,000
7.50% 4/1/09
(Pre-Refunded to 4/1/00 @ 102) (c) Aaa 6,600,000 7,317,750
6.50% 7/15/09 A 1,000,000 1,120,000
5.80% 8/1/11 (MBIA Insured) Aaa 2,740,000 2,825,625
7.625% 4/1/14
(Pre-Refunded to 4/1/00 @ 102) (c) Aaa 1,000,000 1,112,500
6.50% 7/15/19 A 16,960,000 18,571,200
, 6.50% 7/15/21
(Pre-Refunded to 7/15/02 @ 102) (c) Aaa 1,000,000 1,108,750
5.50% 11/1/21 (FGIC Insured) Aaa 11,000,000 10,642,500
5.50% 7/15/22 A 2,000,000 1,910,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Methuen Gen. Oblig. Wtr. Ltd. Tax Lot A:
9.50% 12/15/98 A1 $ 260,000 $ 286,650
9.50% 12/15/99 A1 260,000 297,375
9.50% 12/15/00 A1 260,000 305,825
Monson Gen. Oblig. 5.50% 10/15/10
(MBIA Insured) Aaa 1,080,000 1,084,050
Nantucket Island Bank Rfdg. Series E,
7.25% 7/1/19 A 6,175,000 6,753,906
New England Ed. Loan Marketing Corp.
(Student Loan) Series A:
5.80% 3/1/02 Aaa 32,385,000 33,639,919
5.70% 7/1/05 (f) A1 4,750,000 4,815,313
North Attleborough Gen. Oblig. Ltd. Tax Rfdg.
5.25% 11/1/13 (AMBAC Insured) Aaa 1,000,000 967,500
Pentucket Reg'l. School Dist.:
5.10% 2/15/11 (MBIA Insured) Aaa 530,000 507,475
5.10% 2/15/12 (MBIA Insured) Aaa 220,000 209,825
5.10% 2/15/13 (MBIA Insured) Aaa 575,000 545,531
5.10% 2/15/14 (MBIA Insured) Aaa 525,000 493,500
Plainville Gen. Oblig. Ltd. Tax:
7% 9/1/05 A 175,000 186,594
7% 9/1/06 A 175,000 186,594
7% 9/1/07 A 175,000 186,813
Plymouth County Ctfs. of Prtn. Series A,
7% 4/1/22 A- 10,995,000 12,012,038
Quincy Hosp. Rev.:
Rfdg. 5.25% 1/15/16 (FSA Insured) Aaa 2,000,000 1,895,000
5.30% 1/15/11 (FSA Insured) Aaa 11,400,000 10,901,250
South Essex Swr. Dist. Gen. Oblig.:
Rfdg. Series A:
6% 6/15/03 (MBIA Insured) Aaa 2,390,000 2,566,263
6% 6/15/04 (MBIA Insured) Aaa 2,375,000 2,559,063
6% 6/15/05 (MBIA Insured) Aaa 1,175,000 1,267,531
6% 6/15/06 (MBIA Insured) Aaa 2,305,000 2,486,519
Ltd. Tax:
8.75% 12/1/01
(Pre-Refunded to 12/1/03 @ 103) (c) Baa1 425,000 499,375
8.75% 12/1/02
(Pre-Refunded to 12/1/01 @ 103) (c) Baa1 425,000 499,375
8.75% 12/1/03
(Pre-Refunded to 12/1/01 @ 103) (c) Baa1 400,000 470,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
South Essex Swr. Dist. Gen. Oblig.: - continued
Ltd. Tax: - continued
8.75% 12/1/04
(Pre-Refunded to 12/1/01 @ 103) (c) Baa1 $ 400,000 $ 470,000
8.75% 12/1/05
(Pre-Refunded to 12/1/01 @ 103) (c) Baa1 400,000 470,000
7% 6/1/24 (MBIA Insured)
(Pre-Refunded to 12/04/04 @ 102) (c) Aaa 1,000,000 1,155,000
Southern Berkshire Reg'l. School Dist. 7%
4/15/11 (MBIA Insured) (g) Aaa 4,000,000 4,520,000
Taunton Gen. Oblig.:
8% 2/1/00 A 1,000,000 1,090,000
8% 2/1/05 A 1,000,000 1,191,250
Taunton Ind. Dev. Fing. Rev. Rfdg. (Pepsi Cola
Metro Bottle Co.) 5.65% 8/1/12 A1 2,400,000 2,433,000
Tewksbury Gen. Oblig.:
7.20% 6/1/05 A 350,000 389,375
7.20% 6/1/06 A 150,000 168,563
Tewksbury Gen. Oblig. Various Purp. Unltd. Tax:
9.60% 12/15/98 A 595,000 648,550
9.60% 12/15/99 A 595,000 669,375
9.60% 12/15/00 A 210,000 243,075
9.60% 12/15/01 A 210,000 247,800
9.60% 12/15/02 A 210,000 254,625
Westfield Muni. Purp. Loan Rev.:
5% 9/1/10 (FSA Insured) Aaa 745,000 721,719
5% 9/1/11 (FSA Insured) Aaa 640,000 612,800
5% 9/1/12 (FSA Insured) Aaa 745,000 694,713
5% 9/1/13 (FSA Insured) Aaa 750,000 697,500
Winchedon Unltd. Tax (School Proj. Loan)
6.05% 3/15/12 (AMBAC Insured) Aaa 1,275,000 1,330,781
Woods Hole, Martha's Vineyard & Nantucket
(Steamship Auth.) Series A:
5.125% 3/1/11 A1 1,100,000 1,057,375
5.125% 3/1/12 A1 630,000 598,500
Worcester Gen. Oblig. 5.50% 7/1/03
(MBIA Insured) Aaa 3,430,000 3,571,488
1,072,331,590
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
PUERTO RICO - 2.9%
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Hwy. Rev.:
Series S, 6.50% 7/1/22
(Pre-Refunded to 7/1/02 @101.50) (c) Baa1 $ 2,500,000 $ 2,771,875
Series T, 6.50% 7/1/22 Baa1 1,540,000 1,707,475
Puerto Rico Elec. Pwr. Auth. Rev. Rfdg. Series W,
6.50% 7/1/05 (MBIA Insured) Aaa 9,410,000 10,586,250
Puerto Rico Gen. Oblig.:
5.50% 7/1/05 (MBIA Insured) Aaa 7,330,000 7,723,988
3% 7/1/06 (MBIA Insured) Aaa 10,000,000 8,600,000
Puerto Rico Ind. Med. & Environmental Poll. Cont.
Facs. Fing. Auth. Rev. (Motorola, Inc.)
Series A, 6.75% 1/1/14 Aa3 1,500,000 1,629,375
33,018,963
TOTAL MUNICIPAL BONDS
(Cost $1,066,803,403) 1,105,350,553
MUNICIPAL NOTES (A) - 1.6.%
MASSACHUSETTS - 1.6%
Massachusetts Gen. Oblig. Participating VRDN,
Series SG-47, 3.55%
(Liquidity Facility Societe Generale, France) (e) A-1+ 3,000,000
3,000,000
Massachusetts Health & Edl. Facs. Auth. Participating
VRDN, Series SG-27, 3.55%
(Liquidity Facility Societe Generale, France) (e) A-1+ 1,000,000
1,000,000
Massachusetts Health & Edl. Facs. Auth. Rev.:
Bonds (Boston Univ.) Series H,
3.65%, tender 2/13/97,
LOC Landesbank Hessen-Thuringen P-1 1,000,000 1,000,030
(Harvard Univ.) Series I, 3.50%, VRDN VMIG 1 100,000 100,000
MUNICIPAL NOTES (A) - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Port Auth. Rev. 1995 B, 3.65%,
LOC Landesbank Hessen-Thuringen, VRDN (f) VMIG 1 $ 12,500,000 $ 12,500,000
TOTAL MUNICIPAL NOTES
(Cost $17,600,000) 17,600,030
TOTAL INVESTMENTS - 100%
(Cost $1,084,403,403) $ 1,122,950,583
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN / LOSS
SOLD
280 Municipal Bond Contracts Mar. 1997 $ 32,270,000 $ (27,852)
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.9%
SECURITY TYPE ABBREVIATIONS
CP - Commercial Paper
INFL - Inverse Floating Rate Security
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) Coupon is inversely indexed to a floating interest rate. The price will
be more volatile than the price of a comparable fixed rate security. The
rate shown is the rate at period end.
(e) Provides evidence of ownership in one or more underlying municipal
bonds.
(f) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(g) Security pledged to cover margin requirements for futures contracts. At
the period end, the value of securities pledged amounted to $4,520,000.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 75.1% AAA, AA, A 79.6%
Baa 9.9% BBB 5.9%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 3.8%. FMR has
determined that unrated debt securities that are lower quality account for
1.7% 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:
General Obligation 26.2%
Health Care 20.9
Education 11.7
Water & Sewer 11.1
Escrowed/Pre-Refunded 7.1
Housing 5.7
Electric Revenue 5.6
Others
(individually less than 5%) 11.7
TOTAL 100.0%
INCOME TAX INFORMATION
At January 31, 1997, the aggregate cost of investment securities for income
tax purposes was $1,084,437,040. Net unrealized appreciation aggregated
$38,513,543 of which $42,003,772 related to appreciated investment
securities and $3,490,229 related to depreciated investment securities.
At January 31, 1997, the fund was required to defer $7,166,275 of losses on
futures contracts.
At January 31, 1997, the fund had a capital loss carryforward of
approximately $5,992,396 which will expire on January 31, 2004.
