SPARTAN
(Registered trademark)
(Registered trademark)
MUNICIPAL
MONEY
FUND
SEMIANNUAL REPORT
FEBRUARY 28, 1994
CONTENTS
CHECK PAGE NUMBERS !!!
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
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 last six
months
and one year.
INVESTMENTS 9 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 30 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 34 Footnotes 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. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
No one wants to pay more taxes than they have to. But a recent survey of
500 U.S. households, conducted by Fidelity and Yankelovich Partners, showed
that few people took steps to reduce their taxes under the new tax laws
that went into effect last year. In fact, many people were not completely
aware of the changes until they filed their 1993 tax returns.
Whether or not you're someone whose tax bill increased as a result of these
changes, it may make sense to consider ways to keep more of what you earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider tax-free investments like municipal bonds and municipal
bond funds. Often these can provide higher after-tax yields than comparable
taxable investments. For example, if you're in the new 36% federal income
tax bracket and invest $10,000 in a taxable investment yielding 7%, you'll
pay $252 in federal taxes and receive $448 in income. That same $10,000
invested in a tax-free bond fund yielding 5.5% would allow you to keep $550
in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center. We look forward to
talking with you.
Best regards,
Edward C. Johnson 3d, Chairman
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. Both the fund's
returns and its yields would have been lower if Fidelity had not reduced
certain fund expenses during the periods shown.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND
Spartan Municipal Money 1.20% 2.45% 11.22%
Consumer Price Index 1.31% 2.52% 9.64%
Average All Tax-Free Money Market Fund .97% 1.95% 9.07%
CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - six
months, one year, or since the fund started on January 14, 1991. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, you would end up with $1,050. Comparing the fund's performance
to the consumer price index (CPI) helps show how your investment did
compared to inflation. To measure how the fund stacked up against its
peers, you can compare its return to the average all tax-free money market
fund's total return. This average currently reflects the performance of 345
tax-free money market funds tracked by IBC/Donoghue. (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 FEBRUARY 28, 1994 PAST 1 LIFE OF
YEAR FUND
Spartan Municipal Money 2.45% 3.46%
Consumer Price Index 2.52% 2.95%
Average All Tax-Free Money Market Fund 1.95% 2.82%
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
2/28/93 5/31/93 8/31/93 11/30/93 2/28/94
Spartan Municipal 2.35% 2.76% 2.49% 2.41% 2.40%
Money Fund
Average All Tax-Free 1.82% 2.20% 2.00% 1.94% 1.97%
Money Market Fund
Spartan Municipal Money 3.67% 4.31% 3.89% 3.77% 3.75%
Fund - Tax-equivalent
Average All Taxable 2.71% 2.62% 2.64% 2.69% 2.79%
Money Market Fund
Row: 1, Col: 1, Value: 2.35
Row: 1, Col: 2, Value: 1.82
Row: 2, Col: 1, Value: 2.76
Row: 2, Col: 2, Value: 2.2
Row: 3, Col: 1, Value: 2.49
Row: 3, Col: 2, Value: 2.0
Row: 4, Col: 1, Value: 2.41
Row: 4, Col: 2, Value: 1.94
Row: 5, Col: 1, Value: 2.4
Row: 5, Col: 2, Value: 1.97
3% -
2% -
1% -
0%
Spartan Municipal
Money Fund
Average All
Tax-Free Money
Market Fund
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 tax-free money market fund. Or you can
look at the fund's tax-equivalent yield, which assumes you're in the 36%
tax bracket. The tax-equivalent figures are useful in seeing how the fund
stacked up against the average taxable money market fund as tracked by
IBC/Donoghue.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS 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)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Sarah Zenoble,
Portfolio Manager of Spartan
Municipal Money Fund
Q. SARAH, WHAT HAS THE SHORT-TERM MARKET BEEN LIKE SINCE AUGUST?
A. Aside from an uptick in November due to inflation fears, short-term
taxable interest rates moved within a narrow range from the end of August
through the end of January. During that time, the Federal Reserve kept the
federal funds rate at or near 3%, where it had been since September 1992.
Tax-exempt rates were more volatile, due to technical factors of supply and
demand. Then, during the first week in February, the Fed suddenly pushed
the fed funds rate up to 3.25%, effectively raising all short-term rates.
Q. HOW DID THE FED'S TIGHTENING OF THE MONEY SUPPLY AFFECT THE FUND?
A. By the end of January, I had shortened the fund's average maturity to 52
days from 87 days on August 31, in part because I felt the next move in
interest rates would be up. That positioned the fund to benefit from higher
yields available following the Fed's move in February. However, my
investment strategy during most of the period was prompted by supply and
demand factors.
Q. WHAT HAPPENED?
A. Traditionally, the heaviest issuance in the tax-free market happens in
the summer months, and last year was no exception. Because of the large
supply, tax-free issues were cheap relative to taxables. My buying activity
kept the fund's average maturity on the long side; it was still 79 days by
the end of October. Tax-free yields then dropped sharply in November and
December. The market reacted primarily in anticipation of increased demand
due to seasonal inflows of cash into tax-free funds that routinely occur
after the first of the new year. With interest rates at less attractive
levels, I adopted a more conservative strategy. Focusing on shorter
maturity instruments allowed the fund's maturity to decline to 61 days by
December 31, in anticipation of higher rates in the new year.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on February 28, 1994 was 2.40%, nearly
unchanged from six months ago, when the yield was 2.49%. The latest yield
translates into a taxable equivalent yield of 3.75% for investors in the
36% federal tax bracket. The fund's total return for the six months ended
February 28 was 1.20%. That beat the return for the average all tax-free
money market fund tracked by IBC/Donoghue, which was .97%.
Q. WHAT DIRECTION DO YOU SEE SHORT-TERM RATES TAKING IN THE NEXT SIX
MONTHS?
A. I expect the Fed will make further moves to inch up short-term rates.
The questions are: how high and how fast? I expect to keep the fund's
average maturity on the short side - probably 50 days or less - until I
believe the Fed has taken enough action to allow for a more stable rate
environment. This will allow me to take advantage of opportunities to buy
higher-yielding issues, while keeping the fund ready to respond should
rates climb higher. In addition, the fund had a 52.8% stake in variable
rate demand notes on February 28, and I expect to keep that level steady or
perhaps higher. The coupons (stated interest rates) on these securities are
reset at fixed intervals. So when rates rise, the fund can benefit from
higher coupons at these reset intervals.
FUND FACTS
GOAL: tax-free income with
share price stability by
investing in high-quality,
short-term municipal securities
START DATE: January 14, 1991
SIZE: as of February 28, 1994,
over $2.1 billion
MANAGER: Sarah Zenoble,
since January 1992; manager,
Fidelity Tax-Exempt Money
Market Trust since October
1988, and various institutional
tax-free money market funds
(checkmark)
WORDS TO KNOW
COMMERCIAL PAPER: A security
issued by a municipality to
finance capital or operating
needs.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity -
weighted by dollar amount -
is short, the fund manager is
anticipating a rise in interest
rates. When the average
maturity is long, the manager
is expecting rates to fall.
When the average maturity is
neutral, the manager wants
the flexibility to respond to
rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
MUNICIPAL NOTE: A security
issued in advance of future
tax or other revenues and
payable from those specific
sources.
TENDER BOND: A variable-rate,
long-term security that gives
the bond holder the option to
redeem the bond at face
value before maturity.
VARIABLE RATE DEMAND NOTE
(VRDN): A tender bond that
can be redeemed on short
notice, typically one or seven
days. VRDNs are useful in
managing the fund's average
maturity and liquidity.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
2/28/94 8/31/93 2/28/93
0 - 30 61 66 66
31 - 90 13 7 12
91 - 180 20 1 12
181 - 397 6 26 10
WEIGHTED AVERAGE MATURITY
2/28/94 8/31/93 2/28/93
Spartan Municipal
Money Market Fund 50 days 87 days 46 days
Average All Tax-Free
Money Market Fund* 55 days 67 days 55 days
ASSET ALLOCATION
AS OF 2/28/94 AS OF 8/31/93
Row: 1, Col: 1, Value: 53.0
Row: 1, Col: 2, Value: 14.0
Row: 1, Col: 3, Value: 18.0
Row: 1, Col: 4, Value: 15.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 1, Value: 59.0
Row: 1, Col: 2, Value: 10.0
Row: 1, Col: 3, Value: 18.0
Row: 1, Col: 4, Value: 12.0
Row: 1, Col: 5, Value: 2.0
Variable rate
demand notes
(VRDNs) 53%
Commercial
paper 14%
Tender bonds 18%
Municipal
notes 15%
Other 0%
Variable rate
demand notes
(VRDNs) 59%
Commercial
paper 10%
Tender bonds 18%
Municipal
notes 12%
Other 1%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(Registered trademark)
INVESTMENTS FEBRUARY 28, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
ALABAMA - 2.2%
Alabama Higher Ed. Loan Corp. Student Loan Rev. Bonds,
VRDN: (b)
Series A, 2.50% $ 1,700 $ 1,700 010305CC
Series B, 3%, LOC Fuji Bank 1,400 1,400 010305AT
Ashland Ind. Dev. Board Rev. (Wellborn Cabinet Inc. Proj.)
