FIDELITY COURT STREET TRUST II, N-30D, 1995-07-11

FIDELITY COURT STREET TRUST II
N-30D, 1995-07-11

Previous: 21ST CENTURY TRUST SERIES 1, N-8B-2/A, 1995-07-11

Next: LIVING CENTERS OF AMERICA INC, SC 13G/A, 1995-07-11

FIDELITY

(registered trademark)
NEW JERSEY
TAX-FREE
MONEY MARKET
PORTFOLIO

SEMIANNUAL REPORT
MAY 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 6 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 9 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 15 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 19 Notes to the financial statements.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888

FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although there have been some positive market indications so far in 1995,
no one can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was almost
ideal.
These market ups and downs are a normal part of investing, and there are
some basic principles that can help investors in every type of market.
First, take a long-term approach when investing. If you can afford to leave
your money invested through the inevitable ups and downs of financial
markets, you will greatly reduce your vulnerability to any single decline.
Over time, for example, stock prices have gone up - and have significantly
outperformed other types of investments and stayed ahead of inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up a regular investment plan using the Fidelity Automatic Account
Builder.SM
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period and reinvestment of its dividends (or income). Yield
measures the income paid by a fund. Since a money market fund tries to
maintain a $1 share price, yield is an important measure of performance. If
Fidelity had not reimbursed certain fund expenses, the past 5 years and the
life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Fidelity New Jersey Tax-Free
Money Market Portfolio 1.70% 2.94% 16.67% 32.63%

Average New Jersey Tax-Free
Money Market Fund 1.65% 2.89% 17.55% n/a

Consumer Price Index 1.53% 3.19% 17.80% 30.64%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on March 17, 1988. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. To measure how the fund's performance stacked
up against its peers, you can compare it to the average New Jersey tax-free
money market fund, which reflects the performance of 11 New Jersey tax-free
money market funds with similar objectives tracked by IBC/Donoghue over the
past six months. Comparing the fund's performance to the consumer price
index (CPI) helps show how your investment did compared to inflation. (The
periods covered by the CPI and IBC/Donoghue numbers are the closest
available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Fidelity New Jersey Tax-Free
Money Market Portfolio 2.94% 3.13% 3.99%

Average New Jersey Tax-Free
Money Market Fund 2.89% 3.29% n/a

Consumer Price Index 3.19% 3.33% 3.80%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
5/30/94 8/29/94 11/28/94 2/27/95 5/29/95

Fidelity New Jersey 2.27% 2.49% 3.09% 3.44% 3.53%
Tax-Free Money Market
Portfolio

Average New Jersey 2.27% 2.52% 2.99% 3.35% 3.48%
Tax-Free Money Market
Fund

Fidelity New Jersey Tax-Fre 3.80% 4.16% 5.17% 5.75% 5.90%
e
Money Market Portfolio -
Tax-equivalent

Row: 1, Col: 1, Value: 2.27
Row: 1, Col: 2, Value: 2.27
Row: 2, Col: 1, Value: 2.49
Row: 2, Col: 2, Value: 2.52
Row: 3, Col: 1, Value: 3.09
Row: 3, Col: 2, Value: 2.99
Row: 4, Col: 1, Value: 3.44
Row: 4, Col: 2, Value: 3.35
Row: 5, Col: 1, Value: 3.53
Row: 5, Col: 2, Value: 3.48
Fidelity New Jersey
Tax-Free Money
Market Portfolio
Average New Jersey
Tax-Free Money
Market Fund
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the average New Jersey tax-free money market fund.
Or you can look at the fund's tax-equivalent yield, which is based on a
combined effective 1995 federal and state income tax rate of 40.21%.
Figures for the average New Jersey tax-free money market fund are from
IBC/Donoghue.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. And there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS:
On June 1, 1995, Jeff Parker
(left) became portfolio manager of
Fidelity New Jersey Tax-Free Money Market Portfolio. The following is an
interview with Scott Orr -
who managed the fund during the period covered by this report - with some
comments from Jeff Parker
on his outlook and strategy:
Q. SCOTT, CAN YOU TELL US HOW THE INVESTMENT CLIMATE HAS CHANGED DURING THE
PAST SIX MONTHS?
S.O. Sure. Conditions on the whole were calmer and more predictable than
they were during most of 1994. The Federal Reserve raised the federal funds
rate - the rate banks charge each other for overnight loans - one-half
percentage point in February. However, unlike most of the six other rate
increases that had come before, the February rate increase was widely
anticipated, and the market absorbed it smoothly. In fact, following the
Fed announcement, short-term rates actually declined.
Q. HAVE RATES PEAKED, THEN?
S.O. That's quite possible. The goal of Fed policy ever since it began
raising short-term interest rates in February 1994 has been to dampen the
gross domestic product growth rate and prevent an outbreak of inflation.
Apparently, the policy has worked. In April, the first-quarter growth rate
came in at a surprisingly low 2.8%. That marked a dramatic slowdown from
the robust 5.2% growth rate during the fourth quarter of 1994. The pattern
of slower growth persisted throughout the spring. By the end of the period,
it seemed highly unlikely that the Fed would see the need to raise rates
again anytime soon.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
Hardcopy of
Photo of
JEFF PARKER
to come
from WTC
S.O. When the period began, the fund's average maturity was around 60 days.
Later in the month of December, after Orange County, California, declared
bankruptcy, many investors - even across the country in New Jersey -
responded to the news by becoming more defensive and buying shorter-term
securities. I saw that as an opportunity to make prudent purchases of
longer-term securities, extending the fund's average maturity to 64 days at
the end of the month. By early February, when the Fed raised rates for the
last time, I had let it roll back down to the high 50s. At the end of May,
the fund's average maturity was 56 days.
Q. HOW DID THE FUND PERFORM?
S.O. The fund's seven-day yield on May 31, 1995 was 3.49%, compared to
3.09% six months ago. On an after-tax basis, that was the equivalent of a
5.84% taxable rate for investors in the 40.21% combined federal and state
income tax bracket. Through May 31, 1995, the fund's six-month total return
was 1.70%, compared to 1.65% for the average tax-exempt money market fund,
according to IBC/Donoghue.
Q. JEFF, WHAT'S YOUR OUTLOOK?
J.P. There's been a dramatic shift in market psychology in recent months.
Early this year, many economists were predicting that the Fed would go
right on raising interest rates through the summer. However, the economy
has slowed, and now most economists believe it's only a matter of time
before the Fed begins lowering rates. With that in mind, I'll probably
maintain some flexibility while looking for opportunities to gradually
extend the fund's average maturity in the months ahead.

FUND FACTS
GOAL: tax-free income &
stability by investing in
high-quality, short-term New
Jersey municipal securities
START DATE: March 17, 1988
SIZE: as of May 31,1995,
more than $427 million
MANAGER: Scott Orr, 1992 -
June 1995. Jeff Parker, since
June 1995; manager, Fidelity
Connecticut Municipal Money
Market, Fidelity Michigan
Municipal Money Market,
Spartan Connecticut
Municipal Money Market,and
Spartan New Jersey
Municipal Money Market
portfolios since June 1995:
joined Fidelity in 1991.
(checkmark)

WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
usually long-term security that
gives the bond holder the
option to redeem the bond at
face value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/95 11/30/94 5/31/94

0 - 30 62 60 62

31 - 90 21 21 14

91 - 180 8 5 15

181 - 397 9 14 9

WEIGHTED AVERAGE MATURITY
5/31/95 11/30/94 5/31/94

Fidelity New Jersey
Tax-Free Money Market
Portfolio 56 days 62 days 52 days

Average New Jersey
Tax-Free Money
Market Fund* 48 days 54 days 48 days

ASSET ALLOCATION
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994

Row: 1, Col: 1, Value: 50.0
Row: 1, Col: 2, Value: 17.0
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 31.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 50.0
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 32.0
Row: 1, Col: 5, Value: 3.0
Variable rate
demand notes
(VRDNs) 50%
Commercial
paper 17%
Tender bonds 1%
Municipal
notes 31%
Other 1%
Variable rate
demand notes
(VRDNs) 50%
Commercial
paper 14%
Tender bonds 2%
Municipal
notes 32%
Other 2%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS MAY 31, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - 86.3%
Allentown BAN 4.22% 5/21/96 $ 800,000 $ 800,515
Atlantic County Impt. Auth. Rev. (Pooled Gov't. Loan Prog.)
3.45%, LOC Hong Kong & Shanghai Banking
Corp., VRDN 2,900,000 2,900,000
Bayonne BAN 5.32% 9/15/95 2,300,000 2,301,413
Bergen County Rev. Rfdg. Bonds 6.50% 8/1/95 2,700,000 2,709,414
Bernards Township Swr. Auth. Swr. Rev. Rfdg. Bonds,
Series 1985, 5.35% tender 12/15/95 2,500,000 2,500,000
Burlington County BAN 5.50% 12/15/95 2,000,000 2,005,131
Chatham Township BAN 4.31% 4/19/96 1,000,000 1,000,493
Cranbury Township BAN 4.50% 3/15/96 1,400,000 1,404,245
Florham Park BAN 4.75% 11/9/95 1,293,500 1,294,862
Fort Lee BAN 4.33% 5/3/96 1,500,000 1,500,389
Gloucester County Poll. Cont. Fin. Auth. Rev. Rfdg. Bonds
(Mobil Oil Refining) Series 1993 A, 3.45%, VRDN 2,700,000 2,700,000
Hightstown BAN 5.18% 12/7/95 500,000 500,195
Hillside BAN 4.13% 5/22/96 1,483,500 1,484,603
Hudson County BAN 4.55% 10/11/95 5,000,000 5,002,593
Hudson County Impt. Auth. Rev.
(Essential Purp. Pooled Gov't. Loan Prog.)
Series 1986, 4.10%, LOC Hong Kong
& Shanghai Banking Corp., VRDN 29,895,000 29,895,000
Mercer County BAN 4.75% 7/13/95 12,450,000 12,459,749
Mercer County Impt. Auth. Rev.
(Pooled Gov't. Loan Prog.) Series 1985, 3.25%,
LOC Credit Suisse Bank, VRDN 200,000 200,000
Metuchen BAN 5% 12/19/95 1,000,000 1,003,181
Monmouth County Impt. Auth. Rev.
(Pooled Gov't. Loan Prog.)
Series 1986, 3.40%,
LOC Union Bank of Switzerland, VRDN 15,000,000 15,000,000
Montgomery Township BAN 4.32% 4/26/96 646,000 646,095
Morris Township BAN 4.50% 5/17/96 3,600,000 3,613,261
New Jersey Econ. Dev. Auth. Dock Facs. Rev. Rfdg.
(Bayonne Proj.) Series 1993 B, 4.10%,
LOC ABN-AMRO Bank, VRDN 600,000 600,000
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN:
Rfdg. (Church & Dwight Co.) Series 1991, 3.40%,
LOC Bank of Nova Scotia 3,300,000 3,300,000
Rfdg. (Curtiss-Wright Corp.) Series 1992, 3.45%,
LOC Bank of Nova Scotia 3,000,000 3,000,000
Rfdg. (Eldorado Terminals Co. Proj.)
Series 1984 A, 4.10% 1,200,000 1,200,000
Rfdg. (RJB Associates Proj.) Series 1983, 4.45%,
LOC PNC Bank 500,000 500,000
(1420 Chestnut Ave.) Series 1989 FF, 3.80%,
LOC Barclays Bank (b) 1,250,000 1,250,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN - continued
(AVP Realty Holdings, Inc.) Series 1989 A, 3.80%,
LOC Barclays Bank (b) $ 1,250,000 $ 1,250,000
(Applewook Center For Aging Proj.) 4.05%,
LOC Banque Paribas 2,500,000 2,500,000
(Arden Group) Series 1989 BB, 3.80%,
LOC Barclays Bank (b) 1,550,000 1,550,000
(Assoc. for Retarded Citizens) Series 1989 CC, 3.70%,
LOC Barclay's Bank 1,150,000 1,150,000
(Bel Ray Co., Inc.) Series 1989 I, 3.80%,
LOC Barclays Bank (b) 250,000 250,000
(Composite Issue A-C & E-L) Series 1989 E, 3.70%,
LOC Barclays Bank PLC 300,000 300,000
(Danic Urban Renewal Co. Proj.) Series 1985, 4.15%,
LOC Marine Midland Bank 950,000 950,000
(Guttenplan's Bakery) Series 1989 G, 3.80%
LOC Barclays Bank (b) 650,000 650,000
(Hirsh Enterprises) Series 1989 II, 3.80%,
LOC Barclay Bank (b) 450,000 450,000
(J.W. Holding Group) Series 1989 GG, 3.80%,
LOC Barclays Bank (b) 600,000 600,000
(M & S Realty) Series 1988 N, 3.80%,
LOC Barclays Bank (b) 900,000 900,000
(PVC Container Corp.) Series 1987 D,
3.90%, LOC Nat'l. Westminster Bank (b) 1,335,000 1,335,000
(Philly Venture Fund) Series 1988 P, 3.70%,
LOC Barclays Bank 1,250,000 1,250,000
(Pictorial Offset Corp.) Series 1989 H, 3.80%,
LOC Barclays Bank (b) 2,000,000 2,000,000
(Russ Berrie & Co. Inc.) 4%,
LOC Bank of New York 5,200,000 5,200,000
New Jersey Econ. Dev. Auth. Econ. Growth Rev.
Series F, 4%, LOC Nat'l. Westminster, VRDN 840,000 840,000
New Jersey Econ. Dev. Auth. First Mtg. Rev., VRDN:
(Fellowship Village Inc. Proj.) Series 1994, 4.05%,
LOC Banque Paribas 8,500,000 8,500,000
(Franciscan Oaks Proj.) Series 1992 B, 3.50%,
LOC Bank of Scotland (b) 8,000,000 8,000,000
New Jersey Econ. Dev. Auth. Ind. Dev. Rev. Rfdg.
(Marriott Corp.) Series 1984, 3.35%,
LOC Nat'l. Westminster Bank, VRDN 4,500,000 4,500,000
New Jersey Econ. Dev. Auth. Poll. Cont. Rev., VRDN:
(Exxon Proj.) Series 1989, 4.10% 700,000 700,000
(Hoffman-La Roche Proj.) Series 1985, 4.15%,
LOC Wachovia Bank of North Carolina 3,000,000 3,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Rev. Bonds:
(Chambers Cogeneration Proj.) Series 1991: (b)
4% tender 7/20/95, LOC Swiss Bank Corp. $ 4,900,000 $ 4,900,000
3.90% tender 8/15/95, LOC Swiss Bank Corp. 5,000,000 5,000,000
3.95% tender 8/24/95, LOC Swiss Bank Corp. 6,700,000 6,700,000
3.90% tender 8/25/95, LOC Swiss Bank Corp. 5,000,000 5,000,000
4% tender 8/28/95, LOC Swiss Bank Corp. 4,300,000 4,300,000
(Keystone Proj.) Series 1992: (b)
4.25% tender 6/9/95,
LOC Union Bank of Switzerland 2,500,000 2,500,000
4% tender 8/18/95,
LOC Union Bank of Switzerland 5,000,000 5,000,000
(Morris Hall/St. Lawrence Inc.) Series 1993, 5.125%
tender 6/1/95, LOC New Jersey Nat'l. Bank 3,100,000 3,100,000
New Jersey Gen. Oblig. Participating VRDN: (c)
Series BTP-104, 4.05%
(Liquidity Facility Bankers Trust Co.) 2,500,000 2,500,000
Series MGT-21, 4.20%
(Liquidity Facility Morgan Guaranty Trust Co.) 2,500,000 2,500,000
Series ML-PA6, 4.05%
(Liquidity Facility Merrill Lynch & Co.) 14,260,000 14,260,000
New Jersey Gen. Oblig. Rev., Series D, CP:
3.95% 6/7/95 (Liquidity Facility Union Bank
of Switzerland) 6,000,000 6,000,000
4.30% 6/15/95 (Liquidity Facility Union Bank
of Switzerland) 4,500,000 4,500,000
New Jersey Gen. Oblig. TRAN 5% 6/15/95 23,500,000 23,506,544
New Jersey Health Care Facs. Fin. Auth. Rev.
(Cap. Asset Fin. Prog.) Series 1985 B, 3.90%,
LOC Chemical Bank, VRDN 8,100,000 8,100,000
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN: (c)
Series 1994 C-3003, 4.30% (MBIA Insured)
(Liquidity Facility Citibank) 6,800,000 6,800,000
Series 1994 C-3004, 4.15% (MBIA Insured)
(Liquidity Facility Citibank) 5,100,000 5,100,000
New Jersey Trans. Trust Fund Adj. Rate BAN,
4.20% 12/27/95 2,000,000 2,000,000
New Jersey Turnpike Auth. Turnpike Rev., Series 1991 D,
3.25%, BPA Societe Generale (FGIC Insured), VRDN 26,500,000 26,500,000
North Brunswick BAN 4.50% 8/16/95 1,200,000 1,200,856
Parsippany-Troy Hills BAN 4.625% 5/9/96 2,600,000 2,608,747
Passaic County BAN:
4.75% 9/28/95 5,000,000 5,002,542
6% 11/22/95 3,300,000 3,307,461
4.46% 4/5/96 1,500,000 1,500,722
5% 4/5/96 8,756,000 8,797,195
Passaic County Utils. Auth. BAN (Solid Waste Sys. Proj.)
Series 1994 C, 4.625% 11/9/95 (MBIA Insured) 5,000,000 5,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
Saddle Brook BAN 5% 5/16/96 $ 1,300,000 $ 1,309,175
Salem County Ind. Poll. Cont. Fing. Auth. Poll. Cont. Bonds
(Philadelphia Elec. Co.) Series 1993 A, 3.95%
tender 8/24/95, LOC Toronto-Dominion Bank (b) 2,000,000 2,000,000
Sea Isle City BAN 5% 8/10/95 1,550,000 1,551,439
Somerset County Ind. Poll. Cont. Auth. (3M Proj.)
Series 1982, 4.10%, VRDN 600,000 600,000
South Brunswick TAN 5.25% 1/3/96 2,500,000 2,509,202
Union County BAN 4.71% 6/30/95 4,795,000 4,795,059
Union County Ind. Dev. Auth. Poll. Cont. Rev. Bonds,
(Exxon Proj.) Series 1989, 3.80% tender 6/23/95 5,000,000 5,000,000
Upper Freehold Regional School Dist. BAN
5.625% 2/1/96 1,490,000 1,494,503
Upper Freehold Regional School Dist. Board of Ed. RAN
4.45% 6/30/95 1,000,000 1,000,000
Wall Township BAN 4.75% 10/26/95 1,500,000 1,502,024
Warren County BAN 4.24% 7/14/95 1,000,000 1,000,100
Washington Township BAN 5.50% 12/15/95 4,023,000 4,029,303
West Orange BAN 4.75% 1/4/96 1,389,000 1,393,275
Willingboro BAN 5.25% 11/22/95 1,175,000 1,178,100
Woodbridge Township BAN:
4.13% 7/6/95 14,000,000 14,000,120
4.48% 10/6/95 9,000,000 9,000,293
364,692,799
NEW YORK & NEW JERSEY - 8.1%
New York & New Jersey Port Auth. Participating VRDN,
Series PA-67, 4.10%
(Liquidity Facility Merrill Lynch & Co.) (c) 2,000,000 2,000,000
New York & New Jersey Port Auth. Spl. Proj. Rev., VRDN:
(KIAC Partners Proj.) Series 3, 3.55%,
LOC Deutsche Bank (b) 5,500,000 5,500,000
Series 1, 4.05%, BPA Bank of Tokyo (b) 2,800,000 2,800,000
3.95%, BPA Morgan Guaranty Trust 800,000 800,000
New York & New Jersey Port Auth. Rev.:
Series 1991, 4.291%, VRDN (b) 8,800,000 8,800,000
Series 1992, 3.833%, VRDN 6,800,000 6,800,000
Series A, CP: (b)
4.15% 6/23/95 (Liquidity Facility
Daiwa Bank Ltd.) 1,405,000 1,405,000
4.10% 8/7/95 (Liquidity Facility
Daiwa Bank Ltd.) 3,410,000 3,410,000
4% 8/14/95 (Liquidity Facility
Daiwa Bank Ltd.) 2,640,000 2,640,000
34,155,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - 5.6%
Puerto Rico Commonwealth Participating VRDN: (c)
Series PT-63, 4.05% (Liquidity Facility Bayerische
Hypotheken/Wech Bank) $ 2,900,000 $ 2,900,000
Series PW-6, 3.75% (Liquidity Facility
Bank of Nova Scotia) 5,400,000 5,400,000
Puerto Rico Gov't. Dev. Bank, CP:
3.80% 7/12/95 7,600,000 7,600,000
4.05% 7/18/95 3,000,000 3,000,000
4.10% 8/9/95 1,500,000 1,500,000
4.15% 8/11/95 3,500,000 3,500,000
23,900,000
TOTAL INVESTMENTS - 100% $ 422,747,799
Total Cost for Income Tax Purposes $ 422,747,799

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At November 30, 1994, the fund had a capital loss carryforward of
approximately $8,700 which will expire on November 30, 2001.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)

1.ASSETS 2. 3.

4.Investment in securities, at value - See accompanying 5. $ 422,747,799
schedule

6.Cash 7. 1,088,774

8.Interest receivable 9. 4,270,561

10. 11.TOTAL ASSETS 12. 428,107,134

13.LIABILITIES 14. 15.

16.Distributions payable $ 34,278 17.

18.Accrued management fee 142,860 19.

20.Other payables and accrued expenses 99,111 21.

