FIDELITY
(registered trademark)
DAILY INCOME
TRUST
ANNUAL REPORT
AUGUST 31, 1994
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 value.
FINANCIAL STATEMENTS 16 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 20 Notes to the financial statements.
REPORT OF INDEPENDENT
ACCOUNTANTS 22 The auditor's opinion.
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:
The year so far has been an unsettling time for many investors. For
example, after three years of a nearly perfect environment for stock market
investing, stock prices generally fell from February through June. Bond
prices have fallen as well. Investors disagree about whether these declines
represent only a short-term correction or signal the beginning of a longer
bear market. One can collect statistics to support either opinion, but of
course, nobody knows for sure what will happen in the months ahead.
We do know, however, that market declines are a normal part of investing.
We have historically seen corrections of 10% or more every two years.
That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful investors in
every market cycle.
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, as well as 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.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Daily Income Trust 3.23% 27.79% 82.61%
Consumer Price Index 2.90% 19.58% 42.58%
Average All Taxable
Money Market Fund 3.11% 27.06% 80.90%
CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, one year, five years, or 10 years. For example, if you
invested $1,000 in a fund that had a 5% return over the past year, 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 taxable money market fund's total return. This
average currently reflects the performance of 696 taxable money market
funds tracked by CPI and IBC/Donoghue. (The periods covered by the
IBC/Donoghue numbers are the closest available match to those covered by
the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Daily Income Trust 3.23% 5.03% 6.21%
Consumer Price Index 2.90% 3.64% 3.61%
Average All Taxable
Money Market Fund 3.11% 4.91% 6.11%
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>
8/31/93 11/30/93 2/28/94 5/31/94 8/31/94
2.85% 2.84% 2.75% 3.62% 4.27%
Fidelity Daily Income Trust
Average All Taxable 2.64% 2.69% 2.79% 3.51% 4.08%
Money Market Fund
2.43% 2.35% 2.30% 2.34% 2.42%
MMDA
</TABLE>
Row: 1, Col: 1, Value: 2.85
Row: 1, Col: 2, Value: 2.64
Row: 1, Col: 3, Value: 2.45
Row: 2, Col: 1, Value: 2.84
Row: 2, Col: 2, Value: 2.69
Row: 2, Col: 3, Value: 2.38
Row: 3, Col: 1, Value: 2.75
Row: 3, Col: 2, Value: 2.79
Row: 3, Col: 3, Value: 2.32
Row: 4, Col: 1, Value: 3.62
Row: 4, Col: 2, Value: 3.51
Row: 4, Col: 3, Value: 2.38
Row: 5, Col: 1, Value: 4.27
Row: 5, Col: 2, Value: 4.08
Row: 5, Col: 3, Value: 2.45
5% -
4% -
3% -
2% -
1% -
0%
Fidelity Daily
Income Trust
Average
All Taxable
Money Market
Fund
MMDA
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 those of the average taxable money market fund and
the average bank money market deposit account (MMDA). Figures for the
average general purpose money market fund are from IBC/Donoghue. The MMDA
average is supplied by BANK RATE MONITOR.(Trademark) (Both figures are
those available closest to month end.)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
There are some important
differences between a bank
money market deposit
account (MMDA) and a
money market fund. First, 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.
Second, a money market
fund returns to its
shareholders income earned
by the fund's investments
after expenses. This is in
contrast to banks, which set
their MMDA rates periodically
based on current interest
rates, competitors' rates, and
internal criteria.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Burnell Stehman,
Portfolio Manager of
Fidelity Daily Income Trust
Q. BURNIE, SHORT-TERM INTEREST RATES HAVE RISEN SHARPLY DURING THE PAST
YEAR. CAN YOU BRING US UP TO DATE?
A. Sure. A year ago, the federal funds rate - the rate banks charge each
other for overnight loans - was still targeted at 3%, and it stayed there
through January 1994. But on February 4, the Federal Reserve announced an
increase to 3.25%. Many market observers, myself included, were surprised
at the early timing of the Fed's move, but the goal was clear: to thwart
inflationary pressures before they became an issue. By the end of August,
the federal funds rate had reached 4.75%. So in less than a year we've seen
the Fed shift its aim 180 degrees: from an accommodative policy designed to
promote economic growth, which had been in place for five years; to one
that was neutral; to one approaching a restrictive stance, designed to slow
a resilient economy.
Q. HOW DID THAT AFFECT THE WAY YOU MANAGED THE FUND?
A. As long as rates were stable or falling, my goal was to lock in higher
rates for as long as possible. That's why the fund's average maturity was
an aggressive 70-plus days at the beginning of the period. In early
February, on the eve of the Fed's first increase, the fund's average
maturity had fallen into the mid-50s - still too long, in retrospect.
Shortly after the rate increase came through, I began selling some
longer-maturity issues and exchanging others in favor of shorter-term,
higher-yielding securities. The fund's average maturity quickly dropped to
between 35 and 45 days, where it stayed until August. After the fed
increase in August, I extended the fund somewhat beyond 45 days in order to
capture the potential higher returns of longer-term securities.
Q. WERE YOU HAPPY WITH THE FUND'S PERFORMANCE?
A. Yes, the fund's seven-day yield on August 31, 1994, was 4.27%, up
sharply from 2.85% a year ago. For the year, the fund's total return was
3.23%. That beat the 3.11% average total return for all taxable money
market funds during the same period, according to IBC/Donoghue.
Q. ARE RATES LIKELY TO CONTINUE RISING?
A. That's a strong possibility. The Fed's objective is sustained,
non-inflationary growth - a goal Fed officials seem to believe is
consistent with a 2.5% annual expansion in the nation's economy. However,
over the past two quarters, the economy has been expanding in excess of a 3
1/2% annual rate. Meanwhile, unemployment has fallen, capacity utilization
has risen to near record heights, and higher price indices forewarn of
increased inflation. As a result, I would not be surprised to see the Fed
push the federal funds rate beyond 5% by the end of the year, and probably
higher into 1995.
Q. WHAT DOES THAT MEAN IN TERMS OF YOUR INVESTMENT STRATEGY GOING FORWARD?
A. First, I'll likely maintain an average maturity in a range I would
describe as neutral to defensive: around 45 days or shorter. That gives me
the flexibility to respond to rising rates while still capturing a portion
of the higher yields to be had from longer-term securities. Second, I'll
continue to use variable rate instruments - currently about 30% of the fund
- - to keep pace with rising rates. Variables are shorter-term securities
with rates that reset in line with prevailing rates at daily, weekly or
monthly intervals.
FUND FACTS
GOAL: to provide current
income with share price
stability by investing in high
quality, short-term securities
START DATE: May 31, 1974
SIZE: as of August 31, 1994,
more than $2.1 billion
MANAGER: Burnell Stehman,
since 1985; manager Fidelity
Daily Income Trust, 1979
- -1983; manager, several
institutional money market
funds; joined
Fidelity in 1979
(checkmark)
WORDS TO KNOW
BANKERS' ACCEPTANCE (BA):
A short-term note whose
payment is guaranteed by a
bank.
CERTIFICATE OF DEPOSIT (CD):
An interest-bearing deposit
with a specific maturity. Large
denomination CDs, like the
fund buys, have negotiable
interest rates and can be sold
in the secondary market.
COMMERCIAL PAPER: A
short-term note from a bank
or corporation.
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
believes interest rates will
rise. When the average
maturity is long, the fund
manager is expecting rates to
fall. When the average
maturity is neutral, the fund
manager wants to have the
flexibility to respond to rising
rates, while still capturing a
portion of the higher yields
available from issues with
longer maturities.
TIME DEPOSIT (TD): An
interest-bearing deposit with a
specific maturity. Large
denomination TDs, like the
fund buys, differ from CDs in
that they can't be sold in the
secondary market.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
8/31/94 2/28/94 8/31/93
0 - 30 59 54 33
31 - 90 25 37 37
91 - 180 15 8 24
181 - 397 1 1 6
WEIGHTED AVERAGE MATURITY
8/31/94 2/28/94 8/31/93
Fidelity Daily Income Trust 42 days 40 days 67 days
Average All Taxable
Money Market Fund* 42 days 53 days 63 days
ASSET ALLOCATION
AS OF AUGUST 31, 1994 AS OF FEBRUARY 28, 1994
Row: 1, Col: 1, Value: 40.0
Row: 1, Col: 2, Value: 39.0
Row: 1, Col: 3, Value: 20.0
Row: 1, Col: 4, Value: 2.0
Row: 1, Col: 1, Value: 69.0
Row: 1, Col: 2, Value: 19.0
Row: 1, Col: 3, Value: 11.0
Row: 1, Col: 4, Value: 2.0
Commercial
paper 40%
Bank CDs, BAs,
TDs, and notes 39%
Government
securities 20%
Other 1%
Commercial
paper 69%
Bank CDs, BAs,
TDs, and notes 19%
Government
securities 11%
Other 1%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS AUGUST 31, 1994
Showing Percentage of Total Value of Investments
BANKERS' ACCEPTANCES - 2.9%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Bank of New York
12/21/94 5.01% $ 10,000 $ 9,849
Chase Manhattan Bank
9/13/94 4.50 5,000 4,993
Chemical Bank
9/2/94 4.46 5,000 4,999
10/7/94 4.63 11,503 11,450
CoreStates Bank of Delaware, N.A.
11/2/94 4.79 5,000 4,959
12/1/94 5.05 5,000 4,937
12/9/94 5.05 5,000 4,932
Republic New York Corp.
10/3/94 4.65 6,000 5,976
Trust Company Bank
10/11/94 4.82 10,208 10,154
TOTAL BANKERS' ACCEPTANCES 62,249
CERTIFICATES OF DEPOSIT - 1.4%
NBD Bank, N.A.
9/16/94 4.75 5,000 5,000
9/22/94 4.60 20,000 20,001
Old Kent Bank & Trust Co.
2/21/95 5.25 5,000 5,000
TOTAL CERTIFICATES OF DEPOSIT 30,001
COMMERCIAL PAPER - 40.4%
AT&T Capital Corp.
9/29/94 4.75 17,000 16,938
AVCO Financial Services, Inc.
9/9/94 4.71 15,000 14,984
10/14/94 4.80 10,000 9,943
Associates Corp. of North America
9/20/94 4.46 20,000 19,953
9/23/94 4.53 15,000 14,959
10/31/94 4.84 25,000 24,800
11/14/94 4.91 12,000 11,880
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
BellAtlantic Financial Services
9/19/94 4.58% $ 6,000 $ 5,986
CIESCO, L.P.
9/15/94 4.64 15,000 14,973
10/4/94 4.80 10,000 9,956
10/14/94 4.81 15,000 14,915
CIT Group Holdings, Inc.
9/9/94 4.45 10,000 9,990
9/15/94 4.48 10,000 9,983
9/28/94 4.57 25,000 24,915
Citizen Utilities Company
11/18/94 4.84 16,500 16,329
Commercial Credit Co.
10/31/94 4.68 15,000 14,884
CoreStates Capital Corp.
9/15/94 4.53 10,000 9,982
Eastman Kodak
9/12/94 4.86 3,000 2,995
Eaton Corp.
10/5/94 4.61 5,000 4,978
10/17/94 4.89 5,000 4,969
Exxon Asset Management Co.
9/14/94 4.53 11,000 10,982
9/19/94 4.53 5,000 4,989
10/7/94 4.83 10,000 9,952
Ford Motor Credit Corp.
9/7/94 4.42 10,000 9,993
9/26/94 4.75 30,000 29,903
11/16/94 4.88 20,000 19,797
GTE Corp.
9/6/94 4.81 4,000 3,997
General Electric Capital Corp.
9/8/94 4.34 15,000 14,987
9/8/94 4.34 5,000 4,996
12/9/94 5.05 25,000 24,660
1/17/95 5.13 25,000 24,519
1/19/95 5.13 20,000 19,610
General Electric Corp.
9/12/94 4.71 35,000 34,950
General Motors Acceptance Corp.
9/6/94 4.58 35,000 34,978
10/24/94 4.89 15,000 14,893
10/27/94 4.81 14,000 13,896
Golden Peanut Company
9/7/94 4.45 15,000 14,989
Goldman Sachs Group, L.P. (The)
9/6/94 4.71 10,000 9,994
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Household Finance Corp.
11/10/94 4.86% $ 10,000 $ 9,907
11/21/94 4.96 10,000 9,890
IBM Corp.
9/12/94 4.53 3,000 2,996
9/13/94 4.76 5,000 4,992
10/25/94 4.88 25,000 24,819
ITT Financial
10/24/94 4.89 10,000 9,929
10/25/94 4.89 10,000 9,927
John Deere Capital Corp.
9/13/94 4.47 10,000 9,985
Merck & Co., Inc.
9/16/94 4.61 19,250 19,214
Merrill Lynch & Co., Inc.
9/12/94 4.69 10,000 9,986
Morgan Stanley Group, Inc.
9/1/94 4.69 20,000 20,000
NationsBank Corp.
11/22/94 4.91 25,000 24,724
New Center Asset Trust
11/21/94 4.94 10,000 9,890
PHH Corp.
9/8/94 4.50 15,000 14,987
Penney (JC) Funding Corp.
9/9/94 4.63 1,745 1,743
Philip Morris Cos., Inc.
9/15/94 4.53 8,681 8,666
11/10/94 4.81 20,000 19,815
Prudential Funding Corp.
12/2/94 5.00 20,000 19,750
Republic New York Corp.
9/7/94 4.69 25,000 24,981
Sears Roebuck Acceptance Corp.
10/18/94 4.92 10,000 9,936
Student Loan Corp.
11/2/94 4.85 15,000 14,876
Textron, Inc.
9/1/94 4.59 1,000 1,000
9/6/94 4.55 3,500 3,498
9/19/94 4.92 5,000 4,988
Unocal Corp.
9/7/94 4.54 2,000 1,998
9/14/94 4.89 7,000 6,988
TOTAL COMMERCIAL PAPER 859,882
FEDERAL AGENCIES - 19.8%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
FEDERAL FARM CREDIT BANK - DISCOUNT NOTES - 2.5%
10/18/94 4.45% $ 25,000 $ 24,858
1/4/95 5.00 4,195 4,124
1/9/95 5.15 25,000 24,547
53,529
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 1.2%
1/17/95 5.02 25,000 24,529
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 1.6%
9/14/94 4.50 20,000 19,967
10/24/94 4.68 15,000 14,898
34,865
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 4.2%
9/1/94 5.35 (a) 25,000 25,000
9/1/94 4.64 25,000 25,000
9/1/94 4.03 40,000 40,000
90,000
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 10.3%
9/26/94 4.15 5,000 4,986
10/26/94 4.45 25,000 24,834
10/27/94 4.50 15,000 14,897
11/16/94 4.91 30,000 29,693
12/16/94 4.98 25,000 24,641
1/4/95 5.04 10,000 9,829
1/18/95 5.03 25,000 24,527
2/3/95 5.01 40,855 39,993
2/13/95 5.16 6,220 6,076
2/16/95 5.07 25,000 24,423
3/1/95 5.12 15,000 14,623
218,522
TOTAL FEDERAL AGENCIES 421,445
BANK NOTES - 14.2%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Bank of New York
9/1/94 5.46% (a) $ 15,000 $ 14,996
Bank One - Dayton
9/1/94 5.46 (a) 7,000 7,000
Bank One Milwaukee
9/1/94 4.49 (a) 15,000 14,992
Boatmen's National Bank of St. Louis
9/1/94 4.86 (a) 25,000 24,995
Bank of New York, Delaware
9/6/94 4.57 (a) 30,000 30,000
Comerica Bank-Detroit
9/1/94 5.47 (a) 15,000 14,995
Fifth Third Bank, Cincinnati
9/21/94 4.76 15,000 15,000
First National Bank of Boston
9/27/94 4.60 10,000 10,000
9/30/94 4.65 3,000 3,000
Fleet Bank of Massachusetts
9/6/94 4.75 10,000 10,000
Huntington National Bank
9/1/94 4.85 (a) 23,000 22,981
Key Bank of New York
9/1/94 4.86 (a) 20,000 19,981
NBD Bank, N.A.
11/17/94 4.91 25,000 24,999
PNC Bank, N.A.
9/7/94 4.90 (a) 35,000 34,952
Society National Bank
9/1/94 4.94 (a) 13,000 12,989
9/1/94 5.47 (a) 30,000 29,991
9/1/94 4.83 (a) 10,000 9,992
TOTAL BANK NOTES 300,863
MASTER NOTES (A) - 4.1%
J.P. Morgan Securities
9/1/94 5.11 37,000 37,000
9/1/94 5.13 17,000 17,000
Morgan Stanley Group, Inc. (c)
9/1/94 5.08 15,000 15,000
Norwest Corp.
9/1/94 4.82 18,000 18,000
TOTAL MASTER NOTES 87,000
MEDIUM-TERM NOTES - 10.5%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Beneficial Corporation
9/15/94 4.82% (a) $ 35,000 $ 34,991
Ford Motor Credit Corporation
9/23/94 4.69 (a) 10,000 10,001
General Motors Acceptance Corp.
11/7/94 4.86 (a) 20,000 20,000
Goldman Sachs Group, L.P. (The) (b)
9/1/94 4.48 (a) 20,000 20,000
9/9/94 4.78 (a) 8,000 8,000
12/13/94 4.97 15,000 14,875
12/16/94 4.91 (a) 20,000 20,000
Merrill Lynch & Co., Inc.
9/1/94 4.83 10,000 10,000
Norwest Corp.
9/15/94 4.54 (a) 23,000 23,000
PHH Corp.
9/1/94 5.44 (a) 21,000 21,000
9/21/94 4.83 (a) 12,000 11,995
PepsiCo.
9/1/94 4.97 (a) 25,000 25,000
U.S.L. Capital, Inc.
9/16/94 4.51 (a) 5,000 5,007
TOTAL MEDIUM-TERM NOTES 223,869
SHORT-TERM NOTES (A) - 5.4%
Commonwealth Life Insurance Company
9/1/94 4.66 15,000 15,000
SMM Trust Company (1993-D) (c)
10/28/94 4.84 5,000 5,000
SMM Trust Company (1994-A) (c)
9/18/94 4.57 85,000 85,000
9/18/94 4.68 5,000 4,997
SMM Trust Company (1994-E) (c)
10/13/94 4.73 1,000 1,000
10/13/94 4.64 3,000 3,000
TOTAL SHORT-TERM NOTES 113,997
REPURCHASE AGREEMENTS - 1.3%
MATURITY AMOUNT VALUE (NOTE 1)
(000S) (000S)
With First Boston Corporation:
At 4.80%, dated 8/23/94 due 10/4/94:
U.S. Government Obligations
(principal amount $25,887)
0% to 10%, 3/1/01 to 6/1/28 $ 25,140 $ 25,000
In a joint trading account
(U.S. Government Obligations)
dated 8/31/94, due 9/1/94
(Note 2) At 4.89% 1,833 1,833
TOTAL REPURCHASE AGREEMENTS 26,833
TOTAL INVESTMENTS $ 2,126,139
Total Cost for Income Tax Purposes $ 2,126,139
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due date on these types of
securities reflects the next interest rate reset date or when applicable,
the final maturity date.
(b) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $62,875,000 or 3.0% of net
assets.
(c) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION
ACQUISITION AMOUNT
SECURITY DATE (000'S)
Morgan Stanley Group, Inc.
2/1/94 $ 15,000
SMM Trust Company:
(1994-A) 3/18/94 $ 85,000
(1994-A) 6/28/94 $ 4,996
(1994-E) 5/23/94 $ 999
(1994-E) 4/13/94 $ 3,000
(1993-D) 4/28/93 $ 5,000
INCOME TAX INFORMATION
At August 31, 1994, the fund had a capital loss carryforward of
approximately $881,000 of which $345,000 and $536,000 will expire on August
31, 2001 and 2002, respectively
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) AUGUST 31, 1994
1.ASSETS 2. 3.
4.Investment in securities, at value (including 5. $ 2,126,139
repurchase agreements of $26,833) - See
accompanying
schedule
6.Cash 7. 2,676
8.Interest receivable 9. 4,705
10. 11.TOTAL ASSETS 12. 2,133,520
13.LIABILITIES 14. 15.
16.Dividends payable $ 244 17.
18.Accrued management fee 544 19.
20.Other payables and accrued expenses 508 21.
22. 23.TOTAL LIABILITIES 24. 1,296
25.26.NET ASSETS 27. $ 2,132,224
28.Net Assets consist of: 29. 30.
31.Paid in capital 32. $ 2,132,478
33.Accumulated net realized gain (loss) on investments 34. (254)
35.36.NET ASSETS, for 2,132,478 shares outstanding 37. $ 2,132,224
38.39.NET ASSET VALUE, offering price and redemption 40. $1.00
price per share ($2,132,224 (divided by)shares)
</TABLE>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED AUGUST 31, 1994
41.42.INTEREST INCOME 43. $ 79,516
44.EXPENSES 45. 46.
47.Management fee $ 6,361 48.
49.Transfer agent fees 5,064 50.
51.Accounting fees and expenses 210 52.
53.Non-interested trustees' compensation 13 54.
55.Custodian fees and expenses 63 56.
57.Registration fees 67
58.Audit 52 59.
60. 61.TOTAL EXPENSES 62. 11,830
63.64.NET INTEREST INCOME 65. 67,686
66.67.NET REALIZED GAIN (LOSS) ON INVESTMENTS 68. (536)
69.70.NET INCREASE IN NET ASSETS RESULTING FROM 71. $ 67,150
OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEARS ENDED AUGUST 31,
1994 1993
72.INCREASE (DECREASE) IN NET ASSETS
73.Operations $ 67,686 $ 65,143
Net interest income
74. Net realized gain (loss) (536) (345)
75. 76.NET INCREASE (DECREASE) IN NET ASSETS 67,150 64,798
RESULTING FROM OPERATIONS
77.Dividends to shareholders from net interest income (67,686) (65,143)
78.Share transactions at net asset value of $1.00 per 6,210,672 6,188,836
share
Proceeds from sales of shares
79. Reinvestment of dividends from net interest income 66,153 63,070
80. Cost of shares redeemed (6,240,368) (6,656,948)
81. Net increase (decrease) in net assets resulting 36,457 (405,042)
from
share transactions
82. 83.TOTAL INCREASE (DECREASE) IN NET ASSETS 35,921 (405,387)
84.NET ASSETS 85. 86.
87. Beginning of period 2,096,303 2,501,690
88. End of period $ 2,132,224 $ 2,096,303
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
89. YEARS ENDED AUGUST 31, EIGHT MONTH YEAR
S ENDED
ENDED DECEMBER 3
AUGUST 31, 1,
90. 1994 1993 1992 1991 1990 1989
91.SELECTED PER-SHARE DATA
92.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value, beginning
of period
93.Income from .032 .028 .042 .064 .051 .087
Investment
Operations
Net interest
income
94.Less (.032) (.028) (.042) (.064) (.051) (.087)
Distributions
From net interest
income
95.Net asset $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
value,
end of period
96.TOTAL RETURN B 3.23 2.83 4.32 6.64 5.22% 8.97%
% % % %
97.RATIOS AND SUPPLEMENTAL
DATA
98.Net assets, $ 2,132 $ 2,096 $ 2,502 $ 2,802 $ 2,981A $ 2,923
end of period
(in millions)
99.Ratio of .56 .57 .55 .60 .63%A .64%
expenses % % % %
to average net
assets
100.Ratio of net 3.18 2.83 4.22 6.47 7.69%A 8.68%
interest % % % %
income to average
net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1994
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Daily Income Trust (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 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.
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. OPERATING POLICIES.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of FMR, may transfer uninvested cash balances into one or more
joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and are collateralized by U.S. Treasury or Federal Agency
obligations.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time- consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $113,997,000 or
5.3% of net assets for the fund.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a fee
computed daily and paid monthly, based on the level of the fund's average
net assets and gross income earned each month. The portion of the fee based
on average net assets is graduated ranging from an annual rate of .10% of
average net assets up to $2 billion to an annual rate of .05% of average
net assets in excess of $6 billion. The portion of the fee based on gross
income is equal to 4% of the gross income earned by the fund each month
(exclusive of gains realized from the sale of investments) provided the
amount of such fee, at a minimum, amounts to an annual rate of .20% and, at
a maximum, does not exceed an annual rate of .40% of the fund's average net
assets. For the period, the management fee was equivalent to an annualized
rate of .30% 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.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
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 $1,681,031.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Fidelity Union Street Trust II:
Fidelity Daily Income Trust:
We have audited the accompanying statement of assets and liabilities of
Fidelity Union Street Trust II: Fidelity Daily Income Trust, including the
schedule of portfolio investments, as of August 31, 1994, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended, and the
financial highlights for each of the four years in the period then ended,
the eight month period ended August 31, 1990 and the year ended December
31, 1989. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1994 by correspondence with the custodian
and brokers . An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Union Street Trust II: Fidelity Daily Income Trust as of August
31, 1994, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the four years in the
period then ended, the eight month period ended August 31, 1990 and the
year ended December 31, 1989, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
September 21, 1994
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)(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)(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.
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
Burnell R. Stehman, Vice President
Fred L. Henning, Jr., Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, 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
Bank of New York, N.A.
New York, NY
FIDELITY'S TAXABLE
MONEY MARKET FUNDS
Fidelity Cash Reserves
Fidelity Daily Income Trust
Fidelity U.S. Government Reserves
Spartan(registered trademark) Money Market Fund
Spartan U.S. Government
Money Market Fund
Spartan U.S. Treasury
Money Market Fund
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)
MUNICIPAL
MONEY
FUND
ANNUAL REPORT
AUGUST 31, 1994
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 value.
FINANCIAL STATEMENTS 27 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 31 Notes to the financial statements.
REPORT OF INDEPENDENT
ACCOUNTANTS 33 The auditor's opinion.
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:
The year so far has been an unsettling time for many investors. For
example, after three years of a nearly perfect environment for stock market
investing, stock prices generally fell from February through June. Bond
prices have fallen as well. Investors disagree about whether these declines
represent only a short-term correction or signal the beginning of a longer
bear market. One can collect statistics to support either opinion, but of
course, nobody knows for sure what will happen in the months ahead.
We do know, however, that market declines are a normal part of investing.
We have historically seen corrections of 10% or more every two years.
That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful investors in
every market cycle.
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, 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 during the periods shown, the total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND
Spartan Municipal Money 2.50% 12.64%
Consumer Price Index 2.90% 11.36%
Average All Tax-Free Money Market Fund 2.06% 10.01%
CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, 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 369
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 AUGUST 31, 1994 PAST 1 LIFE OF
YEAR FUND
Spartan Municipal Money 2.50% 3.33%
Consumer Price Index 2.90% 2.98%
Average All Tax-Free Money Market Fund 2.06% 2.70%
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>
8/31/93 11/30/93 2/28/94 5/31/94 8/31/94
Spartan Municipal 2.49% 2.41% 2.40% 2.73% 2.94%
Money Fund
If Fidelity had not reimburs 2.31% 2.23% 2.22% 2.55% 2.84%
ed
certain fund expenses
Average All Tax-Free 2.00% 1.94% 1.97% 2.35% 2.59%
Money Market Fund
Spartan Municipal Money 3.89% 3.77% 3.75% 4.27% 4.59%
Fund - Tax-equivalent
If Fidelity had not reimburs 3.61% 3.48% 3.47% 3.98% 4.44%
ed
certain fund expenses
Average All Taxable 2.64% 2.69% 2.79% 3.51% 4.08%
Money Market Fund
</TABLE>
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 portfolio expenses during the periods
shown, the yields would have been lower. 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 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)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Sarah Zenoble,
Portfolio Manager of Spartan
Municipal Money Fund
Q. SARAH, OVER THE PAST SIX MONTHS, THE FEDERAL RESERVE BOARD HAS RAISED
THE FEDERAL FUNDS RATE - THE RATE BANKS CHARGE EACH OTHER FOR OVERNIGHT
LOANS - FROM 3.00% TO 4.75%. HOW HAS THE INCREASE IN SHORT-TERM RATES
AFFECTED
THE FUND?
A. Some investors may have expected the fund's yield to increase more
quickly in response to the Fed's rise, but initially there was not a
dramatic rise in its yield. That's because yields on variable rate demand
notes (VRDNs) remained very low. VRDNs, or tender bonds that can be
redeemed on short notice, make up nearly 60% of the fund's investments.
Q. WHY DID THE FUND OWN VRDNS IF THEIR YIELDS WEREN'T ATTRACTIVE?
A. VRDNs are good investments when interest rates are rising because the
rate they pay adjusts weekly with prevailing rates. VRDNs are also
attractive because, as I noted, they can be redeemed on short notice,
typically one or seven days. These two features help insulate the prices of
these instruments from rising rates. Because of these characteristics,
VRDNs were in demand during the past six months, and, as a result, their
yields were low. In general, I held VRDNs because they let me better
position the fund to take advantage of higher rates resulting from the
Fed's tightening and increased municipal supply. This is important because
in a rising rate environment the fund aims to maintain securities that have
relatively short maturities. This way it has the flexibility to reinvest
fairly quickly in other securities that may offer higher interest rates.
Q. HOW DID THE FED'S INCREASE OF SHORT-TERM INTEREST RATES AFFECT THE
FUND'S STRATEGY?
A. I began shortening the fund's average maturity early in the year and
continued to allow its average maturity to decline as the Fed hiked rates.
On February 1 - before the Fed's first hike - the fund's average maturity
was 52 days, compared to its low point at the end of June of 30 days. I
added fixed-rate investments with slightly longer maturities in August when
yields rose sharply in response to seasonal municipal supply. These
securities were so inexpensive at that time that they were attractive even
in the rising rate environment. By making these purchases, I allowed the
fund to earn higher yields without significantly lengthening the fund's
average maturity. Throughout the period, I generally tried to keep a
relatively stable VRDN position.
Q. HOW DID THE FUND PERFORM?
A. The fund turned in a solid performance. Its seven-day yield on August
31, 1994, was 2.94%, compared to 2.49% 12 months ago. The current yield
translates into a taxable equivalent yield of 4.59% for investors in the
36% federal tax bracket. The fund's total return for the year ended August
31, 1994, was 2.50%. That beat the average all tax-free money market fund's
total return of 2.06% during the same period, according to IBC/Donoghue.
Q. WHERE DO YOU THINK INTEREST RATES WILL GO OVER THE NEXT SIX MONTHS?
A. At this point, the economy seems to have a pretty fair amount of
momentum. And, while the Fed has acted decisively to raise rates, I think
we're entering a phase in the economy where it will take a significantly
larger increase in rates to slow the economy down. As a result, I believe
the Fed will have to act before year-end to raise interest rates again. In
response, I expect to maintain a shorter average maturity - between 40- to
55-days - in
anticipation of higher interest rates.
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 August 31, 1994,
more than 2.2 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;
joined Fidelity in 1987
(checkmark)
MONEY MARKETS AND
DERIVATIVES:
The word "derivatives" covers
a wide range of financial
agreements, of varying
degrees of complexity, that
have market values based on
security or market indices. All
"derivative" securities in
Fidelity's money market funds
are designed to have the price
characteristics of typical
money market securities.
During the recent Federal
Reserve Board interest rate
increases, all Fidelity money
market holdings performed as
designed and the funds
maintained a stable share
price of $1.00.
The more complex of these
instruments, such as floating
rate notes with unusual and
complex floating rate
formulas, frequently have too
much price volatility to be
appropriate investments for
money market funds. Many of
them do not offer the degree
of price stability Fidelity
believes is required in order
for its funds to maintain a
stable $1.00 share price.
Therefore, despite their
frequent higher yields at the
time they are sold, Fidelity
money market funds have not
purchased these volatile
securities. While this may
sometimes have caused
Fidelity money market funds
to have lower gross yields
than certain other funds,
Fidelity believes its investors
value prudence as well as
performance.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
8/31/94 2/28/94 8/31/93
0 - 30 66 61 66
31 - 90 22 13 7
91 - 180 3 20 1
181 - 397 9 6 26
WEIGHTED AVERAGE MATURITY
8/31/94 2/28/94 8/31/93
Spartan Municipal
Money Market Fund 48 days 50 days 87 days
Average All Tax-Free
Money Market Fund* 56 days 55 days 67 days
ASSET ALLOCATION
AS OF AUGUST 31, 1994 AS OF FEBRUARY 28, 1994
Row: 1, Col: 1, Value: 57.0
Row: 1, Col: 2, Value: 26.0
Row: 1, Col: 3, Value: 4.0
Row: 1, Col: 4, Value: 13.0
Row: 1, Col: 5, Value: 0.0
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
Variable rate
demand notes
(VRDNs) 57%
Commercial
paper 26%
Tender bonds 4%
Municipal
notes 13%
Other -
Variable rate
demand notes
(VRDNs) 53%
Commercial
paper 14%
Tender bonds 18%
Municipal
notes 15%
Other -
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS AUGUST 31, 1994
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
ALABAMA - 1.7%
Ashland Ind. Dev. Board Rev. (Wellborn Cabinet Inc. Proj.)
Series 1991 A, 3.25%, LOC Amsouth Bank, VRDN (b) $ 1,780 $ 1,780
Athens Ind. Dev. Board Rev. (TRIS USA Inc. Proj.)
Series 1990, 3.80%, LOC Tokai Bank Ltd., VRDN (b) 3,500 3,500
Colbert County Ind. Dev. Board (Golden Poultry Co., Inc.
Proj.) Series 1990, 3.25%, LOC Trust Company of
Georgia, VRDN (b) 5,200 5,200
Columbiana Ind. Dev. Board Rev. (NFA Corp. Proj.)
Series 1992 A, 3.25%, LOC Amsouth Bank,
VRDN (b) 7,400 7,400
Eufaula Ind. Dev. Board (Columbus Mills Inc. Proj.)
Series 1993, 3.25% LOC Trust Co. Georgia,
VRDN (b) 3,000 3,000
Florence Ind. Dev. Board. Rev. (Robert J. Bevis Proj.)
Series 1990, 3.25%, LOC Third Nat'l. Bank of
Nashville, VRDN (b) 2,930 2,930
Geneva Ind. Dev. Board Rev. (Russell Corp. Proj.)
Series 1992, 3.25%, LOC Trust Co. of Georgia,
VRDN (b) 3,000 3,000
Guntersville Ind. Dev. Board Ind. Dev. Rev. (Kappler Proj.)
Series 1988, 3.50%, LOC Nat'l. Bank of Canada,
VRDN (b) 1,500 1,500
Phenix City Envir. Impt. Rev. Bonds (Mead Coated Board
Proj.) Series 1988: (b)
3.20% tender 10/12/94, LOC ABN-AMRO Bank 3,525 3,525
3.20% tender 10/13/94, LOC ABN-AMRO Bank 5,500 5,500
Rainsville Ind. Dev. Board. Rev. (Kappler Proj.)
Series 1988, 3.50%, LOC Nat'l. Bank of Canada,
VRDN (b) 800 800
Talladega Ind. Poll. Cont. Dev. (Wehadkee Yarn Mills Proj.)
Series 1990, 3.25%, LOC Trust Co. Bank of Georgia,
VRDN (b) 1,235 1,235
39,370
ARIZONA - 0.7%
Flagstaff Ind. Dev. Auth. Rev. Bonds (Citizens Utilities Co.),
2.95% tender 10/11/94 (b) 2,100 2,100
Mohave County Ind. Dev. Auth. Ind. Dev. Rev. Bonds
(Citizens Utilities Co.) Series 1993 E: (b)
3% tender 10/6/94 2,500 2,500
3.40% tender 11/7/94 5,200 5,200
Yavapai County Ind. Dev. Auth. Ind. Dev. Rev. Bonds
(Citizens Utilities Co.) Series 1993, 3% tender
10/6/94 (b) 5,700 5,700
15,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
ARKANSAS - 1.3%
Arkansas Student Loan Auth. Rev. Bonds, VRDN: (b)
Series B-2, 3.30%, (Liquidity Facility Bayerische
Landesbank) $ 13,745 $ 13,745
Series B-3, 3.30%, (Liquidity Facility Bayerische
Landesbank) 1,000 1,000
Blythville Ind. Dev. Rev. (Arkansas Steel Processing Proj.)
Series 1992, 3.50%, LOC Credit Agricole, VRDN (b) 9,500 9,500
Harrison Ind. Dev. Rev. (Rock-Tenn Converting Co. Proj.)
Series 1993, 3.25%, LOC Trust Co. of Georgia,
VRDN (b) 2,500 2,500
Magnolia Ind. Dev. Rev. (American Fuel Cell & Coated
Fabric Co.) 3.30%, LOC Barclays Bank, VRDN (b) 3,350 3,350
30,095
CALIFORNIA - 5.4%
California Gen. Oblig. Adj. Rate RAN Series 1994-95 B,
3.24% 6/28/95 20,000 20,000
California Poll. Cont. Fin. Auth. Rfdg. Rev. Bonds (Pacific Gas
& Elec. Co.) Series 1988 B, 2.80% tender 9/7/94,
LOC Sumitomo Bank (b) 3,500 3,500
California TRAN (Cash Reserve Prog. Auth.)
Series A, 4.50% 7/5/95 43,000 43,261
Long Beach Harbor Dept., Series A, 3.20%
10/19/94, CP (b) 7,500 7,500
Orange County Apt. Dev. Rev.:
Bonds (Irvine Co.) Issue 1, Series 1985, 3% tender 9/13/94,
LOC Dai-Ichi Kangyo Bank 5,300 5,300
(Hidden Hills) Issue U, Series C, 3.90%,
LOC Tokai Bank, VRDN 1,000 1,000
(Niguel Summit I) Issue 1985 U, Series A, 3.90%,
LOC Tokai Bank, VRDN 11,400 11,400
Sacramento County Hsg. Auth. Multi-Family Hsg. Rev. Rfdg.
(Bradshaw Courte Apts.) Series 88 B, 3.55%,
LOC Tokai Bank Ltd., VRDN 2,800 2,800
San Bernadino County Multi Family Hsg. Rev.,
(Brookside Meadows Proj.) Series A, 3.70%,
LOC Tokai Bank, VRDN 5,500 5,500
San Francisco City and County Multi-Family Redev. Agcy. Rev.
(St. Francis Place Proj.) Series 1989 A, 3.60%,
LOC Mitsubishi Trust & Banking, VRDN 13,300 13,300
Tustin, Orange County Impt. Rev. Bonds, Assessment Dist. #86-2:
3.50% tender 9/2/94, LOC Tokai Bank 2,000 2,000
3.50% tender 9/6/94, LOC Tokai Bank 3,000 3,000
3.50% tender 9/7/94, LOC Tokai Bank 5,050 5,050
123,611
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
COLORADO - 6.0%
Colorado State Gen. Fund TRAN, 4.50% 6/27/95 $ 6,000 $ 6,028
Denver City & County Arpt. Sys. Rev., VRDN: (b)
Series 1992 D, 3.30%, LOC Morgan Guaranty
Trust Co. 21,000 21,000
Series 1992 E, 3.50%, LOC Bank of Tokyo 5,000 5,000
Series 1992 G, 3.30%, LOC Credit Local DeFrance 8,500 8,500
Denver City & County Arpt. Sys. Subordinate Rev. Bonds: (b)
Series 1990 B:
2.95% tender 9/8/94, LOC Sumitomo Bank 3,320 3,320
3.45% tender 10/12/94, LOC Sumitomo Bank 8,780 8,780
3.60% tender 11/14/94, LOC Sumitomo Bank 8,000 8,000
Series 1990 C, 3.45% tender 10/12/94,
LOC Sumitomo Bank 20,000 20,000
Series 1990 D:
3.40% tender 10/14/94, LOC Sumitomo Bank 8,000 8,000
3.60% tender 11/8/94, LOC Sumitomo Bank 2,670 2,670
Series 1990 E, 3.60% tender 10/27/94,
LOC Sanwa Bank 24,600 24,600
Denver County Urban Renewal Auth. Tax Increment Rev. Bonds
(Urban Renewal Proj.) Series 1989 A, 3.15% tender
9/8/94 (b) 10,530 10,530
Jefferson County School Dist. Participating VRDN,
Series 1985 C, 3.35%, (Liquidity Facility Bankers
Trust) (c) 3,025 3,025
Monte Vista Ltd. Oblig. Swr. Rev., Series 1992, 3.40%,
LOC Wachovia Bank & Trust, VRDN (b) 2,850 2,850
Wheat Ridge County Ind. Dev. Rev. (Adolph Coors Co. Proj.),
Series 1993, 3.35%, LOC Wachovia Bank Georgia,
VRDN (b) 4,000 4,000
136,303
DELAWARE - 0.5%
Delaware Econ. Dev. Auth. Exmpt. Facs. Rev.
(Delmarva Pwr. & Lt. Co. Proj.) Series 1987, 3.05%,
VRDN (b) 1,000 1,000
Delaware Hsg. Auth. Participating VRDN, Series PA-39, 3.35%,
(Liquidity Facility Merrill Lynch) (c) 10,800 10,800
11,800
DISTRICT OF COLUMBIA - 0.5%
Dist. of Columbia Hsg. Fin. Auth. Multi-Family Hsg. Rev. Rfdg.
(Mount Vernon Plaza Apts.) 3.35%, LOC Bank One,
VRDN (b) 11,350 11,350
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
FLORIDA - 6.7%
Broward County Ind. Dev. Auth. Ind. Dev. Rev.
(Rib Associates Proj.) Series 1989, 3.25%,
LOC Sun Bank, VRDN (b) $ 1,610 $ 1,610
Broward County Ind. Dev. Auth. Rev. Rfdg.
(Goldline Lab., Inc. Proj.) Series 1989 B, 3.40%,
LOC Barnett Bank, VRDN (b) 639 639
Collier County Ind. Dev. Auth. Wtr. & Swr. Ind. Dev. Rev.
(Marco Island Util. Proj.), VRDN: (b)
Series 1990, 3.25%, LOC Sun Bank 2,400 2,400
Series 1992, 3.25%, LOC Sun Bank 4,825 4,825
Dade County Hsg. Fin. Corp. Participating VRDN,
Series 1991 A, 3.50%, (Liquidity Facility Bank
One) (b) (c) 12,690 12,690
Dade County Ind. Dev. Rev. (Montenay-Dade Ltd. Proj.):
Series 1988, 3.35%, LOC Banque Paribas, VRDN (b) 3,625 3,625
Series 1990 A, 3.35%, LOC Banque Paribas,
VRDN (b) 45,790 45,790
Dade County Ind. Dev. Rev. Auth. Ind. Dev. Rev.
(Guastafeste Proj.) Series 1987, 3.25%,
LOC Sun Bank, NA, VRDN (b) 2,615 2,615
Dade County Multi-Family Hsg. Rev. (Biscayne View
Apts. Proj.) Series 1993, 3.45%, (BPA Commonwealth
Life Ins. Co.), VRDN (b) 12,000 12,000
Escambia County Solid Wst. Disp. Rev. (Monsanto Co. Proj.)
Series 1993, 3.20%, VRDN 5,300 5,300
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev. (Players Club)
Series 1991 C, 3.31%, LOC Sumitomo Bank, VRDN 3,960 3,960
Hillsborough County Ind. Dev. Rev. (Vigo Importing Proj.)
3.40%, LOC NCNB Nat'l. Bank of Florida, VRDN (b) 2,000 2,000
Indian Trace Commty. Dev. Dist. (Broward County Basin I Wtr.
Mgmt. Spl. Benefit Bonds) Series 1991, 3.50% tender
9/7/94, LOC Tokai Bank 3,000 3,000
Jacksonville Gen. Obig. Rev. (River City Renaissance Program),
3.05% 10/17/94, SBPA Morgan Guaranty, CP 7,000 7,000
Okeechobee County Solid Wst. Rev. (Chambers Waste Sys.)
Series 1992, 3.40%, LOC NationsBank, VRDN (b) 11,000 11,000
Orange County Health Fac. Auth. Rfdg. Rev. Bonds (Pooled
Hosp. Loan Prog.) Series 1985, 2.85% tender 9/7/94,
(MBIA Insured), BPA Banque Paribas 5,500 5,500
Orange County School Dist. TAN 4.75% 6/30/95 15,500 15,593
Orlando Aviation Auth. Facs. Participating VRDN,
Series 1989 A, 3.65%, LOC NationsBank (b) (c) 10,375 10,375
Volusia County Ind. Dev. Auth. (Southern State Util. Proj.)
Series 1994, 3.25%, LOC Sun Bank NA, VRDN (b) 2,290 2,290
152,212
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
GEORGIA - 1.3%
Cartersville Dev. Auth. Ind. Dev. Rev. (Sekisui Jushi America Inc.)
Series 1992, 3.30%, LOC Sanwa Bank, VRDN (b) $ 4,100 $ 4,100
Floyd Co. Dev. Auth. Ind. Dev. Rev. (Marglen Ind. Inc. Proj.),
3.25%, LOC Trust Co. of Georgia, VRDN (b) 5,000 5,000
Georgia Port Auth. Rev. (Mayor's Point Terminal) Series 1992,
3.25%, LOC Trust Co. Bank of Georgia, VRDN (b) 5,000 5,000
Greene County Ind. Dev. Rev. (Chipman-Union Inc. Proj.)
Series 1991, 3.25%, LOC Trust Co. Bank of Georgia,
VRDN (b) 2,000 2,000
Pierce County Ind. Dev. & Bldg. Auth. Rev. (American Egg
Prods. Inc. Proj.) Series 1989, 3.25%, LOC Barclays Bank,
VRDN (b) 1,760 1,760
Rockdale County Ind. Dev. Rev. (Takahashi Works USA)
Series 1990, 3.25%, LOC Sanwa Bank, VRDN (b) 2,575 2,575
Savannah Port Authority (Pier 1 Imports Inc. Proj.) 3.25%,
LOC Nat'l. Westminster, VRDN (b) 4,200 4,200
Worth County Ind. Dev. Auth. Rev. (Seabrook Ent. Proj.)
Series 1991, 3.15%, LOC Barclays Bank, VRDN (b) 5,000 5,000
29,635
ILLINOIS - 5.5%
Chicago O'Hare Int'l. Arpt. Rev., VRDN: (b)
(Northwest Orient Airlines), 3.45%, LOC Mitsubishi Bank 700 700
Series 1988 A, 3.30%, LOC Sanwa Bank 35,300 35,300
Series 1988 B, 3.30%, LOC Sanwa Bank 17,700 17,700
Chicago Park Dist. Gen. Oblig. Corp. TAN 3.25% 10/1/94 7,500 7,503
Illinois Dev. Fin. Auth. Adj. Rate Ind. Dev. Rev., VRDN: (b)
(FC Ltd. Partnership), 3.40%, LOC Lasalle Nat'l. Bank 3,625 3,625
(Yale-Soth Haven Proj.) Series 1994, 3.40%,
LOC Bank One 3,100 3,100
Illinois Dev. Fin. Auth. Ind. Dev. Rev., VRDN : (b)
(Belmont Steel Proj.) Series 1991, 3.40%,
LOC Manufacturers Nat'l. Bank of Detroit 4,600 4,600
(Eakas Corp. Proj.) Series 1989, 3.45%,
LOC Bank of Tokyo 8,000 8,000
(Kindlon Partners Proj.) Series 1994, 3.40%,
LOC Lasalle Nat'l. Bank 1,500 1,500
(Rich Products Corp. Proj.) Series 1993, 3.25%,
LOC Trust Company of Georgia 7,000 7,000
Illinois Dev. Fin. Auth. Ltd. Oblig. Rev, VRDN: (b)
(R.S. Anderson Co. Proj.), 3.30%, LOC Comerica 1,300 1,300
(SWD Inc. Proj.), 3.30%, LOC Nat'l. Bank of Detroit 5,500 5,500
Illinois Gen. Oblig. TRAN 4.75 4/17/95 28,000 28,145
St. Charles Ind. Dev. Rev. (Pier 1 Imports-Midwest, Inc. Proj.)
Series 1986, 3.25%, LOC Nat'l. Westminster Bank,
VRDN (b) 2,100 2,100
126,073
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
INDIANA - 0.6%
Jeffersonville Econ. Dev. Rev. (Apollo America Corp.)
Series 1991, 4.15%, LOC Tokai Bank Ltd., VRDN (b) $ 7,000 $ 7,000
Lebanon Econ. Dev. Rev. (White Castle Sys. Inc. Proj.) 3.40%,
LOC Bank One, VRDN (b) 2,270 2,270
Ligonier Econ. Dev. Rev. (Sharon Manufacturing Co.), 3.30%,
LOC Nat'l. Bank of Detroit, VRDN (b) 4,900 4,900
14,170
IOWA - 1.8%
Clinton Ind. Dev. Rev. (Sethness Products Co. Proj.), 3.45%,
LOC Northern Trust Corp., VRDN (b) 4,200 4,200
Iowa Fin. Auth. Ind. Dev. Rev. (Mcwane Inc. Proj.)
Series 1992, 3.25%, LOC Amsouth Bank, VRDN (b) 6,000 6,000
Iowa Student Loan Liquidity Corp. Rev., Series B, 3.20%,
(AMBAC Insured), SBPA Mitsubishi Bank, VRDN (b) 30,500 30,500
40,700
KENTUCKY - 0.7%
Cynthiana Ind. Dev. Rev. (E.D. Bullard Co. Proj.), 3.40%,
LOC NationsBank, VRDN (b) 1,500 1,500
Daviess County Multi-Family Hsg. Rev. Rfdg. (Park Regency
Apts. Proj.) 3.45%, LOC Sumitomo Trust & Banking,
Sumitomo Bank Ltd., VRDN (b) 4,155 4,155
Kentucky Higher Ed. Student Loan Auth., Series 1991 E, 3.40%,
LOC Sumitomo Bank, VRDN (b) 4,000 4,000
Scott County Adj. Rate Ind. Building Rev. (Ropak Corp. Proj.)
Series 1994, 3.40%, LOC Bank One, 3.40%, VRDN (b) 5,500 5,500
15,155
LOUISIANA - 1.4%
Calcaseiu Parish Pub. Trust Auth. Solid Waste Disp. Rev.
(PPG Industries Inc. Proj.) Series 1994, 3.40%, VRDN (c) 6,300 6,300
Lake Charles Harbor and Terminal Dist. Port Impt. Rev., 3.35%,
LOC Nat'l. Westminster Bank, VRDN (b) 23,000 23,000
Louisiana Pub. Facs. Auth. Rev. (College & Univ. Equip. & Cap.
Facs. Rev.) Series 1985, 3.15%, (FGIC Insured), VRDN 3,200 3,200
32,500
MAINE - 0.3%
Eastport Ind. Dev. Rev. (Passamaquoddy Tribe Fibre Extrusion
Proj.) Series 1992, 3.40%, LOC Nat'l. Bank of Detroit,
VRDN (b) 4,860 4,860
Maine Fin. Auth. Econ. Dev. Rev., VRDN: (b)
Series 1992 A, 3.60%, LOC Sumitomo Bank 1,720 1,720
Series 1992 C, 3.60%, LOC Sumitomo Bank 800 800
Series 1992 D, 3.60%, LOC Sumitomo Bank 660 660
8,040
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
MARYLAND - 3.4%
Baltimore Econ. Dev. Rev. (Rock-Tenn Converting Co.)
Series 1987, 3.25%, LOC Trust Co. of Georgia,
VRDN (b) $ 1,755 $ 1,755
Maryland Cmmty. Dev. Admin. Dept. Hsg. & Cmmty. Dev.
(Single Family Prog. 1993) Series 4, 2.90%
tender 11/2/94 8,500 8,500
Maryland Gen. Oblig. Tender Option Ctfs., Series F, 3.30%,
(Liquidity Facility Sumitomo Bank), VRDN (c) 37,500 37,500
Montgomery County Hsg. Opportunities Commission
(Draper Lane Apts.) 3.25%, (FGIC Insured),
BPA Sumitomo Bank, VRDN (b) 10,200 10,200
Montgomery County Hsg. Opportunities Commission
Multi-Family Hsg. Rev. Bonds (Oakwood-Gaithersburg)
Series 1991 A, 2.90% tender 11/1/94 7,420 7,420
Montgomery County Hsg. Opportunities Commission
Single Family Mtg. Rev. Bonds, Series 1993 B, 2.85%
tender 11/1/94 10,000 10,000
Prince George's County Ind. Dev. Rev. (Cintas Corp. #41 Proj.),
3.40%, LOC Central Trust & Pittsburgh Nat'l. Bank,
VRDN (b) 2,750 2,750
78,125
MICHIGAN - 1.3%
Flint Hosp. Bldg. Auth. Rev. (Hurley Med. Ctr.) Series 1985,
3.20%, LOC Comerica Bank, Detroit, VRDN 720 720
Michigan Bond Auth. Rev. RAN, Series 1994 B, 4.75%
7/20/95 15,000 15,095
Michigan Strategic Fund Ltd. Oblig. Rev.
(Michigan Sugar Co. - Carrollton) 3.25%,
LOC Trust Co. of Georgia, VRDN (b) 2,000 2,000
Michigan Strategic Fund Rev. Bonds (Dow Chemical Proj.)
Series 1988: (b)
3.25% tender 10/13/94 3,010 3,010
3.20% tender 10/26/94 2,400 2,400
Michigan Strategic Fund Solid Wst. Disp. Rev.
(Grayling Gen. Station Proj.) Series 1990, 3.15%,
LOC Barclays Bank, VRDN (b) 4,000 4,000
Rochester Hills Econ. Dev. Corp. Ltd. Oblig. Rev.
(Cardell Corp.) 3.20%, LOC Comerica Bank,
VRDN (b) 1,650 1,650
28,875
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
MINNESOTA - 1.2%
Anoka County United Pwr. Assoc. Rev. Bonds (Nat'l. Rural Utilities)
Series 1988 A, 2.95% tender 10/11/94 (b) $ 1,300 $ 1,300
Minnesota Hsg. Fin. Agency Single Family Mtg. Rev. Bonds,
Series 1994 D, 3% tender 12/15/94 7,620 7,620
Osseo Ind. Sch. Dist. Participating VRDN, Series 1994 S, 3.35%,
(Liquidity Facility First Bank) (c) 11,000 11,000
Univ. of Minnesota Rev., Series 1991 A, 3% 9/12/94, CP 7,750 7,750
27,670
MISSISSIPPI - 0.8%
Canton Ind. Dev. Auth. Rev. (McCarty Farms Proj.) Series 1990,
3.25%, LOC Trust Co. of Georgia, VRDN (b) 5,700 5,700
Desoto County Ind. Dev. Rev. (Flavorite Labs Proj.) Series 1991 B,
3.45%, LOC First Tenn. Nat'l. Corp., VRDN (b) 3,400 3,400
Mississippi Business Fin. Corp. Ind. Dev. Rev. (Pillowtex
Corp. Proj.) Series 1992, 3.40%, LOC NationsBank,
VRDN (b) 4,600 4,600
Noxubee County Ind. Dev. Board Rev. (Barge Forest Products Co.
Proj.) 3.50%, LOC Amsouth Bank, VRDN (b) 3,625 3,625
17,325
MISSOURI - 3.4%
Berkeley Ind. Dev. Auth. Tax Exempt Fac. Rev. (St. Louis Air
Cargo Svcs. Proj.) 3.55%, LOC Sumitomo Bank, VRDN (b) 7,750 7,750
Missouri Higher Ed. Loan Auth. Student Loan Rev., VRDN: (b)
Series 1988 A, 3.20%, LOC Dai-Ichi Kangyo Bank 13,500 13,500
Series 1990 A, 3.20%, LOC Nat'l. Wesminster Bank 3,500 3,500
Series 1990 B, 3.20%, LOC Nat'l. Westminster Bank 12,600 12,600
Series 1991 B, 3.20%, (MBIA Insured), SBPA
NMB Postbank Groep NV 30,000 30,000
University of Missouri RAN Series 1994-95A, 4.50%
6/30/95 11,000 11,057
78,407
NEVADA - 5.0%
Clark County Ind. Dev. Rev. (Nevada Pwr. Co. Proj.)
Series 1989 A, 3.30%, LOC Citibank, VRDN (b) 43,600 43,600
Clark County Poll. Cont. Rev. Bonds (Southern California
Edison Co.) Series 1987 A: (b)
3.10% tender 11/9/94 5,000 5,000
3.30% tender 11/9/94 5,000 5,000
3.40% tender 11/15/94 7,615 7,615
Henderson Pub. Impt. Trust Multi-Family Hsg. Rev. Bonds
(Victory Village Proj.) 4.45% tender 10/24/94 (b) 15,000 15,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
NEVADA - CONTINUED
Las Vegas Local Impt. Updates Spl. Impt. Dist. #404
Rev. Bonds (Summerlin Area), 3.50% tender 9/7/94,
LOC Tokai Bank $ 1,300 $ 1,300
Nevada Director State Dept. Comm. Ind. Rev.
(Primex Corp.), 3.40%, LOC Bank One, VRDN (b) 2,245 2,245
Washoe County Gas Facs. Rev. Bonds (Sierra Pacific Pwr. Co.)
Series 1990: (b)
3.20% tender 10/11/94, LOC Union Bank of Switzerland 15,315 15,315
3.25% tender 10/13/94, LOC Union Bank of Switzerland 5,000 5,000
3.30% tender 11/9/94, LOC Union Bank of Switzerland 2,050 2,050
3.40% tender 11/14/94, LOC Union Bank of Switzerland 2,990 2,990
3.40% tender 11/15/94, LOC Union Bank of Switzerland 10,000 10,000
115,115
NEW HAMPSHIRE - 0.6%
New Hampshire Higher Ed. Rev. Bonds (Dartmouth College),
3.55% tender 12/1/94 (b) 1,670 1,670
New Hampshire Hsg. Fin. Auth. (Fairways Proj.), 3.15%,
LOC General Electric Capital Corp., VRDN (b) 10,000 10,000
New Hampshire Hsg. Fin. Auth. Multi-Family Hsg. Rev. Rfdg.
(Nashua-Oxford Proj.) Series 1990, 3.30%, VRDN 1,100 1,100
12,770
NEW JERSEY - 0.4%
Essex County TAN 3.75% 12/19/94 10,000 10,019
NEW MEXICO - 1.0%
New Mexico Ed. Assistance Fund Student Loan Rev.
Series I, 3.30%, VRDN (b) 22,810 22,810
NEW YORK - 3.8%
New York City RAN Series A, 4.50% 4/12/95 33,000 33,108
New York City TAN 4.25% 2/15/95 43,000 43,106
New York Throughway Auth. Gen. Rev. BAN,
Series 1994, 4.19% 4/14/95 10,700 10,700
86,914
NORTH CAROLINA - 1.0%
Cleveland County Ind. Fac. & Poll. Cont. Fin. Auth. Solid Waste
Disp. (PPG Ind. Proj.), 3.40%, VRDN 3,300 3,300
Johnston County Ind. Facs. Poll. Cont. Rev. Fin. Auth. Ind.
Dev. Rev. (Kabivitrum Inc. Proj.) 3.20%,
LOC Wachovia, VRDN 2,000 2,000
North Carolina Muni. Pwr. Agcy. No. 1 (Catawba Electric),
3.35% 10/25/94, CP 6,400 6,400
Piedmont Triad Arpt. Auth. Spl. Facs. Rev. (Triad Int'l.
Maintenance Corp. Proj.) Series 1989, 3.35%,
LOC Mellon Bank, VRDN (b) 10,300 10,300
22,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
NORTH DAKOTA - 0.1%
Mercer County Solid Waste Disp. Rev. Bonds (United Pwr. Proj.),
3.35% tender 12/1/94 (b) $ 3,500 $ 3,500
OHIO - 4.1%
Dayton Spl. Facs. Rev. Rfdg. (Emery Air Freight Corp. Proj.)
Series 1988 D, 3.45%, LOC Mellon Bank, VRDN (b) 10,000 10,000
Middletown Ind. Dev. Rev. (Pilot Chemical Proj.) 3.40%,
LOC Bank One, VRDN (b) 1,000 1,000
Ohio Air Quality Dev. Auth. Rev. Bonds (Cleveland Elec.)
Series 1988 B, 2.70% tender 9/8/94, FGIC Insured 11,500 11,500
Ohio Wtr. Dev. Auth. Poll. Cont. Rev. Bonds:
(Cleveland Elec. Proj.):
Rfdg. Series 1988 A, 3.20% tender 10/13/94,
(FGIC Insured) 3,000 3,000
Series 1988 A-1:
3.30% tender 9/12/94, LOC Citibank (b) 10,600 10,600
3.20% tender 9/13/94, LOC Citibank (b) 7,000 7,000
Series 1988 A-2, 3.20% tender 9/14/94, LOC Citibank (b) 16,000 16,000
(Duquesne Light Co. Proj.):
3% tender 9/13/94, LOC Toronto Dominion Bank (b) 6,950 6,950
3.25% tender 10/13/94, LOC Toronto Dominion (b) 3,000 3,000
(Toledo Edison Co. Proj.) Series 1988 A, 3.20% tender
9/15/94, LOC Citibank (b) 19,190 19,190
Student Loan Fund Corp. Student Loan Rev., Series 1990-A2,
3.25%, LOC Nat'l. Westminister, VRDN (b) 4,000 4,000
Summit County Ind. Dev. Rev. (Ganzhorn Properties Project)
3.40% LOC Bank One, Akron, VRDN 1,155 1,155
93,395
OKLAHOMA - 0.9%
Oklahoma Ind. Auth. Adj. Rate Ind. Rev. (Farley Candy),
3.40%, LOC Continental Bank Corp., VRDN (b) 3,000 3,000
Oklahoma Ind. Fin. Auth. Gen. Oblig. Ind. Fin. Rev. Bonds,
Series L, 3.35% tender 11/1/94,
LOC Credit Locale de France (b) 7,600 7,600
Southeastern Ind. Auth. Solid Wst. Disp. Rev.
(Weyerhaeuser Co. Proj.) 3.39%, VRDN (b) 9,000 9,000
19,600
OREGON - 0.5%
Oregon Econ. Dev. Dept. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) Series CL, 3.40%, VRDN (b) 3,000 3,000
Port Umatilla Ltd. Oblig. Rev. (Hermiston Food Proj.)
Series 1989, 3.45%, LOC U.S. Nat'l. Bank of Oregon,
VRDN (b) 4,900 4,900
Portland Econ. Dev. Rev. (Columbia Aluminum Recycling) 3.25%,
LOC U.S. Bank of Oregon, VRDN (b) 3,550 3,550
11,450
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
PENNSYLVANIA - 5.7%
Butler County Ind. Dev. Rev. (JSM Acquisition Corp. Proj.)
Series 1989 A, 3.40%, LOC Pittsburgh Nat'l. Bank,
VRDN (b) $ 1,950 $ 1,950
Carbon County Ind. Dev. Auth. Resource Recovery Rev. Bonds
(Panther Creek Partners Proj.): (b)
Series B:
3.05% tender 10/11/94, LOC Nat'l. Westminster 4,000 4,000
3.20% tender 10/24/94, LOC Nat'l. Westminster 6,990 6,990
3.20% tender 10/26/94, LOC Nat'l. Westminster 7,000 7,000
3.30% tender 11/9/94, LOC Nat'l. Westminster 2,700 2,700
3.40% tender 11/10/94, LOC Nat'l. Westminster 8,285 8,285
Series 1990 A:
3.20% tender 10/11/94, LOC Nat'l. Westminster 10,000 10,000
3.20% tender 10/26/94, LOC Nat'l. Westminster 1,000 1,000
Series 1991 A:
3.20% tender 10/25/94, LOC Nat'l. Westminster 9,575 9,575
3.40% tender 11/10/94, LOC Nat'l. Westminster 1,400 1,400
Series 1992 A, 3.20% tender 10/17/94,
LOC Nat'l. Westminster 5,000 5,000
Delaware Valley Regional Fin. Auth. Local Gov't. Rev.,
Series 1986, 3.20%, LOC Marine Midland Bank, VRDN 1,800 1,800
Erie County Ind. Dev. Auth. Rev. (Carlisle Corp. Proj.)
Series 1993, 3.25%, LOC Trust Co. of Georgia, VRDN (b) 1,500 1,500
Northhampton County Ind. Dev. Auth. Rev. Bonds
(Citizens Utilities Co. Proj.) Series 1991, 3% tender
10/11/94 (b) 2,000 2,000
Northumberland County Ind. Dev. Auth Rev.
(Foster Wheeler Mt. Carmel Inc. Proj.), VRDN: (b)
Series 1987 A, 3.25%, LOC Union Bank of
Switzerland 9,600 9,600
Series 1987 B, 3.25%, LOC Union Bank of
Switzerland 1,200 1,200
Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN: (b)
(BPS Dev. Proj.) Series 1989 D-3, 3.40%,
LOC Pittsburgh Nat'l. Bank 250 250
(C&D Charter Pwr. Sys.) Series 1991 D-6, 3.40%,
LOC Pittsburgh Nat'l. Bank 1,400 1,400
(Corry Laser Technology Proj.) Series 1989 D-5, 3.40%,
Pittsburgh Nat'l. Bank 200 200
(Johnstown Corp. Proj.) 3.40%,
LOC Pittsburgh Nat'l. Bank 600 600
Pennsylvania State Higher Ed. Assistance Agcy. (Student Loan),
3.20%, LOC Union Bank of Switzerland, VRDN (b) 1,300 1,300
Philadelphia Ind. Dev. Auth. Commercial Dev. Rev.
(Airport Hotel Proj.) Series 1990, 3.10%
LOC Citibank, VRDN (b) 11,000 11,000
Philadelphia TRAN Series 1994-95 D, 4.75% 6/15/95,
LOC Morgan Guaranty 14,500 14,599
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
PENNSYLVANIA - CONTINUED
Venango Ind. Dev. Auth. Resource Recovery Rev. Bonds,
(Scrubgrass Proj.): (b)
Series 1990 A:
3.10% tender 10/7/94, LOC Nat'l. Westminster $ 5,000 $ 5,000
3.20% tender 10/17/94, LOC Nat'l. Westminster 2,400 2,400
3.30% tender 11/9/94, LOC Nat'l. Westminster 2,750 2,750
Series 1990 B:
3.05% tender 10/11/94, LOC Nat'l. Westminster 3,100 3,100
3.20% tender 10/14/94, LOC Nat'l. Westminster 4,900 4,900
3.40% tender 11/10/94, LOC Nat'l. Westminster 7,800 7,800
129,299
RHODE ISLAND - 0.1%
Providence Pub. Parking (Washington Street Garage Proj.)
Series 1991, 3.15%, LOC Credit Suisse, VRDN (b) 3,000 3,000
SOUTH CAROLINA - 2.4%
Dorchester County Ind. Dev. Rev. (SYN Strand Inc.)
Series 1994, 3.25%, LOC Wachovia B&T NA, VRDN (b) 6,650 6,650
Marion County Ind. Dev. Rev. (New South Proj.) Series 1994,
3.40%, LOC Nationsbank, VRDN (b) 3,000 3,000
South Carolina Jobs Econ. Dev. Auth. Econ. Dev. Rev.
(Zeuna Staerker USA Inc. Proj.) Series 1993, 3.40%,
LOC Bayerische Landesbank, VRDN 7,200 7,200
South Carolina Jobs Econ. Dev. Auth. Rev., VRDN: (b)
(Alexander Mach Inc. Proj.) Series 1994, 3.40%,
LOC NationsBank 2,500 2,500
(Jackson Mills Inc. Proj.) Series 1988 C, 3.25%,
LOC Trust Co. of Georgia 3,475 3,475
(Peace Textile America Proj.) Series 1992, 3.40%,
LOC NationsBank 3,000 3,000
South Carolina Jobs Econ. Dev. Auth. Tax Exempt Adj.
Mode (Wellman Inc. Proj.) 3.25%, LOC Wachovia
Bank & Trust, VRDN (b) 4,500 4,500
South Carolina Port Auth. Jr. Lien, 3.25%,
LOC South Carolina Nat'l. Bank, VRDN (b) 20,700 20,700
Spartanburg County Tax Exempt Adj. Mode Ind. Dev. Rev.
(Prym-Dritz Corp. Proj.) 3.25%, LOC Wachovia Bank &
Trust, VRDN (b) 4,500 4,500
55,525
TENNESSEE - 2.6%
Anderson Ind. Dev. Board (Becromal of America Proj.)
Series 1988, 3.35%, LOC Credito Italiano, VRDN (b) 2,000 2,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
TENNESSEE - CONTINUED
Carter County Ind. Dev. Board Multi-Family Hsg. Rev. Rfdg.
(Willow Run Apts.) Series 1990, 3.45%, LOC Sumitomo
Trust & Banking, Sumitomo Bank, VRDN (b) $ 6,675 $ 6,675
Claiborne County Ind. Dev. Rev. (Royal Sterilization System)
3.45%, LOC First Tennessee Nat'l. Corp., VRDN (b) 3,800 3,800
Hamilton County Ind. Dev. Rev. Multi-Family Hsg.
(Waterford Place Apts. Proj.) Series 1987, 3.85%,
LOC Marine Midland Bank, VRDN (b) 10,300 10,300
Knox County Ind. Dev. Rev. (Rock-Tenn Converting CP Proj.)
Series 1993, 3.25%, LOC Trust Company Bank, VRDN (b) 1,000 1,000
Memphis Gen. Oblig. Arpt. Rev., Series 1987 D, 3.30%,
LOC Ind. Bank of Japan, VRDN (b) 10,400 10,400
Memphis Ind. Dev. Rev. (Techno Steel Corp.) Series 1989,
3.35%, LOC Mitsui Bank, VRDN (b) 4,000 4,000
Metropolitan Gov't. Nashville & Davidson County Ind. Dev.
Board Multi-Family Hsg. Rev. Rfdg. Bonds (Amberwood Proj.):
Series 1993 A, 4% tender 7/1/95, LOC First Bank 1,885 1,885
Series 1993 B, 4% tender 7/1/95, LOC First Bank 2,135 2,135
Morristown Ind. Dev. Rev., VRDN: (b)
(Lakeway Container Inc. Proj.) Series 1993, 3.45%,
LOC First Tennessee Bank, NA 400 400
(Tuff Torq Corp. Proj.) Series 1989, 3.40%,
LOC Bank of Tokyo 4,950 4,950
Tennessee Hsg. Dev. Agency Participating VRDN,
Series PT-25, 3.40%, (AMBAC Insured)
(Liquidity Facility Credit Suisse) (b) (c) 7,840 7,840
Trenton Ind. Dev. Rev. (Dyersburg Fabrics Inc.) Series 1990,
3.25%, LOC Trust Co. of Georgia, VRDN (b) 1,050 1,050
Volunteer State Student Funding Corp. Student Loan Rev.,
Series 1988 A-1, 3.15%, LOC Sumitomo Bank,
VRDN (b) 4,000 4,000
60,435
TEXAS - 12.4%
Brazos Higher Ed. Auth. Student Loan Rev., Series B, 3.30%,
LOC Nat'l. Australia Bank, VRDN (b) 10,000 10,000
Brazos River Auth. Collateralized Poll. Cont. Rev. Rfdg. Bonds
(Texas Util. Elec.):
Series A, 3.25% tender 10/11/94,
LOC Canadian Imperial Bank (b) 10,670 10,670
Series B, 3.35% tender 9/15/94,
LOC Canadian Imperial Bank (b) 5,520 5,520
Brazos River Harbor Navigation Dist. of Brazoria County
Rev. Bonds (Dow Chemical): (b)
Series 1988:
3.05% tender 9/13/94 6,900 6,900
3.05% tender 10/7/94 7,370 7,370
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
TEXAS - CONTINUED
Brazos River Harbor Navigation Dist. of Brazoria County
Rev. Bonds (Dow Chemical) (b) - continued
Series 1988 - continued
3.25% tender 10/12/94 $ 1,200 $ 1,200
3.20% tender 10/14/94 7,400 7,400
3.20% tender 10/19/94 1,000 1,000
3.40% tender 11/10/94 7,500 7,500
3.40% tender 11/14/94 4,000 4,000
Series 1992:
3.05% tender 9/13/94 4,000 4,000
3.05% tender 10/7/94 5,660 5,660
3.20% tender 10/19/94 1,600 1,600
3.20% tender 10/25/94 11,350 11,350
3.30% tender 11/9/94 4,590 4,590
3.40% tender 11/10/94 2,500 2,500
Series 1993, 3.35%, VRDN 3,500 3,500
Brownsville Ind. Dev. Corp. Rev. (Rich-Seapak Corp. Proj.)
Series 1992, 3.25%, LOC Trust Co. of Georgia, VRDN (b) 7,750 7,750
Cleburne Ind. Dev. Rev. (Southwestern Analytical Chemical
Proj.) 3.65%, LOC Nat'l. City Bank, VRDN (b) 3,075 3,075
Denton County Ind. Dev. Rev. (Hydro Conduit Corp.) 3.35%,
LOC Union Bank of Switzerland, VRDN (b) 6,900 6,900
Greater East Texas Higher Ed. Auth. Student Loan Rev.,
VRDN: (b)
Rfdg., Series 1992 B, 3.10%, LOC Student
Loan Mktg. Assoc. 5,700 5,700
Series 1988, 3.20%, (AMBAC Insured), SBPA Citibank 7,500 7,500
Series 1988 A, 3.20%, (AMBAC Insured), SBPA Citibank 39,740 39,740
Series 1991 A, 3.25%, LOC Student Loan
Marketing Assoc. 15,500 15,500
Gulf Coast Waste Disp. Auth. Solid Waste Disp. Rev. Bonds
(Amoco Oil Co. Proj.) Series 1991, 2.95% tender
10/1/94 (b) 3,000 3,000
Lower Colorado River Auth., Series B, 2.85% 9/7/94,
(Liquidity Facility Morgan Guaranty Trust), CP 1,600 1,600
North Texas Higher Ed. Student Loan Rev., VRDN: (b)
Series 1991 C, 3.20%, (AMBAC Insured) SBPA Student Loan
Marketing Assoc. 14,000 14,000
Series 1991 F, 3.20%, (AMBAC Insured) SBPA Student Loan
Marketing Assoc. 2,700 2,700
Series 1993 A, 3.20%, LOC Student Loan Marketing
Assoc. 7,200 7,200
San Antonio Electric & Gas Systems, Series A, 3.05%
10/13/94, CP 12,000 12,000
San Antonio Hsg. Fin. Auth. Rev., VRDN: (b)
(Braesview Apts. Proj.) 3.25%, LOC Swiss Bank 2,100 2,100
(Mesa Ridge Apts. Proj.) 3.25%, LOC Swiss Bank 2,100 2,100
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
TEXAS - CONTINUED
Southeast Texas Hsg. Fin. Corp. Participating VRDN,
Series 1991 C, 3.50%, (Liquidity Facility Bank
One) (b) (c) $ 9,140 $ 9,140
Texas Gen. Oblig. Tender Option Ctfs., Series JJ, 3.45%,
(Liquidity Facility Nova Scotia), VRDN (c) 10,300 10,300
Texas Pub. Fin. Auth. Gen. Oblig. Bonds: (c)
Series GG1, 3.50% tender 10/4/94,
(Liquidity Facility Canadian Imperial Bank) 5,000 5,000
Series GG2, 3.50% tender 10/4/94,
(Liquidity Facility Canadian Imperial Bank) 6,700 6,700
Texas Small Bus. Ind. Dev. Corp. Rev. (Pub. Facs. Prog.) 3.15%,
LOC Mitsubishi Trust, Mitsubishi Bank, Nat'l. Westminster,
Sumitomo Trust, VRDN 20,195 20,195
Travis County Hsg. Fin. Corp. Multi-Family Hsg. Rev.
(Primecrest Ltd. Proj.), VRDN: (b)
Series 1990 A, 3.40%, LOC Algemene Bank 500 500
Series 1990 B, 3.40%, LOC Algemene Bank 1,200 1,200
Waxahachie Ind. Dev. Auth. (Rock-Tenn Converting Co. Proj.)
Series 1986, 3.25%, LOC Trust Co. of Georgia,
VRDN (b) 3,950 3,950
282,610
UTAH - 2.1%
Intermountain Pwr. Agency Participating VRDN,
Series BT-50, 3.65%, (SBPA Bankers Trust) (c) 9,690 9,690
Tooele County Waste Rev. Bonds
(Union Pacific Corp./USPCI Proj.) Series 1992 A: (b)
3.05% tender 9/12/94, (Liquidity Facility
Union Pacific Corp.) 4,000 4,000
3.05% tender 10/3/94, (Liquidity Facility
Union Pacific Corp.) 5,500 5,500
3.15% tender 10/5/94, (Liquidity Facility
Union Pacific Corp.) 16,490 16,490
3.15% tender 10/7/94, (Liquidity Facility
Union Pacific Corp.) 3,900 3,900
3.25% tender 10/14/94, (Liquidity Facility
Union Pacific Corp.) 2,800 2,800
Utah County Ind. Dev. Rev. (McWane Inc. Proj.) Series 1992,
3.25%, LOC Amsouth Bank, VRDN (b) 5,000 5,000
47,380
VERMONT - 0.1%
Vermont Ind. Dev. Auth. Rev. (Ryegate Proj.) Series 1990,
3.25%, LOC Algemene Bank, VRDN (b) 3,000 3,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
VIRGINIA - 3.1%
Amelia County Facs. Rev. (Chambers Waste Sys. Proj.),
3.50%, LOC NationsBank, VRDN (b) $ 4,900 $ 4,900
Amherst Ind. Dev. Auth. Solid Wst. Rev. (Nekoosa Pkg. Proj.)
3.25%, LOC Ind. Bank of Japan, VRDN (b) 2,750 2,750
Halifax County Ind. Dev. Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. Pwr. Co.) Series 1992: (b)
3.10% tender 9/21/94 2,000 2,000
3.20% tender 10/7/94 20,000 20,000
3.20% tender 10/13/94 13,100 13,100
Hampton Roads Sanitation Dist. Participating VRDN,
Series 1993, 3.40%, (Liquidity Facility Bankers Trust
Co.) (b) (c) 6,505 6,505
Henrico County Ind. Dev. Auth. Rfdg. (San-J Int'l. Proj.)
Series 1988, 3.80%, LOC Tokai Bank, VRDN (b) 2,500 2,500
Richmond Ind. Dev. Auth. Rev. (Cogentrix Richmond Inc. Proj.)
Series 1991 B, 3.35%, LOC Banque Paribas, VRDN (b) 2,500 2,500
Virginia Beach Dev. Auth. Rfdg. Rev. (Ocean Ranch Motel Corp.
Proj.) Series 1993, 3.40%, LOC Nationsbank, VRDN 2,000 2,000
Virginia Hsg. Dev. Auth. Bonds (Commonwealth Mtg.)
Series C, 2.90% tender 11/4/94 (b) 6,030 6,030
Virginia Hsg. Dev. Auth. Participating VRDN: (b) (c)
Series PA-80 A, 3.30%, (Liquidity Facility Merrill Lynch) 5,220 5,220
Series PA-80 B, 3.30%, (Liquidity Facility Merrill Lynch) 4,000 4,000
71,505
WASHINGTON - 4.1%
Grays Harbor Ind. Dev. Corp. Solid Wst. Disp. Rev.
(Weyerhaeuser Co. Proj.) 3.40%, VRDN, (b) 9,650 9,650
Klickitat County Pub. Corp. Ind. Dev. Rev. (Rabanco Landfill
Proj.) Series 1990, 3.45%, LOC Bank of America,
VRDN (b) 12,000 12,000
Pierce County Econ. Dev. Corp. Ind. Dev. Rev., VRDN: (b)
(Pacific N.W. Baking Co. Proj.) Series 1988, 3.25%,
LOC Barclays Bank 1,110 1,110
(Pickering Ind.) Series 1990-1, 3.25%,
LOC Ind. Bank of Japan 1,865 1,865
Pierce County Ind. Rev. (America Nichirei Foods Corp.)
Series 1987, 3.30%, LOC Fuji Bank, VRDN (b) 6,500 6,500
Port Angeles Ind. Dev. Corp. (Daishowa America Proj.),
VRDN: (b)
Series 1991, 3.30%, LOC Ind. Bank of Japan 5,500 5,500
Series 1992 B, 3.45%, LOC Ind. Bank of Japan 3,300 3,300
Port Bellingham Ind. Dev. Rev. (Sauder Woodcraft Corp.),
3.45%, LOC Bank of America, VRDN (b) 4,080 4,080
Port Longview Ind. Dev. Corp. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) Series 1993, 3.40%, VRDN 20,400 20,400
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
WASHINGTON - CONTINUED
Washington Commty. Econ. Revitalization Rev., VRDN: (b)
(Ace USA) Series 1990-2, 3.25%,
LOC Ind. Bank of Japan $ 1,165 $ 1,165
(Flying Food Fare) Series 1990-3, 3.25%
LOC Ind. Bank of Japan 1,100 1,100
(Sanken USA) Series 1988-1, 3.25%,
LOC Ind. Bank of Japan 5,190 5,190
Washington Pub. Pwr. Supply Sys. Rfdg. Elec. Rev.,
Series 1993 3A-2, 3.20%, LOC Ind. Bank of Japan,
VRDN 4,935 4,935
Washington Student Loan Fin. Assoc.
Guaranteed Student Loan Prog. Rev., VRDN: (b)
Series 1987 A, 2.90%, LOC Sanwa Bank of California,
Sanwa Bank 7,500 7,500
Series 1987 B, 2.90%, LOC Sanwa Bank of California,
Sanwa Bank 9,200 9,200
93,495
WEST VIRGINIA - 2.7%
Grant County Commission Rev. (N.B. Partners Ltd.) Series-B,
3.15%, LOC Bank of America, VRDN (b) 22,700 22,700
Grant County Poll. Cont. Rev. Bonds (Vepco Proj.)
Series 1986: (b)
3.20% tender 10/7/94 5,850 5,850
3.10% tender 10/11/94 1,550 1,550
Marion County Solid Wst. Disp. Rev. (Grant Town Cogeneration
Proj.) Series 1990 D, 3.25%, LOC Nat'l. Westminster USA,
VRDN (b) 2,600 2,600
West Virginia Pub. Energy Auth. Energy Rev. Bonds
(Morgantown Energy Assoc.): (b)
3% tender 9/12/94, LOC Swiss Bank. 10,000 10,000
3.05% tender 9/20/94, LOC Swiss Bank 15,000 15,000
Wood County Ind. Dev. Rev. (AGA Gas Inc. Proj.) Series 1988,
3.10%, LOC Svenska Handelsbanken, VRDN (b) 3,800 3,800
61,500
WISCONSIN - 2.3%
Ashwaubenon Ind. Dev. Rev. (Tufco Proj.) Series 1992, 3.40%,
LOC Bank One, VRDN (b) 2,000 2,000
Milwaukee Short-Term School RAN, Series 1994-B, 5%
8/24/95 17,000 17,120
Wisconsin Hsg. & Econ. Dev. Auth. Participating VRDN,
Series 94C4903, 3.37%, (Liquidity Facility Citibank) (b) (c) 12,700
12,700
Wisconsin TRAN Series 1994, 4.50% 6/15/95 20,000 20,094
51,914
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
WYOMING - 0.4%
Sweetwater County Envir. Impt. Rev. Bonds
(Pacificorp Proj.) Series 1990 A:
3.25% tender 10/13/94, LOC Nat'l. Westminster $ 3,880 $ 3,880
3.20% tender 10/19/94, LOC Nat'l. Westminster 1,200 1,200
3.40% tender 11/10/94, LOC Nat'l. Westminster 3,500 3,500
8,580
MULTIPLE STATE - 0.1%
Los Angeles Reg'l. Arpt. Impt. Facs. Lease Rev., 3.30%,
LOC Societe Generale, VRDN (b) 1,425 1,425
TOTAL INVESTMENTS - 100% $ 2,284,157
Total Cost for Income Tax Purposes $ 2,284,157
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
(d) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(e) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(f) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At August 31 1994, the fund had a capital loss carryforward of
approximately $47,400 of which $900, $700 and $45,800 will expire on August
31, 1999, 2001 and 2002, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) AUGUST 31, 1994
4.ASSETS 5. 6.
7.Investment in securities, at value - See accompanying 8. $ 2,284,157
schedule
9.Cash 10. 935
11.Receivable for investments sold 12. 5,000
13.Interest receivable 14. 9,472
15. 16.TOTAL ASSETS 17. 2,299,564
18.LIABILITIES 19. 20.
21.Payable for investments purchased $ 10,700 22.
23.Dividends payable 195 24.
25.Accrued management fee 797 26.
27. 28.TOTAL LIABILITIES 29. 11,692
30.31.NET ASSETS 32. $ 2,287,872
33.Net Assets consist of: 34. 35.
36.Paid in capital 37. $ 2,287,917
38.Accumulated net realized gain (loss) on investments 39. (45)
40.41.NET ASSETS, for 2,287,917 shares outstanding 42. $ 2,287,872
43.44.NET ASSET VALUE, offering price and redemption 45. $1.00
price per share ($2,287,872 (divided by) shares)
</TABLE>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED AUGUST 31, 1994
46.47.INTEREST INCOME 48. $ 59,717
49.EXPENSES 50. 51.
52.Management fee $ 10,607 53.
54.Non-interested trustees' compensation 13 55.
56. Total expenses before reductions 10,620 57.
58. Expense reductions (3,603) 7,017
59.60.NET INTEREST INCOME 61. 52,700
62.63.NET REALIZED GAIN (LOSS) ON INVESTMENTS 64. (44)
65.66.NET INCREASE IN NET ASSETS RESULTING FROM 67. $ 52,656
OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEARS ENDED AUGUST 31,
1994 1993
68.INCREASE (DECREASE) IN NET ASSETS
69.Operations $ 52,700 $ 40,821
Net interest income
70. Net realized gain (loss) (44) -
71. Increase (decrease) in net unrealized gain from - (3)
accretion of market discount
72. 73.NET INCREASE (DECREASE) IN NET ASSETS 52,656 40,818
RESULTING FROM OPERATIONS
74.Dividends to shareholders from net interest income (52,700) (40,821)
75.Share transactions at net asset value of $1.00 per 3,611,432 2,593,880
share
Proceeds from sales of shares
76. Reinvestment of dividends from net interest income 50,122 38,476
77. Cost of shares redeemed (3,069,334) (2,239,905)
78. Net increase (decrease) in net assets resulting 592,220 392,451
from
share transactions
79. 80.TOTAL INCREASE (DECREASE) IN NET ASSETS 592,176 392,448
81.NET ASSETS 82. 83.
84. Beginning of period 1,695,696 1,303,248
85. End of period $ 2,287,872 $ 1,695,696
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
86. YEARS ENDED AUGUST 31, JANUARY 14, 199
1
(COMMENCEME
NT
OF OPERATIONS) T
O
AUGUST 31,
87. 1994 1993 1992 1991
88.SELECTED PER-SHARE DATA
89.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of period
90.Income from Investment .025 .026 .038 .030
Operations
Net interest income
91.Less Distributions (.025) (.026) (.038) (.030)
From net interest income
92.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
93.TOTAL RETURN B 2.50% 2.66% 3.91% 3.03%
94.RATIOS AND
SUPPLEMENTAL DATA
95.Net assets, end of period $ 2,288 $ 1,696 $ 1,303 $ 424
(in millions)
96.Ratio of expenses to .33% .27% .20% .09%A
average
net assets C
97.Ratio of expenses to .50% .50% .50% .50%A
average
net assets before expense
reductions C
98.Ratio of net interest 2.48% 2.61% 3.67% 4.69%A
income to
average net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C SEE NOTE 3 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1994
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.
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) 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 $44,000.
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 a specified percentage of average net assets. During this
period, this expense limitation ranged from .32% to .40% of average net
assets and the reimbursement reduced expenses by $3,603,000. 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.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Fidelity Union Street Trust II:
Spartan Municipal Money Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Union Street Trust II: Spartan Municipal Money Fund, including the
schedule of portfolio investments, as of August 31, 1994, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended and the
financial highlights for each of the three years in the period then ended,
and for the period January 14, 1991(commencement of operations) to August
31, 1991. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Union Street Trust II: Spartan Municipal Money Fund as of
August 31, 1994, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the three years in the
period then ended, and for the period January 14, 1991 (commencement of
operations) to August 31, 1991, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
September 29, 1994
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 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)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
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)(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)(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.
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
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
2249 Galiano Street
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
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
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
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
4611 Sharon Road
Charlotte, 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
Page 38 = BLANK
Do NOT strip-in this type
Page 39 = BLANK
Do NOT strip-in this type
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
Fred L. Henning, Jr., Vice President
Sarah Zenoble, Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, 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
and
United Missouri Bank, N.A.
Kansas City, MO
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
(registered trademark)
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