FIDELITY MASSACHUSETTS MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997
ASSETS
Investment in securities, at value (cost $1,084,403,403) $ 1,122,950,583
- - See accompanying schedule
Cash 24,162
Receivable for investments sold 1,390,265
Interest receivable 14,515,536
TOTAL ASSETS 1,138,880,546
LIABILITIES
Payable for investments purchased $ 8,948,040
Payable for fund shares redeemed 69,910
Distributions payable 1,205,867
Accrued management fee 368,695
Payable for daily variation on futures contracts 245,000
Other payables and accrued expenses 192,300
TOTAL LIABILITIES 11,029,812
NET ASSETS $ 1,127,850,734
Net Assets consist of:
Paid in capital $ 1,102,510,663
Accumulated undistributed net realized gain (loss) (13,179,257)
on investments
Net unrealized appreciation (depreciation) on 38,519,328
investments
NET ASSETS, for 98,682,477 shares outstanding $ 1,127,850,734
NET ASSET VALUE, offering price and redemption price per $11.43
share ($1,127,850,734 (divided by) 98,682,477 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 1997
INTEREST INCOME $ 65,612,845
EXPENSES
Management fee $ 4,431,241
Transfer agent, accounting and custodian fees 1,739,380
and expenses
Non-interested trustees' compensation 3,995
Registration fees 34,036
Audit 34,792
Legal 12,592
Miscellaneous 12,984
Total expenses before reductions 6,269,020
Expense reductions (16,854) 6,252,166
NET INTEREST INCOME 59,360,679
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities 6,056,189
Futures contracts (3,971,365) 2,084,824
Change in net unrealized appreciation (depreciation) on:
Investment securities (29,217,395)
Futures contracts 52,188 (29,165,207)
NET GAIN (LOSS) (27,080,383)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 32,280,296
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
JANUARY 31, JANUARY 31,
1997 1996
INCREASE (DECREASE) IN NET ASSETS
Operations $ 59,360,679 $ 64,915,620
Net interest income
Net realized gain (loss) 2,084,824 (2,335,384)
Change in net unrealized appreciation (depreciation) (29,165,207) 90,778,780
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 32,280,296 153,359,016
FROM OPERATIONS
Distributions to shareholders (59,360,679) (65,116,860)
From net interest income
From net realized gain (397,849) -
TOTAL DISTRIBUTIONS (59,758,528) (65,116,860)
Share transactions 217,181,484 303,978,166
Net proceeds from sales of shares
Reinvestment of distributions 45,372,188 48,817,732
Cost of shares redeemed (277,432,129) (307,011,398)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (14,878,457) 45,784,500
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (42,356,689) 134,026,656
NET ASSETS
Beginning of period 1,170,207,423 1,036,180,767
End of period $ 1,127,850,734 $ 1,170,207,423
OTHER INFORMATION
Shares
Sold 19,127,456 26,960,428
Issued in reinvestment of distributions 3,997,722 4,312,969
Redeemed (24,478,328) (27,152,538)
Net increase (decrease) (1,353,150) 4,120,859
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS YEARS ENDED JANUARY 31, SIX MONTHS YEAR ENDED
ENDED JANUARY JULY 31,
31,
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1997 1996 1995 1994 C 1993 1992
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 11.700 $ 10.800 $ 12.210 $ 11.750 $ 11.860 $ 11.320
Income from Investment Operations .605 .652 .700 .714 .364 .735
Net interest income
Net realized and unrealized gain (loss) (.266) .902 (1.180) .720 (.040) .620
Total from investment operations .339 1.554 (.480) 1.434 .324 1.355
Less Distributions
From net interest income (.605) (.654) E (.700) (.714) (.364) (.735)
From net realized gain (.004) - (.230) (.230) (.070) (.080)
In excess of net realized gain - - - (.030) - -
Total distributions (.609) (.654) (.930) (.974) (.434) (.815)
Net asset value, end of period $ 11.430 $ 11.700 $ 10.800 $ 12.210 $ 11.750 $ 11.860
TOTAL RETURN B 3.06% 14.76% (3.79)% 12.57% 2.83% 12.48%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 1,127,851 $ 1,170,207 $ 1,036,181 $ 1,387,410 $ 1,262,596 $ 1,235,407
Ratio of expenses to average net assets .56% .55% .54% .54% .55% A .57%
Ratio of expenses to average net assets after
expense .56% .54%D .54% .54% .55% A .57%
reductions
Ratio of net interest income to average net
assets 5.29% 5.80% 6.29% 5.93% 6.19% A 6.43%
Portfolio turnover rate 44% 33% 22% 40% 42% A 18%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE
TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C 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.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
E THE AMOUNT SHOWN REFLECTS CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES (SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
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 the value of an
investment, assuming reinvestment of the fund's dividend 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 JANUARY 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity 2.90% 12.82% 42.23%
Massachusetts Municipal
Money Market
Massachusetts Tax-Free 2.88% 13.47% 43.68%
Money Market Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years or 10 years. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to the
Massachusetts tax-free money market funds average, which reflects the
performance of 10 Massachusetts tax-free money market funds with similar
objectives tracked by IBC Financial Data, Inc. over the past one year.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity 2.90% 2.44% 3.59%
Massachusetts Municipal
Money Market
Massachusetts Tax-Free 2.88% 2.55% 3.69%
Money Market Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and show you
what would have happened if the fund had performed at a constant rate each
year.
YIELDS
2/3/97 10/28/96 7/29/96 4/29/96 1/29/96
Massachusetts Municipal 2.90% 3.02% 2.96% 3.06% 2.69%
Money Market
Massachusetts 2.89% 2.93% 2.92% 3.09% 2.77%
Tax-Free Money Market
Funds Average
Massachusetts Municipal 5.15% 5.36% 5.26% 5.43% 4.78%
Money Market Tax-equivalen
t
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 Massachusetts tax-free money market funds average as
tracked by IBC Financial Data, Inc., or you can look at the fund's
tax-equivalent yield, which is based on a combined effective 1997 federal
and state income tax rate of 43.68%, but does not reflect payment of 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 market fund will
maintain a $1 share price.
(checkmark)
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
NOTE TO SHAREHOLDERS: Diane McLaughlin became Portfolio Manager of Fidelity
Massachusetts Municipal Money Market Fund on August 1, 1996
Q. DIANE, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE OVER THE PAST YEAR?
A. The year was marked by a significant shift in market sentiment from a
fear of recession at the beginning of the period a year ago in February to
a subsequent fear that the economy might be expanding too rapidly.
Accordingly, investors looked first for the Federal Reserve Board to lower
the interest rate banks charge each other for overnight loans - the fed
funds target rate - in order to stimulate the economy, then for the Fed to
increase interest rates to head off possible inflation. Instead, the Fed
held steady. The economy ended the year on a fairly strong note. More
recently, however, economic data has suggested that the economy is
proceeding at a more moderate pace. More importantly, inflation pressures
have not materialized, vindicating the Fed's decision to leave policy
unchanged. However, the Fed has expressed concern about tightness in the
labor market and the potential upward pressure low unemployment might exert
on the economy's core inflation. Further, the Fed has indicated that it has
a bias toward tightening - raising interest rates in order to keep
inflation at bay. As a result, the market continues to view each economic
release for any sign of inflation as a potential indicator of future
monetary policy.
Q. WHAT SORT OF STRATEGY DID YOU PURSUE WITH THE FUND OVER THE PAST SIX
MONTHS?
A. We have been able to take advantage of technicals - supply and demand
trends - unique to the municipal short-term market. In periods of little
demand, rates rise relative to taxables. We have tried to anticipate these
dates to position ourselves to buy at higher levels during these periods.
In addition, although the fed funds target rate has held steady, short-term
rates have been volatile. Levels have risen as the market digests strong
economic data and fallen as indicators reflect mild inflation. This
volatility has provided trading opportunities. Also, recently the yield
curve - the difference between short-term rates and long-term rates - has
been relatively flat. Since I think the risk is greater that rates will go
up rather than down, I have stayed toward the front, or short end of the
curve, allowing the maturity to roll down from the 70-day range to about 50
days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 1997, was 2.89% compared to
2.69% 12 months ago. The latest yield was the equivalent of a 5.13% taxable
rate of return for Massachusetts investors in the 43.68% combined state and
federal income tax bracket. Through January 31, 1997, the fund's 12-month
total return was 2.90%, compared to 2.88% for the Massachusetts tax-free
money market funds average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. The present economic climate could persist for several more months, with
the Fed remaining comfortable keeping the fed funds target rate steady at
5.25%. However, there is a risk that the economy's moderate strength may
become more robust, causing inflation pressures to build, which may lead to
an upward trend in interest rates. I'll continue to look for trading
opportunities, but intend to keep the fund's average maturity close to 50
days, which will enable me to extend the average maturity if rates do
increase.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
FUND FACTS
GOAL: high current
tax-free income for
Massachusetts residents
while maintaining a stable
$1.00 share price
FUND NUMBER: 074
TRADING SYMBOL: FDMXX
START DATE: November
11, 1983
SIZE: as of January 31,
1997, more than $967 million
MANAGER: Diane McLaughlin,
since August 1996; manager,
various Fidelity and Spartan
Municipal Money Market
funds, since August 1996;
joined Fidelity in 1992
(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,
usually 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 MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
1/31/97 7/31/96 1/31/96
0 - 30 70 73 68
31 - 90 11 8 7
91 - 180 9 2 17
181 - 397 10 17 8
WEIGHTED AVERAGE MATURITY
1/31/97 7/31/96 1/31/96
Massachusetts Municipal
Money Market 51 days 60 days 51 days
Massachusetts Tax-Free
Money Market Funds
Average* 50 days 58 days 52 days
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF JANUARY 31, 1997 AS OF JULY 31, 1996
Row: 1, Col: 1, Value: 47.0
Row: 1, Col: 2, Value: 26.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 22.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 57.0
Row: 1, Col: 2, Value: 19.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 19.0
Row: 1, Col: 5, Value: 3.0
Variable rate
demand notes
(VRDNs) 47%
Commercial
paper 26%
Tender bonds 3%
Municipal
notes 22%
Other 2%
Variable rate
demand notes
(VRDNs) 57%
Commercial
paper 19%
Tender bonds 2%
Municipal
notes 19%
Other 3%
* SOURCE: IBC'S MONEY FUND REPORT (registered trademark)
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
INVESTMENTS JANUARY 31, 1997
Showing Percentage of Total Value of Investments in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 99.7%
Attleboro BAN:
4% 2/6/97 $ 1,525,000 $ 1,525,071
4% 7/24/97 7,000,000 7,014,560
4.50% 7/24/97 4,800,000 4,813,275
Boston Ind. Rev. (New Boston Seafood Ctr.) Series 1997,
3.75%, LOC First Nat'l. Bank of Boston, VRDN (b) 875,000 875,000
Boston Wtr. & Swr. Comm. Gen. Oblig. Rev. Series 1994 A,
3.40%, LOC State Street Bank & Trust Co., VRDN 7,600,000 7,600,000
Boston Wtr. & Swr. Participating VRDN, Series SG-75,
3.55% (Liquidity Facility Societe Generale, France) (c) 8,380,000
8,380,000
Boxborough BAN 4.50% 7/11/97 4,300,000 4,310,868
Brockton RAN 4.40% 4/11/97 (BPA Fleet Nat'l. Bank) 5,600,000 5,605,651
Cambridge Gen. Oblig. Bonds Series 1996, 4.25% 6/15/97 1,000,000
1,001,418
Chelmsford BAN 4.25% 4/24/97 1,700,000 1,701,738
Chelsea Gen. Oblig. Bonds (School Loan Proj.) Series 1994,
4.60% 6/15/97 (AMBAC Insured) 1,000,000 1,003,945
Clipper Participating VRDN, Series 1993-2, 3.49%
(Liquidity Facility State Street Bank & Trust Co. (c) 19,000,000
19,000,000
Danvers BAN 4.50% 7/18/97 4,000,000 4,007,029
Easton BAN:
4.25% 4/10/97 1,600,000 1,601,306
4.40% 10/3/97 6,500,000 6,524,269
Fall River BAN 4.50% 8/15/97,
LOC State Street Bank & Trust Co. 3,600,000 3,611,031
Framingham Gen. Oblig. Bonds 5% 3/15/97 1,325,000 1,327,452
Framingham Ind. Dev. Rev. Board (Perini Corp. Proj.)
Series 1985, 3.60%,
LOC Harris Trust & Savings Bank, Chicago, VRDN 400,000 400,000
Gloucester BAN 4.35% 8/8/97 7,500,000 7,511,858
Hopkinton BAN 4% 12/30/97 3,500,000 3,515,322
Hopkinton Gen. Oblig. Bonds 7% 7/1/97 (AMBAC Insured) 765,000 774,387
Leominster BAN 4% 12/17/97 (b) 2,600,000 2,605,863
Mansfield BAN 4.25% 8/21/97 3,400,000 3,409,737
Marlborough BAN 4% 12/18/97 3,337,000 3,349,143
Mashpee BAN:
3.75% 2/7/97 1,500,000 1,500,010
4% 2/7/97 4,500,000 4,500,214
Massachusetts Bay Transit Auth.:
Bonds:
Series 1984 A, 3.625%, tender 3/1/97,
LOC State Street Bank & Trust Co. 6,200,000 6,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Bay Transit Auth.: - continued
Bonds: - continued
Series 1988 A, 7.30% 3/1/97 $ 1,030,000 $ 1,032,596
Series 1989 A, 6.75% 3/1/97 2,500,000 2,505,711
Series 1996 B, 5% 3/1/97 1,700,000 1,701,578
CP:
Series C:
3.35% 3/6/97, LOC Westdeutsche Landesbank 3,000,000 3,000,000
3.45% 3/6/97, LOC Westdeutsche Landesbank 1,000,000 1,000,000
3.50% 3/6/97, LOC Westdeutsche Landesbank 4,700,000 4,700,000
3.45% 3/10/97, LOC Westdeutsche Landesbank 2,700,000 2,700,000
RAN:
Series 1996 A, 3.75% 2/28/97 14,500,000 14,499,411
4.75% 9/5/97 25,200,000 25,311,376
Massachusetts Bay Transit Auth. Participating
VRDN, PA-138, 3.55%
(Liquidity Facility Merrill Lynch & Co., Inc.) (c) 2,425,000 2,425,000
Massachusetts Ed. Fin. Auth. Ed. Loan Rev. Series 1996 E,
3.35%, VRDN (b) 18,500,000 18,500,000
Massachusetts Gen. Oblig.:
BAN Series 1996 A, 4.25% 6/10/97 29,500,000 29,535,658
Participating VRDN (c):
Series 1993 I, 3.68% (Liquidity Facility Citibank, NA) 13,000,000
13,000,000
Series 96C2101, 3.68% (Liquidity Facility Citibank, NA) 4,700,000
4,700,000
Series 97C2101, 3.63% (Liquidity Facility Citibank, NA) 5,800,000
5,800,000
Series 97C2103, 3.63% (Liquidity Facility Citibank, NA) 3,800,000
3,800,000
Series BT-214, 3.60%
(Liquidity Facility Bankers Trust Co.) 9,300,000 9,300,000
Series SG-38, 3.55% (MBIA Insured)
(Liquidity Facility Societe Generale, France) 3,000,000 3,000,000
Series SG-47, 3.55%
(Liquidity Facility Societe Generale, France) 1,000,000 1,000,000
Massachusetts Health & Ed. Facs. Auth. Rev. Bonds:
(Boston Univ.) Series H, 3.70%, tender 2/13/97,
LOC Landesbank Hessen-Thuringen 12,400,000 12,400,000
(Harvard Univ.):
3.55%, tender 2/12/97 6,300,000 6,300,000
3.55%, tender 2/18/97 3,000,000 3,000,000
3.50%, tender 2/20/97 1,000,000 1,000,000
3.55%, tender 2/20/97 4,600,000 4,600,000
3.50%, tender 2/21/97 1,300,000 1,300,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Ed. Facs. Auth. Rev. Bonds: - continued
(Harvard Univ.): - continued
3.55%, tender 2/21/97 $ 1,000,000 $ 1,000,000
3.60%, tender 2/21/97 2,000,000 2,000,000
3.45%, tender 2/27/97 2,900,000 2,900,000
3.50%, tender 2/27/97 1,000,000 1,000,000
3.40%, tender 3/7/97 2,700,000 2,700,000
3.45%, tender 4/10/97 1,000,000 1,000,000
Massachusetts Health & Ed. Facs. Auth. Participating VRDN,
Series SG-27, 3.55%
(Liquidity Facility Societe Generale, France) (c) 6,500,000 6,500,000
Massachusetts Health & Ed. Facs. Auth. Rev., VRDN:
(Amherst College) Series F, 3.35% 13,800,000 13,800,000
(Brandeis Univ.) Series 1996 G, 3.30%,
LOC Fleet Nat'l. Bank 3,350,000 3,350,000
(Cap. Asset Prog.) Series E, 3.60%,
LOC First Nat'l. Bank of Chicago 600,000 600,000
(Mount Ida College) 3.35%, LOC Chase Manhattan Bank 3,800,000 3,800,000
(Newton Wellesley Hosp.) 3.35%
(MBIA Insured) (Liquidity Facility Credit Suisse) 5,700,000 5,700,000
(Wellesley College) Series B, 3.30% 3,500,000 3,500,000
(Williams College) Series E, 3.35% 5,000,000 5,000,000
Series I, 3.50% 55,740,000 55,740,000
Massachusetts Health & Ed. Ind. Fin. Agcy.
(Falmount Assisted Living) Series 1995, 3.40%,
LOC First Nat'l. Bank of Boston, VRDN 4,100,000 4,100,000
Massachusetts Hsg. Fin. Agcy. Multi-Family Hsg. Proj.
Series 1995 A, 3.45% (Fannie Mae Guaranteed) VRDN 100,000 100,000
Massachusetts Hsg. Fin. Agcy. Multi-Family Hsg. Rev.
(Princeton Crossing Proj.) Series 1996, 3.55%,
LOC General Elec. Capital Corp., VRDN (b) 13,700,000 13,700,000
Massachusetts Hsg. Fin. Agcy. Multi-Family Hsg. Rev. Rfdg.
Series 1995 A, 3.45%
(BPA Republic Bank of New York) VRDN 56,055,000 56,055,000
Massachusetts Hsg. Fin. Agcy. Participating VRDN (c):
Series PA-83, 3.65% (AMBAC Insured)
(Liquidity Facility Merrill Lynch & Co., Inc.) (b) 5,920,000 5,920,000
Series PA-132, 3.70% (Liquidity Facility
Merrill Lynch & Co., Inc.) (b) 1,225,000 1,225,000
Series PT-33, 3.65% (AMBAC Insured)
(Liquidity Facility Industrial Bank of Japan) (b) 5,180,000 5,180,000
Series PT-42, 3.50% (Liquidity Facility Commerzbank,
Germany) 5,080,000 5,080,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Hsg. Fin. Agcy. Rev. Bonds (Rental Hsg.)
4.90% 7/1/97 (AMBAC Insured) $ 1,165,000 $ 1,170,142
Massachusetts Hsg. Fin. Agcy. Single Family Hsg. Rev. Bonds
Series 50, 3.70%, tender 6/2/97 3,300,000 3,300,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev., VRDN:
Rfdg.:
(First Healthcare Corp. for Hillhaven Proj.)
3.60%, LOC Wachovia Bank of Georgia 2,700,000 2,700,000
(First Healthcare Corp. Proj.) Series 1992 A,
3.60%, LOC Wachovia Bank of Georgia 2,025,000 2,025,000
(BBB ESQ, LLC) Series 1996, 3.55%,
LOC First Nat'l. Bank of Boston (b) 1,100,000 1,100,000
(Baker School Specialty Co. Inc.) Series 1996, 3.60%,
LOC Fleet Nat'l. Bank (b) 3,300,000 3,300,000
(Battery Engineering, Inc.) Series 1996, 3.70%,
LOC Bank of Tokyo-Mitsubishi (b) 1,600,000 1,600,000
(Brady Enterprises) Series 1996, 3.60%,
LOC Fleet Nat'l. Bank 2,500,000 2,500,000
(General Signal Proj.) 3.55%, LOC Wachovia
Bank of Georgia 8,600,000 8,600,000
(Hazen Paper Proj.) Series 1996, 3.55%,
LOC First Nat'l. Bank of Boston 1,700,000 1,700,000
(Interpolymer Corp.) Series 1992, 3.55%,
LOC First Nat'l. Bank of Boston (b) 3,400,000 3,400,000
(KMS Cos.) Series 1996, 3.60%,
LOC State Street Bank & Trust Co. (b) 2,500,000 2,500,000
(Longview Fiber Co.) Series 1987, 3.65%,
LOC Algemene Bank 2,070,000 2,070,000
(Nova Realty) Series 1994, 3.35%,
LOC First Nat'l. Bank of Boston 2,900,000 2,900,000
(Signature Mondial Inc.)