22. 23.TOTAL LIABILITIES 24. 276,249

25.26.NET ASSETS 27. $ 427,830,885

28.Net Assets consist of: 29. 30.

31.Paid in capital 32. $ 427,864,734

33.Accumulated net realized gain (loss) on investments 34. (33,849)

35.36.NET ASSETS, for 427,864,734 shares outstanding 37. $ 427,830,885

38.39.NET ASSET VALUE, offering price and redemption 40. $1.00
price per share ($427,830,885 (divided by) 427,864,734 shares)

</TABLE>

STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)

41.42.INTEREST INCOME 43. $ 8,455,678

44.EXPENSES 45. 46.

47.Management fee $ 856,494 48.

49.Transfer agent, accounting and custodian fees 433,761 50.
and expenses

51.Non-interested trustees' compensation 1,648 52.

53.Registration fees 1,191 54.

55.Audit 12,369 56.

57.Legal 8,432 58.

59.Miscellaneous 1,097 60.

61. 62.TOTAL EXPENSES 63. 1,314,992

64.65.NET INTEREST INCOME 66. 7,140,686

67.68.NET REALIZED GAIN (LOSS) ON INVESTMENTS 69. (25,082)

70.71.NET INCREASE IN NET ASSETS RESULTING FROM 72. $ 7,115,604
OPERATIONS

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1995 NOVEMBER 30,
(UNAUDITED) 1994

73.INCREASE (DECREASE) IN NET ASSETS

74.Operations $ 7,140,686 $ 8,534,291
Net interest income

75. Net realized gain (loss) (25,082) 7,322

76. Increase (decrease) in net unrealized gain from - (408)
accretion of market discount

77. 78.NET INCREASE (DECREASE) IN NET ASSETS 7,115,604 8,541,205
RESULTING FROM OPERATIONS

79.Distributions to shareholders from net interest (7,140,686) (8,534,291)
income

80.Share transactions at net asset value of $1.00 per 553,073,710 834,725,683
share
Proceeds from sales of shares

81. Reinvestment of distributions from net interest 6,928,625 8,243,661
income

82. Cost of shares redeemed (531,694,793) (803,015,157)

83.84. 28,307,542 39,954,187
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS

85. 86.TOTAL INCREASE (DECREASE) IN NET ASSETS 28,282,460 39,961,101

87.NET ASSETS 88. 89.

90. Beginning of period 399,548,425 359,587,324

91. End of period $ 427,830,885 $ 399,548,425

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
92. SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1995

93. (UNAUDITED) 1994 1993 1992 1991 1990

94.SELECTED PER-SHARE DATA

95.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value,
beginning of
period

96.Income from .017 .022 .019 .028 .042 .056
Investment
Operations
Net interest
income

97.Less (.017) (.022) (.019) (.028) (.042) (.056)
Distributions
From net
interest income

98.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value, end of
period

99.TOTAL 1.70% 2.19 1.94 2.81 4.29 5.72
RETURN B % % % % %

100.RATIOS AND SUPPLEMENTAL
DATA

101.Net assets, $ 427,831 $ 399,548 $ 359,587 $ 359,093 $ 368,333 $ 443,585
end of period
(000 omitted)

102.Ratio of .62% .62 .63 .64 .65 .27
expenses to A % % % % %
average net
assets

103.Ratio of .62% .62 .63 .64 .65 .61
expenses to A % % % % %
average net
assets before
expense
reductions

104.Ratio of net 3.38% 2.17 1.92 2.78 4.23 5.57
interest income A % % % % %
to average net
assets

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE
TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity New Jersey Tax-Free Money Market Portfolio (the fund) is a fund of
Fidelity Court Street Trust II (the trust) and is authorized to issue an
unlimited number of shares. The trust is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Delaware business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. Accretion
of market discount represents unrealized gain until realized at the time of
a security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between
the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1200% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .25%. For the period, the management
fee was equivalent to an annualized rate of .41% of average net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any
payments by FMR pursuant to the fund's Distribution and Service Plan.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $39,704 for the
period.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (the Bank) is the
custodian and transfer and shareholder servicing agent for the fund. The
Bank has entered into a sub-contract with Fidelity Service Co. (FSC), an
affiliate of FMR, under which FSC performs the activities associated with
the fund's transfer and shareholder servicing agent and accounting
functions. During the period December 1, 1994 to December 31, 1994, the
fund paid fees based on the type, size, number of accounts and the number
of transactions made by shareholders. Effective January 1, 1995, the Board
of Trustees approved a revised transfer agent contract pursuant to which
the fund pays account fees and asset-based fees that vary according to
account size and type of account. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements. The accounting
fee is based on the level of average net assets for the month plus
out-of-pocket expenses. For the period, FSC received transfer agent and
accounting fees amounting to $377,227 and $43,488, respectively.
Shareholders participating in the Fidelity Ultra Service Account(registered
trademark) Program (the Program) pay a $5.00 monthly fee to Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, for performing
services associated with the Program. For the period, fees paid to FBSI by
shareholders participating in the Program amounted to $29,805.
TO WRITE FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI

INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning Jr., Vice President
Scott Orr, Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Thomas D. Maher, Assistant
Vice President
Michael D. Conway, Assistant Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S TAX-FREE
MONEY MARKET FUNDS
California Tax-Free Money Market
Connecticut Municipal Money Market
Massachusetts Tax-Free Money Market
Michigan Municipal Money Market
New Jersey Tax-Free Money Market
New York Tax-Free Money Market
Ohio Municipal Money Market
Spartan(registered trademark) Arizona Municipal
Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
Tax-Exempt Money Market
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

FIDELITY

(registered trademark)
CONNECTICUT
MUNICIPAL
MONEY MARKET
PORTFOLIO

SEMIANNUAL REPORT
MAY 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 6 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 9 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 13 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 17 Notes to the financial statements.

FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period and reinvestment of its dividends (or income). Yield
measures the income paid by a fund. Since a money market fund tries to
maintain a $1 share price, yield is an important measure of performance. If
Fidelity had not reimbursed certain fund expenses, the past five years and
life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Fidelity Connecticut Municipal
Money Market Portfolio 1.66% 2.90% 16.82% 22.15%

Average Connecticut Tax-Free
Money Market Fund 1.61% 2.83% 15.32% n/a

Consumer Price Index 1.53% 3.19% 17.80% 22.15%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years or since
the fund started on August 29, 1989. For example, if you invested $1,000 in
a fund that had a 5% return over the past year, the value of your
investment would be $1,050. To measure how the fund's performance stacked
up against its peers, you can compare it to the average Connecticut
tax-free money market fund, which reflects the performance of 12 funds with
similar objectives tracked by IBC/Donoghue over the past six months.
Comparing the fund's performance to the consumer price index (CPI) helps
show how your fund did compared to inflation. (The periods covered by the
CPI and IBC/Donoghue numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Fidelity Connecticut Municipal
Money Market Portfolio 2.90% 3.16% 3.54%

Average Connecticut Tax-Free
Money Market Fund 2.83% 2.89% n/a

Consumer Price Index 3.19% 3.33% 3.54%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
YIELDS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
5/30/94 8/29/94 11/28/94 2/27/95 5/29/95

Fidelity Connecticut Municipa 2.23% 2.51% 3.11% 3.25% 3.50%
l
Money Market Portfolio

Average Connecticut Tax-Fr 2.19% 2.45% 3.01% 3.27% 3.37%
ee
Money Market Fund

Fidelity Connecticut Municip 3.64% 4.09% 5.08% 5.31% 5.72%
al
Money Market Fund -
Tax-equivalent

Portion of fund's income 4.09% 9.24% 2.38% 1.97% 4.02%
subject to state taxes

</TABLE>

Row: 1, Col: 1, Value: 2.23
Row: 1, Col: 2, Value: 2.19
Row: 2, Col: 1, Value: 2.51
Row: 2, Col: 2, Value: 2.45
Row: 3, Col: 1, Value: 3.11
Row: 3, Col: 2, Value: 3.01
Row: 4, Col: 1, Value: 3.25
Row: 4, Col: 2, Value: 3.27
Row: 5, Col: 1, Value: 3.5
Row: 5, Col: 2, Value: 3.37
Fidelity Connecticut
Municipal Money
Market Portfolio
Average Connecticut
Tax-Free Money
Market Fund
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the average Connecticut tax-free money market fund.
Or you can look at the fund's tax-equivalent yield, which is based on a
combined effective 1995 federal and state income tax rate of 38.88% and
reflects 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 alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns.
Tax-equivalent yield - the
yield you'd have to earn on a
similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS:
On June 1, 1995, Jeff Parker
(left) became portfolio manager of
Fidelity Connecticut Tax-Free Money Market Portfolio. The following is an
interview with Scott Orr -
who managed the fund during the period covered by this report - with some
comments from Jeff Parker
on his outlook and strategy:
Q. SCOTT, CAN YOU TELL US HOW THE INVESTMENT CLIMATE HAS CHANGED DURING THE
PAST SIX MONTHS?
S.O. Sure. Conditions on the whole were calmer and more predictable than
they were during most of 1994. The Federal Reserve raised the federal funds
rate - the rate banks charge each other for overnight loans - one-half
percentage point in February. However, unlike most of the six other rate
increases that had come before, the February rate increase was widely
anticipated, and the market absorbed it smoothly. In fact, following the
Fed announcement, short-term rates actually declined.
Q. HAVE RATES PEAKED, THEN?
S.O. That's quite possible. The goal of Fed policy ever since it began
raising short-term interest rates in February 1994 has been to dampen the
economic growth rate and prevent an outbreak of inflation. Apparently, the
policy has worked. In April, the first-quarter growth rate came in at a
surprisingly low 2.8%. That marked a dramatic slowdown from the robust 5.1%
growth rate during the fourth quarter of 1994. The pattern of slower growth
persisted throughout the spring. By the end of the period, it seemed highly
unlikely that the Fed would see the need to raise rates again anytime soon.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
Hardcopy of
Photo of
JEFF PARKER
to come
from WTC
S.O. Whenever practical during the period, I avoided investing in small
municipal offerings of the kind typically issued by Connecticut counties
and municipalities. That's because smaller issues tend to be absorbed
quickly into the market at lower yields. Instead, I looked for
opportunities elsewhere: in tax-free commercial paper; in variable rate
demand notes, which offer yields that reset regularly in line with
prevailing rates; and in large, statewide municipal offerings, which are
too large for the Connecticut market to absorb and tend to come in at
higher yields. Meanwhile, I continued to let the fund's average maturity
roll down toward neutral territory throughout the period.
Q. HOW DID THE FUND PERFORM?
S.O. The fund's seven-day yield on May 31, 1995 was 3.46%, compared to
3.10% six months ago. On an after-tax basis, the fund's latest yield is the
equivalent of a 5.65% taxable rate for Connecticut investors in the 38.88%
income tax bracket. Through May 31, 1995, the fund's six-month total return
was 1.66%, compared to 1.61% for the average Connecticut tax-exempt money
market fund, according to IBC/Donoghue.
Q. JEFF, WHAT'S YOUR OUTLOOK?
J.P. There's been a dramatic shift in market psychology in recent months.
Early this year, many economists were predicting that the Fed would go
right on raising interest rates through the summer. However, the economy
has slowed, and now most economists believe it's only a matter of time
before the Fed begins lowering rates. With that in mind, I'll probably
maintain some flexibility, while looking for opportunities to gradually
extend the fund's average maturity in the months ahead.

FUND FACTS
GOAL: tax-free income and
stability by investing in
high-quality, short-term,
Connecticut municipal money
market securities
START DATE: August 29, 1989
SIZE: as of May 31, 1995,
more than $311 million
MANAGER: Scott Orr, 1993 -
June 1995. Jeff Parker,
starting June 1, 1995; also
manager,
Fidelity Michigan Municipal
Money Market Portfolio,
Fidelity New Jersey Municipal
Money Market Portfolio,
Spartan Connecticut
Municipal Money Market
Portfolio, and Spartan New
Jersey Municipal Money
Market Portfolio, joined
Fidelity in 1991
(checkmark)

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/95 11/30/94 5/31/94

0 - 30 64 66 60

31 - 90 22 6 27

91 - 180 13 10 12

181 - 397 1 18 1

WEIGHTED AVERAGE MATURITY
5/31/95 11/30/94 5/31/94

Fidelity Connecticut
Municipal Money Market
Portfolio 30 days 65 days 43 days

Average Connecticut
Tax-Free Money
Market Fund* 38 days 61 days 60 days

ASSET ALLOCATION
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994

Row: 1, Col: 1, Value: 58.0
Row: 1, Col: 2, Value: 21.0
Row: 1, Col: 3, Value: 15.0
Row: 1, Col: 4, Value: 5.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 58.0
Row: 1, Col: 2, Value: 16.0
Row: 1, Col: 3, Value: 19.0
Row: 1, Col: 4, Value: 3.0
Row: 1, Col: 5, Value: 4.0
Variable rate
demand notes
(VRDNs) 58%
Commercial
paper 21%
Tender bonds 15%
Municipal
notes 5%
Other 1%
Variable rate
demand notes
(VRDNs) 58%
Commercial
paper 16%
Tender bonds 19%
Municipal
notes 3%
Other 4%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS MAY 31, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - 0.8%
Irvine Apt. Dev. Rev. (San Rafael Apts. Proj.) Series 1992 A,
4.40%, LOC Sumitomo Bank Ltd., VRDN (b) $ 2,500,000 $ 2,500,000
CONNECTICUT - 79.2%
Clipper Participating VRDN,
Series 94-1, 4.15%, (Liquidity Facility
State Street Bank & Trust Co.)(c) 10,302,339 10,302,339
Connecticut Dev. Auth. (Shelton Inn Proj.) Series 1986,
4.50%, LOC Bank of Tokyo, VRDN (b) 5,200,000 5,200,000
Connecticut Dev. Auth. Ind. Dev. Rev.
(Cap. Dist. Energy Ctr. Proj.) Series 1986, 4.10%,
LOC Canadian Imperial Bank of Commerce, VRDN (b) 7,800,000 7,800,000
Connecticut Dev. Auth. Poll. Cont. Rev.
(Connecticut Light & Pwr. Co. Proj.) Series B, 4%,
LOC Union Bank of Switzerland, VRDN (b) 15,000,000 15,000,000
Connecticut Dev. Auth. Solid Waste Disp. Facs. Rev.,
VRDN (b):
(Exeter Energy Proj.):
Series 1989 A, 3.40%, LOC Sanwa Bank 3,000,000 3,000,000
Series 1989 B, 3.40%, LOC Sanwa Bank 9,300,000 9,300,000
Series 1989 C, 3.40%, LOC Sanwa Bank 1,300,000 1,300,000
(Rand-Whitney Containerboard), 3.30%,
LOC Chase Manhattan Bank 6,700,000 6,700,000
Connecticut Dev. Auth. Health. Care Rev. (Corp. for
Independent Living Proj.) Series 1990, 3.45%,
LOC Cr. Commercial de France, VRDN 9,800,000 9,800,000
Connecticut Dev. Auth. Ind. Dev. Rev., VRDN (b):
(Cap. Dist Energy Ctr. Proj.) Series 1988, 4.10%,
LOC Canadian Imperial Bank of Commerce 100,000 100,000
(Lindenmaier Precision Co. Ohaus Proj) Series 1988,
3.80%, LOC Morgan Guaranty 8,000,000 8,000,000
Connecticut Dev. Auth. Water Facs. Rev.
(Bridgeport Hydraulic Co.) Series 1995, 3.25%,
LOC Societe Generale, VRDN 6,900,000 6,900,000
Connecticut Econ. Recovery Notes:
Series A, 5.40% 6/15/95 2,000,000 2,000,867
Series A, 5.40% 12/15/95 1,000,000 1,006,518
Connecticut Gen. Oblig. Econ. Recovery Notes
Series 1991 B, 3.55% (BPA Canadian Imperial Bank
of Commerce, Ind. Bank of Japan Ltd.,
Nat'l. Westminster Bank PLC) VRDN 500,000 500,000
Connecticut Gen. Oblig. Participating VRDN (c):
Series BT-103, 4.10%, (Liquidity Facility Bankers Trust) 3,165,000
3,165,000
Series MGT-27, 4.25%,
(Liquidity Facility Morgan Guaranty Trust Co.) 4,400,000 4,400,000
Series PA-50, 4.15%,
(Liquidity Facility Merrill Lynch & Co.) 2,000,000 2,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Health. & Edl. Facs. Auth. Rev.:
(Bridgeport Hosp.) Series B, 3.45%,
LOC Fuji Bank, VRDN $ 900,000 $ 900,000
(Charlotte Hungerford Hosp.) Series B, 4.10%,
LOC Mitsubishi Bank Ltd., VRDN 600,000 600,000
(Kent School) Series A, 3.20%,
LOC Barclays Bank PLC, VRDN 1,600,000 1,600,000
(Pomfret School) Series A, 3.55%,
LOC Credit Local De France 1,000,000 1,000,000
Bonds:
(Windham Community Memorial Hosp.) Series B,
3.85% tender 6/14/95, LOC Banque Paribas 5,000,000 5,000,000
(Yale University):
Series L, 4% tender 7/21/95 3,550,000 3,550,000
Series L, 4.15% tender 6/1/95 1,500,000 1,500,000
Series M:
4.05% tender 6/8/95 2,900,000 2,900,000
4% tender 7/21/95 4,300,000 4,300,000
Series N, 4.15% tender 6/1/95 3,100,000 3,100,000
Series O:
4.05% tender 6/8/95 4,700,000 4,700,000
4.10% tender 7/20/95 8,400,000 8,400,000
Connecticut Hsg. Fin. Auth. Bonds (Hsg Mtg. Fin. Prog.):
Series 1993 H-1, 4.30%, tender 9/1/95 17,000,000 17,000,000
Series 1993 H-2, 4.40%, tender 9/1/95 (b) 13,000,000 13,000,000
Connecticut Muni. Elec. Energy Coop. Pwr. Supply Sys.
Rev. Bonds Series 1995 A, 4% tender 7/25/95,
LOC Fleet Bank 2,000,000 2,000,000
Connecticut Second Lien Spl. Tax Oblig.
(Transport Infrastructure) Series 1, 3.40%,
LOC Industrial Bank of Japan, VRDN 29,275,000 29,275,000
Connecticut Spl. Assessment Unemployment Rev.:
Series 1993 B, 3.65%,
LOC Mitsubishi Bank, VRDN 7,200,000 7,200,000
Series 1993 C, 3.85%, tender 7/1/95
(FGIC Insured) 18,000,000 18,000,000
Connecticut Reg'l. School Dist. #13 BAN 4.50% 8/1/95 2,000,000 2,000,809
East Haven BAN 4.75% 11/1/95 9,000,000 9,017,823
Fairfield BAN 5.25% 1/16/96 1,000,000 1,002,395
New Haven Ind. Dev. Rev. (Starter Sportswear), Series 1986,
4.30%, LOC Nat'l. Westminster Bank, VRDN (b) 2,800,000 2,800,000
South Central Reg'l. Water Auth. Participating VRDN, 4%,
(FGIC Insured) (Liquidity Facility Morgan Guaranty) (c) 2,400,000
2,400,000
Stamford Hsg. Auth. Mutimodal Rev. (Morgan Street Proj.)
Series 1994, 3.65%, LOC Deutsche Bank, VRDN (b) 5,000,000 5,000,000
Stratford BAN 4.50% 10/18/95 2,000,000 2,000,316
244,721,067
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
DELAWARE - 1.0%
Delaware Econ. Dev. Auth. Exempt. Facs. Rev.
(Delmarva Pwr. & Lt. Co. Proj.) 4.45%, VRDN (b) $ 3,000,000 $ 3,000,000
LOUISIANA - 1.0%
Plaquemines Parish Envir. Rev. Rfdg.
(BP Exploration & Oil, Inc.) VRDN:
Series 1994, 4.25% 2,200,000 2,200,000
Series 1995, 4.25% 800,000 800,000
3,000,000
MICHIGAN - 0.5%
Midland County Econ. Dev. Corp. Rev. (Dow Chemical Co.
Proj.) Series 1993 A, 4.10%, VRDN 1,500,000 1,500,000
PUERTO RICO - 16.2%
Puerto Rico Commonwealth Participating VRDN (c):
Series PT-63, 4.05%, (Liquidity Facility
Bayerische Hypotheken/Wech Bank) 2,100,000 2,100,000
Series PW-6, 3.75% (Liquidity Facility
Bank of Nova Scotia) 4,300,000 4,300,000
Puerto Rico Elec. Pwr. Auth. Rev. Participating VRDN,
BT-105, 3.775%, (Liquidity Facility Bankers Trust Co.) (c) 13,158,000
13,158,000
Puerto Rico Ind., Med., Higher Edl. & Envir. Cont. Facs.
Fin. Auth. Bonds (Inter American University)
4.10% tender 7/21/95, LOC Bank of Tokyo 3,200,000 3,200,000
Puerto Rico Gov't. Dev. Bank CP:
4.05% 7/10/95 6,000,000 6,000,000
4% 7/11/95 2,500,000 2,500,000
4.10% 7/14/95 7,000,000 7,000,000
4.10% 7/17/95 8,000,000 8,000,000
4.15% 8/11/95 2,900,000 2,900,000
49,158,000
TEXAS - 1.3%
Gulf Coast Ind. Dev. Auth. Solid Waste Disp. Rev. (Citgo
Petroleum) 4.25% LOC Wachovia Bank, VRDN (b) 1,000,000 1,000,000
Gulf Coast Waste Disp. Auth. Poll. Cont. Rev.
(Amoco Oil Co.) 4.20%, VRDN (b) 1,000,000 1,000,000
Gulf Coast Waste Disp. Auth. Rev. (Amoco Oil Co. Proj.)
4.20%, VRDN (b) 2,000,000 2,000,000
4,000,000
TOTAL INVESTMENTS - 100% $ 307,879,067
Total Cost for Income Tax Purposes $ 307,879,067

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At November 30, 1994, the fund had a capital loss carryforward of
approximately $26,700 of which $1,400, $400, $8,900 and $16,000 will expire
on November 30, 1999, 2000, 2001 and 2002, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)

3.ASSETS 4. 5.

