(2_FIDELITY_LOGOS)
SPARTAN(REGISTERED TRADEMARK)
MASSACHUSETTS MUNICIPAL
FUNDS
AND
FIDELITY (REGISTERED TRADEMARK)
MASSACHUSETTS MUNICIPAL
MONEY MARKET FUND
ANNUAL REPORT
JANUARY 31, 2000
CONTENTS
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
26 FINANCIAL STATEMENTS
SPARTAN MASSACHUSETTS
MUNICIPAL MONEY MARKET FUND
30 PERFORMANCE
32 FUND TALK: THE MANAGER'S
OVERVIEW
34 INVESTMENT CHANGES
35 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
INDEPENDENT AUDITORS' REPORT 70 THE AUDITORS' OPINION.
PROXY VOTING RESULTS 71
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Distributors Corporation.
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 1-800-544-6666 FOR A FREE PROSPECTUS. READ IT CAREFULLY
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Other third party marks appearing herein are the property of their
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All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)
DEAR SHAREHOLDER:
While no major Y2K glitches disrupted the financial markets to start
the new year, inflation worries re-emerged to hinder stock performance
throughout January. The S&P 500(Registered trademark) and Dow Jones
Industrial Average each fell approximately 5%, while the
technology-oriented NASDAQ Index dropped more than 3% for the month.
In bond markets, the potential for further rate hikes as a pre-emptive
move against inflation continued to be an obstacle to fixed-income
performance.
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 an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
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. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-6666, or visit our
web site at www.fidelity.com. 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 JANUARY 31, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN MA MUNICIPAL INCOME -3.70% 32.76% 91.53%
LB Massachusetts Enhanced -3.73% 34.71% n/a
Municipal Bond
Massachusetts Municipal Debt -6.28% 27.12% 83.58%
Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you 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 market
value-weighted index of Massachusetts investment-grade municipal bonds
with maturities of one year or more. 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
Inc. The past one year average represents a peer group of 56 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 JANUARY 31, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN MA MUNICIPAL INCOME -3.70% 5.83% 6.71%
LB Massachusetts Enhanced -3.73% 6.14% n/a
Municipal Bond
Massachusetts Municipal Debt -6.28% 4.91% 6.26%
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. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking the
arithmetic average. This may produce a 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
1990/01/31 10000.00 10000.00
1990/02/28 10123.82 10089.00
1990/03/31 10141.19 10092.03
1990/04/30 10008.04 10018.96
1990/05/31 10225.76 10237.67
1990/06/30 10332.91 10327.66
1990/07/31 10478.95 10479.48
1990/08/31 10353.25 10327.32
1990/09/30 10387.92 10333.20
1990/10/31 10423.38 10520.65
1990/11/30 10745.50 10732.22
1990/12/31 10791.32 10778.90
1991/01/31 10924.66 10923.56
1991/02/28 11008.45 11018.59
1991/03/31 11063.29 11022.56
1991/04/30 11216.63 11169.16
1991/05/31 11329.63 11268.45
1991/06/30 11352.00 11257.30
1991/07/31 11516.50 11394.41
1991/08/31 11621.42 11544.48
1991/09/30 11728.24 11694.78
1991/10/31 11832.79 11800.04
1991/11/30 11864.12 11832.96
1991/12/31 12011.33 12086.89
1992/01/31 12115.83 12114.45
1992/02/29 12154.43 12118.33
1992/03/31 12166.42 12122.81
1992/04/30 12274.47 12230.71
1992/05/31 12408.43 12374.66
1992/06/30 12614.79 12582.31
1992/07/31 12953.97 12959.53
1992/08/31 12791.00 12833.17
1992/09/30 12899.90 12917.10
1992/10/31 12681.97 12790.12
1992/11/30 13002.96 13019.20
1992/12/31 13127.02 13152.12
1993/01/31 13320.02 13305.08
1993/02/28 13778.29 13786.33
1993/03/31 13653.65 13640.60
1993/04/30 13779.11 13778.24
1993/05/31 13872.58 13855.67
1993/06/30 14091.13 14086.92
1993/07/31 14081.30 14105.38
1993/08/31 14375.12 14399.05
1993/09/30 14620.66 14563.06
1993/10/31 14656.60 14591.16
1993/11/30 14536.18 14462.61
1993/12/31 14823.15 14767.92
1994/01/31 14994.45 14936.57
1994/02/28 14680.69 14549.71
1994/03/31 14048.93 13957.25
1994/04/30 14096.28 14075.61
1994/05/31 14235.05 14197.64
1994/06/30 14168.76 14110.89
1994/07/31 14436.53 14369.55
1994/08/31 14500.08 14419.27
1994/09/30 14264.08 14207.59
1994/10/31 13976.92 13955.26
1994/11/30 13582.47 13702.95
1994/12/31 13922.86 14004.55
1995/01/31 14426.09 14404.80
1995/02/28 14830.22 14823.70
1995/03/31 15028.95 14994.02
1995/04/30 15036.24 15011.71
1995/05/31 15506.77 15490.74
1995/06/30 15267.58 15355.97
1995/07/31 15370.93 15501.54
1995/08/31 15557.65 15698.10
1995/09/30 15686.83 15797.47
1995/10/31 15942.66 16027.17
1995/11/30 16222.85 16293.06
1995/12/31 16438.90 16449.63
1996/01/31 16555.28 16573.83
1996/02/29 16382.98 16461.95
1996/03/31 16159.17 16251.57
1996/04/30 16088.13 16205.58
1996/05/31 16090.74 16199.10
1996/06/30 16248.79 16375.50
1996/07/31 16423.48 16524.52
1996/08/31 16395.66 16520.56
1996/09/30 16614.04 16751.84
1996/10/31 16805.22 16941.31
1996/11/30 17113.12 17251.33
1996/12/31 17030.25 17178.88
1997/01/31 17062.15 17211.35
1997/02/28 17220.98 17369.35
1997/03/31 16983.24 17137.81
1997/04/30 17132.90 17281.26
1997/05/31 17391.58 17541.17
1997/06/30 17572.71 17727.98
1997/07/31 18076.64 18219.04
1997/08/31 17908.28 18048.33
1997/09/30 18121.13 18262.57
1997/10/31 18229.46 18379.99
1997/11/30 18350.39 18488.07
1997/12/31 18617.27 18757.81
1998/01/31 18804.25 18951.39
1998/02/28 18780.51 18957.08
1998/03/31 18795.58 18973.76
1998/04/30 18712.96 18888.19
1998/05/31 18998.17 19187.19
1998/06/30 19042.08 19262.78
1998/07/31 19071.61 19311.13
1998/08/31 19358.28 19609.49
1998/09/30 19594.54 19853.82
1998/10/31 19542.20 19853.43
1998/11/30 19632.64 19923.11
1998/12/31 19661.21 19973.32
1999/01/31 19888.20 20210.80
1999/02/28 19777.44 20122.48
1999/03/31 19810.06 20150.45
1999/04/30 19870.19 20200.63
1999/05/31 19749.07 20083.66
1999/06/30 19456.96 19794.46
1999/07/31 19536.95 19866.51
1999/08/31 19363.31 19707.58
1999/09/30 19356.23 19715.66
1999/10/31 19181.50 19501.94
1999/11/30 19379.63 19709.44
1999/12/31 19242.78 19562.61
2000/01/31 19152.67 19477.51
IMATRL PRASUN SHR__CHT 20000131 20000209 152735 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan Massachusetts Municipal Income Fund on January 31,
1990. As the chart shows, by January 31, 2000, the value of the
investment would have grown to $19,153 - a 91.53% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index - a market value-weighted index of
investment-grade municipal bonds with maturities of one year or more -
did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 would have grown to $19,478 - a 94.78%
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
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
YEARS ENDED JANUARY 31,
2000 1999 1998 1997 1996
Dividend returns 4.57% 4.92% 5.47% 5.33% 6.41%
Capital returns -8.27% 0.84% 4.74% -2.27% 8.35%
Total returns -3.70% 5.76% 10.21% 3.06% 14.76%
</TABLE>
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.
DIVIDENDS AND YIELD
PERIODS ENDED JANUARY 31, 2000 PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
Dividends per share 4.79(cents) 28.19(cents) 55.96(cents)
Annualized dividend rate 5.11% 4.97% 4.86%
30-day annualized yield 5.19% - -
30-day annualized 8.61% - -
tax-equivalent yield
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
$11.04 over the past one month, $11.25 over the past six months and
$11.52 over the past one year, you can compare the fund's income over
these three periods. The 30-day annualized YIELD is a standard formula
for all bond 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 39.74% combined 2000 federal and state tax bracket, but does not
reflect the payment of the federal alternative minimum tax, if
applicable.
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Whether it was due to a greater
appetite for risk or to a growing
distaste for conservative debt issues,
many investors left municipal bonds
off their menus in order to fatten up
on the more tantalizing returns of
equities during the 12-month period
ending January 31, 2000. To
illustrate, municipal bond mutual
funds in 1999 experienced their
second-worst year ever in terms of
outflows. But it wasn't just the allure
of stocks that munis struggled
against: Restrictive Federal Reserve
Board monetary policy -
culminating in three quarter-point
interest-rate hikes during the period
- - also hampered muni bond
returns. For the 12-month period
ending January 31, 2000, the Lehman
Brothers Municipal Bond Index -
an index of over 35,000
investment-grade, fixed-rate,
tax-exempt bonds - fell 3.63%.
Relative to other fixed-income
investments, municipal bonds
turned in mixed results. Compared
to Treasurys, for example, short-term
munis were fairly valued, but
long-term munis were undervalued.
Compared to investment-grade
spread sectors, however, municipal
bonds lagged behind. The Lehman
Brothers Corporate Bond Index's
return of -3.26% narrowly
outperformed, while mortgage
securities, one of the
best-performing domestic debt
offerings of the past year, soundly
outdistanced their muni counterparts
with a one-year return of 0.26%,
according to the Lehman Brothers
Mortgage-Backed Securities Index.
(PHOTOGRAPH OF CHRISTINE THOMPSON)
An interview with Christine Thompson, Portfolio Manager of Spartan
Massachusetts Municipal Income Fund
Q. HOW DID THE FUND PERFORM, CHRISTINE?
A. During the past year, rising interest rates caused the fund to post
a negative return, although it outpaced its peers. For the 12-month
period that ended January 31, 2000, the fund had a total return of
- -3.70%. To get a sense of how the fund did relative to its
competitors, the Massachusetts municipal debt funds average returned
- -6.28% for the same 12-month period, according to Lipper Inc.
Additionally, the Lehman Brothers Massachusetts Enhanced Municipal
Bond Index, which tracks the types of securities in which the fund
invests, fell 3.73%.
Q. WHAT HELPED THE FUND BEAT ITS PEERS?
A. The fund's focus on intermediate-maturity bonds was one of the main
factors behind the fund's better performance. Throughout the year I
emphasized intermediate-maturity bonds - those set to mature within
five to 15 years - a strategy that ultimately worked in the fund's
favor. For a short time in 1999, intermediates suffered due to reduced
demand and increased supply resulting from relatively heavy selling by
institutional investors. In contrast, shorter- and longer-term bonds
held up fairly well thanks to relatively constant demand for them.
However, based on Fidelity's quantitative research models, I felt that
intermediates continued to offer some of the best values for their
given interest-rate sensitivity and their total return potential. That
patience was rewarded: The fund's focus on this maturity range worked
in its favor when institutional investors came back into the market
with purchases of intermediate securities.
Q. WHAT OTHER STRUCTURAL CHARACTERISTICS AIDED PERFORMANCE?
A. The fund was helped by its focus on premium coupon bonds, which pay
interest rates above face - or par - value. One appealing aspect of
premiums was that they were somewhat insulated from unfavorable tax
treatment that negatively affected the prices of lower coupon bonds,
or "discounts," as rates rose.
Q. WERE THERE OTHER DISAPPOINTMENTS?
A. Health care bonds continued their disappointing run throughout
1999, coming under pressure from a variety of challenges. Those
challenges included problems at Harvard Pilgrim, one of the state's
largest not-for-profit HMOs, which went into receivership in late
1999. Questions about the HMO's ability to pay hospitals in a timely
manner, coupled with cutbacks in Medicare payments, caused a great
deal of uncertainty among investors and cast doubt over many
hospitals' financial health. With the help of Fidelity's research
staff, I continue to carefully monitor the impact these developments
will have on hospitals over the long term. My approach is to be very
selective, emphasizing hospitals with a proven track record that I
believe can do well in today's evolving, more competitive operating
environment.
Q. WHERE DID YOU FIND OPPORTUNITIES OVER THE PAST YEAR?
A. I continued to find some interesting opportunities among education
bonds, including bonds backed by Massachusetts colleges and
universities. I liked them because they allowed me to diversify the
fund away from economically sensitive bonds such as general obligation
bonds, which depend on sales, property, income and other tax revenue
collections. Furthermore, projections call for an increasing number of
students to seek advanced degrees over the next several years. Some of
the fund's larger holdings in the education sector at the end of the
period were bonds issued by Amherst College, Boston College, Simmons
College and Tufts University. I also found some compelling buys among
student loan bonds. These bonds offer higher yields than comparably
rated, similar-maturity bonds in other sectors largely because they
carry the option of being prepaid before maturity, which complicates
the analysis of their return potential.
Q. WHAT'S YOUR OUTLOOK FOR THE MUNICIPAL MARKET?
A. At the end of the period, municipals were priced cheaply compared
to their Treasury counterparts. To the extent that investors realize
and act on that relative cheapness, municipals could gain ground on
Treasuries. Of course, the major determinant of the bond market's
performance will, as always, be the direction of interest rates. But
instead of spending time trying to forecast interest-rate movements,
I'll look for attractively priced bonds that I believe will
outperform, no matter where interest rates end up. From a credit
quality perspective, Massachusetts is in relatively good shape,
characterized by a strong economy. While the state has become more
fiscally prudent and has reduced its backing of various kinds of debt,
the uncertainty surrounding the financing of the "Big Dig" in Boston
bears watching. In recognition of its economic strength and fiscal
prudence, the state recently received a credit upgrade from one of the
major municipal bond credit rating agencies.
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 AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
CHRISTINE THOMPSON ON
MUNICIPAL BOND DEMAND:
"The demand for municipals can
vary a great deal in response to the
behavior of various market
participants. Corporations,
individual investors and trust
accounts tend to favor short-term
securities, which are less
interest-rate sensitive and,
therefore, tend to be less volatile
than the overall municipal
market. Individual investors,
along with mutual funds and
insurance companies - which
invest the insurance premiums
they collect - are the primary
purchasers of intermediate-maturity
bonds. Higher-yielding, longer-term
securities, which tend to be the
most volatile, generally are the
domain of long-maturity mutual
funds, hedge funds and other
investors known as `arbitrageurs,'
who seek to exploit small
differences between various
fixed-income investments. At a
given point in time, a specific
municipal bond maturity range
may look cheap or expensive as
different categories of investors
embrace them or step aside. With the
help of Fidelity's research team, I
try to take advantage of the
anomalies that can occur by
investing in bond maturities that
look cheap due to weak demand
and selling those that have
performed well in response to
strong demand."
FUND FACTS
GOAL: to provide a high level
of current income exempt
from federal income tax and
Massachusetts personal
income tax
FUND NUMBER: 070
TRADING SYMBOL: FDMMX
START DATE: November 10,
1983
SIZE: as of January 31,
2000, more than $1.2
billion
MANAGER: Christine Thompson,
since 1998; manager,
various Fidelity and Spartan
municipal income funds;
joined Fidelity in 1985
(checkmark)
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FIVE SECTORS AS OF
JANUARY 31, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
General Obligations 21.7 23.7
Health Care 18.1 16.9
Education 16.4 14.7
Water & Sewer 9.7 11.6
Transportation 8.8 7.2
AVERAGE YEARS TO MATURITY AS
OF JANUARY 31, 2000
6 MONTHS AGO
Years 13.6 13.6
</TABLE>
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME REMAINING UNTIL
PRINCIPAL PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS,
WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF JANUARY 31, 2000
6 MONTHS AGO
Years 6.4 6.5
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 JANUARY 31, 2000
Row: 1, Col: 1, Value: 46.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 43.1
Row: 1, Col: 4, Value: 7.8
Row: 1, Col: 5, Value: 1.9
Row: 1, Col: 6, Value: 1.2
Aaa 46.0%
Aa, A 43.1%
Baa 7.8%
Not Rated 1.9%
Short-term
Investments 1.2%
AS OF JULY 31, 1999
Row: 1, Col: 1, Value: 47.1
Row: 1, Col: 2, Value: 41.1
Row: 1, Col: 3, Value: 7.9
Row: 1, Col: 4, Value: 3.6
Row: 1, Col: 5, Value: 0.3
Row: 1, Col: 6, Value: 0.0
Aaa 47.1%
Aa, A 41.1%
Baa 7.9%
Not Rated 3.6%
Short-term
Investments 0.3%
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P (registered
trademark) RATINGS. AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S
INVESTMENTS.