Series 1991 A, 2.75%,
LOC Amsouth Bank, VRDN (b) 2,000 2,000 044123BF
Athens Ind. Dev. Auth. Rev. (TRIS USA Inc. Proj.)
Series 1990, 3.50%, LOC Tokai Bank Ltd., VRDN (b) 3,500 3,500 046881AN
Colbert County Ind. Dev. Board (Golden Poultry Co.,
Inc. Proj.) Series 1990, 2.60%, LOC Trust Co. of
Georgia, VRDN (b) 5,200 5,200 192698AA
Columbiana Ind. Dev. Board Rev. (NFA Corp. Proj.)
Series 1992 A, 2.75%,
LOC Amsouth Bank, VRDN (b) 7,800 7,800 198702AB
Eufaula Ind. Dev. Board (Columbus Mills Inc. Proj.)
Series 1993, 2.60%, LOC Trust Co. Bank of Georgia,
VRDN (b) 3,000 3,000 298127AP
Florence Ind. Dev. Board. Rev. (Robert J. Bevis Proj.)
Series 1990, 2.60%, LOC Third Nat'l. Bank of
Nashville, VRDN (b) 3,175 3,175 340027FG
Geneva Ind. Dev. Board Rev. (Russell Corp. Proj.)
Series 1992, 2.60%, LOC Trust Co. of Georgia,
VRDN (b) 3,000 3,000 371874AP
Guntersville Ind. Dev. Board. Ind. Dev. Rev.
(Kappler Proj.) Series 1988, 3.125%,
LOC Nat'l. Bank of Canada, VRDN (b) 1,600 1,600 403154BQ
Phoenix City Envir. Impt. Rev. Bonds , VT: (b)
(Mead Coated Board Proj.) Series 1988:
2.40% 3/9/94, LOC ABN-AMRO Bank 4,575 4,575 7173469C
2.55% 8/18/94, LOC ABN-AMRO Bank 3,525 3,525 7173469D
Phoenix City Ind. Dev. Board Envir. Impt. Bond
(Mead Coated Board Proj.), 2.50%,
LOC Toronto Dominion Bank, VRDN (b) 2,700 2,700 717346AE
Rainsville Ind. Dev. Board. Rev. (Kappler Proj.)
Series 1988, 3.125%, LOC Nat'l. Bank of
Canada, VRDN (b) 800 800 751009AP
Talladega Ind. Poll. Cont. Dev. Rev.
(Wehadkee Yarn Mills Proj.) Series 1990, 2.60%,
LOC Trust Co. Bank of Georgia, VRDN (b) 1,235 1,235 874313EF
45,210
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
ARIZONA - 0.9%
Arizona Ed. Loan Mktg. Corp., VRDN: (b)
Series 1990 A, 2.60%, LOC Fuji Bank,
(MBIA Insured) $ 1,100 $ 1,100 040504BW
Series 1991 A, 2.55%, LOC Dresdner Bank 2,500 2,500 040504BY
Arizona Student Loan Acquisition Auth. Student Loan Rev.,
Series 1993 A-1, 2.70%, (FSA Insured)
SBPA Barclays Bank, VRDN, (b) 2,730 2,730 040670AA
Mojave County Ind. Dev. Auth. Ind. Dev. Rev.
(Citizens Utils. Proj) , VT: (b)
Series 1993 E:
2.55% 4/18/94 2,500 2,500
2.70% 5/12/94 5,200 5,200 6080559K
Yavapi County Ind. Dev. Auth. Ind. Dev. Rev.
(Citizens Utils. Proj.) Series 1993, 2.55%
4/18/94, VT (b) 4,700 4,700 9852159D
18,730
ARKANSAS - 0.9%
Arkansas Student Loan Auth. Rev. Bonds
Series B-2, 2.50%, LOC Bayerische
Landesbank, VRDN (b) 1,900 1,900 041150CG
Blythville Ind. Dev. Rev. (Arkansas Steel Processing Proj.)
Series 1992, 2.80%, LOC Banque Luxembourg &
Credit Agricole, VRDN (b) 9,500 9,500 096490BR
Clark County Solid Waste Disp. Rev.
(Reynolds Metals Co. Proj.), 2.50%,
LOC Trust Co. Bank of Georgia, VRDN (b) 2,000 2,000 18069MAA
Harrison Ind. Dev. Rev. (Rock-Tenn Converting Co. Proj.)
Series 1993, 2.60%, LOC Trust Co. Bank of
Georgia, VRDN (b) 2,500 2,500 414855BY
Magnolia Ind. Dev. Rev. (American Fuel Cell & Coated
Fabric Co.) 2.55%, LOC Barclays Bank, VRDN (b) 3,450 3,450 559558AA
19,350
CALIFORNIA - 7.8%
California Gen. Oblig. RAN, 3.50% 6/25/94 35,000 35,063 130619D4
Fremont Unified School Dist. Alameda County
TRAN 3.50% 8/8/94 9,900 9,919 357154H5
Oakland TRAN 3.50% 8/15/94 10,000 10,020 672240FR
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
CALIFORNIA - CONTINUED
Orange County Apt. Dev. Rev., VRDN:
(Hidden Hills Apts.) Issue 1985 U, Series C, 3%,
LOC Tokai Bank $ 1,000 $ 1,000 684209JM
(Niguel Summit I) Issue 1985 U, Series A, 3%,
LOC Tokai Bank 11,600 11,600 684209JK
Orange Unified School Dist. TRAN 3.25% 7/26/94 10,000 10,016 684133KA
Sacramento County Hsg. Auth. Multi-Family Hsg. Rev.
Rfdg. (Bradshaw Courte Apts.) Series 1988 B, 3%,
LOC Tokai Bank Ltd., VRDN 2,800 2,800 786111CL
Sacramento County TRAN, 3% 7/29/94 23,500 23,514 786106DM
San Bernadino County Multi-Family Hsg. Rev.,
(Brookside Meadows Proj.) Series A, 3.10%,
LOC Tokai Bank, VRDN 5,500 5,500 79683FBY
San Diego Unified School Dist. TRAN
Series 1993-94 A, 3.50% 8/10/94 9,000 9,019 797355HH
San Francisco City and County Multi-Family Redev. Agcy.
Rev. (St. Francis Place Proj.) Series 1989 A, 3.25%,
LOC Mitsubishi Trust & Banking, VRDN 13,300 13,300 79771MAM
San Luis Coastal Unified School Dist. TRAN 3.25%
7/28/94 3,200 3,202 798546AH
San Luis Obispo County TRAN 3.25% 7/14/94 8,000 8,013 798679CG
San Mateo County TRAN Series 1993-94,
3% 6/30/94 10,000 10,004 799034AB
Tustin, Orange County Impt. Rev., VT:
Assessment Dist. #85-1, 3.30% 3/2/94,
LOC Mitsubishi Trust & Banking 3,703 3,703 901991MR
Assessment Dist. #86-2, 3.20% 3/1/94,
LOC Tokai Bank 3,600 3,600 901991MQ
Assessment Dist. #86-2, 3.30% 3/2/94,
LOC Tokai Bank 5,050 5,050 901991MS
165,323
COLORADO - 10.1%
Arapahoe County Cap. Impt. Trust Fund Hwy. Rev.
(E-470 Proj.), OT:
Series D, 2.85% 2/28/94,
LOC Union Bank of Switzerland 20,000 20,000 03866EAD
Series 1986 M, 2.90% 8/31/94 31,180 31,180 03866EAN
Colorado State Gen. Fund TRAN 3.25% 6/27/94 40,325 40,385 196729AD
Colorado Student Oblig. Bond Auth. Rev.
(Student Loan Prog.) Series 1990 A, 2.60%,
LOC Sumitomo Bank Ltd., VRDN (b) 8,800 8,800 196777FL
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
COLORADO - CONTINUED
Denver City & County Arpt. Sys. Rev., VRDN: (b)
Series 1992 D, 2.65%,
LOC Morgan Guaranty Trust Co. $ 21,000 $ 21,00 249181KU0
Series 1992 F, 2.70%, LOC Bank of Montreal 5,000 5,000 249181KW
Series 1992 G, 2.65%, LOC Credit Local DeFrance 8,500 8,500 249181KX
Denver County Arpt. Sys. Subordinate Rev., VT: (b)
Series 1990 B, 2.70% 5/12/94,
LOC Sumitomo Trust & Banking, Sumitomo Bank 8,780 8,780 249999BS
Series 1990 C, 2.70% 5/12/94,
LOC Sumitomo Trust & Banking, Sumitomo Bank 20,000 20,000 249999BR
Series 1990 D, 2.70 5/11/94,
LOC Sumitomo Trust & Banking, Sumitomo Bank 8,000 8,000 249999BQ
Series 1990 E:
2.50% 3/29/94,
LOC Sumitomo Trust & Banking, Sanwa Bank 17,400 17,400 249999BP
2.50% 4/13/94,
LOC Sumitomo Trust & Banking, Sanwa Bank 4,200 4,200 249999BN
Denver County Urban Renewal Auth. Tax Increment Rev.
(Urban Renewal Proj.) Series 1989 A, 2.90%
3/17/94, MT (b) 10,130 10,130 249301AA
Jefferson County School Dist. #R-1 Gen. Oblig. Tender Option
Ctfs. Series 35A, 2.60%, (Liquidity Enhancement
Bankers Trust), VRDN (c) 3,025 3,025 472736YA
Monte Vista Ltd. Oblig. Swr. Rev., Series 1992, 3%,
LOC Wachovia Bank & Trust, VRDN (b) 2,850 2,850 612258AA
Wheat Ridge County Ind. Dev. Rev.
(Adolph Coors Co. Proj.), Series 1993, 2.75%,
LOC Wachovia Bank of Georgia, VRDN (b) 4,000 4,000 962900AG
213,250
DELAWARE - 0.5%
Delaware Hsg. Auth. Puttable Floating Option Tax Exempt
Receipts Series PA-39, 2.65%, (Liquidity Enhancement
Merrill Lynch) VRDN (c) 10,800 10,800 246394M5
DISTRICT OF COLUMBIA - 0.5%
Dist. of Columbia Hsg. Fin. Auth. Multi-Family Hsg.
Rev. Rfdg., Series 1991, 2.65%,
LOC Bank One, VRDN (b) 11,350 11,350 254768KZ
FLORIDA - 4.6%
Banc One Corp. Tax-Exempt. Trust Ctfs. of Prtn.
Series 1991 A, Dade County Hsg. Fin. Corp.
Single Family Mtg. Rev., 2.80%, (Liquidity Enhancement
Bank One) VRDN (b) (c) 16,120 16,120 05944CAB
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
FLORIDA - CONTINUED
Broward County Ind. Dev. Auth. Rev. Rfdg.
(Goldline Lab., Inc. Proj.) Series 1989 B, 2.60%,
LOC Barnett Bank, VRDN (b) $ 639 $ 639 115034BB
Collier County Wtr. & Swr. Ind. Dev. Rev. Series 1990
(Marco Island Util. Proj.) 2.60%
LOC Sun Bank, VRDN (b) 2,500 2,500 19464TAA
Dade County Ind. Dev. Rev., VRDN: (b)
(Guastafeste Proj.) Series 1987, 2.60%,
LOC Sun Bank 2,000 2,000 233905BN
(Montenay-Dade Ltd. Proj.) Series 1990 A, 2.55%,
LOC Banque Paribas 19,500 19,500 233561AB
Dade County Multi-Family Hsg. Rev.
(Biscayne View Apts. Proj.) Series 1993, 2.80%,
BPA Commonwealth Life Ins. Co., VRDN (b) 12,000 12,000 233911HX
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev.
(Players Club) Series 1991 C, 2.56%,
LOC Sumitomo Trust, VRDN 3,960 3,960 3407376B
Hillsborough County Ind. Dev. Rev. (Vigo Importing Proj.)
2.75%, LOC NCNB Nat'l. Bank of Florida, VRDN (b) 2,000 2,000 432321BV
Indian Trace Cmmty. Dev. Dist. (Broward County Basin I
Wtr. Mgmt.) Series 1991, 3.30% 3/2/94,
LOC Tokai Bank, VT 3,000 3,000 227994PA
Martin County Ind. Dev. Auth. Ind. Dev. Rev.
(Indiantown Cogeneration Proj.) Series 1992 A, 2.55%,
LOC Credit Suisse, VRDN (b) 10,500 10,500 573904AF
NCNB Tax-Exempt Trust Ctfs., Series 1989 A, 3%,
LOC NationsBank, VRDN (b) (c) 7,779 7,779 628999AA
Okeechobee County Solid Wst. Rev. (Chambers Wst. Sys.)
Series 1992, 2.75%, LOC NationsBank, VRDN (b) 11,000 11,000 678438AA
Orange County Hsg. Fin. Auth. Rev. (Heather Glen Proj.)
2.50%, LOC Fed. Home Loan Bank, VRDN 600 600 33581JAA
Sarasota County School Board Fing. Corp. Lease Rev.
Rfdg. Bonds, Series 1993, 3.25% 7/1/94,
(MBIA Insured) 5,795 5,800 80330MAT
97,398
GEORGIA - 2.4%
Cartersville Dev. Auth. Ind. Dev. Rev. (Sekisui Jushi
America, Inc.) Series 1992, 2.65%,
LOC Sanwa Bank, VRDN (b) 4,100 4,100 146456AT
Floyd Co. Dev. Auth. Ind. Dev. Rev.
(Marglen Ind. Inc. Proj.), 2.60%,
LOC Trust Co. Bank of Georgia, VRDN (b) 3,000 3,000 343569BT
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
GEORGIA - CONTINUED
Georgia Hsg. & Fin. Auth. Rev.
(Home Ownership Opportunity Prog.)
Series 1992 B, 2.55%, VRDN (b) $ 21,500 $ 21,500 373538CJ
Georgia Port Auth. Rev. (Mayor's Point Terminal)
Series 1992, 2.60%, LOC Trust Co. Bank of
Georgia, VRDN (b) 5,300 5,300 373586FD
Greene County Ind. Dev. Rev. (Chipman-Union Inc. Proj.)
Series 1991, 2.60%, LOC Trust Co. Bank of
Georgia, VRDN (b) 2,000 2,000 394375AA
Pierce County Ind. Dev. & Bldg. Auth. Rev.
(American Egg Prods. Inc. Proj.) Series 1989, 2.60%,
LOC Barclays Bank, VRDN (b) 1,760 1,760 720346AA
Rockdale County Ind. Dev. Rev. (Takahashi Works USA)
Series 1990, 2.60%, LOC Sanwa Bank, VRDN (b) 2,575 2,575 773006AB
Savannah Port Authority (Pier 1 Imports Inc. Proj.) 2.60%,
LOC Nat'l. Westminster, VRDN (b) 4,200 4,200 804865AL
Worth County Ind. Dev. Auth. Rev. (Seabrook Ent. Proj.)
Series 1991, 2.50%, LOC Barclays Bank, VRDN (b) 5,000 5,000 981648AC
49,435
IDAHO - 0.2%
Idaho TAN, Series 1993, 3% 6/30/94 3,500 3,502 451434AX
ILLINOIS - 3.1%
Chicago O'Hare Int'l Arpt. Rev.,VRDN:
(American Airlines) Series 1984 D, 2.50%,
LOC Long-Term Cr. Bank of Japan 5,000 5,000 167590AM
(Northwest Orient Airlines), 2.80%,
LOC Mitsubishi Bank (b) 700 700 167590AR
Series 1988 A, 2.65%, LOC Sanwa Bank (b) 9,200 9,200 167592FK
Chicago Park Dist. Gen. Oblig. Corp. TAN
3.25% 10/1/94 7,500 7,519 167610VV
Illinois Dev. Fin. Auth. Adj. Rate Ind. Dev. Rev.
(FC Ltd. Partnership), 2.70%,
LOC Lasalle Nat'l. Bank, VRDN (b) 3,710 3,710 451887ND
Illinois Dev. Fin. Auth. Ind. Dev. Rev.
(Rich Products Corp. Proj.) Series 1993, 2.60%,
LOC Trust Co. Bank of Georgia, VRDN (b) 7,000 7,000 451887PW
Illinois Dev. Fin. Auth. Rev., VRDN: (b)
(Belmont Steel Proj.) Series 1991, 2.80%,
LOC Manufacturers Nat'l. Bank of Detroit 4,600 4,600 451887NE
(R.S. Anderson Co. Proj.) 2.65%,
LOC Comerica Bank 1,400 1,400 451907AC
Illinois Gen. Oblig. TRAN 3.50% 6/15/94 15,000 15,022 452148NY
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
ILLINOIS - CONTINUED
Illinois Ind. Dev. Fin. Auth. Ind. Dev. Rev.
(Eakas Corp. Proj.) Series 1989, 2.80%,
LOC Bank of Tokyo, VRDN (b) $ 8,000 $ 8,000 451887GS
St. Charles Ind. Dev. Rev. (Pier 1 Imports-Midwest,
Inc. Proj.) Series 1986, 2.60%
LOC Nat'l. Westminster Bank, VRDN (b) 2,100 2,100 78776HAC
Southwestern Dev. Auth. Solid Waste Disp. Rev.
(Shell Oil Co., Wood River Proj.)
Series 1992, 2.45%, VRDN (b) 1,500 1,500 84552KAN
65,751
INDIANA - 0.9%
Indiana Hosp. Equip. Fing. Auth. Rev.
Series 1985 A, 2.30%, (MBIA Insured)
BPA Bank of New York, VRDN 3,845 3,845 454800AF
Jeffersonville Econ. Dev. Rev. (Apollo America Corp.)
Series 1991, 3.35%, LOC Tokai Bank, VRDN (b) 7,000 7,000 475638AQ
Lebanon Econ. Dev. Rev. (White Castle Sys. Inc. Proj.)
2.70%, LOC Bank One, VRDN (b) 2,270 2,270 522509AX
Ligonier Econ. Dev. Rev. (Sharon Manufacturing Co.),
2.70%, LOC Nat'l Bank of Detroit, VRDN (b) 4,900 4,900 532278AC
18,015
IOWA - 1.4%
Clinton Ind. Dev. Rev. (Sethness Products Co. Proj.)
2.70%, LOC Northern Trust Corp.,VRDN (b) 4,200 4,200 187774CA
Iowa Fin. Auth. Ind. Dev. Rev. (Mcwane Inc. Proj.)
Series 1992, 2.75%, LOC Amsouth Bank, VRDN (b) 6,000 6,000 46246HCF
Iowa Student Loan Liquidity Corp. Rev., Series B, 2.60%,
(AMBAC Insured), SBPA Norwest Bank, VRDN (b) 19,500 19,500 462590AY
29,700
KENTUCKY - 0.5%
Cynthiana Ind. Dev. Rev. (E.D. Bullard Co. Proj.), 2.75%,
LOC NationsBank, VRDN (b) 1,500 1,500 232605AA
Daviess County Multi-Family Hsg. Rev. Rfdg.
(Park Regency Apts. Proj.) 2.80%,
LOC Sumitomo Trust & Banking,
Sumitomo Bank, VRDN (b) 4,155 4,155 23871GAA
Daviess County Solid Waste Disp. Facs. Rev.
(Scott Paper Co. Proj.) Series 1993 A, 2.45%,
LOC Morgan Guaranty Trust Co., VRDN 1,500 1,500 238753AA
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
KENTUCKY - CONTINUED
Kentucky Hsg. Corp. Hsg. Rev. Series 1993 D,
2.75% 4/28/94, MT (b) $ 3,500 $ 3,500 491308TT
10,655
LOUISIANA - 2.0%
Lake Charles Harbor and Terminal Dist. Port Impt. Rev.,
2.65%, LOC Nat'l Westminster Bank, VRDN (b) 23,000 23,000 507739AE
Louisiana Hsg. Fin. Auth. Single Family Mtg. Rev.,
Series 1992 B, 2.92% 6/2/94, MT (b) 19,000 19,000 546265XQ
42,000
MAINE - 0.4%
Eastport Ind. Dev. Rev. (Passamaquoddy Tribe Fibre
Extrusion Proj.) Series 1992, 2.60%,
LOC Nat'l. Bank of Detroit, VRDN (b) 4,860 4,860 277789AK
Maine Fin. Auth. Econ. Dev. Rev., VRDN: (b)
Series 1992 A, 2.70%, LOC Sumitomo Bank 1,770 1,770 560416AW
Series 1992 C, 2.70%, LOC Sumitomo Bank 840 840 560416AV
Series 1992 D, 2.70%, LOC Sumitomo Bank 720 720 560416AU
8,190
MARYLAND - 3.9%
Baltimore Econ. Dev. Rev. (Rock-Tenn Converting Co.)
Series 1987, 2.60%, LOC Trust Co. of Georgia,
VRDN (b) 1,755 1,755 059215AU
Maryland Cmmty. Dev. Admin. Dept. Hsg. & Cmmty. Dev.
(Single Family Prog. 1993), MT: (b)
Series 2, 2.80% 6/15/94 7,000 7,000 57419H2G
Series 4, 2.90% 11/2/94 8,500 8,500 57419H2E
Maryland Gen. Oblig. Tender Option Ctfs.
(Local Facs. Loan Third Series 1993)
Series F, 2.40% 4/15/94,
(Liquidity Enhancement Sumitomo Bank) (c) 37,500 37,500 574192DP
Montgomery County Hsg. Opportunities Commission
(Draper Lane Apts.) 2.65%, (FGIC Insured),
SBPA Sumitomo Bank, VRDN (b) 7,800 7,800 613344JP
Montgomery County Hsg. Opportunities Commission
Multi-Family Hsg. Rev. (Oakwood-Gaithersburg)
Series 1991 A, 2.90% 11/1/94, MT 7,420 7,420 61334MAR
Montgomery County Hsg. Opportunities Commission
Single Family Mtg. Rev., Series 1993 B, 2.85%,
11/1/94, MT 10,000 10,000 613349RZ
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
MARYLAND - CONTINUED
Prince George's County Ind. Dev. Rev.
(Cintas Corp. #41 Proj.), 2.65%,
LOC Central Trust & Pittsburgh Nat'l. Bank,
VRDN (b) $ 2,750 $ 2,750 741707CY
82,725
MASSACHUSETTS - 1.0%
Massachusetts Gen. Oblig. Tender Option Ctfs.
Series E, 2.55%, (Liquidity Enhancement Dai-ichi
Kangyo Bank), VRDN (c) 21,000 21,000 575826DV
MICHIGAN - 0.6%
Flint Hosp. Bldg. Auth. Rev. (Hurley Med. Ctr.)
Series 1985, 2.40%, LOC Comerica Bank, VRDN 800 800 339509BD
Michigan Higher Ed. Student Loan Auth. Rev.,
Series XII-D, 2.40%, (AMBAC Insured)
BPA Fuji Bank, VRDN (b) 5,000 5,000 594520CR
Michigan Hsg. Dev. Auth. Multi-Family Hsg. Rev.
Series 1988 A, 2.60% 4/20/94,
LOC Sanwa Bank, VT (b) 3,000 3,000 598995CT
Michigan Strategic Fund Ltd. Oblig. Rev.
(Michigan Sugar Co. - Carrollton) 2.60%,
LOC Trust Co. Bank of Georgia, VRDN (b) 2,000 2,000 5946924F
Michigan Strategic Fund Solid Wst. Disp. Rev.
(Grayling Gen. Station Proj.) Series 1990, 2.40%,
LOC Barclays Bank, VRDN (b) 1,000 1,000 59469WAE
Rochester Hills Econ. Dev. Corp. Ltd. Oblig. Rev.
(Cardell Corp.) 2.60%, LOC Comerica Bank,
VRDN (b) 1,650 1,650 771381AC
13,450
MINNESOTA - 0.4%
Minnesota Hsg. Fin. Agency Single Family Mtg. Rev.
Series 1994 D, 3% 12/15/94, MT 7,620 7,620 60415H2T
MISSISSIPPI - 0.8%
Canton Ind. Dev. Auth. Rev. (McCarty Farms Proj.)
Series 1990, 2.60%, LOC Trust Co. Bank of
Georgia, VRDN (b) 5,700 5,700 138334AA
Desoto County Ind. Dev. Rev. (Flavorite Labs Proj.)
Series 1991 B, 2.75%, LOC First Tenn. Nat'l.
Corp., VRDN (b) 3,400 3,400 241553AB
Mississippi Business Fin. Corp. Ind. Dev. Rev.
(Pillowtex Corp. Proj.) Series 1992, 2.75%,
LOC NationsBank, VRDN (b) 4,600 4,600 605275BB
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
MISSISSIPPI - CONTINUED
Noxubee County Ind. Dev. Board Rev.
(Barge Forest Products Co. Proj.) 3.125%,
LOC Amsouth Bank, VRDN (b) $ 3,965 $ 3,965 670171AA
17,665
MISSOURI - 2.7%
Berkeley Ind. Dev. Auth. Tax Exempt Fac. Rev.
(St. Louis Air Cargo Svcs. Proj.) 2.70%,
LOC Sumitomo Bank, VRDN (b) 7,800 7,800 084351AA
Missouri Higher Ed. Loan Auth. Student Loan Rev., VRDN: (b)
Series 1988 A, 2.55%,
LOC Dai-Ichi Kangyo Bank Ltd. 3,300 3,300 606072AR
Series 1990 A, 2.55%, LOC Nat'l. Westminster 2,400 2,400 606072AT
Series 1990 B, 2.55%, LOC Nat'l. Westminster 12,600 12,600 606072AU
Series 1991 B, 2.55%, (MBIA Insured),
SBPA NMB Postbank 30,000 30,000 606072BG
56,100
NEVADA - 3.1%
Clark County Ind. Dev. Rev. (Nevada Pwr. Co. Proj.)
Series 1989 A, 3.10%, LOC Citibank, VRDN (b) 39,200 39,200 181004AG
Henderson Pub. Impt. Trust Multi-Family Hsg.
(Victory Village Proj.) 3.20% 3/8/94, MT (b) 15,000 15,000 425209BF
Las Vegas Local Impt. Bond Updates Spl. Impt.
Dist. # 404 (Summerlin Area) 3.30% 3/2/94,
LOC Tokai Bank, VT 1,300 1,300 517991BX
Nevada Hsg. Division Multi-Family Hsg. Rev,
Series 1991 2-B, 2.75%,
LOC Fed. Home Loan Bank, VRDN (b) 6,100 6,100 33581JAB
Washoe County Gas Fac. Rev. (Sierra Pacific Pwr. Co.)
Series 1990, 2.40% 3/30/94,
LOC Union Bank of Switzerland, VT (b) 2,990 2,990 9408659N
64,590
NEW HAMPSHIRE - 0.6%
New Hampshire Higher Ed. & Health Facs. Auth. Rev.
(Dartmouth College) Series 1993, 2.75%
6/1/94, MT (b) 3,250 3,250 644618K9
New Hampshire Hsg. Fin. Auth. Multi-Family
Hsg. Rev. Rfdg. (Nashua-Oxford Proj.)
Series 1990, 2.65%, VRDN 1,100 1,100 644686RM
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
NEW HAMPSHIRE - CONTINUED
New Hampshire Hsg. Fin. Auth. Single Family
Residential Mtg. Rev., Series 1993 C, 2.80%
6/30/94, MT (b) $ 8,600 $ 8,600 644686YT
12,950
NEW JERSEY - 1.7%
New Jersey Gen. Obig. TRAN 3% 6/15/94 35,700 35,727 646038ZU
NEW MEXICO - 1.2%
New Mexico Ed. Assistance Foundation
Student Loan Rev., VRDN: (b)
Series 1992 B, 2.45%, (AMBAC Insured)
BPA Internationale Nederlanden Bank 400 400 647111AJ
Series I, 2.50%, 24,100 24,100 647111BL
24,500
NORTH CAROLINA - 1.0%
Bladen County Ind. Fac. & Poll. Cont. Fin. Auth.
(BCH Energy Ltd. Partner), 2.60%,
LOC Bank of Tokyo, VRDN 6,200 6,200 092661AA
Piedmont Triad Arpt. Auth. Spl. Facs. Rev.
(Triad Int'l. Maintenance Corp. Proj.)
Series 1989, 2.70%, LOC Mellon Bank, VRDN (b) 10,500 10,500 720251AA
Richmond County Ind. Dev. Rev. (Bibb Co. Proj.)
Series 1991, 2.60%, LOC Citibank, VRDN (b) 5,000 5,000 764644AA
21,700
OHIO - 3.7%
Cleveland Public Pwr. Sys. Rev. BAN,
Series 1993 B, 3.50% 8/1/94 6,000 6,010 186398BW
Dayton Spl. Facs. Rev. Rfdg.
(Emery Air Freight Corp. Proj.) Series 1988 D, 2.40%,
LOC Mellon Bank, VRDN (b) 10,500 10,500 239874AF
Ohio Wtr. Dev. Auth. Poll. Cont. Rev. VT: (b)
(Cleveland Elec. Proj.):
Series 1988 A-1:
2.45% 3/7/94, LOC Citibank 5,000 5,000 679997SM
2.50% 3/7/94, LOC Citibank 2,000 2,000 679997SG
2.60% 4/16/94, LOC Citibank 10,600 10,600 679997SP
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
OHIO - CONTINUED
Ohio Wtr. Dev. Auth. Poll. Cont. Rev., VT: (b) - continued
(Cleveland Elec. Proj.): - continued
Series 1988 A-2:
2.45% 3/7/94, LOC Citibank $ 5,000 $ 5,000 679997SN
2.50% 3/7/94, LOC Citibank 11,000 11,000 679997SH
(Duquesne Light Co. Proj.) 2.40% 3/30/94,
LOC Toronto-Dominion Bank 6,950 6,950 679997SD
(Toledo Edison Co. Proj.) Series 1988 A:
2.45% 3/7/94, LOC Citibank 1,865 1,865 679997SL
2.50% 3/7/94, LOC Citibank 7,235 7,235 679997SF
2.60% 4/19/94 LOC Citibank 10,090 10,090 679997SQ
Student Loan Funding Corp. Rev., Series 1990 A-3,
2.35%, LOC Nat'l. Westminster, VRDN (b) 2,000 2,000 863869AR
78,250
OKLAHOMA - 0.4%
Southeastern Ind. Auth. Solid Wst. Disp. Rev.
(Weyerhaeuser Co. Proj.) 2.66%, VRDN (b) 9,000 9,000 841898AB
OREGON - 1.5%
Klamath Falls Elec. Rev. (Salt Caves Hydroelectric Proj.)
Series A, 4.75% 5/01/94, MT 21,000 21,073 498409AF
Oregon Econ. Dev. Dept. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) Series CL, 2.65%, VRDN (b) 3,000 3,000
68606DAA
Portland Econ. Dev. Rev. (Columbia Aluminum Recycling)
2.55%, LOC U.S. Bank of Oregon, VRDN (b) 3,550 3,550 736690AC
Port Umatilla Ltd. Oblig. Rev. (Hermiston Food Proj.)
Series 1989, 2.80%, LOC U.S. Nat'l. Bank of
Oregon, VRDN (b) 4,900 4,900 735514AA
32,523
PENNSYLVANIA - 5.0%
Butler County Ind. Dev. Rev. (JSM Acquisition Corp. Proj.)
Series 1989 A, 2.65%, LOC Pittsburgh Nat'l. Bank,
VRDN (b) 2,200 2,200 123601AM
Carbon County Ind. Dev. Auth. Resource Recovery Rev.
(Panther Creek Partners Proj.), VT: (b)
Series B:
2.40% 3/29/94, LOC Nat'l Westminster 1,210 1,210 140991EN
2.65% 5/9/94, LOC Nat'l Westminster 5,000 5,000 140991ES
Series 1991 A:
2.50% 4/7/94, LOC Nat'l Westminster 1,400 1,400 140991EK
2.65% 5/9/94, LOC Nat'l Westminster 8,075 8,075 140991ER
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
PENNSYLVANIA - CONTINUED
Delaware County Ind. Dev. Auth. (Philadelphia Electric)
Series A, 2.60% 3/10/94,
(Liquidity Enhancement FGIC), VT $ 4,200 $ 4,200 246991PE
Delaware Valley Regional Fin. Auth. Local Gov't. Rev.
Series 1986, 2.55%, LOC Marine Midland Bank,
VRDN 1,800 1,800 246579AJ
Erie County Ind. Dev. Auth. Rev. (Carlisle Corp. Proj.)
Series 1993, 2.60%, LOC Trust Co. of Georgia,
VRDN (b) 1,500 1,500 295206HY
Northumberland County Ind. Dev. Board Rev.
(Foster Wheeler Mt. Carmel Proj.), VRDN: (b)
Series 1987 A, 2.60%,
LOC Union Bank of Switzerland 6,100 6,100 66707MAA
Series 1987 B, 2.60%,
LOC Union Bank of Switzerland 1,200 1,200 66707MAB
Pennsylvania Econ. Dev. Fin. Auth. Rev, VRDN: (b)
(BPS Dev. Proj.) Series 1989 D-3, 2.65%,
LOC Pittsburgh Nat'l. Bank 250 250 708684AY
(C&D Charter Pwr. Sys.) Series 1991 D-6, 2.65%,
LOC Pittsburgh Nat'l. Bank 1,400 1,400 708684EM
(Corry Laser Technology Proj.) Series 1989 D-5,
2.65%, Pittsburgh Nat'l. Bank 200 200 708684AM
(Johnstown Corp. Proj.) 2.65%,
LOC Pittsburgh Nat'l. Bank 690 690 708688AF
Pennsylvania Econ. Dev. Fin. Auth. Solid Waste Disp. Rev.
(Inter-Pwr./Ahlcon Partnership Proj.) Series 1992 A, VT: (b)
2.40% 4/13/94, LOC Banque Paribas 8,000 8,000 7086929R
2.85% 8/15/94, LOC Banque Paribas 1,500 1,500 7086929V
Pennsylvania Higher Ed. Assistance Agcy.
(Student Loan) Series 1988 A, 2.65%,
LOC Fuji Bank, VRDN (b) 4,800 4,800 709163AF
Philadelphia Ind. Dev. Auth. Commercial Dev. Rev.
(Airport Hotel Proj.) Series 1990, 2.60%
LOC Citibank, VRDN (b) 11,000 11,000 717818ML
Philadelphia School Dist. TRAN, Series 1993-94,
3.625% 6/30/94 28,000 28,056 717880E5
Philadelphia TRAN, Series D, 3.25% 6/15/94,
LOC Pittsburgh Nat'l. Bank 11,000 11,015 717811WT
Venango Ind. Dev. Auth. Resource Recovery Rev.
(Scrubgrass Proj.) Series 1990 B, 2.60% 5/11/94,
LOC Nat'l Westminster Bank, VT (b) 4,900 4,900 92299BBS
104,496
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
RHODE ISLAND - 0.7%
Cranston Gen. Oblig. BAN, 3.40% 7/15/94 $ 5,000 $ 5,007 2245612P
Providence Pub. Parking (Washington Street Garage Proj.)
Series 1991, 2.50%, LOC Credit Suisse, VRDN (b) 3,000 3,000 743806AC
Rhode Island Gen. Oblig. TAN 3.25% 6/30/94 7,500 7,509 762221WC
15,516
SOUTH CAROLINA - 1.6%
Laurens County Tax Exempt Adj. Mode Ind. Dev. Bond
(Teknor Apex Carolina Proj.) 2.55%,
LOC Wachovia Bank & Trust, VRDN (b) 5,000 5,000 519073AY
South Carolina Jobs Econ Dev. Auth. Rev., VRDN:
(Jackson Mills Inc. Proj.) Series 1988 C, 2.60%,
LOC Trust Co. of Georgia (b) 3,375 3,375 837031AS
(Peace Textile America Proj. 1992), 2.75%,
LOC NationsBank (b) 2,000 2,000 837031CG
(Wellman Inc. Proj.) Series 1990, 2.30%,
LOC Wachovia Bank & Trust (b) 2,400 2,400 837031BP
(Zeuna Staerker USA Inc. Proj.) Series 1993, 2.70%,
LOC Bayerische Landesbank 4,700 4,700 837031DC
South Carolina Jobs Econ Dev. Auth. Tax Exempt Adj. Mode
(Wellman Inc. Proj.) 2.55%, LOC Wachovia
Bank & Trust, VRDN (b) 4,500 4,500 837034AS
South Carolina Port Auth. Jr Lien, 2.60%,
LOC South Carolina Nat'l Bank, VRDN (b) 6,500 6,500 837123DH
Spartanburg County Tax Exempt Adj. Mode Ind. Dev.
Rev. (Prym-Dritz Corp. Proj.) 2.55%,
LOC Wachovia Bank & Trust, VRDN (b) 4,500 4,500 846863GR
32,975
SOUTH DAKOTA - 0.4%
South Dakota Student Loan Assistance Corp.
Student Loan Rev. Series A, 2.50%, VRDN 8,000 8,000 837564FB
TENNESSEE - 2.4%
Anderson Ind. Dev. Board (Becromal of America Proj.)
Series 1988, 2.60%, LOC Credito Italiano, VRDN (b) 2,000 2,000 033795DC
Carter County Ind. Dev. Board Multi-Family Hsg. Rev.
Rfdg. (Willow Run Apts.) Series 1990, 2.80%,
LOC Sumitomo Trust & Banking, Sumitomo Bank,
VRDN (b) 6,675 6,675 146217AA
Claiborne County Ind. Dev. Rev. (Royal Sterilization System)
2.75%, LOC First Tennessee Nat'l. Corp., VRDN (b) 3,800 3,800 179472AB
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
TENNESSEE - CONTINUED
Cookeville Econ. Dev. Rev. (Mill Business Furniture Inc. Proj.)
2.65%, LOC Credit Commercial de France, VRDN (b) $ 1,250 $ 1,250 216314AA
Dickson County Ind. Dev. Rev. (IMAC Corporation Proj.)
Series 1992, 2.75%, LOC Credit Lyonnais, VRDN (b) 6,000 6,000 253447DJ
Hamilton County Ind. Dev. Rev. Multi-Family Hsg.
(Waterford Place Apts. Proj.) Series 1987, 3.20%,
LOC Marine Midland Bank, VRDN (b) 10,300 10,300 407339AH
Memphis Gen. Oblig. Arpt. Rev., Series 1987 D, 2.65%,
LOC Industrial Bank of Japan, VRDN (b) 8,600 8,600 586144AQ
Memphis Ind. Dev. Rev. (Techno Steel Corp.)
Series 1989, 2.70%, LOC Mitsui Bank, VRDN (b) 4,000 4,000 586120BJ
Metropolitan Nashville & Davidson County Ind. Dev. Board
Multi-Family Hsg. Rev. Rfdg. (Amberwood Proj.), MT:
Series 1993 A, 3% 7/1/94, LOC First Bank 2,000 2,000 592065L9
Series 1993 B, 3% 7/1/94, LOC First Bank 2,000 2,000 592065M2
Morristown Ind. Rev. (Tuff Torq Corp. Proj.) Series 1989,
2.65%, LOC Bank of Tokyo, VRDN (b) 3,750 3,750 618668AC
Trenton Ind. Dev. Rev. (Dyersburg Fabrics Inc.) Series 1990,
2.60%, LOC Trust Co. of Georgia, VRDN (b) 1,050 1,050 895261AC
51,425
TEXAS - 12.1%
Bank One Corp. Tax-Exempt Trust Ctfs. of Prtn. Series 1991 C,
Southeast Hsg. Finance Corp. Single Family Mtg., 2.80%,
(Liquidity Enhancement Bank One), VRDN (b) (c) 10,170 10,170 05944CAC
Brazos Higher Ed. Auth. Student Loan Rev.,
Series 1993 B-1, 2.8% 6/1/94 LOC Student Loan
Mktg. Assoc., MT (b) 16,400 16,400 106238DK
Brazos River Harbor Navigation Dist. of Brazoria County Rev.
(Dow Chemical), VT: (b)
Series 1988:
2.40% 3/7/94 6,900 6,900 106991AS
2.30% 3/8/94 5,000 5,000 106991AT
2.40% 3/30/94 4,000 4,000 106991AU
2.60% 5/11/94 6,400 6,40 106991AV0
Series 1992:
2.30% 3/7/94 4,000 4,000 10599DAB
2.40% 3/8/94 5,660 5,660 10599DAA
2.35% 3/11/94 4,590 4,590 10599DAD
2.70% 5/10/94 5,450 5,450 10599DAC
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
TEXAS - CONTINUED
Brownsville Ind. Dev. Corp. Rev. (Rich-Seapak Corp. Proj.)
Series 1992, 2.60%, LOC Trust Co. Bank of Georgia,
VRDN (b) $ 8,500 $ 8,500 116431AA
Central Hsg. Fin. Corp. Single Family Mtg. Rev. Rfdg.
Series 1993 C 3.038% 9/1/94, MT (b) 11,640 11,640 155490DY
Cleburne Ind. Dev. Rev. (Southwestern Analytical
Chemical Proj.) 2.90%, LOC Nat'l. City Bank,
VRDN (b) 3,075 3,075 185495AA
Denton County Ind. Dev. Rev. (Hydro Conduit Corp.)
2.75%, LOC Union Bank of Switzerland, VRDN (b) 6,900 6,900 248752AA
Greater East Texas Higher Ed. Auth. Student Loan Rev.:
Series 1988 A, 2.55%, (AMBAC Insured)
SBPA Citibank VRDN (b) 34,400 34,400 391693AJ
MT: (b)
Series 1991 A:
5.10% 5/1/92, LOC Student Loan Mktg. Assoc. 8,000 8,000 391693AM
2.80% 7/1/94, LOC Student Loan Mktg. Assoc. 4,000 4,000 391693AL
Series 1992 B:
Rfdg., 2.75% 5/1/94,
LOC Student Loan Mktg. Assoc. 4,200 4,200 391693AT
2.80% 7/1/94, LOC Student Loan Mktg. Assoc. 7,000 7,000 391693AQ
Series 1993 B, 2.75% 6/1/94, LOC Student
Loan Mktg. Assoc. 12,500 12,500 391693AX
Gulf Coast Waste Disp. Auth. Solid Waste Disp. Rev.
(Amoco Oil Co. Proj.) Series 1991, 2.75%
4/1/94, MT (b) 4,600 4,600 402231AD
Heart of Texas Hsg. Fin. Corp. Single Family Mtg. Rev.
Rfdg., Series 1993 A, 3.038% 9/1/94, MT (b) 4,000 4,000 422337BQ
North Texas Higher Ed. Student Loan Rev., VRDN: (b)
Series 1991 C, 2.55%, (AMBAC Insured),
BPA Student Loan Mktg. Assoc. 3,800 3,800 662826BR
Series 1991 F, 2.55%, (AMBAC Insured), BPA
Student Loan Mktg. Assoc. 5,200 5,200 662826BS
Series 1993 A, 2.55%, LOC Student Loan Mktg. Assoc. 5,500 5,500
662826CH
Northeast Texas Hsg. Fin. Corp. Single Family Mtg. Rev.
Rfdg., Series 1993 A, 3.038% 9/1/94, MT (b) 13,445 13,445 664375AD
Panhandle Plains Higher Ed. Auth. Student Loan Rev.,
Series A, 2.65% 4/1/94, LOC Student
Loan Mktg. Assoc., MT (b) 9,000 9,000 698476CA
Texas Gen. Oblig. TRAN 3.25% 8/31/94 15,700 15,737 882715V6
Texas Small Bus. Ind. Dev. Corp. Rev. (Pub. Facs. Prog.)
3.15%, LOC Mitsubishi Trust, Mitsubishi Bank,
Nat'l. Westminster Bank U.S., Sumitomo Trust, VRDN 20,195 20,195
882692AL
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
TEXAS - CONTINUED
Travis County Hsg. Fin. Corp. Multi-Family Hsg. Rev.
(Primecrest Ltd. Proj.), VRDN: (b)
Series 1990 A, 2.50%, LOC Algemene Bank $ 500 $ 500 894386EX
Series 1990 B, 2.50%, LOC Algemene Bank 1,200 1,200 894386EY
Waxahachie Ind. Dev. Auth. (Rock-Tenn Converting Co. Proj.)
Series 1986, 2.60%, LOC Trust Co. of Georgia,
VRDN (b) 1,950 1,950 944111AA
253,912
UTAH - 2.1%
Carbon County Solid Waste Disp. (Ease Carbon Proj.),
Series 1991, 3.05% 5/1/94, MT 16,680 16,680 140898AL
Davis County School Dist. TAN 3.25% 6/30/94 2,900 2,904 239019PL
Tooele County Waste Rev. (Union Pacific Corp. USPCI Proj.)
Series 1992 A, VT: (b)
2.35% 3/8/94 3,500 3,500 89099AAN
2.65% 4/20/94 16,490 16,490 89099AAQ
Utah County Ind. Dev. Rev. (McWane Inc. Proj.)
Series 1992, 2.75%, LOC Amsouth Bank, VRDN (b) 5,000 5,000 917394AB
44,574
VERMONT - 0.1%
Vermont Ind. Dev. Auth. Rev. (Ryegate Proj.)
Series 1990, 2.60%, LOC Algemene Bank, VRDN (b) 3,000 3,000 924199DF
VIRGINIA - 5.6%
Alexandria Ind. Dev. Auth. Adj. Tender Rev.
(Alexandria and Arlington Waste/Energy Fac. Proj.)
Series 1986 A, 2.35%, LOC Swiss Bank Corp.,
VRDN (b) 1,100 1,100 015312BT
Amelia County Facs. Rev. (Chambers Waste Sys. Proj.),
2.90%, LOC NationsBank, VRDN (b) 4,900 4,900 023444AA
Amherst Ind. Dev. Auth. Solid Waste Rev.
(Nekoosa Pkg. Proj.) 2.60%,
LOC Industrial Bank of Japan, VRDN (b) 2,750 2,750 031489BF
Campbell County Ind. Dev. Auth. Facs. Rev.
(Hadson Pwr. 12-Altavista Proj.) Series 1990 A, 2.30%,
LOC Barclays Bank PLC, VRDN (b) 1,400 1,400 134326AA
Halifax County Ind. Dev. Auth. Poll. Cont. Rev.
(Virginia Elec. Pwr. Co.) Series 1992, VT: (b)
2.45% 3/10/94 2,000 2,000 4057959W
2.45% 3/23/94 4,000 4,000 4057959Y
2.60% 4/7/94 9,100 9,100 4057959X
2.75% 4/19/94 20,000 20,000 405997AA
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
VIRGINIA - CONTINUED
Hampton Roads Sanitation Dist. Wastewtr.
Rfdg. & Cap. Impt. Series 1993, Tender Option
Custodial Receipts 2.65%, (Liquidity Enhancement
Bankers Trust Co.) VRDN (c) $ 6,505 $ 6,505 409327AX
Henrico County Ind. Dev. Auth. Rfdg. (San-J Int'l. Proj.)
Series 1988, 3.50%, LOC Tokai Bank, VRDN (b) 2,500 2,500 426063GE
Hopewell Ind. Dev. Auth. Rev. (Hadson Pwr. 13-Hopewell
Proj.) Series 1990 A, 2.30%, LOC Credit Suisse,
VRDN (b) 2,000 2,000 43971HAA
Richmond Ind. Dev. Auth. (I) Rev. (Cogentrix of
Richmond Inc. Proj.) Series 1990 A, 2.35%,
LOC Banque Paribas, VRDN (b) 1,800 1,800 765415KE
Richmond Ind. Dev. Auth. (II) Rev. (Cogentrix of
Richmond Inc. Proj.) Series 1991 A, 2.35%,
LOC Banque Paribas, VRDN (b) 1,600 1,600 765415KF
Richmond Redev. & Hsg. Auth. Rev. (Tobacco Row Proj.),
VRDN: (b)
Series 1989 B-1, 3% 8,600 8,60 765439AA0
Series 1989 B-2, 3% 3,000 3,000 765439AB
Series 1989 B-3, 3% 1,500 1,500 765439AC
Series 1989 B-7, 3% 4,950 4,950 765439AG
Virginia Beach Dev. Auth. Rfdg. Rev. (Ocean Ranch
Motel Corp. Proj.) Series 1993, 2.75%,
LOC NationsBank, VRDN 2,000 2,000 927743GK
Virginia Hsg. Dev. Auth. Mtg. (Commonwealth Mtg.), MT: (b)
Series C, 2.90% 11/4/94 6,030 6,030 9281295M
Series 1992 B-2, 2.95% 3/24/94 11,000 11,001 9281293S
Series 1993 E, 3.05% 8/10/94 20,000 20,004 9281296T
116,740
WASHINGTON - 4.7%
Grays Harbor Ind. Dev. Corp. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) 2.65%, VRDN (b) 9,650 9,650 734178AA
Klickitat County Pub. Corp. Ind. Dev. Rev.
(Rabanco Landfill Proj.) Series 1990, 2.75%,
LOC Bank of America, VRDN (b) 11,800 11,800 498614AA
Pierce County Econ Dev. Corp. Ind. Dev. Rev. VRDN: (b)
(Pacific N.W. Banking Co. Proj.) Series 1988, 2.55%,
LOC Barclays Bank 5,315 5,315 720360AR
(Pickering Ind.) Series 1990-1, 2.55%,
LOC Industrial Bank of Japan Ltd. 2,350 2,350 720360AU
Pierce County Ind. Rev. (America Nichirei Foods Corp.)
Series 1987, 3%, LOC Fuji Bank, VRDN (b) 6,500 6,500 720360AQ
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
WASHINGTON - CONTINUED
Port Angeles Ind. Dev. Corp. (Daishowa America Proj.)
VRDN: (b)
Series 1991, 2.65%,
LOC Industrial Bank of Japan $ 5,500 $ 5,500 73342MAA
Series 1992 B, 2.65%,
LOC Industrial Bank of Japan 3,300 3,300 73342MAC
Port Bellingham Ind. Dev. Rev. (Sauder Woodcraft Corp.),
2.75%, LOC Bank of America, VRDN (b) 4,080 4,080 733653AA
Port Longview Ind. Dev. Corp. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) Series 1993, 2.65%, VRDN 20,400 20,400
734725AC
Washington Commty. Econ. Revitalization Rev., VRDN: (b)
(Ace USA) Series 1990-2, 2.55%,
LOC Industrial Bank of Japan 1,240 1,240 93975TAJ
(Flying Food Fare) Series 1990-3, 2.55%
LOC Industrial Bank of Japan 1,150 1,150 93975TAK
(Sanken USA) Series 1988-1, 2.55%,
LOC Industrial Bank of Japan 3,785 3,785 93975TAE
Washington Hsg. Fin. Commty. Single Family Mtg. Rev.
Rfdg., Series 1992 D, 2.80% 6/10/94, MT (b) 7,695 7,695 939784ML
Washington Student Loan Fin. Assoc. Guaranteed
Student Loan Prog. Rev., VRDN: (b)
Series 1987 A, 2.65%, LOC Sanwa Bank of California,
Sanwa Bank 7,500 7,500 863868AC
Series 1987 B, 2.65%, LOC Sanwa Bank of California,
Sanwa Bank 9,200 9,200 863868AD
99,465
WEST VIRGINIA - 2.8%
Grant County Commission Rev. (N.B. Partners Ltd.)
Series B, 2.60%, LOC Bank of America, VRDN (b) 32,700 32,700 388069AB
Grant County Poll. Cont. Rev. (Vepco Proj.), VT: (b)
Series 1986, 2.55% 4/19/94 3,400 3,400 3880619K
Series 1986, 2.75% 4/19/94 2,450 2,450 3880619L
Marion County Solid Waste Disp. Rev.
(Grant Town Cogeneration Proj.), VRDN: (b)
Series 1990 A, 2.65%, LOC Nat'l. Westminster 14,500 14,500 569413AA
Series 1990 B, 2.65%, LOC Nat'l. Westminster 2,000 2,000 569413AB
Wood County Ind. Dev. Rev. (AGA Gas Inc. Proj.)
Series 1988, 2.60%, LOC Svenska Handelsbanken,
VRDN (b) 3,800 3,800 978360CC
58,850
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
WISCONSIN - 0.7%
Ashwaubenon Ind. Dev. Rev. (Tufco Proj.) Series 1992,
2.70%, LOC Bank One, VRDN (b) $ 2,250 $ 2,250 045148AR
Stoughton Ind. Dev. Rev. (Stoughton Trailers) Series 1992,
2.70%, LOC Bank One, VRDN (b) 3,900 3,900 862339AN
Wisconsin Operating TRAN, Series 1993, 3.25%
6/15/94 9,000 9,010 977054LW
15,160
MULTIPLE STATE - 0.8%
California Higher Ed. Student Ln. Auth. Rev. Series 1987 C,
MT: (b)
2.80% 6/1/94, LOC Student Loan Mktg. Assoc. 2,625 2,625 130327AQ
2.80% 7/1/94, LOC Student Loan Mktg. Assoc. 11,750 11,750 130327AY
Los Angeles Reg'l. Arpt. Impt. Facs. Lease Rev., 3%,
LOC Societe Generale, VRDN (b) 1,425 1,425 544628DU
15,800
TOTAL INVESTMENTS - 100% $ 2,106,372
Total Cost for Income Tax Purposes $ 2,106,374
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
FRDN - Floating Rate Demand Notes
MT - Mandatory Tender
OT - Optional Tender
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
VT - Variable Tender
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 (AMT securities).
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At August 31, 1993, the fund had a capital loss carryforward of
approximately $1600 of which $900 and $700 will expire on August 31, 1999
and 2001, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) FEBRUARY 28, 1994 (UNAUDITED)
1.ASSETS 2. 3.
4.Investment in securities, at value (Note 1) - See 5. $ 2,106,372
accompanying schedule
6.Cash 7. 18,389
8.Interest receivable 9. 12,917
10. 11.TOTAL ASSETS 12. 2,137,678
13.LIABILITIES 14. 15.
16.Payable for investments purchased $ 9,531 17.
18.Dividends payable 106 19.
20.Accrued management fee 493 21.
22. 23.TOTAL LIABILITIES 24. 10,130
25.26.NET ASSETS 27. $ 2,127,548
28.Net Assets consist of (Note 1): 29. 30.
31.Paid in capital 32. $ 2,127,554
33.Accumulated net realized gain (loss) on investments 34. (6)
35.36.NET ASSETS, for 2,127,553 shares outstanding 37. $ 2,127,548
38.39.NET ASSET VALUE, offering price and redemption 40. $1.00
price per share ($2,127,548 (divided by) 2,127,553 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED FEBRUARY 28, 1994 (UNAUDITED)
</TABLE>
41.42.INTEREST INCOME 43. $ 25,218
44.EXPENSES 45. 46.
47.Management fee (Note 2) $ 4,610 48.
49.Non-interested trustees' compensation 6 50.
51. Total expenses before reductions 4,616 52.
53. Expense reductions (Note 3) (1,662) 2,954
54.55.NET INTEREST INCOME 56. 22,264
57.58.NET REALIZED GAIN (LOSS) ON INVESTMENTS 59. (4)
(NOTE 1)
60.61.NET INCREASE IN NET ASSETS RESULTING FROM 62. $ 22,260
OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 1994 AUGUST 31,
(UNAUDITED) 1993
63.INCREASE (DECREASE) IN NET ASSETS
64.Operations $ 22,264 $ 40,821
Net interest income
65. Net realized gain (loss) on investments (4) -
66. Increase (decrease) in net unrealized gain from - (3)
accretion of market discount
67. 68.NET INCREASE (DECREASE) IN NET ASSETS 22,260 40,818
RESULTING FROM
OPERATIONS
69.Dividends to shareholders from net interest income (22,264) (40,821)
70.Share transactions at net asset value of $1.00 per 1,742,986 2,593,880
share
Proceeds from sales of shares
71. Reinvestment of dividends from net interest income 21,178 38,476
72. Cost of shares redeemed (1,332,308) (2,239,905)
73. Net increase (decrease) in net assets and shares 431,856 392,451
resulting from share transactions
74. 75.TOTAL INCREASE (DECREASE) IN NET ASSETS 431,852 392,448
76.NET ASSETS 77. 78.
79. Beginning of period 1,695,696 1,303,248
80. End of period $ 2,127,548 $ 1,695,696
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
81. SIX MONTHS YEARS ENDED AUGUST 31, JANUARY 14, 199
ENDED 1
FEBRUARY 28, 199 (COMMENCEMEN
4 T
OF OPERATIONS) TO
AUGUST 31,
82. (UNAUDITED) 1993 1992 1991
83.SELECTED PER-SHARE DATA
84.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of period
85.Income from Investment .012 .026 .038 .030
Operations
Net interest income
86.Less Distributions (.012) (.026) (.038) (.030)
From net interest income
87.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
88.TOTAL RETURN 1.20% 2.66% 3.91% 3.03%
89.RATIOS AND SUPPLEMENTAL DATA
90.Net assets, end of period $ 2,128 $ 1,696 $ 1,303 $ 424
(in millions)
91.Ratio of expenses to .32%* .27% .20% .09%*
average net assets
92.Ratio of expenses to .50%* .50% .50% .50%*
average net assets before
expense reductions
93.Ratio of net interest income 2.41%* 2.61% 3.67% 4.69%*
to average net assets
</TABLE>
* ANNUALIZED
TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
SEE NOTE 3 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Municipal Money Fund (the fund) is a fund of Fidelity Union 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 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.
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
market discount, net operating losses, expiring capital loss carryforwards,
and losses deferred due to wash sales and excise tax regulations.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective September
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,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of August 31, 1993 have been reclassified to
reflect an increase in paid in capital of $864, and an increase in
accumulated net realized loss on investments of $864.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .50% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $23,972.
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.
3. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund 's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .32% of average net assets. During the
period, the reimbursement reduced the expenses by $1,661,673. In addition,
through December 31, 1995, FMR has agreed to limit the fund's total
operating expenses to an annual rate of .45% of average net assets.
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
1. For quotes on funds you own.
2. For an individual fund quote.
3. For the ten most frequently
requested Fidelity fund quotes.
4. For quotes on Fidelity Select
Portfolios(Registered trademark).
5. To change your Personal
Identification Number (PIN).
6. To speak with a Fidelity
representative.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
1. For balances on funds you own.
2. For your most recent fund activity
(purchases, redemptions, and
dividends).
3. To change your Personal
Identification Number (PIN).
4. To speak with a Fidelity
representative.
* 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. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO WRITE FIDELITY
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. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
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 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
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Los Angeles, CA
251 University Avenue
Palo Alto, CA
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Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
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COLORADO
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Denver, CO
CONNECTICUT
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DELAWARE
222 Delaware Avenue
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FLORIDA
4400 N. Federal Highway
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2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
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Naples, FL
32 West Central Boulevard
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
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, 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
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, 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
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South 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
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
Sarah Zenoble, Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
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 AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
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 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