6.Investment in securities, at value - See accompanying 7. $ 307,879,067
schedule

8.Cash 9. 1,693,647

10.Interest receivable 11. 2,594,316

12. 13.TOTAL ASSETS 14. 312,167,030

15.LIABILITIES 16. 17.

18.Distributions payable $ 54,279 19.

20.Accrued management fee 102,149 21.

22.Other payables and accrued expenses 76,836 23.

24. 25.TOTAL LIABILITIES 26. 233,264

27.28.NET ASSETS 29. $ 311,933,766

30.Net Assets consist of: 31. 32.

33.Paid in capital 34. $ 311,968,058

35.Accumulated net realized gain (loss) on investments 36. (34,292)

37.38.NET ASSETS, for 311,968,058 shares outstanding 39. $ 311,933,766

40.41.NET ASSET VALUE, offering price and redemption 42. $1.00
price per share ($311,933,766 (divided by) 311,968,058 shares)

</TABLE>

STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)

43.44.INTEREST INCOME 45. $ 6,150,076

46.EXPENSES 47. 48.

49.Management fee $ 633,320 50.

51.Transfer agent, accounting and custodian fees 320,172 52.
and expenses

53.Non-interested trustees' compensation 1,302 54.

55.Registration fees 508 56.

57.Audit 9,800 58.

59.Legal 5,114 60.

61.Miscellaneous 3,478 62.

63. 64.TOTAL EXPENSES 65. 973,694

66.67.NET INTEREST INCOME 68. 5,176,382

69.70.NET REALIZED GAIN (LOSS) ON INVESTMENTS 71. (7,652)

72.73.NET INCREASE IN NET ASSETS RESULTING FROM 74. $ 5,168,730
OPERATIONS

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1995 NOVEMBER 30,
(UNAUDITED) 1994

75.INCREASE (DECREASE) IN NET ASSETS

76.Operations $ 5,176,382 $ 6,679,260
Net interest income

77. Net realized gain (loss) (7,652) (15,972)

78. 79.NET INCREASE (DECREASE) IN NET ASSETS 5,168,730 6,663,288
RESULTING FROM OPERATIONS

80.Distributions to shareholders from net interest (5,176,382) (6,679,260)
income

81.Share transactions at net asset value of $1.00 per 373,918,981 674,020,564
share
Proceeds from sales of shares

82. Reinvestment of distributions from net interest 4,931,607 6,437,923
income

83. Cost of shares redeemed (367,794,079) (668,124,024)

84.85. 11,056,509 12,334,463
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS

86. 87.TOTAL INCREASE (DECREASE) IN NET ASSETS 11,048,857 12,318,491

88.NET ASSETS 89. 90.

91. Beginning of period 300,884,909 288,566,418

92. End of period $ 311,933,766 $ 300,884,909

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
93. SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1995

94. (UNAUDITED) 1994 1993 1992 1991 1990

95.SELECTED PER-SHARE DATA

96.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value,
beginning of
period

97.Income from .016 .022 .019 .027 .044 .056
Investment
Operations
Net interest
income

98.Less (.016) (.022) (.019) (.027) (.044) (.056)
Distributions
From net
interest income

99.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value, end of
period

100.TOTAL 1.66% 2.19 1.87 2.74 4.54 5.77
RETURN B % % % % %

101.RATIOS AND
SUPPLEMENTAL DATA

102.Net assets, $ 311,934 $ 300,885 $ 288,566 $ 331,909 $ 418,337 $ 376,031
end of period
(000 omitted)

103.Ratio of .62% .60 .61 .43 .07 .23
expenses to A % % % % %
average net
assets

104.Ratio of .62% .60 .61 .59 .59 .63
expenses to A % % % % %
average net
assets before
expense
reductions

105.Ratio of net 3.32% 2.16 1.87 2.76 4.45 5.59
interest income A % % % % %
to average net
assets

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL
RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING
THE PERIODS SHOWN.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Connecticut Municipal Money Market Portfolio (the fund) is a fund
of Fidelity Court Street Trust II (the trust) and is authorized to issue an
unlimited number of shares. The trust is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Delaware business trust. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. Accretion
of market discount represents unrealized gain until realized at the time of
a security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1200% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .25%. For the period, the management
fee was equivalent to an annualized rate of .41% of average net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE - CONTINUED
any voluntary expense reimbursements which may be in effect, and after
reducing the fee for any payments by FMR pursuant to the fund's
Distribution and Service Plan.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $9,811 for the
period.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the custodian
and transfer and shareholder servicing agent for the fund. The Bank has
entered into a sub-contract with Fidelity Service Co. (FSC), an affiliate
of FMR, under which FSC performs the activities associated with the fund's
transfer and shareholder servicing agent and accounting functions. During
the period December 1, 1994 to December 31, 1994, the fund paid fees based
on the type, size, number of accounts and the number of transactions made
by shareholders. Effective January 1, 1995, the Board of Trustees approved
a revised transfer agent contract pursuant to which the fund pays account
fees and asset-based fees that vary according to account size and type of
account. FSC pays for typesetting, printing and mailing of all shareholder
reports, except proxy statements. The accounting fee is based on the level
of average net assets for the month plus out-of-pocket expenses. For the
period, FSC received transfer agent and accounting fees amounting to
$275,461 and $32,886, respectively.
Shareholders participating in the Fidelity Ultra Service Account(registered
trademark) Program (the Program) pay a $5.00 monthly fee to Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, for performing
services associated with the Program. For the period, fees paid to FBSI by
shareholders participating in the Program amounted to $12,180.
TO WRITE FIDELITY

TO CALL FIDELITY

FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call -
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.

(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.

Page 23 = BLANK
Do NOT strip-in this type
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning Jr., Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Thomas D. Maher, Assistant
Vice President
Michael D. Conway, Assistant Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S TAX-FREE
MONEY MARKET FUNDS
California Tax-Free Money Market
Connecticut Municipal Money Market
Massachusetts Tax-Free Money Market
Michigan Municipal Money Market
New Jersey Tax-Free Money Market
New York Tax-Free Money Market
Ohio Municipal Money Market
Spartan(registered trademark) Arizona Municipal
Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
Tax-Exempt Money Market
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

SPARTAN(registered trademark)

(registered trademark)
CONNECTICUT
MUNICIPAL
PORTFOLIOS

SEMIANNUAL REPORT
MAY 31, 1995
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

SPARTAN CONNECTICUT MUNICIPAL HIGH YIELD PORTFOLIO

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 19 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET PORTFOLIO

PERFORMANCE 23 How the fund has done over time.

FUND TALK 25 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 27 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 28 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 32 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 36 Notes to the financial statements.

</TABLE>

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888

FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
SPARTAN CONNECTICUT MUNICIPAL HIGH YIELD PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells
securities that have grown in value), and the effect of the $5 account
closeout fee. You can also look at the fund's income. If Fidelity had not
reimbursed certain fund expenses, the past five years and life of fund
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan Connecticut Municipal
High Yield Portfolio 14.02% 8.29% 47.23% 84.91%

Lehman Brothers Municipal Bond Index 13.05% 9.11% 51.33% n/a

Average Connecticut Tax-exempt
Municipal Bond Fund 13.43% 7.69% 46.22% n/a

Consumer Price Index 1.53% 3.19% 17.80% 32.00%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on October 29, 1987. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Lehman Brothers Municipal Bond index - a broad gauge of
the municipal bond market. To measure how the fund's performance stacked up
against its peers, you can compare it to the average Connecticut tax-exempt
municipal bond fund, which reflects the performance of 23 Connecticut
municipal bond funds with similar objectives tracked by Lipper Analytical
Services over the past six months. Both benchmarks include reinvested
dividends and capital gains, if any. Comparing the fund's performance to
the consumer price index (CPI) helps show how your fund did compared to
inflation. (The CPI returns begin on the month end closest to the fund's
start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Connecticut Municipal
High Yield Portfolio 8.29% 8.04% 8.43%

Lehman Brothers Municipal Bond Index 9.11% 8.64% n/a

Average Connecticut Tax-exempt
Municipal Bond Fund 7.69% 7.89% n/a

Consumer Price Index 3.19% 3.33% 3.73%

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Spartan ConnectiMunicipal Bond I
10/31/87 10000.00 10000.00
11/30/87 10121.14 10261.10
12/31/87 10253.38 10409.99
01/31/88 10621.33 10780.79
02/29/88 10727.51 10894.75
03/31/88 10415.77 10767.82
04/30/88 10463.24 10849.66
05/31/88 10515.58 10818.30
06/30/88 10713.46 10976.57
07/31/88 10766.94 11048.14
08/31/88 10821.12 11057.86
09/30/88 11033.66 11258.01
10/31/88 11228.48 11456.71
11/30/88 11123.75 11351.77
12/31/88 11289.82 11467.90
01/31/89 11442.62 11705.06
02/28/89 11333.30 11571.50
03/31/89 11345.51 11543.84
04/30/89 11654.63 11817.90
05/31/89 11899.33 12063.35
06/30/89 12098.25 12227.17
07/31/89 12229.60 12393.59
08/31/89 12100.68 12272.25
09/30/89 12064.54 12235.44
10/31/89 12207.62 12384.71
11/30/89 12387.76 12601.44
12/31/89 12467.78 12704.77
01/31/90 12357.27 12645.06
02/28/90 12469.60 12757.60
03/31/90 12491.34 12761.43
04/30/90 12296.35 12669.55
05/31/90 12602.20 12945.74
06/30/90 12730.24 13059.66
07/31/90 12919.64 13251.64
08/31/90 12687.34 13059.49
09/30/90 12769.37 13067.33
10/31/90 12962.06 13303.85
11/30/90 13241.66 13571.25
12/31/90 13302.08 13630.97
01/31/91 13449.71 13813.62
02/28/91 13534.39 13933.80
03/31/91 13556.04 13939.37
04/30/91 13728.33 14124.77
05/31/91 13850.06 14250.48
06/30/91 13743.00 14236.23
07/31/91 13906.13 14409.91
08/31/91 14057.22 14600.12
09/30/91 14183.28 14789.92
10/31/91 14323.10 14923.03
11/30/91 14357.59 14964.82
12/31/91 14709.45 15286.56
01/31/92 14731.80 15321.72
02/29/92 14739.08 15326.32
03/31/92 14671.72 15332.45
04/30/92 14749.26 15468.90
05/31/92 14951.25 15651.44
06/30/92 15245.81 15914.38
07/31/92 15720.88 16391.81
08/31/92 15498.38 16231.17
09/30/92 15604.48 16336.68
10/31/92 15338.54 16176.58
11/30/92 15752.71 16466.14
12/31/92 15918.26 16634.09
01/31/93 16155.63 16827.05
02/28/93 16812.50 17436.19
03/31/93 16583.73 17251.36
04/30/93 16736.58 17425.60
05/31/93 16834.46 17523.19
06/30/93 17132.68 17815.82
07/31/93 17158.04 17838.98
08/31/93 17547.22 18210.03
09/30/93 17760.01 18417.63
10/31/93 17769.52 18452.62
11/30/93 17613.41 18290.24
12/31/93 17984.08 18676.16
01/31/94 18192.21 18889.07
02/28/94 17691.72 18399.84
03/31/94 16886.79 17650.97
04/30/94 17031.87 17801.00
05/31/94 17133.36 17955.87
06/30/94 17026.95 17851.73
07/31/94 17368.71 18178.42
08/31/94 17407.79 18242.04
09/30/94 17121.76 17973.88
10/31/94 16740.39 17653.95
11/30/94 16273.39 17334.41
12/31/94 16722.36 17715.77
01/31/95 17257.49 18222.44
02/28/95 17785.12 18752.71
03/31/95 17975.02 18968.37
04/30/95 17995.56 18991.13
05/31/95 18555.39 19596.95

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Connecticut Municipal High Yield Portfolio on October 31, 1987, shortly
after the fund started. As the chart shows, by May 31, 1995, the value of
your investment would have grown to $18,555 - a 85.55% increase on your
initial investment. This assumes you still own the fund on May 31, 1995,
and therefore does not include the effect of the $5 account closeout fee.
For comparison, look at how the Lehman Brothers Municipal Bond index did
over the same period. With dividends reinvested, the same $10,000 would
have grown to $19,597 - a 95.97% increase.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield of
a fund that invests in bonds
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONT
HS
ENDED YEARS ENDED NOVEMBER 30,
MAY 31,

1995 1994 1993 1992 1991 1990

Dividend return 3.36% 5.27% 6.29% 6.59% 6.65% 6.71%

Capital appreciation
returns 10.66% -12.89% 5.52% 3.12% 1.77% 0.17%

Total return 14.02% -7.62% 11.81% 9.71% 8.42% 6.88%

DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.32(cents) 31.75(cents) 63.83(cents)

Annualized dividend rate 5.77% 6.03% 6.03%

30-day annualized yield 5.55% - -

30-day annualized tax-equivalent yield 9.08% - -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.86 over
the past month, $10.56 over the past six months and $10.58 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 38.88% 1995 combined federal and state tax bracket.
SPARTAN CONNECTICUT MUNICIPAL HIGH YIELD PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Maureen Newman,
Portfolio Manager of Spartan
Connecticut Municipal High Yield
Portfolio
Q. MAUREEN, HOW HAS THE FUND PERFORMED?
A. For the six- and 12-month periods ended May 31, 1995, the fund had total
returns of 14.02% and 8.29%, respectively. During the same periods, the
average Connecticut municipal fund returned 13.43% and 7.69%, respectively,
as tracked by Lipper Analytical Services.
Q. WHAT'S BEHIND THE MUNICIPAL BOND MARKET'S STRONG PERFORMANCE OVER THE
PAST SIX MONTHS?
A. First, let me set the stage by reviewing the months preceding the most
recent six-month period. Taxable and tax-free bond prices fell dramatically
during much of 1994, on the heels of rising interest rates and fears that
inflation would ignite. In September and October, tax-loss selling - which
occurs when investors try to offset gains in one investment by selling
another with losses and thereby reduce their tax liability - placed
additional downward pressure on the municipal bond market. However, the
bond market began to rebound in late November as investors worried less
that the Federal Reserve Board would further raise interest rates and
tax-loss selling abated. Bond prices have risen dramatically since November
as evidence has mounted that the economy is growing at a slower rate. When
economic growth slows, the fear of inflation generally recedes and bonds
typically perform well.
Q. WHY DID THE FUND DO BETTER THAN THE AVERAGE FUND OF ITS TYPE?
A. One factor that helped the fund's performance was its relatively large
weighting in bonds rated Aaa and Aa by Moody's Investors Service, which
performed well. Bonds issued by Puerto Rico, which made up 7.9% of
investments at the end of the period, were another positive for the fund.
As a territory of the United States, Puerto Rico may issue municipal bonds
free from local, state and federal income taxes in all 50 states. That
tax-exempt status kept demand for these bonds very strong. Also, many of
the fund's Puerto Rico bonds had a relatively long duration, meaning their
prices rose more than shorter-duration bonds when the municipal bond market
rallied.
Q. YOU'VE MADE SOME CHANGES IN THE WAY YOU DISTRIBUTE THE FUND'S
INVESTMENTS AMONG BONDS WITH VARIOUS MATURITIES. WHAT CAUSED YOU TO MAKE
THOSE CHANGES?
A. During the spring, the yield curve - which reflects the yields of
various maturities -flattened. When the yield curve is flat, there is
little difference between short-term and long-term interest rates. As a
result, investors didn't have to give up much yield to own bonds with
relatively short maturities and didn't have to take on the added interest
rate risk of a longer-term bond. As the flattening occurred, I sold some
longer term bonds with maturities between 20 and 25 years, and bought some
intermediate bonds in the 10- to 15-year range. Going forward, if the yield
curve steepens, and longer term bonds once again offer substantially higher
yields, I would most likely switch out of some intermediate bonds and buy
longer-term bonds in their place.
Q. THE FUND'S STAKE IN HEALTH CARE BONDS DROPPED TO 26.4% AT THE END OF THE
PERIOD, DOWN FROM 28.5% SIX MONTHS AGO. WHY?
A. I have some concerns about the state's changing health care environment.
HMO penetration in the state, which had occurred at a slower pace than many
other areas of the country, is now picking up steam. Also, the state has
made some legislative changes regarding how it reimburses hospitals. As a
result of these concerns, I sold some health care bonds during the period.
However, I will continue to hold a core stake in health care bonds because
they offer relatively attractive yields. I used some of the proceeds from
the sale of health care bonds to buy single family mortgage revenue bonds,
which fall under the category of housing bonds. The high yield these bonds
offer makes them an attractive replacement for health care bonds.
Q. GENERAL OBLIGATION BONDS WERE THE FUND'S SECOND LARGEST SECTOR
CONCENTRATION AT THE END OF THE PERIOD AT 23.5% OF THE INVESTMENTS. WHAT
MAKES THESE BONDS ATTRACTIVE?
A. General obligation bonds, or GOs, are backed by the full faith and
credit, - which includes the taxing and further borrowing power - of a
state or municipality. Despite proposed reductions in state income taxes,
the state of Connecticut should be able to maintain a balanced budget. So
in my view, Connecticut's general obligation bonds remain a solid
investment. The state's economy has shown some recent improvement, although
its growth continues to lag the national economy. However, income levels in
the state are quite strong and certain sectors of the economy - including
the service and tourism sectors - are showing promise.
Q. WHAT'S YOUR OUTLOOK?
A. In the spring there had been some discussion about how various federal
tax reform proposals - including a flat tax - would affect the
attractiveness of municipal bonds. During that time, tax-exempt bonds
underperformed taxable bonds. In my view, it's unlikely that there will be
any major tax reform proposal passed until 1997 at the earliest, although
there could be volatility in municipal bond prices as discussions of tax
reform heat up or fade in the near-term. I think that the national economy
is beginning to slow, but I don't foresee a recession in the near future.
Therefore, interest rates could stay low while tax receipts and other
revenues backing municipal bonds should remain strong. I believe that those
factors combine to create an attractive outlook for the municipal bond
market.