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
INVESTMENTS JANUARY 31, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS - 97.6%
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
GUAM - 0.3%
Guam Pwr. Auth. Rev. Series Baa3 $ 2,950,000 $ 2,947,965
A, 4.25% 10/1/00
MASSACHUSETTS - 96.8%
Attleboro Gen. Oblig.:
6% 10/1/03 (MBIA Insured) Aaa 1,085,000 1,129,268
6% 10/1/04 (MBIA Insured) Aaa 1,085,000 1,137,362
6% 10/1/05 (MBIA Insured) Aaa 1,085,000 1,138,122
6% 10/1/06 (MBIA Insured) Aaa 1,085,000 1,140,628
6% 10/1/07 (MBIA Insured) Aaa 1,085,000 1,140,628
Barnstable Ind. Dev. Fing. AA- 2,920,000 2,939,506
Auth. Ind. Dev. Rev.
(Whitehall Pavilion Proj.)
10.125% 2/15/26 (Fed. Hsg.
Administration Insured)
Barnstable Gen. Oblig.:
5% 3/15/11 Aa3 2,140,000 2,038,799
5% 3/15/14 Aa3 2,370,000 2,158,098
Boston Economic Dev. & Ind. - 3,790,000 3,819,107
Corp. (Boston Army Base 1983
Proj.) 6.25% 8/1/03
Boston Gen. Oblig. Rfdg. Aaa 3,000,000 2,991,780
Series A, 4.3% 7/1/01 (AMBAC
Insured)
Boston Hsg. Dev. Corp. Mtg. Aaa 2,775,000 2,719,694
Rev. Rfdg. Series A, 5.15%
7/1/08 (MBIA Insured)
Boston Wtr. & Swr. Commission
Rev.:
Rfdg. Sr. Series A, 5.75% A1 1,575,000 1,577,331
11/1/13
Sr. Series A, 5.25% 11/1/19 A1 10,100,000 9,226,451
Sr. Series C, 5.2% 11/1/21 Aaa 4,000,000 3,503,160
(FGIC Insured)
Sr. Series D, 5% 11/1/28 Aaa 9,250,000 7,544,947
(FGIC Insured)
Brockton Gen. Oblig.:
5% 4/1/09 (MBIA Insured) Aaa 1,200,000 1,158,192
5% 4/1/13 (MBIA Insured) Aaa 1,165,000 1,075,446
5.1% 4/1/12 (MBIA Insured) Aaa 1,850,000 1,754,226
6% 4/1/06 (MBIA Insured) Aaa 1,380,000 1,446,102
Brockton Hsg. Dev. Corp. AAA 7,895,000 8,096,638
Multi-family Rev. Rfdg.
(Douglas House Proj.) Series
1992 A, 7.375% 9/1/24
Chelsea Gen. Oblig.:
(School Ln. Act 1948 Proj.) Aaa 1,830,000 1,937,037
6% 6/15/14 (AMBAC Insured)
(Pre-Refunded to 6/15/04 @
102) (d)
Rfdg.:
5% 6/15/13 (AMBAC Insured) Aaa 2,640,000 2,435,004
5.125% 6/15/16 (AMBAC Insured) Aaa 1,750,000 1,579,305
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Fitchburg Gen. Oblig.:
5.125% 2/15/11 (MBIA Insured) Aaa $ 2,020,000 $ 1,937,645
5.125% 2/15/12 (MBIA Insured) Aaa 2,125,000 2,020,493
5.125% 2/15/13 (MBIA Insured) Aaa 2,235,000 2,099,403
5.125% 2/15/14 (MBIA Insured) Aaa 2,355,000 2,185,817
Granville Gen. Oblig.:
7.3% 7/15/05 (MBIA Insured) Aaa 145,000 160,770
7.3% 7/15/06 (MBIA Insured) Aaa 145,000 162,077
7.3% 7/15/07 (MBIA Insured) Aaa 140,000 157,696
7.3% 7/15/08 (MBIA Insured) Aaa 140,000 158,490
Haverhill Gen. Oblig. Rfdg.
Series A:
6.4% 9/1/03 (AMBAC Insured) Aaa 1,600,000 1,666,336
6.5% 9/1/04 (AMBAC Insured) Aaa 1,595,000 1,662,772
Holyoke Gen. Oblig.:
(Muni. Purp. Ln. Prog.)
Series A:
5.5% 6/15/04 (FSA Insured) Aaa 1,255,000 1,287,592
5.5% 6/15/16 (FSA Insured) Aaa 2,100,000 2,024,757
6% 6/15/05 (FSA Insured) Aaa 1,350,000 1,413,018
6% 6/15/06 (FSA Insured) Aaa 1,300,000 1,364,090
(School Act Ln. Prog.):
7.35% 8/1/02 (Pre-Refunded to Baa1 1,265,000 1,320,647
8/1/01 @ 102) (d)
7.65% 8/1/09 (Pre-Refunded to Baa1 2,205,000 2,343,915
8/1/01 @ 102) (d)
Rfdg. Series B:
5.5% 6/15/04 (FSA Insured) Aaa 2,015,000 2,067,330
6% 6/15/06 (FSA Insured) Aaa 1,400,000 1,469,020
Ipswich Gen. Oblig.:
5.5% 11/15/18 (FGIC Insured) Aaa 2,460,000 2,324,503
5.75% 11/15/14 (FGIC Insured) Aaa 1,100,000 1,097,426
Lowell Gen. Oblig.:
Rfdg. Series A, 5.5% 1/15/10 Aaa 2,000,000 2,007,500
(FSA Insured)
5.8% 4/1/08 (FSA Insured) Aaa 1,195,000 1,230,778
6.25% 8/1/04 (AMBAC Insured) Aaa 2,035,000 2,150,466
6.25% 8/1/05 (AMBAC Insured) Aaa 2,120,000 2,246,416
8.4% 1/15/09 Baa1 1,250,000 1,312,275
Lowell Hsg. Dev. Corp.
Multi-family Rev. Rfdg.
Series A:
7.875% 11/1/00 AAA 130,000 131,372
7.875% 11/1/24 AAA 5,440,000 5,585,574
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Mansfield Gen. Oblig. (Muni. Aaa $ 2,170,000 $ 2,183,237
Purp. Ln. Prog.) 5.5%
8/15/10 (FGIC Insured)
Massachusetts Bay Trans. Auth.:
(Gen. Trans. Sys. Proj.):
Series A:
5% 3/1/23 (FGIC Insured) Aaa 3,460,000 2,890,069
5.375% 3/1/19 Aa2 5,000,000 4,551,350
5.7% 3/1/09 Aa2 5,000,000 5,125,300
5.75% 3/1/26 (FGIC Insured) Aa2 5,500,000 5,188,370
5.8% 3/1/11 Aa2 7,435,000 7,645,857
5.8% 3/1/12 Aa2 3,000,000 3,069,420
6.25% 3/1/05 Aa2 4,480,000 4,722,592
7% 3/1/21 Aa2 1,500,000 1,650,360
Series B, 5.375% 3/1/25 Aaa 8,490,000 7,514,924
(AMBAC Insured)
Series C:
5% 3/1/24 Aa2 9,900,000 8,228,384
5.5% 3/1/08 Aa2 3,000,000 3,046,950
5.5% 3/1/13 (FGIC Insured) Aaa 3,000,000 2,971,290
Series D, 5% 3/1/27 Aa2 3,000,000 2,465,670
Rfdg. (Gen. Trans. Sys. Proj.):
Series A:
5.5% 3/1/12 Aa2 4,350,000 4,340,735
6.25% 3/1/12 Aa2 1,500,000 1,593,645
7% 3/1/07 Aa2 5,000,000 5,517,600
7% 3/1/08 Aa2 1,000,000 1,112,010
Series B, 6.2% 3/1/16 Aa2 27,500,000 28,492,750
Series B:
5.5% 3/1/21 Aa3 4,835,000 4,422,913
6% 3/1/12 Aa3 7,180,000 7,327,836
Series D, 5% 3/1/22 Aa2 5,750,000 4,821,605
Massachusetts College Bldg. Aa2 3,000,000 3,335,250
Auth. Proj. Rev. Rfdg.
Series A, 7.5% 5/1/05
Massachusetts Dev. Fin. Agcy.
Rev.:
(Eastern Nazarene College
Proj.):
5.625% 4/1/19 BBB- 1,800,000 1,572,894
5.625% 4/1/29 BBB- 2,000,000 1,678,840
(Regis College Proj.):
5.25% 10/1/18 BBB- 2,240,000 1,862,650
5.5% 10/1/28 BBB- 5,660,000 4,668,254
Rfdg. (Clark Univ. Issue A3 2,000,000 1,555,420
Proj.) 5% 7/1/28
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ed. Ln. Auth. Aaa $ 2,735,000 $ 2,757,673
Ed. Ln. Rev. Issue E Series
B, 5.75% 7/1/07 (AMBAC
Insured) (c)
Massachusetts Edl. Fing.
Auth. Ed. Ln. Rev.:
Issue E:
4.85% 7/1/02 (AMBAC Insured) Aaa 945,000 945,813
(c)
5.25% 7/1/06 (AMBAC Insured) Aaa 1,855,000 1,856,595
(c)
Issue G Series C, 4.9% AAA 4,815,000 4,476,506
12/1/11 (AMBAC Insured) (c)
Issue G:
4.4% 12/1/04 (MBIA Insured) Aaa 2,950,000 2,844,066
(c)
5% 12/1/11 (MBIA Insured) (c) Aaa 3,815,000 3,585,566
Rfdg. Issue E Series A:
4.3% 7/1/06 (AMBAC Insured) AAA 4,000,000 3,748,720
(c)
4.4% 7/1/07 (AMBAC Insured) AAA 6,275,000 5,833,240
(c)
4.55% 7/1/09 (AMBAC Insured) AAA 2,000,000 1,862,060
(c)
4.65% 7/1/10 (AMBAC Insured) AAA 4,745,000 4,393,917
(c)
4.75% 7/1/11 (AMBAC Insured) AAA 4,000,000 3,685,520
(c)
4.8% 7/1/12 (AMBAC Insured) AAA 2,110,000 1,938,183
(c)
4.95% 7/1/14 (AMBAC Insured) AAA 4,000,000 3,669,400
(c)
5% 7/1/15 (AMBAC Insured) (c) AAA 1,880,000 1,722,080
Massachusetts Gen. Oblig.:
(Cap. Appreciation)
(Consolidated Ln. Prog.):
Series B:
0% 6/1/02 (FGIC Insured) Aaa 1,105,000 985,671
0% 6/1/02 (FGIC Insured) Aaa 3,895,000 3,477,534
(Escrowed to Maturity) (d)
0% 7/1/02 Aa2 12,250,000 10,882,533
Series C, 0% 12/1/05 Aa2 6,500,000 4,783,870
(Consolidated Ln. Prog.):
Series A:
5% 3/1/08 (AMBAC Insured) Aaa 9,900,000 9,745,164
7.5% 6/1/04 Aa2 4,830,000 5,209,686
Series C:
5.25% 9/1/08 Aa2 3,000,000 2,998,170
5.25% 8/1/09 Aa2 13,650,000 13,552,403
Series D:
5% 11/1/14 Aa2 3,000,000 2,729,760
5.25% 11/1/12 Aa2 5,000,000 4,822,150
Rfdg. Series B, 6.5% 8/1/08 Aa2 9,500,000 10,273,205
(Escrowed to Maturity) (d)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl.
Facilities Auth. Rev.:
(1st Mtg. Fairview Extended Aaa $ 5,355,000 $ 5,728,672
Care Proj.) Series A,
10.125% 1/1/11 (Pre-Refunded
to 1/1/01 @ 103) (d)
(Anna Jaques Hosp. Proj.)
Series B:
6% 10/1/00 Baa1 985,000 994,003
6.875% 10/1/12 Baa1 3,250,000 3,279,608
(Baystate Med. Ctr. Proj.):
Series D, 5.5% 7/1/16 (FGIC Aaa 6,400,000 6,060,416
Insured)
Series E:
6% 7/1/04 (FSA Insured) Aaa 1,290,000 1,339,859
6% 7/1/05 (FSA Insured) Aaa 1,385,000 1,442,824
6% 7/1/06 (FSA Insured) Aaa 1,425,000 1,486,204
(Blood Research Institute - 14,775,000 14,756,384
Proj.) Series A, 6.5% 2/1/22
(Boston College Issue Proj.)
Series L:
5.25% 6/1/10 Aa3 1,340,000 1,319,337
5.25% 6/1/11 Aa3 1,410,000 1,375,215
(Brandeis Univ. Proj.) Series
I:
5.25% 10/1/14 (MBIA Insured) Aaa 2,780,000 2,611,004
5.25% 10/1/16 (MBIA Insured) Aaa 1,000,000 918,370
(Cape Cod Health Sys. Proj.) AAA 3,500,000 3,307,990
Series A, 5.25% 11/15/13
(AMBAC Insured)
(Dana Farber Cancer Proj.)
Series G1:
5.5% 12/1/27 A1 18,600,000 15,215,358
6.25% 12/1/14 A1 3,000,000 2,970,210
(Falmouth Hosp. Proj.) Series Aaa 1,000,000 1,006,600
C, 5.5% 7/1/08 (MBIA
Insured)
(Faulkner Hosp. Proj.) Series
C:
6% 7/1/13 (Pre-Refunded to Baa1 9,745,000 10,258,464
7/1/03 @ 102) (d)
6% 7/1/23 (Pre-Refunded to Baa1 6,010,000 6,326,667
7/1/03 @ 102) (d)
(Lahey Clinic Med. Ctr. Aaa 14,120,000 13,846,496
Proj.) Series B, 5.25%
7/1/10 (MBIA Insured)
(Lowell Gen. Hosp. Proj.)
Series A:
8.25% 6/1/00 (Escrowed to A3 685,000 688,980
Maturity) (d)
8.4% 6/1/11 (Pre-Refunded to A3 2,565,000 2,744,088
6/1/01 @ 102) (d)
(Med. Academic & Scientific BBB 5,150,000 5,224,315
Commission Organizations
Proj.) Series A, 6.625%
1/1/15
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl.
Facilities Auth. Rev.: -
continued
(MIT Proj.) Series I1, 5.2% Aaa $ 4,000,000 $ 3,490,840
1/1/28
(Mount Auburn Hosp. Proj.)
Series B1:
6.25% 8/15/14 (MBIA Insured) Aaa 1,250,000 1,280,000
6.3% 8/15/24 (MBIA Insured) Aaa 5,000,000 5,014,800
(New England Med. Ctr. Hosp.
Proj.):
Series F, 6.625% 7/1/25 (FGIC Aaa 4,850,000 4,933,275
Insured)
Series G, 5.375% 7/1/24 (MBIA Aaa 1,000,000 887,570
Insured)
(Notre Dame Health Care Ctr.
Proj.) Series A:
7.25% 10/1/01 - 260,000 263,562
7.875% 10/1/22 - 5,000,000 5,189,450
(Partners Health Care Sys.
Proj.) Series A:
5.25% 7/1/04 (FSA Insured) Aaa 2,000,000 2,014,620
5.375% 7/1/24 (MBIA Insured) Aaa 7,600,000 6,642,780
5.5% 7/1/05 (FSA Insured) Aaa 2,000,000 2,031,980
5.5% 7/1/07 (FSA Insured) Aaa 2,390,000 2,414,402
(Simmons College Proj.):
Series B, 7.5% 10/1/20 Baa1 6,190,000 6,445,276
Series C, 5% 10/1/19 (MBIA Aaa 4,190,000 3,570,969
Insured)
(South Shore Hosp. Proj.)
Series F:
4.75% 7/1/05 A2 1,275,000 1,202,873
5.125% 7/1/08 A2 2,000,000 1,850,680
5.25% 7/1/09 A2 2,120,000 1,952,478
5.625% 7/1/19 A2 1,000,000 845,490
5.75% 7/1/29 A2 3,600,000 2,964,528
(UMass Memorial Issue Proj.)
Series A:
5% 7/1/18 (AMBAC Insured) Aaa 3,000,000 2,586,360
5.25% 7/1/14 (AMBAC Insured) Aaa 1,000,000 935,260
(Wellesley College Proj.) Aa1 8,050,000 6,589,247
Series F, 5.125% 7/1/39
(Williams College Issue Proj.):
Series F, 5.75% 7/1/19 Aaa 3,000,000 2,877,540
Series G, 5.5% 7/1/14 Aaa 3,665,000 3,557,286
Rfdg.:
(Amherst College Proj.)
Series G:
5% 11/1/23 Aa1 4,220,000 3,538,639
5% 11/1/28 Aa1 8,960,000 7,358,938
5.25% 11/1/17 Aa1 4,670,000 4,284,445
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl.
Facilities Auth. Rev.: -
continued
Rfdg.: - continued
(Boston College Proj.) Series
K:
5.25% 6/1/10 Aa3 $ 3,025,000 $ 2,978,355
5.375% 6/1/14 Aa3 10,445,000 9,993,254
(Emerson Hosp. Proj.) Series Aaa 9,475,000 9,522,470
D, 5.7% 8/15/12 (FSA Insured)
(Eye & Ear Infirmary Proj.)
Series B:
5.25% 7/1/08 (American Cap. A 2,000,000 1,945,720
Access Corp. Insured)
5.25% 7/1/09 (American Cap. A 2,540,000 2,479,599
Access Corp. Insured)
5.25% 7/1/10 (American Cap. A 2,000,000 1,930,500
Access Corp. Insured)
5.25% 7/1/11 (American Cap. A 3,025,000 2,893,322
Access Corp. Insured)
(Fairview Extended Care Aaa 6,400,000 6,332,800
Proj.) Series B, 4.55%
1/1/21 (MBIA Insured)
(Harvard Univ. Proj.) Series P:
5.6% 11/1/14 Aaa 1,000,000 987,790
5.625% 11/1/28 Aaa 1,500,000 1,415,490
6.5% 11/1/05 Aaa 1,000,000 1,076,890
(Massachusetts Gen. Hosp. Aaa 4,750,000 5,056,755
Proj.) Series F, 6.25%
7/1/12 (AMBAC Insured)
(Morton Hosp. & Med. Ctr. AAA 2,800,000 2,779,448
Proj.) Series B, 5.25%
7/1/08 (AMBAC Insured)
(Newton-Wellesley Hosp.
Proj.) Series G:
6% 7/1/12 (MBIA Insured) Aaa 4,070,000 4,191,530
6.125% 7/1/15 (MBIA Insured) Aaa 4,500,000 4,563,180
(Partners Health Care Sys.
Proj.) Series B:
3.85% 7/1/02 A1 1,000,000 964,920
3.95% 7/1/03 A1 1,000,000 951,750
5% 7/1/01 A1 2,000,000 1,998,020
(Wheaton College Proj.)
Series C:
5.125% 7/1/09 A2 1,130,000 1,085,681
5.25% 7/1/14 A2 2,655,000 2,468,486
5.25% 7/1/19 A2 2,000,000 1,780,460
Series A:
5.25% 7/1/01 Baa2 2,000,000 1,981,740
5.25% 7/1/02 Baa2 2,000,000 1,963,180
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl.
Facilities Auth. Rev.: -
continued
Series A: - continued
5.25% 7/1/03 Baa2 $ 2,000,000 $ 1,940,480
5.95% 8/15/18 (FGIC Insured) Aaa 7,900,000 7,785,292
6.55% 6/23/22 (AMBAC Insured) Aaa 20,000,000 20,643,800
Massachusetts Hsg. Fin. Agcy.
Hsg. Rev.:
(Single Family Proj.) Series
40:
6.6% 12/1/24 (c) Aa 19,375,000 19,593,356
6.65% 12/1/27 (c) Aa 6,930,000 7,028,129
Rfdg.:
(Single Family Proj.) Series Aaa 1,320,000 1,294,590
53, 5.2% 12/1/21 (MBIA
Insured) (c)
Series A, 6% 12/1/13 (MBIA Aaa 5,525,000 5,566,327
Insured)
Series 29, 6.75% 6/1/26 (c) Aa 2,580,000 2,624,995
Massachusetts Hwy. Grant
Anticipation Notes:
Series A:
5.25% 6/15/09 Aa2 3,490,000 3,447,317
5.25% 6/15/12 Aa2 5,000,000 4,817,150
5.5% 6/15/14 Aa2 3,000,000 2,909,100
Series B:
5.125% 12/15/11 Aa2 10,030,000 9,633,013
5.125% 12/15/12 Aa2 5,480,000 5,202,602
Massachusetts Ind. Fin. Agcy. A1 9,900,000 9,386,091
Poll. Cont. Rev. Rfdg.
(Boston Edison Co. Proj.)
Series A, 5.75% 2/1/14
Massachusetts Ind. Fin. Agcy.
Resource Recovery Rev. Rfdg.
(Ogden Haverhill Proj.):
Series A, 4.7% 12/1/03 BBB 3,000,000 2,878,020
Series A, 4.8% 12/1/04 BBB 3,570,000 3,390,679
Massachusetts Ind. Fin. Agcy.
Rev.:
(Babson College Proj.) Series
A:
5.6% 10/1/06 (MBIA Insured) Aaa 515,000 527,829
5.7% 11/1/07 (MBIA Insured) Aaa 545,000 560,969
(Cap. Appreciation)
(Massachusetts Biomedical
Research Corp. Proj.):
Series A1, 0% 8/1/02 A1 3,650,000 3,221,454
Series A2:
0% 8/1/03 A1 1,000,000 835,780
0% 8/1/05 A1 24,600,000 18,325,770
0% 8/1/07 A+ 25,000,000 16,531,250
0% 8/1/08 A+ 15,000,000 9,333,300
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy.
Rev.: - continued
(Concord Academy Proj.) 6.9% Aaa $ 1,370,000 $ 1,443,720
9/1/21 (FSA Insured)
(Pre-Refunded to 9/1/01 @
102) (d)
(Groton School Proj.) Series Aa2 5,000,000 4,125,550
A, 5% 3/1/28
(Tufts Univ. Proj.) Series H, Aaa 10,000,000 7,785,599
4.75% 2/15/28 (MBIA Insured)
(Whitehead Institute Aa1 14,600,000 12,142,528
Biomedical Research Proj.)
5.125% 7/1/26
Rfdg.:
(Lesley College Proj.) Series AAA 2,525,000 2,587,696
A, 6.3% 7/1/15 (AMBAC
Insured)
(Milton Academy Proj.) Series Aaa 2,500,000 2,229,600
B, 5.25% 9/1/19 (MBIA
Insured)
(Springfield College Proj.):
5.25% 9/15/03 Baa1 755,000 749,813
5.25% 9/15/04 Baa1 885,000 872,796
5.35% 9/15/05 Baa1 930,000 915,511
(Worcester Polytechnic
Institute Proj.):
5.75% 9/1/05 (MBIA Insured) Aaa 1,340,000 1,384,689
5.75% 9/1/06 (MBIA Insured) Aaa 1,115,000 1,151,739
5.75% 9/1/07 (MBIA Insured) Aaa 1,500,000 1,548,240
5.75% 9/1/08 (MBIA Insured) Aaa 1,585,000 1,633,802
Massachusetts Muni. Wholesale
Elec. Co. Pwr. Supply Sys.
Rev.:
Rfdg.:
Series A:
5.1% 7/1/08 (AMBAC Insured) Aaa 1,000,000 985,940
6% 7/1/18 (MBIA Insured) Aaa 10,000,000 9,909,900
6.75% 7/1/08 Baa2 3,000,000 3,129,120
Series B:
4.75% 7/1/11 (MBIA Insured) Aaa 2,000,000 1,799,100
6.5% 7/1/02 (MBIA Insured) Aaa 2,000,000 2,077,820
6.625% 7/1/04 Baa2 7,925,000 8,313,721
6.75% 7/1/08 Baa2 6,000,000 6,258,240
Series C, 6.6% 7/1/05 Baa2 2,075,000 2,170,803
Series B, 6.75% 7/1/17 Baa2 9,050,000 9,192,719
Series C, 6.625% 7/1/18 (MBIA Aaa 10,000,000 10,296,100
Insured)
Series D:
6% 7/1/06 Baa2 1,000,000 1,023,150
6% 7/1/11 (MBIA Insured) Aaa 2,000,000 2,066,100
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Muni. Wholesale
Elec. Co. Pwr. Supply Sys.
Rev.: - continued
Series E:
6% 7/1/06 Baa2 $ 1,640,000 $ 1,677,966
6% 7/1/11 (MBIA Insured) Aaa 2,000,000 2,066,100
Massachusetts Port Auth. Rev.:
(Spl. Facilities-US Air Aaa 2,030,000 2,017,719
Proj.) Series A, 5.5% 9/1/10
(MBIA Insured) (c)
Rfdg. Series A:
5% 7/1/13 Aa3 5,000,000 4,602,250
5% 7/1/23 Aa3 8,750,000 7,327,512
5.5% 7/1/09 Aa3 3,160,000 3,170,554
5.5% 7/1/17 Aa3 2,105,000 1,993,856
Series A:
6% 7/1/03 Aa3 1,000,000 1,034,120
6% 7/1/04 Aa3 1,390,000 1,445,392
Series B:
5.5% 7/1/10 (FSA Insured) (c) Aaa 11,470,000 11,401,180
5.5% 7/1/11 (FSA Insured) (c) Aaa 5,500,000 5,428,665
5.5% 7/1/12 (FSA Insured) (c) Aaa 4,000,000 3,917,320
5.5% 7/1/14 (FSA Insured) (c) Aaa 5,335,000 5,112,797
Series C, 5.75% 7/1/29 Aa3 5,000,000 4,677,950
5.625% 7/1/12 (Escrowed to Aaa 1,830,000 1,833,294
Maturity) (d)
Massachusetts Spl. Oblig. Rev.:
(Hwy. Impt. Ln. Proj.) Series Aa2 5,000,000 5,138,050
A, 6% 6/1/13 (AMBAC Insured)
(Pre-Refunded to 6/1/02 @
100) (d)
Series A, 5.8% 6/1/14 Aa2 4,185,000 4,353,948
(Pre-Refunded to 6/1/04 @
101) (d)
Massachusetts Tpk. Auth. Aaa 15,700,000 13,441,398
Metro. Hwy. Sys. Rev. Series
A, 5.125% 1/1/23 (MBIA
Insured)
Massachusetts Tpk. Auth. Aaa 45,495,000 45,090,985
Western Tpk. Rev. Series A,
5.55% 1/1/17 (MBIA Insured)
Massachusetts Wtr. Poll.
Abatement Rev. (Pooled Ln.
Prog.):
Series 3:
5.4% 2/1/10 Aaa 1,700,000 1,702,669
5.5% 2/1/13 Aaa 6,715,000 6,651,275
6% 2/1/06 Aaa 3,000,000 3,149,970
6% 2/1/07 Aaa 4,795,000 5,045,970
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Wtr. Poll.
Abatement Rev. (Pooled Ln.
Prog.): - continued
Series 4:
5.125% 8/1/11 Aaa $ 3,245,000 $ 3,140,965
5.125% 8/1/14 Aaa 2,205,000 2,061,763
Massachusetts Wtr. Poll.
Abatement Trust Wtr. Poll.
Abatement Rev.:
(MWRA Ln. Prog.) Series A:
5% 8/1/15 Aa1 50,000 44,939
5.25% 8/1/12 Aa1 565,000 548,666
5.25% 8/1/13 Aa1 330,000 316,038
5.25% 8/1/13 (Escrowed to Aa1 2,670,000 2,574,975
Maturity) (d)
5.25% 8/1/14 Aa1 290,000 272,789
5.25% 8/1/14 (Escrowed to Aa1 2,710,000 2,585,638
Maturity) (d)
5.375% 8/1/15 (Escrowed to Aa1 4,000,000 3,827,720
Maturity) (d)
5.375% 8/1/16 Aa1 125,000 116,981
5.375% 8/1/16 (Escrowed to Aa1 1,875,000 1,785,375
Maturity) (d)
5.45% 2/1/13 (Escrowed to Aa1 1,960,000 1,927,778
Maturity) (d)
6% 8/1/04 Aa1 880,000 919,688
6% 8/1/05 Aa1 335,000 350,176
(Pooled Ln. Prog.) Series 1:
5.3% 2/1/05 Aaa 1,000,000 1,015,390
5.45% 2/1/07 Aaa 2,000,000 2,032,580
Series A:
5% 8/1/15 (Escrowed to Aa1 950,000 872,993
Maturity) (d)
5.25% 8/1/12 (Escrowed to Aa1 3,935,000 3,836,507
Maturity) (d)
5.45% 2/1/13 Aa1 140,000 137,145
6% 8/1/02 Aa1 555,000 572,716
6% 8/1/02 (Escrowed to Aa1 1,445,000 1,488,379
Maturity) (d)
6% 8/1/04 (Escrowed to Aa1 2,790,000 2,911,309
Maturity) (d)
6% 8/1/05 (Escrowed to Aa1 1,165,000 1,219,802
Maturity) (d)
Massachusetts Wtr. Resources
Auth. Rev.:
Rfdg.:
Series B:
4.5% 8/1/22 (FSA Insured) Aaa 1,000,000 771,860
5% 3/1/22 A1 13,000,000 10,928,060
5.5% 8/1/15 (FSA Insured) Aaa 2,750,000 2,633,730
5.5% 8/1/16 (FSA Insured) Aaa 1,425,000 1,369,439
5.875% 11/1/04 A1 1,975,000 2,050,465
6% 11/1/08 A1 4,500,000 4,634,055
6.25% 11/1/10 A1 4,930,000 5,125,918
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Wtr. Resources
Auth. Rev.: - continued
Rfdg.:
Series C, 4.75% 12/1/23 A1 $ 13,000,000 $ 10,337,860
Series A:
5.8% 8/1/11 (MBIA Insured) Aaa 2,740,000 2,870,314
(Pre-Refunded to 8/1/04 @
101.5) (d)
6.5% 7/15/09 A1 4,250,000 4,564,203
6.5% 7/15/19 A1 16,960,000 17,812,749
Mendon Upton Reg'l. School
District:
5% 6/1/08 (FGIC Insured) Aaa 1,215,000 1,191,502
5.125% 6/1/09 (FGIC Insured) Aaa 1,285,000 1,255,831
5.125% 6/1/10 (FGIC Insured) Aaa 1,355,000 1,320,854
5.25% 6/1/11 (FGIC Insured) Aaa 1,435,000 1,401,966
Methuen Gen. Oblig.:
5% 11/1/16 (FGIC Insured) Aaa 1,500,000 1,335,060
5.25% 11/1/07 (FGIC Insured) Aaa 1,355,000 1,360,894
5.25% 11/1/08 (FGIC Insured) Aaa 1,415,000 1,411,151
5.25% 11/1/09 (FGIC Insured) Aaa 1,480,000 1,462,477
5.25% 11/1/10 (FGIC Insured) Aaa 1,550,000 1,525,433
Nantucket Gen. Oblig. Rfdg.:
5% 7/15/17 (MBIA Insured) Aaa 5,000,000 4,393,250
5.375% 7/15/11 (MBIA Insured) Aaa 2,005,000 1,976,329
Nantucket Island Land Bank A1 6,175,000 6,520,306
Rfdg. Series E, 7.25% 7/1/19
(Pre-Refunded to 7/1/01 @
102) (d)
New England Ed. Ln. Marketing A3 7,805,000 7,932,690
Corp. Massachusetts Rfdg.
(Student Ln. Prog.) Series
A, 5.7% 7/1/05 (c)
New England Ed. Ln. Marketing
Corp. Massachusetts Student
Ln. Rev.:
Issue A, 5.8% 3/1/02 Aaa 37,155,000 37,798,896
Sub Issue C, 6.75% 9/1/02 (c) A 1,250,000 1,287,000
North Attleborough Gen. Aaa 1,000,000 951,600
Oblig. Rfdg. 5.25% 11/1/13
(AMBAC Insured)
Pentucket Reg'l. School
District:
5.1% 2/15/11 (MBIA Insured) Aaa 330,000 315,873
5.1% 2/15/12 (MBIA Insured) Aaa 220,000 207,788
5.1% 2/15/13 (MBIA Insured) Aaa 575,000 537,309
5.1% 2/15/14 (MBIA Insured) Aaa 525,000 484,622
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
South Essex Swr. District:
Rfdg. Series A:
5.25% 6/15/24 (MBIA Insured) Aaa $ 2,810,000 $ 2,460,211
6% 6/15/03 (MBIA Insured) Aaa 2,390,000 2,480,270
6% 6/15/04 (MBIA Insured) Aaa 2,375,000 2,482,944
6% 6/15/05 (MBIA Insured) Aaa 1,175,000 1,229,849
6% 6/15/06 (MBIA Insured) Aaa 2,305,000 2,418,637
Series B, 7% 6/1/24 (MBIA Aaa 1,000,000 1,096,720
Insured) (Pre-Refunded to
6/1/04 @ 102) (d)
Southern Berkshire Reg'l. Aaa 4,000,000 4,263,760
School District 7% 4/15/11
(MBIA Insured)
Taunton Ind. Dev. Fin. Auth. A1 2,400,000 2,462,544
Ind. Dev. Rev. Rfdg. (Pepsi
Cola Metro. Bottle Proj.)
5.65% 8/1/12
Westfield Gen. Oblig. (Muni.
Purp. Ln. Prog.):
5% 9/1/10 (FSA Insured) Aaa 545,000 519,292
5% 9/1/12 (FSA Insured) Aaa 745,000 695,756
5% 9/1/13 (FSA Insured) Aaa 750,000 695,843
Winchendon School Proj. Ln. Aaa 1,275,000 1,314,538
6.05% 3/15/12 (AMBAC Insured)
Woods Hole Martha's Vineyard Aa2 1,100,000 1,061,159
& Nantucket Steamship Rfdg.
Series A, 5.125% 3/1/11
Worcester Gen. Oblig. (Muni.
Purp. Ln. Prog.) Series A:
5.5% 4/1/10 (FSA Insured) Aaa 1,265,000 1,265,266
5.5% 4/1/11 (FSA Insured) Aaa 2,850,000 2,839,142
5.75% 4/1/12 (FSA Insured) Aaa 2,935,000 2,969,545
1,210,713,862
PUERTO RICO - 0.5%
Puerto Rico Commonwealth Gen. Aaa 7,500,000 6,653,475
Oblig. Rfdg. (Pub. Impt.
Proj.) 3% 7/1/06 (MBIA
Insured)
TOTAL MUNICIPAL BONDS 1,220,315,302
(Cost $1,248,578,991)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL NOTES - 1.1%
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - 1.1%
Massachusetts Health & Edl.
Facilities Auth. Rev. (Cap.
Asset Prog.):
Series B, 3.55% (MBIA $ 1,000,000 $ 1,000,000
Insured), VRDN (b)
Series C, 3.55% (MBIA 700,000 700,000
Insured), VRDN (b)
Series E, 3.55%, LOC Bank One 12,500,000 12,500,000
NA, Chicago, VRDN (b)
TOTAL MUNICIPAL NOTES 14,200,000
(Cost $14,200,000)
TOTAL INVESTMENT PORTFOLIO - 1,234,515,302
98.7% (Cost $1,262,778,991)
NET OTHER ASSETS - 1.3% 15,934,055
NET ASSETS - 100% $ 1,250,449,357
</TABLE>
SECURITY TYPE ABBREVIATIONS
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) S&P 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.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 81.6% AAA, AA, A 74.9%
Baa 6.1% BBB 5.7%
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 1.9%.
The distribution of municipal securities by revenue source, as a
percentage of net assets, is as follows:
General Obligations 21.7%
Health Care 18.1
Education 16.4
Water & Sewer 9.7
Transportation 8.8
Escrowed/Pre-Refunded 7.2
Electric Utilities 5.9
Others* (individually less 12.2
than 5%)
100.0%
* Includes short-term investments and net other assets.
INCOME TAX INFORMATION
At January 31, 2000, the aggregate cost of investment securities for
income tax purposes was $1,262,778,991. Net unrealized depreciation
aggregated $28,263,689, of which $17,588,900 related to appreciated
investment securities and $45,852,589 related to depreciated
investment securities.
The fund hereby designates approximately $2,666,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
The fund hereby designates 100% of the long-term capital gain
dividends distributed during the fiscal year as 20%-rate capital gain
dividends (unaudited).
During the fiscal year ended January 31, 2000, 100% of the fund's
income dividends was free from federal income tax, and 6.87% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 2000
ASSETS
Investment in securities, at $ 1,234,515,302
value (cost $1,262,778,991)
- - See accompanying schedule
Cash 1,648,386
Receivable for investments 2,009,129
sold
Receivable for fund shares 2,342,395
sold
Interest receivable 16,235,200
TOTAL ASSETS 1,256,750,412
LIABILITIES
Payable for investments $ 1,065,344
purchased
Payable for fund shares 3,227,247
redeemed
Distributions payable 1,475,172
Accrued management fee 394,907
Other payables and accrued 138,385
expenses
TOTAL LIABILITIES 6,301,055
NET ASSETS $ 1,250,449,357
Net Assets consist of:
Paid in capital $ 1,285,854,648
Distributions in excess of (667,664)
net investment income
Accumulated undistributed net (6,473,938)
realized gain (loss) on
investments
Net unrealized appreciation (28,263,689)
(depreciation) on investments
NET ASSETS, for 113,519,727 $ 1,250,449,357
shares outstanding
NET ASSET VALUE, offering $11.02
price and redemption price
per share ($1,250,449,357
(divided by) 113,519,727
shares)
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 2000
INTEREST INCOME $ 73,325,609
EXPENSES
Management fee $ 5,156,574
Transfer agent fees 1,025,219
Accounting fees and expenses 308,849
Non-interested trustees' 3,773
compensation
Custodian fees and expenses 44,823
Registration fees 19,489
Audit 32,282
Legal 6,323
Reports to shareholders 19,244
Miscellaneous 2,649
Total expenses before 6,619,225
reductions
Expense reductions (37,433) 6,581,792
NET INTEREST INCOME 66,743,817
REALIZED AND UNREALIZED GAIN 2,731,736
(LOSS)
Net realized gain (loss) on
investment securities
Change in net unrealized (121,641,113)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) (118,909,377)
NET INCREASE (DECREASE) IN $ (52,165,560)
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Custodian credits $ 20,190
Transfer agent credits 17,243
$ 37,433
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 2000 YEAR ENDED JANUARY 31, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 66,743,817 $ 62,326,338
Net realized gain (loss) 2,731,736 6,547,818
Change in net unrealized (121,641,113) 5,776,832
appreciation (depreciation)
NET INCREASE (DECREASE) IN (52,165,560) 74,650,988
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders
From net interest income (65,874,659) (62,326,338)
From net realized gain (2,917,419) (3,424,113)
TOTAL DISTRIBUTIONS (68,792,078) (65,750,451)
Share transactions Net 428,856,656 411,256,684
proceeds from sales of shares
Reinvestment of distributions 50,405,206 49,879,270
Cost of shares redeemed (502,589,047) (307,453,574)
NET INCREASE (DECREASE) IN (23,327,185) 153,682,380
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) (144,284,823) 162,582,917
IN NET ASSETS
NET ASSETS
Beginning of period 1,394,734,180 1,232,151,263
End of period (including $ 1,250,449,357 $ 1,394,734,180
distributions in excess of
net investment income of
$667,664 and $0,
respectively)
OTHER INFORMATION
Shares
Sold 37,090,556 34,483,365
Issued in reinvestment of 4,390,234 4,178,914
distributions
Redeemed (43,811,523) (25,779,793)
Net increase (decrease) (2,330,733) 12,882,486
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED JANUARY 31, 2000 1999 1998 1997 1996
SELECTED PER-SHARE DATA
Net asset value, beginning $ 12.040 $ 11.970 $ 11.430 $ 11.700 $ 10.800
of period
Income from Investment .565 C .571 .593 .605 .652
Operations Net interest
income
Net realized and unrealized (1.000) .100 .542 (.266) .902
gain (loss)
Total from investment (.435) .671 1.135 .339 1.554
operations
Less Distributions
From net interest income (.560) (.571) (.593) (.605) (.654)
From net realized gain (.025) (.030) (.002) (.004) -
Total distributions (.585) (.601) (.595) (.609) (.654)
Net asset value, end of period $ 11.020 $ 12.040 $ 11.970 $ 11.430 $ 11.700
TOTAL RETURN A (3.70)% 5.76% 10.21% 3.06% 14.76%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,250,449 $ 1,394,734 $ 1,232,151 $ 1,127,851 $ 1,170,207
(000 omitted)
Ratio of expenses to average .49% .51% .53% .56% .55%
net assets
Ratio of expenses to average .48% B .51% .53% .56% .54% B
net assets after expense
reductions
Ratio of net interest income 4.91% 4.80% 5.10% 5.29% 5.80%
to average net assets
Portfolio turnover rate 22% 12% 21% 44% 33%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C NET INTEREST INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
SPARTAN MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical 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 does not include 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 life of fund
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 2000 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
SPARTAN MA MUNICIPAL MONEY 2.83% 16.32% 29.38%
MARKET
Massachusetts Tax-Free Retail 2.61% 15.51% n/a
Money Market Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 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 retail money market funds average, which reflects the
performance of mutual funds with similar objectives tracked by IBC
Financial Data, Inc. The past one year average represents a peer group
of 10 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 2000 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
SPARTAN MA MUNICIPAL MONEY 2.83% 3.07% 2.93%
MARKET
Massachusetts Tax-Free Retail 2.61% 2.92% 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
1/31/00 11/1/99 8/2/99 5/3/99 2/1/99
Spartan Massachusetts 2.85% 2.95% 2.63% 3.01% 2.48%
Municipal Money Market Fund
Massachusetts Tax-Free 2.61% 2.68% 2.46% 2.88% 2.24%
Retail Money Market Funds
Average
Spartan Massachusetts 4.73% 4.90% 4.37% 5.00% 4.12%
Municipal Money Market Fund
- - Tax-equivalent
Portion of fund's income 4.15% 7.28% 4.08% 1.49% 7.31%
subject to state taxes
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
table 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 retail 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 2000 federal and state
income tax rate of 39.74%. The fund's yields mentioned above reflect
that a portion of the fund's income was subject to state taxes. 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
(PHOTOGRAPH OF SCOTT ORR)
An interview with Scott Orr, Portfolio Manager of Spartan
Massachusetts Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE 12
MONTHS THAT ENDED JANUARY 31, 2000?
A. As the period started, economic growth in the U.S. was fairly
robust and employment strengthened. In addition, data began to
indicate that inflation might not be as well-behaved as it had been in
the recent past. Faced with that backdrop, market observers began to
feel that the Federal Reserve Board would raise short-term interest
rates to slow growth and head off inflation. Through the rest of the
period, economic growth remained solid and unemployment stayed at
historically low levels. Such a tight labor market often leads to
inflation, as employers are forced to raise salaries in order to
attract or retain workers, passing on the additional cost to the
consumer. The Fed indicated that improvements in worker productivity
had helped keep inflation at bay. Nevertheless, with constant,
broad-based economic strength and continually tight labor markets
throughout 1999, the Fed felt compelled to take back all three of the
rate cuts it had implemented in the fall of 1998, which it had used to
head off global economic turmoil present at that time. It did so with
a series of three 0.25 percentage point rate hikes in June, August and
November, raising the rate banks charge each other for overnight loans
- - known as the fed funds rate - from 4.75% at the beginning of the
period to 5.50% by the end of 1999.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. The fund began the period with an average maturity in the
mid-40-day range. This was a fairly neutral position, given the fact
that we had just emerged from a period when the Fed was lowering
rates, but was expected to raise rates in the future. For most of the
period, I maintained that neutral posture, at the same time looking
for yield opportunities among longer-term, fixed-rate notes that
incorporated my expectation for higher rates. In the fall of 1999, I
extended the fund's maturity to the high-60-day range for a short
time, because increased issuance in the Massachusetts market caused
fixed-rate yields to become relatively attractive. That was the only
interval in which I more aggressively purchased fixed-rate notes to
extend the fund's average maturity. In addition, I turned some of my
focus - within the limits set by the fund's prospectus - to
out-of-state investment opportunities that offered more appealing
after-tax yields than tax-free alternatives in the Massachusetts
market. Even though more of shareholders' income will be taxable at
the state level this year because of the out-of-state investments, I
pursued this strategy so the fund could provide higher yields on a
tax-adjusted basis than if I had chosen to invest the same assets in
significantly lower-yielding, tax-exempt Massachusetts securities.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 2000, was 2.85%, compared
to 2.51% 12 months ago. The more recent seven-day yield was the
equivalent of a 4.73% taxable rate of return for Massachusetts
investors in the 39.74% combined state and federal income tax bracket.
The fund's yields reflect that a portion of the fund's income was
subject to state taxes. Through January 31, 2000, the fund's 12-month
total return was 2.83%, compared to 2.61% for the Massachusetts
tax-free retail money market funds average, according to IBC Financial
Data, Inc.
Q. WHAT IS YOUR OUTLOOK?
A. The market anticipates that the Fed's next rate increase will occur
in early February, just after the end of the fund's fiscal year.
Productivity gains have offset the inflationary pressures often
sparked by tight employment and solid growth. I believe it is likely
the Fed will raise rates again to slow growth and prevent inflation
from cropping up, in an attempt to stay ahead of the curve if gains in
productivity are not sustained. The timing and scope of any Fed rate
hikes would most probably be dictated by the pace of the economy and
the tightness of the labor market.
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 AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
FUND FACTS
GOAL: high level of income,
exempt from federal and
Massachusetts personal
income tax, as is consistent
with preservation of capital
and liquidity
FUND NUMBER: 426
TRADING SYMBOL: FMSXX
START DATE: March 4, 1991
SIZE: as of January 31,
2000, more than $831
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
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 1/31/00 % OF FUND'S INVESTMENTS 7/31/99 % OF FUND'S INVESTMENTS 1/31/99
0 - 30 65.0 62.9 69.4
31 - 90 17.5 18.8 17.4
91 - 180 5.8 6.2 6.4
181 - 397 11.7 12.1 6.8
WEIGHTED AVERAGE MATURITY
1/31/00 7/31/99 1/31/99
Spartan Massachusetts 54 Days 53 Days 43 Days
Municipal Money Market Fund
Massachusetts Tax-Free
Money 50 Days 50 Days 45 Days
Market Funds Average*
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF JANUARY 31, 2000 AS OF JULY 31, 1999
Variable Rate Demand Notes Variable Rate Demand Notes
(VRDNs) 47.9% (VRDNs) 50.6%
Commercial Paper (including Commercial Paper (including
CP Mode) 18.5% CP Mode) 19.0%
Tender Bonds 0.8% Tender Bonds 0.4%
Municipal Notes 22.9% Municipal Notes 22.7%
Other Investments and Net Other Investments and Net
Other Assets 9.9% Other Assets 7.3%
</TABLE>
Row: 1, Col: 1, Value: 47.9
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 18.5
Row: 1, Col: 4, Value: 0.8
Row: 1, Col: 5, Value: 0.8
Row: 1, Col: 6, Value: 4.0
Row: 1, Col: 7, Value: 22.9
Row: 1, Col: 8, Value: 9.9
Row: 1, Col: 1, Value: 50.6
Row: 1, Col: 2, Value: nil
Row: 1, Col: 3, Value: 19.0
Row: 1, Col: 4, Value: nil
Row: 1, Col: 5, Value: 0.4
Row: 1, Col: 6, Value: 3.5
Row: 1, Col: 7, Value: 22.9
Row: 1, Col: 8, Value: 7.3
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
INVESTMENTS JANUARY 31, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 96.5%
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - 92.5%
Acton & Boxborough Reg'l. $ 3,000,000 $ 3,009,249
School District BAN 4.25%
12/14/00
Beverly Gen. Oblig. BAN 4.5% 5,800,000 5,824,492
9/14/00
Billerica Gen. Oblig. BAN 4% 3,200,000 3,206,935
7/14/00
Boston Ind. Dev. Rev. (New 600,000 600,000
Boston Seafood Ctr. Proj.)
Series 1997, 3.3%, LOC
BankBoston NA, VRDN (b)(e)
Boston Wtr. & Swr. Commission 5,100,000 5,100,000
Rev. Participating VRDN
Series SG 75, 3.12%
(Liquidity Facility Societe
Generale) (b)(g)
Bourne Gen. Oblig. BAN 4.5% 3,612,000 3,621,944
9/29/00
Bridgewater Gen. Oblig. BAN 2,900,000 2,901,318
4.25% 1/19/01
Brookline Gen. Oblig. BAN:
3.5% 6/1/00 5,200,000 5,205,313
3.75% 6/1/00 3,900,000 3,902,888
4% 4/12/00 2,300,000 2,300,747
Chelmsford Gen. Oblig. BAN 2,500,000 2,500,156
3.5% 2/10/00
Everett Gen. Oblig. BAN 4.25% 5,000,000 5,000,852
2/17/00
Foxborough Gen. Oblig. BAN 2,200,000 2,206,161
4.25% 11/15/00
Gloucester Gen. Oblig. BAN 4% 3,000,000 3,007,279
8/3/00
Groton-Dunstable Reg'l. 3,050,000 3,056,700
School District BAN 4%
7/27/00
Hanover Gen. Oblig. BAN 4% 2,500,000 2,505,129
6/29/00
Hingham Gen. Oblig. BAN:
4.25% 9/28/00 7,520,000 7,545,188
4.25% 11/15/00 2,700,000 2,707,755
Holliston Gen. Oblig. BAN:
4.25% 9/21/00 2,465,000 2,473,016
4.25% 12/13/00 4,900,000 4,915,059
Hopkinton Gen. Oblig. BAN 4% 9,000,000 9,015,203
8/25/00
Ludlow Gen. Oblig. BAN 4% 2,150,000 2,154,289
7/14/00
Mansfield Gen. Oblig. BAN 6,290,000 6,297,296
4.25% 4/26/00
Marion Gen. Oblig. BAN 4.25% 3,000,000 3,009,685
9/28/00
Marshfield Gen. Oblig. BAN 3,100,000 3,107,215
4.25% 9/8/00
Massachusetts Bay Trans. Auth.:
RAN Series 1999 A, 3.5% 15,500,000 15,500,846
2/25/00
Series 1999, 2.8%, VRDN (b) 200,000 200,000
Series D:
3.55% 3/9/00, CP 5,850,000 5,850,000
3.6% 3/9/00, CP 11,600,000 11,600,000
3.85% 3/9/00, CP 10,000,000 10,000,000
Series E, 3.6% 3/9/00, CP 2,400,000 2,400,000
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Bay Transit $ 4,645,000 $ 4,645,000
Auth. Rev. Participating
VRDN Series 992101, 3.3%
(Liquidity Facility
Citibank, New York NA) (b)(g)
Massachusetts Dev. Fin. Agcy. 1,600,000 1,600,000
Ind. (Charm Sciences, Inc.
Proj.) Series 1999 A, 3.4%,
LOC BankBoston NA, VRDN
(b)(e)
Massachusetts Dev. Fin. Agcy. 3,000,000 3,000,000
Resource Recovery Rev. Bonds
(Ogden Haverhill Proj.)
Series 1999 A, 4.05%, tender
2/3/00 (e)
Massachusetts Dev. Fin. Agcy. 5,000,000 5,000,000
Rev. (Boston Renaissance
Charter School Proj.) Series
1999, 3.25%, LOC BankBoston
NA, VRDN (b)
Massachusetts Gen. Oblig.:
Bonds Series A, 4% 2/1/00 7,755,000 7,755,000
Participating VRDN:
Series 132, 3.25% (Liquidity 2,350,000 2,350,000
Facility Morgan Stanley Dean
Witter & Co.) (b)(g)
Series ROC II 99 11, 3.3% 1,500,000 1,500,000
(Liquidity Facility Salomon
Smith Barney Hldgs., Inc.)
(b)(g)
Rfdg.:
Series 1997 B, 3.2%, VRDN (b) 28,000,000 28,000,000
Series 1998 B, 3.15%, VRDN (b) 21,100,000 21,100,000
Participating VRDN:
Series 35, 3.26% (Liquidity 8,600,000 8,600,000
Facility Morgan Stanley Dean
Witter & Co.) (b)(g)
Series PA 363, 3.12% 4,920,000 4,920,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
Series 1998 A, 3.15%, VRDN (b) 10,960,000 10,960,000
Series D:
3.45% 2/7/00, CP 4,400,000 4,400,000
3.5% 2/7/00, CP 3,000,000 3,000,000
Participating VRDN Series 5,300,000 5,300,000
96C2101, 3.3% (Liquidity
Facility Citibank, New York
NA) (b)(g)
Massachusetts Health & Edl.
Facilities Auth. Rev.:
Bonds (Emerson Hosp. Proj.) 8,000,000 8,293,386
Series C, 8% 7/1/18
(Pre-Refunded to 7/1/00 @
102) (f)
Participating VRDN:
Series 1997 Y, 3.35% 4,435,000 4,435,000
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (b)(g)
Series MLPA 595R, 3.12% 4,000,000 4,000,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl.
Facilities Auth. Rev.: -
continued
Participating VRDN:
Series MSOW98 101, 3.25% $ 4,895,000 $ 4,895,000
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(b)(g)
Series SG 27, 3.12% 3,935,000 3,935,000
(Liquidity Facility Societe
Generale) (b)(g)
(Cap. Asset Prog.):
Series B, 3.55% (MBIA 4,100,000 4,100,000
Insured), VRDN (b)
Series C, 3.55% (MBIA 7,700,000 7,700,000
Insured), VRDN (b)
(Home for Little Wanderers 2,400,000 2,400,000
Proj.) Series B, 3.15%
(Liquidity Facility
BankBoston NA), VRDN (b)
(Partners Health Care Sys.
Proj.):
Series P1, 3.05% (FSA 10,200,000 10,200,000
Insured), VRDN (b)
Series P2, 3.15% (FSA 3,400,000 3,400,000
Insured), VRDN (b)
3.15%, LOC Cr. Local de 1,760,000 1,760,000
France, VRDN (b)
Massachusetts Hsg. Fin. Agcy. 10,000,000 10,000,000
Rfdg. (Hbr. Point Apt.
Proj.) Series 1995 A, 3.2%
(Govt. Nat'l. Mortgage
Assoc. Guaranteed) (BPA HSBC
Bank USA), VRDN (b)
Massachusetts Hsg. Fin. Agcy.
Hsg. Rev. Participating VRDN:
Series 1998 B, 3.2% 15,035,000 15,035,000
(Liquidity Facility Caisse
des Depots et Consignations)
(b)(e)(g)
Series H, 3.35% (Liquidity 8,375,000 8,375,000
Facility First Union Nat'l.
Bank, North Carolina) (b)(g)
Series PA 370, 3.2% 2,400,000 2,400,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(e)(g)
Series PT 212, 3.2% 3,645,000 3,645,000
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (b)(e)(g)
Series PT 33, 3.2% (Liquidity 1,160,000 1,160,000
Facility Banque Nationale de
Paris) (b)(e)(g)
Series PT 42, 3.12% 1,455,000 1,455,000
(Liquidity Facility
Commerzbank AG) (b)(g)
Massachusetts Hsg. Fin. Proj. 3,500,000 3,500,000
Participating VRDN Series PT
250, 3.12% (Liquidity
Facility Bayerische Hypo-und
Vereinsbank AG) (b)(g)
Massachusetts Ind. Fin. Agcy. 1,900,000 1,900,000
Health Care Facilities Auth.
(Jewish Geriatric Svs.
Proj.) 3.25%, LOC BankBoston
NA, VRDN (b)
Massachusetts Ind. Fin. Agcy.
Ind. Dev. Rev.:
(346 Univ. LLC Proj.) Series 1,300,000 1,300,000
1996, 3.4%, LOC BankBoston
NA, VRDN (b)(e)
(Abbott Box Co. Proj.) Series 2,255,000 2,255,000
1997, 3.35%, (Ten Campanelli
Circle Realty Trust) LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy.
Ind. Dev. Rev.: - continued
(Barbour Corp. Proj.) Series $ 2,515,000 $ 2,515,000
1998, 3.35%, LOC Fleet
Nat'l. Bank, VRDN (b)(e)
(Barker Steel Co. Proj.) 800,000 800,000
Series 1995, 3.25%, LOC
State Street Bank & Trust
Co., VRDN (b)(e)
(BBB Esq. LLC Proj.) Series 800,000 800,000
1996, 3.4%, LOC BankBoston
NA, VRDN (b)(e)
(Brady Enterprises Proj.) 1,550,000 1,550,000
Series 1996, 3.35%, LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
(Canton/Cedar Realty LLC 1,400,000 1,400,000
Proj.) Series 1997, 3.35%,
LOC Fleet Nat'l. Bank, VRDN
(b)(e)
(Carand Realty Trust Proj.) 900,000 900,000
Series 1997, 3.2%, LOC State
Street Bank & Trust Co.,
VRDN (b)(e)
(Decas Cranberry Proj.) 2,800,000 2,800,000
Series 1997, 3.35%, LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
(Hazen Paper Co. Proj.) 800,000 800,000
Series 1996, 3.35%, LOC
BankBoston NA, VRDN (b)(e)
(Heat Fab, Inc. Proj.) Series 1,575,000 1,575,000
1996, 3.4%, LOC BankBoston
NA, VRDN (b)(e)
(Lightlife Foods, Inc. Proj.) 2,500,000 2,500,000
Series 1997, 3.35%, LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
(Parker-Hannifin Corp. Proj.) 1,800,000 1,800,000
Series 1997, 3.4%, LOC
Wachovia Bank NA, VRDN (b)(e)
(Riverdale Mills Corp. Proj.) 1,800,000 1,800,000
Series 1995, 3.4%, LOC
BankBoston NA, VRDN (b)(e)
(Sencorp Systems, Inc. Proj.) 2,300,000 2,300,000
Series 1998 A, 3.4%, LOC
BankBoston NA, VRDN (b)(e)
(United Plastics Proj.) 2,000,000 2,000,000
Series 1997, 3.35%, (33
Patriot Circle Trust) LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
Massachusetts Ind. Fin. Agcy.
Poll. Cont. Rev. Rfdg. Bonds
(New England Pwr. Co. Proj.):
Series 1992:
3.55% tender 2/15/00, CP mode 4,300,000 4,300,000
3.75% tender 4/5/00, CP mode 27,000,000 27,000,000
Series 1993 A:
3.5% tender 4/5/00, CP mode 3,200,000 3,200,000
3.55% tender 3/1/00, CP mode 1,700,000 1,700,000
3.6% tender 2/29/00, CP mode 13,700,000 13,700,000
Series 1993 B, 3.5% tender 4,200,000 4,200,000
4/5/00, CP mode
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy.
Rev.:
Participating VRDN:
Series SG 108, 3.12% $ 3,755,000 $ 3,755,000
(Liquidity Facility Societe
Generale) (b)(g)
Series SG 56, 3.12% 7,025,000 7,025,000
(Liquidity Facility Societe
Generale) (b)(g)
(Assumption College Proj.) 2,750,000 2,750,000
Series 1998, 3.3%, LOC Fleet
Nat'l. Bank, VRDN (b)
(Fessenden School Proj.) 3,000,000 3,000,000
Series 1997, 3.3%, LOC Fleet
Nat'l. Bank, VRDN (b)
(Gordon College Proj.) Series 3,900,000 3,900,000
1997, 3.1%, LOC State Street
Bank & Trust Co., VRDN (b)
(Governor Dummer Academy 3,000,000 3,000,000
Proj.) Series 1996, 3.1%,
LOC State Street Bank &
Trust Co., VRDN (b)
(Groton School Proj.) Series 8,000,000 8,000,000
1998 B, 3.15% (Liquidity
Facility Fleet Nat'l. Bank),
VRDN (b)
(JHC Assisted Living Corp. 2,170,000 2,170,000
Proj.) Series 1998 A, 3.25%,
LOC Fleet Bank NA, VRDN (b)
(Mary Ann Morse Nursing Home
Proj.):
Series 1994 A, 3.8%, LOC 3,100,000 3,100,000
ABN-AMRO Bank NV, VRDN (b)
Series 1994 B, 3.2%, LOC 4,500,000 4,500,000
ABN-AMRO Bank NV, VRDN (b)
(Mount Ida College Proj.) 1,700,000 1,700,000
Series 1997, 3.1%, LOC
Credit Local de France, VRDN
(b)
(Society for the Prevention 3,000,000 3,000,000
of Cruelty to Animals Proj.)
Series 1997, 3.15%, LOC
Fleet Nat'l. Bank, VRDN (b)
(Southern New England School 1,400,000 1,400,000
of Law Proj.) 3.3%, LOC
Fleet Nat'l. Bank, VRDN (b)
(Youville Place Proj.) Series 4,400,000 4,400,000
1996, 3.2% (AMBAC Insured)
(BPA Fleet Nat'l. Bank),
VRDN (b)
Rfdg. (Showa Womens Institute 2,300,000 2,300,000
Boston, Inc. 1994 Proj.)
3.6%, LOC Bank of New York
NA, VRDN (b)
Massachusetts Muni. Wholesale
Elec. Co. Pwr. Supply Sys.
Rev.:
Bonds Series FRRI A13, 3.75%, 3,525,000 3,525,000
tender 5/1/00 (Liquidity
Facility Nat'l. Westminster
Bank PLC) (g)
Series 1994 C, 3.05% (MBIA 9,300,000 9,300,000
Insured) (BPA Cr. Swiss
First Boston Bank), VRDN (b)
Series B:
3.55% 2/23/00, LOC Fleet 4,900,000 4,900,000
Nat'l. Bank, CP
3.55% 3/28/00, LOC Fleet 3,400,000 3,400,000
Nat'l. Bank, CP
3.55% 3/29/00, LOC Fleet 2,005,000 2,005,000
Nat'l. Bank, CP
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Port Auth. Rev.
Participating VRDN:
Series MLPA 598, 3.2% $ 5,820,000 $ 5,820,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(e)(g)
Series PA 599R, 3.12% 4,850,000 4,850,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
Series SGA 64, 3.28% 3,405,000 3,405,000
(Liquidity Facility Societe
Generale) (b)(e)(g)
Massachusetts Tpk. Auth.
Metro. Hwy. Sys. Rev.
Participating VRDN:
Series PA 516, 3.12% 2,300,000 2,300,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
Series PT 135, 3.12% 16,790,000 16,790,000
(Liquidity Facility Banco
Santander SA) (b)(g)
Series SG 124, 3.12% 12,200,000 12,200,000
(Liquidity Facility Societe
Generale) (b)(g)
Massachusetts Tpk. Auth. Tpk.
Rev. Participating VRDN:
Series PA 581R, 3.12% 6,360,000 6,360,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
Series Putter 140, 3.23% 2,905,000 2,905,000
(Liquidity Facility Morgan
Guaranty Trust Co., NY)
(b)(g)
Massachusetts Tpk. Auth. 6,150,000 6,150,000
Western Tpk. Rev.
Participating VRDN Series
1997 N, 3.38% (Liquidity
Facility Bank of America NA)
(b)(g)
Massachusetts Wtr. Poll.
Abatement Trust Wtr. Poll.
Abatement Rev.:
Bonds (MWRA Ln. Prog.) Series 4,600,000 4,611,696
A, 4.25% 8/1/00
Participating VRDN:
Series 1999 N, 3.35% 5,070,000 5,070,000
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (b)(g)
Series SGA 87, 3.65% 4,675,000 4,675,000
(Liquidity Facility Societe
Generale) (b)(g)
Massachusetts Wtr. Resources
Auth. Rev.:
Participating VRDN:
Series PT 302, 3.12% 2,400,000 2,400,000
(Liquidity Facility
Landesbank Hessen-Thuringen)
(b)(g)
Series SG 63, 3.12% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale) (b)(g)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Wtr. Resources
Auth. Rev.: - continued
Rfdg. Participating VRDN $ 3,440,000 $ 3,440,000
Series SG 17, 3.12%
(Liquidity Facility Societe
Generale) (b)(g)
Series 1997 B, 3.05% (AMBAC 12,300,000 12,300,000
Insured), VRDN (b)
Series 1998 D, 3.05% (FGIC 17,350,000 17,350,000
Insured), VRDN (b)
Series 1999 B, 3.1%, LOC 7,900,000 7,900,000
Landesbank Hessen-Thuringen,
VRDN (b)
Series 1999, 3.55% 4/10/00, 11,700,000 11,700,000
LOC State Street Bank &
Trust Co., CP
3.5% 3/9/00, LOC Morgan 9,200,000 9,200,000
Guaranty Trust Co., NY, CP
3.5% 3/16/00, LOC Morgan 3,600,000 3,600,000
Guaranty Trust Co., NY, CP
3.65% 4/5/00, LOC Morgan 17,600,000 17,600,000
Guaranty Trust Co., NY, CP
3.8% 2/1/00, LOC Morgan 7,900,000 7,900,000
Guaranty Trust Co., NY, CP
3.9% 5/4/00, LOC Morgan 4,000,000 4,000,000
Guaranty Trust Co., NY, CP
Northampton Gen. Oblig. BAN 4,700,000 4,713,303
4.25% 10/27/00
Northborough Gen. Oblig. BAN 2,600,000 2,600,017
3.25% 2/2/00
Pembroke Gen. Oblig. BAN 4% 2,200,000 2,204,617
7/27/00
Plymouth Gen. Oblig. BAN 5,489,604 5,507,258
4.25% 10/18/00
Salem Gen. Oblig. BAN 4.5% 3,800,000 3,809,848
9/15/00
Sandwich Gen. Oblig. BAN 5,700,000 5,704,100
3.75% 4/28/00
Springfield Gen. Oblig. BAN:
4% 3/2/00 (BPA Fleet Bank NA) 5,300,000 5,301,844
4.25% 3/2/00 (BPA Fleet Bank 2,000,000 2,001,052
NA)
4.25% 9/15/00 (Liquidity 3,200,000 3,209,559
Facility Fleet Bank NA)
Sterling Gen. Oblig. BAN 3,000,000 3,000,480
3.75% 2/25/00
Stoneham Gen. Oblig. BAN 5,500,000 5,516,764
4.25% 11/16/00
Sutton Gen. Oblig. BAN 4.25% 6,000,000 6,007,802
6/15/00
Tewksbury Gen. Oblig. BAN 2,069,000 2,069,302
3.25% 2/23/00
Topsfield Gen. Oblig. BAN 2,200,000 2,207,588
4.25% 9/22/00
Wakefield Gen. Oblig. BAN 3,407,626 3,410,554
3.5% 4/20/00
Walpole Gen. Oblig. BAN 4.25% 3,800,000 3,811,482
11/30/00
Westfield Gen. Oblig. BAN 3,250,000 3,259,328
4.5% 2/1/01 (a)
Westford Gen. Oblig. BAN 3.5% 3,900,000 3,902,636
4/14/00
Weston Gen. Oblig. BAN:
4.1% 9/14/00 3,560,000 3,568,486
4.25% 3/1/00 3,900,000 3,901,552
Winchester Gen. Oblig. BAN 4% 2,680,000 2,686,619
7/3/00
Woburn Gen. Oblig. BAN 4% 3,000,000 3,005,990
6/15/00
768,694,978
MUNICIPAL SECURITIES -
CONTINUED
SHARES VALUE (NOTE 1)
OTHER - 4.0%
Municipal Central Cash Fund 33,632,893 $ 33,632,893
3.34% (c)(d)
TOTAL INVESTMENT PORTFOLIO - 802,327,871
96.5%
NET OTHER ASSETS - 3.5% 28,754,729
NET ASSETS - 100% $ 831,082,600
</TABLE>
Total Cost for Income Tax Purposes $ 802,327,871
SECURITY TYPE ABBREVIATIONS
BAN - BOND ANTICIPATION NOTE
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) Security purchased on a delayed delivery or when-issued basis.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(c) Information in this report regarding holdings by state and
security types does not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(d) The rate quoted is the annualized seven-day yield of the fund at
period end.
(e) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(f) Security collateralized by an amount sufficient to pay interest
and principal.
(g) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
During the fiscal year ended January 31, 2000, 100% of the fund's
income dividends was free from federal income tax, and 10.63% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
SPARTAN MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 2000
ASSETS
Investment in securities, at $ 802,327,871
value - See accompanying
schedule
Receivable for investments 33,133,641
sold
Receivable for fund shares 3,022,862
sold
Interest receivable 5,919,313
TOTAL ASSETS 844,403,687
LIABILITIES
Payable to custodian bank $ 59,704
Payable for investments 7,900,669
purchased Regular delivery
Delayed delivery 3,259,328
Payable for fund shares 1,537,615
redeemed
Distributions payable 209,105
Accrued management fee 352,395
Other payables and accrued 2,271
expenses
TOTAL LIABILITIES 13,321,087
NET ASSETS $ 831,082,600
Net Assets consist of:
Paid in capital $ 831,086,609
Accumulated net realized gain (5,763)
(loss) on investments
Unrealized gain from 1,754
accretion of discount
NET ASSETS, for 831,083,618 $ 831,082,600
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($831,082,600
(divided by) 831,083,618
shares)
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 2000
INTEREST INCOME $ 27,517,213
EXPENSES
Management fee $ 4,185,509
Non-interested trustees' 2,508
compensation
Total expenses before 4,188,017
reductions
Expense reductions (39,539) 4,148,478
NET INTEREST INCOME 23,368,735
REALIZED AND UNREALIZED GAIN 32,639
(LOSS)
Net realized gain (loss) on
investment securities
Increase (decrease) in net 1,754
unrealized gain from
accretion of discount
NET GAIN (LOSS) 34,393
NET INCREASE IN NET ASSETS $ 23,403,128
RESULTING FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 2000 YEAR ENDED JANUARY 31, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 23,368,735 $ 24,564,761
Net realized gain (loss) 32,639 17,457
Increase (decrease) in net 1,754 -
unrealized gain from
accretion of discount
NET INCREASE (DECREASE) IN 23,403,128 24,582,218
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (23,368,735) (24,564,761)
from net interest income
Share transactions at net 808,657,581 1,074,219,913
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 20,918,842 23,602,375
distributions from net
interest income
Cost of shares redeemed (903,758,060) (937,469,999)
NET INCREASE (DECREASE) IN (74,181,637) 160,352,289
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) (74,147,244) 160,369,746
IN NET ASSETS
NET ASSETS
Beginning of period 905,229,844 744,860,098
End of period $ 831,082,600 $ 905,229,844
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED JANUARY 31, 2000 1999 1998 1997 1996
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .028 .030 .031 .030 .033
Operations Net interest
income
Less Distributions
From net interest income (.028) (.030) (.031) (.030) (.033)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A, B 2.83% 3.00% 3.19% 3.00% 3.32%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 831,083 $ 905,230 $ 744,860 $ 671,462 $ 514,492
(000 omitted)
Ratio of expenses to average .50% .50% .50% .50% .50%
net assets
Ratio of expenses to average .50% .49% C .50% .50% .50%
net assets after expense
reductions
Ratio of net interest income 2.79% 2.95% 3.15% 2.96% 3.27%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY MA MUNICIPAL MONEY 2.77% 15.79% 34.47%
MARKET
Massachusetts Tax-Free Retail 2.61% 15.51% 34.47%
Money Market Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you 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 tax-free retail money
market funds with similar objectives tracked by IBC Financial Data,
Inc. The past one year average represents a peer group of 10 money
market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY MA MUNICIPAL MONEY 2.77% 2.97% 3.01%
MARKET
Massachusetts Tax-Free Retail 2.61% 2.92% 3.00%
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
1/31/00 11/1/99 8/2/99 5/3/99 2/1/99
Fidelity Massachusetts 2.77% 2.89% 2.54% 3.00% 2.40%
Municipal Money Market Fund
Massachusetts Tax-Free 2.61% 2.68% 2.46% 2.88% 2.24%
Retail Money Market Funds
Average
Fidelity Massachusetts 4.61% 4.80% 4.22% 4.98% 3.98%
Municipal Money Market Fund
- - Tax-equivalent
Portion of fund's income 8.45% 12.21% 7.01% 5.87% 9.71%
subject to state taxes
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
table 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 retail 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 2000 federal and state
income tax rate of 39.74%. The fund's yields mentioned above reflect
that a portion of the fund's income was subject to state taxes. 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
(PHOTOGRAPH OF SCOTT ORR)
An interview with Scott Orr, Portfolio Manager of Fidelity
Massachusetts Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE 12
MONTHS THAT ENDED JANUARY 31, 2000?
A. As the period started, economic growth in the U.S. was fairly
robust and employment strengthened. In addition, data began to
indicate that inflation might not be as well-behaved as it had been in
the recent past. Faced with that backdrop, market observers began to
feel that the Federal Reserve Board would raise short-term interest
rates to slow growth and head off inflation. Through the rest of the
period, economic growth remained solid and unemployment stayed at
historically low levels. Such a tight labor market often leads to
inflation, as employers are forced to raise salaries in order to
attract or retain workers, passing on the additional cost to the
consumer. The Fed indicated that improvements in worker productivity
had helped keep inflation at bay. Nevertheless, with constant,
broad-based economic strength and continually tight labor markets
throughout 1999, the Fed felt compelled to take back all three of the
rate cuts it had implemented in the fall of 1998, which it had used to
head off global economic turmoil present at that time. It did so with
a series of three 0.25 percentage point rate hikes in June, August and
November, raising the rate banks charge each other for overnight loans
- - known as the fed funds rate - from 4.75% at the beginning of the
period to 5.50% by the end of 1999.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. The fund began the period with an average maturity in the
mid-40-day range. This was a fairly neutral position, given the fact
that we had just emerged from a period when the Fed was lowering
rates, but was expected to raise rates in the future. For most of the
period, I maintained that neutral posture, at the same time looking
for yield opportunities among longer-term, fixed-rate notes that
incorporated my expectation for higher rates. In the fall of 1999, I
extended the fund's maturity to the high-60-day range for a short
time, because increased issuance in the Massachusetts market caused
fixed-rate yields to become relatively attractive. That was the only
interval in which I more aggressively purchased fixed-rate notes to
extend the fund's average maturity. In addition, I turned some of my
focus - within the limits set by the fund's prospectus - to
out-of-state investment opportunities that offered more appealing
after-tax yields than tax-free alternatives in the Massachusetts
market. Even though more of shareholders' income will be taxable at
the state level this year because of the out-of-state investments, I
pursued this strategy so the fund could provide higher yields on a
tax-adjusted basis than if I had chosen to invest the same assets in
significantly lower-yielding, tax-exempt Massachusetts securities.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 2000, was 2.77%, compared
to 2.42% 12 months ago. The more recent seven-day yield was the
equivalent of a 4.61% taxable rate of return for Massachusetts
investors in the 39.74% combined state and federal income tax bracket.
The fund's yields reflect that a portion of the fund's income was
subject to state taxes. Through January 31, 2000, the fund's 12-month
total return was 2.77%, compared to 2.61% for the Massachusetts
tax-free retail money market funds average, according to IBC Financial
Data, Inc.
Q. WHAT IS YOUR OUTLOOK?
A. The market anticipates that the Fed's next rate increase will
occur in early February, just after the end of the fund's fiscal year.
Productivity gains have offset the inflationary pressures often
sparked by tight employment and solid growth. I believe it is likely
the Fed will raise rates again to slow growth and prevent inflation
from cropping up, in an attempt to stay ahead of the curve if gains in
productivity are not sustained. The timing and scope of any Fed rate
hikes would most probably be dictated by the pace of the economy and
the tightness of the labor market.
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 AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
FUND FACTS
GOAL: high level of current
income, exempt from
federal income tax and
Massachusetts personal
income tax, as is consistent
with preservation of capital
FUND NUMBER: 074
TRADING SYMBOL: FDMXX
START DATE: November 11,
1983
SIZE: as of January 31,
2000, more than $2.0
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
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 1/31/00 % OF FUND'S INVESTMENTS 7/31/99 % OF FUND'S INVESTMENTS
1/31/99
0 - 30 70.6 68.8 70.0
31 - 90 11.5 13.7 17.7
91 - 180 6.0 5.1 5.9
181 - 397 11.9 12.4 6.4
WEIGHTED AVERAGE MATURITY
1/31/00 7/31/99 1/31/99
Fidelity Massachusetts 50 DAYS 51 Days 42 Days
Municipal Money Market Fund
Massachusetts Tax-Free Money 50 DAYS 50 Days 45 Days
Market Funds Average*
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF JANUARY 31, 2000 AS OF JULY 31, 1999
Variable Rate Demand Notes Variable Rate Demand Notes
(VRDNs) 49.3% (VRDNs) 51.4%
Commercial Paper (including Commercial Paper (including
CP Mode) 14.0% CP Mode) 16.5%
Tender Bonds 0.6% Tender Bonds 0.4%
Municipal Notes 21.0% Municipal Notes 21.6%
Municipal Money Market Funds Municipal Money Market Funds
7.8% 6.1%
Other Investments and Net Other Investments and Net
Other Assets 7.3% Other Assets 4.0%
</TABLE>
Row: 1, Col: 1, Value: 49.3
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 14.0
Row: 1, Col: 4, Value: 0.6000000000000001
Row: 1, Col: 5, Value: 21.0
Row: 1, Col: 6, Value: 7.8
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 7.3
Row: 1, Col: 1, Value: 51.4
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 16.5
Row: 1, Col: 4, Value: 0.4
Row: 1, Col: 5, Value: 21.6
Row: 1, Col: 6, Value: 6.1
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 4.0
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
* SOURCE: IBC'S MONEY FUND REPORT
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
INVESTMENTS JANUARY 31, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 95.2%
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - 87.4%
Acton & Boxborough Reg'l. $ 6,743,000 $ 6,763,788
School District BAN 4.25%
12/14/00
Beverly Gen. Oblig. BAN 4.5% 12,335,000 12,387,088
9/14/00
Billerica Gen. Oblig. BAN 4% 6,800,000 6,814,737
7/14/00
Boston Gen. Oblig. Bonds 6,285,000 6,295,387
Series C, 4% 11/1/00
Boston Ind. Dev. Rev. (New 3,515,000 3,515,000
Boston Seafood Ctr. Proj.)
Series 1997, 3.3%, LOC
BankBoston NA, VRDN (b)(e)
Boston Wtr. & Swr. Commission 8,380,000 8,380,000
Rev. Participating VRDN
Series SG 75, 3.12%
(Liquidity Facility Societe
Generale) (b)(g)
Bourne Gen. Oblig. BAN:
4.25% 9/29/00 3,760,000 3,771,594
4.5% 9/29/00 8,900,000 8,924,501
Bridgewater Gen. Oblig. BAN 7,000,000 7,003,182
4.25% 1/19/01
Brookline Gen. Oblig. BAN:
3.5% 6/1/00 10,600,000 10,610,831
3.75% 6/1/00 8,215,000 8,221,082
4% 4/12/00 5,100,000 5,101,657
Canton Gen. Oblig. BAN 3.5% 2,242,030 2,244,326
6/9/00
Canton Hsg. Auth. 3,695,000 3,695,000
Multi-family Hsg. Mtg. Rev.
Rfdg. (Canton Arboretum Apt.
Proj.) Series 1999, 3.4%,
LOC Fannie Mae, VRDN (b)(e)
Chelmsford Gen. Oblig. BAN 5,300,000 5,300,330
3.5% 2/10/00
Dudley Charlton Reg'l. School 2,840,000 2,840,000
District Participating VRDN
Series MLPA 521, 3.12%
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
East Longmeadow Gen. Oblig. 5,000,000 5,014,850
BAN 4.5% 2/1/01 (a)
Everett Gen. Oblig. BAN 4.25% 11,000,000 11,001,874
2/17/00
Foxborough Gen. Oblig. BAN 4,800,000 4,813,443
4.25% 11/15/00
Framingham Gen. Oblig. BAN 2,500,000 2,500,878
4.25% 3/9/00
Franklin Gen. Oblig. BAN 4% 5,765,000 5,775,319
6/1/00
Gloucester Gen. Oblig. BAN 4% 6,448,000 6,463,645
8/3/00
Groton-Dunstable Reg'l. 6,500,000 6,514,279
School District BAN 4%
7/27/00
Hanover Gen. Oblig. BAN 4% 5,500,000 5,511,284
6/29/00
Hingham Gen. Oblig. BAN:
4.25% 9/28/00 16,600,000 16,655,601
4.25% 11/15/00 6,300,000 6,318,094
Holliston Gen. Oblig. BAN:
4.25% 9/21/00 5,500,000 5,517,885
4.25% 12/13/00 11,100,000 11,134,112
Hopkinton Gen. Oblig. BAN 4% 19,000,000 19,032,095
8/25/00
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Ludlow Gen. Oblig. BAN 4% $ 4,500,000 $ 4,508,977
7/14/00
Mansfield Gen. Oblig. BAN 14,100,000 14,116,355
4.25% 4/26/00
Marion Gen. Oblig. BAN 4.25% 6,400,000 6,420,662
9/28/00
Marshfield Gen. Oblig. BAN 14,100,000 14,131,685
4.25% 9/8/00
Massachusetts Bay Trans. Auth.:
Participating VRDN Series 5,565,000 5,565,000
107, 3.25% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (b)(g)
RAN Series 1999 A, 3.5% 44,700,000 44,704,240
2/25/00
Series 1999, 2.8%, VRDN (b) 530,000 530,000
Series D:
3.55% 3/9/00, CP 15,900,000 15,900,000
3.6% 3/9/00, CP 2,100,000 2,100,000
3.6% 3/9/00, CP 25,050,000 25,050,000
3.85% 3/9/00, CP 12,000,000 12,000,000
Series E:
3.45% 3/9/00, CP 7,000,000 7,000,000
3.55% 3/8/00, CP 2,000,000 2,000,000
3.6% 2/4/00, CP 4,000,000 4,000,000
3.6% 3/9/00, CP 6,100,000 6,100,000
3.6% 3/9/00, CP 1,000,000 1,000,000
Massachusetts Bay Transit 10,600,000 10,600,000
Auth. Rev. Participating
VRDN Series 992101, 3.3%
(Liquidity Facility
Citibank, New York NA) (b)(g)
Massachusetts Dev. Fin. Agcy. 3,400,000 3,400,000
Ind. (Charm Sciences, Inc.
Proj.) Series 1999 A, 3.4%,
LOC BankBoston NA, VRDN
(b)(e)
Massachusetts Dev. Fin. Agcy. 7,000,000 7,000,000
Resource Recovery Rev. Bonds
(Ogden Haverhill Proj.)
Series 1999 A, 4.05%, tender
2/3/00 (e)
Massachusetts Dev. Fin. Agcy.
Rev.:
(Boston Renaissance Charter 10,275,000 10,275,000
School Proj.) Series 1999,
3.25%, LOC BankBoston NA,
VRDN (b)
(Brooks School Issue Proj.) 3,800,000 3,800,000
Series 1999 A, 3.2% (MBIA
Insured), VRDN (b)
(Shady Hill School Issue 3,000,000 3,000,000
Proj.) Series 1998 A, 3.2%,
LOC State Street Bank &
Trust Co., VRDN (b)
Massachusetts Gen. Oblig.:
Bonds Series A, 4% 2/1/00 16,200,000 16,200,000
Participating VRDN:
Series 132, 3.25% (Liquidity 4,895,000 4,895,000
Facility Morgan Stanley Dean
Witter & Co.) (b)(g)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Gen. Oblig.: -
continued
Participating VRDN:
Series ROC II 99 11, 3.3% $ 3,500,000 $ 3,500,000
(Liquidity Facility Salomon
Smith Barney Hldgs., Inc.)
(b)(g)
Series SG 126, 3.12% 3,255,000 3,255,000
(Liquidity Facility Societe
Generale) (b)(g)
Rfdg.:
Series 1997 B, 3.2%, VRDN (b) 56,000,000 56,000,000
Series 1998 B, 3.15%, VRDN (b) 69,160,000 69,159,998
Bonds Series A, 5% 8/1/00 4,285,000 4,307,238
Participating VRDN Series 35, 21,630,000 21,630,000
3.26% (Liquidity Facility
Morgan Stanley Dean Witter &
Co.) (b)(g)
Series 1998 A, 3.15%, VRDN (b) 60,100,000 60,100,000
Series D:
3.45% 2/7/00, CP 11,200,000 11,200,000
3.5% 2/7/00, CP 7,400,000 7,400,000
Participating VRDN Series 8,955,000 8,955,000
96C2101, 3.3% (Liquidity
Facility Citibank, New York
NA) (b)(g)
Massachusetts Health & Edl.
Facilities Auth. Rev.:
Bonds:
(Emerson Hosp. Proj.) Series 10,000,000 10,366,734
C, 8% 7/1/18 (Pre-Refunded
to 7/1/00 @ 102) (f)
(Partners Health Care Sys. 4,225,000 4,233,037
Proj.) Series B, 4% 7/1/00
Participating VRDN:
Series 1997 Y, (Liquidity 6,500,000 6,500,000
Facility First Union Nat'l.
Bank, North Carolina) (b)(g)
Series MLPA 595R, 3.12% 4,245,000 4,245,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
Series SG 27, 3.12% 7,500,000 7,500,000
(Liquidity Facility Societe
Generale) (b)(g)
(Berklee College of Music 5,400,000 5,400,000
Proj.) Series D, 3.05% (MBIA
Insured) (BPA Cr. Swiss
First Boston Bank), VRDN (b)
(Cap. Asset Prog.):
Series B, 3.55% (MBIA 4,350,000 4,350,000
Insured), VRDN (b)
Series C, 3.55% (MBIA 4,000,000 4,000,000
Insured), VRDN (b)
(Hallmark Health Sys. Proj.) 7,350,000 7,350,000
Series 1988 B, 3.1% (FSA
Insured) (BPA Fleet Nat'l.
Bank), VRDN (b)
(Home for Little Wanderers 5,100,000 5,100,000
Proj.) Series B, 3.15%
(Liquidity Facility
BankBoston NA), VRDN (b)
(Partners Health Care Sys.
