FIDELITY UNION STREET TRUST II, N-30D, 1995-04-11

FIDELITY UNION STREET TRUST II
N-30D, 1995-04-11

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FIDELITY

(registered trademark)
DAILY INCOME
TRUST
SEMIANNUAL REPORT
FEBRUARY 28, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

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

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

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, 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 FEBRUARY 28, 1995 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

Fidelity Daily Income Trust 2.49% 4.34% 25.78% 78.98%

Average All Taxable
Money Market Fund 2.40% 4.18% 25.06% 77.10%

Consumer Price Index 1.28% 2.86% 17.89% 42.36%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or 10
years. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. To
measure how the fund's performance stacked up against its peers, you can
compare it to the average all taxable money market fund's total return
which reflects the performance of 713 all taxable money market funds with
similar objectives tracked by IBC/Donoghue during the period covered by
this report. Comparing the fund's performance to the consumer price index
(CPI) helps show how your investment did compared to inflation. (The
periods covered by the IBC/Donoghue numbers are the closest available match
to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Fidelity Daily Income Trust 4.34% 4.69% 5.99%

Average All Taxable
Money Market Fund 4.18% 4.57% 5.88%

Consumer Price Index 2.86% 3.35% 3.59%

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
3/1/94 5/31/94 8/30/94 11/29/94 2/28/95

2.76% 3.62% 4.27% 5.02% 5.66%
Fidelity Daily Income Trust

Average All Taxable 2.79% 3.51% 4.08% 4.84% 5.49%
Money Market Fund

2/23/94 6/1/94 8/25/94 11/30/94 3/1/95

2.32% 2.38% 2.45% 2.68% 2.88%
MMDA

Row: 1, Col: 1, Value: 2.75
Row: 1, Col: 2, Value: 2.79
Row: 1, Col: 3, Value: 2.32
Row: 2, Col: 1, Value: 3.62
Row: 2, Col: 2, Value: 3.51
Row: 2, Col: 3, Value: 2.38
Row: 3, Col: 1, Value: 4.27
Row: 3, Col: 2, Value: 4.08
Row: 3, Col: 3, Value: 2.45
Row: 4, Col: 1, Value: 5.03
Row: 4, Col: 2, Value: 4.84
Row: 4, Col: 3, Value: 2.68
Row: 5, Col: 1, Value: 5.659999999999999
Row: 5, Col: 2, Value: 5.49
Row: 5, Col: 3, Value: 2.88
6%--
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 the average all taxable money market fund and the
average bank money market deposit account (MMDA). Figures for the average
all taxable money market fund are from IBC/Donoghue. The MMDA average is
supplied by BANK RATE MONITOR.(Trademark)
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 KEPT ON RISING DURING THE PAST
SIX MONTHS. CAN YOU BRING US UP TO DATE?
A. Sure. Rates have risen, that's certainly true, but not at the same rate
or as frequently as the first half of 1994. From February to August, the
Federal Reserve raised the federal funds rate - the rate banks charge each
other for overnight loans - five times. Near the end of that period, the
Fed shifted toward a so-called neutral policy. Despite that, since August
there have been two additional rate increases: a surprising three-quarters
of a percentage point in November and one-half point in February 1995. By
the end of the period, the federal funds rate was 6.00%, exactly double
what it was a year ago, and monetary policy was perceived to be in a
restrictive mode.
Q. HAVE RATES PEAKED YET?
A. Possibly, although it's too early to say for sure. Throughout 1994, the
economic data were relatively positive. When the year ended, the economy
had grown at a rate of about 4%, well above the Fed's goal of 2.5% real
Gross Domestic Product. Despite that, inflation has remained well under
control. Key February economic indicators such as retail sales, housing
starts and industrial production also hinted at slower growth. That led
many market participants to believe that perhaps the peak in rates was
near, a view that Fed chairman Alan Greenspan reinforced in conciliatory
testimony before Congress.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
A. As rates rose, I shifted to a neutral-to-defensive posture by keeping
the average maturity between 30 and 45 days. The shorter the fund's average
maturity, the easier it is to keep pace with market rates. By the end of
January, the fund was as short as it's been in years - around 25 days - as
I prepared for the anticipated rate hike in February. In retrospect, that
was probably too short; I was expecting another three-quarter-point
increase, not the half-point increase that actually led to a market rally.
Since then, I've extended the fund's average maturity to around 43 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on February 28, 1995, was 5.66%, compared to
4.27% six months ago. The fund's total return during the six-month period
from the end of last August through the end of February was 2.49%. That
beat the 2.40% total return for the average all taxable money market funds
during the same period, according to IBC/Donoghue.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT FEW MONTHS?
A. Current market sentiment has it that rates may have peaked. I'm not so
sure. It wasn't long ago, after all, that many economists were predicting
short-term interest rates could reach 8% by the end of 1995. Those
projections now seem excessive. On the other hand, I'm not ready yet to
aggressively extend the fund's average maturity on the assumption that
rates aren't going to go any higher. The keys, as always, are inflation and
the strength of the economy, and in both areas some uncertainty remains.
The point is, while I don't think interest rates will continue rising
steadily in 1995, I think it's unlikely rates will begin to fall anytime
soon; they could even go up again one or more times before year's end. That
being the case, I'll probably keep the fund's average maturity in the
neutral range for now, meaning somewhere between 45 and 55 days.

FUND FACTS
GOAL: to provide current
income while maintaining a
stable $1.00 share price by
investing in high quality,
short-term securities
START DATE: May 31, 1974
SIZE: as of February 28,
1995, more than $2.2 billion
MANAGER: Burnell Stehman,
since 1985; manager, Fidelity
Daily Income Trust, 1979
- -1983; 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
2/28/95 8/31/94 2/28/94

0 - 30 48 59 54

31 - 90 42 25 37

91 - 180 10 15 8

181 - 397 0 1 1

WEIGHTED AVERAGE MATURITY
2/28/95 8/31/94 2/28/94

Fidelity Daily Income Trust 43 days 42 days 40 days

Average All Taxable
Money Market Fund* 40 days 42 days 53 days

ASSET ALLOCATION
AS OF FEBRUARY 28, 1995 AS OF AUGUST 31, 1994

Row: 1, Col: 1, Value: 49.0
Row: 1, Col: 2, Value: 49.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 0.0
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
Commercial
paper 49%
Bank CDs, BAs,
TDs, and notes 49%
Government
securities 2%
Other 0%
Commercial
paper 40%
Bank CDs, BAs,
TDs, and notes 39%
Government
securities 20%
Other 1%
*-SOURCE:-IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS FEBRUARY 28, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investments

BANKERS' ACCEPTANCES - 0.5%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Chemical Bank
3/29/95 6.00% $ 5,000 $ 4,977
Republic New York Corp.
3/14/95 6.05 5,000 4,989
TOTAL BANKERS' ACCEPTANCES 9,966
CERTIFICATES OF DEPOSIT - 2.7%
Chemical Bank
3/31/95 6.03 40,000 40,000
Old Kent Bank & Trust Co.
4/17/95 5.73 20,000 20,000
TOTAL CERTIFICATES OF DEPOSIT 60,000
COMMERCIAL PAPER - 49.5%
A.H. Robins Company, Incorporated
3/17/95 6.09 15,000 14,960
AVCO Financial Services, Inc.
3/8/95 6.10 10,000 9,988
American Express Credit Corp.
5/23/95 6.14 25,000 24,651
8/14/95 6.50 20,000 19,419
American Telephone & Telegraph Co.
3/1/95 5.90 5,000 5,000
3/20/95 5.70 45,000 44,867
3/21/95 5.70 25,000 24,923
8/7/95 6.42 35,000 34,038
Associates Corp. of North America
3/15/95 6.02 15,000 14,965
4/28/95 6.20 25,000 24,754
5/22/95 6.15 25,000 24,655
5/25/95 6.11 15,000 14,787
Bank of New York Company, Inc.
4/3/95 6.09 20,000 19,889
Bear Stearns Cos., Inc.
3/1/95 6.15 20,000 20,000
3/6/95 6.40 10,500 10,491
4/13/95 6.16 9,000 8,934
BellSouth Telecommunications, Inc.
4/13/95 6.18 9,000 8,934
CIT Group Holdings, Inc.
3/2/95 6.08 8,000 7,999
4/20/95 6.12 25,000 24,790
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Chrysler Financial Corporation
3/13/95 6.19% $ 5,000 $ 4,990
4/10/95 6.22 15,000 14,898
4/11/95 6.21 5,000 4,965
4/11/95 6.22 2,000 1,986
4/17/95 6.25 5,000 4,960
4/17/95 6.27 5,000 4,960
4/18/95 6.27 4,000 3,967
4/24/95 6.20 10,000 9,908
Citizens Utility Company
3/7/95 6.32 10,217 10,206
Cooper Industries, Inc.
3/20/95 6.12 4,000 3,987
Corporate Asset Funding Co., Inc.
4/10/95 6.17 10,200 10,131
Dayton Hudson Corp.
3/29/95 6.06 6,000 5,972
Electronic Data Systems Corp.
5/15/95 6.27 3,000 2,961
6/15/95 6.14 4,000 3,928
Ford Motor Credit Corp.
3/27/95 6.05 10,000 9,957
4/5/95 6.16 25,000 24,852
4/12/95 6.10 25,000 24,824
4/24/95 6.18 25,000 24,771
4/25/95 6.08 15,000 14,862
General Electric Capital Corp.
3/1/95 6.09 (a) 40,000 40,000
4/27/95 6.19 30,000 29,710
5/1/95 5.87 20,000 19,807
5/3/95 6.07 15,000 14,843
6/15/95 6.34 1,500 1,473
7/11/95 6.42 2,000 1,954
General Electric Capital Services Inc.
5/5/95 6.23 25,000 24,723
General Motors Acceptance Corp.
5/1/95 5.95 10,000 9,902
5/8/95 6.32 13,000 12,847
5/15/95 6.37 20,000 19,739
5/16/95 6.35 34,000 33,551
Golden Peanut Co.
6/2/95 6.27 15,000 14,762
Goldman Sachs Group, L.P. (The)
3/2/95 6.08 24,000 23,996
Household Finance Corp.
5/1/95 6.18 21,500 21,278
IBM Credit Corp.
4/4/95 6.01 20,000 19,887
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
ITT Corp.
3/6/95 6.13% $ 15,000 $ 14,987
3/22/95 6.20 4,200 4,185
ITT Financial
3/16/95 6.12 28,000 27,929
3/17/95 6.13 3,000 2,992
Merrill Lynch & Co., Inc.
5/15/95 6.19 10,000 9,875
5/16/95 6.19 5,000 4,937
Monsanto Co.
6/19/95 6.20 10,000 9,814
Morgan Stanley Group, Inc.
3/7/95 6.37 25,000 24,974
NationsBank Corp.
3/6/95 6.19 25,000 24,979
4/18/95 6.11 30,000 29,758
New Center Asset Trust
4/10/95 6.11 10,000 9,933
4/13/95 6.16 17,000 16,876
4/19/95 6.11 5,000 4,959
Norfolk Southern Corp.
8/14/95 6.40 25,000 24,285
Pepsico
6/1/95 6.33 3,000 2,952
Prudential Home Mortgage Co.
3/10/95 6.11 25,000 24,962
Textron, Inc.
3/6/95 6.20 2,000 1,998
3/20/95 6.16 2,000 1,994
3/24/95 6.10 1,000 996
U.S.L. Capital, Inc.
3/13/95 6.03 7,000 6,986
Whirlpool Financial Corp.
3/17/95 6.10 10,500 10,472
TOTAL COMMERCIAL PAPER 1,094,444
FEDERAL AGENCIES - 2.0%
FEDERAL FARM CREDIT BANK - AGENCY COUPON - 1.6%
3/1/95 6.17 (a) 35,000 34,971
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 0.4%
8/14/95 6.22 10,000 9,721
TOTAL FEDERAL AGENCIES 44,692
BANK NOTES - 27.3%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Bank of New York
3/1/95 6.69% (a) $ 15,000 $ 14,999
4/28/95 6.19 70,000 70,004
Bank One - Dayton
3/1/95 6.68 7,000 7,000
Bank One - Milwaukee
3/1/95 6.10 (a) 15,000 15,000
Boatmen's First National Bank of Kansas City
3/1/95 6.18 (a) 30,000 29,999
Boatmen's National Bank of St. Louis
3/1/95 6.18 (a) 25,000 24,998
Comerica Bank-Detroit
3/1/95 6.70 (a) 15,000 14,999
FCC National Bank
4/17/95 6.13 10,000 9,999
First National Bank of Boston
3/13/95 6.00 20,000 20,000
5/4/95 6.10 20,000 20,000
First of America Bank - Illinois
8/7/95 6.45 25,000 24,999
8/7/95 6.48 25,000 24,997
First of America Bank - Michigan
5/31/95 6.40 7,000 7,001
First of America Bank - Western Michigan
3/13/95 6.40 5,000 5,000
Fleet Bank of New York
5/15/95 6.23 10,000 9,999
Harris Trust & Savings Bank, Chicago
4/24/95 6.08 10,000 9,999
Huntington National Bank
3/1/95 6.15 (a) 23,000 22,992
Key Bank of New York
3/1/95 6.18 (a) 20,000 19,991
Mellon Bank, N.A.
5/11/95 6.17 20,000 20,000
NationsBank of North Carolina
6/7/95 6.35 2,000 1,993
7/21/95 6.32 15,000 14,949
NationsBank of Texas
4/26/95 6.20 25,000 25,000
5/1/95 6.20 10,000 10,000
NBD Bank, N.A.
4/7/95 5.80 20,000 20,000
5/2/95 6.15 45,000 44,970
PNC Bank, N.A.
3/1/95 6.17 (a) 35,000 34,978
Society National Bank
3/1/95 6.12 (a) 10,000 9,997
3/1/95 6.70 (a) 30,000 29,998
BANK NOTES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
U.S. National Bank of Oregon
8/22/95 6.37% $ 25,000 $ 25,001
Wachovia Bank of North Carolina, N.A.
3/24/95 6.01 15,000 15,000
TOTAL BANK NOTES 603,862
MASTER NOTES (A) - 2.4%
J.P. Morgan Securities
3/1/95 6.33 17,000 17,000
3/1/95 6.33 8,000 8,000
Morgan Stanley Group, Inc. (b)
3/1/95 6.33 10,000 10,000
Norwest Corp.
3/1/95 6.06 18,000 18,000
TOTAL MASTER NOTES 53,000
MEDIUM-TERM NOTES (A) - 10.0%
Beneficial Corp.
3/1/95 6.53 11,000 11,000
3/15/95 6.08 35,000 34,997
3/15/95 6.15 5,000 4,999
General Motors Acceptance Corp.
5/7/95 6.35 20,000 20,000
Goldman Sachs Group, L.P. (The) (c)
3/1/95 6.03 20,000 20,000
5/16/95 6.30 20,000 20,000
Merrill Lynch & Co., Inc.
3/1/95 6.13 10,000 10,000
Norwest Corp.
3/15/95 6.37 23,000 23,000
PHH Corp.
3/1/95 6.65 21,000 21,000
3/15/95 6.08 12,000 11,998
Pepsico
3/1/95 6.17 25,000 25,000
3/1/95 6.36 5,000 4,995
Society National Bank
3/1/95 6.12 13,000 12,996
TOTAL MEDIUM-TERM NOTES 219,985
SHORT-TERM NOTES (A) - 5.6%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Commonwealth Life Insurance Co.
3/1/95 6.23% $ 15,000 $ 15,000
Corporate Asset Funding Co., Inc. (c)
3/15/95 6.04 10,000 9,997
SMM Trust Company (1994 - A)(b)
3/17/95 6.34 85,000 85,000
3/17/95 6.45 5,000 5,000
SMM Trust Company (1994 - D)(b)
4/28/95 6.33 5,000 5,000
SMM Trust Company (1994 - E)(b)
4/13/95 6.33 3,000 3,000
4/13/95 6.42 1,000 1,000
TOTAL SHORT-TERM NOTES 123,997
REPURCHASE AGREEMENTS - 0.0%
MATURITY AMOUNT
(000S)
In a joint trading account
(U.S. Government Obligations)
dated 2/28/95 due 3/1/95:
(Note 2) At 6.14% $ 446 446
TOTAL INVESTMENTS - 100% $ 2,210,392
Total Cost for Income Tax Purposes $ 2,210,392

LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflect the next interest rate reset date or, when applicable,
the final maturity date.
(b) 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 $ 10,000
SMM Trust Company:
(1994-A) 3/18/94 $ 85,000
(1994-A) 6/28/94 $ 4,996
(1994-D) 4/28/93 $ 5,000
(1994-E) 4/13/94 $ 3,000
(1994-E) 5/23/94 $ 999

(c) 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 $49,977,000 or 2.2% of net
assets.
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) FEBRUARY 28, 1995 (UNAUDITED)

1.ASSETS 2. 3.

4.Investment in securities, at value (including 5. $ 2,210,392
repurchase agreements of $446) - See accompanying
schedule

6.Cash 7. 9,145

8.Interest receivable 9. 8,136

10. 11.TOTAL ASSETS 12. 2,227,673

13.LIABILITIES 14. 15.

16.Payable for investments purchased $ 3,928 17.

18.Dividends payable 387 19.

20.Accrued management fee 583 21.

22.Other payables and accrued expenses 425 23.

24. 25.TOTAL LIABILITIES 26. 5,323

27.28.NET ASSETS 29. $ 2,222,350

30.Net Assets consist of: 31. 32.

33.Paid in capital 34. $ 2,222,701

35.Accumulated net realized gain (loss) on investments 36. (351)

37.38.NET ASSETS, for 2,222,701 shares outstanding 39. $ 2,222,350

40.41.NET ASSET VALUE, offering price and redemption 42. $1.00
price per share ($2,222,350 (divided by) 2,222,701 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED FEBRUARY 28, 1995 (UNAUDITED)

43.44.INTEREST INCOME 45. $ 60,331

46.EXPENSES 47. 48.

49.Management fee $ 3,491 50.

51.Transfer agent fees 2,256 52.

53.Accounting fees and expenses 107 54.

55.Non-interested trustees' compensation 31 56.

57.Custodian fees and expenses 30 58.

59.Registration fees 25 60.

61.Audit 8 62.

63.Legal 7 64.

65.Miscellaneous 17 66.

67. 68.TOTAL EXPENSES 69. 5,972

70.71.NET INTEREST INCOME 72. 54,359

73.74.NET REALIZED GAIN (LOSS) ON INVESTMENTS 75. (97)

76.77.NET INCREASE IN NET ASSETS RESULTING FROM 78. $ 54,262
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 1995 AUGUST 31,
(UNAUDITED) 1994

79.INCREASE (DECREASE) IN NET ASSETS

80.Operations $ 54,359 $ 67,686
Net interest income

81. Net realized gain (loss) (97) (536)

82. 83.NET INCREASE (DECREASE) IN NET ASSETS 54,262 67,150
RESULTING FROM OPERATIONS

84.Dividends to shareholders from net interest income (54,359) (67,686)

85.Share transactions at net asset value of $1.00 per 3,216,941 6,210,672
share
Proceeds from sales of shares

86. Reinvestment of dividends from net interest income 52,995 66,153

87. Cost of shares redeemed (3,179,713) (6,240,368)

88. Net increase (decrease) in net assets and shares 90,223 36,457
resulting from share transactions

89. 90.TOTAL INCREASE (DECREASE) IN NET ASSETS 90,126 35,921

91.NET ASSETS 92. 93.

94. Beginning of period 2,132,224 2,096,303

95. End of period $ 2,222,350 $ 2,132,224

</TABLE>

SIX MONTHS YEARS ENDED AUGUST 31, EIGHT MONTHS YEAR

ENDED ENDED ENDED

FEBRUARY 28, 199 AUGUST 31, DECEMBER 31,

(UNAUDITED) 1994 1993 1992 1991 1990 1989

96.SELECTED PER-SHARE DATA

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

98.Income from Investment Operations
.025 .032 .028 .042 .064 .051 .087
Net interest income

99.Less Distributions
(.025) (.032) (.028) (.042) (.064) (.051) (.087)
From net interest income

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

101.TOTAL RETURN B
2.49% 3.23% 2.83% 4.32% 6.64% 5.22% 8.97%

102.RATIOS AND SUPPLEMENTAL DATA

103.Net assets, end of period (in millions)
$ 2,222 $ 2,132 $ 2,096 $ 2,502 $ 2,802 $ 2,981 $ 2,923

104.Ratio of expenses to average net assets
.55%A .56% .57% .55% .60% .63% .64%
A

105.Ratio of net interest income to average net assets
5.00%A 3.18% 2.83% 4.22% 6.47% 7.69% 8.68%
A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1995 (Unaudited)

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 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.
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 SEC), 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 $109,000,000 or 4.9% of net assets.
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 .32% 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 FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
During the period September 1, 1994 to December 31, 1994, FSC received fees
based on the type, size, number of accounts and the number of transactions
made by shareholders. Effective January 1, 1995, the Board of Trustees
approved a revised transfer agent fee contract pursuant to which FSC
receives account fees and asset-based fees that vary according to account
size and type of account. FSC pays for typesetting, printing and mailing of
all shareholder reports, except proxy statements.
ACCOUNTING FEES. 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 $768,000.
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 WRITE FIDELITY

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
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
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Thomas D. Maher, Assistant
Vice President
Michael D. Conway, Assistant Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING 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)
ARIZONA
MUNICIPAL
PORTFOLIOS

SEMIANNUAL REPORT
FEBRUARY 28, 1995
CONTENTS

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

SPARTAN ARIZONA MUNICIPAL INCOME PORTFOLIO

PERFORMANCE 4 How the fund has done over time.

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

INVESTMENT SUMMARY 9 A summary of the fund's
investments.

INVESTMENTS 10 A complete list of the fund's
investments with their market
values.

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

SPARTAN ARIZONA MUNICIPAL MONEY MARKET PORTFOLIO

PERFORMANCE 17 How the fund has done over time.

FUND TALK 19 The manager's review of fund
performance, strategy and outlook.

INVESTMENT SUMMARY 21 A summary of the fund's
investments.

INVESTMENTS 22 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 25 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 29 Notes to the financial statements.

</TABLE>

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

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

DEAR SHAREHOLDER:
Although there have been a few positive market indications so far in 1995,
no one can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be -paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
SPARTAN ARIZONA MUNICIPAL INCOME PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells bonds
that have grown in value), and the effect of the $5 account closeout fee.
You can also look at the fund's income. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns,
dividends, and yields would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED FEBRUARY 28, 1995 LIFE OF
FUND

Spartan Arizona Municipal Income 5.85%

Lehman Brothers Municipal Bond Index n/a

Average Arizona Municipal Bond Fund n/a

Consumer Price Index 1.28%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, since the fund started on October 11,
1994. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. Once the
fund is six months old, you can compare the fund's returns to the
performance of the Lehman Brothers Municipal Bond Index - a broad gauge of
the municipal bond market. To measure how the fund's performance stacked up
against its peers (again, once it's six months old), you can compare it to
the average Arizona municipal bond fund, which reflects the performance of
30 Arizona municipal bond funds with similar objectives tracked by Lipper
Analytical Services during the period covered by this report. Both
benchmarks include reinvested dividends and capital gains, if any.
Comparing the fund's performance to the consumer price index (CPI) helps
show how your fund did compared to inflation. (The CPI returns begin on the
month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. Average annual returns for the fund and its
benchmarks will appear in the fund's next annual report, once the fund is
older; this next report will also show the effect of investing $10,000 OVER
THE LIFE OF THE FUND for both the fund and the Lehman Brothers Municipal
Bond Index.
TOTAL RETURN COMPONENTS
OCTOBER 11, 1994
(COMMENCEMENT
OF OPERATIONS) TO
FEBRUARY 28,

1995

Dividend return 2.26%

Capital appreciation
return 3.59%

Total return 5.85%
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested. Capital appreciation and total returns include the effect of
the $5 account closeout fee.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED FEBRUARY 28, 1995 PAST LIFE OF
MONTH FUND

Dividends per share 4.66- 21.44-

Annualized dividend rate 5.93% 5.70%

30-day annualized yield 5.85% -

30-day annualized tax-equivalent yield 9.68% -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $10.25 over
the past month and $9.73 over the life of fund, you can compare the fund's
income over these two periods. The 30-day annualized YIELD is a standard
formula for all funds based on the yields of the bonds in the fund,
averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It also
helps you compare funds from different companies on an equal basis. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the fund's tax-free yield, if you're in the 39.58%
combined effective 1995 federal and state income tax bracket. If the
advisor had not reimbursed certain portfolio expenses during the period
shown, the yield and tax-equivalent yield would have been 5.30% and 8.77%,
respectively. A portion of the fund's income may be subject to the
alternative minimum tax.
SPARTAN ARIZONA MUNICIPAL INCOME PORTFOLIO

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Maureen Newman,
Portfolio Manager of Spartan Arizona
Municipal Income Portfolio
Q. MAUREEN, HOW HAS THE FUND PERFORMED?
A. Fairly well, but since the fund has been operating for such a short
time, any comparison of its performance with other funds of its type would
be misleading. That said, from the start of its operations on October 11,
1994, through February 28, 1995, the fund returned 5.85%.
Q. WHAT HAS THE MUNICIPAL BOND MARKET BEEN LIKE SINCE OCTOBER?
A. In October, bond prices continued to decline due to signs of economic
strength and the fear of higher inflation. From November through February,
however, bond prices rebounded as investors began to believe that the
Federal Reserve Board's interest rate hikes were having their intended
effect of slowing down the economy, thereby reducing the risk of inflation.
Q. HOW HAVE YOU INVESTED THE FUND SO FAR?
A. I have purchased bonds with a variety of credit qualities, but
emphasized high-quality bonds. At the end of February, 53.3% of the fund's
investments were in high-quality bonds, or those rated Aa or Aaa by Moody's
Investors' Services. I did invest some of the fund in high-yielding,
lower-quality investment-grade and non-investment grade bonds because they
can provide additional income to the fund. Lower-quality investment-grade
bonds rated A and Baa were 37.1% of investments at the end of February.
Finally, bonds rated below Baa made up just 3.3% of the fund's investments.
Q. HOW DO BONDS ISSUED BY GUAM, PUERTO RICO AND THE U.S. VIRGIN ISLANDS
QUALIFY FOR INCLUSION IN THE FUND?
A. As territories of the United States, Guam, Puerto Rico and the U.S.
Virgin Islands may issue municipal bonds free from local, state and federal
income taxes in all 50 states. Demand for these bonds is very strong
because of that broad tax-exempt status. I think that demand will continue
to be strong because supply in the overall municipal market has dropped off
substantially since 1993. For state municipal bond mutual funds that must
invest in bonds exempt from state taxes, these territorial bonds serve as a
good tax-free proxy for bonds issued in the home state. At the end of
February, the fund's stake in territorial bonds was about 27%, of which
about one third are pre-refunded. That means that their principal and
interest payments are backed by treasury securities. Going forward, I'll
most likely reduce the fund's stake in U.S. territorial bonds as
opportunities to purchase Arizona securities arise.
Q. WHAT SECTORS ARE YOU EMPHASIZING CURRENTLY?
A. Electric revenue bonds, for one. They made up 25.1% of the fund's
investments at the end of February. Some of the fund's largest holdings in
this sector include Salt River Project, which is an electric utility in the
Phoenix area and Public Service of New Mexico (PSNM). The Salt River bond
is rated Aa, and the utility has a strong management team and low consumer
rates. PSNM has been aggressively reducing its debt and its bonds have the
potential for a credit rating upgrade. While PSNM is headquartered in New
Mexico, it owns a portion of a plant in Arizona, so some of its bonds have
tax-exempt status in Arizona. There has been concern about increased
competition in the electric utility sector, so I've concentrated the fund's
electric holdings in utilities that I think are less susceptible to
competitive pressures. Since the U.S. territories are islands, there is
virtually no competition from electric producers elsewhere, so I've also
invested in Puerto Rico Electric and Guam Power. Local and state general
obligation bonds were the fund's largest sector concentration at the end of
the period. In this sector, I've emphasized local school districts and some
local insured bonds.
Q. DURING 1994, MARICOPA COUNTY'S CREDIT RATING WAS DOWNGRADED BECAUSE OF
SOME FISCAL PROBLEMS THE COUNTY EXPERIENCED. IS THE FUND INVESTED IN ANY
MARICOPA COUNTY BONDS?
A. Yes, the fund had roughly 6.5% of investments in securities issued by
Maricopa County at the end of the period. Since the fund commenced
operations after the downgrade, I bought these at their new credit rating
of A, which is an investment-grade rating. In my view, the downgrade
reflects some short-term problems which won't affect the county's viability
over the long-term. The problems Maricopa County experienced stemmed mostly
from inadequate administrative and financial controls, which recently it
has taken steps to remedy. What's more, the county's economy is quite
strong. Together, improving fiscal controls and a strong economy are
positives for Maricopa bonds. Once the county has worked through its
problems, which may take a couple of years, it's credit rating could be
upgraded. Improvements in credit quality could, in turn, help the prices of
securities issued by the county.
Q. WHAT'S YOUR OUTLOOK FOR ARIZONA MUNICIPAL BONDS?
A. The state's economy is well diversified and has been very strong
recently, which has translated into a very favorable fiscal picture. After
the period ended, the legislature passed a reduction in the top state
income tax bracket from 6.9% to 5.6%. Despite this modification, Arizona
tax-free bonds currently remain attractive investments.
Q. WHAT CAN INVESTORS EXPECT IN 1995?
A. I believe that interest rates probably will be more stable in 1995 than
they were in 1994. If I am correct, it's likely that bond prices will be
more stable as well. In that type of environment, the fund's total return
will be less dependent on bond prices rising and more dependent on the
level of income the bonds pay. So I'll continue to concentrate on pursuing
a high level of income for the fund. I'll do that primarily by investing a
limited portion of the fund in higher-yielding, lower-rated
investment-grade bonds, with improving credit fundamentals.

FUND FACTS
GOAL: to provide a high level
of current income exempt from

Arizona state and federal
income taxes by investing
primarily in long-term,
investment-grade
Arizona municipal securities
START DATE: October 11, 1994
SIZE: as of February 28,
1995, more than $6 million
MANAGER: Maureen Newman,
since October 1994; manager,
Fidelity Michigan Tax-Free
High Yield Portfolio, since July
1994; Spartan Aggressive
Municipal Fund, since October
1994; Spartan Connecticut
Municipal High Yield Portfolio,
since July 1994; bond analyst,
1985 to 1994; joined Fidelity in
1985
(checkmark)

MAUREEN NEWMAN'S
INVESTMENT STRATEGY:

- -I start with fundamental
research - checking
investment options issuer by
issuer - to come up with
investment ideas relating to
changes in credit quality.
Improvements in a bond's
credit quality can translate
into a higher price for that
bond. I try to stay ahead of the
market and the rating
agencies, looking for quality
trends before they happen, in
order to buy into good
situations on their way up and
to get out of securities before
the market realizes potential
problems. Diversification is
also a key, as I try to keep a
good mix of coupons -
stated interest rates - and
maturities in the fund, which
can reduce its overall
volatility."
SPARTAN ARIZONA MUNICIPAL INCOME PORTFOLIO

INVESTMENT SUMMARY

TOP FIVE SECTORS AS OF FEBRUARY 28, 1995
% OF FUND'S
INVESTMENTS

General Obligation 29.7

Electric Revenue 25.1

Water & Sewer 11.7

Transportation 9.9

Escrowed/Pre-refunded 7.8

AVERAGE YEARS TO MATURITY AS OF FEBRUARY 28, 1995

Years 14.7

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF FEBRUARY 28, 1995

Years 7.7

DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS) AS OF FEBRUARY 28, 1995

Aaa 39.2%
Aa, A 27.3%
Baa 23.9%
Ba, B 3.3%
Non-rated 1.6%
Short-term
investments 4.7%
Row: 1, Col: 1, Value: 39.2
Row: 1, Col: 2, Value: 27.3
Row: 1, Col: 3, Value: 23.9
Row: 1, Col: 4, Value: 3.5
Row: 1, Col: 5, Value: 2.0
Row: 1, Col: 6, Value: 4.7
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
SPARTAN ARIZONA MUNICIPAL INCOME PORTFOLIO

INVESTMENTS FEBRUARY 28, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 95.3%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
ARIZONA - 68.8%
Arizona Pwr. Auth. Pwr. Resources Rev. Rfdg.
(Hoover Uprating Proj.) 5.25% 10/1/17
(MBIA Insured) Aaa $ 100,000 $ 89,250
Arizona Trans. Board Hwy. Rev. Rfdg.
5.25% 7/1/09 Aa 300,000 279,375
Arizona Univ. Rev. Rfdg. Series A,
5.75% 7/1/12 A1 100,000 97,875
Central Arizona Wtr. Conservation Dist.
Contract Rev. Rfdg. (Central Arizona Proj.)
Series A, 5.50% 11/1/10 A1 100,000 97,000
Cochise County Unified School Dist. #68
(Sierra Vista) 9% 7/1/02 (FGIC Insured) Aaa 200,000 242,750
Glendale Ind. Dev. Auth. Edl. Facs. Rev. Rfdg.
(American Graduate School Int'l.)
6.55% 7/1/06 (Connie Lee Insured) AAA 150,000 161,438
Maricopa County Cfts. of Prtn.
5.625% 6/1/00 Baa 450,000 438,188
Maricopa County Poll. Cont. Corp. Poll. Cont.
Rev. (Pub. Svc. Co. New Mexico - Palo Verde)
7.75% 11/1/09 Ba2 200,000 207,750
Maricopa County School Dist. #6
(Washington Elementary) Series A,
5.50% 7/1/11 (AMBAC Insured) Aaa 200,000 191,250
Maricopa County Unified School Dist. #69
(Paradise Valley) 5% 7/1/08
(AMBAC Insured) (f) Aaa 300,000 275,250
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.
(Jr. Lien) 5.45% 7/1/19 A1 500,000 458,125
Phoenix Gen. Oblig. Rfdg. Series B,
5.50% 7/1/16 Aa 100,000 92,125
Phoenix Street & Hwy. User Rev. Rfdg. (Jr. Lien):
Series A, 0% 7/1/13 (FGIC Insured) Aaa 350,000 112,875
6.25% 7/1/11 (MBIA Insured) Aaa 250,000 257,813
Salt River Proj. Agricultural Impt. & Pwr. Dist.
Elec. Sys. Rev. Rfdg. Series B, 6.50%
1/1/04 Aa 400,000 436,000
Scottsdale Gen. Oblig. Rfdg. 5.50% 7/1/09 Aa1 100,000 96,000
Tempe Union High School Dist. #213
Rfdg. & Impt. 7% 7/1/08
(FGIC Insured) Aaa 310,000 349,912
Tucson Gen. Oblig.:
Series 1984 G, 6.25% 7/1/18
(FGIC Insured) Aaa 100,000 101,750
6.75% 7/1/03 (FGIC Insured) (e) Aaa 200,000 217,747
Tucson Wtr. Rev. Rfdg. Series A, 5.75%
7/1/18 A1 200,000 191,500
4,393,973
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (B) AMOUNT (NOTE 1)
PUERTO RICO - 21.1%
Puerto Rico Commonwealth Hwy. & Trans.
Auth. Hwy. Rev. 5.50% 7/1/17 Baa1 $ 100,000 $ 91,625
Puerto Rico Commonwealth Pub. Impt.
Gen. Oblig. 6.80% 7/1/21
(Pre-refunded to 7/1/02 @ 101.5) (d) AAA 250,000 280,000
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Rfdg. Series N, 5% 7/1/12 Baa1 150,000 131,625
Series O, 5% 7/1/12 Baa1 450,000 394,875
7.125% 7/1/14
(Pre-refunded to 7/1/99 @ 101.5) (d) AAA 200,000 220,000
Puerto Rico Pub. Bldgs. Auth. Guaranteed
Pub. Ed. & Health Facs. Rfdg. Series M,
5.50% 7/1/21 Baa1 250,000 225,938
1,344,063
U.S. VIRGIN ISLANDS - 1.6%
Virgin Islands Pub. Fin. Auth. Rev. Rfdg.
Series A, 7.25% 10/1/18 - 100,000 103,125
GUAM - 3.8%
Guam Pwr. Auth. Rev. Series A, 6.30% 10/1/22 BBB 250,000 241,875
TOTAL MUNICIPAL BONDS
(Cost $5,823,337) 6,083,036
MUNICIPAL NOTES (A) - 4.7%
ARIZONA - 4.7%
Maricopa County Poll. Cont. Rev.
(Arizona Pub. Svc.) Series 1994 B, 3.90%,
LOC Morgan Guaranty Trust, VRDN P-1 100,000 100,000
Pinal County Ind. Dev. Poll. Cont. Rev. (Newmont
Mining Corp.) (Magna Copper Co. Proj.)
3.75%, LOC Nat'l. Westminster Bank, VRDN P-1 100,000 100,000
Yuma Ind. Dev. Auth. Ind. Rev. (Ardco Inc. Proj.)
4.15%, LOC Bank of Montreal & Harris Trust,
VRDN (c) A-1+ 100,000 100,000
TOTAL MUNICIPAL NOTES
(Cost $300,000) 300,000
TOTAL INVESTMENTS - 100%
(Cost $6,123,337) $ 6,383,036

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate
at period end.
(b) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(c) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals (AMT securities).
(d) Security collateralized by an amount sufficient to pay interest and
principal.
(e) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(f) Security was pledged to cover margin requirements for delayed delivery
purchases. At the period end, the value of securities pledged amounted to
$275,250.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 64.0% AAA, AA, A 79.8%
Baa 20.1% BBB 10.6%
Ba 3.3% BB 3.3%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 1.6%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investments, is as follows:
General Obligation 29.7%
Electric Revenue 25.1
Water & Sewer 11.7
Others
(individually less than 10%) 33.5
TOTAL 100.0%
INCOME TAX INFORMATION
At February 28, 1995, the aggregate cost of investment securities for
income tax purposes was $6,123,337. Net unrealized appreciation aggregated
$259,699, of which $260,076 related to appreciated investment securities
and $377 related to depreciated investment securities
SPARTAN ARIZONA MUNICIPAL INCOME PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 28, 1995 (UNAUDITED)

4.ASSETS 5. 6.

7.Investment in securities, at value (cost $6,123,337) - 8. $ 6,383,036
See accompanying schedule

9.Cash 10. 694,457

11.Receivable for investments sold 12. 201,348

13.Interest receivable 14. 72,537

15.Receivable from investment adviser for expense 16. 2,525
reductions

17. 18.TOTAL ASSETS 19. 7,353,903

20.LIABILITIES 21. 22.

23.Payable for investments purchased $ 278,134 24.
Regular delivery

25. Delayed delivery 218,985 26.

27.Dividends payable 4,912 28.

29.Accrued management fee 2,525 30.

31. 32.TOTAL LIABILITIES 33. 504,556

34.35.NET ASSETS 36. $ 6,849,347

37.Net Assets consist of: 38. 39.

40.Paid in capital 41. $ 6,560,550

42.Accumulated undistributed net realized gain (loss) on 43. 29,098
investments

44.Net unrealized appreciation (depreciation) on 45. 259,699
investments

46.47.NET ASSETS, for 661,433 shares outstanding 48. $ 6,849,347

49.50.NET ASSET VALUE, offering price and redemption 51. $10.36
price per share ($6,849,347 (divided by) 661,433 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 11, 1994 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1995 (UNAUDITED)

52.53.INTEREST INCOME 54. $ 93,237

55.EXPENSES 56. 57.

58.Management fee $ 8,844 59.

60.Non-interested trustees' compensation - 61.

62. Total expenses before reductions 8,844 63.

64. Expense reductions (8,844) -

65.66.NET INTEREST INCOME 67. 93,237

68.REALIZED AND UNREALIZED GAIN (LOSS) 70. 29,098
69.Net realized gain (loss) on investment securities

71.Change in net unrealized appreciation (depreciation) 72. 259,699
on investment securities

73.74.NET GAIN (LOSS) 75. 288,797

76.77.NET INCREASE (DECREASE) IN NET ASSETS 78. $ 382,034
RESULTING FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C>
OCTOBER 11, 1994
(COMMENCEMENT
OF OPERATIONS) TO
FEBRUARY 28, 1995
(UNAUDITED)

79.INCREASE (DECREASE) IN NET ASSETS

80.Operations $ 93,237
Net interest income

81. Net realized gain (loss) 29,098

82. Change in net unrealized appreciation (depreciation) 259,699

83. 84.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM 382,034
OPERATIONS

85.Dividends to shareholders from net interest income (93,237)

86.Share transactions 8,566,199
Net proceeds from sales of shares

87. Reinvestment of dividends from net interest income 80,094

88. Cost of shares redeemed (2,086,071)

89. Redemption fees 328

90. Net increase (decrease) in net assets resulting from share 6,560,550
transactions

91. 92.TOTAL INCREASE (DECREASE) IN NET ASSETS 6,849,347

93.NET ASSETS 94.

95. Beginning of period -

96. End of period $ 6,849,347

97.OTHER INFORMATION 99.
98.Shares

100. Sold 864,055

101. Issued in reinvestment of distributions 8,033

102. Redeemed (210,655)

103. Net increase (decrease) 661,433

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C>
104. OCTOBER 11, 1994
(COMMENCEMENT
OF OPERATIONS) TO
FEBRUARY 28, 1995

105. (UNAUDITED)

106.SELECTED PER-SHARE DATA

107.Net asset value, beginning of period $ 10.000

108.Income from Investment Operations .214
Net interest income

109. Net realized and unrealized gain (loss) .359

110. Total from investment operations .573

111.Less Distributions (.214)
From net interest income

112.Redemption fees added to paid in capital .001

113.Net asset value, end of period $ 10.360

114.TOTAL RETURN B 5.86%

115.RATIOS AND SUPPLEMENTAL DATA

116.Net assets, end of period (000 omitted) $ 6,849

117.Ratio of expenses to average net assets -

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

119.Ratio of net interest income to average net assets 5.80%A

120.Portfolio turnover rate 60%A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. SEE
NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
SPARTAN ARIZONA MUNICIPAL MONEY MARKET PORTFOLIO

PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of the fund's $5 account closeout fee. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance.
If Fidelity had not reimbursed certain fund expenses during the periods
shown, the total returns and yields would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED FEBRUARY 28, 1995 LIFE OF
FUND

Spartan Arizona Municipal Money Market 1.40%

Average All Tax-Free Money Market Fun 1.05%
d

Consumer Price Index 1.28%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a specific period - in this case, since the fund started on October
12, 1994. For example, if you invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be $1,050. To
measure how the fund's performance stacked up against its peers, you can
compare it to the average all tax-free money market fund's total return
which reflects the performance of 381 all tax-free money market funds
tracked by IBC/Donoghue during the period covered by this report. Comparing
the fund's performance to the consumer price index (CPI) helps show how
your fund did compared to inflation. (The CPI and IBC/Donoghue returns are
the closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year. Average annual returns for the fund and its
benchmarks will appear in the fund's next annual report, once the fund is
older.
YIELDS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
11/28/94 2/27/95

Spartan Arizona Municipal Money Market 3.76% 4.15%

If Fidelity had not reimbursed certain fund expenses 3.26% 3.65%

Average All Tax-Free Money Market Fund 3.10% 3.48%

Spartan Arizona Municipal Money Market - Tax-equivalent 6.22% 6.87%

If Fidelity had not reimbursed certain fund expenses 5.40% 6.04%

</TABLE>

Spartan Arizona
Municipal Money
Market
Average
All Tax-Free
Money Market
Fund
Row: 1, Col: 1, Value: 3.76
Row: 1, Col: 2, Value: 3.1
Row: 2, Col: 1, Value: 4.149999999999999
Row: 2, Col: 2, Value: 3.48
5%--
4%--
3%--
2%--
1%--
0%-
YIELD-refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals. You can compare these
yields to the average all tax-free money market fund. Or you can look at
the fund's tax-equivalent yield, which is based on a combined effective
1995 federal and state income tax rate of 39.58%. A portion of the fund's
income may be subject to the alternative minimum tax.

A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

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

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Scott Orr, Portfolio
Manager of Spartan Arizona
Municipal Money Market Portfolio
Q. SCOTT, HOW WOULD YOU DESCRIBE THE MARKET ENVIRONMENT SINCE THE FUND
BEGAN OPERATING LAST OCTOBER?
A. Because the fund is new, it avoided much of the turmoil that accompanied
the rapid series of rate increases by the Federal Reserve Board earlier in
the year. As recently as February 1994, the federal funds rate - the rate
banks charge each other for overnight loans - was only 3%. By the time the
fund opened to shareholders in October, there had already been five rate
increases in 1994 totalling one and three-quarters percentage points, and
the federal funds rate was 4.75%. Since then, while the rate increases have
continued, they've been both more predictable and more widely spaced than
before: three-quarters of a percentage point in November 1994, followed by
half a point in February 1995. By the end of the period, the federal funds
rate was 6%, higher than it had been in several years. Changes in the
federal funds rate are significant because they influence tax-free rates.
Q. WHAT CAN YOU TELL US ABOUT YOUR INVESTMENT STRATEGY?
A. As long as rates are rising, I'll usually try to shorten the fund's
average maturity in order to keep pace with market yields. That's been my
strategy so far. Throughout the fall and winter, therefore, I've been
defensive with the fund's average maturity, staying between 30 and 40 days.
In terms of security selection, Arizona is unlike most other states in that
the supply of general obligation bonds - securities issued by
municipalities for their short-term needs - is extremely limited. That's
partly a reflection of the strength of the Arizona economy. The upshot is
that while other state tax-free money market funds may be as much as 50%
invested in general obligation bonds, with this fund, the figure is closer
to 12%. That's not a problem. It just means that the fund focuses more on
tax-free securities issued by schools, hospitals and utilities.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven day yield on February 28, 1995, was 4.15%, which is the
equivalent of a 6.87% taxable yield for Arizona investors in the 39.58%
combined state and federal tax bracket. There's no point in making a
comparison now with the fund's yield in October because yields fluctuate
sharply when a fund is just starting out. That said, the fund's total
return from October 12, 1994, when the fund started through February 28,
1995 was 1.40%.
Q. WHAT CAN WE EXPECT IN THE MONTHS AHEAD?
A. While it's not clear yet where the economy is heading, signs have been
accumulating lately that point toward a possible slow-down in the growth
rate. My own feeling is that while rates are unlikely to climb much higher
in the months ahead, it's too early to say whether they've peaked or not.
That's why I'll probably want to extend the fund's average maturity only
slightly in the months ahead - possibly beyond 40 days, but not much
farther than that, at least not until I see more firm signs of weakness in
key economic indicators such as job creation and consumer spending.

FUND FACTS
GOAL: tax-free income and
stability by investing in
high-quality, short-term,
Arizona municipal securities
START DATE: October 12, 1994
SIZE: as of February 28,
1995, more than $23 million
MANAGER: Scott Orr, since
October 1994; manager,
Fidelity
Connecticut Municipal Money
Market Portfolio and Fidelity
Michigan Municipal Money
Market Portfolio, since
October 1993; Fidelity New
Jersey Tax-Free Money
Market Portfolio and Spartan
New Jersey Municipal Money
Market Portfolio, since
January 1992; joined
Fidelity in 1989
(checkmark)

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

INVESTMENT SUMMARY

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS
2/28/95

0 - 30 68

31 - 90 23

91 - 180 5

181 - 397 4

WEIGHTED AVERAGE MATURITY
2/28/95

Spartan Arizona
Municipal Money Market 35 days

Average All Tax-Free
Money Market Fund* 39 days

ASSET ALLOCATION
AS OF FEBRUARY 28, 1995

Row: 1, Col: 1, Value: 64.0
Row: 1, Col: 2, Value: 26.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 10.0
Variable rate
demand notes
(VRDNs) 64%
Commercial
paper 26%
Tender bonds 0%
Municipal
notes 0%
Other 10%
*-SOURCE:-IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
SPARTAN ARIZONA MUNICIPAL MONEY MARKET PORTFOLIO

INVESTMENTS FEBRUARY 28, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ARIZONA - 95.0%
Apache County Ind. Dev. Auth. Rev.
(Tucson Elec. Pwr. Co. Springerville Proj.), VRDN:
Series 1983 B, 4.20%, LOC Bank of New York $ 200,000 $ 200,000
Series 1983 C, 4.10%, LOC Bankers Trust 300,000 300,000
Arizona Ed. Loan Mktg. Corp., VRDN (b):
Series 1990 A, 4.20%, LOC Fuji Bank (MBIA Insured) 200,000 200,000
Series 1991 A, 4.25%, LOC Dresdner Bank 900,000 900,000
Arizona Health Facs. Auth. Hosp. Sys. Rev. Bonds
(Samaritan Health Svcs.) 5.30% 12/1/95 (MBIA Insured) 1,000,000
1,003,961
Arizona Health Facs. Auth. Rev., VRDN:
(Samcor 1986 Loan Pool-Samaritan Health Care)
4.40% (FGIC Insured) 900,000 900,000
(Voluntary Hosp. Federation Pooled Loan Prog.):
Series 1985 A, 4.10% (FGIC Insured) 225,000 225,000
Series 1985 B, 4.10% (FGIC Insured) 200,000 200,000
Chandler Ind. Dev. Auth. Multi-Family Hsg. Rev. Rfdg.
(Southpark Apts.) 4.05%, LOC Citibank, VRDN 900,000 900,000
Coconino County Poll. Cont. Corp. Poll. Cont. Rev.
(Arizona Pub. Svc. Co.-Navajo Proj.) Series 1994 A,
4.30%, LOC Bank of America, VRDN (b) 900,000 900,000
Glendale Gen. Oblig. Bonds 7% 7/1/95 (FGIC Insured) 250,000 252,287
Maricopa County Ind. Dev. Auth. Rev. (Privado Park Apt.
Proj.) Series 1994 A, 4.25%, LOC Bank One,
VRDN (b) 1,300,000 1,300,000
Maricopa County Poll. Cont. Rev. Bonds:
Series 1985 D:
4.10%, tender 4/7/95 400,000 400,000
4.25%, tender 5/16/95 500,000 500,000
Series 1985 E:
4.25%, tender 5/12/95 250,000 250,000
4.20%, tender 5/18/95 100,000 100,000
Series 1985 F, 4.10%, tender 4/10/95 600,000 600,000
Maricopa County Poll. Cont. Rev. (Pub. Svc. Co. of
New Mexico Palo Verde Proj.) Series 1992 A, 4%,
LOC Canadian Imperial Bank of Commerce, VRDN (b) 700,000 700,000
Maricopa County Unified School Dist. #69 Participating VRDN,
Series PA-25, 4.20% (Liquidity Facility Merrill Lynch) (c) 800,000
800,000
Mohave County Ind. Dev. Auth. Ind. Dev. Rev. Bonds
Series 1993 E (b):
4%, tender 3/7/95 300,000 300,000
4.35%, tender 5/1/95 500,000 500,000
Phoenix Gen. Oblig. Bonds Series 1992 B, 5.80% 7/1/95 400,000 401,825
Phoenix Gen. Oblig. Rev. Series 1994-2, 3.75%
(BPA Morgan Guaranty Trust Co.), VRDN 200,000 200,000
Phoenix Ind. Dev. Board Multi-Family Hsg. Rev. (Lynwood
Apt. Proj.) Series 1994, 4.15%, LOC FHLB, VRDN 900,000 900,000
Pima County Ind. Dev. Auth. Ind. Rev. Rfdg. (Tucson Retirement
Ctr. Proj.) 4%, LOC Swiss Bank Corp., VRDN 1,000,000 1,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ARIZONA - CONTINUED
Pima County Ind. Dev. Auth. Multi-Family Rev.
(Quail Ridge Apt.-B) 4.25%, LOC Bank One, VRDN $ 500,000 $ 500,000
Pinal County Ind. Dev. Auth. Ind. Dev. Rev.
(Sunbelt Refining Co. LP Proj.) Series 1988,
4.45%, LOC Bankers Trust, VRDN (b) 600,000 600,000
Pinal County Ind. Dev. Poll. Cont. Rev.
(Magna Copper Co. Proj.) VRDN:
Series 1984, 3.75%, LOC Nat'l. Westminster Bank PLC 900,000 900,000
Series 1984A, 3.75%, LOC Nat'l. Westminster Bank PLC 1,000,000
1,000,000
Salt River Proj. Agricultural Impt. and Pwr. Dist., CP:
4.10% 4/6/95 200,000 200,000
4.05% 4/10/95 300,000 300,000
4.05% 4/12/95 700,000 700,000
4.10% 4/12/95 300,000 300,000
4.20% 5/18/95 251,000 251,000
Scottsdale Gen. Oblig. Bonds Series 1994, 8.25% 7/1/95 225,000 228,056
Tempe Ind. Dev. Auth. Multi-Family Hsg. Rev. (Elliot's
Crossing Apts.) Series 1985, 3.85%, LOC Citibank, VRDN 800,000 800,000
Tucson Ind. Dev. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Freedom Park Apts. Proj.) Series 1989 A, 4.20%,
LOC Sumitomo Bank Ltd. 600,000 600,000
(Lincoln Garden Proj.) 4.10%, LOC Sumitomo Bank Ltd. 300,000 300,000
Yavapai County Ind. Dev. Auth. Ind. Dev. Rev. Bonds
Series 1993, 4.30%, tender 5/11/95 (b) 600,000 600,000
Yuma Ind. Dev. Auth. Ind. Rev. (Ardco Inc. Proj.) 4.15%,
LOC Bank of Montreal & Harris Trust, VRDN (b) 400,000 400,000
21,612,129
PUERTO RICO - 5.0%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series J,
9.125% 7/1/15 320,000 334,773
Puerto Rico Gov't. Dev. Bank, CP:
3.25% 3/1/95 300,000 300,000
3.40% 3/6/95 300,000 300,000
4.10% 5/8/95 300,000 300,000
Puerto Rico Ind. Higher Ed. Rev. Bonds
(Inter-American Univ.) Series 1994 A,
4.10%, tender 5/8/95, LOC Banque Paribas 200,000 200,000
1,434,773
TOTAL INVESTMENTS - 100% $ 23,046,902
Total Cost for Income Tax Purposes $ 23,046,902

SECURITY TYPE ABBREVIATIONS
CP - Commercial Paper
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 (AMT securities).
(f) Provides evidence of ownership in one or more underlying municipal
bonds.
SPARTAN ARIZONA MUNICIPAL MONEY MARKET PORTFOLIO

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1995 (UNAUDITED)

121.ASSETS 122. 123.

124.Investment in securities, at value - See 125. $ 23,046,902
accompanying schedule

126.Cash 127. 364,646

128.Interest receivable 129. 113,202

130. 131.TOTAL ASSETS 132. 23,524,750

133.LIABILITIES 134. 135.

136.Dividends payable 842

137.138.NET ASSETS 139. $ 23,523,908

140.Net Assets consist of: 141. 142.

143.Paid in capital 144. $ 23,523,918

145.Accumulated net realized gain (loss) on 146. (10)
investments

147.148.NET ASSETS, for 23,523,918 shares 149. $ 23,523,908
outstanding

150.151.NET ASSET VALUE, offering price and 152. $1.00
redemption price per share ($23,523,908 (divided by)
23,523,918 shares)

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 12, 1994 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1995 (UNAUDITED)

153.154.INTEREST INCOME 155. $ 178,888

156.EXPENSES 157. 158.

159.Management fee $ 23,107 160.

161.Non-interested trustees' compensation - 162.

163. Total expenses before reductions 23,107 164.

165. Expense reductions (23,107) -

166.167.NET INTEREST INCOME 168. 178,888

169.170.NET REALIZED GAIN (LOSS) ON INVESTMENTS 171. (10)

172.173.NET INCREASE IN NET ASSETS RESULTING FROM 174. $ 178,878
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C>
OCTOBER 12, 1994
(COMMENCEMENT
OF OPERATIONS) TO
FEBRUARY 28, 1995
(UNAUDITED)

175.INCREASE (DECREASE) IN NET ASSETS

176.Operations $ 178,888
Net interest income

177. Net realized gain (loss) (10)

178. 178,878
179.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS

180.Dividends to shareholders from net interest income (178,888)

181.Share transactions at net asset value of $1.00 per share 30,848,033
Proceeds from sales of shares

182. Reinvestment of dividends from net interest income 174,761

183. Cost of shares redeemed (7,498,876)

184. 23,523,918
Net increase (decrease) in net assets and shares
resulting from share transactions

185. 23,523,908
186.TOTAL INCREASE (DECREASE) IN NET ASSETS

187.NET ASSETS 188.

189. Beginning of period -

190. End of period $ 23,523,908

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C>
191. OCTOBER 12, 1994
(COMMENCEMENT
OF OPERATIONS) TO
FEBRUARY 28, 1995

192. (UNAUDITED)

193.SELECTED PER-SHARE DATA

194.Net asset value, beginning of period $ 1.000

195.Income from Investment Operations .014
Net interest income

196.Less Distributions (.014)
From net interest income

197.Net asset value, end of period $ 1.000

198.TOTAL RETURN B 1.40%

199.RATIOS AND SUPPLEMENTAL DATA

200.Net assets, end of period (000 omitted) $ 23,524

201.Ratio of expenses to average net assets -

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

203.Ratio of net interest income to average net assets 3.87%
A

</TABLE>

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Arizona Municipal Income Portfolio (the income fund) is a fund of
Fidelity Union Street Trust. Spartan Arizona Municipal Money Market
Portfolio (the money market fund) is a fund of Fidelity Union Street Trust
II. Each trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company.
Fidelity Union Street Trust and Fidelity Union Street Trust II (the trusts)
are organized as a Massachusetts business trust and a Delaware business
trust, respectively. Each fund is authorized to issue an unlimited number
of shares. The following summarizes the significant accounting policies of
the funds:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix system
and/or appraisals by a pricing service, both of which consider market
transactions and dealer-supplied valuations. Short-term securities maturing
within sixty days of their purchase date are valued either at amortized
cost or original cost plus accrued interest, both of which approximate
current value. Securities for which quotations are not readily available
through the pricing service are valued at their fair value as determined in
good faith under consistently applied procedures under the general
supervision of the Board of Trustees.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. Each fund intends to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code. By so qualifying,
each fund will not be subject to income taxes to the extent that it
distributes all of its taxable income for its fiscal year. The income
fund's 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. For the
money market fund, accretion of market discount represents unrealized gain
until realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
REDEMPTION FEES. Shares held in the income fund less than 180 days are
subject to a redemption fee equal to .50% of the proceeds of the redeemed
shares. The fee, which is retained by the fund, is accounted for as an
addition to paid in capital.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. Each fund may receive compensation for interest forgone in the
purchase of a delayed delivery security. With respect to purchase
commitments, the fund identifies securities as segregated in its custodial
records with a value at least equal to the amount of the commitment. Losses
may arise due to changes in the market value of the underlying securities
or if the counterparty does not perform under the contract.
3. PURCHASES AND SALES OF
INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $6,811,675 and $1,019,190, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .55% and .50% of average net assets
for the income and money market funds, respectively.
FMR also bears the cost of providing shareholder services to each fund. To
offset the cost of providing these services, FMR or its affiliates
collected certain transaction fees from shareholders which amounted to $0
and $57 for the income and money market funds, respectively.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser, FMR
Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect, and after reducing
the fee for any payments by FMR pursuant to the fund's Distribution and
Service Plan.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse each fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses). For the period, the reimbursements reduced the expenses by
$8,844 and $23,107 for the income and money market funds, respectively.
6. BENEFICIAL INTEREST.
At the end of the period, an affiliate of FMR was record owner of
approximately 23% of the total outstanding shares of the income fund.
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr. , Vice President -
MONEY MARKET FUND
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Thomas D. Maher, Assistant
Vice President - MONEY MARKET FUND
Michael D. Conway, Assistant Treasurer-
MONEY MARKET FUND
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
United Missouri Bank, N.A.
Kansas City, MO
and
Fidelity Service Co.
Boston, MA
CUSTODIAN
United Missouri Bank, N.A.
Kansas City, MO
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

SPARTAN

(registered trademark)
(registered trademark)
MUNICIPAL
MONEY
FUND
SEMIANNUAL REPORT
FEBRUARY 28, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

FINANCIAL STATEMENTS 29 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 33 Notes to the financial statements.

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 FEBRUARY 28, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan Municipal Money 1.68% 2.99% 14.54%

Average All Tax-Free Money Market Fund 1.51% 2.61% 11.63%

Consumer Price Index 1.28% 2.86% 12.78%

CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, six months, one year or since the fund started on January
14, 1991. For example, if you invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be $1,050. 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 reflects the performance of 381 tax-free money market funds with
similar objectives tracked by IBC/Donoghue during the period covered by
this report. Comparing the fund's performance to the consumer price index
(CPI) helps show how your investment did compared to inflation.(The periods
covered by the CPI and IBC/Donoghue numbers are the closest available match
to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1995 PAST 1 LIFE OF
YEAR FUND

Spartan Municipal Money 2.99% 3.34%

Average All Tax-Free Money Market Fund 2.61% 2.73%

Consumer Price Index 2.86% 2.93%

Spartan Municipal 2.40% 2.74% 2.91% 3.45% 3.85%
Money Fund

If Fidelity had not 2.22% 2.56% 2.81% 3.35% 3.75%
reimbursed certain fund
expenses

Average All Tax-Free 1.97% 2.35% 2.59% 3.10% 3.48%
Money Market Fund

Spartan Municipal Money 3.75% 4.28% 4.55% 5.39% 6.02%
Fund - Tax-equivalent

If Fidelity had not 3.47% 4.00% 4.39% 5.23% 5.86%
reimbursed certain fund
expenses

YIELD-refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. If the
adviser had not reimbursed certain 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% federal tax bracket.
A portion of the fund's income may be subject to the alternative minimum
tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.