FUND FACTS
GOAL: high current tax-free
income for Connecticut
residents
START DATE: October 29, 1987
SIZE: as of May 31, 1995,
more than $349 million
MANAGER: Maureen Newman,
since 1994; manager Michigan
Tax-Free High Yield Fund,
since 1994, Spartan
Aggressive Municipal Fund,
and Spartan Arizona Municipal
Income Fund since 1994; bond
analyst, 1985 to 1994; joined
Fidelity in 1985
(checkmark)

MAUREEN NEWMAN ON
MANAGING THE FUND:
"One way I try to add value to
the fund is by identifying
sectors which I believe have
the potential to outperform. I
start with a top down view,
and assess how broad
economic and other trends
might shape a particular
sector's prospects. I use
fundamental research -
checking investment options
issuer by issuer - to identify
individual bonds which I
believe present an adequate
reward to compensate for
potential risk. Once I
determine which sectors and
individual bonds within that
sector look attractive, I
consider how I want the fund
to be distributed in terms of
maturity."
SPARTAN CONNECTICUT MUNICIPAL HIGH YIELD PORTFOLIO

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF MAY 31, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO

Health Care 26.4 28.5

General Obligation 23.5 25.0

Special Tax 11.0 11.6

Transportation 8.0 7.6

Education 7.6 7.1

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1995
6 MONTHS AGO

Years 17.8 18.5

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF MAY 31, 1995
6 MONTHS AGO

Years 8.0 8.2

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
CAN ALSO INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994
Aaa 19.7%
Aa, A 39.6%
Baa 24.1%
Ba, B 2.3%
Non-rated 9.7%
Short-term
investments 4.6%
Aaa 17.1%
Aa, A 36.5%
Baa 29.5%
Ba, B 2.4%
Non-rated 10.2%
Short-term
investments 4.3%
Row: 1, Col: 1, Value: 19.7
Row: 1, Col: 2, Value: 39.6
Row: 1, Col: 3, Value: 24.1
Row: 1, Col: 4, Value: 2.3
Row: 1, Col: 5, Value: 9.699999999999999
Row: 1, Col: 6, Value: 4.6
Row: 1, Col: 1, Value: 17.1
Row: 1, Col: 2, Value: 36.5
Row: 1, Col: 3, Value: 29.5
Row: 1, Col: 4, Value: 2.4
Row: 1, Col: 5, Value: 10.2
Row: 1, Col: 6, Value: 4.3
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED DEBT SECURITIES THAT ARE
EQUIVALENT TO BA AND BELOW ACCOUNT FOR 9.7% AND 10.2% OF THE FUND'S
INVESTMENTS AT MAY 31, 1995 AND NOVEMBER 30, 1994, RESPECTIVELY.
SPARTAN CONNECTICUT MUNICIPAL HIGH YIELD PORTFOLIO

INVESTMENTS MAY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 95.4%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - 86.8%
Branford Gen. Oblig. Unltd. Tax:
7% 6/15/08 (FGIC Insured) Aaa $ 500,000 $ 574,984
7% 6/15/09 (FGIC Insured) Aaa 500,000 573,750
Bridgeport Gen. Oblig. Series B,
7.75% 11/15/10 Ba1 3,235,000 3,465,494
Bridgeport Unltd. Tax Series A:
7.20% 3/1/98 Ba1 930,000 967,200
7.40% 3/1/00 Ba1 1,080,000 1,148,850
7.25% 6/1/02 Ba1 565,000 598,900
7.625% 1/15/09 Ba1 1,500,000 1,584,375
Brookfield Gen. Oblig.:
5.25% 7/15/10 Aa 200,000 194,750
5.25% 7/15/11 Aa 200,000 193,500
5.25% 7/15/12 Aa 200,000 192,250
5.25% 7/15/13 Aa 190,000 182,400
Canterbury Unltd. Tax:
7.20% 5/1/05 A 350,000 400,750
7.20% 5/1/06 A 195,000 223,519
Cheshire Unltd. Tax:
6.90% 2/15/06 Aa 100,000 115,250
6.90% 2/15/07 Aa 100,000 114,875
6.90% 2/15/08 Aa 100,000 115,000
Connecticut Clean Wtr. Fund Rev.:
Series 1991, 7% 1/1/11 Aa 2,500,000 2,728,125
5.875% 4/1/08 Aa 1,000,000 1,051,250
6% 10/1/12 (e) Aa 6,000,000 6,285,000
Connecticut Dev. Auth. 1st. Mtg. Gross Rev.:
(Health Care Proj.):
(Baptist Homes, Inc.):
8.75% 9/1/12 - 2,415,000 2,547,825
9% 9/1/22 - 4,240,000 4,542,100
(Inter-Church Residences, Inc.):
9.50% 5/1/13 - 1,200,000 1,324,500
9.625% 4/1/21 - 3,500,000 3,885,000
(Mary Wade Home, Inc. Proj.)
8.875%, 12/1/18 - 1,670,000 1,734,713
Connecticut Dev. Auth. Health Care:
Rfdg. (Duncaster, Inc. Proj.)
6.75% 9/1/15 Aa3 3,000,000 3,131,250
(Jerome Home Proj.) 8% 11/1/19 - 1,975,000 2,056,469
Connecticut Dev. Auth. Poll. Cont. Rev.:
(New England Pwr. Co. Proj.)
7.25% 10/15/15 A1 3,000,000 3,225,000
(United Illuminating Co. Proj.)
9.50% 6/1/16 BBB- 2,625,000 2,792,344
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Dev. Auth. Rev. (Hartford Civic Ctr.)
Series A:
6% 11/15/07 A1 $ 1,525,000 $ 1,595,531
6% 11/15/08 A1 1,525,000 1,593,625
6% 11/15/08 A1 1,525,000 1,584,094
4.75% 11/15/13 A1 1,525,000 1,342,000
Connecticut Dev. Auth. Wtr. Facs. Rev. Rfdg.
(Bridgeport Hydraulic Co. Proj.)
7.25% 6/1/20 A+ 1,000,000 1,077,500
Connecticut Gen. Oblig.:
(Cap. Appreciation College Savings Plan):
Series A, 0% 12/1/07 Aa 4,000,000 2,065,000
Unltd. Tax Series B, 0% 11/1/09 Aa 11,390,000 5,182,450
(College Savings Plan):
Series 1991 A, 0% 5/15/10 Aa 1,025,000 451,000
Series A:
0% 5/15/07 Aa 2,250,000 1,198,125
0% 5/15/10 Aa 7,980,000 3,501,225
0% 5/15/11 Aa 3,350,000 1,377,688
Series B:
0% 11/1/06 Aa 2,800,000 1,554,000
0% 11/15/10 Aa 4,460,000 1,901,075
Unltd. Tax:
Rfdg. Series B:
5.30%3/15/07 Aa 1,500,000 1,505,625
5.50% 3/15/10 Aa 2,000,000 2,002,500
5.50% 3/15/10 Aa 1,000,000 1,001,250
Series A, 0% 6/15/10 Aa 2,188,000 954,515
Series B:
0%, 12/15/10 Aa 2,428,000 1,028,865
0%, 12/15/11 Aa 1,496,000 596,530
0%, 12/1/11 Aa 1,540,000 614,075
Series A:
6.10% 3/15/02 Aa 2,000,000 2,142,500
7% 3/15/03 Aa 5,000,000 5,650,000
Connecticut Health & Ed. Facs. Auth. Rev.:
Rfdg. (Hartford Univ.) Series D, 6.80%
7/1/22 Baa 6,320,000 6,075,100
Rfdg. (Lawrence & Memorial Hosp.)
Series D, 5% 7/1/13 (MBIA Insured) Aaa 2,000,000 1,845,000
Rfdg. (Quinnipiac College) Series D:
6%, 7/1/13 BBB- 3,750,000 3,515,625
6% 7/1/23 BBB- 3,975,000 3,627,188
(Bristol Hosp.) Issue A:
7% 7/1/09 (MBIA Insured) Aaa 1,750,000 1,900,938
7% 7/1/20 (MBIA Insured) Aaa 4,180,000 4,540,525
(Lutheran Gen. Health Care Sys. Parkside
Lodges) 7.375% 7/1/19 Aaa 3,195,000 3,837,994
(New Britian Mem. Hosp.)
Series A, 7.75% 7/1/22 BBB- 16,900,000 17,871,750
(Norwalk Health Care, Inc.)
Series A, 8.70% 7/1/22 - 6,600,000 7,037,250
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Health & Ed. Facs. Auth. Rev. - continued
(Quinnipiac College)
Series C, 7.75% 7/1/20
(Pre-Refunded to 7/1/00 @ 102) (f) BBB- $ 1,000,000 $ 1,151,250
(Sacred Heart Univ.) Series A, 6.85%
7/1/22, LOC Fleet Nat'l. Bank A 1,000,000 1,023,750
(Sharon Healthcare, Inc.):
Series A:
8.75% 7/1/06
(Pre-Refunded to 7/1/01 @ 103) (f) AAA 450,000 555,750
9% 7/1/13
(Pre-Refunded to 7/1/01 @ 103) (f) AAA 1,300,000 1,623,375
9.20% 7/1/21
(Pre-Refunded to 7/1/01 @ 103) (f) AAA 1,500,000 1,888,125
(St. Francis Hosp. & Med. Ctr.) Series C,
5% 7/1/23 (FGIC Insured) Aaa 1,850,000 1,648,813
(St. Joseph Living Ctr. Proj.)
4.75% 11/1/14 A1 3,250,000 2,799,063
(St. Mary's Hosp.):
Issue B:
7.60% 7/1/03 Baa 900,000 958,500
7.80% 7/1/09 Baa 9,525,000 9,917,906
Series C, 7.375% 7/1/20 Baa 1,920,000 1,948,800
(St. Raphael Hosp.) Series H:
5.25% 7/1/14 (AMBAC Insured) Aaa 4,400,000 4,229,500
6.50% 7/1/11 (AMBAC Insured) Aaa 2,780,000 3,064,950
6.50% 7/1/13 (AMBAC Insured) Aaa 3,125,000 3,449,219
(The Griffin Hosp.) Series A, 6% 7/1/13 Baa1 850,000 787,313
(Tolland County Health Care, Inc.) Series A:
8.75% 7/1/08 - 350,000 379,313
9% 7/1/13 - 1,000,000 1,096,250
9.20% 7/1/21 - 3,600,000 3,982,500
(Yale Univ.) 7.294% 5/15/30 INFL (d) Aaa 7,000,000 7,175,000
(Yale-New Haven Hosp.) Series F, 7.10%
7/1/25 (MBIA Insured) Aaa 5,000,000 5,456,250
Connecticut Higher Ed. Supplemental Loan
Auth. Rev. (b):
(Family Ed. Loan Prog.) Series A,
7.20% 11/15/10 A 935,000 1,001,619
Series A:
7.375% 11/15/05 A1 555,000 585,525
7.50% 11/15/10 A1 1,915,000 2,022,719
Connecticut Hsg. Fin. Auth. (Mtg. Fin. Prog.):
Series C, 7.625% 11/15/17 Aa 540,000 552,825
Series E, 8.75% 11/15/18 Aa 4,455,000 4,649,906
Subseries A-2, 6.45% 5/15/22 Aa 2,500,000 2,509,375
Sub-Series B1:
6.125% 5/15/18 Aa 4,650,000 4,655,813
7.55% 11/15/08 Aa 965,000 1,045,819
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Muni. Elec. Energy Coop. Pwr.
Supply Sys. Rev. Series A, 5% 1/1/18
(MBIA Insured) Aaa $ 5,555,000 $ 5,075,881
Connecticut Resource Recovery Auth. Rev.
(American Refuse Fuel Co.)
8.10% 11/15/15 (b) A2 4,500,000 4,966,875
Connecticut Spl. Tax. Oblig. Rev.:
(Trans. Infrastructure):
Rfdg. Series A, 5.25% 9/1/07 A1 4,165,000 4,133,763
Rfdg. Series 1993 A, 5.375% 9/1/08 A1 6,705,000 6,663,094
Series A, 7.125% 6/1/10 A1 3,550,000 4,122,438
Series B:
0% 6/1/08 A1 3,500,000 1,728,125
6.15% 9/1/09 A1 1,500,000 1,595,625
6.50% 10/1/10 A1 3,250,000 3,566,875
6.125% 9/1/12 A1 5,000,000 5,262,500
6.50% 10/1/12 A1 3,500,000 3,828,125
Eastern Connecticut Resource Recovery Auth.
Solid Waste Rev.
(Wheelabrator Lisbon Proj.) Series A (b):
5% 1/1/04 A 1,000,000 921,250
5.50% 1/1/15 (e) A 8,000,000 7,000,000
5.50% 1/1/20 A 3,000,000 2,568,750
Franklin Unltd. Tax:
7.30% 3/15/04 A 225,000 254,250
7.30% 3/15/05 A 225,000 256,500
7.30% 3/15/06 A 225,000 258,750
Hartford County Metropolitan Dist:
6.20% 11/15/09 Aa1 250,000 267,188
School Boards Unltd. Tax 9.50% 6/1/03 Aa1 100,000 129,125
Manchester Redev. Agcy. (Multi-Family Hsg.)
7.20% 12/1/18 - 1,545,000 1,554,656
Meriden Unltd. Tax 7% 10/1/07 Aaa 500,000 576,875
Milford Gen. Oblig.:
5.20% 1/15/11 Aa 550,000 528,000
5.20% 1/15/13 Aa 500,000 476,250
Unltd. Tax:
6.70% 2/1/05 Aa 400,000 452,000
6.70% 2/1/08 Aa 315,000 354,769
Monteville Gen. Oblig.:
Unltd. Tax:
7% 3/15/13 Aa 220,000 257,675
7% 3/15/14 Aa 220,000 258,775
7% 3/15/15 Aa 210,000 248,325
6.30% 3/1/10 Aa 405,000 440,438
Naugatuck Unltd. Tax:
7.25% 9/1/04 (MBIA Insured) Aaa 215,000 249,669
6.90% 6/15/07 (FGIC Insured) Aaa 485,000 551,688
7.40% 9/1/07 (MBIA Insured) Aaa 370,000 437,988
7.40% 9/1/08 (MBIA Insured) Aaa 370,000 437,988
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
New Britain Gen. Oblig.:
Unltd. Tax:
Rfdg. 6% 2/1/12 (MBIA Insured) Aaa $ 400,000 $ 419,000
7% 4/1/07 (MBIA Insured) Aaa 580,000 661,200
7% 4/1/08 (MBIA Insured) Aaa 580,000 662,650
Series B, 6% 3/1/12 (MBIA Insured) Aaa 2,000,000 2,095,000
5% 2/1/12 (MBIA Insured) Aaa 885,000 821,944
5% 2/1/13 (MBIA Insured) Aaa 885,000 819,731
New Haven Facs. Rev. (Easter Seal Goodwill
Rehabilitation Proj.) 8.875% 4/1/16 - 1,565,000 1,631,513
New Haven Gen. Oblig.:
8.25% 8/15/01 Baa 3,280,000 3,735,100
Series A, 7.40% 3/1/12 Baa 1,000,000 1,071,250
7% 2/15/03 (FGIC Insured) Aaa 1,250,000 1,403,125
7% 2/15/04 (FGIC Insured) Aaa 1,250,000 1,414,063
7% 2/15/05 (FGIC Insured) Aaa 1,250,000 1,425,000
Newington Unltd. Tax:
6.50% 2/1/06 A1 320,000 353,600
6.60% 2/1/07 A1 200,000 222,250
North Haven Unltd. Tax 7% 10/1/08 Aa 375,000 440,625
North Thompsonville Fire Dist. # 10:
6.75% 6/1/07 (MBIA Insured) Aaa 180,000 204,525
6.75% 6/1/08 (MBIA Insured) Aaa 190,000 215,650
6.75% 6/1/09 (MBIA Insured) Aaa 200,000 226,250
6.75% 6/1/10 (MBIA Insured) Aaa 215,000 246,981
6.75% 6/1/11 (MBIA Insured) Aaa 230,000 265,650
Norwalk Hsg. Auth. Mtg. Rev. (Monterey Village)
Series 1985 B (Section 8) 9% 11/1/99 BBB 165,000 170,981
Plainville Gen. Oblig.:
6.60% 8/15/08 A1 250,000 277,813
Unltd. Tax:
6.60% 8/15/09 A1 250,000 279,375
6.60% 8/15/10 A1 250,000 279,375
6.60% 8/15/11 A1 250,000 280,625
Stamford Gen. Oblig. Unltd. Tax:
6.60% 1/15/07 Aaa 295,000 335,931
6.60% 1/15/08 Aaa 1,480,000 1,683,500
7% 6/15/08 Aaa 500,000 570,000
6.60% 1/15/09 Aaa 1,000,000 1,130,000
Thomaston Unltd. Tax 6.50% 8/1/09 A 210,000 228,113
Vernon Unltd. Tax:
7.10% 10/15/07 A1 250,000 295,313
7.10% 10/15/08 A1 250,000 295,313
Voluntown Gen. Oblig. Unltd. Tax:
6.75% 10/1/03 A 210,000 231,525
6.75% 10/1/04 A 210,000 233,100
6.80% 10/1/06 A 210,000 237,300
6.80% 10/1/07 A 210,000 235,200
6.80% 10/1/08 A 210,000 239,663
6.80% 10/1/09 A 185,000 209,513
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
West Haven Impt. Unltd. Tax 6.70% 2/15/04,
(MBIA Insured) Aaa $ 710,000 $ 794,313
Winchester Gen. Oblig. Unltd. Tax:
7.10% 11/15/06 A1 125,000 143,438
7.10% 11/15/08 A1 110,000 126,500
Wolcott Gen. Oblig. Unltd. Tax :
7% 6/15/09 (FGIC Insured) Aaa 445,000 506,188
7% 6/15/10 (FGIC Insured) Aaa 440,000 501,050
Woodstock Spl. Oblig. Rev.
(Woodstock Academy) 7% 3/1/08
(AMBAC Insured) Aaa 725,000 792,063
294,114,703
PUERTO RICO - 7.9%
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Rev. Rfdg.:
Series V, 6.625% 7/1/12 Baa1 1,750,000 1,846,250
Series W, 5.50% 7/1/13 Baa1 14,250,000 13,804,688
Series X:
5.50% 7/1/13 Baa1 2,500,000 2,421,875
5.50% 7/1/15 Baa1 8,000,000 7,690,000
Puerto Rico Pub. Bldgs. Auth. Pub. Ed. &
Health Facs. Rfdg.
Series M, 5.75% 7/1/15 Baa1 1,000,000 978,750
26,741,563
U.S. VIRGIN ISLANDS - 0.3%
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys.
Series A, 7.40% 7/1/11 - 1,000,000 1,070,000
GUAM - 0.4%
Guam Arpt. Auth. Gen. Rev. Series B, 6.40%
10/1/05 (b) BBB 1,250,000 1,279,688
TOTAL MUNICIPAL BONDS
(Cost $308,414,080) 323,205,954
MUNICIPAL NOTES (A) - 4.6%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - 4.6%
Connecticut Dev. Auth. Poll. Cont. Rev., VRDN:
(Connecticut Light & Pwr. Co. Proj. 1993)
Series A, 3.40% 9/1/28,
LOC Deutsche Bank VMIG 1 $ 7,100,000 $ 7,100,000
(Western Massachusetts Elec. Co. Proj.)
Series 1993A, 3.75% 9/1/28,
LOC Union Bank of Switzerland, VRDN VMIG 1 2,000,000 2,000,000
Connecticut Spl. Assessment Unemployment
Rev. Series 1993B, 3.65%,
LOC Industrial Bank of Japan,
Mitsubishi Bank Ltd. Japan, VRDN VMIG 1 6,450,000 6,450,000
TOTAL MUNICIPAL NOTES
(Cost $15,550,000) 15,550,000
TOTAL INVESTMENTS - 100%
(Cost $323,964,080) $ 338,755,954
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SOLD
45 U.S. Treasury Bond Futures June 1995 $ 5,086,406 $ (451,814)
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 1.5%

SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
(d) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(e) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(f) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(g) Inverse floating rate security is a security where the coupon is
inversely indexed to a floating interest rate. The price will be more
volatile than the price of a comparable fixed rate security.
(h) A portion of the Security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $10,435,800.
(i) 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 investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 54.4% AAA, AA, A 63.4%
Baa 15.1% BBB 12.2%
Ba 2.3% BB 2.3%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 9.7%. FMR has
determined that unrated debt securities that are lower quality account for
9.7% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Health Care 26.4%
General Obligation 23.5
Special Tax 11.0
Others
(individually less than 10%) 39.1
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1995, the aggregate cost of investment securities for income tax
purposes was $323,970,301. Net unrealized appreciation aggregated
$14,785,653, of which $18,898,879 related to appreciated investment
securities and $4,113,226 related
to depreciated investment securities.
The fund has elected to defer to its fiscal year ending November 30, 1995,
$1,497,452 of losses recognized during the period November 1, 1994 to
November 30, 1994.
At November 30, 1994, the fund was required to defer $1,491,924 of losses
on futures contracts.
SPARTAN CONNECTICUT MUNICIPAL HIGH YIELD PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)

3.ASSETS 4. 5.

6.Investment in securities, at value (cost $323,964,080) 7. $ 338,755,954
- -
See accompanying schedule

8.Cash 9. 276,082

10.Receivable for investments sold 11. 5,490,393

12.Interest receivable 13. 6,005,318

14. 15.TOTAL ASSETS 16. 350,527,747

17.LIABILITIES 18. 19.

20.Payable for fund shares redeemed $ 208,072 21.

22.Distributions payable 351,371 23.

24.Accrued management fee 160,809 25.

26.Payable for daily variation on futures contracts 4,219 27.

28. 29.TOTAL LIABILITIES 30. 724,471

31.32.NET ASSETS 33. $ 349,803,276

34.Net Assets consist of: 35. 36.

37.Paid in capital 38. $ 340,813,620

39.Accumulated undistributed net realized gain (loss) 40. (5,350,404)
on investments

41.Net unrealized appreciation (depreciation) 42. 14,340,060
on investments

43.44.NET ASSETS, for 31,821,432 shares outstanding 45. $ 349,803,276

46.47.NET ASSET VALUE, offering price and redemption 48. $10.99
price per share ($349,803,276 (divided by) 31,821,432 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)

49.50.INTEREST INCOME 51. $ 10,893,085

52.EXPENSES 53. 54.

55.Management fee $ 909,782 56.

57.Non-interested trustees' compensation 941 58.

59. 60.TOTAL EXPENSES 61. 910,723

62.63.NET INTEREST INCOME 64. 9,982,362

65.REALIZED AND UNREALIZED GAIN (LOSS) 67. 68.
66.Net realized gain (loss) on:

69. Investment securities (1,491,325) 70.

71. Futures contracts (655,469) (2,146,794)

72.Change in net unrealized appreciation (depreciation) 73. 74.
on:

75. Investment securities 36,018,725 76.

77. Futures contracts (416,087) 35,602,638

78.79.NET GAIN (LOSS) 80. 33,455,844

81.82.NET INCREASE (DECREASE) IN NET ASSETS 83. $ 43,438,206
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1995 NOVEMBER 30,
(UNAUDITED) 1994

84.INCREASE (DECREASE) IN NET ASSETS

85.Operations $ 9,982,362 $ 23,071,250
Net interest income

86. Net realized gain (loss) (2,146,794) 1,495,858

87. Change in net unrealized appreciation (depreciation) 35,602,638 (54,198,237)

88. 89.NET INCREASE (DECREASE) IN NET ASSETS 43,438,206 (29,631,129)
RESULTING FROM OPERATIONS

90.Distributions to shareholders (9,982,362) (23,071,250)
From net interest income

91. From net realized gain (943,418) (15,541,191)

92. 93.TOTAL DISTRIBUTIONS (10,925,780) (38,612,441)

94.Share transactions 29,480,630 72,572,004
Net proceeds from sales of shares

95. Reinvestment of distributions 8,612,684 31,414,952

96. Cost of shares redeemed (36,389,594) (170,335,951)

97. Redemption fees 4,819 62,252

98.99. 1,708,539 (66,286,743)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS

100. 34,220,965 (134,530,313)
101.TOTAL INCREASE (DECREASE) IN NET ASSETS

102.NET ASSETS 103. 104.

105. Beginning of period 315,582,311 450,112,624

106. End of period $ 349,803,276 $ 315,582,311

107.OTHER INFORMATION 109. 110.
108.Shares

111. Sold 2,815,798 6,627,548

112. Issued in reinvestment of distributions 815,469 2,812,853

113. Redeemed (3,505,006) (15,753,663)

114. Net increase (decrease) 126,261 (6,313,262)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
115. SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1995

116. (UNAUDITED) 1994C 1993 1992 1991 1990

117.SELECTED PER-SHARE DATA

118.Net asset value, beginning of period $ 9.960 $ 11.840 $ 11.220 $ 10.880 $ 10.730 $ 10.730

119.Income from Investment Operations .317 .640 .680 .689 .684 .687
Net interest income

120. Net realized and unrealized gain
(loss) 1.060 (1.472) .619 .338 .188 .020

121. Total from investment operations 1.377 (.832) 1.299 1.027 .872 .707

122.Less Distributions (.317) (.640) (.680) (.689) (.684) (.687)
From net interest income

123. From net realized gain on investments (.030) (.410) - - (.040) (.020)

124. Total distributions (.347) (1.050) (.680) (.689) (.724) (.707)

125.Redemption fees added to paid in capital - .002 .001 .002 .002 -

126.Net asset value, end of period $ 10.990 $ 9.960 $ 11.840 $ 11.220 $ 10.880 $ 10.730

127.TOTAL RETURN B 14.02% -7.61% 11.81 9.72 8.43 6.89
% % % %

128.RATIOS AND SUPPLEMENTAL DATA

129.Net assets, end of period (000
omitted) $ 349,803 $ 315,582 $ 450,113 $ 413,748 $ 346,781 $ 251,855

130.Ratio of expenses to average net
assets .55% .55% .55 .55 .55 .62
A % % % %

131.Ratio of expenses to average net
assets before .55% .55% .55 .55 .60 .62
expense reductions A % % % %

132.Ratio of net interest income to
average net assets 6.03% 5.83% 5.81 6.21 6.34 6.51
A % % % %

133.Portfolio turnover rate 23% 11% 45 11 6 18
A % % % %

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN.
C EFFECTIVE DECEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.

FINANCIAL HIGHLIGHTS
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance. If Fidelity had not
reimbursed certain fund expenses, the life of fund total returns would have
been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan Connecticut Municipal
Money Market Portfolio 1.73% 3.02% 12.88%

Average Connecticut Tax-Free
Money Market Fund 1.61% 2.83% 10.97%

Consumer Price Index 1.53% 3.19% 12.91%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on March 4, 1991. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. To measure how the fund's performance stacked up against its
peers, you can compare it to the average Connecticut tax-free money market
fund, which reflects the performance of 12 Connecticut tax-free money
market funds with similar objectives tracked by IBC/Donoghue over the past
six months. Comparing the fund's performance to the consumer price index
(CPI) helps show how your investment did compared to inflation. (The
periods covered by the CPI and IBC/Donoghue numbers are the closest
available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 1 LIFE OF
YEAR FUND

Spartan Connecticut Municipal
Money Market Portfolio 3.02% 2.89%

Average Connecticut Tax-Free
Money Market Fund 2.83% 2.53%

Consumer Price Index 3.19% 2.89%

Spartan Connecticut 2.33% 2.61% 3.24% 3.48% 3.64%
Municipal
Money Market Fund

Average Connecticut Tax-Fr 2.19% 2.45% 3.01% 3.27% 3.37%
ee
Money Market Fund

Spartan Connecticut 3.80% 4.24% 5.27% 5.68% 5.92%
Municipal
Money Market Fund -
Tax-equivalent

Portion of fund's income 6.77% 13.68% 12.75% 4.64% 11.16%
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 chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the average Connecticut tax-free money market fund.
Or you can look at the fund's tax-equivalent yield, which is based on a
combined effective 1995 federal and state income tax rate of 38.88% and
reflects 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 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 CONNECTICUT MUNICIPAL MONEY MARKET PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS:
On June 1, 1995, Jeff Parker
(left) became portfolio manager of
Spartan Connecticut Municipal Money Market Portfolio. The following is an
interview with Scott Orr (right) - who managed the fund during the period
covered by this report - with some comments from Jeff Parker
on his outlook and strategy:
Q. SCOTT, CAN YOU TELL US HOW THE INVESTMENT CLIMATE HAS CHANGED DURING THE
PAST SIX MONTHS?
S.O. Sure. Conditions on the whole were calmer and more predictable than
they were during most of 1994. The Federal Reserve raised the federal funds
rate - the rate banks charge each other for overnight loans - one-half
percentage point in February. However, unlike most of the six other rate
increases that had come before, the February rate increase was widely
anticipated, and the market absorbed it smoothly. In fact, following the
Fed announcement, short-term rates actually declined.
Q. HAVE RATES PEAKED, THEN?
S.O. That's quite possible. The goal of Fed policy ever since it began
raising short-term interest rates in February 1994 has been to dampen the
economic growth rate and prevent an outbreak of inflation. Apparently, the
policy has worked. In April the release of the first-quarter growth rate
came in at a surprisingly low 2.8%. That marked a dramatic slowdown from
the robust 5.1% growth rate during the fourth quarter of 1994. The pattern
of slower growth persisted throughout the spring. By the end of the period,
it seemed highly unlikely that the Fed would see the need to raise rates
again anytime soon.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
Hardcopy of
Photo of
JEFF PARKER
to come
from WTC
S.O. Whenever practical during the period, I avoided investing in small
municipal offerings of the kind typically issued by Connecticut counties
and municipalities. That's because smaller issues tend to be absorbed
quickly into the market at lower yields. Instead, I looked for
opportunities elsewhere: in tax-free commercial paper; in variable rate
demand notes, which offer yields that reset regularly in line with
prevailing rates; and in large, statewide municipal offerings, which are
too large for the Connecticut market to absorb and tend to come in at
higher yields. Meanwhile, I continued to let the fund's average maturity
roll down toward neutral territory throughout the period.
Q. HOW DID THE FUND PERFORM?
S.O. The fund's seven-day yield on May 31, 1995 was 3.60%, compared to
3.24% six months ago. On an after-tax basis, the fund's latest yield is
equivalent to a 5.86% taxable rate for Connecticut investors in the 38.88%
income tax bracket. Through May 31, 1995, the fund's six-month total return
was 1.73%, compared to 1.61% for the average Connecticut tax-exempt money
market fund, according to IBC/Donoghue.
Q. JEFF, WHAT'S YOUR OUTLOOK?
J.P. There's been a dramatic shift in market psychology in recent months.
Early this year, many economists were predicting that the Fed would go
right on raising interest rates through the summer. However, the economy
has slowed and now most economists believe it's only a matter of time
before the Fed begins lowering rates. With that in mind, I'll probably
maintain some flexibility while looking for opportunities to gradually
extend the fund's average maturity in the months ahead.

FUND FACTS
GOAL: tax-free income and
stability by investing in
high-quality, short-term,
Connecticut municipal money
market securities
START DATE: March 4, 1991
SIZE: as of May 31, 1995,
more than $162 million
MANAGER: Jeff Parker, since
June, 1995; manager, Fidelity
Connecticut Municipal Money
Market,
Fidelity Michigan Municipal
Money Market, Fidelity New
Jersey Municipal Money Market,
and Spartan New Jersey
Municipal Money Market
portfolios, since June 1995;
joined Fidelity in 1991
(checkmark)

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/95 11/30/94 5/31/94

0 - 30 61 62 61

31 - 90 26 8 26

91 - 180 12 12 12

181 - 397 1 18 1

WEIGHTED AVERAGE MATURITY
5/31/95 11/30/94 5/31/94

Spartan Connecticut
Municipal Money Market
Portfolio 30 days 68 days 41 days

Average Connecticut
Tax-Free Money Market Fun 38 days 61 days 60 days
d*

ASSET ALLOCATION
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994

Row: 1, Col: 1, Value: 55.0
Row: 1, Col: 2, Value: 21.0
Row: 1, Col: 3, Value: 18.0
Row: 1, Col: 4, Value: 4.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 53.0
Row: 1, Col: 2, Value: 20.0
Row: 1, Col: 3, Value: 18.0
Row: 1, Col: 4, Value: 3.0
Row: 1, Col: 5, Value: 6.0
Variable rate
demand notes
(VRDNs) 55%
Commercial
paper 21%
Tender bonds 18%
Municipal
notes 4%
Other 2%
Variable rate
demand notes
(VRDNs) 53%
Commercial
paper 20%
Tender bonds 18%
Municipal
notes 3%
Other 6%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET PORTFOLIO

INVESTMENTS MAY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CALIFORNIA - 4.1%
Orange County Apt. Dev. Rev. (WLCO Partners), VRDN:
Series 1985 C-1, 5.25%, LOC Tokai Bank Ltd. $ 1,000,000 $ 1,000,000
Series 1985 C-3, 5.25%, LOC Tokai Bank Ltd. 5,500,000 5,500,000
6,500,000
CONNECTICUT - 77.4%
Clipper Participating VRDN, Series 1994-1, 4.15%,
(Liquidity Facility State Street Bank & Trust Co.)(c) 4,968,215
4,968,215
Connecticut Dev. Auth. (Shelton Inn Proj.) Series 1986,
4.50%, LOC Bank of Tokyo, VRDN(b) 200,000 200,000
Connecticut Dev. Auth. Poll. Cont. Rev.
(Connecticut Light & Pwr. Co. Proj.) Series B, 4%,
LOC Union Bank of Switzerland, VRDN (b) 7,200,000 7,200,000
Connecticut Dev. Auth. Water Facs. Rev.
(Bridgeport Hydraulic Co.) Series 1995, 3.25%,
LOC Society Generale, VRDN 3,600,000 3,600,000
Connecticut Dev. Auth. Solid Waste Disp. Facs. Rev.,
VRDN (b):
(Exeter Energy Proj.):
Series 1989 A, 3.40%, LOC Sanwa Bank 1,500,000 1,500,000
Series 1989 B, 3.40%, LOC Sanwa Bank 4,900,000 4,900,000
(Rand-Whitney Containerboard) 3.30%,
LOC Chase Manhattan Bank, VRDN 3,300,000 3,300,000
Connecticut Dev. Auth. Health. Care Rev.
(Corp. for Independent Living Proj.) Series 1990, 3.45%,
LOC Cr. Commercial de France, VRDN 4,700,000 4,700,000
Connecticut Econ. Recovery Notes Series A:
5.40% 6/15/95 1,000,000 1,000,433
5.40% 12/15/95 400,000 402,607
Connecticut Gen. Oblig. Economic Recovery Notes,
Series 1991 B, 3.55% (BPA Canadian Imperial Bank,
Ind. Bank of Japan Ltd.,
Nat'l. Westminster Bank PLC) VRDN 500,000 500,000
Connecticut Gen. Oblig. Participating VRDN (c):
Series BT-103, 4.10%, (Liquidity Facility Bankers Trust) 1,600,000
1,600,000
Series MGT-27, 4.25%,
(Liquidity Facility Morgan Guaranty Trust Co.) 2,325,000 2,325,000
Series PA-50, 4.15%,
(Liquidity Facility Merrill Lynch & Co.) 960,000 960,000
Connecticut Health & Ed. Facs. Auth.:
(Bridgeport Hosp.) Issue B, 3.45%,
LOC Fuji Bank, VRDN 5,600,000 5,600,000
(Charlotte Hungerford Hosp.) Series B, 4.10%,
LOC Mitsubishi Bank Ltd., VRDN 1,800,000 1,800,000
(Kent School) Series A, 3.20%,
LOC Barclays Bank PLC, VRDN 5,800,000 5,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Health & Ed. Facs. Auth. - continued
(Yale University) Bonds:
Series L, 4% tender 7/21/95 $ 1,800,000 $ 1,800,000
Series M, 4.10% tender 7/20/95 5,900,000 5,900,000
Series N:
4.15% tender 6/1/95 3,100,000 3,100,000
4.10% tender 7/20/95 1,000,000 1,000,000
Series O, 3.95% tender 7/14/95 3,200,000 3,200,000
(Windham Community Memorial Hosp.) Series B, 3.85%
tender 6/14/95, LOC Banque Paribas 4,000,000 4,000,000
Connecticut Hsg. Fin. Auth. Rev. Bonds (Hsg. Mtg. Fin. Prog.):
Series 1993 H-1, 4.30% tender 9/1/95 8,000,000 8,000,000
Series 1993 H-2, 4.40% tender 9/1/95 (b) 7,000,000 7,000,000
Series 1990 C, 4.10% tender 6/8/95 (b) 1,000,000 1,000,000
Connecticut Muni. Elec. Energy Coop. Pwr. Supply
Sys. Rev. Bonds Series 1995 A, 4% tender 7/25/95
LOC Fleet Bank 1,400,000 1,400,000
Connecticut Special Assessment Unemployment Rev. Bonds
Series 1993 C, 3.85%, tender 7/1/95 (FGIC Insured) 13,600,000 13,599,799
Connecticut Second Lien Spl. Tax Oblig. Bonds
(Transport Infrastructure Purp.) Series 1, 3.40%,
LOC Industrial Bank of Japan, VRDN 13,580,000 13,580,000
Connecticut Reg. School Dist. #13 BAN 4.50% 8/1/95 850,000 850,344
East Haven BAN 4.75% 11/1/95 4,350,000 4,358,615
Fairfield BAN 5.25% 1/16/96 500,000 501,197
South Central Reg'l. Water Auth. Participating VRDN,
Series MGT-30A, 4%
(FGIC Insured) (Liquidity Facility Morgan Guaranty)(c) 2,350,000
2,350,000
Stamford Hsg. Auth. Mutimodal Rev. (Morgan Street Proj.)
Series 1994, 3.65%, LOC Deutsche Bank, (b) 2,500,000 2,500,000
Stratford BAN 4.50% 10/18/95 1,000,000 1,000,158
125,496,368
LOUISIANA - 1.2%
Plaquemines Parish Envir. Rev. Rfdg. (BP Exploration & Oil,
Inc.) Series 1995 4.25%, VRDN (b) 1,900,000 1,900,000
NORTH CAROLINA - 0.6%
Person County Ind. Facs. Poll. Cont. Rev.
(Carolina Power & Light Co. Proj.) Series 1986, 4.90%,
LOC Fuji Bank Ltd., VRDN (b) 1,000,000 1,000,000
PUERTO RICO - 13.6%
Puerto Rico Commonwealth Participating VRDN:
Series PW-6, 3.75%
(Liquidity Facility Bank of Nova Scotia)(c) 2,000,000 2,000,000
Series PT-63, 4.05% (Liquidity Facility
Bayerische Hypotheken/Wech Bank)(c) 1,155,000 1,155,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - CONTINUED
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Bonds
Series J, 9.125% 7/1/95 $ 1,200,000 $ 1,240,770
Puerto Rico Elec. Pwr. Auth. Rev. Participating VRDN,
Series BT-105, 3.775%
(Liquidity Facility Bankers Trust Co.)(c) 3,978,000 3,978,000
Puerto Rico Ind., Med., Higher Ed. & Envir. Cont. Facs.
Fin. Auth. Bonds (Inter American University)
4.10% tender 7/21/95 LOC Bank of Tokyo 1,600,000 1,600,000
Puerto Rico Gov't. Dev. Bank CP:
4% 7/11/95 4,000,000 4,000,000
4.10% 7/14/95 3,000,000 3,000,000
4.10% 7/17/95 3,000,000 3,000,000
4.15% 8/11/95 1,500,000 1,500,000
21,473,770
TEXAS - 1.6%
Brazos River Harbor Navigation Dist. of Brazoria County Rev.
(Dow Chemical) Series1993, 4.25%, VRDN (b) 1,200,000 1,200,000
Gulf Coast Waste Disp. Auth. Poll. Cont. Rev.
(Amoco Oil Co.) 4.20%, VRDN (b) 1,400,000 1,400,000
2,600,000
VIRGINIA - 0.6%
Richmond Ind. Dev. Auth. (I) Rev. (Cogentrix Inc. Proj.)
Series 1990 A, 4.60%, LOC Banque Paribas, VRDN (b) 1,000,000 1,000,000
WASHINGTON - 0.9%
Washington Hsg. Fin. Commission Multi-Family Mtg. Rev.
(Canyon Lake II) 4.75%, LOC U.S. Bank, VRDN (b) 1,370,000 1,370,000
TOTAL INVESTMENTS - 100% $ 161,340,138
Total Cost for Income Tax Purposes $ 161,338,499

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At November 30, 1994, the fund had a capital loss carryforward of
approximately $17,500 of which $40, $2,090, $5,330 and $10,040 will expire
on November 30, 1999, 2000, 2001 and 2002, respectively.
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)

134.ASSETS 135. 136.

137.Investment in securities, at value - See 138. $ 161,340,138
accompanying schedule

139.Cash 140. 183,816

141.Interest receivable 142. 1,403,632

143. 144.TOTAL ASSETS 145. 162,927,586

146.LIABILITIES 147. 148.

149.Share transactions in process $ 344,115 150.

151.Distributions payable 14,466 152.

153.Accrued management fee 68,676 154.

155. 156.TOTAL LIABILITIES 157. 427,257

158.159.NET ASSETS 160. $ 162,500,329

161.Net Assets consist of: 162. 163.

164.Paid in capital 165. $ 162,516,189

166.Accumulated net realized gain (loss) on 167. (17,499)
investments

168.Unrealized gain from accretion of market discount 169. 1,639

170.171.NET ASSETS, for 162,516,189 shares 172. $ 162,500,329
outstanding

173.174.NET ASSET VALUE, offering price and 175. $1.00
redemption price per share ($162,500,329 (divided by)
162,516,189 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)

176.177.INTEREST INCOME 178. $ 3,133,030

179.EXPENSES 180. 181.

182.Management fee $ 395,135 183.

184.Non-interested trustees' compensation 415 185.

186. 187.TOTAL EXPENSES 188. 395,550

189.190.NET INTEREST INCOME 191. 2,737,480

192.REALIZED AND UNREALIZED GAIN (LOSS) 194. (3)
193.Net realized gain (loss) on investment securities

195.Increase (decrease) in net unrealized gain from 196. 1,223
accretion of market discount

197.198.NET GAIN (LOSS) 199. 1,220

200.201.NET INCREASE IN NET ASSETS RESULTING FROM 202. $ 2,738,700
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1995 NOVEMBER 30,
(UNAUDITED) 1994

203.INCREASE (DECREASE) IN NET ASSETS

204.Operations $ 2,737,480 $ 3,624,901
Net interest income

205. Net realized gain (loss) (3) (10,039)

206. Increase (decrease) in net unrealized gain from 1,223 416
accretion of market discount

207. 2,738,700 3,615,278
208.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS

209.Distributions to shareholders from net interest (2,737,480) (3,624,901)
income

210.Share transactions at net asset value of $1.00 per 100,989,002 225,193,655
share
Proceeds from sales of shares

211. Reinvestment of distributions from net interest 2,627,055 3,499,344
income

212. Cost of shares redeemed (108,172,494) (224,729,453)

213.214. (4,556,437) 3,963,546
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS

215. (4,555,217) 3,953,923
216.TOTAL INCREASE (DECREASE) IN NET ASSETS

217.NET ASSETS 218. 219.

220. Beginning of period 167,055,546 163,101,623

221. End of period $ 162,500,329 $ 167,055,546

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
222. SIX MONTHS YEARS ENDED NOVEMBER 30, MARCH 4, 1991
ENDED (COMMENCEMEN
MAY 31, 1995 T
OF OPERATIONS) TO
NOVEMBER 30,

223. (UNAUDITED) 1994 1993 1992 1991

224.SELECTED PER-SHARE DATA

225.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of period

226.Income from .017 .023 .022 .030 .029
Investment Operations
Net interest income

227.Less Distributions (.017) (.023) (.022) (.030) (.029)
From net interest
income

228.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period

229.TOTAL RETURN B 1.74% 2.28 2.21 3.08 2.97%
% % %

230.RATIOS AND SUPPLEMENTAL DATA

231.Net assets, $ 162,500 $ 167,056 $ 163,102 $ 86,672 $ 22,247
end of period
(000 omitted)

232.Ratio of expenses to .50% .50 .24 .02 -
average net assets A % % %

233.Ratio of expenses to .50% .50 .50 .50 .50%
average net assets A % % % A
before
expense reductions

234.Ratio of net interest 3.46% 2.25 2.17 2.90 4.05%
income to average net A % % % A
assets

</TABLE>

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Connecticut Municipal High Yield Portfolio (the high yield fund) is
a fund of Fidelity Court Street Trust. Spartan Connecticut Municipal Money
Market Portfolio (the money market fund) is a fund of Fidelity Court Street
Trust II. Each trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company. Fidelity Court Street Trust and Fidelity Court Street Trust II
(the trusts) are organized as a Massachusetts business trust and a Delaware
business trust, respectively. Each fund is authorized to issue an unlimited
number of shares. The following summarizes the significant accounting
policies of the money market fund and the high yield fund:
SECURITY VALUATION.
HIGH YIELD FUND. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which quotations are not readily
available through the pricing service are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
the fiscal year. The schedules of investments include information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures and options transactions.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
REDEMPTION FEES. Shares held in the high yield fund less than 180 days are
subject to a redemption fee equal to .50% of the proceeds of the redeemed
shares. The fee, which is retained by the fund, is accounted for as an
addition to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as
of trade date. Gains and losses on securities sold are determined on
the basis of identified cost.
2. OPERATING POLICIES.
FUTURES CONTRACTS AND OPTIONS. The high yield fund may invest in futures
and options contracts, and may also write options. These investments
involve, to varying degrees, elements of market risk and risks in excess of
the amount recognized in the Statement of Assets and Liabilities. The face
or contract amounts, as reflected in the schedule of investments under the
caption "Futures Contracts," reflect the extent of the involvement the high
yield fund has in the particular classes of instruments. Risks may be
caused by an imperfect correlation between movements in the price of the
instruments and the price of the underlying securities and interest rates.
Risks also may arise if there is an illiquid secondary market for the
instruments, or due to the inability of counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $36,087,995 and $44,546,265, respectively.
The market value of futures contracts opened and closed during the period
amounted to $21,123,037 and $24,590,198, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .55% and .50% of average net assets
for the high yield and money market funds, respectively.
FMR also bears the cost of providing shareholder services to each fund. To
offset the cost of providing these services, FMR or its affiliates
collected certain transaction fees from shareholders which amounted to
$2,210 and $1,773 for the high yield and money market funds, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect, and after reducing
the fee for any payments by FMR pursuant to the fund's Distribution and
Service Plan.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans), and in accordance with Rule 12b-1 of the 1940 Act, FMR
or the funds' distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of each fund's shares. Subject to
the approval of each Board of Trustees, the Plans also authorize payments
to third parties that assist in the sale of each fund's shares or render
shareholder support services. FMR or FDC has informed the funds that
payments made to third parties under the Plans amounted to $1,250 for the
high yield fund and no payments were made for the money market fund for the
period.
TO WRITE FIDELITY

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER (MONEY MARKET)
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President,
MONEY MARKET FUND
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Thomas D. Maher, Assistant
Vice President, MONEY MARKET FUND
Michael D. Conway, Assistant Treasurer,
MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

SPARTAN(registered trademark)

(registered trademark)
FLORIDA
MUNICIPAL
FUNDS

SEMIANNUAL REPORT
MAY 31, 1995
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 19 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO

PERFORMANCE 23 How the fund has done over time.