Series 1996, 3.60%, LOC Fleet Nat'l. Bank (b) 3,700,000 3,700,000
(United Medical Corp.) Series 1992, 3.35%,
LOC Bank of Nova Scotia (b) 1,400,000 1,400,000
Massachusetts Ind. Fin. Agcy. Participating VRDN,
Series 1996 SG-56, 3.55% (MBIA Insured)
(Liquidity Facility Societe Generale, France) (c) 11,100,000 11,100,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev.:
Rfdg. Bonds (New England Pwr. Co.):
Series 1992 B:
3.50%, tender 2/10/97 3,000,000 3,000,000
3.55%, tender 2/10/97 1,200,000 1,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev.: - continued
Rfdg. Bonds (New England Pwr. Co.): - continued
Series 1992 B: - continued
3.50%, tender 2/12/97 $ 1,300,000 $ 1,300,000
3.50%, tender 2/19/97 6,000,000 6,000,000
3.45%, tender 2/26/97 10,400,000 10,400,000
3.50%, tender 2/27/97 7,000,000 7,000,000 3.60%, tender 2/27/97
2,800,000 2,800,000
3.40%, tender 3/10/97 1,000,000 1,000,000
3.45%, tender 3/10/97 2,900,000 2,900,000
Series 1993 A:
3.50%, tender 2/6/97 5,100,000 5,099,986
3.55%, tender 2/25/97 1,700,000 1,700,000
3.55%, tender 2/28/97 6,900,000 6,899,967
Series 1993 B:
3.45%, tender 2/6/97 7,600,000 7,599,983
3.50%, tender 2/25/97 3,300,000 3,300,000
3.55%, tender 2/25/97 4,600,000 4,600,000
3.50%, tender 2/27/97 2,300,000 2,300,000
3.60%, tender 2/27/97 6,300,000 6,300,000
(Holyoke Wtr. Pwr. Co. Proj.) Series 1990, 3.40%,
LOC Swiss Bank, VRDN (b) 8,700,000 8,700,000
Massachusetts Ind. Fin. Agcy. Resource Recovery Rev.
(Ogden-Haverhill Proj.) Series 1986 B, 3.35%,
LOC Union Bank of Switzerland, VRDN (b) 2,325,000 2,325,000
Massachusetts Ind. Fin. Agcy. Rev., VRDN:
(346 Univ. LLC) Series 1996, 3.55%,
LOC First Nat'l. Bank of Boston (b) 2,200,000 2,200,000
(Barker Steel Company) Series 1995, 3.55%,
LOC State Street Bank & Trust, Co. (b) 1,100,000 1,100,000
(Bradford College) Series 1995 A, 3.45%,
LOC First Nat'l. Bank of Boston 1,800,000 1,800,000
(Edgewood Retirement Commty.) Series 1995 C, 3.50%,
LOC Dresdner Bank, A.G. 4,500,000 4,500,000
(Governor Dummer Academy) Series 1996, 3.40%,
LOC State Street Bank & Trust Co. 1,800,000 1,800,000
(Heritage at Dartmouth) Series 1996, 3.40%,
LOC First Nat'l. Bank of Boston (b) 1,000,000 1,000,000
(Lower Mills Associates II L.P.) Series 1995, 3.35%,
LOC First Nat'l. Bank of Boston 1,000,000 1,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Rev., VRDN: - continued
(Mary Ann Morse Nursing Home):
Series 1994 A, 3.80%, LOC ABN-AMRO Bank $ 5,900,000 $ 5,900,000
Series 1994 B, 3.40%, LOC ABN-AMRO Bank 6,900,000 6,900,000
(Riverdale Mills Corp.) Series 1995, 3.55%,
LOC First Nat'l. Bank of Boston (b) 4,100,000 4,100,000
(So. N.E. School of Law) 3.50%, LOC Fleet Nat'l. Bank 2,000,000
2,000,000
(Wheelock College Issue) Series A, 3.55%,
LOC Nat'l. Westminster Bank 4,400,000 4,400,000
(Youville Place Inc.) Series 1996, 3.45%
(AMBAC Insured) (BPA Fleet Nat'l. Bank) 5,300,000 5,300,000
Massachusetts Ind. Fin. Agcy. Rev. Rfdg.
(WGBH Ed. Foundation Proj.) Series 1992, 3.55%,
LOC Nat'l. Westminster Bank, VRDN 5,095,000 5,095,000
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev.:
Series 1994 C, 3.35%, LOC Canadian Imperial Bank
of Commerce, VRDN 35,000,000 35,000,000
Series A, 8.75% 7/1/97 3,740,000 3,885,972
Massachusetts Port Auth. Rev.:
Series 1995 B, 3.65%,
LOC Landesbanken Hessen-Thuringen,VRDN (b) 14,200,000 14,200,000
Series 1996, 3.65% 2/26/97, LOC Canadian Imperial
Bank, CP 27,100,000 27,100,000
Massachusetts Wtr. Poll. Abatement Rev. Bonds
(New Bedford Loan Prog.) Series 1996 A,
4.25% 2/1/97 3,300,000 3,300,000
Massachusetts Wtr. Resolution Auth. Gen. Rev. Bonds
Series 1995 B, 5% 12/1/97 1,000,000 1,010,895
Massachusetts Wtr. Resource Auth., CP:
3.50% 2/11/97, LOC Morgan Guaranty Trust, NY 10,200,000 10,200,000
3.55% 2/14/97, LOC Morgan Guaranty Trust, NY 7,750,000 7,750,000
3.55% 2/19/97, LOC Morgan Guaranty Trust, NY 4,500,000 4,500,000
3.45% 2/24/97, LOC Morgan Guaranty Trust, NY 10,000,000 10,000,000
3.55% 2/24/97, LOC Morgan Guaranty Trust, NY 6,800,000 6,800,000
3.50% 2/25/97, LOC Morgan Guaranty Trust, NY 2,500,000 2,500,000
3.45% 2/27/97, LOC Morgan Guaranty Trust, NY 1,700,000 1,700,000
3.55% 2/28/97, LOC Morgan Guaranty Trust, NY 4,300,000 4,300,000
3.40% 3/7/97, LOC Morgan Guaranty Trust, NY 3,000,000 3,000,000
3.45% 3/7/97, LOC Morgan Guaranty Trust, NY 2,000,000 2,000,000
3.40% 3/10/97, LOC Morgan Guaranty Trust, NY 4,000,000 4,000,000
3.45% 3/11/97, LOC Morgan Guaranty Trust, NY 9,000,000 9,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Wtr. Resource Auth., CP: - continued
3.50% 3/18/97, LOC Morgan Guaranty Trust, NY $ 10,000,000 $ 10,000,000
3.50% 3/20/97, LOC Morgan Guaranty Trust, NY 2,600,000 2,600,000
3.40% 3/21/97, LOC Morgan Guaranty Trust, NY 5,400,000 5,400,000
3.50% 3/21/97, LOC Morgan Guaranty Trust, NY 3,000,000 3,000,000
3.40% 3/24/97, LOC Morgan Guaranty Trust, NY 8,000,000 7,999,922
3.45% 3/25/97, LOC Morgan Guaranty Trust, NY 2,500,000 2,500,000
3.30% 3/27/97, LOC Morgan Guaranty Trust, NY 9,490,000 9,490,000
3.50% 3/28/97, LOC Morgan Guaranty Trust, NY 1,400,000 1,400,000
3.45% 4/9/97, LOC Morgan Guaranty Trust, NY 1,000,000 1,000,000
3.45% 4/10/97, LOC Morgan Guaranty Trust, NY 7,000,000 7,000,000
Massachusetts Wtr. Resource Auth. Participating VRDN (c):
Series PA-137, 3.55%
(Liquidity Facility Merrill Lynch & Co., Inc.) 1,660,000 1,660,000
Series SG-17, 3.55%
(Liquidity Facility Societe Generale, France) 4,640,000 4,640,000
Series SG-63, 3.55%
(Liquidity Facility Societe Generale, France) 1,000,000 1,000,000
Merrimack Valley Regional Transit Auth. RAN
4.50% 6/20/97 5,850,000 5,861,892
Natick BAN:
3.70% 5/22/97 1,960,000 1,960,748
4.50% 8/8/97 8,990,000 9,018,185
Newton BAN 4% 3/14/97 4,300,000 4,301,512
North Andover BAN 4% 1/9/98 2,500,000 2,505,637
Northborough Ind. Dev. Rev.
(Tru Realty Corp. Proj. Toys "R" Us, Inc.)
3.675%, LOC Chase Manhattan Bank, VRDN 2,900,000 2,900,000
Northhampton BAN 4.10% 5/30/97 3,700,000 3,704,618
Peabody BAN:
4% 4/14/97 1,000,000 1,001,177
4.15% 8/15/97 3,300,000 3,305,091
Reading BAN 4.25% 8/15/97 3,350,000 3,359,408
Seekonk BAN 4% 11/19/97 4,610,000 4,627,762
Somerville BAN 4% 2/19/97 1,000,000 1,000,238
Springfield BAN:
4.25% 2/14/97 (BPA Fleet Nat'l. Bank) 3,300,000 3,300,511
4.10% 11/21/97 (BPA Fleet Nat'l. Bank) 3,000,000 3,009,277
Stoughton BAN:
4% 8/29/97 1,100,000 1,102,473
4.25% 8/29/97 1,877,000 1,880,201
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Taunton BAN 4% 12/3/97 $ 2,900,000 $ 2,907,706
Wakefield BAN 4% 8/20/97 1,600,000 1,603,429
Walpole BAN 4% 6/4/97 3,395,000 3,398,638
Watertown BAN 4.50% 8/28/97 5,482,000 5,499,188
Westborough BAN 4% 5/29/97 1,800,000 1,802,014
Worcester BAN 4% 8/28/97 7,152,000 7,168,234
959,470,283
PUERTO RICO - 0.3%
Puerto Rico Elec. Pwr. Auth. Participating VRDN,
Series BT-105, 3.425%
(Liquidity Facility Bankers Trust Co.) (c) 3,060,000 3,060,000
TOTAL INVESTMENTS - 100% $ 962,530,283
Total Cost for Income Tax Purposes $ 962,526,650
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, 1997, the fund had a capital loss carryforward of
approximately $82,000 of which $17,000, $13,000 and $52,000 will expire on
January 31, 1998, 2003 and 2005, respectively.