Proj.):
Series P1, 3.05% (FSA 23,625,000 23,625,000
Insured), VRDN (b)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Health & Edl.
Facilities Auth. Rev.: -
continued
(Partners Health Care Sys.
Proj.):
Series P2, 3.15% (FSA $ 23,800,000 $ 23,800,000
Insured), VRDN (b)
Massachusetts Hsg. Fin. Agcy.:
Participating VRDN Series PT 5,670,000 5,670,000
271, 3.12% (Liquidity
Facility Bayerische Hypo-und
Vereinsbank AG) (b)(g)
Rfdg. (Hbr. Point Apt. Proj.) 56,750,000 56,750,000
Series 1995 A, 3.2% (Govt.
Nat'l. Mortgage Assoc.
Guaranteed) (BPA HSBC Bank
USA), VRDN (b)
Massachusetts Hsg. Fin. Agcy.
Hsg. Rev. Participating VRDN:
Series 1998 B, 3.2% 34,100,000 34,100,000
(Liquidity Facility Caisse
des Depots et Consignations)
(b)(e)(g)
Series H, 3.35% (Liquidity 19,000,000 19,000,000
Facility First Union Nat'l.
Bank, North Carolina) (b)(g)
Series PA 370, 3.2% 3,600,000 3,600,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(e)(g)
Series PA 83, 3.2% (Liquidity 5,106,000 5,106,000
Facility Merrill Lynch &
Co., Inc.) (b)(e)(g)
Series PT 160, 3.2% 10,255,000 10,255,000
(Liquidity Facility
Commerzbank AG) (b)(e)(g)
Series PT 212, 3.2% 7,420,000 7,420,000
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (b)(e)(g)
Series PT 33, 3.2% (Liquidity 4,095,000 4,095,000
Facility Banque Nationale de
Paris) (b)(e)(g)
Series PT 42, 3.12% 1,820,000 1,820,000
(Liquidity Facility
Commerzbank AG) (b)(g)
Massachusetts Hsg. Fin. Proj. 6,400,000 6,400,000
Participating VRDN Series PT
250, 3.12% (Liquidity
Facility Bayerische Hypo-und
Vereinsbank AG) (b)(g)
Massachusetts Ind. Fin. Agcy. 5,000,000 5,000,000
Health Care Facilities Auth.
(Jewish Geriatric Svs.
Proj.) 3.25%, LOC BankBoston
NA, VRDN (b)
Massachusetts Ind. Fin. Agcy.
Ind. Dev. Rev.:
(346 Univ. LLC Proj.) Series 2,100,000 2,100,000
1996, 3.4%, LOC BankBoston
NA, VRDN (b)(e)
(Abbott Box Co. Proj.) Series 3,500,000 3,500,000
1997, 3.35%, (Ten Campanelli
Circle Realty Trust) LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
(Barbour Corp. Proj.) Series 3,900,000 3,900,000
1998, 3.35%, LOC Fleet
Nat'l. Bank, VRDN (b)(e)
(Barker Steel Co. Proj.) 800,000 800,000
Series 1995, 3.25%, LOC
State Street Bank & Trust
Co., VRDN (b)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy.
Ind. Dev. Rev.: - continued
(BBB Esq. LLC Proj.) Series $ 1,100,000 $ 1,100,000
1996, 3.4%, LOC BankBoston
NA, VRDN (b)(e)
(Boutwell Owens & Co., Inc. 5,000,000 5,000,000
Proj.) Series 1998, 3.4%,
(J&M Acquisition Corp.) LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
(Brady Enterprises Proj.) 1,900,000 1,900,000
Series 1996, 3.35%, LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
(Canton/Cedar Realty LLC 1,900,000 1,900,000
Proj.) Series 1997, 3.35%,
LOC Fleet Nat'l. Bank, VRDN
(b)(e)
(Carand Realty Trust Proj.) 800,000 800,000
Series 1997, 3.2%, LOC State
Street Bank & Trust Co.,
VRDN (b)(e)
(Constitution Corp. Proj.) 3,500,000 3,500,000
Series 1998, 3.4%, LOC
BankBoston NA, VRDN (b)(e)
(Decas Cranberry Proj.) 3,950,000 3,950,000
Series 1997, 3.35%, LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
(Hazen Paper Co. Proj.) 1,200,000 1,200,000
Series 1996, 3.35%, LOC
BankBoston NA, VRDN (b)(e)
(Heat Fab, Inc. Proj.) Series 2,300,000 2,300,000
1996, 3.4%, LOC BankBoston
NA, VRDN (b)(e)
(Interpolymer Corp. Proj.) 2,800,000 2,800,000
Series 1992, 3.35%, LOC
BankBoston NA, VRDN (b)(e)
(Lightlife Foods, Inc. Proj.) 3,960,000 3,960,000
Series 1997, 3.35%, LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
(Longview Fibre Co. Proj.) 2,070,000 2,070,000
Series 1987, 3.6%, LOC
ABN-AMRO Bank NV, VRDN (b)
(Parker-Hannifin Corp. Proj.) 2,700,000 2,700,000
Series 1997, 3.4%, LOC
Wachovia Bank NA, VRDN (b)(e)
(Riverdale Mills Corp. Proj.) 3,200,000 3,200,000
Series 1995, 3.4%, LOC
BankBoston NA, VRDN (b)(e)
(Sencorp Systems, Inc. Proj.) 4,400,000 4,400,000
Series 1998 A, 3.4%, LOC
BankBoston NA, VRDN (b)(e)
(United Med. Corp. Proj.) 2,300,000 2,300,000
Series 1992, 3.2%, LOC First
Union Nat'l. Bank, North
Carolina, VRDN (b)(e)
(United Plastics Proj.) 2,200,000 2,200,000
Series 1997, 3.35%, (33
Patriot Circle Trust) LOC
Fleet Nat'l. Bank, VRDN
(b)(e)
Massachusetts Ind. Fin. Agcy.
Poll. Cont. Rev. Rfdg. Bonds
(New England Pwr. Co. Proj.):
Series 1992, 3.55% tender 32,500,000 32,500,000
2/15/00, CP mode
Series 1993 A:
3.5% tender 4/5/00, CP mode 4,800,000 4,800,000
3.6% tender 2/29/00, CP mode 14,600,000 14,600,000
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy.
Poll. Cont. Rev. Rfdg. Bonds
(New England Pwr. Co.
Proj.): - continued
Series 1993 B:
3.5% tender 4/5/00, CP mode $ 2,350,000 $ 2,350,000
3.55% tender 3/1/00, CP mode 2,800,000 2,800,000
3.65% tender 3/1/00, CP mode 1,500,000 1,500,000
Massachusetts Ind. Fin. Agcy.
Rev.:
Participating VRDN:
Series SG 108, 3.12% 6,000,000 6,000,000
(Liquidity Facility Societe
Generale) (b)(g)
Series SG 56, 3.12% 11,100,000 11,100,000
(Liquidity Facility Societe
Generale) (b)(g)
(Assumption College Proj.) 4,000,000 4,000,000
Series 1998, 3.3%, LOC Fleet
Nat'l. Bank, VRDN (b)
(Buckingham Browne Nichols 4,000,000 4,000,000
School Proj.) Series 1997,
3.1%, LOC State Street Bank
& Trust Co., VRDN (b)
(Fessenden School Proj.) 4,405,000 4,405,000
Series 1997, 3.3%, LOC Fleet
Nat'l. Bank, VRDN (b)
(Goddard House Proj.) 3.1%, 8,025,000 8,025,000
LOC Fleet Bank NA, VRDN (b)
(Groton School Proj.) Series 12,000,000 12,000,000
1998 B, 3.15% (Liquidity
Facility Fleet Nat'l. Bank),
VRDN (b)
(Heritage at Darmouth Proj.) 1,820,000 1,820,000
Series 1996, 3.2%, LOC
BankBoston NA, VRDN (b)(e)
(Heritage at Hingham Proj.) 6,390,000 6,390,000
Series 1997, 3.2%, LOC Fleet
Nat'l. Bank, VRDN (b)(e)
(JHC Assisted Living Corp. 3,800,000 3,800,000
Proj.) Series 1998 A, 3.25%,
LOC Fleet Bank NA, VRDN (b)
(Mary Ann Morse Nursing Home
Proj.):
Series 1994 A, 3.8%, LOC 5,500,000 5,500,000
ABN-AMRO Bank NV, VRDN (b)
Series 1994 B, 3.2%, LOC 6,500,000 6,500,000
ABN-AMRO Bank NV, VRDN (b)
(Society for the Prevention 3,900,000 3,900,000
of Cruelty to Animals Proj.)
Series 1997, 3.15%, LOC
Fleet Nat'l. Bank, VRDN (b)
(Southern New England School 1,770,000 1,770,000
of Law Proj.) 3.3%, LOC
Fleet Nat'l. Bank, VRDN (b)
(Wheelock College Issue 3,600,000 3,600,000
Proj.) Series A, 3.2%, LOC
BankBoston NA, VRDN (b)
(Youville Place Proj.) Series 5,200,000 5,200,000
1996, 3.2% (AMBAC Insured)
(BPA Fleet Nat'l. Bank),
VRDN (b)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Ind. Fin. Agcy.
Rev.: - continued
Rfdg. (Showa Womens Institute $ 12,200,000 $ 12,200,000
Boston, Inc. 1994 Proj.)
3.6%, LOC Bank of New York
NA, LOC Fuji Bank Ltd., VRDN
(b)
Massachusetts Muni. Wholesale
Elec. Co. Pwr. Supply Sys.
Rev.:
Bonds Series FRRI A13, 3.75%, 7,100,000 7,100,000
tender 5/1/00 (Liquidity
Facility Nat'l. Westminster
Bank PLC) (g)
Series 1994 C, 3.05% (MBIA 14,635,000 14,635,000
Insured) (BPA Cr. Swiss
First Boston Bank), VRDN (b)
Series B:
3.55% 2/23/00, LOC Fleet 11,765,000 11,765,000
Nat'l. Bank, CP
3.55% 3/28/00, LOC Fleet 7,520,000 7,520,000
Nat'l. Bank, CP
3.55% 3/29/00, LOC Fleet 4,700,000 4,700,000
Nat'l. Bank, CP
3.55% 3/29/00, LOC Fleet 2,475,000 2,475,000
Nat'l. Bank, CP
Massachusetts Port Auth. Rev.
Participating VRDN:
Series PA 592, 3.2% 4,850,000 4,850,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(e)(g)
Series PA 600R, 3.2% 4,850,000 4,850,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(e)(g)
Series PT 1206, 3.2% 16,220,000 16,220,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
Series SGA 64, 3.28% 5,300,000 5,300,000
(Liquidity Facility Societe
Generale) (b)(e)(g)
Massachusetts Tpk. Auth.
Metro. Hwy. Sys. Rev.
Participating VRDN:
Series PA 516, 3.12% 4,540,000 4,540,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
Series PT 135, 3.12% 35,500,000 35,500,000
(Liquidity Facility Banco
Santander SA) (b)(g)
Series SG 124, 3.12% 23,400,000 23,400,000
(Liquidity Facility Societe
Generale) (b)(g)
Massachusetts Tpk. Auth. Tpk.
Rev. Participating VRDN:
Series PA 581R, 3.12% 13,525,000 13,525,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(g)
Series Putter 140, 3.23% 6,500,000 6,500,000
(Liquidity Facility Morgan
Guaranty Trust Co., NY)
(b)(g)
Massachusetts Tpk. Auth. 9,200,000 9,200,000
Western Tpk. Rev.
Participating VRDN Series
1997 N, 3.38% (Liquidity
Facility Bank of America NA)
(b)(g)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Massachusetts Wtr. Poll.
Abatement Trust Wtr. Poll.
Abatement Rev.:
Bonds (MWRA Ln. Prog.) Series $ 10,385,000 $ 10,411,405
A, 4.25% 8/1/00
Participating VRDN:
Series 1999 N, 3.35% 11,800,000 11,800,000
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (b)(g)
Series MSDW 98 182, 3.27% 2,745,000 2,745,000
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(b)(g)
Series SGA 87, 3.65% 23,500,000 23,500,000
(Liquidity Facility Societe
Generale) (b)(g)
Massachusetts Wtr. Resources
Auth. Rev.:
Participating VRDN:
Series PT 302, 3.12% 5,435,000 5,435,000
(Liquidity Facility
Landesbank Hessen-Thuringen)
(b)(g)
Series SG 63, 3.12% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale) (b)(g)
Rfdg. Participating VRDN 5,000,000 5,000,000
Series SG 17, 3.12%
(Liquidity Facility Societe
Generale) (b)(g)
Series 1997 A, 3.1% (AMBAC 17,000,000 17,000,000
Insured), VRDN (b)
Series 1997 B, 3.05% (AMBAC 45,600,000 45,600,000
Insured), VRDN (b)
Series 1998 D, 3.05% (FGIC 59,400,000 59,400,000
Insured), VRDN (b)
Series 1999 A, 3.15% 20,850,000 20,850,000
(Liquidity Facility Bank of
Nova Scotia) (Liquidity
Facility Commerzbank AG)
(Liquidity Facility Cr.
Local de France), VRDN (b)
Series 1999, 3.55% 4/10/00, 27,800,000 27,800,000
LOC State Street Bank &
Trust Co., CP
3.5% 3/9/00, LOC Morgan 11,200,000 11,200,000
Guaranty Trust Co., NY, CP
3.5% 3/16/00, LOC Morgan 6,400,000 6,400,000
Guaranty Trust Co., NY, CP
3.65% 4/5/00, LOC Morgan 23,700,000 23,700,000
Guaranty Trust Co., NY, CP
3.8% 2/1/00, LOC Morgan 17,100,000 17,100,000
Guaranty Trust Co., NY, CP
3.85% 4/6/00, LOC Morgan 3,000,000 3,000,000
Guaranty Trust Co., NY, CP
3.9% 5/4/00, LOC Morgan 24,300,000 24,300,000
Guaranty Trust Co., NY, CP
Natick Gen. Oblig. BAN 3.75% 5,530,000 5,538,123
8/4/00
Northampton Gen. Oblig. BAN 10,589,000 10,618,971
4.25% 10/27/00
Northborough Gen. Oblig. BAN 4,610,000 4,610,031
3.25% 2/2/00
Pembroke Gen. Oblig. BAN 4% 4,400,000 4,409,235
7/27/00
Plymouth Gen. Oblig. BAN 12,100,000 12,138,913
4.25% 10/18/00
Salem Gen. Oblig. BAN:
4.5% 9/15/00 9,500,000 9,524,620
4.5% 1/18/01 2,000,000 2,005,902
Sandwich Gen. Oblig. BAN 12,300,000 12,308,847
3.75% 4/28/00
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MASSACHUSETTS - CONTINUED
Springfield Gen. Oblig. BAN:
4% 3/2/00 (BPA Fleet Bank NA) $ 11,700,000 $ 11,704,064
4% 6/23/00 (BPA Fleet Bank NA) 2,880,000 2,885,431
4.25% 3/2/00 (BPA Fleet Bank 4,250,000 4,252,235
NA)
4.25% 9/15/00 (Liquidity 6,800,000 6,820,313
Facility Fleet Bank NA)
Sterling Gen. Oblig. BAN 6,300,000 6,301,008
3.75% 2/25/00
Stoneham Gen. Oblig. BAN 12,500,000 12,538,099
4.25% 11/16/00
Sutton Gen. Oblig. BAN 4.25% 13,875,000 13,893,041
6/15/00
Tewksbury Gen. Oblig. BAN 3,700,000 3,700,540
3.25% 2/23/00
Topsfield Gen. Oblig. BAN 4,800,000 4,816,556
4.25% 9/22/00
Wakefield Gen. Oblig. BAN 6,300,000 6,305,413
3.5% 4/20/00
Walpole Gen. Oblig. BAN 4.25% 8,700,000 8,726,289
11/30/00
Westford Gen. Oblig. BAN 3.5% 7,100,000 7,104,800
4/14/00
Weston Gen. Oblig. BAN:
4.1% 9/14/00 7,600,000 7,618,117
4.25% 3/1/00 8,762,000 8,765,486
Winchester Gen. Oblig. BAN 4% 8,200,000 8,220,251
7/3/00
1,821,079,478
SHARES
OTHER - 7.8%
Municipal Central Cash Fund 163,358,381 163,358,381
3.34% (c)(d)
TOTAL INVESTMENT PORTFOLIO - 1,984,437,859
95.2%
NET OTHER ASSETS - 4.8% 99,838,524
NET ASSETS - 100% $ 2,084,276,383
</TABLE>
Total Cost for Income Tax Purposes $ 1,984,437,859
SECURITY TYPE ABBREVIATIONS
BAN - BOND ANTICIPATION NOTE
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) Security purchased on a delayed delivery or when-issued basis.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(c) Information in this report regarding holdings by state and
security types does not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(d) The rate quoted is the annualized seven-day yield of the fund at
period end.
(e) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(f) Security collateralized by an amount sufficient to pay interest
and principal.
(g) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
During the fiscal year ended January 31, 2000, 100% of the fund's
income dividends was free from federal income tax, and 12.57% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 2000
ASSETS
Investment in securities, at $ 1,984,437,859
value - See accompanying
schedule
Receivable for investments 93,778,014
sold
Receivable for fund shares 39,632,920
sold
Interest receivable 14,021,800
Prepaid expenses 62,323
TOTAL ASSETS 2,131,932,916
LIABILITIES
Payable to custodian bank $ 404,515
Payable for investments 24,702,103
purchased Regular delivery
Delayed delivery 5,014,850
Payable for fund shares 16,344,865
redeemed
Distributions payable 145,192
Accrued management fee 644,027
Other payables and accrued 400,981
expenses
TOTAL LIABILITIES 47,656,533
NET ASSETS $ 2,084,276,383
Net Assets consist of:
Paid in capital $ 2,084,282,831
Accumulated undistributed net (10,077)
realized gain (loss) on
investments
Unrealized gain from 3,629
accretion of discount
NET ASSETS, for 2,084,193,703 $ 2,084,276,383
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($2,084,276,383
(divided by) 2,084,193,703
shares)
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 2000
INTEREST INCOME $ 58,052,547
EXPENSES
Management fee $ 6,661,957
Transfer agent fees 2,402,930
Accounting fees and expenses 193,414
Non-interested trustees' 5,105
compensation
Custodian fees and expenses 54,550
Registration fees 159,002
Audit 25,876
Legal 10,471
Reports to shareholders 42,052
Miscellaneous 66,142
Total expenses before 9,621,499
reductions
Expense reductions (11,874) 9,609,625
NET INTEREST INCOME 48,442,922
REALIZED AND UNREALIZED GAIN 29,378
(LOSS)
Net realized gain (loss) on
investment securities
Increase (decrease) in net 3,629
unrealized gain from
accretion of discount
NET GAIN (LOSS) 33,007
NET INCREASE (DECREASE) IN $ 48,475,929
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Custodian credits $ 11,874
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JANUARY 31, 2000 YEAR ENDED JANUARY 31, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 48,442,922 $ 38,716,227
Net realized gain (loss) 29,378 26,764
Increase (decrease) in net 3,629 -
unrealized gain from
accretion of discount
NET INCREASE (DECREASE) IN 48,475,929 38,742,991
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (48,442,922) (38,716,227)
from net interest income
Share transactions at net 6,321,644,955 4,715,000,617
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 46,994,809 37,340,541
distributions from net
interest income
Cost of shares redeemed (5,869,535,929) (4,366,774,894)
NET INCREASE (DECREASE) IN 499,103,835 385,566,264
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 499,136,842 385,593,028
IN NET ASSETS
NET ASSETS
Beginning of period 1,585,139,541 1,199,546,513
End of period $ 2,084,276,383 $ 1,585,139,541
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED JANUARY 31, 2000 1999 1998 1997 1996
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .027 .029 .031 .029 .032
Operations Net interest
income
Less Distributions
From net interest income (.027) (.029) (.031) (.029) (.032)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN 2.77% 2.90% 3.10% 2.90% 3.20%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,084,276 $ 1,585,140 $ 1,199,547 $ 967,689 $ 847,490
(000 omitted)
Ratio of expenses to average .55% .56% .57% .59% .60%
net assets
Ratio of net interest income 2.75% 2.86% 3.07% 2.86% 3.15%
to average net assets
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 2000
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.
Each fund may be affected by economic and political developments in
the state of Massachusetts. The following summarizes the significant
accounting policies of the funds:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Securities for
which quotations are not readily available are valued at their fair
value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less
for which quotations are not readily available are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for the fiscal year. The schedules of investments
include information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of original issue discount, is accrued as
earned. For the money market fund, accretion of discount represents
unrealized gain until realized at the time of a security disposition
or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
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
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
generally accepted accounting principles. These differences, which may
result in distribution reclassifications, are primarily due to
differing treatments for futures transactions, market discount and
losses deferred due to wash sales and futures. 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). Distributions in excess of net
investment income and 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.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission (the SEC), the funds may invest
in the Municipal Central Cash Fund (the Cash Fund) managed by Fidelity
Investments Money Management, Inc. (FIMM), an affiliate of Fidelity
Management & Research Company (FMR). The Cash Fund is an open-end
money market fund available only to investment companies and other
accounts managed by FMR and its affiliates. The Cash Fund seeks
preservation of capital, liquidity, and current income by investing in
high-quality, short-term municipal securities of various states and
municipalities. Income distributions from the Cash Fund are declared
daily and paid monthly from net interest income. Income distributions
earned by the funds are recorded as interest income in the
accompanying financial statements.
WHEN-ISSUED SECURITIES. Each fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place after the
customary settlement period for that security. The price of the
underlying securities is fixed at the time the transaction is
negotiated. The values of the securities purchased on a when-issued or
forward commitment basis are identified as such in each applicable
fund's schedule of investments. Each fund may receive compensation for
interest forgone in the purchase of a when-issued security. With
respect to purchase commitments, each fund identifies securities as
segregated in its records with a value at least equal to the amount of
the commitment. Losses may arise due to changes in the market value of
the underlying securities, if the counterparty does not perform under
the contract, or if the issuer does not issue the securities due to
political, economic, or other factors.
2. OPERATING POLICIES - CONTINUED
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. At the end of the period, no funds had investments in
restricted securities (excluding 144A issues).
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $298,182,910 and $322,175,559, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the 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 .0920% to .3700% for the
period. 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
fees were equivalent to annual rates of .38% of average net assets for
the income fund and Fidelity Massachusetts Municipal Money Market
Fund.
For Spartan Massachusetts Municipal Money Market Fund, FMR receives a
fee that is computed daily at an annual rate of .50% of the fund's
average net assets. FMR pays all other expenses, except the
compensation of the non-interested Trustees and certain exceptions
such as interest, taxes, brokerage commissions and extraordinary
expenses. The management fee paid to FMR by the fund is reduced by an
amount equal to the fees and expenses paid by the fund to the
non-interested Trustees.
FMR also bears the cost of providing shareholder services to Spartan
Massachusetts Municipal Money Market Fund. To offset the cost of
providing these services, FMR or its affiliates collected certain
transaction fees from shareholders which amounted to $5,072 for the
period.
SUB-ADVISER FEE. As the funds' investment sub-adviser, FIMM, 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. Effective June 14, 1999 for the
income fund and June 21, 1999 for Fidelity Massachusetts Municipal
Money Market Fund, Citibank, N.A.(Citibank) replaced UMB Bank, n.a.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
as the custodian, transfer agent and shareholder servicing agent for
the funds. Citibank has entered into a sub-contract with Fidelity
Service Company, Inc. (FSC), an affiliate of FMR, under which FSC
performs the activities associated with the funds' transfer and
shareholder servicing agent and accounting functions. The funds pay
account fees and asset-based fees that vary according to account size
and type of account. FSC pays for typesetting, printing and mailing of
all shareholder reports, except proxy statements. The accounting fee
is based on the level of average net assets for the month plus
out-of-pocket expenses.
For the period, the transfer agent fees were equivalent to an annual
rate of .08% and .14% of average net assets for the income fund and
Fidelity Massachusetts Municipal Money Market fund, respectively.
MONEY MARKET INSURANCE. Pursuant to an Exemptive Order issued by the
SEC, the money market funds, along with other money market funds
advised by FMR or its affiliates, have entered into insurance
agreements with FIDFUNDS Mutual Limited (FIDFUNDS), an affiliated
mutual insurance company. FIDFUNDS provides limited coverage for
certain loss events including issuer default as to payment of
principal or interest and bankruptcy or insolvency of a credit
enhancement provider. The insurance does not cover losses resulting
from changes in interest rates, ratings downgrades or other market
conditions. The money market funds may be subject to a special
assessment of up to approximately 2.5 times the fund's annual gross
premium if covered losses exceed certain levels. During the period,
Fidelity Massachusetts Municipal Money Market Fund paid premiums of
$67,989 for the calendar year 2000 to FIDFUNDS, which are being
amortized over one year. During the period, FMR has borne the cost of
Spartan Massachusetts Municipal Money Market Fund's premium payable to
FIDFUNDS.
5. EXPENSE REDUCTIONS.
The income fund and Fidelity Massachusetts Municipal Money Market Fund
have entered into arrangements with their custodian and transfer
agent, whereby credits realized as a result of uninvested cash
balances were used to reduce a portion of each applicable fund's
expenses. For the period, the reductions under these arrangements are
shown under the caption "Other Information" on each applicable fund's
Statement of Operations.
In addition, through an arrangement with Spartan Massachusetts
Municipal Money Market Fund's custodian and transfer agent, credits
realized as a result of uninvested cash balances were used to reduce a
portion of the fund's expenses. During the period, the fund's expenses
were reduced by $39,539 under this arrangement.
INDEPENDENT AUDITORS' REPORT
To the Trustees of Fidelity Massachusetts Municipal Trust and
Shareholders of Spartan Massachusetts Municipal Income Fund, Spartan
Massachusetts Municipal Money Market Fund and Fidelity Massachusetts
Municipal Money Market Fund:
We have audited the accompanying statements of assets and liabilities
of Spartan Massachusetts Municipal Income Fund, Spartan Massachusetts
Municipal Money Market Fund and Fidelity Massachusetts Municipal Money
Market Fund, (the "Funds"), including the portfolios of investments,
as of January 31, 2000, and the related statements of operations,
changes in net assets, and financial highlights for the year then
ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial
highlights based on our audits. The statements of changes in net
assets for the year ended January 31, 1999, and the financial
highlights for each of the four years in the period then ended were
audited by other auditors whose report, dated March 9, 1999, expressed
an unqualified opinion on those statements and financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of January 31, 2000, by
correspondence with the custodian and brokers, where replies were not
received from brokers, we performed other auditing procedures. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Spartan Massachusetts Municipal Income Fund,
Spartan Massachusetts Municipal Money Market Fund and Fidelity
Massachusetts Municipal Money Market Fund as of January 31, 2000, the
results of their operations, the changes in their net assets, and the
financial highlights for the year then ended, in conformity with
generally accepted accounting principles.
/s/DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 9, 2000
PROXY VOTING RESULTS
A special meeting of the funds' shareholders was held on January 19,
2000. The results of votes taken among shareholders on proposals
before them are reported below. Each vote reported represents one
dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.*
# OF % OF
VOTES CAST VOTES CAST
RALPH F. COX
Affirmative 2,077,805,899.75 97.688
Withheld 49,178,375.44 2.312
TOTAL 2,126,984,275.19 100.000
PHYLLIS BURKE DAVIS
Affirmative 2,077,436,287.69 97.671
Withheld 49,547,987.50 2.329
TOTAL 2,126,984,275.19 100.000
ROBERT M. GATES
Affirmative 2,076,322,042.58 97.618
Withheld 50,662,232.61 2.382
TOTAL 2,126,984,275.19 100.000
EDWARD C. JOHNSON 3D
Affirmative 2,078,572,716.66 97.724
Withheld 48,411,558.53 2.276
TOTAL 2,126,984,275.19 100.000
DONALD J. KIRK
Affirmative 2,078,418,753.71 97.717
Withheld 48,565,521.48 2.283
TOTAL 2,126,984,275.19 100.000
NED C. LAUTENBACH
Affirmative 2,072,116,864.08 97.420
Withheld 54,867,411.11 2.580
TOTAL 2,126,984,275.19 100.000
# OF % OF
VOTES CAST VOTES CAST
PETER S. LYNCH
Affirmative 2,076,795,430.41 97.640
Withheld 50,188,844.78 2.360
TOTAL 2,126,984,275.19 100.000
MARVIN L. MANN
Affirmative 2,078,734,369.11 97.732
Withheld 48,249,906.08 2.268
TOTAL 2,126,984,275.19 100.000
WILLIAM O. MCCOY
Affirmative 2,078,664,523.95 97.728
Withheld 48,319,751.24 2.272
TOTAL 2,126,984,275.19 100.000
GERALD C. MCDONOUGH
Affirmative 2,076,422,694.18 97.623
Withheld 50,561,581.01 2.377
TOTAL 2,126,984,275.19 100.000
ROBERT C. POZEN
Affirmative 2,077,391,609.44 97.668
Withheld 49,592,665.75 2.332
TOTAL 2,126,984,275.19 100.000
THOMAS R. WILLIAMS
Affirmative 2,076,086,521.43 97.607
Withheld 50,897,753.76 2.393
TOTAL 2,126,984,275.19 100.000
PROPOSAL 2
To ratify the selection of Deloitte & Touche LLP as independent
accountants of the funds.
SPARTAN MASSACHUSETTS MUNICIPAL MONEY MARKET
# OF % OF
VOTES CAST VOTES CAST
Affirmative 417,831,047.95 96.781
Against 6,524,588.02 1.512
Abstain 7,371,669.21 1.707
TOTAL 431,727,305.18 100.000
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET
# OF % OF
VOTES CAST VOTES CAST
Affirmative 911,941,300.97 96.494
Against 9,993,484.83 1.057
Abstain 23,143,574.98 2.449
TOTAL 945,078,360.78 100.000
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
# OF % OF
VOTES CAST VOTES CAST
Affirmative 715,329,674.21 95.355
Against 9,529,737.81 1.270
Abstain 25,319,197.20 3.375
TOTAL 750,178,609.22 100.000
PROPOSAL 3
To authorize the trustees to adopt an Amended and Restated Declaration
of Trust.*
# OF % OF
VOTES CAST VOTES CAST
Affirmative 1,955,630,095.99 92.437
Withheld 77,517,793.50 3.664
Abstain 82,484,377.95 3.899
TOTAL 2,115,632,267.44 100.000
Not Voting 11,352,007.75 N/A
PROPOSAL 4
To approve an amended management contract for the funds.
FIDELITY MASSACHUSETTS MUNICIPAL MONEY MARKET
# OF % OF
VOTES CAST VOTES CAST
Affirmative 877,474,930.95 92.847
Against 28,599,375.50 3.026
Abstain 39,004,054.33 4.127
TOTAL 945,078,360.78 100.000
SPARTAN MASSACHUSETTS MUNICIPAL INCOME FUND
# OF % OF
VOTES CAST VOTES CAST
Affirmative 682,889,780.60 91.030
Against 26,943,504.04 3.592
Abstain 40,345,324.58 5.378
TOTAL 750,178,609.22 100.000
PROPOSAL 5
To approve an amended management contract for Spartan Massachusetts
Municipal Money Market Fund.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 399,530,224.39 92.542
Against 19,415,853.17 4.498
Abstain 12,781,227.62 2.960
TOTAL 431,727,305.18 100.000
PROPOSAL 6
To eliminate Spartan Massachusetts Municipal Money Market Fund's
fundamental 80% investment policy and adopt a comparable
non-fundamental policy.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 394,409,064.17 91.356
Against 20,462,180.97 4.740
Abstain 16,856,060.04 3.904
TOTAL 431,727,305.18 100.000
PROPOSAL 7
To eliminate Fidelity Massachusetts Municipal Money Market Fund's
fundamental 80% investment policy and adopt a comparable
non-fundamental policy.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 847,839,034.35 89.906
Against 52,254,366.52 5.542
Abstain 42,929,715.91 4.552
TOTAL 943,023,116.78 100.000
Not Voting 2,055,244.00 N/A
PROPOSAL 8
To eliminate Spartan Massachusetts Municipal Income Fund's fundamental
80% investment policy and adopt a comparable non-fundamental policy.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 650,441,297.38 87.793
Against 48,553,979.75 6.553
Abstain 41,886,568.34 5.654
TOTAL 740,881,845.47 100.000
Not Voting 9,296,763.75 N/A
PROPOSAL 9
To modify Spartan Massachusetts Municipal Income Fund's fundamental
investment objective.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 649,346,647.01 87.645
Against 48,502,791.46 6.547
Abstain 43,032,407.00 5.808
TOTAL 740,881,845.47 100.000
Not Voting 9,296,763.75 N/A
PROPOSAL 10
To eliminate certain of Spartan Massachusetts Municipal Income Fund's
fundamental policies.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 641,715,534.59 86.615
Against 54,284,919.78 7.327
Abstain 44,881,391.10 6.058
TOTAL 740,881,845.47 100.000
Not Voting 9,296,763.75 N/A
PROPOSAL 11
To eliminate Spartan Massachusetts Municipal Income Fund's fundamental
20% investment policy.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 641,475,969.18 86.583
Against 53,798,648.51 7.261
Abstain 45,607,227.78 6.156
TOTAL 740,881,845.47 100.000
Not Voting 9,296,763.75 N/A
* DENOTES TRUST-WIDE PROPOSALS AND VOTING RESULTS.
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 Automated Service Telephone 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)
FIDELITY AUTOMATED
SERVICE TELEPHONE (FAST SM)
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
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 EarthLink Sprint at
1-800-288-2967, and be sure to ask for registration number SMD004 to
receive a special Fidelity package that includes 30 days of free
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access provider.
(COMPUTER_GRAPHIC)
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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 1-800-544-0240 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
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(LETTER_GRAPHIC)
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OREGON
16850 SW 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
Fidelity Investments Money
Management, Inc. (FIMM)
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
Matthew N. Karstetter, Deputy Treasurer
Maria F. Dwyer, Deputy Treasurer
Stanley N. Griffith, Assistant
Vice President
John H. Costello, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
Citibank, N.A.
New York, NY
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
Citibank, N.A.
New York, NY
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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)
Fidelity Automated Service
Telephone (FAST SM) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