FUND TALK 25 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 27 A summary of major shifts in the
fund's investments over the past six
months
and one year.

INVESTMENTS 28 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 33 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 37 Notes to the financial statements.

</TABLE>

FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells
securities that have grown in value), and the effect of the $5 account
closeout fee. You can also look at the fund's income. If Fidelity had not
reimbursed certain fund expenses, the past 1 year and the life of fund
total returns, dividends and yields would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan Florida Municipal Income Portfolio 15.28% 9.50% 33.52%

Lehman Brothers Municipal Bond Index 13.05% 9.11% n/a

Average Florida Tax-exempt
Municipal Bond Fund 14.72% 9.17% n/a

Consumer Price Index 1.53% 3.19% 9.26%

CUMULATIVE TOTAL RETURNS show the fund's performance over a set period - in
this case, six months, one year or since the fund started on March 16,
1992. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. You can
compare the fund's returns to the performance of the Lehman Brothers
Municipal Bond index - a broad gauge of the municipal bond market. To
measure how the fund's performance stacked up against its peers, you can
compare it to the average Florida municipal bond fund, which reflects the
performance of 74 Florida tax-exempt municipal bond funds with similar
objectives tracked by Lipper Analytical Services over the past six months.
Both benchmarks include reinvested dividends and capital gains, if any.
Comparing the fund's performance to the consumer price index (CPI) helps
show how your fund did compared to inflation.(The CPI returns begin on the
month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 1 LIFE OF
YEAR FUND

Spartan Florida Municipal Income Portfolio 9.50% 9.42%

Lehman Brothers Municipal Bond Index 9.11% n/a

Average Florida Tax-exempt
Municipal Bond Fund 9.17% n/a

Consumer Price Index 3.19% 2.84%

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Spartan
Florida Municipal Income Portfolio on March 31, 1992, shortly after the
fund started. As the chart shows, by May 31, 1995, the value of your
investment would have grown to $13,293 - a 32.93% increase on your initial
investment. This assumes you still own the fund on May 31, 1995, and
therefore does not include the effect of the $5 account closeout fee. For
comparison, look at how the Lehman Brothers Municipal Bond index did over
the same period. With dividends reinvested, the same $10,000 would have
grown to $12,781 - a 27.81% increase.

1995 1994 1993 1992

Dividend return 3.17% 5.01% 6.10% 4.74%

Capital appreciation return 12.11% -12.21% 7.41% 5.19%

Total return 15.28% -7.20% 13.51% 9.93%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.89(cents) 29.34(cents) 58.63(cents)

Annualized dividend rate 5.34% 5.64% 5.65%

30-day annualized yield 5.29% - -

30-day annualized tax-equivalent yield 8.27% - -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.78 over
the past month, $10.43 over the past six months and $10.38 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The tax-equivalent yield shows what you would have to
earn on a taxable investment to equal the fund's tax-free yield, if you're
in the 36% 1995 combined federal tax bracket.
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Anne Punzak,
Portfolio Manager of Spartan Florida Municipal Income Portfolio
Q. ANNE, HOW HAS THE FUND PERFORMED?
A. It has done well. For the six and 12 months ended May 31, 1995, the fund
had total returns of 15.28% and 9.50%, respectively. That beat the average
Florida municipal fund, which returned 14.72% and 9.17%, respectively, over
the same periods, according to Lipper Analytical Services.
Q. WHAT HAS THE MUNICIPAL BOND INVESTING ENVIRONMENT BEEN LIKE DURING THE
PAST SIX MONTHS?
A. The municipal market has been rallying significantly since November
1994. There has been a perception in the marketplace that the economy's
growth rate is slowing, meaning there is less of a possibility that the
Federal Reserve Board will raise interest rates, something it did seven
times from February 1994 through February 1995. The Fed did so because it
was trying to curb the inflation that usually accompanies the strong
economic growth the U.S. saw through much of 1994. However, based upon
recent economic statistics that reflect slower growth and moderate
inflation, there actually has been discussion that the Fed might even lower
interest rates.
Q. YET THE MUNICIPAL MARKET HAS LAGGED THE TREASURY MARKET RECENTLY...
A. Right. At the beginning of March, munis were relatively rich - or priced
high in light of historical levels - relative to Treasuries, but have since
decreased in relative value. The recent drop mainly has been because of
political discussions concerning the possible imposition of a flat income
tax. The flat tax proposals being considered would lead to a lower tax-rate
environment, one in which municipal bonds would drop in value. One of the
factors affecting the value of municipal bonds is the level of tax rates.
Higher tax rates tend to increase demand - and thus the value - of
municipal bonds, while lower tax rates decrease demand and value. So the
market has taken the effects of the flat tax into account, leading to the
underperformance.
Q. DO YOU FIND THE POSSIBILITY OF A FLAT TAX TO BE A CAUSE FOR CONCERN?
A. For the moment, no, because, as I've said, the market has already
factored in this possibility. Even though hearings on tax alternatives were
scheduled to take place right after the end of the period, I don't expect
there to be significant changes in personal income tax rates until 1997. I
believe the end result largely will depend on whether the Republicans are
able to win the White House in 1996.
Q. WHAT LED THE FUND TO PERFORM BETTER THAN ITS PEERS?
A. Two things. First, the fund had a larger concentration of investments in
higher-quality, insured bonds than many other funds. Second, I focused the
fund's investments in the 10- to 20-year maturity range. The high-quality,
insured bonds, especially those in this range, were among the best
performing securities during the period, so the fund benefited from
exposure in those areas.
Q. WHAT WAS BEHIND THESE STRATEGIES?
A. The fund has been increasing its investments in insured bonds for two
main reasons, but before I elaborate, let me remind you what is meant by an
insured bond. An insured bond is one whose interest and principal payments
are guaranteed by one of four municipal bond insurance companies. All
municipal insured bonds carry a credit rating of Aaa from the rating
agencies. I should add that although the interest and principal payments
are guaranteed, the insurance does not guarantee against price changes due
to interest rate movements. That being said, one of the reasons I've
focused on this area is that high-quality insured bonds typically
outperform in a market rally because they are more liquid, or easily
traded. The second reason is that the majority of new issuance in Florida
has been in the insured bond area. As a result, the yield spread - or the
difference between the yield of bonds with similar maturities but different
credit quality, often called a yield advantage - has been narrow. This has
made higher-quality issues more attractive to me.
Q. AND WHY HAVE YOU TARGETED THE 10- TO 20-YEAR MATURITY RANGE?
A. For two reasons. First, the yield curve - a representation of the
difference between short-term rates and long-term rates - was quite flat
beyond the 20-year mark, meaning there wasn't much added benefit to buying
a longer bond. Second, retail buyers - especially older investors - in
Florida seem to prefer to invest in bonds in this range, not beyond. Their
added demand has helped liquidity and prices in that maturity range.
Q. YOU'VE REDUCED THE FUND'S INVESTMENTS IN PUERTO RICO BONDS. WHY IS THAT?
A. First of all, with spreads being narrow, there was less of an advantage
to holding the Puerto Rico bonds, which, for the most part, had an A
rating. When spreads narrow like that, I feel that it's a good time to sell
the lower-rated bonds. In addition, I do have some long-range concerns
about Puerto Rico's credit outlook. These concerns center on two things.
First, the Puerto Rican governor's tax-reform package will reduce tax
revenues. Second, I find the governor's economic projections to be overly
optimistic. In addition, the tax credits that corporations historically
have received for locating in Puerto Rico are being threatened by current
attempts to cut the federal budget. These credits already were reduced in
1993 as part of a federal deficit-cutting package. Going forward, I would
not be surprised to see these tax credits reduced further. Although it is
unlikely that the companies already located in Puerto Rico will leave even
if they don't continue to receive these tax credits - because they're
entrenched there - cuts in subsidies might discourage additional
corporations from relocating to Puerto Rico. That ultimately could impact
the Puerto Rican economy.
Q. WHAT'S YOUR OUTLOOK GOING FORWARD?
A. I don't expect the flat tax will pass, so I don't expect munis to
cheapen further relative to Treasuries. In terms of the economy, I don't
believe we're headed for a recession. It looks like we'll have a period of
sub-par growth, but I think that will be the "pause that refreshes." I'd
expect to see economic growth pick up in 1996. Over the next few months, I
wouldn't be surprised to see municipal bond prices remain fairly stable, as
participants try to determine whether we're going into a recession or not,
or whether the economy is going to be invigorated due to recent declines in
interest rates.

FUND FACTS
GOAL: high current income
exempt from federal income
taxes and the Florida
intangible personal property
tax by investing mainly in
longer-term,
investment-grade Florida
municipal bonds
START DATE: March 16, 1992
SIZE: as of May 31, 1995,
more than $376 million
MANAGER: Anne Punzak,
since 1992; manager Fidelity
Aggressive Tax Free Portfolio
since 1986; Fidelity High Yield
Tax-Free Portfolio since 1993;
Spartan Aggressive Municipal
Fund, 1993 - 1994; Fidelity
Insured Tax-Free Portfolio
1989 to 1993; joined Fidelity in
1984
(checkmark)

ANNE PUNZAK ON THE FLORIDA
ECONOMY:
"The Florida economy has
been quite strong.
Employment and economic
growth remain above the
national averages. The
economy used to be highly
dependent on tourism, much
more susceptible to the
upturns and downturns in the
national economy. That is no
longer the case; the economy
is much more diversified. New
jobs have been created in
areas such as insurance and
banking. Some multinational
corporations have established
offices in Miami, in order to
increase their Latin American
business. The health of the
economy helps dictate
demand; with more people
making more money, there's
more demand for tax-exempt
bonds."
- -------
(solid bullet) The insured bonds the
manager has been targeting
are mainly those that are not
callable - not redeemable by
the issuer before the
scheduled maturity. These
have performed well during
the period.
(solid bullet) The fund's weighting in
electrical utility issues has
increased from 12.5% six
months ago to15.6% at the
end of the period, including
investments in Jacksonville
Electric and Orlando Electric.
The specific appeal of these
bonds was their high credit
ratings; new investments
there are not indicative of a
sector-specific strategy.
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF MAY 31, 1995
% OF FUND'S % OF FUND'S INVESTMENT
INVESTMENTS S
IN THESE SECTORS
6 MONTHS AGO

Health Care 18.3 15.7

Electric Revenue 15.6 12.5

Transportation 13.1 17.6

Water & Sewer 9.5 9.7

General Obligation 9.0 13.2

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1995
6 MONTHS AGO

Years 17.0 19.0

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF MAY 31, 1995
6 MONTHS AGO

Years 8.2 9.0

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 THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994
Aaa 43.3%
Aa, A 21.1%
Baa 23.4%
Ba, B 0.0%
Non-rated 6.9%
Short-term
investments 5.3%
Aaa 35.0%
Aa, A 18.3%
Baa 33.9%
Ba, B 0.0%
Non-rated 10.2%
Short-term
investments 2.6%
Row: 1, Col: 1, Value: 43.3
Row: 1, Col: 2, Value: 21.1
Row: 1, Col: 3, Value: 23.4
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 6.9
Row: 1, Col: 6, Value: 5.3
Row: 1, Col: 1, Value: 35.0
Row: 1, Col: 2, Value: 18.3
Row: 1, Col: 3, Value: 33.9
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 10.2
Row: 1, Col: 6, Value: 2.6
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED DEBT SECURITIES THAT ARE
EQUIVALENT TO BA AND BELOW ACCOUNT FOR 3.1% AND 6.3% OF THE FUND'S
INVESTMENTS AT MAY 31, 1995 AND NOVEMBER 30, 1994, RESPECTIVELY.
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO

INVESTMENTS MAY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 94.7%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - 86.3%
Alachua County Health Facs. Auth. Health Facs.
Rev. (Santa Fe Health Care Facs. Proj.):
7.60% 11/15/13 Baa1 $ 1,000,000 $ 1,067,500
Rfdg. 6% 11/15/09 Baa1 2,950,000 2,843,063
Rfdg. 6.05% 11/15/09 Baa1 5,590,000 5,289,538
(Beverly Enterprises Proj.)
10.125% 4/1/10 - 825,000 917,813
Bay County Ind. Dev. Correctional Facs. Rev.
(Corrections Corp. America Proj.) Series A,
8.875% 11/1/05 (b) - 2,620,000 2,751,000
Brevard County Util. Rev. Rfdg. 5.25% 3/1/14
(AMBAC Insured) Aaa 2,500,000 2,381,250
Broward County Hsg. & Fin. Auth.
Single-Family Mtg. Rev. 6.65% 8/1/21 Aaa 2,000,000 2,035,000
Broward County Resource Recovery Rev.
(SES Broward Co. LP South Proj.)
7.95% 12/1/08 A 11,080,000 12,146,450
Broward County Wtr. & Swr. Util. Rev. Rfdg.
5.125% 10/1/15 (AMBAC Insured) Aaa 2,500,000 2,340,625
Collier County Ind. Dev. Auth. Retirement Rent
Hsg. Rev. Rfdg. (Beverly Enterprises Proj.)
10.75% 3/1/03 - 1,285,000 1,509,875
Dade County Pub. Facs. Rev. Rfdg.
(Jackson Mem. Hosp.) Series A, 4.75%
6/1/10 (MBIA Insured) Aaa 3,540,000 3,234,675
Dade County Rev. 5.125% 4/1/09
(MBIA Insured) Aaa 1,475,000 1,423,375
Dade County School Dist. 7.375% 7/1/08 Aaa 1,850,000 2,081,250
Dade County Wtr. & Swr. Sys. Rev. Rfdg.
5% 10/1/07 (FGIC Insured) Aaa 1,480,000 1,461,500
Dunedin Hosp. Rev. (Mease Health Care)
5.25% 11/15/06 (MBIA Insured) Aaa 1,400,000 1,415,750
Dunedin Util. Sys. Rev Rfdg. 6.25% 10/1/11
(FGIC Insured) Aaa 1,360,000 1,450,100
Duval County Hsg. Fin. Auth. Single Family
Mtg. Rev.:
Series C, 7.70% 9/1/24 (FGIC Insured)
(GNMA Coll.) Aaa 725,000 777,563
5.80% 12/1/19 (b) Aaa 1,000,000 1,001,250
Escambia County Health Facs. Auth. Rev.:
Rfdg. (Baptist Hosp. Inc.) Series B, 6%
10/1/14 BBB+ 2,825,000 2,687,281
(Baptist Hosp. & Baptist Manor) 6.75%
10/1/14 BBB+ 3,250,000 3,323,125
Escambia County Poll. Cont. Rev.:
Rfdg. (Gulf Pwr. Co. Proj.) 6.75% 3/1/22 A1 2,000,000 2,055,000
(Champion Int'l. Corp. Proj.)
6.90% 8/1/22 (b) Baa1 5,000,000 5,225,000
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Escambia County Utils. Sys. Auth. Rev. Series B,
6.25% 1/1/15 (FGIC Insured) Aaa $ 1,500,000 $ 1,586,250
Florida Board of Ed. Administration Cap.
Outlay Rfdg. (Pub. Ed.):
Series A:
5% 6/1/09 Aa 1,000,000 963,750
5% 6/1/24 Aa 5,000,000 4,437,500
Florida Board of Ed. Administration Cap.
Outlay Rfdg. Unltd. Tax (Pub. Ed.):
Series D:
5% 6/1/15 Aa 5,000,000 4,581,250
5.125% 6/1/22 Aa 5,500,000 4,991,250
Florida Div. Board Fin. Dept. Gen. Svcs. Rev.
(Dept. of Natural Resources Preservation)
Series 2000 A:
5.75% 7/1/00 (MBIA Insured) Aaa 1,815,000 1,917,094
6.75% 7/1/08 (AMBAC Insured) Aaa 1,350,000 1,481,625
4.75% 7/1/09 (MBIA Insured) Aaa 2,000,000 1,862,500
5.70% 7/1/09 (AMBAC Insured) Aaa 3,000,000 3,056,250
4.90% 7/1/13 (MBIA Insured) Aaa 2,000,000 1,832,500
Florida Hsg. Fin. Agcy. Single Family Mtg. Rev.:
Rfdg:
Series A:
6.35% 7/1/14 Aa1 1,460,000 1,501,975
6.55% 7/1/14 Aa1 2,000,000 2,052,500
Series B, 6.55% 7/1/17 (b) Aa1 1,465,000 1,497,963
Series A, 7.90% 1/1/16 AA 20,000 20,500
Florida Mid-Bay Bridge Auth. Rev. Series A:
7.50% 10/1/17 - 1,700,000 1,865,750
6.875% 10/1/22 - 3,000,000 3,480,000
Florida Muni. Pwr. Agcy. Rev. Rfdg.:
(All Requirement Pwr. Supply) 6.25%
10/1/19 (AMBAC Insured) Aaa 2,340,000 2,585,700
(Stanton II Proj.) 4.50% 10/1/16
(AMBAC Insured) Aaa 3,000,000 2,557,500
Florida Tpk. Auth. Tpk. Rev.:
7.75% 7/1/09,
(Pre-Refunded to 7/1/99 @102) (d) Aaa 750,000 854,063
Rfdg. Series A:
5.25% 7/1/06 (FGIC Insured) Aaa 1,500,000 1,515,000
5.25% 7/1/11 (FGIC Insured) Aaa 4,750,000 4,595,625
5% 7/1/14 (MBIA Insured) Aaa 4,000,000 3,695,000
5% 7/1/16 (FGIC Insured) Aaa 4,000,000 3,670,000
5% 7/1/19 (FGIC Insured) Aaa 4,000,000 3,605,000
Series A:
6.25% 7/1/09 (FGIC Insured) Aaa 2,325,000 2,438,344
7.20% 7/1/11 (AMBAC Insured)
(Pre-Refunded to 7/1/01@102) (d) Aaa 1,500,000 1,726,875
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Gainesville Util. Sys. Rev. Series A, 7.875%
10/1/10 Aaa $ 3,525,000 $ 3,873,094
Greater Orlando Aviation Auth. Arpt. Facs.
Rev. Series A, 6.50% 10/1/05
(FGIC Insured) (b) Aaa 3,550,000 3,856,188
Hernando County Ind. Dev. Rev. Rfdg.
(Beverly Enterprises, Inc.) 10% 9/1/11 - 955,000 1,092,281
Hillsborough County Aviation Auth. Rev. Rfdg.
(Tampa Int'l. Arpt.) Series A, 6.90%
10/1/11 (FGIC Insured) Aaa 4,250,000 4,574,063
Hillsborough County Port. Auth. Dist. Rev.:
6.50% 6/1/03 (FSA Insured) Aaa 2,000,000 2,180,000
6.50% 6/1/05 (FSA Insured) Aaa 2,000,000 2,182,500
Hillsborough County Util. Rev. Rfdg.
(Cap. Appreciation) Series A:
0% 8/1/05 (MBIA Insured) Aaa 8,000,000 4,710,000
0% 8/1/06 Aaa 10,000,000 5,525,000
0% 8/1/07 Aaa 7,000,000 3,622,500
Indian River County Wtr. & Swr. Rev. Rfdg.
Series A, 5.50% 9/1/11 (FGIC Insured) Aaa 2,000,000 2,000,000
Jacksonville Cap. Impt. Rev. Ctfs.
(Gator Bowl Proj.):
5.50% 10/1/14 (AMBAC Insured) Aaa 2,000,000 1,967,500
5.50% 10/1/19 (AMBAC Insured) Aaa 2,000,000 1,950,000
Jacksonville Elec. Auth. Rev.:
(Bulk Pwr. - Scherer 4 Proj. A)
5.20% 10/1/11 Aa1 4,000,000 3,835,000
Series 3-B, 5.25% 10/1/19
(MBIA Insured) Aaa 1,500,000 1,408,125
(St. Johns River Issue #2):
7% 10/1/09 Aa1 2,490,000 2,692,313
Series 8, 5.50% 10/1/13 Aa1 2,000,000 1,960,000
9.50% 10/1/20
(Pre-Refunded 10/1/95 @102) (d) Aaa 1,000,000 1,037,500
Jacksonville Excise Tax Rev.:
Rfdg. 6.25% 10/1/05 (AMBAC Insured) Aaa 2,000,000 2,170,000
Series A, 6.50% 10/1/11 (AMBAC Insured) Aaa 1,200,000 1,272,000
Jacksonville Health Facs. Auth. Hosp. Rev.
(Baptist Med. Ctr.) Series A, 7.30% 6/1/19
(MBIA Insured) Aaa 500,000 544,375
Jacksonville Health Facs. Auth. Ind. Dev. Rev.:
(Cypress Village Proj.) (Nat'l. Benevolent
Assoc.):
Rfdg. 7% 12/1/22 Baa1 2,000,000 2,027,500
7% 12/1/14 Baa1 1,000,000 1,022,500
6.25% 12/1/23 Baa1 2,710,000 2,476,263
8% 12/1/24 Baa1 2,740,000 3,000,300
Jacksonville Hosp. Rev. (Univ. Med. Ctr.)
6.50% 2/1/07 (Connie Lee Insured) AAA 750,000 795,000
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Jacksonville Ind. Dev. Rev. Rfdg.
(Cargill, Inc. Proj.) 6.40% 3/1/11 AA- $ 1,250,000 $ 1,300,000
Jacksonville Wtr. & Swr. Gen. Waterwks. Dev.
Rev. (Jacksonville Suburban Utils.)
6.75% 6/1/22 (b) A2 1,915,000 2,027,506
Key West Util. Board Elec. Rev. Rfdg. 0%
10/1/14 (AMBAC Insured) Aaa 6,755,000 2,220,706
Kissimmee Util. Auth. Elec. Sys. Rev. Rfdg. & Impt.
5.25% 10/1/18 (FGIC Insured) Aaa 1,000,000 943,750
Lakeland Elec. & Wtr. Rev. Rfdg. (Jr. Sub. Lien):
6.25% 10/1/02 (FGIC Insured) (e) Aaa 5,180,000 5,523,175
6.50% 10/1/06 (FGIC Insured) (e) Aaa 1,000,000 1,083,750
6.50% 10/1/07 (FGIC Insured) (e) Aaa 4,095,000 4,422,600
Lee County Arpt. Rev. Series A, 5.50%
10/1/10 (AMBAC Insured) Aaa 2,000,000 1,992,500
Lee County Ind. Dev. Auth. Econ. Dev. Rev.
Rfdg. (Encore Nursing Ctr.) (Beverly
Enterprises, Inc.) 8.125% 12/1/07 - 900,000 940,500
Leesburg Hosp. Rev. Rfdg.
(Leesburg Regl. Med. Ctr. Proj.):
Series B:
5.625% 7/1/13 Baa1 2,795,000 2,581,881
5.70% 7/1/18 Baa1 2,140,000 1,963,450
Leon County 5.50% 10/1/07
(MBIA Insured) Aaa 1,000,000 1,017,500
Martin County Ind. Dev. Auth. Rev. Rfdg.
(Indiantown Cogeneration Proj.):
Series A, 7.875% 12/15/25 Baa3 8,000,000 8,780,000
Series B, 8.05% 12/15/25 (b) Baa3 2,500,000 2,775,000
Naples Hosp. Rev. Rfdg. (Commty. Hosp. Proj.):
5.10% 10/1/07 Aaa 3,205,000 3,168,944
5% 10/1/19 (MBIA Insured) Aaa 1,000,000 898,750
Nassau County Poll. Cont. Rev. Rfdg.
(ITT Rayonier Proj.):
7.65% 6/1/06 Baa2 1,415,000 1,528,200
6.25% 6/1/10 Baa2 2,500,000 2,512,500
6.20% 7/1/15 Baa 1,000,000 997,500
North Broward Hosp. Dist. Rev. Rfdg. 6.40%
1/1/06 (MBIA Insured) Aaa 950,000 1,024,813
North Miami Edl. Facs. Rev. (Johnson & Wales
Univ. Proj.) Series A, 6.125% 4/1/20 - 6,605,000 6,307,775
Orange County Health Facs. Auth. Hosp. Rev.
(Adventist Health Sys.):
5.75% 11/15/05 (AMBAC Insured) Aaa 2,000,000 2,090,000
5.50% 11/15/15 (AMBAC Insured) Aaa 2,250,000 2,188,125
Orange County Hsg. Fin. Auth. Mtg. Rev.
Series A, 7.875% 9/1/10
(GNMA Coll.) (b) AAA 170,000 177,225
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Orange County Hsg. Fin. Auth. Single-Family
Mtg. Rev. (Mtg. Bkd. Secs. Prog.)
6.40% 10/1/14 AAA $ 2,000,000 $ 2,032,500
Orange County Sales Tax Rev. Series B,
5.375% 1/1/24 A1 7,000,000 6,623,750
Orange County Tourist Dev. Tax Rev. Rfdg.
Series A:
5.75% 10/1/07 (MBIA Insured) Aaa 1,620,000 1,698,975
5.85% 10/1/08 (MBIA Insured) Aaa 1,795,000 1,889,238
5.90% 10/1/09 (MBIA Insured) Aaa 1,250,000 1,309,375
Orlando Util. Comm. Wtr. & Elec. Rev.:
Rfdg:
Sub-Series D, 6.75% 10/1/17 Aa 7,000,000 8,032,500
6% 10/1/10 Aa1 1,405,000 1,477,006
Sub-Series A, 6.50% 10/1/20
(Pre-Refunded to 10/1/01@102) (d) Aaa 3,405,000 3,805,088
Sub-Series C, 7% 10/1/23 Aaa 3,260,000 3,634,900
5.60% 10/31/13 Aa 9,400,000 9,118,000
5% 10/1/23 Aa1 2,000,000 1,800,000
Palm Beach County Criminal Justice Facs. Rev.
6.90% 6/1/00 (FGIC Insured) Aaa 3,000,000 3,300,000
Palm Beach County Solid Waste Auth. Rev.
8.625% 7/1/04 A 1,500,000 1,646,250
Pinellas Park Pub. Impt. Rev. Rfdg. Series A,
5% 10/1/13 (FGIC Insured) Aaa 1,000,000 930,000
Plantation Health Facs. Auth. Rev.
(Covenant Retirement Communities Inc.)
7.75% 12/1/22 - 2,500,000 2,584,375
Polk County Ind. Dev. Auth. Ind. Dev. Rev.
(Winter Haven Hosp.) Series 2, 6.25%
9/1/15 (MBIA Insured) Aaa 1,500,000 1,552,500
Reedy Creek Util. Rev. 6.50% 10/1/16 Aaa 1,350,000 1,498,500
St. Johns County Ind. Dev. Auth. Hosp. Rev.
(Flagler Hosp. Proj.) 6% 8/1/22 A 4,490,000 4,439,488
St. Lucie County Solid Waste Disp. Rev.
(Florida Pwr. & Lt. Co. Proj.)
6.70% 5/1/27 (b) A2 1,050,000 1,097,250
Sarasota Wtr. & Swr. Util. Rev. Rfdg.:
5.25% 10/1/00 (FGIC Insured) (e) Aaa 1,150,000 1,161,500
6.25% 10/1/04 (FGIC Insured) (e) Aaa 1,450,000 1,542,438
6.25% 10/1/07 (FGIC Insured) (e) Aaa 1,735,000 1,832,594
Seminole County Wtr. & Swr. Rev. Rfdg.:
6% 10/1/09 (MBIA Insured) Aaa 1,500,000 1,576,875
6% 10/1/12 (MBIA Insured) Aaa 1,500,000 1,561,875
Sumter County School Dist. Rev.
(Multi-Dist. Loan Prog.) 7.15% 11/1/15
(CGIC Insured) Aaa 1,000,000 1,182,500
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Sunrise Pub. Facs. Rev. Series B, 0% 10/1/13
(MBIA Insured) Aaa $ 2,840,000 $ 990,450
Tampa Cap. Impt. Proj. Rev. Series B:
8.25% 10/1/05 BBB 4,500,000 4,831,875
8.375% 10/1/18 BBB 1,800,000 1,921,500
Tampa Rev. (Allegheny Health Sys. - St. Joseph)
6.75% 12/1/17 (MBIA Insured) Aaa 150,000 162,750
Tampa Wtr. & Swr. Rev. Rfdg.:
Series A, 5% 10/1/14 (FGIC Insured) Aaa 1,830,000 1,701,900
Series B, 5% 10/1/14 (FGIC Insured) Aaa 1,000,000 930,000
Tarpon Springs Health Facs. Auth. Hosp. Rev.
(Helen Ellis Mem. Hosp. Proj.):
7.50% 5/1/11 BBB- 1,225,000 1,272,469
7.625% 5/1/21 BBB- 4,245,000 4,414,800
327,583,120
PUERTO RICO - 3.9%
Puerto Rico Commonwealth Aqueduct & Swr. Auth.
Rev. Series A, 7.875% 7/1/17 Baa 2,500,000 2,743,750
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Rev. Series T, 6.625% 7/1/18 Baa1 4,000,000 4,205,000
Puerto Rico Commonwealth Infrastructuring Fing.
Auth. Spl. Series A, 7.50% 7/1/09 Baa1 1,000,000 1,077,500
Puerto Rico Commonwealth Rfdg. & Impt. Unltd.
Tax 5.30% 7/1/04 Baa1 55,000 54,313
Puerto Rico Pub. Bldgs. Auth. Guaranteed
Pub. Ed. & Health Facs.:
Rfdg. Series M, 5.75% 7/1/15 Baa1 5,500,000 5,383,125
Series L, 6.875% 7/1/21 Aaa 1,000,000 1,153,750
14,617,438
U.S. VIRGIN ISLANDS - 1.2%
Virgin Islands Pub. Fin. Auth. Rev. Rfdg.
Series A, 7.25% 10/1/18 - 4,300,000 4,525,745
GUAM - 3.3%
Guam Arpt. Auth. Gen. Rev.:
Series A, 6.60% 10/1/10 (b) BBB 1,500,000 1,535,620
Series B:
6.40% 10/1/05 (b) BBB 3,750,000 3,839,063
6.70% 10/1/23 (b) BBB 3,950,000 4,014,188
Guam Pwr. Auth. Rev.:
Series A:
5.25% 10/1/13 BBB 1,250,000 1,123,438
6.30% 10/1/22 BBB 2,150,000 2,152,688
12,664,997
TOTAL MUNICIPAL BONDS
(Cost $347,937,595) 359,391,300
MUNICIPAL NOTES (A) - 5.3%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - 5.3%
Brevard Hsg. Fin. Auth. Rev. (Sun Pointe Bay
Apts. Proj.) Series 1993, 4.50%
(BPA Continental Casualty Co.) VRDN A-1+ $ 1,900,000 $ 1,900,000
Dade County Health Facs. Auth. Hosp. Rev.
(Miami Children's Hosp. Proj.) Series 1990,
4.20%, LOC Barnett Bank, VRDN VMIG 1 7,500,000 7,500,000
Dade County Ind. Dev. Auth. Ind. Dev. Rev.
(Dolphins Stadium Proj.) Series 1985 B,
3.75%, LOC Citibank, VRDN VMIG 1 3,800,000 3,800,000
Hialeah Hosp. Rev. Rfdg. (Hialeah Hosp. Inc.
Proj.) 3.85%, LOC Bank of Montreal,
VRDN VMIG 1 4,000,000 4,000,000
Indian Trace Commty. Dev. Dist.
(Broward Co. Basin 1 Wtr. Mgt. Spl. Benefit)
4% (MBIA Insured)
(BPA Swiss Bank) VRDN VMIG 1 3,000,000 3,000,000
TOTAL MUNICIPAL NOTES
(Cost $20,200,000) 20,200,000
TOTAL INVESTMENTS - 100%
(Cost $368,137,595) $ 379,591,300

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(d) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(e) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(f) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(g) Security collateralized by an amount sufficient to pay interest and
principal.
(h) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
INCOME TAX INFORMATION
At May 31,1995, the aggregate cost of investment securities for income tax
purposes was $368,137,595. Net unrealized appreciation aggregated
$11,453,705 of which $13,598,667 related to appreciated investment
securities and $2,144,962 related to depreciated investment securities.
At November 30, 1994, the fund had a capital loss carryforward of
approximately $1,972,231 which will expire on November 30, 2002.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 63.3% AAA, AA, A 65.9%
Baa 15.2% BBB 17.7%
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 either S&P or Moody's amounted to 6.8%
including long-term debt categorized as other securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Health Care 18.3%
Electric Revenue 15.6
Transportation 13.1
Others
(individually less than 10%) 53.0
TOTAL 100.0%
SPARTAN FLORIDA MUNICIPAL INCOME PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)

5.ASSETS 6. 7.

8.Investment in securities, at value (cost $368,137,595) 9. $ 379,591,300
- -
See accompanying schedule

10.Cash 11. 3,598,118

12.Receivable for investments sold 13. 8,351,536

14.Interest receivable 15. 5,840,686

16.Redemption fees receivable 17. 27

18. 19.TOTAL ASSETS 20. 397,381,667

21.LIABILITIES 22. 23.

24.Payable for investments purchased 25.

26. Regular delivery $ 5,227,599 27.

28. Delayed delivery 15,258,984 29.

30.Distributions payable 604,932 31.

32.Accrued management fee 171,464 33.

34. 35.TOTAL LIABILITIES 36. 21,262,979

37.38.NET ASSETS 39. $ 376,118,688

40.Net Assets consist of: 41. 42.

43.Paid in capital 44. $ 371,193,570

45.Accumulated undistributed net realized gain (loss) 46. (6,528,587)
on investments

47.Net unrealized appreciation (depreciation) 48. 11,453,705
on investments

49.50.NET ASSETS, for 34,447,924 shares outstanding 51. $ 376,118,688

52.53.NET ASSET VALUE, offering price and redemption 54. $10.92
price per share ($376,118,688 (divided by) 34,447,924 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)

55.56.INTEREST INCOME 57. $ 10,982,628

58.EXPENSES 59. 60.

61.Management fee $ 974,322 62.

63.Non-interested trustees' compensation 808 64.

65. 66.TOTAL EXPENSES 67. 975,130

68.69.NET INTEREST INCOME 70. 10,007,498

71.REALIZED AND UNREALIZED GAIN (LOSS) 73. 74.
72.Net realized gain (loss) on:

75. Investment securities (3,732,614) 76.

77. Futures contracts (862,553) (4,595,167)

78.Change in net unrealized appreciation (depreciation) 79. 80.
on:

81. Investment securities 44,721,033 82.

83. Futures contracts 38,811 44,759,844

84.85.NET GAIN (LOSS) 86. 40,164,677

87.88.NET INCREASE (DECREASE) IN NET ASSETS 89. $ 50,172,175
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1995 NOVEMBER 30,
(UNAUDITED) 1994

90.INCREASE (DECREASE) IN NET ASSETS

91.Operations $ 10,007,498 $ 22,142,396
Net interest income

92. Net realized gain (loss) (4,595,167) (1,846,988)

93. Change in net unrealized appreciation (depreciation) 44,759,844 (49,908,428)

94. 95.NET INCREASE (DECREASE) IN NET ASSETS 50,172,175 (29,613,020)
RESULTING FROM OPERATIONS

96.Distributions to shareholders (10,007,498) (22,142,396)
From net interest income

97. From net realized gain - (7,685,399)

98. 99.TOTAL DISTRIBUTIONS (10,007,498) (29,827,795)

100.Share transactions 48,997,995 113,687,492
Net proceeds from sales of shares

101. Reinvestment of distributions 6,227,941 19,685,122

102. Cost of shares redeemed (54,852,571) (166,831,473)

103. Redemption fees 29,662 83,694

104.105. 403,027 (33,375,165)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM SHARE TRANSACTIONS

106. 40,567,704 (92,815,980)
107.TOTAL INCREASE (DECREASE) IN NET ASSETS

108.NET ASSETS 109. 110.

111. Beginning of period 335,550,984 428,366,964

112. End of period $ 376,118,688 $ 335,550,984

113.OTHER INFORMATION 115. 116.
114.Shares

117. Sold 4,752,512 10,546,906

118. Issued in reinvestment of distributions 593,588 1,829,088

119. Redeemed (5,354,243) (15,871,258)

120. Net increase (decrease) (8,143) (3,495,264)

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
121. SIX MONTHS YEARS ENDED NOVEMBER 30 MARCH 16, 1992
ENDED , (COMMENCEME
MAY 31, 1995 NT
OF OPERATIONS) T
O
NOVEMBER 30,

122. (UNAUDITED) 1994C 1993 1992

123.SELECTED PER-SHARE DATA

124.Net asset value, $ 9.740 $ 11.290 $ 10.520 $ 10.000
beginning of period

125.Income from Investment .293 .587 .615 .459
Operations
Net interest income

126. Net realized and unrealized 1.179 (1.352) .777 .514
gain (loss)

127. Total from investment 1.472 (.765) 1.392 .973
operations

128.Less Distributions (.293) (.587) (.615) (.459)
From net interest income

129. From net realized gain on - (.200) (.010) -
investments

130. Total distributions (.293) (.787) (.625) (.459)

131.Redemption fees added to paid .001 .002 .003 .006
in capital

132.Net asset value, end of period $ 10.920 $ 9.740 $ 11.290 $ 10.520

133.TOTAL RETURN B 15.29% (7.19) 13.52 9.94%
% %

134.RATIOS AND SUPPLEMENTAL
DATA

135.Net assets, end of period $ 376,119 $ 335,551 $ 428,367 $ 237,109
(000 omitted)

136.Ratio of expenses to average .55%A .54% .25 .03%A
net assets %

137.Ratio of expenses to average .55%A .55% .55 .55%A
net assets before expense %
reductions

138.Ratio of net interest income 5.64%A 5.49% 5.52 6.25%A
to average net assets %

139.Portfolio turnover rate 70%A 49% 50 38%A
%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL RETURNS WOULD HAVE BEEN LOWER
HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C EFFECTIVE DECEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance. If Fidelity had not
reimbursed the fund for certain expenses, the past 1 year and life of fund
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan Florida Municipal
Money Market Portfolio 1.82% 3.18% 7.79%

Average All Tax-Free
Money Market Fund 1.72% 2.99% 6.70%

Consumer Price Index 1.53% 3.19% 8.02%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on August 24,1992. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. To measure how the fund's performance stacked up against its
peers, you can compare it to the average all tax-free money market fund,
which reflects the performance of 389 all tax-free money market funds with
similar objectives tracked by IBC/Donoghue over the past six months.
Comparing the fund's performance to the consumer price index (CPI) helps
show how your fund did compared to inflation. (The periods covered by the
CPI and IBC/Donoghue numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 1 LIFE OF
YEAR FUND

Spartan Florida Municipal
Money Market Portfolio 3.18% 2.74%

Average All Tax-Free
Money Market Fund 2.99% 2.39%

Consumer Price Index 3.19% 2.85%

Spartan Florida Municipal 2.61% 2.72% 3.30% 3.80% 3.78%
Money Market Portfolio

If Fidelity had not 2.56% n/a n/a n/a n/a
reimbursed certain fund
expenses

Average All Tax-Free 2.35% 2.59% 3.10% 3.48% 3.61%
Money Market Fund

Spartan Florida Municipal 4.08% 4.25% 5.16% 5.94% 5.91%
Money Market Portfolio -
Tax-equivalent

If Fidelity had not 4.00% n/a n/a n/a n/a
reimbursed certain fund
expenses

YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. If the
adviser had not reimbursed certain fund expenses during the periods shown,
the yields would have been lower. You can compare these yields to the
average all tax-free money market fund as tracked by IBC/Donoghue. Or you
can look at the fund's tax-equivalent yield, which is based on a combined
effective 1995 federal tax rate of 36%. A portion of the fund's income may
be subject to the alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS:
On June 1, 1995, Jan Bradburn
(left) became portfolio manager of Spartan Florida Municipal Money Market
Portfolio. The following is an interview with Deborah Watson - who managed
the fund during the period covered by this report - with some comments from
Jan Bradburn on her outlook and strategy:
Q. DEB, WHAT KIND OF ENVIRONMENT HAVE YOU BEEN OPERATING IN FOR THE PAST
SIX MONTHS?
D.W. A transitional one. After a year in which the Federal Reserve raised
interest rates continually - hoping to slow down the pace of economic
growth and thwart inflation - the first half of 1995 was relatively
uneventful. The only Fed move during the period was a
one-half-percentage-point increase in February. But while the Fed stood
aside, the market shifted dramatically, thanks in part to the cumulative
effect of prior Fed moves. It's hard to overstate the turnaround in market
psychology that occurred during the past six months. At the beginning of
the period, the economy was still growing rapidly, expanding at a rate that
topped 5% in the fourth quarter of 1994. In early 1995, though, we began to
see the first signs of weakness in housing starts and retail sales. When
the first-quarter growth rate was released in April, and came in
surprisingly low at 2.8%, there was no longer any doubt: the economy was
slowing down. By the end of the period, some economists were warning of an
imminent recession, and many were predicting that the next Fed move would
be to lower rates, possibly as early as this summer.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
S.O. As always with the Florida fund, technical factors heavily influenced
strategy. Assets nearly doubled during December, as investors sought
shelter from the state intangible tax. During that time, the fund's stake
in short-term variable rate demand notes, or VRDNs, rose to 70%. VRDNs,
because they're highly liquid, helped provide the flexibility the fund
needed to meet redemptions once assets began flowing back out of the fund
early in the year. The fund's average maturity was 27 days at the end of
November. It reached 34 days in February, after the wave of redemptions,
and was 29 days at the end of May.
Hardcopy of
Photo of
JEFF PARKER
to come
from WTC
Q. HOW DID THE FUND PERFORM?
S.O. Better than most other tax-free money market funds. The fund's
seven-day yield on May 31, 1995, was 3.74%, up from 3.31% six months ago.
That equaled a 5.84% taxable rate for investors in the 36% income tax
bracket. Through May 31, 1995, the fund's six-month total return was 1.82%,
compared to 1.72% for the average all tax-free money market fund for the
same period, according to IBC/Donoghue.
Q. JAN, WHAT'S YOUR OUTLOOK?
J.P. If the recent economic weakness persists, the Fed may well reverse
policy and lower interest rates this summer. On the other hand, if
inventories decline and production picks up, then the growth rate could
stop falling. Either way, the upshot could be a more stable rate
environment in the months ahead. That's one factor to keep in mind. Another
is the supply issue. Unlike many other states, Florida doesn't concentrate
its new issuance in the summer months. Traditionally, that has caused
demand to outstrip supply in the summer, often driving rates down. I'll
probably look for opportunities to extend the fund's average maturity in
the months ahead, perhaps aiming for the mid 40s as supply permits.