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997
ASSETS
Investment in securities, at value - $ 962,530,283
See accompanying schedule
Cash 22,244
Receivable for investments sold 6,901,414
Interest receivable 8,592,073
TOTAL ASSETS 978,046,014
LIABILITIES
Payable for investments purchased $ 8,582,535
Share transactions in process 1,217,108
Distributions payable 25,567
Accrued management fee 318,083
Other payables and accrued expenses 213,276
TOTAL LIABILITIES 10,356,569
NET ASSETS $ 967,689,445
Net Assets consist of:
Paid in capital $ 967,763,224
Accumulated net realized gain (loss) on investments (78,834)
Unrealized gain from accretion of discount 5,055
NET ASSETS, for 967,665,313 shares outstanding $ 967,689,445
NET ASSET VALUE, offering price and redemption price per $1.00
share ($967,689,445 (divided by) 967,665,313 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 1997
INTEREST INCOME $ 30,255,872
EXPENSES
Management fee $ 3,460,004
Transfer agent, accounting and custodian fees 1,628,676
and expenses
Non-interested trustees' compensation 3,614
Registration fees 58,172
Audit 20,228
Legal 10,424
Miscellaneous 9,425
Total expenses before reductions 5,190,543
Expense reductions (5,124) 5,185,419
NET INTEREST INCOME 25,070,453
REALIZED AND UNREALIZED GAIN (LOSS) (51,705)
Net realized gain (loss) on investment securities
Increase (decrease) in net unrealized gain from 5,055
accretion
of discount
NET GAIN (LOSS) (46,650)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 25,023,803
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
JANUARY 31, JANUARY 31,
1997 1996
INCREASE (DECREASE) IN NET ASSETS
Operations $ 25,070,453 $ 24,555,579
Net interest income
Net realized gain (loss) (51,705) 105,241
Increase (decrease) in net unrealized gain from 5,055 (3,861)
accretion of discount
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 25,023,803 24,656,959
FROM OPERATIONS
Distributions to shareholders from net interest income (25,070,453) (24,555,579)
Share transactions at net asset value of $1.00 per share 2,699,539,513 2,141,149,830
Proceeds from sales of shares
Reinvestment of distributions from net interest income 24,416,904 23,734,269
Cost of shares redeemed (2,603,710,474) (2,074,423,938)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 120,245,943 90,460,161
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 120,199,293 90,561,541
NET ASSETS
Beginning of period 847,490,152 756,928,611
End of period $ 967,689,445 $ 847,490,152
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS YEARS ENDED JANUARY 31, SIX MONTHS YEAR ENDED
ENDED JANUARY JULY 31,
31,
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1997 1996 1995 1994 1993 1992
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations .029 .032 .023 .017 .010 .029
Net interest income
Less Distributions
From net interest income (.029) (.032) (.023) (.017) (.010) (.029)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B 2.90% 3.20% 2.29% 1.71% .99% 2.94%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 967,689 $ 847,490 $ 756,929 $ 610,154 $ 584,939 $ 600,945
Ratio of expenses to average net assets .59% .60% .63% .66% .64% A .65%
Ratio of net interest income to average net assets 2.86% 3.15% 2.28% 1.69% 1.96% A 2.93%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Massachusetts Municipal Income Fund (the income fund) and Fidelity
Massachusetts Municipal Money Market Fund (the money market fund) 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 financial statements have been prepared in conformity
with generally accepted accounting principles which permit management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting policies of
the funds:
SECURITY VALUATION.
INCOME 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. Securities for which
quotations are not readily available are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees. Short-term securities with
remaining maturities of sixty days or less for which quotations are not
readily available are valued at amortized cost or original cost plus
accrued interest, both of which approximate current value.
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 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
gains/losses on futures and options transactions, market discount, capital
loss carryforwards, losses deferred due to futures and options and excise
tax regulations. Permanent book and tax basis differences
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
relating to shareholder distributions will result in reclassifications to
paid in capital and may affect the per-share allocation between net
investment income and realized and unrealized gain (loss). Accumulated
undistributed net realized gain (loss) on investments may include temporary
book and tax basis differences which will reverse in a subsequent period.
Distributions in excess of net investment income may include temporary book
and tax basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in the
following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FUTURES CONTRACTS. The income fund may use futures contracts to manage its
exposure to the bond market and to fluctuations in interest rates. Buying
futures tends to increase the fund's exposure to the underlying instrument,
while selling futures tends to decrease the fund's exposure to the
underlying instrument or hedge other fund investments. Futures contracts
involve, to varying degrees, risk of loss in excess of the futures
variation margin reflected in the Statement of Assets and Liabilities. The
underlying face amount at value of any open futures contracts at period
end, 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.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $509,473,272 and $473,025,470, respectively.
The market value of futures contracts opened and closed during the period
amounted to $221,051,413 and $221,073,571, 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 .1100% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
management fee. The annual individual fund fee rate is .25%. For the
period, the management fees were equivalent to annual rates of .39% and
.39% of average net assets for the income 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.
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 Company, Inc. (FSC), an affiliate
of FMR, under which FSC performs the activities associated with the funds'
transfer and shareholder servicing agent and accounting functions. The
funds pay account fees and asset-based fees that vary according to account
size and type of account. FSC pays for typesetting, printing and mailing of
all shareholder reports, except proxy statements. The accounting fee is
based on the level of average net assets for the month plus out-of-pocket
expenses. For the period, FSC received transfer agent and accounting fees
amounting to $1,317,696 and $352,728 for the income fund and $1,444,121 and
$138,868 for the money market fund, respectively.
For the period, the transfer agent fees were equivalent to an annual rate
of .12% and .16% of average net assets for the income fund and the money
market fund, respectively.
MONEY MARKET FUND. 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 $114,215.
5. EXPENSE REDUCTIONS.
Each fund has entered into arrangements with its custodian and transfer
agent whereby interest earned on uninvested cash balances was used to
offset a portion of each fund's expenses. During the period, the transfer
agent fees were reduced by $16,854 and $5,124 for the income and money
market funds, respectively, under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Massachusetts Municipal Trust and the
Shareholders of: Fidelity Massachusetts Municipal Income Fund and Fidelity
Massachusetts Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for Moody's and Standard &
Poor's ratings) and the related statements of operations and of changes in
net assets and the financial highlights present fairly, in all material
respects, the financial position of Fidelity Massachusetts Municipal Income
Fund and Fidelity Massachusetts Municipal Money Market Fund (each a fund of
Fidelity Massachusetts Municipal Trust) at January 31, 1997, the results of
each of their operations for the year then ended, and the changes in each
of their net assets and the financial highlights for the periods indicated,
in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the trust's management;
our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial statements
in accordance with generally accepted auditing standards which require that
we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at January 31, 1997
by correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Boston, Massachusetts
March 3, 1997
DISTRIBUTIONS
DISTRIBUTIONS
During fiscal year ended January 31,1997, 100% of each fund's income
dividends was free from federal income tax, and 3.77% and 10.11%,
respectively, of the income and money market fund's income dividends was
subject to the federal alternative minimum tax.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate the
service, and on your first call, the system will help you create a personal
identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
1
For quotes.*
2
For account balances and holdings.
3
To review orders and mutual
fund activity.
4
To change your PIN.
5
To speak to a Fidelity representative.
*
0
BY PC
Fidelity's Web site on the Internet provides a wide range of information,
including daily financial news, fund performance, interactive planning
tools and news about Fidelity products and services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at 1-800-544-7272
for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity at
1-800-544-7272 or visit our Web site for more information on how to manage
your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT
IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
TO 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
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, 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
1502 N. Westshore Blvd.
Tampa, 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
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, 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
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, 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
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, 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 - INCOME FUND
Sarah H. Zenoble, Vice President -
MONEY MARKET FUND
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Thomas R. Williams *
* INDEPENDENT TRUSTEES
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
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)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE
SPARTAN(registered trademark)
(registered trademark)
MASSACHUSETTS
MUNICIPAL
MONEY MARKET
FUND
ANNUAL REPORT
JANUARY 31, 1997
CONTENTS
CHECK PAGE NUMBERS !!!
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 17 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 21 Notes to the financial statements.
REPORT OF INDEPENDENT 23 The auditors' opinion.
ACCOUNTANTS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND
MONEY.
To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will begin eliminating duplicate
copies of most financial reports and prospectuses to most households, even
if they have more than one account in the fund. If additional copies of
financial reports, prospectuses or historical account information are
needed, please call 1-800-544-6666.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
As 1997 begins, the stock and bond markets generally have continued on the
course they followed during the past year. Through January, stocks
maintained their unprecedented climb, with the large companies still
setting the pace. With low, stable interest rates, the bond market has
tended to mirror its historical returns in the mid-single digits.
While it's impossible to predict the future direction of the markets with
any degree of certainty, there are certain basic principles that can help
investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will greatly
reduce your vulnerability to any single decline. We know from experience,
for example, that stock prices have gone up over longer periods of time,
have significantly outperformed other types of investments and have stayed
ahead of inflation.
Second, you can further manage your investing risk through diversification.
A stock mutual fund, for instance, is already diversified, because it
invests in many different companies. You can increase your diversification
further by investing in a number of different stock funds, or in such other
investment categories as bonds. You should also keep money you'll need in
the near future in a more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it makes
good sense to follow a regular investment plan, investing a certain amount
of money in a fund at the same time each month or quarter and periodically
reviewing your overall portfolio. By doing so, you won't get caught up in
the excitement of a rapidly rising market, nor will you buy all your shares
at market highs. While this strategy - known as dollar cost averaging -
won't assure a profit or protect you from a loss in a declining market, it
should help you lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are available
24 hours a day, seven days a week to provide you the information you need
to make the investments that are right for 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 the value of an
investment, assuming reinvestment of the fund's dividend income, and the
effect of the fund's $5 account closeout fee on an average size account.
Yield measures the income paid by a fund. Since a money market fund tries
to maintain a $1 share price, yield is an important measure of performance.
If Fidelity had not reimbursed certain fund expenses, the past five years
and life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan Massachusetts Municipal 3.00% 14.06% 18.37%
Money Market Fund
Massachusetts Tax-Free Money Market 2.88% 13.47% 16.59%
Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years, or since the fund
started on 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 Massachusetts tax-free money market funds
average, which reflects the performance of 10 Massachusetts tax-free money
market funds with similar objectives tracked by IBC Financial Data, Inc.
over the past one year. (The periods covered by the IBC Financial Data,
Inc. numbers are the closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan Massachusetts Municipal 3.00% 2.67% 2.89%
Money Market Fund
Massachusetts Tax-Free Money Market 2.88% 2.55% 2.66%
Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and show you
what would have happened if the fund had performed at a constant rate each
year.
YIELDS
2/3/97 10/28/96 7/29/96 4/29/96 1/29/96
Spartan Massachusetts 3.02% 3.07% 3.01% 3.21% 2.82%
Municipal Money Market
Fund
Massachusetts 2.89% 2.93% 2.92% 3.09% 2.77%
Tax-Free Money Market
Funds Average
Spartan Massachusetts 5.36% 5.45% 5.34% 5.70% 5.01%
Municipal Money Market
Fund - Tax-equivalent
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 Massachusetts tax-free money market funds
average. Or you can look at the fund's tax-equivalent yield, which is based
on a combined effective 1997 federal and state income tax rate of 43.68%.
Figures for the Massachusetts tax-free money market funds average are from
IBC Financial Data, Inc. A portion of the fund's income may be subject to
the alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free
investments are usually lower
than yields on taxable
investments. However, a
straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the
yield you'd have to earn on a
similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
NOTE TO SHAREHOLDERS: Diane McLaughlin became Portfolio Manager of Spartan
Massachusetts Municipal Money Market Fund on August 1, 1996.
Q. DIANE, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE OVER THE PAST YEAR?
A. The year was marked by a significant shift in market sentiment from a
fear of recession at the beginning of the period a year ago in February to
a subsequent fear that the economy might be expanding too rapidly.
Accordingly, investors looked first for the Federal Reserve Board to lower
the interest rate banks charge each other for overnight loans - the fed
funds target rate - in order to stimulate the economy, then for the Fed to
increase interest rates to head off possible inflation. Instead, the Fed
held steady. The economy ended the year on a fairly strong note. More
recently, however, economic data has suggested that the economy is
proceeding at a more moderate pace. More importantly, inflation pressures
have not materialized, vindicating the Fed's decision to leave policy
unchanged. However, the Fed has expressed concern about tightness in the
labor market and the potential upward pressure low unemployment might exert
on the economy's core inflation. Further, the Fed has indicated that it has
a bias toward tightening - raising interest rates in order to keep
inflation at bay. As a result, the market continues to view each economic
release for any sign of inflation as a potential indicator of future
monetary policy.
Q. WHAT SORT OF STRATEGY DID YOU PURSUE WITH THE FUND OVER THE PAST SIX
MONTHS?
A. We have been able to take advantage of technicals - supply and demand
trends - unique to the municipal short-term market. In periods of little
demand, rates rise relative to taxables. We have tried to anticipate these
dates to position ourselves to buy at higher levels during these periods.
In addition, although the fed funds target rate has held steady, short-term
rates have been volatile. Levels have risen as the market digests strong
economic data and fallen as indicators reflect mild inflation. This
volatility has provided trading opportunities. Also, recently the yield
curve - the difference between short-term rates and long-term rates - has
been relatively flat. Since I think the risk is greater that rates will go
up rather than down, I have stayed toward the front, or short end of the
curve, allowing the maturity to roll down from the 70-day range to about 50
days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 1997, was 2.99% compared to
2.83% 12 months ago. The latest yield was the equivalent of a 5.31% taxable
rate of return for Massachusetts investors in the 43.68% combined state and
federal income tax bracket. Through January 31, 1997, the fund's 12-month
total return was 3.00% compared to 2.88% for the Massachusetts tax-free
money market funds average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. The present economic climate could persist for several more months, with
the Fed remaining comfortable keeping the fed funds target rate steady at
5.25%. However, there is a risk that the economy's moderate strength may
become more robust, causing inflation pressures to build, which may lead to
an upward trend in interest rates. I'll continue to look for trading
opportunities, but intend to keep the fund's average maturity close to 50
days, which will enable me to extend the average maturity if rates do
increase.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
FUND FACTS
GOAL:
START DATE:
SIZE:
MANAGER:
(checkmark)
(solid bullet)
(solid bullet)
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
1/31/97 7/31/96 1/31/96
0 - 30 67 70 67
31 - 90 12 12 9
91 - 180 10 3 17
181 - 397 11 15 7
WEIGHTED AVERAGE MATURITY
1/31/97 7/31/96 1/31/96
Spartan Massachusetts
Municipal Money Market Fun 52 days 59 days 52 days
d
Massachusetts Tax-Free
Money Market Funds
Average * 50 days 58 days 52 days
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF JANUARY 31, 1997 AS OF JULY 31, 1996
Row: 1, Col: 1, Value: 46.0
Row: 1, Col: 2, Value: 27.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 22.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 55.0
Row: 1, Col: 2, Value: 23.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 16.0
Row: 1, Col: 5, Value: 4.0
Variable rate
demand notes
(VRDNs) 46%
Commercial
paper 27%
Tender bonds 3%
Municipal
notes 22%
Other 2%
Variable rate
demand notes
(VRDNs) 55%
Commercial
paper 23%
Tender bonds 2%
Municipal
notes 16%
Other 4%
* SOURCE: IBC'S MONEY FUND REPORT (registered trademark)
INVESTMENTS JANUARY 31, 1997
Showing Percentage of Total Value of Investments in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 98.5%
Attleboro BAN:
4% 7/24/97 $ 4,775,000 $ 4,784,932
4.50% 7/24/97 3,200,000 3,208,850
Boston Gen. Oblig. Bonds 5.25% 10/1/97 (MBIA Insured) 1,200,000 1,213,174
Boston Ind. Rev. (New Boston Seafood Center) Series 1997,
3.75%, LOC First Nat'l Bank of Boston, VRDN (b) 600,000 600,000
Boston Wtr. & Swr. Participating VRDN,
Series 1996 SG-75, 3.55%
(Liquidity Facility Societe Generale, France) (c) 5,100,000 5,100,000
Boxborough BAN 4.50% 7/11/97 2,749,241 2,756,190
Brockton RAN 4.40% 4/11/97 (BPA Fleet Nat'l Bank) 3,600,000 3,603,633
Cambridge Gen. Oblig. Bonds Series 1996,
4.25% 6/15/97 705,000 706,000
Chelmsford BAN 4.25% 4/24/97 900,000 900,920
Clipper Participating VRDN, Series 93-2, 3.49%
(Liquidity Facility State Street Bank &
Trust Co., Boston) (c) 15,630,200 15,630,200
Danvers BAN 4.50% 7/18/97 2,550,000 2,554,480
Easton BAN:
4.25% 4/10/97 1,102,500 1,103,400
4.40% 10/3/97 4,715,000 4,732,604
Fall River BAN 4.50% 8/15/97,
LOC State Street Bank & Trust Co., Boston 1,910,000 1,915,853
Gloucester BAN 4.35% 8/8/97 7,500,000 7,511,858
Hopkinton BAN 4% 12/30/97 2,500,000 2,510,944
Leominster BAN 4% 12/17/97 (b) 1,900,000 1,904,285
Mansfield BAN 4.25% 8/21/97 2,530,000 2,537,221
Marlborough BAN 4% 12/18/97 2,300,000 2,308,369
Mashpee BAN:
3.75% 2/7/97 1,000,000 1,000,007
4% 2/7/97 2,840,000 2,840,135
4.25% 2/7/97 890,000 890,077
Massachusetts Bay Trans. Auth.:
Bonds:
Series 1989 A, 6.75% 3/1/97 1,175,000 1,177,684
Series 1996 B, 5% 3/1/97 1,235,000 1,236,146
RAN:
Series 1996 A, 3.75% 2/28/97 9,700,000 9,699,726
4.75% 9/5/97 17,800,000 17,878,842
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Bay Trans. Auth.: - continued
CP, Series C:
3.35% 3/6/97, LOC Westdeutsche Landesbank $ 2,000,000 $ 2,000,000
3.50% 3/6/97, LOC Westdeutsche Landesbank 3,300,000 3,300,000
3.45% 3/10/97, LOC Westdeutsche Landesbank 1,900,000 1,900,000
Massachusetts Ed. Fin. Auth. Ed. Loan Rev.
Series 1996 E, 3.35% VRDN (b) 17,700,000 17,700,000
Massachusetts Gen. Oblig.:
BAN Series 1996 A, 4.25% 6/10/97 27,445,000 27,479,161
Bonds Series BP-214, 3.60% tender 5/7/97
(Liquidity Facility Bankers Trust Company) (c) 6,600,000 6,600,000
Participating VRDN (c):
Series 96C2101, 3.68%
(Liquidity Facility Citibank, NY) 2,800,000 2,800,000
Series 97C2101, 3.63% (Liquidity Facility Citibank, NY) 3,900,000
3,900,000
Series 97C2103, 3.63% (Liquidity Facility Citibank, NY) 5,700,000
5,700,000
Series 1993 I, 3.68% (Liquidity Facility Citibank, NY) 7,800,000
7,800,000
Series 1996 SG-38, 3.55% (MBIA Insured)
(Liquidity Societe Generale, France) 2,000,000 2,000,000
Massachusetts Health & Ed. Facs. Auth. Participating VRDN,
Series SG-27, 3.55%
(Liquidity Facility Societe Generale, France) (c) 3,935,000 3,935,000
Massachusetts Health & Ed. Facs. Auth. Rev.:
VRDN:
(Amherst College) Series F, 3.35% 22,700,000 22,700,000
(Brandeis Univ.) Series 1996 G, 3.30%,
LOC Fleet National Bank 2,325,000 2,325,000
(Harvard Univ.):
Series I, 3.50% 32,200,000 32,200,000
Series Q-1, 3.50% 1,500,000 1,500,000
(Mount Ida College) 3.35%,
LOC Chase Manhattan Bank 2,800,000 2,800,000
(Newton Wellesley Hosp.) 3.35% (MBIA Insured)
(BPA Credit Suisse) 5,200,000 5,200,000
(Williams College) 3.35% 3,505,000 3,505,000
Bonds:
Rfdg. (Newton Wellesley Hospital) Series 1997 G,
3.75% 7/1/97 (MBIA Insured) (d) 1,450,000 1,451,363
(Boston Univ.) Series H, 3.70%, tender 2/13/97,
LOC Landesbank Hessen-Thuringen 7,600,000 7,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Ed. Facs. Auth. Rev.: - continued
Bonds: - continued
(Harvard Univ.):
3.55%, tender 2/12/97 $ 4,400,000 $ 4,400,000
3.55%, tender 2/18/97 2,000,000 2,000,000
3.55%, tender 2/20/97 3,400,000 3,400,000
3.55%, tender 2/21/97 1,000,000 1,000,000
3.45%, tender 2/27/97 2,100,000 2,100,000
3.50%, tender 2/27/97 1,000,000 1,000,000
3.40%, tender 3/7/97 2,500,000 2,500,000
Massachusetts Hsg. Fin. Agcy. Multi-Family Hsg. Rev. VRDN:
Rfdg.:
Series 1995 A, 3.45%,
(BPA Republic Bank of New York) 33,200,000 33,200,000
Series 1995 A, 3.45% (FNMA Guaranteed) 4,200,000 4,200,000
(Princeton Crossing Proj.) Series 1996, 3.55%,
LOC General Elec. Capital Corp. (b) 8,700,000 8,700,000
Massachusetts Hsg. Fin. Agcy.:
Participating VRDN (c):
Series PA-132, 3.70%
(Liquidity Facility Merrill Lynch & Co., Inc.) (b) 1,000,000 1,000,000
Series PT-33, 3.65% (AMBAC Insured)
(Liquidity Facility Banque Nationale de Paris) (b) 1,500,000 1,500,000
Series PT-42, 3.50%
(Liquidity Facility Commerzbank, Germany) 3,905,000 3,905,000
Bonds (Rental Hsg.) 4.90% 7/1/97 (AMBAC Insured) 1,000,000 1,004,413
Massachusetts Hsg. Fin. Auth. Single Family Hsg. Rev. Bonds
Series 50, 3.70%, tender 6/2/97 2,000,000 2,000,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev. VRDN:
Rfdg.:
(Falmouth Assisted Living) Series 1995, 3.40%,
LOC First Nat'l. Bank of Boston 1,900,000 1,900,000
(First Healthcare Corp. Proj.) Series 1992 B, 3.60%,
LOC Wachovia Bank of Georgia 1,130,000 1,130,000
(Baker School Specialty Co. Inc.) Series 1996, 3.60%,
LOC Fleet National Bank (b) 2,200,000 2,200,000
(Brady Enterprises) Series 1996, 3.60%,
LOC Fleet Nat'l. Bank 1,550,000 1,550,000
(BBB Esq., LLC) Series 1996, 3.55%,
LOC First Nat'l Bank of Boston (b) 800,000 800,000
(Hazen Paper Proj.) Series 1996, 3.55%,
LOC First Nat'l. Bank of Boston (b) 1,000,000 1,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev. VRDN: - continued
(Nova Realty) Series 1994, 3.35%,
LOC First Nat'l. Bank of Boston $ 2,000,000 $ 2,000,000
(Nutramax Products):
Series 1996 B, 3.55%,
LOC State Street Bank & Trust Co., Boston (b) 1,000,000 1,000,000
Series 1996 A, 3.55%, LOC State Street Bank &
Trust Co. (b) 1,100,000 1,100,000
Massachusetts Ind. Fin. Agcy. Ind. Rev. VRDN:
Rfdg.:
(First Healthcare Corp. for Hillhaven Proj.) 3.60%,
LOC Wachovia Bank of Georgia 1,195,000 1,195,000
(Quamco Inc. Proj.) Series 1988 B, 3.45%,
LOC Bank of Nova Scotia 630,000 630,000
(Battery Engineering, Inc.) Series 1996, 3.70%,
LOC Bank of Tokyo-Mitsubishi (b) 1,100,000 1,100,000
(General Signal Proj.) 3.55%,
LOC Wachovia Bank of Georgia 1,900,000 1,900,000
(Signature Mondial Inc.) Series 1996, 3.60%,
LOC Fleet National Bank (b) 2,200,000 2,200,000
(United Medical Corp.) Series 1992, 3.35%,
LOC The Chase Manhattan Bank (b) 1,400,000 1,400,000
(Univ. LLC) Series 1996, 3.55%,
LOC First Nat'l. Bank of Boston (b) 1,300,000 1,300,000
Massachusetts Ind. Fin. Agcy. Participating VRDN,
Series 1996 SG-56, 3.55% (MBIA Insured)
(Liquidity Facility Societe Generale, France) (c) 7,025,000 7,025,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev.:
(Holyoke Wtr. Pwr. Co. Proj.) Series 1990, 3.40%,
LOC Swiss Bank, VRDN (b) 2,600,000 2,600,000
Rfdg. Bonds (New England Power Co. Proj.):
Series 1992 B:
3.45%, tender 2/6/97 1,500,000 1,500,000
3.50%, tender 2/10/97 3,000,000 3,000,000
3.55%, tender 2/10/97 1,000,000 1,000,000
3.55%, tender 2/11/97 4,000,000 4,000,000
3.50%, tender 2/12/97 1,000,000 1,000,000
3.50%, tender 2/19/97 3,600,000 3,600,000
3.45%, tender 2/26/97 4,300,000 4,300,000
3.50%, tender 2/27/97 2,500,000 2,500,000
3.60%, tender 2/27/97 2,150,000 2,150,000
3.45%, tender 3/10/97 2,000,000 2,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev.: - continued
Rfdg. Bonds (New England Power Co. Proj.): - continued
Series 1993 A:
3.50%, tender 2/6/97 $ 4,500,000 $ 4,500,000
3.60%, tender 2/28/97 5,800,000 5,800,000
Series 1993 B:
3.50%, tender 2/25/97 7,150,000 7,150,000
3.50%, tender 2/27/97 5,400,000 5,400,000
3.60%, tender 2/28/97 2,600,000 2,600,000
Massachusetts Ind. Fin. Agcy. Resource Recovery Rev.
(Ogden-Haverhill Proj.) Series 1986 B, 3.35%,
LOC Union Bank of Switzerland, VRDN (b) 19,800,000 19,800,000
Massachusetts Ind. Fin. Agcy. Rev. VRDN:
Rfdg. (WGBH Ed. Foundation Proj.) Series 1992, 3.55%,
LOC Nat'l. Westminster Bank PLC 2,840,000 2,840,000
(Barker Steel Company) Series 1995, 3.55%,
LOC State Street Bank & Trust, Co. Boston (b) 800,000 800,000
(Bradford College) Series 1995 A, 3.45%,
LOC First Nat'l Bank of Boston 1,600,000 1,600,000
(Edgewood Retirement Commty.) Series 1995 C, 3.50%,
LOC Dresdner Bank, A.G. 3,000,000 3,000,000
(Governor Dummer Academy) Series 1996, 3.40%,
LOC State Street Bank & Trust Co., Boston 1,200,000 1,200,000
(Heritage at Darmouth) Series 1996, 3.40%,
LOC First Nat'l Bank of Boston (b) 825,000 825,000
(Lower Mills Associates II L.P.) Series 1995, 3.35%,
LOC First Nat'l Bank of Boston 953,000 953,000
(Mary Ann Morse Nursing Home) Series A, 3.80%,
LOC ABN-AMRO Bank 3,200,000 3,200,000
(Mary Ann Morse Nursing Home) Series 1994 B, 3.40%,
LOC ABN-AMRO Bank 4,600,000 4,600,000
(Riverdale Mills Corp.) Series 1995, 3.55%,
LOC Bank of Boston (b) 2,100,000 2,100,000
(Southern New England School of Law) 3.50%,
LOC Fleet Nat'l Bank 1,500,000 1,500,000
(Youville Place Inc.) Series 1996, 3.45% (AMBAC Insured)
(BPA Fleet Nat'l Bank) 4,500,000 4,500,000
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev.:
Bonds Series A, 8.75% (Pre-Refunded to
7/1/97 @ 102) 3,400,000 3,532,702
Series 1994 C, 3.35%
LOC Canadian Imperial Bank of Commerce, VRDN 14,700,000 14,700,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Port Auth. Series 1996, CP:
3.65% 2/26/97, LOC Canadian Imperial
Bank of Commerce $ 17,400,000 $ 17,400,000
3.35% 3/19/97, LOC Canadian Imperial
Bank of Commerce 4,500,000 4,500,000
Massachusetts Port Auth. Rev. Series 1995 B, 3.65%,
LOC Landesbanken Hessen-Thuringen, VRDN (b) 2,700,000 2,700,000
Massachusetts Single Family Hsg. Auth. Bonds
3.65%, tender 3/1/97 (Liquidity Facility
Citibank, NY) (b)(c)(e) 4,200,000 4,200,000
Massachusetts Wtr. Poll. Abatement Rev. Bonds
(New Bedford Loan Prog.) Series 1996 A, 4.25% 2/1/97 2,000,000 2,000,000
Massachusetts Wtr. Resolution Auth. Gen. Rev. Bonds
Series 1995 B, 5% 12/1/97 1,000,000 1,010,895
Massachusetts Wtr. Resource Auth.:
Participating VRDN, (c):
Series 1995 SG-17, 3.55%, (AMBAC Insured)
(Liquidity Facility Societe Generale, France) 3,800,000 3,800,000
Series 1996 S6-63, 3.55%
(Liquidity Facility Societe Generale, France) 1,000,000 1,000,000
Series PA-137, 3.55%,
(Liquidity Facility Merrill Lynch & Co., Inc.) 2,580,000 2,580,000
CP:
3.50% 2/11/97, LOC Morgan Guaranty Trust Co., NY 1,500,000 1,500,000
3.55% 2/14/97, LOC Morgan Guaranty Trust Co., NY 4,250,000 4,250,000
3.55% 2/18/97, LOC Morgan Guaranty Trust Co., NY 3,200,000 3,200,000
3.55% 2/19/97, LOC Morgan Guaranty Trust Co., NY 4,000,000 4,000,000
3.55% 2/24/97, LOC Morgan Guaranty Trust Co., NY 4,910,000 4,910,000
3.50% 2/25/97, LOC Morgan Guaranty Trust Co., NY 1,700,000 1,700,000
3.40% 2/27/97, LOC Morgan Guaranty Trust Co., NY 10,000,000 10,000,000
3.45% 2/27/97, LOC Morgan Guaranty Trust Co., NY 1,300,000 1,300,000
3.40% 3/7/97, LOC Morgan Guaranty Trust Co., NY 9,200,000 9,200,000
3.45% 3/7/97, LOC Morgan Guaranty Trust Co., NY 1,000,000 1,000,000
3.40% 3/10/97, LOC Morgan Guaranty Trust Co., NY 3,600,000 3,600,000
3.50% 3/18/97, LOC Morgan Guaranty Trust Co., NY 10,000,000 10,000,000
3.50% 3/20/97, LOC Morgan Guaranty Trust Co., NY 1,800,000 1,800,000
3.40% 3/21/97, LOC Morgan Guaranty Trust Co., NY 3,100,000 3,100,000
3.45% 3/21/97, LOC Morgan Guaranty Trust Co., NY 1,400,000 1,400,000
3.40% 3/24/97, LOC Morgan Guaranty Trust Co., NY 4,000,000 4,000,000
3.45% 3/25/97, LOC Morgan Guaranty Trust Co., NY 4,100,000 4,100,000
3.30% 3/27/97, LOC Morgan Guaranty Trust Co., NY 6,600,000 6,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Wtr. Resource Auth. - continued
CP: - continued
3.50% 3/28/97, LOC Morgan Guaranty Trust Co., NY $ 1,000,000 $ 1,000,000
3.45% 4/10/97, LOC Morgan Guaranty Trust Co., NY 7,200,000 7,200,000
Medway BAN 4.50% 6/13/97 1,800,000 1,804,961
Natick BAN:
3.70% 5/22/97 1,400,000 1,400,535
4.50% 8/8/97 6,100,000 6,119,110
Newton BAN 4% 3/14/97 2,850,000 2,851,002
North Andover BAN 4% 1/9/98 1,775,000 1,779,003
Northhampton BAN 4.10% 5/30/97 2,225,000 2,227,776
Peabody BAN:
4% 4/14/97 1,000,000 1,001,177
4.15% 8/15/97 2,700,000 2,704,160
Reading BAN 4.25% 8/15/97 2,400,000 2,406,739
Seekonk BAN 4% 11/19/97 3,200,000 3,212,329
Somerville BAN 4% 2/19/97 1,000,000 1,000,238
Springfield BAN:
4.25% 2/14/97 (BPA Fleet National Bank) 2,100,000 2,100,325
4.10% 11/21/97 (BPA Fleet National Bank) 2,000,000 2,006,184
Stoughton BAN:
4% 8/29/97 1,000,000 1,002,249
4.25% 8/29/97 1,200,000 1,202,046
Taunton BAN 4% 12/3/97 2,100,000 2,105,580
Wakefield BAN 4% 8/20/97 1,100,000 1,102,357
Walpole BAN 4% 6/4/97 2,000,000 2,002,143
Westborough BAN 4% 5/29/97 1,300,000 1,301,459
Worcester BAN 4% 8/28/97 4,900,000 4,911,122
651,582,559
PUERTO RICO - 1.5%
Puerto Rico Commonwealth Pub. Impt. Participating VRDN,
Series PT-63, 3.30% (Liquidity Facility
Bayerische Hypotheken) (c) 2,900,000 2,900,000
Puerto Rico Elec. Pwr. Auth. Rev. Participating VRDN,
Series BT-105, 3.425% (Liquidity Facility
Bankers Trust Co.) (c) 7,068,600 7,068,600
9,968,600
TOTAL INVESTMENTS - 100% $ 661,551,159
Total Cost for Income Tax Purposes $ 661,549,523
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(d) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(e) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(f) Provides evidence of ownership in one or more underlying municipal
bonds.
(g) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(h) 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. Bonds
3.65%, tender 3/1/97
(Liquidity Facility
Citibank, NY) 6/29/95 $ 4,200,000
INCOME TAX INFORMATION
At January 31, 1997, the fund had a capital loss carryforward of
approximately $56,000 of which $8,000, $8,000 and $40,000 will expire on
January 31, 2003, 2004 and 2005, respectively.
During fiscal year ended 1997, 100% (unaudited) of the fund's income
dividends was free from federal income tax, and 11.57% (unaudited) of the
fund's income dividends was subject to the federal alternative minimum tax.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1997
ASSETS
Investment in securities, at value - $ 661,551,159
See accompanying schedule
Cash 4,814,664
Receivable for investments sold 7,313,198
Interest receivable 5,784,038
TOTAL ASSETS 679,463,059
LIABILITIES
Payable for investments purchased
Regular delivery $ 6,240,745
Delayed delivery 1,456,650
Distributions payable 12,143
Accrued management fee 285,909
Other payables and accrued expenses 5,383
TOTAL LIABILITIES 8,000,830
NET ASSETS $ 671,462,229
Net Assets consist of:
Paid in capital $ 671,513,669
Accumulated net realized gain (loss) on investments (54,370)
Unrealized gain from accretion of discount 2,930
NET ASSETS, for 671,512,244 shares outstanding $ 671,462,229
NET ASSET VALUE, offering price and redemption price per $1.00
share ($671,462,229 (divided by) 671,512,244 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 1997
INTEREST INCOME $ 19,874,129
EXPENSES
Management fee $ 2,867,193
Non-interested trustees' compensation 6,895
Total expenses before reductions 2,874,088
Expense reductions (28,627) 2,845,461
NET INTEREST INCOME 17,028,668
REALIZED AND UNREALIZED GAIN (LOSS) (39,956)
Net realized gain (loss) on investment securities
Increase (decrease) in net unrealized gain from 2,930
accretion of discount
NET GAIN (LOSS) (37,026)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 16,991,642
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
JANUARY 31, JANUARY 31,
1997 1996
INCREASE (DECREASE) IN NET ASSETS
Operations $ 17,028,668 $ 15,084,284
Net interest income
Net realized gain (loss) (39,956) (7,534)
Increase (decrease) in net unrealized gain from 2,930 -
accretion of discount
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 16,991,642 15,076,750
FROM OPERATIONS
Distributions to shareholders from net interest income (17,028,668) (15,084,284)
Share transactions at net asset value of $1.00 per share 831,825,582 630,560,707
Proceeds from sales of shares
Reinvestment of distributions from net interest income 16,774,462 14,773,809
Cost of shares redeemed (691,592,516) (537,122,656)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 157,007,528 108,211,860
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 156,970,502 108,204,326
NET ASSETS
Beginning of period 514,491,727 406,287,401
End of period $ 671,462,229 $ 514,491,727
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS YEARS ENDED JANUARY 31, SIX MONTHS YEAR ENDED
ENDED JANUARY JULY 31,
31,
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1997 1996 1995 1994 1993 1992
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations .030 .033 .024 .019 .012 .034
Net interest income
Less Distributions
From net interest income (.030) (.033) (.024) (.019) (.012) (.034)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B 3.00% 3.32% 2.42% 1.95% 1.23% 3.45%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 671,462 $ 514,492 $ 406,287 $ 346,880 $ 333,655 $ 278,369
Ratio of expenses to average net assets .50% .50% .50% .40% C .17% A, C .05% C
Ratio of net interest income to average net assets 2.96% 3.27% 2.40% 1.93% 2.44% A 3.29%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1997
6. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Massachusetts Municipal Money Market Fund (the fund) (formerly
Spartan Massachusetts Municipal Money Market Portfolio) 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 financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. Accretion
of 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.
7. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. Losses may arise due to changes in the market value of the
underlying securities or if the counterparty does not perform under the
contract.
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 $4,200,000 or
0.6% of net assets.
8. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .50% of the fund's average net
assets. FMR also bears the cost of providing shareholder services to the
fund. To offset the cost of providing these services, FMR or its affiliates
collect certain transaction fees from the fund's shareholders which
amounted to $4,492 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.
9. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the fund's
custodian and transfer agent whereby interest earned on uninvested cash
balances was used to offset a portion of the fund's expenses. During the
period, the fund's expenses were reduced by $28,627 under these
arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Massachusetts Municipal Trust and the
Shareholders of Spartan Massachusetts Municipal Money Market Fund (formerly
Spartan Massachusetts Municipal Money Market Portfolio):
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of the
Spartan Massachusetts Municipal Money Market Fund (formerly Spartan
Massachusetts Municipal Money Market Portfolio) (the "Fund") at January 31,
1997, the results of its operations for the year then ended, the changes in
its net assets and the financial highlights for the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities at January 31, 1997 by correspondence
with the custodian and brokers and the application of alternative auditing
procedures where confirmation from brokers were not received, provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Dallas, Texas
March 5, 1997
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Sarah H. Zenoble, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Thomas R. Williams *
* INDEPENDENT TRUSTEES
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S MUNICIPAL
MONEY MARKET FUNDS
California Municipal Money Market
Connecticut Municipal Money Market
Massachusetts Municipal Money Market
Michigan Municipal Money Market
New Jersey Municipal Money Market
New York Municipal Money Market
Ohio Municipal Money Market
Spartan Arizona Municipal Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
Tax-Exempt Money Market
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
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)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE
