SPARTAN(REGISTERED TRADEMARK)
(REGISTERED TRADEMARK)
MASSACHUSETTS MUNICIPAL
FUNDS
AND
FIDELITY
MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND
SEMIANNUAL REPORT
JULY 31, 1998
CONTENTS
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PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
4 PERFORMANCE
7 FUND TALK: THE MANAGER'S OVERVIEW
10 INVESTMENT CHANGES
11 INVESTMENTS
24 FINANCIAL STATEMENTS
SPARTAN MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
28 PERFORMANCE
30 FUND TALK: THE MANAGER'S OVERVIEW
32 INVESTMENT CHANGES
33 INVESTMENTS
43 FINANCIAL STATEMENTS
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
47 PERFORMANCE
49 FUND TALK: THE MANAGER'S OVERVIEW
51 INVESTMENT CHANGES
52 INVESTMENTS
62 FINANCIAL STATEMENTS
NOTES 66 NOTES TO THE FINANCIAL STATEMENTS
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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.
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:
So far, 1998 has been a year of considerable volatility in the U.S.
stock and bond markets. In the first quarter, the U.S. stock market
soared as inflation and interest rates remained stable, while the
economy maintained strong growth. By summer, however, investors began
to exercise caution relative to the troublesome Asian economic climate
and reports of concerns about corporate earnings domestically. Market
volatility and low interest rates were also the main stories in the
bond market, with many investors moving assets to highly rated U.S.
Treasuries.
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 less 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
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. 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 its yield, to measure performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1998 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
SPARTAN MA MUNICIPAL INCOME 1.42% 5.50% 35.44% 116.94%
LB MASSACHUSETTS ENHANCED 1.76% 6.13% 37.48% N/A
MUNICIPAL BOND
MASSACHUSETTS MUNICIPAL DEBT FUNDS AVERAGE 1.58% 5.38% 32.11% 110.38%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had 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 mutual funds with similar objectives tracked by
Lipper Analytical Services, Inc. The past six months average
represents a peer group of 57 mutual funds. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effect
of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
SPARTAN MA MUNICIPAL INCOME 5.50% 6.25% 8.05%
LB MASSACHUSETTS ENHANCED 6.13% 6.57% N/A
MUNICIPAL BOND
MASSACHUSETTS MUNICIPAL DEBT FUNDS AVERAGE 5.38% 5.72% 7.72%
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
Spartan MA Muni Income LB Municipal Bond
00070 LB015
1988/07/31 10000.00 10000.00
1988/08/31 10034.36 10008.80
1988/09/30 10180.44 10189.96
1988/10/31 10364.34 10369.30
1988/11/30 10304.57 10274.32
1988/12/31 10463.59 10379.43
1989/01/31 10613.36 10594.07
1989/02/28 10543.83 10473.19
1989/03/31 10551.47 10448.16
1989/04/30 10810.70 10696.20
1989/05/31 11003.10 10918.36
1989/06/30 11096.98 11066.63
1989/07/31 11182.11 11217.25
1989/08/31 11138.73 11107.43
1989/09/30 11096.13 11074.33
1989/10/31 11201.25 11209.77
1989/11/30 11359.91 11405.94
1989/12/31 11431.12 11499.24
1990/01/31 11375.10 11444.85
1990/02/28 11515.95 11546.71
1990/03/31 11535.71 11550.18
1990/04/30 11384.25 11466.55
1990/05/31 11631.91 11716.87
1990/06/30 11753.79 11819.86
1990/07/31 11919.91 11993.61
1990/08/31 11776.93 11819.46
1990/09/30 11816.37 11826.20
1990/10/31 11856.71 12040.73
1990/11/30 12223.12 12282.87
1990/12/31 12275.24 12336.30
1991/01/31 12426.91 12501.85
1991/02/28 12522.23 12610.62
1991/03/31 12584.61 12615.16
1991/04/30 12759.04 12782.94
1991/05/31 12887.58 12896.58
1991/06/30 12913.02 12883.81
1991/07/31 13100.14 13040.74
1991/08/31 13219.48 13212.48
1991/09/30 13341.00 13384.51
1991/10/31 13459.92 13504.97
1991/11/30 13495.57 13542.65
1991/12/31 13663.02 13833.27
1992/01/31 13781.88 13864.81
1992/02/29 13825.80 13869.25
1992/03/31 13839.43 13874.38
1992/04/30 13962.34 13997.86
1992/05/31 14114.72 14162.62
1992/06/30 14349.45 14400.27
1992/07/31 14735.27 14831.99
1992/08/31 14549.89 14687.38
1992/09/30 14673.77 14783.43
1992/10/31 14425.88 14638.11
1992/11/30 14791.00 14900.28
1992/12/31 14932.12 15052.41
1993/01/31 15151.66 15227.47
1993/02/28 15672.94 15778.25
1993/03/31 15531.17 15611.47
1993/04/30 15673.88 15768.99
1993/05/31 15780.20 15857.61
1993/06/30 16028.80 16122.28
1993/07/31 16017.62 16143.40
1993/08/31 16351.85 16479.50
1993/09/30 16631.15 16667.20
1993/10/31 16672.03 16699.37
1993/11/30 16535.05 16552.25
1993/12/31 16861.49 16901.67
1994/01/31 17056.35 17094.69
1994/02/28 16699.44 16651.93
1994/03/31 15980.81 15973.87
1994/04/30 16034.66 16109.32
1994/05/31 16192.52 16248.99
1994/06/30 16117.12 16149.71
1994/07/31 16421.71 16445.74
1994/08/31 16493.99 16502.64
1994/09/30 16225.54 16260.38
1994/10/31 15898.89 15971.59
1994/11/30 15450.21 15682.83
1994/12/31 15837.39 16028.01
1995/01/31 16409.83 16486.09
1995/02/28 16869.53 16965.50
1995/03/31 17095.59 17160.44
1995/04/30 17103.88 17180.69
1995/05/31 17639.11 17728.92
1995/06/30 17367.03 17574.68
1995/07/31 17484.59 17741.29
1995/08/31 17696.99 17966.25
1995/09/30 17843.93 18079.97
1995/10/31 18134.95 18342.86
1995/11/30 18453.67 18647.16
1995/12/31 18699.43 18826.36
1996/01/31 18831.81 18968.50
1996/02/29 18635.81 18840.47
1996/03/31 18381.22 18599.68
1996/04/30 18300.42 18547.05
1996/05/31 18303.39 18539.63
1996/06/30 18483.17 18741.52
1996/07/31 18681.88 18912.07
1996/08/31 18650.23 18907.53
1996/09/30 18898.65 19172.24
1996/10/31 19116.12 19389.08
1996/11/30 19466.35 19743.90
1996/12/31 19372.09 19660.97
1997/01/31 19408.37 19698.13
1997/02/28 19589.05 19878.96
1997/03/31 19318.61 19613.97
1997/04/30 19488.85 19778.14
1997/05/31 19783.11 20075.61
1997/06/30 19989.14 20289.41
1997/07/31 20562.37 20851.43
1997/08/31 20370.86 20656.05
1997/09/30 20612.98 20901.24
1997/10/31 20736.20 21035.63
1997/11/30 20873.76 21159.32
1997/12/31 21177.34 21468.04
1998/01/31 21390.03 21689.59
1998/02/28 21363.02 21696.09
1998/03/31 21380.17 21715.19
1998/04/30 21286.19 21617.25
1998/05/31 21610.62 21959.45
1998/06/30 21660.56 22045.97
1998/07/31 21694.16 22101.31
IMATRL PRASUN SHR__CHT 19980731 19980811 140444 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan Massachusetts Municipal Income Fund on July 31,
1988. As the chart shows, by July 31, 1998, the value of the
investment would have grown to $21,694 - a 116.94% 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 $22,101 - a 121.01% 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
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SIX MONTHS YEARS ENDED JANUARY 31,
ENDED
JULY 31,
1998 1998 1997 1996 1995 1994
DIVIDEND RETURNS 2.42% 5.47% 5.33% 6.41% 5.85% 6.32%
CAPITAL RETURNS -1.00% 4.74% -2.27% 8.35% -9.64% 6.25%
TOTAL RETURNS 1.42% 10.21% 3.06% 14.76% -3.79% 12.57%
TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital 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, if
any, paid by the fund are reinvested.
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DIVIDENDS AND YIELD
PERIODS ENDED JULY 31, 1998 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR
DIVIDENDS PER SHARE 4.84(CENTS) 28.76(CENTS) 58.29(CENTS)
ANNUALIZED DIVIDEND RATE 4.80% 4.89% 4.93%
30-DAY ANNUALIZED YIELD 4.24% - -
30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 7.53% - -
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DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of
$11.86 over the past one month, $11.87 over the past six months and
$11.82 over the past one 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 1998 federal
and state tax bracket, but does not reflect the payment of the
alternative minimum tax, if applicable.
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
With the supply of municipal bonds
growing to near-record levels,
fluctuating consumer demand and
continued turmoil in the Asian
markets, the municipal bond market
experienced varying shifts in
performance during the six-month
period that ended July 31, 1998.
During this period, the Lehman
Brothers Municipal Bond Index -
a measure of the municipal bond
market - returned 1.90%. In
comparison, the Lehman Brothers
Aggregate Bond Index - a
measure of the investment-grade
taxable bond market in the U.S. -
returned 2.83%. Municipals lagged
taxable issue bonds throughout
this six-month period. In early
1998, lower interest rates proved
enticing to municipal bond issuers
seeking to refinance their debt at
lower rates. However, the increased
refinancing activity also caused an
increased supply of municipal
bonds. Coupled with weakened
demand, muni bond performance
suffered accordingly. Extremely
heavy municipal bond issuance
continued throughout the early
spring as many issuers rushed to
the market to capitalize on the
opportunity to refinance their older,
more expensive debt. Then, in May,
the largest deal in municipal history
took place - a $3.5 billion issuance
by the Long Island Power Authority.
This heavy supply, combined with
lower demand, continued to put
downward pressure on municipal
bonds throughout the remainder of
the period.
NOTE TO SHAREHOLDERS: Christine Thompson became Portfolio Manager of
Spartan Massachussetts Municipal Income Fund on July 13, 1998.
Q. HOW DID THE FUND PERFORM, CHRISTINE?
A. For the six-month period that ended July 31, 1998, the fund had a
total return of 1.42%. To get a sense of how the fund did relative to
its competitors, the Massachusetts municipal debt funds average
returned 1.58% for the same six-month period, according to Lipper
Analytical Services. Additionally, the Lehman Brothers Massachusetts
Enhanced Municipal Bond Index - a broad measure of the performance of
the state's municipal bond market - returned 1.76% for the same
six-month period. For the 12 months that ended July 31, 1998, the fund
returned 5.50%, while the Massachusetts municipal debt funds average
returned 5.38%, and the Lehman Brothers Massachusetts Enhanced
Municipal Bond Index returned 6.13%.
Q. HOW DID THE MASSACHUSETTS MUNICIPAL MARKET PERFORM RELATIVE TO
OTHER SEGMENTS OF THE MUNICIPAL MARKET?
A. After keeping pace and occasionally exceeding the performance of
the national municipal market in the first half of the period, the
Massachusetts municipal market trailed the national market more
recently. That underperformance can be attributed to an increasing
supply of Massachusetts municipal bonds, which put a small amount of
pressure on the state's municipal bond prices. Thanks in large part to
issuers refinancing debt at lower interest rates, the supply of
municipals has expanded somewhat this year compared to last.
Q. WHY DID THE FUND LAG THE MASSACHUSETTS MUNICIPAL DEBT FUNDS AVERAGE
DURING THE PAST SIX MONTHS?
A. The primary reason for the fund's modest lagging of the municipal
debt funds average was its relatively large stake in non-callable
bonds - which can't be redeemed by their issuers before maturity.
Municipal bond issuers often refinance their older, more expensive
debt at lower interest rates, much as homeowners do with their
mortgages when interest rates fall. When a bond is called, or
redeemed, by its issuer, the bond holders often are forced to reinvest
the proceeds at lower interest rates. That's what happened throughout
much of the past year, and having a relatively large stake in
non-callable bonds was a plus for the fund's performance. More
recently, however, non-callable bonds lost a little of their investor
appeal and lagged their callable counterparts. During the past six
months, many callable bonds were being refunded by their issuers,
receiving a credit upgrade because of the refunding, and rallying in
response.
Q. WHICH INVESTMENTS MADE A POSITIVE CONTRIBUTION TO PERFORMANCE?
A. Strong performers included lower-rated, investment-grade bonds -
such as those rated Baa, which benefited from strong demand. They
became increasingly attractive because they offered more yield than
A-rated, Aa-rated and Aaa-rated bonds. In addition, there was a very
small supply of these bonds during the period, and strong demand and
low supply helped boost the prices of many Baa-rated bonds. Also, the
fund's relatively heavy stake in intermediate maturity bonds performed
better than shorter-term securities as interest rates fell.
Q. CHRISTINE, WHAT'S YOUR OUTLOOK FOR THE MASSACHUSETTS MUNICIPAL
MARKET?
A. The state legislature recently enacted a tax cut, a good indication
of just how solid the Massachusetts economy has been over the past
several years. So from an economic and credit quality standpoint, I
believe that most municipal issuers in Massachusetts currently are in
pretty good shape. Less certain is how much of the continued funding
of Boston's Central Artery/Tunnel project - dubbed "the Big Dig" -
will fall on the state and other entities like the Massachusetts
Turnpike Authority or the Massachusetts Port Authority. I'll be
watching those developments closely. For the remainder of the year, I
expect that Massachusetts municipal supply will taper off from its
first half level, which likely would be a positive for the market as
long as demand remains firm or increases.
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.
CHRISTINE THOMPSON ON THE
LEHMAN BROTHERS
MASSACHUSETTS ENHANCED
MUNICIPAL BOND INDEX AND ITS
ROLE IN MANAGING THE FUND:
"The Lehman Brothers
Massachusetts Enhanced
Municipal Bond Index is a
representation of the overall
market in which the fund
invests. The index includes most
of the universe of Massachusetts
municipal bonds. I manage the fund
to have similar overall
interest-rate risk to its benchmark
index, but beyond that, the fund
can vary significantly from the
index. With respect to sector,
issuer and structural
composition, the fund's holdings
reflect my research conclusions on
the relative value of bonds."
(solid bullet) General obligation bonds (GOs)
made up the fund's largest sector
concentration at 26.0% of
investments at the end of the
period. A GO is backed by the full
faith and credit - which includes
the taxing power - of a city,
county, state or other issuer, and is
repaid with general revenue
including taxes.
FUND FACTS
GOAL: to provide high current
income exempt from federal
income tax and Massachusetts
personal income tax by
investing in investment-grade
municipal securities under
normal conditions
FUND NUMBER: 070
TRADING SYMBOL: FDMMX
START DATE: November 10, 1983
SIZE: as of July 31, 1998,
more than $1.2 billion
MANAGER: Christine Thompson,
since July 1998; manager,
various Fidelity and Spartan
municipal income funds;
joined Fidelity in 1985
(checkmark)
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF JULY 31, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO
GENERAL OBLIGATION 26.0 26.5
HEALTH CARE 19.5 21.1
WATER & SEWER 10.6 11.7
EDUCATION 10.4 9.4
ESCROWED/PRE-REFUNDED 9.2 7.5
AVERAGE YEARS TO MATURITY AS OF JULY 31, 1998
6 MONTHS AGO
YEARS 13.5 13.7
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF JULY 31, 1998
6 MONTHS AGO
YEARS 6.6 6.8
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF JULY 31, 1998 AS OF JANUARY 31, 1998
AAA 44.3%
AA, A 41.0%
BAA 5.6%
NON-RATED 5.1%
SHORT-TERM
INVESTMENTS 4.0%
AAA 41.9%
AA, A 43.3%
BAA 5.9%
NON-RATED 5.8%
SHORT-TERM
INVESTMENTS 3.1%
ROW: 1, COL: 1, VALUE: 44.3
ROW: 1, COL: 2, VALUE: 41.0
ROW: 1, COL: 3, VALUE: 5.6
ROW: 1, COL: 4, VALUE: 5.1
ROW: 1, COL: 5, VALUE: 4.0
ROW: 1, COL: 1, VALUE: 41.9
ROW: 1, COL: 2, VALUE: 43.3
ROW: 1, COL: 3, VALUE: 5.9
ROW: 1, COL: 4, VALUE: 5.8
ROW: 1, COL: 5, VALUE: 3.1
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
INVESTMENTS JULY 31, 1998 (UNAUDITED)
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES
MUNICIPAL BONDS - 96.0%
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - 93.7%
Attleboro Gen. Oblig.:
6% 10/1/03 (MBIA Insured) Aaa $ 1,085,000 $ 1,172,212
6% 10/1/04 (MBIA Insured) Aaa 1,085,000 1,184,234
6% 10/1/05 (MBIA Insured) Aaa 1,085,000 1,192,643
6% 10/1/06 (MBIA Insured) Aaa 1,085,000 1,201,453
6% 10/1/07 (MBIA Insured) Aaa 1,085,000 1,208,907
Barnstable Ind. Dev. Fing. Auth. Ind. Dev. Rev.
(Whitehall Pavilion) 10.125% 2/15/26
(FHA Guaranteed) A 2,980,000 3,102,359
Boston Econ. Dev. & Ind. Corp. (Boston Army
Base Proj.) Series 1983, 6.25% 8/1/03,
LOC State Street Bank & Trust Co. - 4,180,000 4,198,768
Boston Gen. Oblig. Series A, 10% 7/1/00
(MBIA Insured) Aaa 1,000,000 1,107,210
Boston Hsg. Dev. Corp. Mtg. Rev. Rfdg. (Section 8)
Series A, 5.15% 7/1/08 (MBIA Insured)
(FHA Guaranteed) Aaa 3,005,000 3,084,873
Boston Wtr. & Swr. Commission Rev. Gen.
Sr. Series A, 5.25% 11/1/19 A1 10,100,000 10,334,522
Brockton Gen. Oblig.:
6% 4/1/06 (MBIA Insured) Aaa 1,380,000 1,520,374
5% 4/1/09 (MBIA Insured) Aaa 1,200,000 1,238,496
5.10% 4/1/12 (MBIA Insured) Aaa 1,850,000 1,880,118
5% 4/1/13 (MBIA Insured) Aaa 1,165,000 1,168,577
Brockton Hsg. Dev. Corp. Multi-Family Hsg.
Rev. Rfdg. (Douglas House Proj.) Series 1992-A,
7.375% 9/1/24 (FNMA Collateralized) AAA 8,120,000 8,556,856
Chelsea Gen. Oblig. Rfdg.:
5% 6/15/13 (AMBAC Insured) Aaa 2,640,000 2,648,263
5.125% 6/15/16 (AMBAC Insured) Aaa 1,750,000 1,756,195
Chelsea School Proj. Loan Act 1948:
6.50% 6/15/12 (AMBAC Insured)
(Pre-Refunded to 6/15/04 @ 102) (d) Aaa 2,500,000 2,835,025
6% 6/15/14 (AMBAC Insured)
(Pre-Refunded to 6/15/04 @ 102) (d) Aaa 1,830,000 2,028,134
Granville Gen. Oblig.:
7.30% 7/15/05 (MBIA Insured) Aaa 145,000 169,740
7.30% 7/15/06 (MBIA Insured) Aaa 145,000 172,749
7.30% 7/15/07 (MBIA Insured) Aaa 140,000 168,423
7.30% 7/15/08 (MBIA Insured) Aaa 140,000 170,341
Halifax Gen. Oblig.:
6.20% 6/1/10 (AMBAC Insured) Aaa 325,000 355,852
6.25% 6/1/11 (AMBAC Insured) Aaa 325,000 355,797
6.30% 6/1/12 (AMBAC Insured) Aaa 325,000 356,619
6.30% 6/1/13 (AMBAC Insured) Aaa 325,000 356,619
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Haverhill Gen. Oblig. Rfdg. Series A:
6.40% 9/1/03 (AMBAC Insured) Aaa $ 1,600,000 $ 1,725,184
6.50% 9/1/04 (AMBAC Insured) Aaa 1,595,000 1,721,946
Holyoke Gen. Oblig.:
Muni. Purp. Loan Series A:
5.50% 6/15/04 (FSA Insured) Aaa 1,255,000 1,332,647
6% 6/15/05 (FSA Insured) Aaa 1,350,000 1,479,141
6% 6/15/06 (FSA Insured) Aaa 1,300,000 1,435,252
5.50% 6/15/16 (FSA Insured) Aaa 2,100,000 2,174,865
Rfdg. Series B:
5.50% 6/15/04 (FSA Insured) Aaa 2,015,000 2,139,668
6% 6/15/06 (FSA Insured) Aaa 1,400,000 1,545,656
Holyoke School Proj. Loan Act:
7.35% 8/1/02 (Pre-Refunded to
8/1/01 @ 102) (d) Baa2 1,960,000 2,175,110
7.65% 8/1/09 (Pre-Refunded to
8/1/01 @ 102) (d) Baa2 2,205,000 2,465,455
Lowell Gen. Oblig.:
Rfdg. Series A, 5.50% 1/15/10 (FSA Insured) Aaa 2,000,000 2,096,960
8% 1/15/00 A3 500,000 514,605
6.25% 8/1/04 (AMBAC Insured) Aaa 2,035,000 2,243,384
6.25% 8/1/05 (AMBAC Insured) Aaa 2,120,000 2,357,843
5.80% 4/1/08 (FSA Insured) Aaa 1,195,000 1,299,682
8.40% 1/15/09 (Pre-Refunded to
1/15/01 @ 102) (d) Baa1 1,250,000 1,394,838
Lowell Hsg. Dev. Corp. Multi-Family Hsg.
Rev. Rfdg. (Section 8) Series A:
7.875% 11/1/00 (FNMA Collateralized) AAA 400,000 415,276
7.875% 11/1/24 (FNMA Collateralized) AAA 5,440,000 5,724,186
Mansfield Gen. Oblig. Muni. Purp. Loan:
5.50% 8/15/08 (FGIC Insured) Aaa 2,075,000 2,238,344
5.50% 8/15/09 (FGIC Insured) Aaa 2,120,000 2,271,029
5.50% 8/15/10 (FGIC Insured) Aaa 2,170,000 2,308,034
Massachusetts Bay Trans. Auth. (Gen. Trans. Sys.):
Rfdg:
Series A:
7% 3/1/08 Aa3 1,000,000 1,184,550
5.50% 3/1/12 Aa3 4,350,000 4,599,560
6.25% 3/1/12 Aa3 1,500,000 1,705,080
Series B:
6% 3/1/12 Aa3 7,440,000 7,992,346
6.20% 3/1/16 Aa3 27,500,000 31,199,300
5.50% 3/1/21 Aa3 5,000,000 5,076,200
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Bay Trans. Auth. (Gen. Trans. Sys.): - continued
Series A:
5.50% 3/1/04 (FGIC Insured) Aaa $ 2,000,000 $ 2,119,280
6.25% 3/1/05 Aa3 2,780,000 3,072,178
5.70% 3/1/09 Aa3 5,000,000 5,441,200
5.80% 3/1/11 Aa3 6,435,000 7,060,739
6% 3/1/11 (FGIC Insured)
(Pre-Refunded to 3/1/07 @ 101) (d) Aaa 5,660,000 6,339,653
5.80% 3/1/12 Aa3 3,000,000 3,277,080
7% 3/1/21 Aa3 1,500,000 1,845,330
5% 3/1/23 (FGIC Insured) Aaa 7,960,000 7,741,020
Series B, 5.375% 3/1/25 (AMBAC Insured) Aaa 4,490,000 4,541,051
Series C, 5% 3/1/24 Aa3 7,900,000 7,635,113
Series D, 5% 3/1/22 Aa3 5,750,000 5,564,563
Massachusetts College Bldg. Auth. Proj. Rev. Rfdg.
Series A, 7.50% 5/1/05 Aa3 3,000,000 3,554,370
Massachusetts Ed. Loan Auth. Ed. Loan Rev.
Issue E, 5.75% 7/1/07 (AMBAC Insured) (c) Aaa 3,365,000 3,567,506
Massachusetts Fed. Hwy. Grant
Anticipation Notes Series A:
5.25% 6/15/09 Aa3 4,090,000 4,288,488
5.25% 6/15/12 Aa3 3,000,000 3,086,910
5.50% 6/15/14 Aa3 3,000,000 3,124,650
Massachusetts Gen. Oblig.:
Consolidated Loan:
Series A:
7.50% 6/1/04 Aa3 4,830,000 5,499,293
5.40% 11/1/06 Aa3 1,000,000 1,062,180
5% 3/1/08 (AMBAC Insured) Aaa 15,000,000 15,535,200
Series B, 5.75% 6/1/16
(Pre-Refunded to 6/1/06 @ 101) (d) Aa3 16,820,000 18,427,487
Series C, 5.625% 8/1/13 (MBIA Insured) Aaa 2,500,000 2,632,975
Series D:
6% 7/1/12 (Pre-Refunded
to 7/1/01 @ 100) (d) Aa3 1,460,000 1,537,234
5.25% 11/1/12 Aa3 5,000,000 5,128,850
(Cap. Appreciation):
Series B:
0% 6/1/99 Aa3 1,000,000 970,300
0% 7/1/02 Aa3 12,250,000 10,390,450
Series C, 0% 12/1/05 Aa3 6,500,000 4,694,365
Rfdg.:
Series A:
6.25% 7/1/02 Aa3 19,665,000 21,109,591
6.25% 7/1/03 Aa3 13,500,000 14,697,855
6.25% 7/1/04 Aa3 9,300,000 10,224,885
6% 7/1/05 (AMBAC Insured) Aaa 4,000,000 4,382,360
5.25% 2/1/08 Aa3 5,000,000 5,179,900
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Gen. Oblig.: - continued
Rfdg:
Series B:
5.40% 11/1/06 Aa3 $ 3,750,000 $ 3,983,175
6.50% 8/1/08 Aa3 9,500,000 10,937,065
Massachusetts Health & Edl. Facs. Auth. Rev.:
Rfdg.:
(Amherst College) Series G, 5.25% 11/1/17 Aa1 4,670,000 4,685,785
(Boston College) Series K:
5.25% 6/1/10 A1 3,025,000 3,173,407
5.375% 6/1/14 A1 10,445,000 10,809,531
(Emerson Hosp.) Series D,
5.70% 8/15/12 (FSA Insured) Aaa 9,475,000 10,028,719
(Fairview Extended Care) Series B,
4.55% 7/14/02 (MBIA Insured)
LOC BankBoston, NA Aaa 6,700,000 6,718,961
(Harvard Univ.) Series P:
6.50% 11/1/05 Aaa 1,000,000 1,138,280
5.60% 11/1/14 Aaa 1,000,000 1,043,370
5.625% 11/1/28 Aaa 1,500,000 1,550,955
(Massachusetts Gen. Hosp.) Series F,
6.25% 7/1/12 (AMBAC Insured) Aaa 4,750,000 5,395,193
(Morton Hosp. & Med. Ctr.) Series B,
5.25% 7/1/08 (Connie Lee Insured) AAA 2,800,000 2,891,280
(Newton-Wellesley Hosp.) Series G:
6% 7/1/12 (MBIA Insured) Aaa 4,070,000 4,446,841
6.125% 7/1/15 (MBIA Insured) Aaa 4,500,000 4,939,695
(Wheaton College) Series C:
5.125% 7/1/09 A2 1,130,000 1,156,939
5.25% 7/1/14 A2 2,655,000 2,678,895
5.25% 7/1/19 A2 2,000,000 2,005,080
(Anna Jacques Hosp.) Series B:
5.90% 10/1/99 Baa1 930,000 948,851
6% 10/1/00 Baa1 985,000 1,020,490
6.875% 10/1/12 Baa1 3,250,000 3,541,330
(Baystate Med. Ctr.):
Series D, 5.50% 7/1/16 (FGIC Insured) Aaa 6,400,000 6,580,352
Series E:
6% 7/1/04 (FSA Insured) Aaa 1,290,000 1,392,555
6% 7/1/05 (FSA Insured) Aaa 1,385,000 1,502,767
6% 7/1/06 (FSA Insured) Aaa 1,425,000 1,556,086
(Blood Research Institute)
Series A, 6.50% 2/1/22 - 15,080,000 16,303,440
(Cape Cod Health Sys.) Series A,
5.25% 11/15/13 (Connie Lee Insured) AAA 3,500,000 3,543,890
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl. Facs. Auth. Rev.: - continued
(Catholic Health East) Series B,
5% 11/15/28 (AMBAC Insured) Aaa $ 3,000,000 $ 2,865,390
(Dana Farber Cancer Proj.) Series G-1:
6.25% 12/1/14 A1 3,000,000 3,294,510
5.50% 12/1/27 A1 18,600,000 18,753,450
(Emerson Hosp.) Series C, 8% 7/1/18
(Pre-Refunded to 7/1/00 @ 102) (d) AAA 21,295,000 23,319,303
(Falmouth Hosp.) Series C, 5.50% 7/1/08
(MBIA Insured) Aaa 1,000,000 1,047,210
(Faulkner Hosp.) Series C:
6% 7/1/13 Baa1 9,745,000 10,277,954
6% 7/1/23 Baa1 6,010,000 6,302,927
(Lahey Hitchcock Clinic Med. Ctr.) Series B,
5.25% 7/1/10 (MBIA Insured) Aaa 14,120,000 14,496,439
(Lowell Gen. Hosp.) Series A:
8.25% 6/1/00 (Escrowed to Maturity) (d) A3 1,325,000 1,380,756
8.40% 6/1/11 (Pre-Refunded to
6/1/01 @ 102) (d) A3 2,565,000 2,908,992
(Massachusetts Institute of Technology) Series I-1,
5.20% 1/1/28 Aaa 4,000,000 4,123,600
(Med. Academic & Scientific Commission
Organizations) Series A, 6.625% 1/1/15 A- 4,150,000 4,549,189
(Med. Ctr. of Central Massachusetts) Series B,
9.02% 6/23/22 (AMBAC Insured) INFL (f) Aaa 10,000,000 12,716,100
(Mount Auburn Hosp.) Series B-1:
6.25% 8/15/14 (MBIA Insured) Aaa 1,250,000 1,370,063
6.30% 8/15/24 (MBIA Insured) Aaa 5,000,000 5,484,950
(New England Med. Ctr. Hosp.):
Series F, 6.625% 7/1/25 (FGIC Insured) Aaa 4,850,000 5,292,951
Series G, 5.375% 7/1/24 (MBIA Insured) Aaa 1,000,000 1,006,700
(Notre Dame Health Care Ctr.) Series A:
7.25% 10/1/01 - 490,000 519,131
7.875% 10/1/22 - 5,000,000 5,423,400
(Partners Healthcare Sys.) Series A:
5.25% 7/1/04 (FSA Insured) Aaa 2,000,000 2,081,800
5.50% 7/1/05 (FSA Insured) Aaa 2,000,000 2,111,340
5.50% 7/1/07 (FSA Insured) Aaa 2,390,000 2,537,224
5.25% 7/1/15 (MBIA Insured) Aaa 2,940,000 2,967,812
5.375% 7/1/24 (MBIA Insured) Aaa 7,850,000 7,920,415
(Simmons College):
Series B, 7.50% 10/1/20 (Pre-Refunded
to 10/1/00 @ 103) (d) Baa1 6,190,000 6,670,158
Series C, 5% 10/1/19 (MBIA Insured) Aaa 4,190,000 4,072,471
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl. Facs. Auth. Rev.: - continued
(Tufts Univ.) 6.63% 8/15/18
(FGIC Insured) INFL (f) Aaa $ 7,900,000 $ 8,415,554
(Williams College) Series F, 5.75% 7/1/19 Aa1 3,000,000 3,143,790
Massachusetts Hsg. Fin. Agcy. Hsg. Rev.:
Rfdg.:
Series A, 6% 12/1/13 (MBIA Insured) Aaa 5,525,000 5,852,356
Series 53, 5.20% 12/1/21 (MBIA Insured) (c) Aaa 1,770,000
1,818,640
(Single Family):
Series 3, 7.30% 6/1/14 (Pre-Refunded
to 9/1/98 @ 101.50) (d) Aa 6,000,000 6,052,500
Series 8, 7.70% 6/1/17 Aa 500,000 513,235
Series 10, 7.70% 12/1/17 Aa 630,000 654,501
Series 40:
6.60% 12/1/24 (c) Aa 19,550,000 21,048,312
6.65% 12/1/27 (c) Aa 7,000,000 7,556,220
Series 29, 6.75% 6/1/26 (c) Aa 2,700,000 2,922,480
Massachusetts Ind. Fin. Agcy. Museum Rev.
Rfdg. (Museum of Fine Arts Boston):
5% 1/1/01 (MBIA Insured) Aaa 2,800,000 2,856,392
5.125% 1/1/04 (MBIA Insured) Aaa 1,150,000 1,192,159
5.375% 1/1/05 (MBIA Insured) Aaa 3,475,000 3,651,878
Massachusetts Ind. Fin. Agcy. Rev.:
Rfdg.:
(Atlanticare Med. Ctr.)
Series A, 10.125% 11/1/14 - 1,900,000 2,058,479
(Lesley College) Series A, 6.30% 7/1/15
(Connie Lee Insured) AAA 2,525,000 2,798,988
(Milton Academy) Series B, 5.25%
9/1/19 (MBIA Insured) Aaa 2,500,000 2,502,600
(Springfield College):
5.25% 9/15/03 Baa1 755,000 774,758
5.25% 9/15/04 Baa1 885,000 907,550
5.35% 9/15/05 Baa1 930,000 957,035
5.625% 9/15/10 Baa1 1,000,000 1,015,360
(Worcester Polytechnic Institute):
5.75% 9/1/05 (MBIA Insured) Aaa 1,340,000 1,444,654
5.75% 9/1/06 (MBIA Insured) Aaa 1,415,000 1,533,775
5.75% 9/1/07 (MBIA Insured) Aaa 1,500,000 1,632,960
5.75% 9/1/08 (MBIA Insured) Aaa 1,585,000 1,732,579
(Atlanticare Med. Ctr.) Series B,
10.125% 11/1/14 - 7,900,000 8,558,939
(Babson College) Series A:
5.60% 10/1/06 (MBIA Insured) Aaa 515,000 553,362
5.70% 11/1/07 (MBIA Insured) Aaa 545,000 590,791
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Rev.: - continued
(Concord Academy) 6.90% 9/1/21 (FSA Insured)
(Pre-Refunded to 9/1/01 @ 102) (d) Aaa $ 1,370,000 $ 1,494,643
(Leominster Hosp.) Series A, 8.375% 8/1/99
(Escrowed to Maturity) (d) - 2,100,000 2,195,487
(Massachusetts Biomedical Research)
(Cap. Appreciation):
Series A-1, 0% 8/1/02 A1 3,650,000 3,081,476
Series A-2:
0% 8/1/03 A1 1,000,000 806,720
0% 8/1/05 A1 24,600,000 18,005,970
0% 8/1/07 - 25,000,000 16,463,500
0% 8/1/08 - 15,000,000 9,320,550
(Tufts Univ.) Series H, 4.75%
2/15/28 (MBIA Insured) Aaa 10,000,000 9,312,000
(Whitehead Institute Biomedical Research)
5.125% 7/1/26 Aa1 14,600,000 14,273,252
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev.
Rfdg. (Boston Edison Co. Proj.) Series A,
5.75% 2/1/14 Baa1 9,900,000 10,172,250
Massachusetts Muni. Wholesale Elec. Co.
Pwr. Supply Rev.:
Rfdg.:
Series A:
5.10% 7/1/08 (AMBAC Insured) Aaa 1,000,000 1,028,490
6.75% 7/1/08 Baa2 3,000,000 3,227,910
6% 7/1/18 (MBIA Insured) Aaa 10,000,000 10,509,300
Series B:
6.50% 7/1/02 (MBIA Insured) Aaa 2,000,000 2,159,520
6.625% 7/1/04 Baa2 4,675,000 5,073,918
6.75% 7/1/08 Baa2 2,000,000 2,151,940
Series B, 6.75% 7/1/17 Baa2 9,050,000 9,690,921
Series C, 6.625% 7/1/18 (MBIA Insured) Aaa 10,000,000 10,928,400
Series D, 6% 7/1/06 Baa2 1,000,000 1,057,730
Series E, 6% 7/1/06 Baa2 1,640,000 1,734,677
Massachusetts Port Auth. Rev.:
Series A:
Rfdg.:
5.50% 7/1/09 Aa3 3,160,000 3,286,463
5% 7/1/13 Aa3 5,585,000 5,606,893
5% 7/1/23 Aa3 9,560,000 9,256,279
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Port Auth. Rev.: - continued
Series A:
(US Air Proj.) 5.50%
9/1/10 (MBIA Insured) (c) Aaa $ 2,030,000 $ 2,128,232
6% 7/1/03 Aa3 1,000,000 1,078,670
6% 7/1/04 Aa3 1,390,000 1,511,792
5.625% 7/1/12 (Escrowed to Maturity) (d) Aaa 1,900,000 1,993,689
Massachusetts Spl. Oblig. Rev. Series A:
Rfdg. Consolidated Loan 5.50% 6/1/12 Aa3 2,000,000 2,131,340
(Hwy. Impt. Loan) 6% 6/1/13 (Pre-Refunded
to 6/1/02 @ 100) (d) Aa3 17,695,000 18,871,894
5.20% 6/1/07 (AMBAC Insured) Aaa 6,950,000 7,276,372
5.80% 6/1/14 (Pre-Refunded to
6/1/04 @ 101) (d) Aa3 4,185,000 4,548,928
Massachusetts Tpk. Auth. Metropolitan Hwy. Sys.
Rev. Series A:
5.125% 1/1/23 (MBIA Insured) Aaa 15,700,000 15,496,371
5% 1/1/27 (MBIA Insured) Aaa 8,000,000 7,730,400
Massachusetts Tpk. Auth. Western Tpk. Rev.
Series A, 5.55% 01/1/17 (MBIA Insured) Aaa 24,800,000 24,992,696
Massachusetts Wtr. Poll. Abatement Trust Wtr.
Poll. Abatement Rev. (Pooled Loan Prog.):
Series A:
6% 8/1/02 Aa 3,255,000 3,468,105
6% 8/1/03 Aa 3,450,000 3,719,342
6% 8/1/04 Aa 3,670,000 3,987,675
6% 8/1/05 Aa 1,500,000 1,644,000
Series 1:
5.30% 2/1/05 Aaa 1,000,000 1,053,680
5.40% 2/1/06 Aaa 2,175,000 2,311,808
5.40% 8/1/06 Aaa 2,230,000 2,370,267
5.45% 2/1/07 Aaa 2,000,000 2,125,600
Series 3:
6% 2/1/06 Aaa 3,000,000 3,305,670
6% 2/1/07 Aaa 4,795,000 5,320,388
5.40% 2/1/10 Aaa 1,700,000 1,810,279
5.50% 2/1/13 Aaa 6,715,000 7,095,270
Massachusetts Wtr. Resource Auth.:
Rfdg.:
Series B:
5.875% 11/1/04 A1 1,975,000 2,128,714
6% 11/1/08 A1 4,500,000 4,826,385
6.25% 11/1/10 A1 3,605,000 3,900,862
5.50% 8/1/15 (FSA Insured) Aaa 2,750,000 2,955,123
5.50% 8/1/16 (FSA Insured) Aaa 1,425,000 1,510,586
5% 3/1/22 A1 13,000,000 12,597,910
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Wtr. Resource Auth.: - continued
Rfdg.:
Series C:
6% 12/1/11 A1 $ 2,000,000 $ 2,269,640
4.75% 12/1/23 A1 13,000,000 12,129,780
Series A:
6.50% 7/15/07 A1 6,000,000 6,863,160
6.50% 7/15/09 A1 4,750,000 5,513,135
5.80% 8/1/11 (MBIA Insured) (Pre-Refunded
to 8/1/04 @ 101.50) (d) Aaa 2,740,000 3,002,026
6.50% 7/15/19 A1 16,960,000 20,192,746
6% 8/1/20 (MBIA Insured) (Pre-Refunded to
8/1/04 @ 101.50) (d) Aaa 13,500,000 14,932,620
Mendon Upton Reg. School Dist.:
5% 6/1/08 (FGIC Insured) Aaa 1,215,000 1,261,206
5.125% 6/1/09 (FGIC Insured) Aaa 1,285,000 1,340,306
5.125% 6/1/10 (FGIC Insured) Aaa 1,355,000 1,401,626
5.25% 6/1/11 (FGIC Insured) Aaa 1,435,000 1,487,105
Methuen Gen. Oblig.:
5.25% 11/1/07 (FGIC Insured) Aaa 1,355,000 1,434,593
5.25% 11/1/08 (FGIC Insured) Aaa 1,415,000 1,499,433
5.25% 11/1/09 (FGIC Insured) Aaa 1,480,000 1,559,506
5.25% 11/1/10 (FGIC Insured) Aaa 1,550,000 1,621,331
5% 11/1/16 (FGIC Insured) Aaa 2,500,000 2,476,000
Nantucket Island Gen. Oblig. Rfdg.:
5.50% 7/15/08 (MBIA Insured) Aaa 2,750,000 2,964,995
5.50% 7/15/09 (MBIA Insured) Aaa 2,915,000 3,121,265
5.375% 7/15/11 (MBIA Insured) Aaa 3,005,000 3,145,243
Nantucket Island Land Bank Rfdg. Series E,
7.25% 7/1/19 (Pre-Refunded
to 7/1/01 @ 102) (d) A1 6,175,000 6,821,090
New England Ed. Loan Marketing Corp.
Student Loan Rev.:
Rfdg. Series A, 5.70% 7/1/05 (c) A3 6,740,000 7,072,080
Issue A, 5.80% 3/1/02 Aaa 32,000,000 33,410,880
North Attleborough Gen. Oblig. Ltd. Tax Rfdg.
5.25% 11/1/13 (AMBAC Insured) Aaa 1,000,000 1,016,730
Pentucket Reg. School Dist.:
5.10% 2/15/11 (MBIA Insured) Aaa 530,000 539,275
5.10% 2/15/12 (MBIA Insured) Aaa 220,000 222,462
5.10% 2/15/13 (MBIA Insured) Aaa 575,000 579,635
5.10% 2/15/14 (MBIA Insured) Aaa 525,000 527,594
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Plymouth County Ctfs. of Prtn.
Series A, 7% 4/1/22 A $ 10,995,000 $ 12,176,633
Quincy Rev. (Quincy City Hosp.):
Rfdg. 5.25% 1/15/16 (FSA Insured) Aaa 2,000,000 2,010,900
5.30% 1/15/11 (FSA Insured) Aaa 11,400,000 11,639,742
South Essex Swr. Dist.:
Rfdg. Series A:
6% 6/15/03 (MBIA Insured) Aaa 2,390,000 2,572,070
6% 6/15/04 (MBIA Insured) Aaa 2,375,000 2,582,931
6% 6/15/05 (MBIA Insured) Aaa 1,175,000 1,287,401
6% 6/15/06 (MBIA Insured) Aaa 2,305,000 2,544,812
Series B, 7% 6/1/24 (MBIA Insured)
(Pre-Refunded to 6/1/04 @ 102) (d) Aaa 1,000,000 1,161,730
Southern Berkshire Reg. School Dist.
7% 4/15/11 (MBIA Insured) (Pre-Refunded
to 4/15/03 @ 100) (d)(e) Aaa 4,000,000 4,477,120
Taunton Elec. Rev. 8% 2/1/05 A3 1,000,000 1,192,760
Taunton Ind. Dev. Fing. Auth. Ind. Dev. Rev. Rfdg.
(Pepsi Cola Metropolitan Bottle Co. Proj.)
5.65% 8/1/12 A1 2,400,000 2,501,904
Tewksbury Gen. Oblig.
Unltd. Tax (Various Purp.)
9.60% 12/15/98 A2 595,000 607,269
Westfield Muni. Purp. Loan:
5% 9/1/10 (FSA Insured) Aaa 745,000 757,352
5% 9/1/12 (FSA Insured) Aaa 745,000 748,442
5% 9/1/13 (FSA Insured) Aaa 750,000 751,245
Winchendon Unltd. Tax School Proj. Loan
6.05% 3/15/12 (AMBAC Insured) Aaa 1,275,000 1,367,272
Woods Hole Martha's Vineyard & Nantucket
Steamship Rfdg. Series A, 5.125% 3/1/11 Aa3 1,100,000 1,122,451
Worcester Gen. Oblig. Rfdg. (Muni. Purp.)
Series G, 5.50% 7/1/03 (MBIA Insured) Aaa 3,430,000 3,618,273
1,196,536,676
PUERTO RICO - 2.3%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Rfdg.:
Series W, 6.50% 7/1/05 (MBIA Insured) Aaa 9,000,000 10,154,700
Series Y, 6.50% 7/1/06 (MBIA Insured) Aaa 4,000,000 4,562,000
Series AA, 5.375% 7/1/14 (MBIA Insured) Aaa 3,500,000 3,631,600
Puerto Rico Gen. Oblig. Rfdg.
(Pub. Impt.) 3% 7/1/06 (MBIA Insured) Aaa 10,000,000 9,067,200
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
PUERTO RICO - CONTINUED
Puerto Rico Ind. Med. & Envir. Poll. Cont. Facs.
Fing. Auth. Rev. (Motorola, Inc. Proj.)
Series A, 6.75% 1/1/14 (g) Aa3 $ 1,500,000 $ 1,646,045
29,061,545
TOTAL MUNICIPAL BONDS
(Cost $1,151,794,828) 1,225,598,221
MUNICIPAL NOTES (B) - 4.0%
MASSACHUSETTS - 4.0%
Massachusetts Health & Edl. Facs. Auth. Rev., VRDN:
(Cap. Asset Prog.):
Series 1985 D, 3.55% (MBIA Insured)
(BPA Credit Swiss First Boston) VMIG 1 6,850,000 6,850,000
Series E, 3.65%, LOC First
Nat'l. Bank Chicago VMIG 1 600,000 600,000
(Hallmark Health Sys.) Series 1998 B,
3.50% (BPA Fleet Nat'l. Bank) VMIG 1 7,500,000 7,500,000
(Partners Healthcare Sys.) Series P-2,
3.55% (FSA Insured) (BPA Bayerische
Landesbank Girozentrale, Morgan
Guaranty Trust Co., NY) VMIG 1 1,500,000 1,500,000
Massachusetts Hsg. Fin. Agcy. Rev. Rfdg.
(Multi-Family) Series 1995 A, 3.65%
(BPA Republic Bank of New York) VRDN A-1+ 16,300,000 16,300,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev. Rfdg.
(New England Pwr. Co. Proj.)
Series 1992 B, 3.60%, VRDN P-1 1,000,000 1,000,000
Massachusetts Ind. Fin. Agcy. Resource Recovery
Rev. (Ogden Martin Co. Haverhill Proj.) VRDN:
Series 1986 B, 3.55%, LOC Union
Bank of Switzerland (c) VMIG 1 5,700,000 5,700,000
Series 1992 A, 3.60%, LOC Union
Bank of Switzerland VMIG 1 2,000,000 2,000,000
Massachusetts Ind. Fin. Agcy. Rev. Rfdg.
(Showa Women's Inst. of Boston Proj.)
Series 1994, 3.60%, LOC Fuji Bank, VRDN VMIG 1 6,800,000 6,800,000
Massachusetts Wtr. Resources Auth. Multi-Modal
Sub. Gen. Rev., VRDN:
Series 1997-A, 3.65% (Liquidity Facility Bank
of Nova Scotia) (AMBAC Insured) (c) VMIG 1 1,000,000 1,000,000
Series 1997-B, 3.40% (AMBAC Insured)
(BPA Bank of Nova Scotia) VMIG 1 2,000,000 2,000,000
TOTAL MUNICIPAL NOTES
(Cost $51,250,000) 51,250,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,203,044,828) $ 1,276,848,221
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
30 Municipal Bond Contracts Sept. 98 $ 3,720,000 $ (12,211)
60 US Treasury Contracts Sept. 98 7,355,625 (12,548)
$ (24,759)
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 0.9%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
(a) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(c) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(d) Security collateralized by an amount sufficient to pay interest
and principal.
(e) A portion of the security was pledged to cover margin requirements
for futures contracts. At the period end, the value of securities
pledged amounted to $705,146.
(f) 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.
(g) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
At the period end, the value of these securities amounted to
$1,646,045 or 0.1% of net assets.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 80.0% AAA, AA, A 74.0%
Baa 5.6% BBB 3.4%
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 Moody's or S&P amounted to 5.1%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
General Obligation 26.0%
Health Care 19.5
Water & Sewer 10.6
Education 10.4
Escrowed/Pre-Refunded 9.2
Housing 6.3
Electric Revenue 6.0
Transportation 5.6
Others (individually less than 5%) 6.4
TOTAL 100.0%
INCOME TAX INFORMATION
At July 31, 1998, the aggregate cost of investment securities for
income tax purposes was $1,203,044,828. Net unrealized appreciation
aggregated $73,803,393, of which $74,551,765 related to appreciated
investment securities and $748,372 related to depreciated investment
securities.
At January 31, 1998, the fund had a capital loss carryforward of
approximately $694,000 all of which will expire on January 31, 2004.
At January 31, 1998, the fund was required to defer approximately
$8,044,000 of losses on futures contracts.
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1998 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (COST $1,203,044,828) - $ 1,276,848,221
SEE ACCOMPANYING SCHEDULE
CASH 55,163
RECEIVABLE FOR FUND SHARES SOLD 691,773
INTEREST RECEIVABLE 15,241,331
TOTAL ASSETS 1,292,836,488
LIABILITIES
PAYABLE FOR FUND SHARES REDEEMED $ 2,037,606
DISTRIBUTIONS PAYABLE 1,104,358
ACCRUED MANAGEMENT FEE 407,998
PAYABLE FOR DAILY VARIATION ON FUTURES CONTRACTS 180
OTHER PAYABLES AND ACCRUED EXPENSES 169,507
TOTAL LIABILITIES 3,719,649
NET ASSETS $ 1,289,116,839
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 1,222,225,544
ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) (6,887,339)
ON INVESTMENTS
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 73,778,634
NET ASSETS, FOR 108,746,301 SHARES OUTSTANDING $ 1,289,116,839
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $11.85
SHARE ($1,289,116,839 (DIVIDED BY) 108,746,301 SHARES)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1998 (UNAUDITED)
INTEREST INCOME $ 33,557,561
EXPENSES
MANAGEMENT FEE $ 2,403,861
TRANSFER AGENT FEES 557,230
ACCOUNTING FEES AND EXPENSES 188,364
NON-INTERESTED TRUSTEES' COMPENSATION 2,395
CUSTODIAN FEES AND EXPENSES 36,310
REGISTRATION FEES 12,515
AUDIT 21,733
LEGAL 9,818
TOTAL EXPENSES BEFORE REDUCTIONS 3,232,226
EXPENSE REDUCTIONS (21,986) 3,210,240
NET INTEREST INCOME 30,347,321
REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:
INVESTMENT SECURITIES 2,129,277
FUTURES CONTRACTS (20,712) 2,108,565
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:
INVESTMENT SECURITIES (13,557,973)
FUTURES CONTRACTS (263,985) (13,821,958)
NET GAIN (LOSS) (11,713,393)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 18,633,928
FROM OPERATIONS
OTHER INFORMATION
EXPENSE REDUCTIONS $ 7,195
CUSTODIAN CREDITS
TRANSFER AGENT CREDITS 14,791
$ 21,986
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JULY 31, 1998 JANUARY 31,
(UNAUDITED) 1998
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 30,347,321 $ 58,773,475
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) 2,108,565 4,405,274
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) (13,821,958) 49,081,264
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 18,633,928 112,260,013
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS (30,347,321) (58,773,475)
FROM NET INTEREST INCOME
FROM NET REALIZED GAIN - (203,660)
TOTAL DISTRIBUTIONS (30,347,321) (58,977,135)
SHARE TRANSACTIONS 191,351,479 261,113,021
NET PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS 23,774,013 45,288,591
COST OF SHARES REDEEMED (146,446,523) (255,383,961)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 68,678,969 51,017,651
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 56,965,576 104,300,529
NET ASSETS
BEGINNING OF PERIOD 1,232,151,263 1,127,850,734
END OF PERIOD $ 1,289,116,839 $ 1,232,151,263
OTHER INFORMATION
SHARES
SOLD 16,124,796 22,418,980
ISSUED IN REINVESTMENT OF DISTRIBUTIONS 2,004,095 3,892,109
REDEEMED (12,350,564) (22,025,592)
NET INCREASE (DECREASE) 5,778,327 4,285,497
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED JANUARY 31,
JULY 31, 1998
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 11.970 $ 11.430 $ 11.700 $ 10.800 $ 12.210 $ 11.750
BEGINNING OF PERIOD
INCOME FROM INVESTMENT .288 .593 .605 .652 .700 .714
OPERATIONS
NET INTEREST INCOME
NET REALIZED AND (.120) .542 (.266) .902 (1.180) .720
UNREALIZED GAIN
(LOSS)
TOTAL FROM INVESTMENT .168 1.135 .339 1.554 (.480) 1.434
OPERATIONS
LESS DISTRIBUTIONS
FROM NET INTEREST (.288) (.593) (.605) (.654) D (.700) (.714)
INCOME
FROM NET - (.002) (.004) - (.230) (.230)
REALIZED GAIN
IN EXCESS OF NET - - - - - (.030)
REALIZED GAIN
TOTAL DISTRIBUTIONS (.288) (.595) (.609) (.654) (.930) (.974)
NET ASSET VALUE, $ 11.850 $ 11.970 $ 11.430 $ 11.700 $ 10.800 $ 12.210
END OF PERIOD
TOTAL RETURN B, C 1.42% 10.21% 3.06% 14.76% (3.79)% 12.57%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, $ 1,289,117 $ 1,232,151 $ 1,127,851 $ 1,170,207 $ 1,036,181 $ 1,387,410
END OF PERIOD
(000 OMITTED)
RATIO OF EXPENSES TO .52% A .53% .56% .55% .54% .54%
AVERAGE NET ASSETS
RATIO OF EXPENSES TO .52% A .53% .56% .54% E .54% .54%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS
RATIO OF NET INTEREST 4.89% A 5.10% 5.29% 5.80% 6.29% 5.93%
INCOME TO AVERAGE
NET ASSETS
PORTFOLIO TURNOVER RATE 14% A 21% 44% 33% 22% 40%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D THE AMOUNT SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK
TO TAX DIFFERENCES.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
SPARTAN 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,
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 year and life of fund total returns would have
been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
SPARTAN MA MUNICIPAL MONEY MARKET 1.53% 3.15% 15.31% 24.01%
MASSACHUSETTS TAX-FREE 1.43% 3.00% 14.77% N/A
MONEY MARKET FUNDS AVERAGE
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on March 4, 1991. For example, if you
had 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 Massachusetts tax-free money market funds with
similar objectives tracked by IBC Financial Data, Inc. The past six
months average represents a peer group of 11 mutual funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
SPARTAN MA MUNICIPAL MONEY MARKET 3.15% 2.89% 2.94%
MASSACHUSETTS TAX-FREE 3.00% 2.80% N/A
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
8/3/98 4/27/98 2/2/98 11/3/97 7/28/97
SPARTAN MASSACHUSETTS 3.14% 3.46% 3.04% 3.17% 3.17%
MUNICIPAL MONEY
MARKET FUND
MASSACHUSETTS 2.89% 3.33% 2.87% 3.02% 3.05%
TAX-FREE MONEY MARKET
FUNDS AVERAGE
SPARTAN MASSACHUSETTS 5.58% 6.14% 5.40% 5.63% 5.63%
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 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 1998 federal and state
income tax rate of 43.68%. A portion of the fund's income may be
subject to the Federal 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)
SPARTAN MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Scott Orr, Portfolio Manager of Spartan
Massachusetts Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE ENVIRONMENT LIKE OVER THE PAST SIX MONTHS?
A. Investors spent much of the period trying to determine whether the
Federal Reserve Board would raise the fed funds rate - the rate banks
charge each other for overnight loans - as a way to slow the economy
and head off inflation. The economy continued to chug along at a
fairly strong pace and unemployment numbers were incredibly low on an
historical basis, dropping to 4.3% in April and ticking up only to
4.5% in July. But despite this period of continuing expansion, wage
pressures - which can arise during periods of low unemployment when
employers hike pay to attract or retain employees - did not emerge and
inflation remained benign. Under normal circumstances, the possibility
of future inflation created by this tight labor market likely would
have led the Fed to raise rates. But the economic and political
turmoil in Asia kept the Fed on the sidelines during the period. In
fact, the fed funds rate has remained unchanged at 5.5% for more than
a year now.
Q. WHY WAS THE ASIAN TURMOIL ABLE TO OFFSET U.S. ECONOMIC STRENGTH IN
THE FED'S DECISION ON MONETARY POLICY?
A. For two reasons. The Fed didn't want to make the situation in Asia
worse by raising short-term interest rates here. Higher U.S. interest
rates would likely strengthen the U.S. dollar even more versus Asian
currencies, which could further harm their financial markets. In other
words, the Fed was asking itself, "Why make the Asian markets more
volatile by raising rates in the U.S.?" The other factor was the
possibility that the Asian turmoil would translate into a reduction of
U.S. net exports, which would likely have a dampening effect of its
own on the U.S. economy and inflation.
Q. WHAT WAS THE FUND'S STRATEGY DURING THIS PERIOD?
A. Given the uncertainty of the interest-rate environment, the fund's
average maturity started the period at 54 days, a relatively neutral
stance. From time to time during the period, I purchased one-year
fixed-rate notes when I felt that their yields incorporated the
possibility of a Fed interest-rate increase. But whenever the
disruptions in Asia heated up, the yields on fixed-rate notes offered
less value because the market no longer expected the Fed to act.
During these times, I focused more on short-term variable-rate
securities, whose yields move up and down with rates as they change in
the market. In June and July, increased issuance of fixed-rate notes
by municipalities in Massachusetts boosted the supply of these
securities, causing their yields to increase once again. I purchased
the notes to take advantage of their higher yields, extending the
fund's average maturity out to 65 days at the end of the period,
slightly longer than the maturities of competing funds.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on July 31, 1998, was 3.14%, compared to
3.01% six months ago. The more recent seven-day yield was the
equivalent of a 5.58% taxable rate of return for Massachusetts
investors in the 43.68% combined state and federal income tax bracket.
Through July 31, 1998, the fund's six-month total return was 1.53%,
compared to 1.43% for the Massachusetts tax-free money market funds
average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. There's one important wildcard: what happens in Asia. If we
continue to see the same level of turmoil there, I believe the Fed may
be obligated to stay on the sidelines, keeping interest rates
unchanged. There's a lot of risk that a rate increase in the U.S.
could cause increased volatility in global markets. Without a rate
increase, the U.S. economy still might slow as a result of fewer U.S.
exports. In this case, the Asian situation would do the Fed's job for
it. The strength of the U.S. economy, offset by the Asian situation,
has left the Fed at an impasse. And, although at this point I believe
the next Fed move could be to raise rates, I don't believe it will be
any time soon. If events continue to worsen on the international
front, the outlook would be much more uncertain.
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: 426
TRADING SYMBOL: FMSXX
START DATE: March 4, 1991
SIZE: as of July 31, 1998,
more than $843 million
MANAGER: Scott Orr, since
1997; manager, various
Fidelity and Spartan municipal
money market funds; joined
Fidelity in 1989
(checkmark)
SPARTAN MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/98 1/31/98 7/31/97
0 - 30 57 68 68
31 - 90 21 14 17
91 - 180 8 8 5
181 - 397 14 10 10
WEIGHTED AVERAGE MATURITY
7/31/98 1/31/98 7/31/97
SPARTAN MASSACHUSETTS 65 DAYS 54 DAYS 46 DAYS
MUNICIPAL MONEY MARKET FUND
MASSACHUSETTS TAX-FREE 59 DAYS 50 DAYS 47 DAYS
MONEY MARKET FUNDS AVERAGE*
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF JULY 31, 1998 AS OF JANUARY 31, 1998
ROW: 1, COL: 1, VALUE: 47.0
ROW: 1, COL: 2, VALUE: 19.0
ROW: 1, COL: 3, VALUE: 4.0
ROW: 1, COL: 4, VALUE: 28.0
ROW: 1, COL: 5, VALUE: 2.0
VARIABLE RATE DEMAND
NOTES (VRDNS) 57%
COMMERCIAL PAPER
(INCLUDING CP MODE) 21%
TENDER BONDS 2%
MUNICIPAL
NOTES 19%
OTHER 1%
VARIABLE RATE DEMAND
NOTES (VRDNS) 48%
COMMERCIAL PAPER
(INCLUDING CP MODE) 19%
TENDER BONDS 4%
MUNICIPAL
NOTES 28%
OTHER 1%
ROW: 1, COL: 1, VALUE: 55.0
ROW: 1, COL: 2, VALUE: 21.0
ROW: 1, COL: 3, VALUE: 3.0
ROW: 1, COL: 4, VALUE: 19.0
ROW: 1, COL: 5, VALUE: 2.0
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
SPARTAN MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
INVESTMENTS JULY 31, 1998 (UNAUDITED)
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 96.2%
Agawam Gen. Oblig. BAN 4% 2/5/99 $ 3,730,000 $ 3,736,559
Barnstable Gen. Oblig. BAN:
3.80% 10/23/98 10,000,000 10,002,772
4.25% 10/23/98 4,090,000 4,093,259
Boston City Hosp. Participating VRDN, Series BTP-279,
3.55% (Liquidity Facility Bankers Trust Co.) (c) 3,900,000 3,900,000
Boston Gen. Oblig. Bonds Series 1998 A,
4.50% 1/1/99 (FGIC Insured) 1,500,000 1,505,383
Boston Ind. Rev. (New Boston Seafood Ctr.)
Series 1997, 3.75%, LOC BankBoston, NA, VRDN (b) 600,000 600,000
Boston Wtr. & Swr. Participating VRDN, Series 1996 SG-75,
3.70% (Liquidity Facility Societe Generale, France) (c) 5,100,000
5,100,000
Brockton Area Transit Auth. Gen. Oblig. RAN 4% 8/6/99 2,900,000
2,908,917
Brookline Gen. Oblig. BAN:
4% 12/16/98 4,000,000 4,003,744
4% 6/4/99 9,600,000 9,621,508
Cohasset Gen. Oblig. BAN 3.75% 10/1/98 2,400,000 2,400,634
Everett Gen. Oblig. BAN 4% 3/18/99 (BPA Fleet Nat'l. Bank) 2,000,000
2,004,780
Fall River Gen. Oblig. BAN 4.25% 8/14/98
(BPA Fleet Nat'l. Bank) 1,480,000 1,480,136
Gloucester Gen. Oblig. BAN 4% 8/7/98 16,881,323 16,881,601
Hamilton-Wenham Reg. School Dist. Gen Oblig. BAN:
4% 5/7/99 5,881,000 5,892,962
4% 5/21/99 3,200,000 3,205,136
Hingham Gen. Oblig. BAN 3.75% 9/30/98 3,700,000 3,701,192
Holliston Gen. Oblig. BAN 4.25% 10/15/98 2,000,000 2,001,554
Hopkinton Gen. Oblig. BAN:
4% 9/9/98 2,400,000 2,400,505
4.25% 9/9/98 2,618,000 2,618,919
Hudson Gen. Oblig. BAN 4% 6/24/99 2,800,000 2,806,462
Ipswich Gen. Oblig. BAN 4% 6/1/99 12,700,000 12,739,637
Kingston Gen. Oblig. BAN 4.25% 11/25/98 6,720,000 6,729,012
Mansfield Gen. Oblig. BAN 4.25% 11/19/98 2,000,000 2,002,200
Marlborough Gen. Oblig. BAN 4% 6/25/99 5,315,400 5,331,823
Massachusetts Bay Transit Auth.:
Bonds Series 1984 A, 3.40%, tender 9/1/98,
LOC State Street Bank & Trust Co., Boston 7,200,000 7,200,000
Participating VRDN, Series SG-25, 3.70%
(Liquidity Facility Societe Generale, France) (c) 8,385,000
8,385,000
RAN Series 1998 A, 4.25% 2/26/99 17,000,000 17,061,962
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Bay Transit Auth.: - continued
Series C, CP:
3.55% 9/4/98, LOC Westdeutsche
Landesbank Girozentrale $ 1,600,000 $ 1,600,000
3.55% 10/8/98, LOC Westdeutsche
Landesbank Girozentrale 5,800,000 5,800,000
Massachusetts Edl. Fing. Auth. Ed. Loan Rev. Series 1998,
Issue G, 3.55% (Bayerische Landesbank
Girozentrale Guaranteed) VRDN (b) 7,200,000 7,200,000
Massachusetts Gen. Oblig. Consolidated Loan:
Bonds Series A, 4% 1/1/99 3,950,000 3,956,786
Participating VRDN (c):
Series 1998 B, 3.65%
(Liquidity Facility Nat'l. Westminster Bank, PLC) 4,475,000
4,475,000
Series PA-160, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 2,080,000 2,080,000
Series PA-164, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 7,260,000 7,260,000
Massachusetts Gen. Oblig.:
Participating VRDN (c):
Rfdg.:
Series BTP-258, 3.55% (Liquidity Facility
Bankers Trust Co.) 4,800,000 4,800,000
Series BTP-259, 3.60% (Liquidity Facility
Bankers Trust Co.) 3,800,000 3,800,000
Series PA-363, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 4,920,000 4,920,000
Series 1993 I, 3.67%
(Liquidity Facility Citibank, New York, NA) 7,800,000 7,800,000
Series 93-2, 3.67% (Liquidity Facility
State Street Bank & Trust Co., Boston) 14,245,019 14,245,019
Series 96C2101, 3.67% (Liquidity Facility
Citibank, New York, NA) 2,800,000 2,800,000
Series 97C2101, 3.64% (Liquidity Facility
Citibank, New York, NA) 3,900,000 3,900,000
Series 97C2103, 3.64% (Liquidity Facility
Citibank, New York, NA) 5,700,000 5,700,000
Series BTP-214, 3.55% (Liquidity Facility
Bankers Trust Co.) 8,815,000 8,815,000
Series PT-1024, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 4,430,000 4,430,000
Series SG-47, 3.70% (Liquidity Facility
Societe Generale, France) 4,200,000 4,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Gen. Oblig.: - continued
Series 1997 B, 3.40% (BPA Landesbank
Hessen-Thuringen) VRDN $ 37,300,000 $ 37,300,000
Massachusetts Health & Ed. Facs. Auth. Rev.:
Bonds:
(Boston Univ.) Series H, 3.70%, tender 9/15/98,
LOC Landesbank Hessen-Thuringen 15,900,000 15,900,000
(Harvard Univ.):
3.40% 9/2/98, CP mode 2,200,000 2,200,000
3.60% 9/8/98, CP mode 2,100,000 2,100,000
3.55% 9/10/98, CP mode 8,600,000 8,600,000
3.45% 9/17/98, CP mode 4,000,000 4,000,000
Participating VRDN (c):
Series 1997 Y, 3.60%
(Liquidity Facility First Union Nat'l. Bank (NC)) 4,435,000
4,435,000
Series SG-27, 3.70% (Liquidity Facility
Societe Generale, France) 3,935,000 3,935,000
VRDN:
(Brandeis Univ.) Series H, 3.50%, LOC Fleet Nat'l. Bank 3,585,000
3,585,000
(Cap. Asset Prog.):
Series 1985 D, 3.50% (MBIA Insured)
(BPA Credit Swiss First Boston) 3,800,000 3,800,000
Series E, 3.60%, LOC First Nat'l. Bank of Chicago 9,700,000
9,700,000
(Partners Healthcare Sys.):
Series P-1, 3.40% (FSA Insured) (Liquidity Facility
Bayerische Landesbank Girozentrale) 12,900,000 12,900,000
Series P-2, 3.55% (FSA Insured) (Liquidity Facility
Bayerische Landesbank Girozentrale) 9,400,000 9,400,000
Massachusetts Higher Ed. Rev. (Southern New England School
of Law) 3.50%, LOC Fleet Nat'l. Bank, VRDN 1,500,000 1,500,000
Massachusetts Hsg. Fin. Agcy:
Insured Rental Hsg. Participating VRDN (c):
Series 1998 B, 3.72% (Liquidity Facility
Caisse des Depots et Consignations) (b) 4,980,000 4,980,000
Series PA-370, 3.80% (Liquidity Facility
Merrill Lynch & Co., Inc.) (b) 2,400,000 2,400,000
Series PT-33, 3.80% (Liquidity Facility
Banque Nationale de Paris) (b) 1,430,000 1,430,000
Series PT-212, 3.80% (Liquidity Facility
Bayerische Landesbank Girozentrale) (b) 3,730,000 3,730,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Hsg. Fin. Agcy: - continued
Multi-Family Hsg. Rev., VRDN:
Rfdg. (Hbr. Point Apt.) Series 1995 A, 3.65% (GNMA
Guaranteed) (BPA Republic Bank of New York) $ 3,700,000 $ 3,700,000
(Princeton Crossing Proj.) Series 1996, 3.60%,
LOC General Elec. Capital Corp. (b) 100,000 100,000
Participating VRDN, Series PA-132, 3.80%
(Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c) 1,000,000
1,000,000
Single Family Hsg. Rev.:
Bonds:
Series 50, 3.75%, tender 6/1/99 (Liquidity Facility
FGIC Capital Markets) 4,935,000 4,935,000
Series 94C2101, 3.75%, tender 9/1/98 (Liquidity Facility
Citibank, New York, NA) (b)(c)(d) 3,080,000 3,080,000
Participating VRDN, Series PT-42, 3.78% (Liquidity Facility
Commerzbank, AG) 1,465,000 1,465,000
Massachusetts Ind. Fin. Agcy. Health Care Facs. Auth.
(Jewish Geriatric Svs.) 3.40%,
LOC BankBoston, NA, VRDN (b) 1,900,000 1,900,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev.:
Participating VRDN (c):
Series SG-56, 3.70% (Liquidity Facility
Societe Generale, France) 7,025,000 7,025,000
Series SG-108, 3.70% (Liquidity Facility
Societe Generale, France) 3,755,000 3,755,000
VRDN:
(Abbott Box Co.) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 2,425,000 2,425,000
(Assumption College) Series 1998, 3.50%,
LOC Fleet Nat'l. Bank 2,750,000 2,750,000
(BBB Esq. LLC) Series 1996, 3.70%,
LOC BankBoston, NA (b) 800,000 800,000
(Baker School Specialty Co. Inc.) Series 1996,
3.65%, LOC BankBoston, NA 2,200,000 2,200,000
(Barker Steel Co.) Series 1995, 3.55%, LOC State Street
Bank & Trust Co., Boston (b) 800,000 800,000
(Brady Enterprises) Series 1996, 3.60%,
LOC Fleet Nat'l. Bank 1,550,000 1,550,000
(Buckingham Browne Nichols School) Series 1997,
3.40%, LOC State Street Bank & Trust Co., Boston 3,000,000
3,000,000
(Canton/Cedar Realty LLC) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 1,400,000 1,400,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev.: - continued
VRDN:
(Carand Realty Trust) Series 1997, 3.55%,
LOC State Street Bank & Trust Co., Boston (b) $ 1,000,000 $
1,000,000
(Decas Cranberry Proj.) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 2,900,000 2,900,000
(Dover Instrument Corp.) Series 1997, 3.75%,
LOC Fleet Nat'l. Bank (b) 2,000,000 2,000,000
(Eastern Nazarene College) Series 1997, 3.35%,
LOC State Street Bank & Trust Co., Boston 1,750,000 1,750,000
(Fessenden School Issue) Series 1997, 3.50%,
LOC Fleet Nat'l. Bank 3,000,000 3,000,000
(General Signal Proj.) Series 1984, 3.55%,
LOC Wachovia Bank, NA 1,900,000 1,900,000
(Gordon College Issue) Series 1997, 3.35%,
LOC State Street Bank & Trust Co., Boston 2,400,000 2,400,000
(Governor Dummer Academy) Series 1996, 3.35%,
LOC State Street Bank & Trust Co., Boston 1,200,000 1,200,000
(Groton School Issue) Series 1998 B, 3.45%
(Liquidity Facility Fleet Nat'l. Bank) 8,000,000 8,000,000
(Hazen Paper Proj.) Series1996, 3.65%,
LOC BankBoston, NA (b) 800,000 800,000
(Heat Fab Inc.) Series1996, 3.65%,
LOC BankBoston, NA (b) 2,200,000 2,200,000
(Lightlife Foods, Inc.) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 2,650,000 2,650,000
(Lower Mills Associates II LP) Series 1995,
3.45%, LOC BankBoston, NA 953,000 953,000
(Mary Ann Morse Nursing Home):
Series 1994 A, 3.80%, LOC ABN-AMRO Bank, NV 3,200,000 3,200,000
Series 1994 B, 3.55%, LOC ABN-AMRO Bank, NV 4,600,000 4,600,000
(Nutramax Products):
Series 1996 A, 3.55%, LOC State Street
Bank & Trust Co., Boston (b) 900,000 900,000
Series 1996 B, 3.55%, LOC State Street
Bank & Trust Co., Boston (b) 2,700,000 2,700,000
(Parker-Hannifin Corp. Proj.) Series 1997, 3.65%,
LOC Wachovia Bank, NA 1,800,000 1,800,000
(Riverdale Mills Corp.) Series 1995, 3.65%,
LOC BankBoston, NA (b) 1,900,000 1,900,000
(S-N Bedding Co., Inc.) Series 1998 A, 3.65%,
LOC BankBoston, NA 5,000,000 5,000,000
(Sencorp Systems, Inc. Proj.) Series 1998 A,
3.70%, LOC BankBoston, NA (b) 2,400,000 2,400,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev.: - continued
VRDN:
(Society for the Prevention of Cruelty to Animals)
Series 1997, 3.45%, LOC Fleet Nat'l. Bank $ 3,000,000 $ 3,000,000
(United Plastics) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 2,000,000 2,000,000
(Youville Place Inc.) Series 1996, 3.60%
(AMBAC Insured) (BPA Fleet Nat'l. Bank) 4,500,000 4,500,000
(346 Univ. LLC) Series 1996, 3.65%,
LOC BankBoston, NA (b) 1,300,000 1,300,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev. Rfdg.
Bonds (New England Pwr. Co. Proj.):
Series 1992:
3.65% 8/13/98, CP mode 6,900,000 6,900,000
3.65% 8/14/98, CP mode 9,250,000 9,250,000
Series 1992-B, 3.65% 8/14/98, CP mode 9,300,000 9,300,000
Series 1993-A:
3.65% 8/12/98, CP mode 2,000,000 2,000,000
3.65% 8/13/98, CP mode 6,200,000 6,200,000
3.65% 8/14/98, CP mode 1,000,000 1,000,000
Series 1993-B:
3.65% 8/12/98, CP mode 3,300,000 3,300,000
3.65% 8/13/98, CP mode 7,550,000 7,550,000
Massachusetts Ind. Fin. Agcy. Resource Recovery Rev.
(Ogden-Haverhill Proj.) Series 1986 B, 3.55%,
LOC Union Bank of Switzerland, VRDN (b) 8,000,000 8,000,000
Massachusetts Muni. Wholesale Elec. Co. Pwr. Rev.
Series A, 3.50% 9/8/98, LOC Fleet Nat'l. Bank, CP 5,800,000
5,800,000
Massachusetts Port Auth. Rev.:
Participating VRDN, Series SGA-64, 3.74%
(Liquidity Facility Societe Generale, France) (b)(c) 3,405,000
3,405,000
CP:
Series 1996, 3.40% 10/7/98, LOC Westdeutsche
Landesbank Girozentrale 5,200,000 5,200,000
Series 1997, 3.40% 10/6/98, LOC Westdeutsche
Landesbank Girozentrale (b) 7,000,000 7,000,000
Series 1997, 3.40% 10/7/98, LOC Westdeutsche
Landesbank Girozentrale (b) 2,400,000 2,400,000
Massachusetts Tpk. Auth. Participating VRDN (c):
Series 1997 N, 3.70% (Liquidity Facility
Bank of America Nat'l. Trust & Savings, NA) 4,000,000 4,000,000
Series PA-181, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 2,275,000 2,275,000
Series PT-135, 3.78% (Liquidity Facility
Banco Santander, SA) 21,440,000 21,440,000
Series PT-1009, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 5,550,000 5,550,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Wtr. Resource Auth.:
CP:
3.55% 9/1/98, LOC Morgan Guaranty Trust Co., NY $ 6,000,000 $
6,000,000
3.40% 9/2/98, LOC Morgan Guaranty Trust Co., NY 4,300,000
4,300,000
3.45% 9/4/98, LOC Morgan Guaranty Trust Co., NY 1,000,000
1,000,000
3.60% 9/4/98, LOC Morgan Guaranty Trust Co., NY 7,300,000
7,300,000
3.40% 9/8/98, LOC Morgan Guaranty Trust Co., NY 1,000,000
1,000,000
3.45% 9/8/98, LOC Morgan Guaranty Trust Co., NY 2,400,000
2,400,000
3.55% 9/8/98, LOC Morgan Guaranty Trust Co., NY 2,000,000
2,000,000
3.65% 9/8/98, LOC Morgan Guaranty Trust Co., NY 4,000,000
4,000,000
3.50% 9/9/98, LOC Morgan Guaranty Trust Co., NY 3,000,000
3,000,000
3.55% 9/10/98, LOC Morgan Guaranty Trust Co., NY 4,100,000
4,100,000
3.55% 9/11/98, LOC Morgan Guaranty Trust Co., NY 5,550,000
5,550,000
3.60% 9/14/98, LOC Morgan Guaranty Trust Co., NY 1,200,000
1,200,000
3.65% 9/15/98, LOC Morgan Guaranty Trust Co., NY 1,700,000
1,700,000
3.50% 9/16/98, LOC Morgan Guaranty Trust Co., NY 5,100,000
5,100,000
3.70% 10/7/98, LOC Morgan Guaranty Trust Co., NY 4,000,000
4,000,000
3.45% 10/15/98, LOC Morgan Guaranty Trust Co., NY 3,200,000
3,200,000
3.65% 11/5/98, LOC Morgan Guaranty Trust Co., NY 1,500,000
1,500,000
3.45% 11/10/98, LOC Morgan Guaranty Trust Co., NY 10,300,000
10,300,000
3.55% 12/1/98, LOC Morgan Guaranty Trust Co., NY 4,000,000
4,000,000
Participating VRDN (c):
Series 1995 SG-17, 3.70%, (Liquidity Facility
Societe Generale, France) 3,440,000 3,440,000
Series 1996 SG-63 3.70% (Liquidity Facility
Societe Generale, France) 1,000,000 1,000,000
Series BTP-297, 3.55% (Liquidity Facility
Bankers Trust Co.) 5,941,500 5,941,500
(Multi-Modal Subordinated Gen. Rev.)
Series 1997-B, 3.40% (Liquidity Facility
Bank of Nova Scotia) (AMBAC insured) VRDN 16,200,000 16,200,000
Merrimack Valley Reg. Transit Auth. Gen. Oblig.
RAN 4% 6/18/99 2,950,000 2,955,696
Middleborough Gen. Oblig. BAN 4% 4/14/99 5,000,000 5,012,685
Natick Gen. Oblig. BAN:
3.75% 8/7/98 4,765,000 4,765,104
3.75% 1/8/99 3,789,000 3,792,154
New Bedford Gen. Oblig. BAN 4.10% 4/14/99
(BPA Fleet Nat'l. Bank) 4,000,000 4,013,493
Newton Gen. Oblig. BAN 3.75% 3/25/99 2,297,000 2,300,812
North Andover Gen. Oblig. BAN 3.75% 8/19/98 3,810,000 3,810,239
Northampton Gen. Oblig. BAN 4.25% 12/22/98 2,497,000 2,501,149
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Northborough Gen. Oblig. BAN 4% 2/2/99 $ 2,170,000 $ 2,174,068
Peabody Gen. Oblig. BAN 3.75% 10/16/98 1,678,000 1,678,589
Pioneer Valley Reg. Transit Auth. Gen. Oblig.
RAN 4% 8/6/99 6,800,000 6,817,612
Plymouth Gen. Oblig. BAN 3.75% 10/22/98 3,400,000 3,401,655
Quincy Gen. Oblig. BAN 4% 5/21/99 2,000,000 2,003,353
Reading Gen. Oblig. BAN 4% 1/14/99 2,000,000 2,003,036
Rockport Gen. Oblig. BAN 3.75% 11/3/98 2,615,000 2,616,204
Seekonk Gen. Oblig. BAN 4.25% 11/19/98 3,500,000 3,504,248
Southeastern Reg. Transit Auth. Gen. Oblig.
RAN 4.25% 9/18/98 2,400,000 2,400,994
Springfield Gen. Oblig. BAN:
4.40% 9/4/98 (BPA Fleet Nat'l. Bank) 2,800,000 2,801,253
4.25% 11/20/98 (BPA Fleet Nat'l. Bank) 8,800,000 8,810,028
4% 6/25/99 (BPA Fleet Nat'l. Bank) 1,170,000 1,173,009
4% 7/15/99 (BPA Fleet Nat'l. Bank) 6,750,000 6,771,491
Sutton Gen. Oblig. BAN 4% 4/28/99 3,750,000 3,757,509
Taunton Gen. Oblig. BAN 4% 5/7/99 2,000,000 2,003,191
Uxbridge Gen. Oblig. BAN 4% 1/15/99 3,950,000 3,957,781
Wakefield Gen. Oblig. BAN 4% 4/21/99 3,005,000 3,013,263
Walpole Gen. Oblig. BAN:
Series 1997, 4% 12/16/98 3,815,000 3,816,718
3.85% 12/16/98 2,525,000 2,526,622
Watertown Gen. Oblig. BAN 4% 10/28/98 3,840,000 3,842,701
Westford Gen. Oblig. BAN 4% 4/15/99 2,400,000 2,406,447
Weston Gen. Oblig. BAN:
3.75% 9/30/98 2,700,000 2,701,114
4% 9/30/98 3,010,000 3,010,768
Westwood Gen. Oblig. BAN 3.75% 12/17/98 2,500,000 2,501,539
Woods Hole Marthas Vineyard & Nantucket Steamship Auth.
Gen. Oblig. BAN 3.75% 11/16/98 2,000,000 2,000,942
Wrentham Gen. Oblig. BAN 4.15% 3/16/99 2,735,000 2,741,870
808,319,299
PUERTO RICO - 3.8%
Puerto Rico Elec. Pwr. Auth. Participating VRDN (c):
Series PA-311, 3.92% (Liquidity Facility
Merrill Lynch & Co., Inc.) 1,000,000 1,000,000
Series PA-346, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) 5,195,000 5,195,000
Puerto Rico Hwy. & Trans. Auth. Trans. Rev.
Participating VRDN, Series PA-376, 3.50%
(Liquidity Facility Merrill Lynch & Co., Inc.) (c) 2,000,000
2,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - CONTINUED
Puerto Rico Infrastructure Fin. Auth. Spl. Tax Rev.
Participating VRDN, Series 1998-CMC3,
3.55% (Liquidity Facility Chase Manhattan Bank) (c) $ 2,795,000 $
2,795,000
Puerto Rico Pwr. Auth. Pwr. Rev. Participating VRDN, 3.92%
(Liquidity Facility Merrill Lynch & Co., Inc.) (c) 1,000,000
1,000,000
Puerto Rico Pub. Impt. Participating VRDN (c):
Rfdg. Series PT-1039, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) 7,270,000 7,270,000
Series PT-1025, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) 5,000,000 5,000,000
Series PT-1051, 3.50% (Liquidity Facility
Merrill Lynch & Co. Inc.) 7,600,000 7,600,000
31,860,000
TOTAL INVESTMENT IN SECURITIES - 100% $ 840,179,299
Total Cost for Income Tax Purposes $ 840,179,265
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION
SECURITY DATE COST
Massachusetts Hsg.
Fin. Agcy. Single
Family Hsg. Rev.
Bonds Series 94C2101,
3.75%, tender 9/1/98
(Liquidity Facility
Citibank, New
York, NA) 12/1/97 $ 3,080,000
OTHER INFORMATION
The fund invested in securities that are not registered under the
Securities Act of 1933. These securities are subject to legal or
contractual restrictions on resale. At the end of the period,
restricted securities (excluding 144A issues) amounted to $3,080,000
or 0.4% of net assets (see Note 2 of Notes to Financial Statements).
INCOME TAX INFORMATION
At January 31, 1998, the fund had a capital loss carryforward of
approximately $56,000 of which $8,000, $8,000, $30,000, and $10,000
will expire on January 31, 2003, 2004, 2005, and 2006, respectively.
SPARTAN MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1998 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE - $ 840,179,299
SEE ACCOMPANYING SCHEDULE
CASH 25,821
RECEIVABLE FOR FUND SHARES SOLD 5,512,775
INTEREST RECEIVABLE 6,866,743
TOTAL ASSETS 852,584,638
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 6,917,612
PAYABLE FOR FUND SHARES REDEEMED 1,476,765
DISTRIBUTIONS PAYABLE 26,693
ACCRUED MANAGEMENT FEE 356,680
OTHER PAYABLES AND ACCRUED EXPENSES 5,063
TOTAL LIABILITIES 8,782,813
NET ASSETS $ 843,801,825
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 843,856,653
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (54,828)
NET ASSETS, FOR 843,853,662 SHARES OUTSTANDING $ 843,801,825
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($843,801,825 (DIVIDED BY) 843,853,662 SHARES)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1998 (UNAUDITED)
INTEREST INCOME $ 13,809,735
EXPENSES
MANAGEMENT FEE $ 1,943,633
NON-INTERESTED TRUSTEES' COMPENSATION 1,421
TOTAL EXPENSES BEFORE REDUCTIONS 1,945,054
EXPENSE REDUCTIONS (46,492) 1,898,562
NET INTEREST INCOME 11,911,173
NET REALIZED GAIN (LOSS) ON INVESTMENTS 1,031
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 11,912,204
OTHER INFORMATION
EXPENSE REDUCTIONS $ 599
CUSTODIAN CREDITS
TRANSFER AGENT CREDITS 45,893
$ 46,492
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JULY 31, 1998 JANUARY 31,
(UNAUDITED) 1998
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 11,911,173 $ 21,608,611
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) 1,031 77
INCREASE (DECREASE) IN NET UNREALIZED GAIN FROM - (2,930)
ACCRETION OF MARKET DISCOUNT
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 11,912,204 21,605,758
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (11,911,173) (21,608,611)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 545,803,393 797,269,094
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 11,778,878 21,242,709
COST OF SHARES REDEEMED (458,641,575) (745,111,081)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 98,940,696 73,400,722
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 98,941,727 73,397,869
NET ASSETS
BEGINNING OF PERIOD 744,860,098 671,462,229
END OF PERIOD $ 843,801,825 $ 744,860,098
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED JANUARY 31,
JULY 31, 1998
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD
INCOME FROM INVESTMENT .015 .031 .030 .033 .024 .019
OPERATIONS
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST (.015) (.031) (.030) (.033) (.024) (.019)
INCOME
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD
TOTAL RETURN B, C 1.53% 3.19% 3.00% 3.32% 2.42% 1.95%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, $ 843,802 $ 744,860 $ 671,462 $ 514,492 $ 406,287 $ 346,880
END OF PERIOD
(000 OMITTED)
RATIO OF EXPENSES TO .50% A .50% .50% .50% .50% .40% D
AVERAGE NET ASSETS
RATIO OF EXPENSES TO .49% A, E .50% .50% .50% .50% .40%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS
RATIO OF NET INTEREST 3.06% A 3.15% 2.96% 3.27% 2.40% 1.93%
INCOME TO AVERAGE
NET ASSETS
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
D FMR 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.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 5 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 JULY 31, 1998 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
FIDELITY MA MUNICIPAL MONEY MARKET 1.47% 3.06% 14.66% 40.05%
MASSACHUSETTS TAX-FREE 1.43% 3.00% 14.77% 41.20%
MONEY MARKET FUNDS AVERAGE
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had 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
Massachusetts tax-free money market funds with similar objectives
tracked by IBC Financial Data, Inc. The past six months average
represents a peer group of 11 mutual funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY MA MUNICIPAL MONEY MARKET 3.06% 2.77% 3.43%
MASSACHUSETTS TAX-FREE 3.00% 2.80% 3.58%
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
8/3/98 4/27/98 2/2/98 11/3/97 7/28/97
MASSACHUSETTS MUNICIPAL 3.01% 3.34% 2.93% 3.13% 3.12%
MONEY MARKET FUND
MASSACHUSETTS 2.89% 3.33% 2.87% 3.02% 3.05%
TAX-FREE MONEY MARKET
FUNDS AVERAGE
MASSACHUSETTS MUNICIPAL 5.34% 5.93% 5.20% 5.56% 5.54%
MONEY MARKET 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 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 1998 federal and state
income tax rate of 43.68%. A portion of the fund's income may be
subject to the Federal 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
An interview with Scott Orr, Portfolio Manager of Fidelity
Massachusetts Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE ENVIRONMENT LIKE OVER THE PAST SIX MONTHS?
A. Investors spent much of the period trying to determine whether the
Federal Reserve Board would raise the fed funds rate - the rate banks
charge each other for overnight loans - as a way to slow the economy
and head off inflation. The economy continued to chug along at a
fairly strong pace and unemployment numbers were incredibly low on an
historical basis, dropping to 4.3% in April and ticking up only to
4.5% in July. But despite this period of continuing expansion, wage
pressures - which can arise during periods of low unemployment when
employers hike pay to attract or retain employees - did not emerge and
inflation remained benign. Under normal circumstances, the possibility
of future inflation created by this tight labor market likely would
have led the Fed to raise rates. But the economic and political
turmoil in Asia kept the Fed on the sidelines during the period. In
fact, the fed funds rate has remained unchanged at 5.5% for more than
a year now.
Q. WHY WAS THE ASIAN TURMOIL ABLE TO OFFSET U.S. ECONOMIC STRENGTH IN
THE FED'S DECISION ON MONETARY POLICY?
A. For two reasons. The Fed didn't want to make the situation in Asia
worse by raising short-term interest rates here. Higher U.S. interest
rates would likely strengthen the U.S. dollar even more versus Asian
currencies, which could further harm their financial markets. In other
words, the Fed was asking itself, "Why make the Asian markets more
volatile by raising rates in the U.S.?" The other factor was the
possibility that the Asian turmoil would translate into a reduction of
U.S. net exports, which would likely have a dampening effect of its
own on the U.S. economy and inflation.
Q. WHAT WAS THE FUND'S STRATEGY DURING THIS PERIOD?
A. Given the uncertainty of the interest-rate environment, the fund's
average maturity started the period at 49 days, a relatively neutral
stance. From time to time during the period, I purchased one-year
fixed-rate notes when I felt that their yields incorporated the
possibility of a Fed interest-rate increase. But whenever the
disruptions in Asia heated up, the yields on fixed-rate notes offered
less value because the market no longer expected the Fed to act.
During these times, I focused more on short-term variable-rate
securities, whose yields move up and down with rates as they change in
the market. In June and July, increased issuance of fixed-rate notes
by municipalities in Massachusetts boosted the supply of these
securities, causing their yields to increase once again. I purchased
the notes to take advantage of their higher yields, extending the
fund's average maturity out to 66 days at the end of the period,
slightly longer than the maturities of competing funds.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on July 31, 1998, was 3.02%, compared to
2.91% six months ago. The more recent seven-day yield was the
equivalent of a 5.36% taxable rate of return for Massachusetts
investors in the 43.68% combined state and federal income tax bracket.
Through July 31, 1998, the fund's six-month total return was 1.47%,
compared to 1.43% for the Massachusetts tax-free money market funds
average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. There's one important wildcard: what happens in Asia. If we
continue to see the same level of turmoil there, I believe the Fed may
be obligated to stay on the sidelines, keeping interest rates
unchanged. There's a lot of risk that a rate increase in the U.S.
could cause increased volatility in global markets. Without a rate
increase, the U.S. economy still might slow as a result of fewer U.S.
exports. In this case, the Asian situation would do the Fed's job for
it. The strength of the U.S. economy, offset by the Asian situation,
has left the Fed at an impasse. And, although at this point I believe
the next Fed move could be to raise rates, I don't believe it will be
any time soon. If events continue to worsen on the international
front, the outlook would be much more uncertain.
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 July 31, 1998,
more than $1.2 billion
MANAGER: Scott Orr, since 1997;
manager, various Fidelity and
Spartan municipal money
market funds; joined Fidelity in
1989
(checkmark)
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/98 1/31/98 7/31/97
0 - 30 56 71 70
31 - 90 22 13 16
91 - 180 8 7 4
181 - 397 14 9 10
WEIGHTED AVERAGE MATURITY
7/31/98 1/31/98 7/31/97
MASSACHUSETTS MUNICIPAL 66 DAYS 49 DAYS 46 DAYS
MONEY MARKET
MASSACHUSETTS TAX-FREE 59 DAYS 50 DAYS 47 DAYS
MONEY MARKET FUNDS AVERAGE*
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF JULY 31, 1998 AS OF JANUARY 31, 1998
Row: 1, Col: 1, Value: 48.0
Row: 1, Col: 2, Value: 20.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 27.0
Row: 1, Col: 5, Value: 2.0
Variable rate demand
notes (VRDNs) 60%
Commercial paper
(including CP mode) 20%
Tender bonds 2%
Municipal
notes 17%
Other 1%
Variable rate demand
notes (VRDNs) 49%
Commercial paper
(including CP mode) 20%
Tender bonds 3%
Municipal
notes 27%
Other 1%
Row: 1, Col: 1, Value: 58.0
Row: 1, Col: 2, Value: 20.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 17.0
Row: 1, Col: 5, Value: 2.0
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
INVESTMENTS JULY 31, 1998 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 96.8%
Agawam Gen. Oblig. BAN 4% 2/5/99 $ 5,900,000 $ 5,910,375
Barnstable Gen. Oblig. BAN:
3.80% 10/23/98 15,000,000 15,004,157
4.25% 10/23/98 6,300,000 6,305,028
Boston City Hosp. Participating VRDN, Series BTP-279,
3.55% (Liquidity Facility Bankers Trust Co.) (c) 5,750,000 5,750,000
Boston Gen. Oblig. Bonds Series 1998 A,
4.50% 1/1/99 (FGIC Insured) 2,295,000 2,303,236
Boston Ind. Rev. (New Boston Seafood Ctr.)
Series 1997, 3.75%, LOC BankBoston, NA, VRDN (b) 875,000 875,000
Boston Wtr. & Swr. Participating VRDN, Series 1996 SG-75,
3.70% (Liquidity Facility Societe Generale, France) (c) 8,380,000
8,380,000
Brockton Area Transit Auth. Gen. Oblig. RAN 4% 8/6/99 4,300,000
4,313,222
Brookline Gen. Oblig. BAN:
4% 12/16/98 3,500,000 3,503,980
4% 6/4/99 14,400,000 14,432,262
Cohasset Gen. Oblig. BAN 3.75% 10/1/98 3,814,750 3,815,758
Everett Gen. Oblig. BAN 4% 3/18/99 (BPA Fleet Nat'l. Bank) 3,000,000
3,007,170
Fall River Gen. Oblig. BAN 4.25% 8/14/98
(BPA Fleet Nat'l. Bank) 2,300,000 2,300,212
Framingham Ind. Rev. Board (Perini Corp. Proj.) Series 1985,
3.65%, LOC Harris Trust & Savings Bank, Chicago, VRDN 400,000
400,000
Gloucester Gen. Oblig. BAN 4% 8/7/98 14,400,000 14,400,306
Hamilton-Wenham Reg. School Dist. Gen. Oblig. BAN:
4% 5/7/99 8,900,000 8,918,103
4% 5/21/99 4,800,000 4,807,704
Hingham Gen. Oblig. BAN 3.75% 9/30/98 5,600,000 5,601,804
Holliston Gen. Oblig. BAN 4.25% 10/15/98 3,000,000 3,002,332
Hopkinton Gen. Oblig. BAN:
4% 9/9/98 3,600,000 3,600,758
4.25% 9/9/98 4,000,000 4,001,404
Hudson Gen. Oblig. BAN 4% 6/24/99 4,200,000 4,209,693
Ipswich Gen. Oblig. BAN 4% 6/1/99 19,200,000 19,251,860
Kingston Gen. Oblig. BAN 4.25% 11/25/98 10,200,000 10,213,679
Lynn Wtr. & Swr. Commission Gen. Rev. Participating VRDN,
Series PA-215, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) (c) 2,320,000 2,320,000
Mansfield Gen. Oblig. BAN 4.25% 11/19/98 3,000,000 3,003,299
Marlborough Gen. Oblig. BAN 4% 6/25/99 8,000,000 8,024,718
Massachusetts Bay Transit Auth.:
Bonds Series 1984 A, 3.40%, tender 9/1/98,
LOC State Street Bank & Trust Co., Boston 10,800,000 10,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Bay Transit Auth.: - continued
Participating VRDN, Series SG-25, 3.70%
(Liquidity Facility Societe Generale, France) (c) $ 9,800,000 $
9,800,000
RAN Series 1998 A, 4.25% 2/26/99 20,900,000 20,974,984
Series C, CP:
3.55% 9/4/98, LOC Westdeutsche
Landesbank Girozentrale 2,400,000 2,400,000
3.55% 10/8/98, LOC Westdeutsche
Landesbank Girozentrale 14,000,000 14,000,000
3.55% 10/15/98, LOC Westdeutsche
Landesbank Girozentrale 1,000,000 1,000,000
Massachusetts Edl. Fing. Auth. Ed. Loan Rev.
Series 1998, Issue G, 3.55% (Bayerische Landesbank
Girozentrale Guaranteed) VRDN (b) 10,800,000 10,800,000
Massachusetts Gen. Oblig. Consolidated Loan:
Bonds Series A:
4% 1/1/99 6,300,000 6,309,001
4.25% 3/1/99 2,000,000 2,007,402
Participating VRDN (c):
Series 1996 SG-38, 3.70% (Liquidity Facility
Societe Generale, France) 5,000,000 5,000,000
Series 1998 B, 3.65% (Liquidity Facility Nat'l.
Westminster Bank, PLC) 6,700,000 6,700,000
Series PA-160, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 3,035,000 3,035,000
Series PA-164, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 11,100,000 11,100,000
Massachusetts Gen. Oblig.:
Participating VRDN (c):
Rfdg.:
Series BTP-258, 3.55% (Liquidity Facility
Bankers Trust Co.) 8,700,000 8,700,000
Series BTP-259, 3.60% (Liquidity Facility
Bankers Trust Co.) 6,100,000 6,100,000
Series 1993 I, 3.67% (Liquidity Facility
Citibank, New York, NA) 13,000,000 13,000,000
Series 93-2, 3.67% (Liquidity Facility State Street
Bank & Trust Co., Boston) 17,316,180 17,316,181
Series 96C2101, 3.67% (Liquidity Facility
Citibank, New York, NA) 4,700,000 4,700,000
Series 97C2101, 3.64% (Liquidity Facility
Citibank, New York, NA) 5,800,000 5,800,000
Series 97C2103, 3.64% (Liquidity Facility
Citibank, New York, NA) 3,800,000 3,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Gen. Oblig.: - continued
Participating VRDN (c):
Series BTP-214, 3.55% (Liquidity Facility
Bankers Trust Co.) $ 9,300,000 $ 9,300,000
Series PT-1024, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 6,700,000 6,700,000
Series SG-47, 3.70% (Liquidity Facility
Societe Generale, France) 5,800,000 5,800,000
Series 1997 B, 3.40% (BPA Landesbank
Hessen-Thuringen) VRDN 88,100,000 88,100,000
Massachusetts Health & Ed. Facs. Auth. Rev.:
Bonds:
(Boston Univ.) Series H, 3.70%, tender 9/15/98,
LOC Landesbank Hessen-Thuringen 25,600,000 25,600,000
(Harvard Univ.):
3.40% 9/2/98, CP mode 4,650,000 4,650,000
3.60% 9/8/98, CP mode 5,700,000 5,700,000
3.55% 9/9/98, CP mode 4,000,000 4,000,000
3.55% 9/10/98, CP mode 13,700,000 13,700,000
3.55% 9/11/98, CP mode 1,200,000 1,200,000
3.60% 9/14/98, CP mode 1,000,000 1,000,000
3.45% 9/17/98, CP mode 2,000,000 2,000,000
Participating VRDN (c):
Series 1997 Y, 3.60% (Liquidity Facility
First Union Nat'l. Bank (NC)) 6,500,000 6,500,000
Series PA-362, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 7,500,000 7,500,000
Series SG-27, 3.70% (Liquidity Facility
Societe Generale, France) 7,500,000 7,500,000
VRDN:
(Brandeis Univ.) Series H, 3.50%,
LOC Fleet Nat'l. Bank 5,400,000 5,400,000
(Cap. Asset Prog.):
Series 1985 D, 3.50% (MBIA Insured)
(BPA Credit Swiss First Boston) 13,200,000 13,200,000
Series C, 3.45% (MBIA Insured)
(BPA Credit Swiss First Boston) 500,000 500,000
Series E, 3.60%, LOC First Nat'l. Bank of Chicago 5,500,000
5,500,000
Massachusetts Higher Ed. Rev. (Southern New England
School of Law) 3.50%, LOC Fleet Nat'l. Bank, VRDN 1,895,000
1,895,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Hsg. Fin. Agcy.:
Insured Rental Hsg. Participating VRDN (c):
Series 1998 B, 3.72% (Liquidity Facility
Caisse des Depots et Consignations) (b) $ 6,995,000 $ 6,995,000
Series PA-83, 3.80% (Liquidity Facility
Merrill Lynch & Co., Inc.) (b) 5,650,000 5,650,000
Series PA-370, 3.80% (Liquidity Facility
Merrill Lynch & Co., Inc.) (b) 3,600,000 3,600,000
Series PT-33, 3.80% (Liquidity Facility
Banque Nationale de Paris) (b) 4,940,000 4,940,000
Series PT-212, 3.80% (Liquidity Facility
Bayerische Landesbank Girozentrale) (b) 5,600,000 5,600,000
Multi-Family Hsg. Rev., VRDN:
(Princeton Crossing Proj.) Series 1996, 3.60%,
LOC General Elec. Capital Corp. (b) 200,000 200,000
Rfdg. (Hbr. Point Apt.) Series 1995 A,
3.65% (GNMA Guaranteed) (BPA Republic
Bank of New York) 15,855,000 15,855,000
Participating VRDN, Series PA-132, 3.80%
(Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c) 1,225,000
1,225,000
Single Family Hsg. Rev.:
Bonds Series 50, 3.75%, tender 6/1/99
(Liquidity Facility FGIC Capital Markets) 7,700,000 7,700,000
Participating VRDN, Series PT-42, 3.78%
(Liquidity Facility Commerzbank, AG) (c) 1,875,000 1,875,000
Massachusetts Ind. Fin. Agcy. Health Care Facs. Auth.
(Jewish Geriatric Svs.) 3.40%, LOC BankBoston,
NA, VRDN (b) 3,000,000 3,000,000
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev.:
Participating VRDN (c):
Series SG-56, 3.70% (Liquidity Facility
Societe Generale, France) 11,100,000 11,100,000
Series SG-108, 3.70% (Liquidity Facility
Societe Generale, France) 6,000,000 6,000,000
VRDN:
(Abbott Box Co.) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 3,800,000 3,800,000
(Assumption College) Series 1998, 3.50%,
LOC Fleet Nat'l. Bank 4,000,000 4,000,000
(BBB Esq. LLC) Series 1996, 3.70%,
LOC BankBoston, NA (b) 1,100,000 1,100,000
(Barker Steel Co.) Series 1995, 3.55%,
LOC State Street Bank & Trust Co., Boston (b) 1,000,000 1,000,000
(Boutwell Owens & Co., Inc.) Series 1998, 3.60%,
LOC Fleet Nat'l. Bank 5,000,000 5,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev.: - continued
VRDN:
(Brady Enterprises) Series 1996, 3.60%,
LOC Fleet Nat'l. Bank $ 2,300,000 $ 2,300,000
(Buckingham Browne Nichols School) Series 1997, 3.40%,
LOC State Street Bank & Trust Co., Boston 4,000,000 4,000,000
(Canton/Cedar Realty LLC) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 2,000,000 2,000,000
(Carand Realty Trust) Series 1997, 3.55%,
LOC State Street Bank & Trust Co., Boston (b) 900,000 900,000
(Constitutional Corp. Proj.) Series 1998, 3.65%,
LOC BankBoston, NA 3,500,000 3,500,000
(Decas Cranberry Proj.) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 4,225,000 4,225,000
(Dover Instrument Corp.) Series 1997, 3.75%,
LOC Fleet Nat'l. Bank (b) 3,000,000 3,000,000
(Fessenden School Issue) Series 1997, 3.50%,
LOC Fleet Nat'l. Bank 4,405,000 4,405,000
(General Signal Proj.) Series 1984, 3.55%,
LOC Wachovia Bank, NA 8,600,000 8,600,000
(Goddard House) 3.50%, LOC Fleet Nat'l. Bank, NA 8,225,000
8,225,000
(Groton School Issue) Series 1998 B, 3.45%
(Liquidity Facility Fleet Nat'l. Bank) 12,000,000 12,000,000
(Hazen Paper Proj.) Series1996, 3.65%,
LOC BankBoston, NA (b) 1,300,000 1,300,000
(Heat Fab Inc.) Series 1996, 3.65%,
LOC BankBoston, NA (b) 3,160,000 3,160,000
(Heritage at Dartmouth) Series 1996, 3.60%,
LOC BankBoston, NA (b) 1,825,000 1,825,000
(Heritage at Hingham) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 6,390,000 6,390,000
(Interpolymer Corp.) Series 1992, 3.65%,
LOC BankBoston, NA (b) 3,200,000 3,200,000
(Lightlife Foods, Inc.) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 4,200,000 4,200,000
(Longview Fiber Co.) Series 1987, 3.45%,
LOC ABN-AMRO Bank, NV 2,070,000 2,070,000
(Lower Mills Associates II LP) Series 1995,
3.45%, LOC BankBoston, NA 930,000 930,000
(Mary Ann Morse Nursing Home):
Series 1994 A, 3.80%, LOC ABN-AMRO Bank, NV 5,800,000 5,800,000
Series 1994 B, 3.55%, LOC ABN-AMRO Bank, NV 6,800,000 6,800,000
(Nutramax Products) Series 1996 A, 3.55%,
LOC State Street Bank & Trust Co., Boston (b) 2,500,000 2,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy. Ind. Dev. Rev.: - continued
VRDN:
(Parker-Hannifin Corp. Proj.) Series 1997, 3.65%,
LOC Wachovia Bank, NA (b) $ 2,700,000 $ 2,700,000
(Riverdale Mills Corp.) Series 1995, 3.65%,
LOC BankBoston, NA (b) 3,500,000 3,500,000
(Sencorp Systems, Inc. Proj.) Series 1998 A,
3.70%, LOC BankBoston, NA (b) 4,600,000 4,600,000
(Society for the Prevention of Cruelty to Animals)
Series 1997, 3.45%, LOC Fleet Nat'l. Bank 3,900,000 3,900,000
(United Med. Corp.) Series 1992, 3.55%,
LOC Bank of Nova Scotia (b) 1,200,000 1,200,000
(United Plastics) Series 1997, 3.60%,
LOC Fleet Nat'l. Bank (b) 2,200,000 2,200,000
(Wheelock College Issue) Series A, 3.65%,
LOC BankBoston, NA 4,200,000 4,200,000
(Youville Place Inc.) Series 1996, 3.60%
(AMBAC Insured) (BPA Fleet Nat'l. Bank) 5,300,000 5,300,000
(346 Univ. LLC) Series 1996, 3.65%,
LOC BankBoston, NA (b) 1,800,000 1,800,000
Massachusetts Ind. Fin. Agcy. Poll. Cont. Rev. Rfdg.:
Bonds (New England Pwr. Co. Proj.):
Series 1992:
3.65% 8/13/98, CP mode 2,600,000 2,600,000
3.65% 8/14/98, CP mode 19,500,000 19,500,000
Series 1993-A:
3.65% 8/12/98, CP mode 3,500,000 3,500,000
3.65% 8/13/98, CP mode 5,100,000 5,100,000
3.65% 8/14/98, CP mode 6,700,000 6,700,000
Series 1993-B:
3.65% 8/12/98, CP mode 5,300,000 5,300,000
3.65% 8/13/98, CP mode 7,600,000 7,600,000
3.65% 8/14/98, CP mode 4,600,000 4,600,000
(New England Power Co. Proj.)
Series 1992-B, 3.60%, VRDN 1,700,000 1,700,000
Massachusetts Ind. Fin. Agcy. Resource Recovery Rev.
(Ogden-Haverhill Proj.) Series 1986 B, 3.55%, LOC Union
Bank of Switzerland, VRDN (b) 2,000,000 2,000,000
Massachusetts Muni. Wholesale Elec. Co. Pwr. Rev. Series A,
3.50% 9/8/98, LOC Fleet Nat'l. Bank, CP 8,700,000 8,700,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Port Auth. Rev.:
Participating VRDN, Series SGA-64, 3.74%
(Liquidity Facility Societe Generale, France) (b)(c) $ 5,300,000 $
5,300,000
Series 1996, CP:
3.40% 10/6/98, LOC Westdeutsche
Landesbank Girozentrale 5,000,000 5,000,000
3.40% 10/7/98, LOC Westdeutsche
Landesbank Girozentrale 4,800,000 4,800,000
Series 1997, CP:
3.40% 10/6/98, LOC Westdeutsche
Landesbank Girozentrale (b) 2,000,000 2,000,000
3.40% 10/7/98, LOC Westdeutsche
Landesbank Girozentrale (b) 6,600,000 6,600,000
Massachusetts Tpk. Auth. Participating VRDN (c):
Series 1997 N, 3.70% (Liquidity Facility
Bank of America Nat'l. Trust & Savings, NA) 6,000,000 6,000,000
Series PA-181, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 980,000 980,000
Series PT-135, 3.78% (Liquidity Facility
Banco Santander, SA) 45,500,000 45,500,000
Series PT-1009, 3.78% (Liquidity Facility
Merrill Lynch & Co., Inc.) 7,000,000 7,000,000
Massachusetts Wtr. Resource Auth.:
CP:
3.55% 8/7/98, LOC Morgan Guaranty Trust Co., NY 1,000,000 1,000,000
3.55% 9/1/98, LOC Morgan Guaranty Trust Co., NY 8,700,000
8,700,000
3.40% 9/2/98, LOC Morgan Guaranty Trust Co., NY 7,000,000
7,000,000
3.60% 9/4/98, LOC Morgan Guaranty Trust Co., NY 12,200,000
12,200,000
3.40% 9/8/98, LOC Morgan Guaranty Trust Co., NY 4,100,000
4,100,000
3.45% 9/8/98, LOC Morgan Guaranty Trust Co., NY 3,600,000
3,600,000
3.55% 9/8/98, LOC Morgan Guaranty Trust Co., NY 3,000,000
3,000,000
3.50% 9/9/98, LOC Morgan Guaranty Trust Co., NY 14,700,000
14,700,000
3.55% 9/10/98, LOC Morgan Guaranty Trust Co., NY 15,300,000
15,300,000
3.55% 9/11/98, LOC Morgan Guaranty Trust Co., NY 9,250,000
9,250,000
3.65% 9/15/98, LOC Morgan Guaranty Trust Co., NY 2,300,000
2,300,000
3.50% 9/16/98, LOC Morgan Guaranty Trust Co., NY 1,000,000
1,000,000
3.45% 9/17/98, LOC Morgan Guaranty Trust Co., NY 4,000,000
4,000,000
3.70% 10/7/98, LOC Morgan Guaranty Trust Co., NY 6,000,000
6,000,000
3.45% 10/15/98, LOC Morgan Guaranty Trust Co., NY 4,800,000
4,800,000
3.50% 10/16/98, LOC Morgan Guaranty Trust Co., NY 1,000,000
1,000,000
3.65% 11/3/98, LOC Morgan Guaranty Trust Co., NY 4,300,000
4,300,000
3.65% 11/5/98, LOC Morgan Guaranty Trust Co., NY 3,800,000
3,800,000
3.45% 11/10/98, LOC Morgan Guaranty Trust Co., NY 2,400,000
2,400,000
3.55% 12/1/98, LOC Morgan Guaranty Trust Co., NY 11,000,000
11,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Wtr. Resource Auth.: - continued
Participating VRDN (c):
Series 1995 SG-17, 3.70% (Liquidity Facility
Societe Generale, France) $ 5,000,000 $ 5,000,000
Series 1996 SG-63, 3.70% (Liquidity Facility
Societe Generale, France) 1,000,000 1,000,000
Series BTP-297, 3.55% (Liquidity Facility
Bankers Trust Co.) 9,033,500 9,033,500
(Multi-Modal Subordinated Gen. Rev.)
Series 1997-B, 3.40% (Liquidity Facility
Bank of Nova Scotia) (AMBAC Insured) VRDN 18,200,000 18,200,000
Merrimack Valley Reg. Transit Auth.
Gen. Oblig. RAN 4% 6/18/99 4,600,000 4,608,881
Middleborough Gen. Oblig. BAN 4% 4/14/99 7,300,000 7,318,520
Montachusetts Reg. Transit Auth. Gen. Oblig.
RAN 4% 6/25/99 3,800,000 3,810,204
Natick Gen. Oblig. BAN:
3.75% 8/7/98 7,770,000 7,770,169
3.75% 1/8/99 6,185,000 6,190,148
New Bedford Gen. Oblig. BAN 4.10% 4/14/99
(BPA Fleet Nat'l. Bank) 6,000,000 6,020,240
Newton Gen. Oblig. BAN 3.75% 3/25/99 3,500,000 3,505,809
North Andover Gen. Oblig. BAN 3.75% 8/19/98 5,700,000 5,700,358
Northampton Gen. Oblig. BAN 4.25% 12/22/98 3,600,000 3,605,982
Northborough Gen. Oblig. BAN 4% 2/2/99 3,250,000 3,256,093
Northborough Ind. Rev. Board (Tru Realty Corp. Proj.,
Toys "R" Us, Inc.) 3.625%, LOC Chase
Manhattan Bank, VRDN 2,900,000 2,900,000
Peabody Gen. Oblig. BAN 3.75% 10/16/98 2,500,000 2,500,878
Pioneer Valley Reg. Transit Auth. Gen. Oblig.
RAN 4% 8/6/99 10,200,000 10,226,418
Plymouth Gen. Oblig. BAN 3.75% 10/22/98 5,600,000 5,602,725
Quincy Gen. Oblig. BAN 4% 5/21/99 3,000,000 3,005,029
Reading Gen. Oblig. BAN 4% 1/14/99 3,000,000 3,004,554
Rockport Gen. Oblig. BAN 3.75% 11/3/98 4,260,000 4,261,961
Seekonk Gen. Oblig. BAN 4.25% 11/19/98 5,370,000 5,376,517
Southeastern Reg. Transit Auth. Gen. Oblig.
RAN 4.25% 9/18/98 3,600,000 3,601,491
Springfield Gen. Oblig. BAN:
4.40% 9/4/98 (BPA Fleet Nat'l. Bank) 4,200,000 4,201,713
4.25% 11/20/98 (BPA Fleet Nat'l. Bank) 13,200,000 13,215,042
4% 6/25/99 (BPA Fleet Nat'l. Bank) 2,200,000 2,205,657
4% 7/15/99 (BPA Fleet Nat'l. Bank) 10,400,000 10,433,112
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - CONTINUED
Sutton Gen. Oblig. BAN 4% 4/28/99 $ 5,800,000 $ 5,811,615
Taunton Gen. Oblig. BAN 4% 5/7/99 3,000,000 3,004,787
Uxbridge Gen. Oblig. BAN 4% 1/15/99 6,000,000 6,011,819
Wakefield Gen. Oblig. BAN 4% 4/21/99 4,500,000 4,512,373
Walpole Gen. Oblig. BAN:
Series 1997, 4% 12/16/98 5,700,000 5,704,439
3.85% 12/16/98 4,000,000 4,002,569
Watertown Gen. Oblig. BAN 4% 10/28/98 5,750,000 5,754,044
Westfield Gen. Oblig. BAN 4.10% 10/22/98 4,000,000 4,004,677
Westford Gen. Oblig. BAN 4% 4/15/99 3,600,000 3,609,670
Weston Gen. Oblig. BAN:
3.75% 9/30/98 4,450,000 4,451,836
4% 9/30/98 5,000,000 5,001,276
Westwood Gen. Oblig. BAN:
3.75% 12/17/98 2,145,600 2,146,921
4% 12/17/98 1,568,900 1,571,280
Woods Hole Marthas Vineyard & Nantucket
Steamship Auth. Gen. Oblig. BAN 3.75% 11/16/98 3,000,000 3,001,413
Wrentham Gen. Oblig. BAN 4.15% 3/16/99 4,000,000 4,019,518
1,244,206,866
PUERTO RICO - 3.2%
Puerto Rico Elec. Pwr. Auth. Rev. Participating VRDN,
Series PA-150, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) (c) 1,300,000 1,300,000
Puerto Rico Hwy. & Trans. Auth. Participating VRDN (c):
Series PA-125, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) 1,010,000 1,010,000
Series PA-331, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) 1,900,000 1,900,000
Series PA-376, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) 3,130,000 3,130,000
Series PT-183, 3.50% (Liquidity Facility
Commerzbank, AG) 15,840,000 15,840,000
Puerto Rico Pub. Impt. Participating VRDN (c):
Series PA-97, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) 1,645,000 1,645,000
Series PT-63, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) 1,800,000 1,800,000
Series PT-1051, 3.50% (Liquidity Facility
Merrill Lynch & Co., Inc.) 14,200,000 14,200,000
40,825,000
TOTAL INVESTMENT IN SECURITIES - 100% $ 1,285,031,866
Total Cost for Income Tax Purposes $ 1,285,031,816
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, 1998, the fund had a capital loss carryforward of
approximately $66,000 of which $13,000 and $53,000 will expire on
January 31, 2003 and 2005, respectively.
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1998 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE - $ 1,285,031,866
SEE ACCOMPANYING SCHEDULE
RECEIVABLE FOR FUND SHARES SOLD 12,359,079
INTEREST RECEIVABLE 10,252,292
TOTAL ASSETS 1,307,643,237
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 10,426,418
PAYABLE FOR FUND SHARES REDEEMED 12,622,991
DISTRIBUTIONS PAYABLE 104,770
ACCRUED MANAGEMENT FEE 410,899
OTHER PAYABLES AND ACCRUED EXPENSES 524,220
TOTAL LIABILITIES 24,089,298
NET ASSETS $ 1,283,553,939
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 1,283,618,901
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (64,962)
NET ASSETS, FOR 1,283,529,773 SHARES OUTSTANDING $ 1,283,553,939
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($1,283,553,939 (DIVIDED BY) 1,283,529,773 SHARES)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1998 (UNAUDITED)
INTEREST INCOME $ 21,978,407
EXPENSES
MANAGEMENT FEE $ 2,411,690
TRANSFER AGENT FEES 953,388
ACCOUNTING FEES AND EXPENSES 83,695
NON-INTERESTED TRUSTEES' COMPENSATION 3,398
CUSTODIAN FEES AND EXPENSES 31,101
REGISTRATION FEES 27,898
AUDIT 31,780
LEGAL 6,174
TOTAL EXPENSES BEFORE REDUCTIONS 3,549,124
EXPENSE REDUCTIONS (3,767) 3,545,357
NET INTEREST INCOME 18,433,050
NET REALIZED GAIN (LOSS) ON INVESTMENTS 1,257
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 18,434,307
OTHER INFORMATION
EXPENSE REDUCTIONS $ 3,767
CUSTODIAN CREDITS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JULY 31, 1998 JANUARY 31,
(UNAUDITED) 1998
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 18,433,050 $ 32,545,703
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) 1,257 3,832
INCREASE (DECREASE) IN NET UNREALIZED GAIN FROM ACCRETION - (5,055)
OF MARKET DISCOUNT
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 18,434,307 32,544,480
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (18,433,050) (32,545,703)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 2,163,171,647 3,380,459,506
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 17,874,055 31,602,703
COST OF SHARES REDEEMED (2,097,039,533) (3,180,203,918)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 84,006,169 231,858,291
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 84,007,426 231,857,068
NET ASSETS
BEGINNING OF PERIOD 1,199,546,513 967,689,445
END OF PERIOD $ 1,283,553,939 $ 1,199,546,513
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED JANUARY 31,
JULY 31, 1998
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD
INCOME FROM INVESTMENT .015 .031 .029 .032 .023 .017
OPERATIONS
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST (.015) (.031) (.029) (.032) (.023) (.017)
INCOME
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD
TOTAL RETURN B 1.47% 3.10% 2.90% 3.20% 2.29% 1.71%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, $ 1,283,554 $ 1,199,547 $ 967,689 $ 847,490 $ 756,929 $ 610,154
END OF PERIOD
(000 OMITTED)
RATIO OF EXPENSES TO .57% A .57% .59% .60% .63% .66%
AVERAGE NET ASSETS
RATIO OF NET INTEREST 2.96% A 3.07% 2.86% 3.15% 2.28% 1.69%
INCOME TO AVERAGE
NET ASSETS
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1998 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Massachusetts Municipal Income Fund (the income fund), Spartan
Massachusetts Municipal Money Market Fund, and Fidelity Massachusetts
Municipal Money Market Fund (the money market funds) (collectively,
the funds) are funds of Fidelity Massachusetts Municipal Trust (the
trust). The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust. Each fund is
authorized to issue an unlimited number of shares. The financial
statements have been prepared in conformity with generally accepted
accounting principles which require 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 FUNDS. 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 funds, 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
among 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
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
to differing treatments for market discount, capital loss
carryforwards, expiring capital loss carryforwards and losses deferred
due to futures and excise tax regulations. The income fund also
utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for
income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and
may affect the per-share allocation between net interest income and
realized and unrealized gain (loss). Accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable gain remaining at fiscal year end is distributed in the
following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
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 or if the counterparties do
not perform under the contracts' terms. Gains (losses) are realized
upon the expiration or closing of the futures contracts. Futures
contracts are valued at the settlement price established each day by
the board of trade or exchange on which they are traded.
RESTRICTED SECURITIES. Certain funds are 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. Information regarding restricted securities is included
under the caption "Other Information" at the end of each applicable
fund's schedule of investments.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities , other than short-term
securities, aggregated $127,698,786 and $82,990,135, respectively.
The market value of futures contracts opened and closed for during
the period amounted to $36,716,053 and $47,741,570, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser for the income fund
and Fidelity Massachusetts Municipal Money Market Fund, 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 for the funds. The annual individual fund fee rate is .25%. In
the event that these rates were lower than the contractual rates in
effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. For the
period, the management fee was equivalent to an annualized rate of
.39% of average net assets for the income fund and Fidelity
Massachusetts Municipal Money Market Fund.
For Spartan Massachusetts Municipal Money Market Fund, 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
collected certain transaction fees from shareholders which amounted to
$3,753 for the period.
SUB-ADVISER FEE. As the money market funds' investment sub-adviser,
Fidelity Investments Money Management, 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 income
fund and Fidelity Massachusetts Municipal Money Market Fund. 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.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
For the period, the transfer agent fees were equivalent to an
annualized rate of .09% and .15% of average net assets for the income
fund and Fidelity Massachusetts Municipal Money Market Fund,
respectively.
5. EXPENSE REDUCTIONS.
Each fund has entered into arrangements with their custodian and
transfer agent whereby credits realized on uninvested cash balances
were used to offset a portion of certain funds' expenses.
For the period, the reductions under these arrangements are shown
under the caption "Other Information" on each applicable fund's
Statement of Operations.
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 Xpress(registered trademark) provides 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.
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
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.
(COMPUTER_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 and we'll send you an America Online CD or disk with up
to 50 free hours of Web access.
(COMPUTER_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 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
2300 Litton Lane - KH1A
Hebron, KY 41048
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 500
Merrimack, NH 03054-0500
(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 500
Merrimack, NH 03054-0500
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUNDS
Fidelity Investments Money
Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Boyce I. Greer, Vice President -
MONEY MARKET FUNDS
Dwight D. Churchill, Vice President -
INCOME FUND
Scott A. Orr, Vice President -
MONEY MARKET FUNDS
Christine J. Thompson, Vice President -
INCOME FUND
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Stanley N. Griffith, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
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(registered trademark) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
* INDEPENDENT TRUSTEES