FUND FACTS
GOAL: income exempt from
federal income tax and the
Florida intangible tax and
stability by investing in
high-quality, short-term Florida
municipal securities
START DATE: August 24, 1992
SIZE: as of May 31, 1995,
more than $362 million
MANAGER: Deborah Watson,
1992 - June 1995. Jan
Bradburn, starting June 1995;
also manager, Fidelity Ohio
Municipal Money Market
Portfolio, since 1993; Fidelity
and Spartan Massachusetts
Municipal Money Market
Portfolios, since 1992; Spartan
New York Municipal Money
Market Portfolio, since 1990;
Fidelity New York Tax-Free
Money Market Portfolio, since
1989; joined Fidelity in 1989
(checkmark)

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/95 11/30/94 5/31/94

0 - 30 78 82 87

31 - 90 12 12 6

91 - 180 9 0 6

181 - 397 1 6 1

WEIGHTED AVERAGE MATURITY
5/31/95 11/30/94 5/31/94

Spartan Florida
Municipal Money Market
Portfolio 29 days 27 days 22 days

Average All Tax-Free
Money Market Fund* 38 days 46 days 43 days

ASSET ALLOCATION
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994

Row: 1, Col: 1, Value: 56.0
Row: 1, Col: 2, Value: 24.0
Row: 1, Col: 3, Value: 10.0
Row: 1, Col: 4, Value: 9.0
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 1, Value: 68.0
Row: 1, Col: 2, Value: 21.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 6.0
Row: 1, Col: 5, Value: 2.0
Variable rate
demand notes
(VRDNs) 56%
Commercial
paper 24%
Tender bonds 10%
Municipal
notes 9%
Other 1%
Variable rate
demand notes
(VRDNs) 68%
Commercial
paper 21%
Tender bonds 4%
Municipal
notes 6%
Other 1%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO

INVESTMENTS MAY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - 0.5%
Connecticut Hsg. Fin. Auth. Bonds (Mtg. Fin. Prog.)
Series 1990 C, 4.20%, tender 8/9/95 (b) $ 1,600,000 $ 1,600,000
FLORIDA - 87.8%
Alachua County Health Fac. Auth. Bonds
(Academic Research Bldg. Proj.):
Series 1989:
4.30%, tender 8/7/95,
LOC Barnett Bank of Jacksonville 5,250,000 5,250,000
4.30%, tender 8/8/95,
LOC Barnett Bank of Jacksonville 1,000,000 1,000,000
Arcadia Hosp. Rev. (Desoto Memorial Hosp.) Series 1994,
4.15%, LOC First Union Bank of Florida, VRDN 5,000,000 5,000,000
Brevard County Hsg. Rev. (Palm Place Hsg. Proj.)
Series 1985, 3.45%, LOC Chemical Bank, VRDN 3,200,000 3,200,000
Broward County Hsg. Fin. Auth. Multi-Family Hsg.
Rev., VRDN:
(Lake Park Assoc. Ltd. Partnership) Series 1985,
3.70%, LOC Society Bank 10,070,000 10,070,000
(Palm Aire-Oxford Proj.) Series 1990, 4.10% 1,800,000 1,800,000
Clayton County Hsg. Fin. Auth. Rev. Participating VRDN,
Series PT-61, 4.25%, LOC Bayerische Hypotheken (b) (c) 4,950,000
4,950,000
Collier County Wtr. & Swr. Ind. Dev. Rev.,VRDN (b):
(Marco Island Util. Proj.) :
Series 1990, 4.25%, LOC Sun Bank 4,600,000 4,600,000
Series 1992, 4.25%, LOC Sun Bank 1,200,000 1,200,000
Dade County Ind. Dev. Auth. Ind. Dev. Rev.
(Royal Store Fixtures Corp. Proj.) 4.25%,
LOC Sun Bank, VRDN (b) 2,500,000 2,500,000
Dade County Ind. Dev. Rev., VRDN:
(Dolphin Stadium Proj.):
Series 1985 A, 3.75%, LOC Citibank 2,000,000 2,000,000
Series 1985 D, 3.75%, LOC Citibank 6,600,000 6,600,000
(Guastafeste Proj.):
Series 1987, 4.25%, LOC Sun Bank (b) 1,135,000 1,135,000
Series 1991, 4.25%, LOC Sun Bank (b) 715,000 715,000
(Montenay-Dade Ltd. Proj.) Series 1990 A, 3.80%,
LOC Banque Paribas (b) 11,170,000 11,170,000
Dade County Multi-Family Hsg. Rev.
(Biscayne View Apts. Proj.) Series 1993, 4.50%
(BPA Commonwealth Life Ins. Co.) VRDN (b) 15,000,000 15,000,000
Dade County School Dist. Bonds, 6.40% 8/1/95
(MBIA Insured) 750,000 752,309
Duval County Hsg. Fin. Auth. Rev. (Lakes of Mayport Apts.)
Series 1985 F, 4.20%, LOC Bank of Boston, VRDN 4,300,000 4,300,000
Eustis Health Fac. Auth. Hosp. Rev. (Waterman Proj.)
Series 1992, 4.05%, LOC Banque Paribas,
VRDN 5,500,000 5,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Florida Board of Ed. Bonds Cap. Outlay Pub. Ed.:
Series B, 6.80% 6/1/96 $ 1,000,000 $ 1,025,103
Participating VRDN, Series PA-1B 4.20%
(Liquidity Facility Merrill Lynch & Co.) (c) 4,000,000 4,000,000
Florida Hsg. Fin. Agcy. Multi-Family Hsg., VRDN:
(Hillsborough-Oxford Proj.) Series D, 4.10%
(Continental Casualty Guaranty Insured) 5,590,000 5,590,000
(Players Club) Series 1991 C, 4.29%,
LOC Sumitomo Bank 19,680,000 19,680,000
Florida League of Cities First Muni. Pooled Loan Prog.
Bonds Series 1, 4.15%, tender 6/8/95,
LOC Sumitomo Bank 1,000,000 1,000,000
Florida Local Govt. Fin. Auth.
(Lake Wales Med. Ctrs. Inc. Proj.) Series 1994 A, 4%,
LOC First Union Nat'l. Bank of Florida, VRDN 2,563,000 2,563,000
Florida Muni. Pwr. Agcy. Participating VRDN, Series PA-1018,
4.15% (Liquidity Facility Merrill Lynch & Co.) (c) 2,520,000 2,520,000
Greater Orlando Aviation Auth. Arpt. Facs. Series B, CP (b):
4.25% 7/13/95
(Liquidity Facility Morgan Guaranty Trust Co.) 1,500,000 1,500,000
4.15% 8/15/95
(Liquidity Facility Morgan Guaranty Trust Co.) 1,000,000 1,000,000
Hialeah Hosp. Rev. Rfdg. (Hialeah Hosp. Proj.)
Series B, 3.85%, LOC Bank of Montreal, VRDN 4,000,000 4,000,000
Hillsborough County Aviation Auth., CP (b):
(Tampa International Arpt. Proj.):
4.25% 8/8/95, LOC Nat'l. Westminster Bank 5,000,000 5,000,000
4.25% 9/7/95, LOC Nat'l. Westminster Bank 2,500,000 2,500,000
Indian River County Hosp. Dist. Rev. Bonds:
Series 1988:
4.25%, tender 6/8/95, LOC Kredietbank 2,350,000 2,350,000
4.30%, tender 8/7/95, LOC Kredietbank 2,000,000 2,000,000
4.30%, tender 9/12/95, LOC Kredietbank 2,800,000 2,800,000
Series 1989:
4.30%, tender 9/11/95, LOC Kredietbank 1,200,000 1,200,000
4.30%, tender 9/12/95, LOC Kredietbank 4,300,000 4,300,000
Series 1990:
4.30%, tender 9/11/95, LOC Kredietbank 5,000,000 5,000,000
4.30%, tender 9/12/95, LOC Kredietbank 2,000,000 2,000,000
Indian River County Hosp. Dist. Rev. Rfdg. Series 1985,
3.90%, LOC Kredietbank, VRDN 900,000 900,000
Jacksonville Elec. Auth. Rev. Participating VRDN,
Series PA-100, 4.20%,
(Liquidity Facility Merrill Lynch & Co.) (c) 3,460,000 3,460,000
Jacksonville Ind. Dev. Rev. (Samuel C. Taylor Foundation
1987 Proj.) 4.30%, LOC Barnett Bank of Jacksonville,
VRDN 5,200,000 5,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Jacksonville (River City Renaissance Program) 4.15%
6/13/95 (BPA Morgan Guaranty Trust Co.)
(Liquidity Facility Credit Suisse) CP $ 3,000,000 $ 3,000,000
Lee County Hosp. Board Hosp. Rev. Bonds
(Lee Memorial Hosp. Proj.) 4.40%, tender 6/9/95
(Liquidity Facility Industrial Bank of Japan) 5,000,000 5,000,000
Liberty County Ind. Dev. Rev. (Timber Energy Resources Inc.
Proj.) Series 1994, 3.75%, LOC Bank of Montreal,
VRDN 8,200,000 8,200,000
Manatee County Hsg. Fin. Auth. (Harbor Pointe Proj.)
Series 1990 A, 4.10%, LOC Marine Midland Bank,
VRDN 1,000,000 1,000,000
Monroe County School Dist. RAN 5.25% 12/14/95 3,000,000 3,000,000
Ocean Hwy. & Port Auth. Rev. Series 1990, 3.90%
LOC ABN-AMRO Bank, VRDN (b) 11,100,000 11,100,000
Okeechobee County Solid Waste Rev. (Chambers Waste Sys.)
Series 1992, 4.30%, LOC NationsBank, VRDN (b) 10,900,000 10,900,000
Orange County Health Facs. Auth. Hosp. Rev.
Participating VRDN, Series PA-95, 4.25%
(Liquidity Facility Merrill Lynch & Co.) (c) 3,985,000 3,985,000
Orange County Health Facs. Auth. Rev. Rfdg. Bonds,
4.20%, tender 7/24/95 (BPA Banque Paribas)
(MBIA Insured) 4,900,000 4,900,000
Orange County School Dist. TAN 4.75% 6/30/95 4,000,000 4,002,293
Orlando Util. Commission Water & Elec. Rev.
Participating VRDN, Series PA-94, 4.20%
(Liquidity Facility Merrill Lynch & Co.) (c) 5,175,000 5,175,000
Orlando Util. Commission Water & Elec. Rev. Rfdg. Bonds:
7.90% 10/1/95 2,000,000 2,022,006
8.10% 10/1/95 1,000,000 1,031,013
Palm Beach County Health Facs. Bonds (Pooled
(Hosp. Loan) 4.20%, tender 7/25/95 (MBIA Insured)
(Liquidity Facility Credit Suisse) 6,000,000 6,000,000
Palm Beach County Hsg. Fin. Auth. Rev.
(Lake Crystal Apts. Proj. Phase III) Series 1988 A, 3.85%,
LOC Citibank, VRDN 7,440,000 7,440,000
Palm Beach County Rev. (Norton Gallery & School of Art)
3.85%, LOC Northern Trust Company, VRDN 4,500,000 4,500,000
Pasco County School Dist. TAN 4.75% 6/30/95 7,200,000 7,204,320
Pensacola Rev. Bonds (Harborview Corp. Proj.) 4.50%,
LOC Amsouth Bank, VRDN 2,975,000 2,975,000
Pinellas County Hsg. Fin. Auth. Multi-Family Mtg. Rev.
(Foxbridge Apts.) Series 1993 A, 3.95%,
LOC Citibank, VRDN 1,000,000 1,000,000
Plant City (South Baptist Hosp. Proj.) Series 1993, 4.25%,
LOC Barnett Bank of Tampa, VRDN (b) 4,800,000 4,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Putnam County Dev. Auth. Poll. Cont. Rev. Bonds:
(Seminole Elec. Coop.):
Series 1984 D, 3.15%, tender 6/15/93 $ 25,000,000 $ 25,000,000
Series 1984 H-3, 4.30%, tender 9/15/95 1,015,000 1,015,468
Series 1984 H-4, 4.30%, tender 9/15/95 1,000,000 1,000,325
Sunshine Gov't. Fing. Commission Rev.:
4.15% 6/8/95, CP 5,000,000 5,000,000
4.15% 6/9/95, CP 3,000,000 3,000,000
Sunshine Gov't. Fing. Commission Rev. Bonds
Series 1986, 4.10%, tender 6/14/95,
LOC Morgan Guaranty Trust Co. 3,600,000 3,600,000
Volusia County Health Facs. Auth. Rev. (Southwest Volusia
Healthcare Corp.) Series 1994 A, 4.20%,
LOC First Union Nat'l. Bank of North Carolina,
VRDN 13,000,000 13,000,000
315,180,837
ILLINOIS - 2.8%
Chicago Gen. Oblig. Rev. Bonds Series 1995 B, 4.60%,
11/1/95, LOC Morgan Guaranty Trust Co. 10,000,000 10,000,000
LOUISIANA - 0.3%
Plaquemines Port. Harbor Terminal Dist. Facs. Rev. Bonds
(Electro-Coal Transfer Corp.) Series 1985 D, 4.45%,
tender 6/9/95 1,000,000 1,000,000
MASSACHUSETTS - 1.5%
Massachusetts Gen. Oblig. BAN Series 1994 A, 5%
6/15/95 5,500,000 5,501,265
NEVADA - 1.0%
Clark County Poll. Cont. Rev. Bonds (Southern California
Edison) Series 1987 A, 4%, tender 8/14/95 (b) 3,500,000 3,500,000
PENNSYLVANIA - 3.6%
Carbon County Ind. Dev. Auth. Resource Recovery Rev.
Bonds (Panther Creeks Prtnrs. Proj.) Series 1991 A,
4.20%, tender 8/9/95, LOC Nat'l. Westminster (b) 2,000,000 2,000,000
Philadelphia School Dist. Gen. Oblig. TRAN
Series 1994-95, 4.75% 6/30/95 11,000,000 11,001,620
13,001,620
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
TEXAS - 2.4%
Brazos River Auth. Poll. Cont. Rfdg. Bonds (Util. Proj.)
Series A, 4.20%, tender 8/9/95,
LOC Canadian Imperial Bank (b) $ 3,700,000 $ 3,700,000
San Antonio Elec. & Gas Sys. Series A, 4.05%
7/19/95, CP 5,000,000 5,000,000
8,700,000
WISCONSIN - 0.1%
Kenosha Unified School Dist. TRAN 5% 8/25/95 500,000 500,457
TOTAL INVESTMENTS - 100% $ 358,984,179
Total Cost for Income Tax Purposes $ 358,984,223

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At November 30, 1994, the fund had a capital loss carryforward of
approximately $23,100 of which $100, $1,100 and $21,900 will expire on
November 30, 2000, 2001 and 2002, respectively.
SPARTAN FLORIDA MUNICIPAL MONEY MARKET PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)

140.ASSETS 141. 142.

143.Investment in securities, at value - See 144. $ 358,984,179
accompanying schedule

145.Cash 146. 949,195

147.Interest receivable 148. 2,996,690

149. 150.TOTAL ASSETS 151. 362,930,064

152.LIABILITIES 153. 154.

155.Distributions payable $ 61,606 156.

157.Accrued management fee 155,716 158.

159. 160.TOTAL LIABILITIES 161. 217,322

162.163.NET ASSETS 164. $ 362,712,742

165.Net Assets consist of: 166. 167.

168.Paid in capital 169. $ 362,738,305

170.Accumulated net realized gain (loss) on 171. (25,563)
investments

172.173.NET ASSETS, for 362,738,305 shares 174. $ 362,712,742
outstanding

175.176.NET ASSET VALUE, offering price and 177. $1.00
redemption price per share ($362,712,742 (divided by)
362,738,305 shares)

</TABLE>

STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)

178.179.INTEREST INCOME 180. $ 8,569,453

181.EXPENSES 182. 183.

184.Management fee $ 1,035,662 185.

186.Non-interested trustees' compensation 1,197 187.

188. 189.TOTAL EXPENSES 190. 1,036,859

191.192.NET INTEREST INCOME 193. 7,532,594

194.195.NET REALIZED GAIN (LOSS) ON INVESTMENTS 196. (2,444)

197.198.NET INCREASE IN NET ASSETS RESULTING FROM 199. $ 7,530,150
OPERATIONS

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, 1995 NOVEMBER 30,
(UNAUDITED) 1994

200.INCREASE (DECREASE) IN NET ASSETS

201.Operations $ 7,532,594 $ 8,842,690
Net interest income

202. Net realized gain (loss) (2,444) (21,862)

203. Increase (decrease) in net unrealized gain from - (17)
accretion of market discount

204. 7,530,150 8,820,811
205.NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS

206.Distributions to shareholders from net interest (7,532,594) (8,842,690)
income

207.Share transactions at net asset value of $1.00 per 508,501,889 587,117,506
share
Proceeds from sales of shares

208. Reinvestment of distributions from net interest 7,008,533 8,273,320
income

209. Cost of shares redeemed (490,324,887) (564,580,189)

210.211. 25,185,535 30,810,637
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES
RESULTING FROM SHARE TRANSACTIONS

212. 25,183,091 30,788,758
213.TOTAL INCREASE (DECREASE) IN NET ASSETS

214.NET ASSETS 215. 216.

217. Beginning of period 337,529,651 306,740,893

218. End of period $ 362,712,742 $ 337,529,651

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30, AUGUST 24, 1992
ENDED (COMMENCEMEN
MAY 31, 1995 T
OF OPERATIONS) TO
NOVEMBER 30,

(UNAUDITED) 1994 1993 1992

219.SELECTED PER-SHARE DATA

220.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of period

221.Income from Investment .018 .024 .025 .008
Operations
Net interest income

222.Less Distributions (.018) (.024) (.025) (.008)
From net interest income

223.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period

224.TOTAL RETURN B 1.83% 2.47% 2.51% .78%

225.RATIOS AND SUPPLEMENTAL
DATA

226.Net assets, end of period $ 362,713 $ 337,530 $ 306,741 $ 49,467
(000 omitted)

227.Ratio of expenses to .50% .46% .18% -
average A
net assets

228.Ratio of expenses to .50% .50% .50% .50%
average A A
net assets before expense
reductions

229.Ratio of net interest income 3.63% 2.43% 2.48% 2.91%
to A A
average net assets

</TABLE>

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Florida Municipal Income Portfolio (the income fund) is a fund of
Fidelity Court Street Trust. Spartan Florida Municipal Money Market
Portfolio (the money market fund) is a fund of Fidelity Court Street Trust
II. Each trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company.
Fidelity Court Street Trust and Fidelity Court Street Trust II (the trusts)
are organized as a Massachusetts business trust and a Delaware business
trust, respectively. Each fund is authorized to issue an unlimited number
of shares. The following summarizes the significant accounting policies of
the income fund and the money market fund:
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. Short-term securities maturing
within sixty days of their purchase date are valued either at amortized
cost or original cost plus accrued interest, both of which approximate
current value. Securities for which quotations are not readily available
through the pricing service are valued at their fair value as determined in
good faith under consistently applied procedures under the general
supervision of the Board of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
the fiscal year. The schedules of investments include information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
futures
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
and options transactions. 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.
REDEMPTION FEES. Shares held in the income fund less than 180 days are
subject to a redemption fee equal to .50% of the proceeds of the redeemed
shares. The fee, which is retained by the fund, is accounted for as an
addition to paid in capital.
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.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. Each fund
may receive compensation for interest forgone in a delayed delivery
transaction. Each fund identifies securities as segregated in its custodial
records with a value at least equal to the amount of the purchase
commitment.
FUTURES CONTRACTS AND OPTIONS. The income fund may invest in futures and
options contracts, and may also write options. These investments involve,
to varying degrees, elements of market risk and risks in excess of the
amount recognized in the Statement of Assets and Liabilities. Risks may be
caused by an imperfect correlation between movements in the price of the
instruments and the price of the underlying securities and interest rates.
Risks also may arise if there is an illiquid secondary market for the
instruments, or due to the inability of counterparties to perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
3. PURCHASES AND SALES OF
INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $117,728,908 and $122,186,468, respectively.The
market value of futures contracts opened and closed during the period
amounted to $26,589,894 and $38,200,511, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest,
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
taxes, brokerage commissions and extraordinary expenses. FMR receives a fee
that is computed daily at an annual rate of .55% and .50% of average net
assets for the income and money market funds, respectively.
FMR also bears the cost of providing shareholder services to each fund. To
offset the cost of providing these services, FMR or its affiliates
collected certain transaction fees from shareholders which amounted to
$1,950 and $3,146 for the income and money market funds, respectively.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect, and after reducing
the fee for any payments by FMR pursuant to the fund's Distribution and
Service Plan.
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUND
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr. , Vice President -
MONEY MARKET FUND
Anne Punzak, Vice President -
INCOME FUND
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Thomas D. Maher, Assistant
Vice President
Michael D. Conway, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE