SUPPLEMENT TO THE
FIDELITY MICHIGAN,
MINNESOTA, AND OHIO FUNDS' FEBRUARY 20, 1996 PROSPECTUS
The following information replaces similar information found in "Charter"
beginning on page 13.
David Murphy is vice president and manager of Michigan Municipal Income,
which he has managed since May 1996. He also manages several other Fidelity
funds. Mr. Murphy joined Fidelity in 1989.
The following information replaces similar information found in "Key Facts"
beginning on page 3.
MICHIGAN MUNICIPAL INCOME
STRATEGY: Invests normally in investment grade municipal securities whose
interest is free from federal income tax and Michigan income tax.
MINNESOTA MUNICIPAL INCOME
STRATEGY: Invests normally in investment grade municipal securities whose
interest is free from federal income tax and Minnesota personal income tax.
OHIO MUNICIPAL INCOME
STRATEGY: Invests normally in investment grade municipal securities whose
interest is free from federal income tax and Ohio individual income tax.
The following information replaces similar information found in the third
paragraph of "Investment Principles and Risks" beginning on page 14.
MICHIGAN MUNICIPAL INCOME, MINNESOTA MUNICIPAL INCOME, and OHIO MUNICIPAL
INCOME seek high current income that is free from federal income tax, its
state income tax, and other taxes in Michigan, Minnesota, and Ohio by
investing in investment-grade municipal securities under normal conditions.
FMR normally invests so that at least 80% of each fund's income is free
from both federal and state income taxes.
The following information replaces similar information found in "Securities
and Investment Practices" on page 16.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. In
general, bond prices rise when interest rates fall, and vice versa. Debt
securities have varying degrees of quality and varying levels of
sensitivity to changes in interest rates. Longer-term bonds are generally
more sensitive to interest rate changes than short-term bonds.
Investment-grade debt securities are medium- and high-quality securities.
Some, however, may possess speculative characteristics, and may be more
sensitive to economic changes and to changes in the financial condition of
issuers.
RESTRICTIONS: The bond funds normally invest in investment-grade
securities, but reserve the right to invest up to 5% of their assets in
below investment-grade securities (sometimes called "municipal junk
bonds"). A security is considered to be investment-grade if it is rated
investment-grade by Moody's Investors Service, Standard & Poor's, Duff &
Phelps Credit Rating Co., or Fitch Investors Service, L.P., or is unrated
but judged by FMR to be of equivalent quality. The fund may not invest in
securities judged by FMR to be of equivalent quality to those rated lower
than B by Moody's or S&P.
The following information supplements the information in "Securities and
Investment Practices" beginning on page 16.
CASH MANAGEMENT. A fund may invest in money market securities and in
a money market fund available only to funds and accounts managed by FMR or
its affiliates, whose goal is to seek a high level of current income exempt
from federal income tax while maintaining a stable $1.00 share price. A
major change in interest rates or a default on the money market fund's
investments could cause its share price to change.
RESTRICTION: The bond funds do not currently intend to invest in a money
market fund.
The following information replaces similar information found in "How to Buy
Shares" on page 26.
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500
For the money market funds $5,000
TO ADD TO AN ACCOUNT $250
Through regular investment plans* $100
For the money market funds $500
MINIMUM BALANCE $2,000
* FOR MORE INFORMATION ABOUT REGULAR INVESTMENT PLANS, PLEASE REFER TO
INVESTOR SERVICES, PAGE 30.
These minimums may vary for investments through Fidelity Portfolio Advisory
Services. Refer to the program materials for details.
The following information replaces similar information found in "How to
Sell Shares" on page 28.
IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, leave at least
$2,000 worth of shares in the account to keep it open.
The following information replaces similar information found in
"Transaction Details" beginning on page 34.
FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE of
$12.00 from accounts with a value of less than $2,500, subject to an annual
maximum charge of $24.00 per shareholder. It is expected that accounts will
be valued on the second Friday in November of each year. Accounts opened
after September 30 will not be subject to the fee for that year. The fee,
which is payable to the transfer agent, is designed to offset in part the
relatively higher costs of servicing smaller accounts. This fee will not be
deducted from Fidelity brokerage accounts, retirement accounts (except
non-prototype retirement accounts), accounts using regular investment
plans, or if total assets in Fidelity exceed $30,000. Eligibility for the
$30,000 waiver is determined by aggregating Fidelity accounts maintained by
FSC or FBSI which are registered under the same social security number or
which list the same social security number for the custodian of a Uniform
Gifts/Transfers to Minors Act account.
IF YOUR ACCOUNT BALANCE FALLS BELOW $2,000, you will be given 30
days' notice to reestablish the minimum balance. If you do not increase
your balance, Fidelity reserves the right to close your account and send
the proceeds to you. Your shares will be redeemed at the NAV on the day
your account is closed.
SUPPLEMENT TO FIDELITY MICHIGAN MUNICIPAL MONEY MARKET FUND
FIDELITY OHIO MUNICIPAL MONEY MARKET FUND
FUNDS OF FIDELITY MUNICIPAL TRUST II
FIDELITY MICHIGAN MUNICIPAL INCOME FUND
FIDELITY MINNESOTA MUNICIPAL INCOME FUND
FIDELITY OHIO MUNICIPAL INCOME FUND
FUNDS OF FIDELITY MUNICIPAL TRUST
FEBRUARY 20, 1996
STATEMENT OF ADDITIONAL INFORMATION
The following information replaces and supplements similar information
found in "Investment Limitations of the Michigan Municipal Money Market
Fund" beginning on page 2.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(vi) The fund does not currently intend to (a) purchase securities of other
investment companies, except in the open market where no commission except
the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces and supplements similar information
found in "Investment Limitations of Fidelity Ohio Municipal Money Market
Fund" beginning on page 3.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(vi) The fund does not currently intend to (a) purchase securities of other
investment companies, except in the open market where no commission except
the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces and supplements similar information
found in "Investment Limitations of Fidelity Michigan Municipal Income
Fund" beginning on page 4.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(vii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) aMonth, day, 1994nd securities of
other investment companies. These tax requirements are generally applied at
the end of each quarter of the fund's taxable year.
The following information replaces and supplements similar information
found in "Investment Limitations of Fidelity Minnesota Municipal Income
Fund" on page 6.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(vii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces and supplements similar information
found in "Investment Limitations of Fidelity Ohio Municipal Income Fund"
beginning on page 7.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(vii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces similar information found in
"Performance" beginning on page 22.
1996 TAX RATES FOR OHIO
Combined
Federal State Ohio and
Taxable Income* Income Tax Marginal Federal Effective
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Single Return Joint Return Bracket Rate Tax Bracket**
$ 24,001 - 40,000 -- 28.0% 4.162% 31.00%
$ 40,001 - 58,150 $ 40,101 - 80,000 28.0% 4.857% 31.50%
- -- $ 80,001 - 96,900 28.0% 5.550% 32.00%
$ 58,151 - 80,000 -- 31.0% 4.857% 34.35%
$ 80,001 - 100,000 $ 96,901 - 100,000 31.0% 5.550% 34.83%
$ 100,001 - 121,300 $ 100,001 - 147,700 31.0% 6.444% 35.45%
$ 121,301 - 200,000 $ 147,701 - 200,000 36.0% 6.444% 40.12%
$ 200,001 - 2 63 , 75 0 $ 200,001 - 263,750 36.0% 7.004% 40.48%
$ 263,751 + Above $ 263,751 + Above 39.6% 7.004% 43.83%
</TABLE>
* Net amount subject to federal income tax after deductions and exemptions.
Assumes ordinary income only.
** Excludes the impact of the phaseout of personal exemptions, limitations
on itemized deductions, and other credits, exclusions, and adjustments
which may increase a taxpayer's marginal tax rate. An increase in a
shareholder's marginal tax rate would increase that shareholder's
tax-equivalent yield.
Having determined your effective tax bracket, use the following table to
determine the tax-equivalent yield for a given tax-free yield.
If your effective combined federal and state personal tax rate in 1996 is:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
To match these 31.00% 31.50% 32.00% 34.35% 34.83% 35.45% 40.12% 40.48% 43.83%
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
tax-free yields: Your taxable investment would have to earn the following yield:
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3% 4.35% 4.38% 4.41% 4.57% 4.60% 4.65% 5.01% 5.04% 5.34%
4% 5.80% 5.84% 5.88% 6.09% 6.14% 6.20% 6.68% 6.72% 7.12%
5% 7.25% 7.30% 7.35% 7.62% 7.67% 7.75% 8.35% 8.40% 8.90%
6% 8.70% 8.76% 8.82% 9.14% 9.21% 9.30% 10.02% 10.08% 10.68%
7% 10.14% 10.22% 10.29% 10.66% 10.74% 10.84% 11.69% 11.76% 12.46%
</TABLE>
SUPPLEMENT TO THE SPARTAN(registered trademark) PENNSYLVANIA MUNICIPAL
FUNDS
FEBRUARY 20, 1996
PROSPECTUS
The following information replaces the similar information found in the
"Key Facts" section beginning on page 4.
PENN MUNICIPAL INCOME
STRATEGY: Invests normally in investment grade municipal securities whose
interest is free from federal income tax and Pennsylvania personal income
tax.
The following information replaces the third paragraph of the "Investment
Principles and Risks" section beginning on page 11.
SPARTAN PENNSYLVANIA MUNICIPAL INCOME FUND seeks high current income that
is free from federal income tax and Pennsylvania personal income tax by
investing in investment-grade municipal securities under normal conditions.
FMR normally invests so that at least 80% of the fund's income is free from
both federal and Pennsylvania personal income taxes.
The following information replaces the similar information found in the
"Securities and Investments Practices" section beginning on page 13.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. In
general, bond prices rise when interest rates fall, and vice versa. Debt
securities have varying degrees of quality and varying levels of
sensitivity to changes in interest rates. Longer-term bonds are generally
sensitive to interest rate changes than short-term bonds. Investment-grade
debt securities are medium- and high-quality securities. Some, however, may
possess speculative characteristics, and may be more sensitive to economic
changes and to changes in the financial condition of issuers.
RESTRICTIONS: The bond fund normally invests in investment-grade
securities, but reserves the right to invest up to 5% of its assets in
below-investment grade securities (sometimes called "municipal junk
bonds"). A security is considered to be investment-grade if it is rated
investment-grade by Moody's Investors Service, Standard & Poor's, Duff &
Phelps Credit Rating Co., or Fitch Investors Service, L.P., or is unrated
but judged by FMR to be of equivalent quality. The fund may not invest in
securities judged by FMR to be of equivalent quality to those rated lower
than B by Moody's or S&P.
The following information supplements the information found in the
"Securities and Investments Practices" section beginning on page 13.
CASH MANAGEMENT. A fund may invest in money market securities and in
a money market fund available only to funds and accounts managed by FMR or
its affiliates, whose goal is to seek a high level of current income exempt
from federal income tax while maintaining a stable $1.00 share price. A
major change in interest rates or a default on the money market fund's
investments could cause its share price to change.
RESTRICTIONS: Spartan Pennsylvania Municipal Income does not
currently intend to invest in a money market fund.
The following information replaces the similar information found in the
"Transaction Details" section beginning on page 28.
FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE of
$12.00 from accounts with a value of less than $2,500, subject to an annual
maximum charge of $24.00 per shareholder. It is expected that accounts will
be valued on the second Friday in November of each year. Accounts opened
after September 30 will not be subject to the fee for that year. The fee,
which is payable to the transfer agent, is designed to offset in part the
relatively higher costs of servicing smaller accounts. This fee will not be
deducted from Fidelity brokerage accounts, retirement accounts (except
non-prototype retirement accounts), accounts using regular investment
plans, or if total assets in Fidelity exceed $30,000. Eligibility for the
$30,000 waiver is determined by aggregating Fidelity accounts maintained by
FSC or FBSI which are registered under the same social security number or
which list the same social security number for the custodian of a Uniform
Gifts/Transfers to Minors Act account.
SPARTAN(registered trademark) PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
A FUND OF FIDELITY MUNICIPAL TRUST II
SPARTAN(registered trademark) PENNSYLVANIA MUNICIPAL INCOME FUND
A FUND OF FIDELITY MUNICIPAL TRUST
SUPPLEMENT TO THE FEBRUARY 20, 1996 STATEMENT OF ADDITIONAL INFORMATION
The following information replaces the similar information for each fund
found in the "Investment Policies and Limitations" section beginning on
page 2.
(MONEY MARKET FUND)
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) With respect to 75% of its total assets, the fund does not currently
intend to purchase the securities of any issuer (other than securities
issued or guaranteed by the U.S. Government or any of its agencies or
instrumentalities, or securities of other investment companies) if, as a
result, the fund would hold more than 10% of the outstanding voting
securities of that issuer.
(vii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
(BOND FUND)
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) With respect to 75% of its total assets, the fund does not currently
intend to purchase the securities of any issuer (other than securities
issued or guaranteed by the U.S. government or any of its agencies or
instrumentalities, or securities of other investment companies) if, as a
result, the fund would hold more than 10% of the outstanding voting
securities of that issuer.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
The following information follows the last non-fundamental limitation for
each fund in the "Investment Policies and Limitations" section beginning on
page 2.
Subchapter M generally requires the fund to invest no more than 25% of its
total assets in securities of any one issuer and to invest at least 50% of
its total assets so that no more than 5% of the fund's total assets are
invested in securities of any one issuer. However, Subchapter M allows
unlimited investments in cash, cash items, government securities (as
defined in Subchapter M) and securities of other investment companies.
These tax requirements are generally applied at the end of each quarter of
the fund's taxable year.