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

An Interview with Sarah Zenoble,
Portfolio Manager of Spartan
Municipal Money Market Portfolio
Q. SARAH, WE'VE BEEN IN A RISING INTEREST RATE ENVIRONMENT NOW FOR MORE
THAN A YEAR. WHAT WERE THE HIGHLIGHTS OF THE PAST SIX MONTHS?
A. Interest rates continued to rise right up until the final weeks of
February, when the mood shifted slightly. The key short-term rate is the
federal funds rate. That's the rate banks charge each other for overnight
loans. Ever since February 1994, the Federal Reserve has been steadily
increasing the federal funds rate in hopes of slowing down the growth in
the economy and staving off inflation. When we began the period, there had
been five increases so far in 1994, and the federal funds rate was 4.75%.
Since then, the Federal Reserve has raised the federal funds rate two more
times: three-quarters of a percentage point in November and one-half of a
percentage point in February. We therefore ended the period with the
federal funds rate at 6.00%, exactly twice what it was a little over a year
ago when the current cycle of increases began.
Q. YOU SAID THE MOOD SHIFTED SLIGHTLY TOWARD THE END OF THE PERIOD. HOW?
A. Following the last Fed increase in early February, we began to see
statistics on unemployment and job growth that suggested the economy may
finally be slowing down. There was talk that the long-awaited soft landing
of the economy was upon us. That led to a rally in the fixed-income market
and a narrowing of the spread between short-term rates and long-term rates.
Q. DID THE RALLY CAUSE YOU TO CHANGE YOUR STRATEGY?
A. No, because I think the market may be overreacting to recent
developments. Overall, through changing market conditions, we tried to
maintain a neutral average maturity. During the period, I did what I
normally do when interest rates are rising - shortened the fund's average
maturity. At the start of the period, the fund's average maturity was 48
days. That number has been gradually declining ever since - to around 40
days in September, around 35 days in January, and 32 days at the end of
February.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on February 27, 1995, was 3.85%, compared to
2.94% six months ago on August 31, 1994. The latest yield was the
equivalent of a taxable yield of 6.02% for investors in the 36% federal tax
bracket. The fund's total return during the six-month period was 1.68%.
That beat the total return of 1.51% during the same period for the average
all tax-free money market funds,
according to IBC/Donoghue.
Q. WHAT DO YOU THINK WE CAN EXPECT IN THE MONTHS AHEAD?
A. That's never an easy question to answer, and these days it's even harder
than usual. Clearly the climate is changing. What we don't yet know is
this: whether the market rally during the final weeks of the period was an
indication that rates have peaked, and will soon start heading back down;
or merely a breather before rates resume climbing. I do concur with the
notion that the pace of Fed tightenings will be slower this year than last,
but I'm not prepared to say we've seen the last of the rate increases.
That's why I've kept the fund's average maturity as short as I have. If and
when rates do rise - and I believe that probably won't happen until late in
the first quarter of 1995 or early in the second - I'll look for
opportunities to extend the fund's average maturity. Until then, I feel
comfortable staying well within the neutral to defensive range.

FUND FACTS
GOAL: tax-free income with
share price stability by
investing in high-quality,
short-term municipal
securities
START DATE: January 14, 1991
SIZE: as of February 28,
1995, more than $2 billion
MANAGER: Sarah Zenoble,
since 1992; manager, Fidelity
Tax-Exempt Money Market
Trust, since 1988, and various
institutional tax-free money
market funds; joined Fidelity in
1987
(checkmark)

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
2/28/95 8/31/94 2/28/94

0 - 30 71 66 61

31 - 90 16 22 13

91 - 180 11 3 20

181 - 397 2 9 6

WEIGHTED AVERAGE MATURITY
2/28/95 8/31/94 2/28/94

Spartan Municipal
Money Market Fund 32 days 48 days 50 days

Average All Tax-Free
Money Market Fund* 39 days 56 days 55 days

ASSET ALLOCATION
AS OF FEBRUARY 28, 1995 AS OF AUGUST 31, 1994

Row: 1, Col: 1, Value: 56.0
Row: 1, Col: 2, Value: 22.0
Row: 1, Col: 3, Value: 6.0
Row: 1, Col: 4, Value: 16.0
Row: 1, Col: 5, Value: 0.0
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
Variable rate
demand notes
(VRDNs) 56%
Commercial
paper 22%
Tender bonds 6%
Municipal
notes 16%
Other 0%
Variable rate
demand notes
(VRDNs) 57%
Commercial
paper 26%
Tender bonds 4%
Municipal
notes 13%
Other 0%
*-SOURCE:-IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS FEBRUARY 28, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
ALABAMA - 1.6%
Alabama Ind. Dev. Auth. Rev.
(Columbus Mills Inc., Proj.) Series 1994 A, 4.15%
LOC Trust Co. Bank of Georgia, VRDN (b) $ 3,000 $ 3,000
Ashland Ind. Dev. Board Rev. (Wellborn Cabinet Inc., Proj.)
Series 1991 A, 4.35%, LOC Amsouth Bank, VRDN (b) 1,780 1,780
Athens Ind. Dev. Auth. Rev. (TRIS USA Inc., Proj.)
Series 1990, 4.75%, LOC Tokai Bank, VRDN (b) 3,500 3,500
Colbert County Ind. Dev. Board
(Golden Poultry Co., Inc., Proj.) Series 1990,
4.15%, LOC Trust Co. Bank of Georgia, VRDN (b) 4,750 4,750
Columbia Ind. Dev. Rev. Rfdg. (Russell Corp. Proj.)
4.15%, LOC Trust Co. Bank of Georgia, VRDN (b) 2,800 2,800
Columbiana Ind. Dev. Board Rev. (NFA Corp. Proj.)
Series 1992 A, 4.35%, LOC Amsouth Bank, VRDN (b) 7,400 7,400
Eufaula Ind. Dev. Board (Columbus Mills Inc., Proj.)
Series 1993, 4.15%
LOC Trust Co. Bank of Georgia, VRDN (b) 4,100 4,100
Florence Ind. Dev. Rev. (Robert J. Bevis Proj.) Series 1990,
4.15%, LOC Third Nat'l. Bank of Nashville, VRDN (b) 2,930 2,930
Geneva Ind. Dev. Board Rev. (Russell Corp. Proj.) Series 1992,
4.15%, LOC Trust Co. Bank of Georgia, VRDN (b) 3,000 3,000
Roanoke Ind. Dev. Board Ind. Dev. Rev.
(Wheadkee/Rock Mills Proj.) Series 1992, 4.15%,
LOC Trust Co. Bank of Georgia, VRDN (b) 1,400 1,400
Talladega Ind. Dev. Rev.
(Wehadkee Yarn Mills Proj.) Series 1990, 4.15%,
LOC Trust Co. Bank of Georgia, VRDN (b) 1,235 1,235
35,895
ALASKA - 0.1%
Alaska Student Loan Corp. Student Loan Rev. Bonds
Series A, 7.40% 7/1/95 (AMBAC Insured) (b) 1,500 1,514
ARIZONA - 1.5%
Cochise County Poll. Cont. Rev. Solid Waste Bonds
(Arizona Elec. Pwr. Coop.) 3.80%, tender 3/1/95 (b) 11,000 11,000
Flagstaff Ind. Dev. Auth. Rev. Bonds
(Citizens Utilities) 4.30%, tender 5/11/95 (b) 2,100 2,100
Mohave County Ind. Dev. Auth. Ind. Dev. Rev.
(Citizens Utilities) Series 1993 E (b):
4.30%, tender 4/11/95 5,200 5,200
4.30%, tender 5/11/95 3,500 3,500
Phoenix Gen. Oblig. Bonds Series 1992 B, 5.80% 7/1/95 3,485 3,501
Tempe Ind. Dev. Auth. Multi-Family Hsg. Rev. (Elliot's Crossing
Apts.) Series 1985, 3.85%, LOC Citibank, VRDN 2,250 2,250
Yavapi County Ind. Dev. Auth. Ind. Dev. Rev. Bonds
(Citizens Utilities) Series 1993, 4.30%, tender 5/11/95 (b) 5,700 5,700
33,251
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
ARKANSAS - 0.9%
Arkansas Student Loan Auth. Rev., VRDN (b):
Series B-1, 4.15% $ 2,500 $ 2,500
Series B-2, 4.15% 2,000 2,000
Series B-3, 4.15% 1,000 1,000
Blythville Ind. Dev. Rev.
(Arkansas Steel Processing Proj.) Series 1992,
4.35%, LOC Credit Agricole, VRDN (b) 9,500 9,500
Harrison Ind. Dev. Rev.
(Rock-Tenn Converting Co. Proj.) Series 1993,
4.15%, LOC Trust Co. Bank of Georgia, VRDN (b) 2,500 2,500
Magnolia Ind. Dev. Rev.
(American Fuel Cell & Coated Fabric Co.)
4.15%, LOC Barclays Bank, VRDN (b) 3,350 3,350
20,850
CALIFORNIA - 5.4%
California Gen. Oblig. Adj. Rate RAN
Series 1994-95 B, 4.14% 6/28/95 20,000 20,000
California Poll. Cont. Fin. Auth. Rev. Rfdg. Bonds
(Pacific Gas & Elec. Co.) Series 1988 B,
4.10%, tender 3/29/95, LOC Sumitomo Bank (b) 10,000 10,000
California School Cash Reserve Prog. Auth. TRAN
Series 1994 A, 4.50% 7/5/95 43,000 43,107
California Student Ed. Loan Mktg. Corp. Student Loan Rev.
Bonds Series 1994 A, 4.35%, tender 6/1/95,
LOC Dresdner Bank (b) 9,500 9,500
Los Angeles Reg'l. Arpt. Impt. Facs. Lease Rev.
(Compagne Nationale Air France)
4.60%, LOC Societe Generale, VRDN (b) 1,425 1,425
Orange County Apt. Dev. Rev., VRDN:
(Hidden Hills) Series 1985 U-C, 4.60%,
LOC Tokai Bank 1,000 1,000
(Niguel Summit I) Issue 1985 U-A, 4.60%,
LOC Toki Bank 11,400 11,400
Sacramento Hsg. Auth. Multi-Family Hsg. Rev. Rfdg.
(Bradshaw Courte Apts.) Series 1988 B,
4.50%, LOC Tokai Bank, VRDN 2,765 2,765
San Bernadino Multi-Family Hsg. Rev.
(Brookside Meadows Proj.)
Series A, 4.50%, LOC Tokai Bank, VRDN 5,500 5,500
San Francisco Redev. Agcy. Rev.
(St. Francis Place Proj.) Series 1989 A,
4.60%, LOC Mitsubishi Trust & Banking, VRDN 13,300 13,300
117,997
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
COLORADO - 2.2%
Colorado State Gen. Fund TRAN 4.50% 6/27/95 $ 10,800 $ 10,816
Colorado Student Oblig. Bond Auth. Rev. (Student Loan Prog.)
Series 1990 A, 4.05%, LOC Sumitomo Bank, VRDN (b) 5,200 5,200
Denver County Urban Renewal Auth. Tax
Increment Rev. Bonds (Urban Renewal Proj.)
Series 1989 A, 4.10%, tender 3/1/95 (b) 10,530 10,530
Jefferson County School Dist. #R-1 Participating VRDN,
Series BTP-35A, 4.20%,
(Liquidity Facility Bankers Trust) (c) 3,025 3,025
Monte Vista Ltd. Oblig. Swr. Rev. Series 1992, 4.25%,
LOC Wachovia Bank of North Carolina, VRDN (b) 2,810 2,810
Westminster Multi-Family Hsg. Rev. (Lakeview Apts.)
Series 1994, 4.15%, LOC Sumitomo Bank, VRDN (b) 7,185 7,185
Wheat Ridge County Ind. Dev. Rev., VRDN (b) :
(Adolph Coors Co. Proj.) Series 1993,
4.25%, LOC Wachovia Bank of North Carolina 4,000 4,000
(Leaf Inc., Proj.) 4.20%, LOC Wachovia Bank of Georgia 4,000 4,000
47,566
DELAWARE - 0.5%
Delaware Hsg. Auth. Participating VRDN, Series PA-39,
4.25% (Liquidity Facility Merrill Lynch) (c) 10,325 10,325
DISTRICT OF COLUMBIA - 0.8%
Dist. of Columbia Gen. Oblig. Rfdg. Series 1992 A-3,
4.40%, LOC Bank of Tokyo, VRDN 7,000 7,000
Dist. of Columbia Hsg. Fin. Auth. Multi-Family Hsg. Rev.
Rfdg. (Mount Vernon Plaza Apts.) Series 1991,
4.30%, LOC Bank One, VRDN (b) 11,350 11,350
18,350
FLORIDA - 6.9%
Broward County Ind. Dev. Auth. Rev. Rfdg.
(Goldline Lab. Inc., Proj.) Series 1989 B,
4.10%, LOC Barnett Bank, VRDN (b) 567 567
Broward County Ind. Dev. Board. Ind. Dev. Rev.
(Rib Associates Proj.) Series 1989,
4.15%, LOC Sun Bank of Orlando, VRDN (b) 1,610 1,610
Collier County Wtr. & Swr. Ind. Dev. Rev.
(Marco Island Util. Proj.) VRDN (b):
Series 1990, 4.15%, LOC Sun Bank of Orlando 2,400 2,400
Series 1992, 4.15%, LOC Sun Bank of Orlando 4,825 4,825
Dade County Hsg. Fin. Corp. Participating VRDN,
Series 1991 A, 4.55%
(Liquidity Facility Bank One) (b)(c) 8,070 8,070
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
FLORIDA - CONTINUED
Dade County Ind. Dev. Rev., VRDN (b):
(Guastafeste Proj.) Series 1987, 4.15%,
LOC Sun Bank of Orlando $ 2,235 $ 2,235
(Montenay-Dade Ltd. Proj.):
Series 1988, 4.20%, LOC Banque Paribas 8,000 8,000
Series 1990 A, 4.20%, LOC Banque Paribas 24,495 24,495
Dade County Multi-Family Hsg. Rev.
(Biscayne View Apts. Proj.)
Series 1993, 4.45%, VRDN (b) 12,000 12,000
Escambia County Solid Waste Disp. Rev.
(Monsanto Co. Proj.) Series 1993 4.15%, VRDN (b) 5,300 5,300
Florida Hsg. Fin. Agcy. Multi-Family Hsg. Rev., VRDN :
(Clear Lake Proj.) 4.30% (b) 7,000 7,000
(Players Club) Series 1991 C, 4.31%,
LOC Sumitomo Bank 3,960 3,960
Florida League of Cities First Muni. Bonds
(Pooled Loan Prog.) Series 2,
4.30%, tender 4/11/95, LOC Sumitomo Bank 13,200 13,200
Hillsborough County Ind. Dev. Rev.
(Vigo Importing Proj.) 4.30%,
LOC NationsBank of Florida, VRDN (b) 1,835 1,835
Indian Trace Commty. Dev. Dist. Bonds
(Broward County Basin I Wtr. Mgmt. Spl. Benefit)
5.75%, tender 3/7/95, LOC Tokai Bank 2,500 2,500
Jacksonville Gen. Oblig. Rev.
(River City Renaissance Program) 4.15% 4/6/95
(BPA Morgan Guaranty; Sun Bank of Orlando;
Credit Suisse; Dresdner Bank) CP 7,000 7,000
Jacksonville Poll. Cont. Rev. Rfdg. Bonds
(Florida Pwr. & Lt. Co.Proj.) Series 1992,
4.05%, tender 5/9/95 6,000 6,000
Orange County Health Facs. Auth. Rev. Rfdg. Bonds
(Pooled Hosp. Loan Prog.) Series 1985, 4.50%, tender
4/27/95 (MBIA Insured) (BPA Banque Paribas) 17,300 17,300
Orange County School Dist. TAN 4.75% 6/30/95 15,500 15,537
Palm Beach County Health Facs. Auth. Bonds
(Pooled Hosp. Loan Prog.) 4.50%, tender
4/27/95 (MBIA Insured) 2,400 2,400
Putnam County Dev. Auth. Poll. Cont. Rev. Bonds
(Seminole Elec. Coop.) Series 1984 D, 3.15%,
tender 6/15/93 3,420 3,420
Volusia County Ind. Dev. Auth. Rev.
(Southern States Util. Proj.) Series 1994,
4.15%, LOC Sun Bank of Olando, VRDN (b) 2,290 2,290
151,944
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
GEORGIA - 1.8%
Cartersville Dev. Auth. Ind. Dev. Rev. (Sekisui Jushi America)
Series 1992, 4.30%, LOC Sanwa Bank, VRDN (b) $ 4,100 $ 4,100
Floyd County Dev. Auth. Ind. Dev. Rev.
(Marglen Ind. Inc., Proj.) 4.15%,
LOC Trust Co. Bank of Georgia, VRDN (b) 6,200 6,200
Georgia Ports Auth. Rev.
(Mayor's Point Terminal) Series 1992, 4.15%,
LOC Trust Co. Bank of Georgia, VRDN (b) 4,000 4,000
Greene County Ind. Dev. Rev.
(Chipman-Union Inc., Proj.) Series 1991, 4.15%,
LOC Trust Co. Bank of Georgia, VRDN (b) 1,900 1,900
Metropolitan Atlanta Rapid Transit Auth. Sales Tax. Rev.
Rfdg. Series G, 8.50% 7/1/95 5,495 5,681
Newton County Ind. Dev. Auth. Ind. Dev. Rev.
(Kopmatsu Forklift USA, Inc.) 4.25%,
LOC Ind. Bank of Japan, VRDN (b) 3,000 3,000
Pierce County Ind. Dev. & Bldg. Auth. Rev.
(American Egg Products Inc., Proj.) Series 1989,
4.15%, LOC Trust Co. Bank of Georgia, VRDN (b) 1,650 1,650
Rockdale County Ind. Dev. Rev. (Takahashi Works USA)
Series 1990, 4.15%, LOC Sanwa Bank, VRDN (b) 3,575 3,575
Savannah Port Auth. (Pier 1 Imports Inc.) 4.20%,
LOC Nat'l. Westminster Bank, VRDN (b) 4,200 4,200
Worth County Ind. Dev. Auth. Rev. (Seabrook Ent. Proj.)
Series 1991, 4.05%, LOC Barclays Bank, VRDN (b) 5,000 5,000
39,306
HAWAII - 0.3%
Hawaii Hsg. Fin. & Dev. Corp.
Participating VRDN, Series PT-35, 4.35%
(Liquidity Facility Ind. Bank of Japan) (b)(c) 6,190 6,190
IDAHO - 0.1%
Port of Lewiston Ind. Dev. Rev. (Blount Inc.) Series 1995,
4.30%, LOC NationsBank of Georgia, VRDN (b) 1,800 1,800
ILLINOIS - 5.1%
Carol Stream Multi-Family Hsg. Rev. (St. Charles Square Proj.)
Series 1993, 4.60%, LOC Heller Financial, VRDN (b) 7,850 7,850
Chicago Gen. Arpt. Rev. (O'Hare Int'l. Arpt.) VRDN (b):
Series 1988 A, 4.25%, LOC Sanwa Bank 13,200 13,200
Series 1988 B, 4.25%, LOC Sanwa Bank 11,000 11,000
Chicago O'Hare Int'l. Arpt. Spl. Facs. Rev.
(Northwest Orient Airlines) 4.35%,
LOC Mitsubishi Bank, VRDN (b) 700 700
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
ILLINOIS - CONTINUED
Illinois Dev. Fin. Auth. Adj. Rate Ind. Dev. Rev., VRDN (b):
(FC Ltd. Partnership), 4.30%, LOC Lasalle Nat'l. Bank $ 3,525 $ 3,525
(Yale-South Haven Proj.) Series 1994,
4.35%, LOC Bank One of Indianapolis 3,100 3,100
Illinois Dev. Fin. Auth. Ind. Dev. Rev., VRDN (b):
(Belmont Steel Proj.) Series 1991, 4.40%,
LOC Comerica Bank 4,500 4,500
(Chicago Fineblanking Corp. Proj.) 4.20%,
LOC Nat'l. Bank of Detroit 4,000 4,000
(Kindlon Partners Proj.) Series 1994, 4.35%,
LOC Lasalle Nat'l. Bank 1,500 1,500
(Rich Products Corp. Proj.) Series 1993, 4.15%,
LOC Trust Co. Bank of Georgia 7,800 7,800
Illinois Dev. Fin. Auth. Ltd. Oblig. Rev., VRDN (b):
(R.S. Anderson Co. Proj.) 4.50%, LOC Comerica Bank 1,300 1,300
(SWD Inc., Proj.) 4.20%, LOC Nat'l. Bank of Detroit 5,500 5,500
Illinois Gen. Oblig. TRAN 4.75 4/17/95 28,000 28,030
Illinois Ind. Dev. Fin. Auth. Ind. Rev. (Eakas Corp. Proj.)
Series 1989, 4.45%, LOC Bank of Tokyo, VRDN (b) 8,000 8,000
Kane, Cook & DuPage Counties School Dist. U-46 TAN
5% 9/29/95 9,000 9,015
St. Charles Ind. Dev. Rev.
(Pier 1 Imports-Midwest, Inc., Proj.) Series 1986,
4.20%, LOC Nat'l. Westminster Bank, VRDN (b) 2,100 2,100
111,120
INDIANA - 0.9%
Indiana Hsg. Fin. Auth. Single Family Mtg. Rev. Bonds
Series 1994 C, 4.40%, tender 7/3/95 (FGIC Insured) (b) 6,625 6,625
Jeffersonville Econ. Dev. Rev. (Apollo America Corp.)
Series 1991, 5.50%, LOC Tokai Bank, VRDN (b) 7,000 7,000
Lebanon Econ. Dev. Rev. (White Castle Sys. Inc., Proj.)
4.34%, LOC Bank One, VRDN (b) 2,270 2,270
Ligonier Econ. Dev. Rev. (Sharon Manufacturing Co.)
4.20%, LOC Nat'l. Bank of Detroit, VRDN (b) 4,900 4,900
20,795
IOWA - 1.2%
Clinton Ind. Dev. Rev. (Sethness Products Co. Proj.)
4.35%, LOC Northern Trust Corp., VRDN (b) 4,000 4,000
Iowa Fin. Auth. Ind. Dev. Rev. (McWane Inc., Proj.)
Series 1992, 4.35, LOC Amsouth Bank, VRDN (b) 6,000 6,000
Iowa Student Loan Liquidity Corp. Student Loan Rev. Series B,
4.20%, (AMBAC Insured) (BPA Mitsubishi Bank) VRDN (b) 15,700 15,700
25,700
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
KANSAS - 0.2%
Olathe Ind. Dev. Rev. (Garmin Int'l. Inc.) Series 1995,
4.30%, LOC Boatmens Nat'l. Bank of Kansas City, VRDN $ 3,500 $ 3,500
KENTUCKY - 0.9%
Cynthiana Ind. Dev. Rev. (E.D. Bullard Co. Proj.) 4.30%,
LOC NationsBank of North Carolina, VRDN (b) 1,440 1,440
Daviess County Multi-Family Hsg. Rev. Rfdg.
(Park Regency Apts. Proj.) 4.45%,
LOC Sumitomo Bank, VRDN (b) 4,155 4,155
Daviess County Solid Waste Disp. Facs. Rev.
(Scott Paper Co. Proj.) Series 1993 A,
4.20%, LOC Morgan Guaranty Trust Co., VRDN 1,000 1,000
Kentucky Higher Ed. Student Loan Auth. Rev. Series 1991 E,
4.25%, LOC Sumitomo Bank, VRDN (b) 4,000 4,000
Pulasky County Eastern Kentucky Pwr. Coop. Fin. Corp.
Bonds (Nat'l. Rural Util. Coop.) Series 1993 B,
4.65%, tender 8/15/95 (b) 3,500 3,500
Scott County Adj. Rate Ind. Bldg. Rev. (Ropak Corp. Proj.)
Series 1994, 4.35%, LOC Bank One, VRDN (b) 5,500 5,500
19,595
LOUISIANA - 1.6%
Calcasieu Parish Pub. Trust Auth. Solid Waste
Disp. Rev. (PPG Industries Inc., Proj.)
Series 1994, 4.38%, VRDN (b) 6,300 6,300
Lake Charles Hbr. & Terminal Dist. Port Impt. Rev.
4.38%, LOC Nat'l. Westminster Bank, VRDN (b) 23,000 23,000
Louisiana Pub. Facs. Auth. Rev., VRDN:
(College & Univ. Equip. & Cap. Facs. Rev.)
Series 1985, 4.10% (FGIC Insured) (BPA Tokai Bank) 3,170 3,170
(Greenbriar Hosp. Proj.)
Series 1984, 4.05%, LOC Societe Generale 2,100 2,100
34,570
MAINE - 0.4%
Eastport Ind. Dev. Rev. (Passamaquoddy Tribe
Fibre Extrusion Proj.) Series 1992, 4.35%,
LOC Nat'l. Bank of Detroit, VRDN (b) 4,860 4,860
Maine Fin. Auth. Econ. Dev. Rev., VRDN (b):
Series 1992 A, 4.40%, LOC Sumitomo Bank 1,670 1,670
Series 1992 C, 4.40%, LOC Sumitomo Bank 760 760
Series 1992 D, 4.40%, LOC Sumitomo Bank 600 600
7,890
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
MARYLAND - 1.9%
Baltimore Econ. Dev. Rev., VRDN (b):
(Oles Envelope):
Series A, 4.25%, LOC First Fidelity Bank $ 3,500 $ 3,500
Series B, 4.25%, LOC First Fidelity Bank 4,260 4,260
(Rock-Tenn Converting Co.) Series 1987, 4.15%,
LOC Trust Co. Bank of Georgia 1,455 1,455
Maryland Commty. Dev. Administration
Dept. of Hsg. & Commty. Dev. Single Family Mtg.
Participating VRDN, Series PT-36, 4.25%
(Liquidity Facility Ind. Bank of Japan) (b)(c) 18,800 18,800
Montgomery County Hsg. Opportunity Commission
(Draper Lane Apts.) 4.15% (FGIC Insured)
(BPA Sumitomo Bank) VRDN (b) 10,200 10,200
Prince George's County Ind. Dev. Rev.
(Cintas Corp. #41 Proj.) 4.30%,
LOC Pittsburgh Nat'l. Bank, VRDN (b) 2,615 2,615
40,830
MASSACHUSETTS - 0.8%
Commonwealth of Massachusetts Gen. Oblig. BAN
Series 1994 A, 5% 6/15/95 18,000 18,041
MICHIGAN - 1.2%
Michigan Hosp. Fin. Auth. Rev. (Hosp. Equip. Loan Prog.)
Series 1991, 6.95%, LOC Comerica Bank, VRDN 1,380 1,380
Michigan Muni. Bond Auth. Rev. RAN
Series 1994 B, 4.75% 7/20/95 15,000 15,042
Michigan Strategic Fund Ltd. Oblig. Rev.
(Michigan Sugar Co. - Carrollton) 4.15%,
LOC Trust Co. Bank of Georgia, VRDN (b) 6,000 6,000
Michigan Strategic Fund Poll. Cont. Rev. (Dow Chemical
Proj.) Series 1988, 4%, tender 3/7/95 (b) 3,010 3,010
Rochester Hills Econ. Dev. Corp. Ltd. Oblig. Rev.
(Cardell Corp.) 4.35%, LOC Comerica Bank, VRDN (b) 1,450 1,450
26,882
MINNESOTA - 0.4%
Anoka County United Pwr. Assoc. Rev. Bonds (Nat'l. Rural
Util. Coop.) Series 1988 A, 4.30%, tender 5/11/95 (b) 1,300 1,300
Baudette Ind. Dev. Rev. (Reid-Rowell Inc., Proj.) Series 1989
4.30%, LOC NationsBank of Georgia, VRDN (b) 2,000 2,000
Osseo Ind. School Dist. Participating VRDN, Series 279, 4.30%
(Liquidity Facility First Nat'l. Bank of Minnesota) (c) 6,000 6,000
9,300
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
MISSISSIPPI - 0.8%
Canton Ind. Dev. Auth. Rev.
(McCarty Farms Proj.) Series 1990, 4.15%,
LOC Trust Co. Bank of Georgia, VRDN (b) $ 6,000 $ 6,000
Desoto County Ind. Dev. Rev.
(Flavorite Labs Proj.) Series 1991 B,
4.50%, LOC First Tenn. Nat'l. Corp., VRDN (b) 3,200 3,200
Mississippi Business Fin. Corp. Ind. Dev. Rev
(Pillowtex Corp. Proj.) Series 1992, 4.25%,
LOC NationsBank of North Carolina, VRDN (b) 4,600 4,600
Noxubee County Ind. Dev. Board Rev. (Barge Forest Products
Co. Proj.) 4.38%, LOC Amsouth Bank, VRDN (b) 3,625 3,625
17,425
MISSOURI - 3.3%
Berkeley Ind. Dev. Auth. Tax Exempt Facs. Rev.
(St. Louis Air Cargo Svcs. Proj.)
4.25%, LOC Sumitomo Bank, VRDN (b) 7,750 7,750
Missouri Higher Ed. Loan Auth. Student Loan Rev.,
VRDN (b):
Series 1988 A, 4.25%, LOC Dai-Ichi Kangyo Bank 14,600 14,600
Series 1990 A, 4.25%, LOC Nat'l. Wesminster Bank 3,500 3,500
Series 1990 B, 4.25%, LOC Nat'l. Westminster Bank 6,600 6,600
Series 1991 B, 4.25% (MBIA Insured)
(BPA NMB Postbank) 29,500 29,500
University of Missouri Cap. Proj. RAN
Series 1994-95A, 4.50% 6/30/95 11,000 11,023
72,973
MONTANA - 0.8%
Montana Gen. Oblig. TRAN Series 1994, 5% 6/30/95 17,200 17,255
NEVADA - 5.2%
Clark County Ind. Dev. Rev. (Nevada Pwr. Co. Proj.)
Series 1989 A, 4.30%, LOC Societe Generale,
VRDN (b) 28,600 28,600
Clark County Poll. Cont. Rev. Bonds
(Southern California Edison Co.) Series 1987 A (b):
4.40%, tender 3/14/95 5,000 5,000
4.25%, tender 4/6/95 7,615 7,615
4.30%, tender 4/7/95 3,000 3,000
4.20%, tender 5/10/95 5,000 5,000
4.30%, tender 5/12/95 3,575 3,575
4.35%, tender 5/16/95 4,000 4,000
Henderson Pub. Impt. Trust Multi-Family Hsg. Bonds (Victory
Village Proj.) 5.90%, tender 3/27/95
(FGIC Insured) (b) 15,000 15,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
NEVADA - CONTINUED
Las Vegas Local Impt. Spl. Impt. Bonds
(Spl. Impt. Dist. #404 Summerlin Area)
5.30%, tender 3/1/95 LOC Tokai Bank $ 1,300 $ 1,300
Nevada Director State Dept. Commission Adj. Rate Ind.
Rev. (Primex Corp.) 4.35%, LOC BankOne, VRDN (b) 3,255 3,255
Washoe County Gas Facs. Rev. Bonds
(Sierra Pacific Pwr. Co.) Series 1990 (b):
4%, tender 3/7/95,
LOC Union Bank of Switzerland 20,315 20,315
4.40%, tender 3/14/95,
LOC Union Bank of Switzerland 1,600 1,600
4.25%, tender 4/7/95,
LOC Union Bank of Switzerland 2,990 2,990
4.35%, tender 5/16/95,
LOC Union Bank of Switzerland 10,000 10,000
4.30%, tender 5/17/95,
LOC Union Bank of Switzerland 2,050 2,050
113,300
NEW HAMPSHIRE - 0.6%
New Hampshire Higher Ed. & Health Facs. Auth. Rev. Bonds
(Dartmouth Ed. Loan Corp.) 4.50%, tender 6/1/95 (b) 1,670 1,670
New Hampshire Hsg. Fin. Auth. Multi-Family Hsg. Rev., VRDN:
Rfdg. (Nashua-Oxford Proj.) Series 1990, 4.40% 1,100 1,100
(Fairways Proj.) 4.15%,
LOC General Electric Capital Corp. (b) 10,000 10,000
12,770
NEW JERSEY - 0.5%
Cherry Hill Township BAN 5.50% 12/13/95 9,669 9,716
NEW MEXICO - 0.5%
New Mexico Ed. Assistance Fund Student Loan Rev.
Series I, 4.15%, VRDN (b) 10,500 10,500
NEW YORK - 2.0%
New York City RAN Series A, 4.50% 4/12/95 33,000 33,020
New York Tollway Auth. Gen. Rev. BAN
Series 1994, 4.19% 4/14/95 10,700 10,700
43,720
NORTH CAROLINA - 1.4%
Bladen County Ind. Facs. & Poll. Cont. Fin. Auth. Rev.
(BCH Energy Ltd. Partnership) 4.30%,
LOC Bank of Tokyo, VRDN 12,000 12,000
Cleveland County Ind. Facs. & Poll. Cont. Fin. Auth. Solid
Waste Disp. Rev. (PPG Ind. Proj.) 4.38%, VRDN (b) 3,300 3,300
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
NORTH CAROLINA - CONTINUED
Guilford County Ind. Facs. & Poll. Cont. Fin. Auth. Rev.
(High Point Chemical Corp.) Series 1994, 4.45%,
LOC Sumitomo Bank, VRDN (b) $ 3,000 $ 3,000
Johnston County Ind. Facs. & Poll. Cont. Rev. Fin.
Auth. Ind. Dev. Rev. (Kabivitrum Inc., Proj.)
4.20%, LOC Skandinaviska Enskilda Banken, VRDN 2,000 2,000
Piedmont Triad Arpt. Auth. Spl. Facs. Rev.
(Triad Int'l. Maintenance Corp. Proj.) Series 1989,
4.40%, LOC Mellon Bank, VRDN (b) 10,300 10,300
30,600
NORTH DAKOTA - 0.1%
Mercer County Solid Waste Disp. Rev. Bonds
(United Pwr. Proj.) 4.25%, tender 6/1/95 (b) 2,800 2,800
OHIO - 1.1%
Dayton Spl. Facs. Rev. Rfdg. (Emery Air Freight Corp. Proj.)
Series 1988 C, 4.50%, LOC Mellon Bank, VRDN 6,300 6,300
Middletown Ind. Dev. Rev. (Pilot Chemical Proj.)
4.35%, LOC Bank One of Dayton VRDN (b) 900 900
Ohio Ind. Dev. Rev. (Masashi Nagai/Snair Co.) Series A,
4.30%, LOC Banc One of Columbus, VRDN (b) 1,340 1,340
Ohio Wtr. Dev. Auth. Poll. Cont. Facs. Rev. Bonds
(Duquesne Lt. Co. Proj.) (b):
4%, tender 3/7/95,
LOC Toronto Dominion Bank 3,000 3,000
4%, tender 3/14/95,
LOC Toronto Dominion Bank 6,950 6,950
Student Loan Fund Corp. Student Loan Rev. Series 1990-A2,
4.10%, LOC Nat'l. Westminster Bank, VRDN (b) 4,000 4,000
Summit County Ind. Dev. Rev. (Ganzhorn Properties Proj.)
4.35%, LOC Bank One of Akron, VRDN 1,140 1,140
23,630
OKLAHOMA - 0.9%
Oklahoma Ind. Auth. Adj. Rate Ind. Rev.
(Farley Candy Proj.) 4.50%,
LOC Continental Bank Corp., VRDN (b) 3,000 3,000
Oklahoma Ind. Fin. Auth. Gen. Oblig. Ind. Fin. Bonds
Series L, 4.05%, tender 11/1/93,
LOC Credit Locale de France (b) 7,600 7,600
Southeastern Ind. Auth. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) 4.41%, VRDN (b) 10,000 10,000
20,600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
OREGON - 0.8%
Lane County Swr. Disp. Rev. (Weyerhauser Co. Proj.)
4.45%, VRDN (b) $ 7,100 $ 7,100
Oregon Econ. Dev. Dept. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) Series CL, 4.45%, VRDN (b) 3,000 3,000
Port of Umatilla Ltd. Oblig. Rev.
(Hermiston Food Proj.) Series 1989, 4.25%,
LOC U.S. Nat'l. Bank of Oregon, VRDN (b) 3,900 3,900
Portland Econ. Dev. Rev. (Columbia Aluminum Recycling Proj.)
4.25%, LOC U.S. Nat'l. Bank of Oregon, VRDN (b) 3,350 3,350
17,350
PENNSYLVANIA - 6.3%
Butler County Ind. Dev. Rev. Board
(JSM Acquisition Corp. Proj.) Series 1989 A,
4.30%, 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 1990 A:
4%, tender 3/6/95, LOC Nat'l. Westminster Bank 10,500 10,500
4.50%, tender 3/13/95, LOC Nat'l. Westminster Bank 5,000 5,000
Series 1991 A:
4.35%, tender 5/18/95, LOC Nat'l. Westminster Bank 1,400 1,400
4.50%, tender 3/13/95, LOC Nat'l. Westminster Bank 9,575 9,575
Series 1992 A:
4.15%, tender 3/8/95 LOC Nat'l. Westminster Bank 10,000 10,000
4.15%, tender 3/14/95 LOC Nat'l. Westminster Bank 5,000 5,000
Series B:
4%, tender 3/6/95, LOC Nat'l. Westminster Bank 4,000 4,000
4.30%, tender 5/17/95, LOC Nat'l. Westminster Bank 2,700 2,700
4.35%, tender 5/18/98, LOC Nat'l. Westminster Bank 8,285 8,285
Erie County Ind. Dev. Auth. Rev. (Carlisle Corp. Proj.) Series
1993, 4.15%, LOC Trust Co. Bank of Georgia, VRDN (b) 1,500 1,500
Northampton County Ind. Dev. Auth. Rev. Bonds
(Citizens Utilities Co. Proj.) Series 1991,
4.30%, tender 5/11/95 (b) 2,000 2,000
Northumberland County Ind. Dev. Board Rev.
(Foster Wheeler Mt. Carmel Inc., Proj.) VRDN (b):
Series 1987 A, 4.25%, LOC Union Bank of Switzerland 9,600 9,600
Series 1987 B, 4.25%, LOC Union Bank of Switzerland 1,200 1,200
Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN (b):
(BPS Dev. Proj.) Series 1989 D-3,
4.30%, LOC Pittsburgh Nat'l. Bank 225 225
(C&D Charter Pwr. Sys.) Series 1991 D-6,
4.30%, LOC Pittsburgh Nat'l. Bank 1,300 1,300
(Corry Laser Technology Proj.) Series 1989 D-5,
4.30%, LOC Pittsburgh Nat'l. Bank 150 150
(Johnstown Corp. Proj.)
4.30%, LOC Pittsburgh Nat'l. Bank 600 600
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
PENNSYLVANIA - CONTINUED
Pennsylvania Gen. Oblig. TAN 4.75% 6/30/95 $ 6,500 $ 6,516
Pennsylvania Higher Ed. Assistance Agcy. Student Loan Rev.,
Series 1994 A, 4.10%, LOC SLMA, VRDN (b) 10,000 10,000
Philadelphia Ind. Dev. Auth. Commercial Dev. Rev. (Arpt. Hotel
Proj.) Series 1990, 4.15%, LOC Citibank, VRDN (b) 11,000 11,000
Philadelphia TRAN Series 1994-95 D,
4.75% 6/15/95, LOC Morgan Guaranty Trust Co. 14,500 14,537
Venango Ind. Dev. Auth. Resource Recovery Rev. Bonds
(Scrubgrass Proj.) (b):
Series 1990 A:
4.15%, tender 3/7/95, LOC Nat'l. Westminster Bank 5,000 5,000
4.15%, tender 3/14/95,
LOC Nat'l. Westminster Bank 2,400 2,400
4.30%, tender 5/17/95,
LOC Nat'l. Westminster Bank 2,750 2,750
Series 1990 B:
4%, tender 3/22/95, LOC Nat'l. Westminster Bank 4,100 4,100
4.15%, tender 5/10/95,
LOC Nat'l. Westminster Bank 7,800 7,800
139,088
SOUTH CAROLINA - 3.1%
Dorchester County Ind. Dev. Rev. (SYN Strand Inc.)
Series 1994, 4.13%, LOC Wachovia Bank, VRDN (b) 6,650 6,650
Marion County Ind. Dev. Rev.
(New South Proj.) Series 1994, 4.30%,
LOC Nationsbank of North Carolina, VRDN (b) 4,000 4,000
South Carolina Jobs Econ. Dev. Auth. Econ. Rev., VRDN:
(Alexander Mach Inc., Proj.) Series 1994,
4.30%, LOC NationsBank of South Carolina (b) 2,500 2,500
(Alfmeir Corp.) 4.13%, LOC Bayerische Landesbank (b) 3,500 3,500
(Jackson Mills Inc., Proj.) Series 1994,
4.15%, LOC Trust Co. Bank of Georgia (b). 4,400 4,400
(Peace Textile America Proj. 1992)
4.30%, LOC NationsBank of North Carolina (b) 3,000 3,000
(Zeuna Staerker USA Inc., Proj.) Series 1993,
4.25%, LOC Bayerische Landesbank 7,200 7,200
South Carolina Jobs Econ. Dev. Auth. Rev. (Wellman Inc.,
Proj.) 4.125%, LOC Wachovia Bank, VRDN (b) 7,500 7,500
South Carolina Port Auth. (Jr Lien) 4.25%,
LOC South Carolina Nat'l. Bank, VRDN (b) 20,700 20,700
Spartanburg County Ind. Dev. Rev. (Prym-Dritz Corp. Proj.)
4.125%, LOC Wachovia Bank & Trust, VRDN (b) 4,500 4,500
Union County Ind. Dev. Auth. Rev. (Federal Paper Board
Proj.) 4.125%, LOC Wachovia Bank, VRDN (b) 4,000 4,000
67,950
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
TENNESSEE - 3.1%
Anderson County Ind. Dev. Board Rev. (Becromal of
America Proj.) Series 1988, 4.45%,
LOC Credito Italiano, VRDN (b) $ 2,000 $ 2,000
Carter County Ind. Dev. Board Multi-Family Hsg. Rev. Rfdg.
(Willow Run Apts.) Series 1990, 4.45%,
LOC Sumitomo Bank, VRDN (b) 6,675 6,675
Claiborne County Ind. Dev. Rev. (Royal Sterilization System)
4.50%, LOC First Tennessee Nat'l. Corp., VRDN (b) 3,600 3,600
Hamilton County Ind. Dev. Board Multi-Family Hsg. Rev.
(Waterford Place Apts. Proj.) Series 1987,
4.85%, LOC Marine Midland Bank, VRDN (b) 10,300 10,300
Knox County Ind. Dev. Rev.
(Rock-Tenn Converting Proj,) Series 1993, 4.15%,
LOC Trust Co. Bank of Georgia, VRDN (b) 1,000 1,000
Memphis Gen. Oblig. Arpt. Rev. Series 1987 D, VRDN (b):
4.15%, LOC Ind. Bank of Japan 4,100 4,100
4.15%, LOC Ind. Bank of Japan 6,300 6,300
Memphis Ind. Dev. Rev. (Techno Steel Corp.) Series 1989,
4.40%, LOC Mitsui Bank, VRDN (b) 4,000 4,000
Memphis-Shelby County Arpt. Auth. 4.50% 3/10/95
LOC Canadian Imperial Bank (b) 4,500 4,500
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 NA 1,885 1,885
Series 1993 B, 4%, tender 7/1/95,
LOC First Bank NA 2,135 2,135
Morristown Ind. Dev. Rev., VRDN (b):
(Lakeway Container Inc., Proj.) Series 1993,
4.50%, LOC First Tennessee Bank 400 400
(Tuff Torq Corp. Proj.) Series 1989,
4.45%, LOC Bank of Tokyo 4,950 4,950
Tennessee Hsg. Dev. Agency Participating VRDN,
Series PT-25, 4.30% (AMBAC Insured)
(Liquidity Facility Credit Suisse) (b)(c) 14,840 14,840
Trenton Ind. Dev. Rev. (Dyersburg Fabrics Inc.) Series 1990,
4.15%, LOC Trust Co. Bank of Georgia, VRDN (b) 1,050 1,050
67,735
TEXAS - 15.1%
Austin Ind. School Dist. TRAN 4.792% 8/31/95 (d) 9,000 9,000
Brazos River Auth. Collateralized Poll. Cont. Rev.
Rfdg. Bonds (Texas Util. Elec.) (b):
Series A:
4%, tender 3/8/95, LOC Canadian Imperial Bank 1,500 1,500
4.15%, tender 3/8/95, LOC Canadian Imperial Bank 1,000 1,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
TEXAS - CONTINUED
Brazos River Auth. Collateralized Poll. Cont. Rev. Rfdg.
Bonds (Texas Util. Elec.) (b) - continued
Series A - continued
4.50%, tender 3/10/95,
LOC Canadian Imperial Bank $ 13,000 $ 13,000
4%, tender 3/22/95,
LOC Canadian Imperial Bank 10,670 10,670
Series B, 4.40%, tender 5/15/95,
LOC Canadian Imperial Bank 21,170 21,170
Brazos River Hbr. Navigation Dist. Rev. Bonds
(Dist. of Brazoria) (Dow Chemical Proj.)(b):
Series 1988:
4%, tender 3/6/95 6,900 6,900
4.15%, tender 3/8/95 8,570 8,570
4%, tender 3/16/95 7,400 7,400
4.25%, tender 4/7/95 9,000 9,000
4.15%, tender 5/10/95 7,500 7,500
4.40%, tender 5/11/95 2,000 2,000
Series 1992:
4%, tender 3/6/95 4,000 4,000
4.15%, tender 3/8/95 5,660 5,660
4.50%, tender 3/13/95 14,350 14,350
4.15%, tender 5/10/95 5,700 5,700
4.30%, tender 5/17/95 4,590 4,590
Brownsville Ind. Dev. Corp. Rev.
(Rich-Seapak Corp. Proj.) Series 1992,
4.15%, LOC Trust Co. Bank of Georgia, VRDN (b) 7,750 7,750
Cleburne Ind. Dev. Rev. (Southwestern Analytical
Chemical Proj.) 4.50%, LOC Nat'l. City Bank,
VRDN (b) 2,775 2,775
Denton County Ind. Dev. Rev. (Hydro Conduit Corp.)
4.50%, LOC Union Bank of Switzerland, VRDN (b) 6,900 6,900
Greater East Texas Higher Ed. Auth. Student Loan Rev.,
VRDN (b):
Series 1988, 4.20% (AMBAC Insured) (BPA Citibank) 7,500 7,500
Series 1988 A:
4% (AMBAC Insured) (BPA Citibank) 29,700 29,700
4.20% (AMBAC Insured) 23,360 23,360
Series 1991 A, 4.20%, LOC SLMA 15,500 15,500
Series 1993 B, 4.20%, LOC SLMA, VRDN (b) 10,000 10,000
Gulf Coast Waste Disp. Auth. Rev.
(Amoco Oil Co. Proj.) 4.20%, VRDN (b) 1,700 1,700
Houston Arpt. Sys. Rev. (Sr. Lien) Series 1993 A,
4.20% 4/10/95, LOC Morgan Guaranty Trust Co. (b) 3,600 3,600
Houston TRAN Series 1994 A (d):
4.368% 3/30/95 4,800 4,800
4.456% 3/30/95 1,500 1,500
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
TEXAS - CONTINUED
McKinney Ind. Dev. Corp. Ind. Dev. Rev.
(Delta Daily Food Inc., Proj.) Series 1994,
4.05%, LOC Rabo Bank, VRDN (b) $ 8,500 $ 8,500
North Texas Higher Ed. Auth. Student Loan Rev.,
VRDN (b):
Series 1990, 4.10%, LOC SLMA 2,700 2,700
Series 1991 C, 4.10% (AMBAC Insured) (BPA SLMA) 5,000 5,000
Orange County Navigational & Port Dist. Auth. Rev.
(Coastal Films Inc.) 4.30%,
LOC NationsBank of Texas, VRDN (b) 5,000 5,000
San Antonio Hsg. Fin. Auth. Corp. Rev., VRDN (b):
(Braesview Apts. Proj.) 4.10%, LOC Swiss Bank Corp. 2,100 2,100
(Mesa Ridge Apts. Proj.) 4.10%, LOC Swiss Bank 2,100 2,100
Southeast Texas Hsg. Finance Corp. Participating VRDN, ,
Series 1991 C, 4.55% (Liquidity Facility Bank One) (b)(c) 7,800 7,800
Texas Gen. Oblig. TRAN 5% 8/31/95 25,000 25,032
Texas Small Bus. Ind. Dev. Corp. Rev. (Pub. Facs. Prog.)
4.15%, LOC Nat'l. Westminster Bank;
Credit Suisse U.S., VRDN 20,195 20,195
Travis County Hsg. Fin. Corp. Multi-Family Hsg. Rev.
(Primecrest Ltd. Proj.) VRDN (b):
Series 1990 A, 4.15%, LOC Algemene Bank 500 500
Series 1990 B, 4.15%, LOC Algemene Bank 1,200 1,200
Waxahachie Ind. Dev. Auth.
(Rock-Tenn Converting Co. Proj.) Series 1986, 4.15%,
LOC Trust Co. Bank of Georgia, VRDN (b) 3,145 3,145
330,367
UTAH - 2.0%
Intermountain Pwr. Agency Pwr. Supply Rev. Rfdg.
Participating VRDN, Series BT-50, 4.25%,
(Liquidity Facility Bankers Trust) (c) 9,690 9,690
Salt Lake City Arpt. Rev. Series A, 4.10%
LOC Credit Suisse, VRDN (b) 4,300 4,300
Tooele County Hazardous Waste Treatment Rev. Bonds
(Union Pacific Corp./USPCI Proj.) Series 1992 A (b):
4.20%, tender 4/6/95 5,000 5,000
4.20%, tender 4/7/95 10,000 10,000
4.35%, tender 4/7/95 4,700 4,700
4.25%, tender 4/12/95 2,600 2,600
Utah Board of Regents Student Loan Rev
Series 1988 C, 4.10%
(AMBAC Insured) (BPA Dresdner Bank) VRDN (b) 3,100 3,100
Utah County Ind. Dev. Rev. (McWane Inc., Proj.)
Series 1992, 4.35%, LOC Amsouth Bank, VRDN (b) 5,000 5,000
44,390
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
VERMONT - 0.1%
Vermont Ind. Dev. Auth. Rev. (Ryegate Proj.) Series 1990,
4.20%, LOC Algemene Bank, VRDN (b) $ 3,000 $ 3,000
VIRGINIA - 5.0%
Amelia County Facs. Rev. (Chambers Waste Sys. Proj.)
4.25%, LOC NationsBank of North Carolina, VRDN (b) 4,400 4,400
Amerherst Ind. Dev. Auth. Solid Waste Rev. (Nekoosa Pkg.
Proj.) 4.25%, 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):
4.60%, tender 3/8/95 5,000 5,000
4.60%, tender 3/8/95 8,100 8,100
4.60%, tender 3/9/95 20,000 20,000
Henrico County Ind. Dev. Auth. Rfdg. (San-J Int'l. Proj.)
Series 1988, 4.75%, LOC Tokai Bank, VRDN (b) 2,500 2,500
Mecklenburg County Ind. Auth. (American Bldgs. Co. Proj.)
4.50%, LOC Lasalle Nat'l. Bank, VRDN (b) 8,000 8,000
Virginia Beach Dev. Auth. Rfdg. Rev.
(Ocean Ranch Motel Corp. Proj.) Series 1993,
4.25%, LOC Nationsbank of Virginia, VRDN 2,000 2,000
Virginia Hsg. Dev. Auth. Mtg. Bonds Series 1993-I,
4.20%, tender 5/11/95 (b) 48,000 48,000
Virginia Hsg. Dev. Auth. Participating VRDN (b)(c):
Series PA-80A, 4.25% (Liquidity Facility Merrill Lynch) 5,220 5,220
Series PA-80B, 4.25% (Liquidity Facility Merrill Lynch) 4,000 4,000
109,970
WASHINGTON - 4.2%
Grays Hbr. Ind. Dev. Corp. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) 4.45%, VRDN (b) 9,650 9,650
Klickitat County Pub. Corp. Ind. Dev. Rev. (Rabanco Landfill)
Series 1990, 4.50%, LOC Bank of America, VRDN (b) 10,700 10,700
Pierce County Econ. Dev. Corp. Ind. Dev. Rev.
(Pacific N.W. Baking Co. Proj.) Series 1988,
4.25%, LOC Barclays Bank, VRDN (b) 5,350 5,350
Pierce County Ind. Rev. (America Nichirei Foods Corp.)
Series 1987, 4.60%, LOC Fuji Bank, VRDN (b) 6,500 6,500
Port Angeles Ind. Dev. Corp. Rev.
(Daishowa America Proj.) VRDN (b):
Series 1991, 4.45%, LOC Ind. Bank of Japan 5,500 5,500
Series 1992, 4.45%, LOC Ind. Bank of Japan 6,200 6,200
Series 1992 B, 4.45%, LOC Ind. Bank of Japan 3,300 3,300
Port Bellingham Ind. Dev. Rev. (Sauder Woodcraft Corp.)
4.50%, LOC Bank of America, VRDN (b) 3,880 3,880
Port Longview Ind. Dev. Corp. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) Series 1993, 4.41%, VRDN 20,400 20,400
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
WASHINGTON - CONTINUED
Washington Commty. Econ. Revitalization Rev.
(Sanken USA) Series 1988-1, 4.25%,
LOC Ind. Bank of Japan, VRDN (b) $ 4,270 $ 4,270
Washington Hsg. Fin. Commission Multi-Family
Mtg. Rev. (Canyon Lake II) 4.10%,
LOC US. Nat'l. Bank of Washington, VRDN (b) 4,370 4,370
Washington Student Loan Fin. Assoc. Guaranteed
Student Loan Prog. Rev. VRDN (b):
Series 1987 A, 4.20%, LOC Sanwa Bank of California 7,000 7,000
Series 1987 B, 4.20%, LOC Sanwa Bank of California 4,200 4,200
91,320
WEST VIRGINIA - 1.8%
Grant County Commission Rev. (N.B. Partners Ltd.)
Series-B, 4.20%, LOC Bank of America, VRDN (b) 7,800 7,800
Grant County Poll. Cont. Rev. Bonds (Vepco Proj.)
Series 1986, 4.60%, tender 3/9/95 (b) 7,400 7,400
West Virginia Pub. Energy Auth. Energy Rev. Bonds
(Morgantown Energy Assoc.) (b):
4%, tender 3/9/95, LOC Swiss Bank 16,900 16,900
4%, tender 3/15/95, LOC Swiss Bank 3,000 3,000
Wood County Ind. Dev. Rev.
(AGA Gas Inc., Proj.) Series 1988, 4.15%,
LOC Svenska Handelsbanken, VRDN (b) 4,800 4,800
39,900
WISCONSIN - 3.6%
Ashwaubenon Ind. Dev. Rev. (Tufco Proj.) Series 1992,
4.35%, LOC Bank One, VRDN (b) 2,000 2,000
Wisconsin Gen. Oblig. BAN
Series 1995 A, 5% 3/1/95 (d) 12,800 12,800
Wisconsin Gen. Oblig. Participating VRDN, Series 944904,
4.39% (Liquidity Facility Citibank) (b)(c) 9,100 9,100
Jefferson Ind. Dev. Rev. Bonds (Generac Corp. Proj.)
Series 1994, 4.20%, LOC Nat'l. Bank of Detroit,
VRDN (b) 7,200 7,200
Little Chure Ind. Dev. Rev. (Kaukauna Cheese Proj.)
Series 1995, 4.35%, LOC Bank One, VRDN (b) 3,500 3,500
Milwaukee Short-Term School RAN,
Series 1994-B, 5% 8/24/95 17,000 17,059
Rhinelander Ind. Dev. Rev. Bonds (Red Arrow Prod. Co.)
Series 1994, 4.35%, LOC Bank One, VRDN (b) 7,000 7,000
Wisconsin TRAN Series 1994, 4.50% 6/15/95 20,000 20,031
78,690
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
(000S) (000S)
WYOMING - 1.0%
Sublette County Poll. Cont. Rev. Bonds (Exxon Corp.)
Series 1987 A, 4.15%, tender 3/15/95 $ 11,500 $ 11,500
Sweetwater County Envir. Impt. Rev. Bonds
(Pacificorp Proj.) Series 1990 A:
4.10%, tender 4/6/95,
LOC Nat'l. Westminster Bank 6,400 6,400
4.35%, tender 5/18/95,
LOC Nat'l. Westminster Bank 4,420 4,420
22,320
TOTAL INVESTMENTS - 100% $ 2,190,580
Total Cost for Income Tax Purposes $ 2,190,583

SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Austin Ind. School Dist. TRAN
4.792% 8/31/95 9/29/94 $ 9,000,000
Houston TRAN Series 1994 A:
4.368% 11/1/94 $ 4,800,000
4.456% 11/10/94 $ 1,500,000
Wisconsin Gen. Oblig. BAN Series 1995 A
5% 3/1/95 1/19/95 $ 12,800,000
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) FEBRUARY 28, 1995 (UNAUDITED)

7.ASSETS 8. 9.

10.Investment in securities, at value - See 11. $ 2,190,580
accompanying schedule

12.Interest receivable 13. 18,064

14. 15.TOTAL ASSETS 16. 2,208,644

17.LIABILITIES 18. 19.

20.Payable to custodian bank $ 615 21.

22.Payable for investments purchased 37,460 23.

24.Share transactions in process 3,046 25.

26.Dividends payable 208 27.

28.Accrued management fee 671 29.

30. 31.TOTAL LIABILITIES 32. 42,000

33.34.NET ASSETS 35. $ 2,166,644

36.Net Assets consist of: 37. 38.

39.Paid in capital 40. $ 2,166,701

41.Accumulated net realized gain (loss) on investments 42. (57)

43.44.NET ASSETS, for 2,166,701 shares outstanding 45. $ 2,166,644

46.47.NET ASSET VALUE, offering price and redemption 48. $1.00
price per share ($2,166,644 (divided by) 2,166,701 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED FEBRUARY 28, 1995 (UNAUDITED)

49.50.INTEREST INCOME 51. $ 42,275

52.EXPENSES 53. 54.

55.Management fee $ 5,599 56.

57.Non-interested trustees' compensation 6 58.

59. Total expenses before reductions 5,605 60.

61. Expense reductions (1,121) 4,484

62.63.NET INTEREST INCOME 64. 37,791

65.66.NET REALIZED GAIN (LOSS) ON INVESTMENTS 67. (12)

68.69.NET INCREASE IN NET ASSETS RESULTING FROM 70. $ 37,779
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 1995 AUGUST 31,
(UNAUDITED) 1994

71.INCREASE (DECREASE) IN NET ASSETS

72.Operations $ 37,791 $ 52,700
Net interest income

73. Net realized gain (loss) (12) (44)

74. 75.NET INCREASE (DECREASE) IN NET ASSETS 37,779 52,656
RESULTING FROM OPERATIONS

76.Dividends to shareholders from net interest income (37,791) (52,700)

77.Share transactions at net asset value of $1.00 per 1,699,853 3,611,432
share
Proceeds from sales of shares

78. Reinvestment of dividends from net interest income 35,882 50,122

79. Cost of shares redeemed (1,856,951) (3,069,334)

80. Net increase (decrease) in net assets and shares (121,216) 592,220
resulting from share transactions

81. 82.TOTAL INCREASE (DECREASE) IN NET ASSETS (121,228) (592,176)

83.NET ASSETS 84. 85.

86. Beginning of period 2,287,872 1,695,696

87. End of period $ 2,166,644 $ 2,287,872

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED AUGUST 31, JANUARY 14, 1991
ENDED (COMMENCEMENT
FEBRUARY 28, 199 OF OPERATIONS) TO
5 AUGUST 31,

(UNAUDITED) 1994 1993 1992 1991

88.SELECTED PER-SHARE DATA

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

90.Income from .017 .025 .026 .038 .030
Investment
Operations
Net interest
income

91.Less Distributions (.017) (.025) (.026) (.038) (.030)
From net interest
income

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

93.TOTAL RETURN B 1.69% 2.50 2.66 3.91 3.03%
% % %

94.RATIOS AND SUPPLEMENTAL DATA

95.Net assets, $ 2,167 $ 2,288 $ 1,696 $ 1,303 $ 424
end of period
(in millions)

96.Ratio of .40% .33 .27 .20 .09%
expenses A % % % A
to average net
assets

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

98.Ratio of net 3.37% 2.48 2.61 3.67 4.69%
interest income to A % % % A
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. SEE
NOTE 4 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Municipal Money Fund (the fund) is a fund of Fidelity Union Street
Trust II (the trust) and is authorized to issue an unlimited number of
shares. The trust is registered under the Investment Company Act of 1940,
as amended (the 1940 Act), as an open-end management investment company
organized as a Delaware business trust. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. Accretion
of market discount represents unrealized gain until realized at the time of
a security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between
the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
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.
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 $28,100,000 or
1.3% of net assets.
3. 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.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$19,232 for the period.
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.
4. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .40% of average net assets. For the
period, the reimbursement reduced the expenses by $1,121,000. 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.
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.

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

TO WRITE FIDELITY

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
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Thomas D. Maher, Assistant
Vice President
Michael D. Conway, Assistant Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING 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 Arizona Municipal Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
Tax-Exempt Money Market
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE