UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02628
Fidelity Municipal Trust
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | December 31 |
Date of reporting period: | December 31, 2006 |
Item 1. Reports to Stockholders
Fidelity®
Michigan Municipal Income
Fund
and
Fidelity
Michigan Municipal Money
Market Fund
Annual Report
December 31, 2006
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity Michigan Municipal Income Fund | ||
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Fidelity Michigan Municipal Money Market Fund | ||
Investment Changes/ | A summary of major shifts in the fund's investments over the past six months and one year, and performance information. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the Financial Statements | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
We have seen consistently strong performance from stocks and bonds of late, and some relief in energy prices, but the housing market slowdown bears watching for how it might affect the consumer. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Fidelity Michigan Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2006 | Past 1 | Past 5 | Past 10 |
Fidelity® MI Municipal Income Fund | 4.41% | 5.30% | 5.40% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Michigan Municipal Income Fund on December 31, 1996. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Fidelity Michigan Municipal Income Fund
Management's Discussion of Fund Performance
Comments from Jamie Pagliocco, Portfolio Manager of Fidelity® Michigan Municipal Income Fund
Growing investor demand and a strong second-half rally helped municipal bonds post solid returns and take their place as one of the best performing investment-grade debt classes for the year ending December 31, 2006. Throughout roughly the first six months of the period, muni bond prices declined as the Federal Reserve Board raised short-term interest rates to return them to a more "neutral level" and fend off inflation. Beginning in mid-summer 2006, however, munis rebounded amid hopes that the Fed would pause its rate hike campaign. Those hopes were eventually actualized when the central bank left rates unchanged at its August, September, October and December Open Market Committee meetings. Demand - which was amplified by non-traditional investors such as hedge funds - increased substantially, as investors sought out munis for their attractive after-tax yields. Investors also were drawn to the fact that unlike long-term Treasury bonds, which generally yielded less than short-term Treasuries throughout much of the period, long-term rates for munis were higher than short rates, giving investors the opportunity to lock in attractive long-term yields. Against this backdrop, the Lehman Brothers® Municipal Bond Index - a performance measure of approximately 34,000 investment-grade, fixed-rate, tax-exempt bonds - returned 4.84%. In comparison, the overall taxable bond market, as measured by the Lehman Brothers Aggregate Bond Index, returned 4.33%.
During the past year, Michigan Municipal Income Fund gained 4.41% and the Lehman Brothers Michigan Enhanced Municipal Bond Index gained 4.67%. The Michigan muni market performed roughly in line with the national average, bolstered by strong demand for tax-free investments. Benefiting the fund's performance relative to the index was my overweighting in bonds that were prerefunded during the period. Prerefunding resulted in relatively strong returns as the bonds' maturities were shortened and their credit quality improved. Our ability to access Fidelity's research and trading capabilities also helped performance because it allowed us to invest in securities that were priced attractively and which we held onto as the market recognized their value. Detracting from returns was our underweighting in lower-quality investment-grade securities - particularly in the uninsured health care segment - which generally outpaced higher-quality securities. The fund also was hurt by its underexposure to longer-term bonds, which were some of the market's best performers during the period.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2006 to December 31, 2006).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annual Report
Shareholder Expense Example - continued
Beginning | Ending | Expenses Paid | |
Fidelity Michigan Municipal Income Fund | |||
Actual | $ 1,000.00 | $ 1,044.20 | $ 2.47 |
HypotheticalA | $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Fidelity Michigan Municipal Money Market Fund | |||
Actual | $ 1,000.00 | $ 1,015.70 | $ 2.79 |
HypotheticalA | $ 1,000.00 | $ 1,022.43 | $ 2.80 |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annualized | |
Fidelity Michigan Municipal Income Fund | .48% |
Fidelity Michigan Municipal Money Market Fund | .55% |
Annual Report
Fidelity Michigan Municipal Income Fund
Investment Changes
Top Five Sectors as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
General Obligations | 39.9 | 41.2 |
Escrowed/Pre-Refunded | 23.8 | 25.5 |
Water & Sewer | 15.5 | 13.9 |
Special Tax | 7.3 | 5.0 |
Health Care | 6.1 | 6.3 |
Average Years to Maturity as of December 31, 2006 | ||
6 months ago | ||
Years | 10.4 | 10.2 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2006 | ||
6 months ago | ||
Years | 5.9 | 6.0 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | AAA 74.8% | ![]() | AAA 72.3% | ||||
![]() | AA,A 22.7% | ![]() | AA,A 26.9% | ||||
![]() | BBB 0.5% | ![]() | BBB 0.5% | ||||
![]() | BB and Below 0.1% | ![]() | BB and Below 0.1% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
Annual Report
Fidelity Michigan Municipal Income Fund
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Bonds - 98.1% | ||||
Principal | Value (Note 1) | |||
Guam - 0.3% | ||||
Guam Ed. Fing. Foundation (Guam Pub. School Facilities Proj.) 5% 10/1/16 | $ 1,045,000 | $ 1,118,976 | ||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35 | 615,000 | 659,790 | ||
1,778,766 | ||||
Michigan - 96.4% | ||||
Anchor Bay School District 2000 School Bldg. & Site (School Bldg. & Site Prog.) 5% 5/1/29 | 2,155,000 | 2,252,363 | ||
Ann Arbor Bldg. Auth. Series 2005 A: | ||||
5% 3/1/17 (MBIA Insured) | 1,405,000 | 1,513,059 | ||
5% 3/1/18 (MBIA Insured) | 1,440,000 | 1,548,662 | ||
Ann Arbor Econ. Dev. Corp. Ltd. Oblig. Rev. (Glacier Hills, Inc. Proj.) 8.375% 1/15/19 (Escrowed to Maturity) (c) | 2,916,000 | 3,640,801 | ||
Bay City Gen. Oblig. 0% 6/1/15 (AMBAC Insured) | 1,725,000 | 1,227,269 | ||
Birmingham County School District Series II, 5.25% 11/1/19 (Pre-Refunded to 11/1/10 @ 100) (c) | 1,200,000 | 1,267,908 | ||
Brighton Area School District Livingston County Series II, 0% 5/1/15 (AMBAC Insured) | 10,000,000 | 7,144,500 | ||
Byron Ctr. Pub. Schools 5.5% 5/1/16 | 1,055,000 | 1,137,670 | ||
Caledonia Cmnty. Schools Counties of Kent, Allegan and Barry: | ||||
5.25% 5/1/17 | 1,370,000 | 1,480,682 | ||
5.25% 5/1/18 | 1,100,000 | 1,187,582 | ||
Carman-Ainsworth Cmnty. School District: | ||||
5% 5/1/14 (FSA Insured) | 1,765,000 | 1,906,253 | ||
5% 5/1/16 (FSA Insured) | 1,000,000 | 1,079,720 | ||
5% 5/1/17 (FSA Insured) | 2,065,000 | 2,222,002 | ||
5.5% 5/1/14 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,755,000 | 1,908,966 | ||
5.5% 5/1/15 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,850,000 | 2,012,301 | ||
Carrier Creek Drainage District #326: | ||||
5% 6/1/16 (AMBAC Insured) | 1,620,000 | 1,750,264 | ||
5% 6/1/25 (AMBAC Insured) | 1,775,000 | 1,886,293 | ||
Charles Stewart Mott Cmnty. College 5% 5/1/17 (MBIA Insured) | 1,675,000 | 1,802,350 | ||
Chippewa Valley Schools: | ||||
Series I, 5.375% 5/1/17 (Pre-Refunded to 5/1/11 @ 100) (c) | 1,000,000 | 1,067,970 | ||
5.5% 5/1/17 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,125,000 | 1,223,696 | ||
Clarkston Cmnty. Schools: | ||||
5.25% 5/1/29 (Pre-Refunded to 5/1/13 @ 100) (c) | 5,000,000 | 5,433,250 | ||
5.375% 5/1/21 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,950,000 | 2,132,598 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Michigan - continued | ||||
Clarkston Cmnty. Schools: - continued | ||||
5.375% 5/1/22 (Pre-Refunded to 5/1/13 @ 100) (c) | $ 1,150,000 | $ 1,257,686 | ||
Comstock Park Pub. Schools 5% 5/1/16 (FSA Insured) | 1,000,000 | 1,078,980 | ||
Constantine Pub. Schools: | ||||
5% 5/1/25 | 1,130,000 | 1,186,941 | ||
5% 5/1/25 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,120,000 | 1,197,426 | ||
5.5% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,220,000 | 1,336,071 | ||
5.5% 5/1/19 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,245,000 | 1,363,449 | ||
5.5% 5/1/20 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,245,000 | 1,363,449 | ||
5.5% 5/1/21 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,250,000 | 1,368,925 | ||
Crawford AuSable School District (School Bldg. & Site Proj.) Series 2001, 5.625% 5/1/18 (Pre-Refunded to 5/1/11 @ 100) (c) | 1,100,000 | 1,183,391 | ||
Detroit City School District: | ||||
(School Bldg. & Site Impt. Proj.) Series B, 5% 5/1/33 (FGIC Insured) | 1,800,000 | 1,883,232 | ||
Series 2005 A, 5.25% 5/1/30 (FSA Insured) | 5,000,000 | 5,866,250 | ||
Series A: | ||||
5.5% 5/1/16 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,500,000 | 1,627,815 | ||
5.5% 5/1/18 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,000,000 | 1,085,210 | ||
5.5% 5/1/18 (Pre-Refunded to 5/1/13 @ 100) (c) | 2,000,000 | 2,201,260 | ||
5.5% 5/1/20 (Pre-Refunded to 5/1/12 @ 100) (c) | 3,050,000 | 3,309,891 | ||
Series B, 5.25% 5/1/15 (FGIC Insured) | 3,085,000 | 3,337,847 | ||
Detroit Convention Facilities Rev. (Cobo Hall Expansion Proj.): | ||||
5% 9/30/11 (MBIA Insured) | 3,000,000 | 3,171,930 | ||
5% 9/30/12 (MBIA Insured) | 4,765,000 | 5,087,448 | ||
Detroit Gen. Oblig.: | ||||
(Distributable State Aid Proj.) 5.25% 5/1/09 (AMBAC Insured) | 4,525,000 | 4,680,660 | ||
Series 2003 A, 5% 4/1/11 (XL Cap. Assurance, Inc. Insured) | 1,430,000 | 1,492,563 | ||
Series 2005 B, 5% 4/1/13 (FSA Insured) | 1,830,000 | 1,949,847 | ||
Series 2005 C, 5% 4/1/13 (FSA Insured) | 1,985,000 | 2,114,998 | ||
Series B1: | ||||
5% 4/1/13 (AMBAC Insured) | 2,000,000 | 2,125,280 | ||
5% 4/1/15 (AMBAC Insured) | 3,800,000 | 4,066,228 | ||
5.5% 4/1/17 (Pre-Refunded to 4/1/11 @ 100) (c) | 2,615,000 | 2,802,286 | ||
5.5% 4/1/19 (Pre-Refunded to 4/1/11 @ 100) (c) | 1,500,000 | 1,607,430 | ||
5.5% 4/1/20 (Pre-Refunded to 4/1/11 @ 100) (c) | 1,250,000 | 1,339,525 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Michigan - continued | ||||
Detroit Swr. Disp. Rev.: | ||||
Series 2001 D1, 5.5%, tender 7/1/08 (MBIA Insured) (a) | $ 10,000,000 | $ 10,241,300 | ||
Series A: | ||||
SR Lien, 5% 7/1/32 (FSA Insured) | 1,900,000 | 1,987,780 | ||
0% 7/1/14 (FGIC Insured) | 6,730,000 | 4,991,103 | ||
5.125% 7/1/31 (Pre-Refunded to 7/1/11 @ 100) (c) | 8,020,000 | 8,502,563 | ||
Series B: | ||||
5% 7/1/15 (FGIC Insured) | 1,085,000 | 1,173,015 | ||
5% 7/1/36 (FGIC Insured) | 5,000,000 | 5,294,400 | ||
4.191% 7/1/32 (FSA Insured) (a) | 5,000,000 | 5,007,550 | ||
Detroit Wtr. Supply Sys. Rev.: | ||||
Series A: | ||||
5.25% 7/1/21 (MBIA Insured) | 6,035,000 | 6,620,938 | ||
5.5% 7/1/15 (Pre-Refunded to 1/1/10 @ 101) (c) | 3,675,000 | 3,898,991 | ||
5.75% 7/1/11 (MBIA Insured) | 3,050,000 | 3,310,501 | ||
Series B, 5.25% 7/1/17 (Pre-Refunded to 7/1/13 @ 100) (c) | 2,760,000 | 3,004,867 | ||
Series C, 5% 7/1/33 (FSA Insured) | 13,500,000 | 14,327,410 | ||
5.25% 7/1/16 (MBIA Insured) | 1,000,000 | 1,109,590 | ||
5.25% 7/1/17 (MBIA Insured) | 2,000,000 | 2,202,480 | ||
6.5% 7/1/15 (FGIC Insured) | 6,025,000 | 7,162,520 | ||
Dexter Cmnty. Schools 5% 5/1/18 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,955,000 | 2,074,411 | ||
Durand Area Schools Gen. Oblig.: | ||||
5% 5/1/27 (FSA Insured) | 1,225,000 | 1,309,660 | ||
5% 5/1/28 (FSA Insured) | 1,250,000 | 1,334,388 | ||
5% 5/1/29 (FSA Insured) | 1,275,000 | 1,355,988 | ||
East Grand Rapids Pub. School District: | ||||
5% 5/1/16 (FSA Insured) | 1,425,000 | 1,525,847 | ||
5% 5/1/17 (FSA Insured) | 1,985,000 | 2,120,258 | ||
5.5% 5/1/17 | 1,690,000 | 1,808,368 | ||
East Lansing School District Gen. Oblig. Series B, 5% 5/1/30 (MBIA Insured) | 3,530,000 | 3,757,085 | ||
Eastern Michigan Univ. Revs. Series 2000 B, 5.625% 6/1/30 (Pre-Refunded to 6/1/10 @ 100) (c) | 1,250,000 | 1,328,400 | ||
Farmington Pub. School District 5% 5/1/18 (FSA Insured) | 4,500,000 | 4,825,620 | ||
Fenton Area Pub. Schools 5% 5/1/14 (FGIC Insured) | 1,775,000 | 1,911,160 | ||
Ferris State Univ. Rev.: | ||||
5% 10/1/16 (MBIA Insured) | 1,255,000 | 1,344,682 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Michigan - continued | ||||
Ferris State Univ. Rev.: - continued | ||||
5% 10/1/17 (MBIA Insured) | $ 1,320,000 | $ 1,409,773 | ||
Flushing Cmnty. Schools: | ||||
5.25% 5/1/17 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,000,000 | 1,086,650 | ||
5.25% 5/1/18 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,030,000 | 1,119,250 | ||
Fraser Pub. School District: | ||||
5% 5/1/16 (FSA Insured) | 1,055,000 | 1,135,992 | ||
5% 5/1/17 (FSA Insured) | 1,615,000 | 1,737,788 | ||
Garden City School District: | ||||
5% 5/1/14 (FSA Insured) | 1,210,000 | 1,302,819 | ||
5% 5/1/17 (FSA Insured) | 1,390,000 | 1,490,580 | ||
5% 5/1/19 (FSA Insured) | 1,205,000 | 1,300,882 | ||
Genesee County Gen. Oblig. Series A: | ||||
5% 5/1/17 (MBIA Insured) | 1,355,000 | 1,448,089 | ||
5% 5/1/18 (MBIA Insured) | 1,505,000 | 1,605,098 | ||
Gibraltar School District: | ||||
5% 5/1/16 (FSA Insured) | 1,230,000 | 1,319,003 | ||
5% 5/1/17 (FSA Insured) | 1,230,000 | 1,314,501 | ||
5.5% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,200,000 | 1,314,168 | ||
5.5% 5/1/21 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,200,000 | 1,314,168 | ||
Grand Rapids Downtown Dev. Auth. Tax Increment Rev. 0% 6/1/11 (MBIA Insured) | 3,160,000 | 2,665,270 | ||
Grand Rapids San. Swr. Sys. Rev. 5% 1/1/34 (MBIA Insured) | 3,000,000 | 3,187,530 | ||
Grand Rapids Wtr. Supply Sys. 5% 1/1/35 (FGIC Insured) | 5,000,000 | 5,327,800 | ||
Grosse Ile Township School District Unltd. Tax Gen. Oblig.: | ||||
5% 5/1/29 (MBIA Insured) | 1,950,000 | 2,081,645 | ||
5% 5/1/32 (MBIA Insured) | 1,950,000 | 2,076,984 | ||
Hamilton Cmnty. Schools District 5% 5/1/24 (FGIC Insured) | 1,500,000 | 1,522,185 | ||
Haslett Pub. Schools 5% 5/1/16 (MBIA Insured) | 1,100,000 | 1,179,596 | ||
Howell Pub. Schools 0% 5/1/10 (AMBAC Insured) | 1,130,000 | 993,812 | ||
Hudsonville Pub. Schools 5% 5/1/16 (FSA Insured) | 1,000,000 | 1,072,360 | ||
Huron School District 5.625% 5/1/16 (Pre-Refunded to 5/1/11 @ 100) (c) | 1,050,000 | 1,131,785 | ||
Huron Valley School District: | ||||
0% 5/1/10 (FGIC Insured) | 2,500,000 | 2,198,700 | ||
0% 5/1/11 (FGIC Insured) | 5,830,000 | 4,933,113 | ||
0% 5/1/12 (FGIC Insured) | 1,420,000 | 1,155,411 | ||
5.25% 5/1/16 | 2,450,000 | 2,657,981 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Michigan - continued | ||||
Kalamazoo Pub. Schools: | ||||
5% 5/1/17 (FSA Insured) | $ 3,165,000 | $ 3,445,134 | ||
5.25% 5/1/16 (FSA Insured) | 1,500,000 | 1,668,105 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | ||||
(Butterworth Hosp. Proj.) Series A, 7.25% 1/15/13 | 3,685,000 | 4,037,986 | ||
(Spectrum Health Proj.) Series A: | ||||
5.375% 1/15/11 | 2,420,000 | 2,496,036 | ||
5.375% 1/15/12 | 2,505,000 | 2,586,362 | ||
L'Anse Creuse Pub. Schools: | ||||
5.375% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,000,000 | 1,088,630 | ||
5.375% 5/1/20 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,000,000 | 1,088,630 | ||
Lake Orion Cmnty. School District 5.25% 5/1/27 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,150,000 | 1,234,226 | ||
Lansing Bldg. Auth. Rev. 0% 6/1/12 (AMBAC Insured) | 3,000,000 | 2,433,150 | ||
Lawton Cmnty. Schools 5.5% 5/1/19 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,050,000 | 1,132,278 | ||
Livonia Muni. Bldg. Auth. 5% 5/1/17 (FGIC Insured) | 1,100,000 | 1,136,641 | ||
Livonia Pub. School District Series II, 0% 5/1/21 (FGIC Insured) (Pre-Refunded to 5/1/07 @ 39.31) (c) | 8,480,000 | 3,296,091 | ||
Michigan Bldg. Auth. Rev.: | ||||
(Facilities Prog.): | ||||
Series II, 5% 10/15/33 (AMBAC Insured) | 3,000,000 | 3,194,940 | ||
Series III, 5% 10/15/10 (Escrowed to Maturity) (c) | 1,000,000 | 1,047,220 | ||
Series 1, 5.25% 10/15/16 (FSA Insured) | 5,000,000 | 5,429,500 | ||
Series 1A, 5% 10/15/36 (FGIC Insured) | 5,000,000 | 5,342,650 | ||
Michigan Ctfs. of Prtn. 5.75% 6/1/17 (Pre-Refunded to 6/1/10 @ 100) (c) | 3,000,000 | 3,200,070 | ||
Michigan Gen. Oblig. (Envir. Protection Prog.) 6.25% 11/1/12 | 2,665,000 | 2,914,711 | ||
Michigan Higher Ed. Student Ln. Auth. Rev. Series XII W, 4.875% 9/1/10 (AMBAC Insured) (b) | 3,000,000 | 3,066,840 | ||
Michigan Hosp. Fin. Auth. Hosp. Rev.: | ||||
(Ascension Health Cr. Group Proj.) Series A: | ||||
5%, tender 4/1/11 | 2,035,000 | 2,132,965 | ||
6% 11/15/19 (Pre-Refunded to 11/15/09 @ 101) (c) | 10,645,000 | 11,372,799 | ||
(Crittenton Hosp. Proj.) Series A: | ||||
5.5% 3/1/13 | 455,000 | 487,792 | ||
5.5% 3/1/14 | 1,300,000 | 1,395,576 | ||
5.5% 3/1/15 | 1,985,000 | 2,129,012 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Michigan - continued | ||||
Michigan Hosp. Fin. Auth. Hosp. Rev.: - continued | ||||
(Genesys Reg'l. Med. Hosp. Proj.) Series A, 5.3% 10/1/11 (Escrowed to Maturity) (c) | $ 1,000,000 | $ 1,038,820 | ||
(Henry Ford Health Sys. Proj.): | ||||
Series 2003 A, 5.5% 3/1/14 (Pre-Refunded to 3/1/13 @ 100) (c) | 2,000,000 | 2,190,760 | ||
Series A: | ||||
5% 11/15/09 | 650,000 | 670,059 | ||
5% 11/15/12 | 1,485,000 | 1,569,823 | ||
5% 11/15/14 | 1,000,000 | 1,070,340 | ||
6% 11/15/19 (Pre-Refunded to 11/15/09 @ 101) (c) | 1,945,000 | 2,080,722 | ||
6% 9/1/12 (Escrowed to Maturity) (c) | 1,500,000 | 1,664,100 | ||
(Mercy Health Svcs. Proj.): | ||||
Series 1996 R, 5.375% 8/15/26 (Escrowed to Maturity) (c) | 2,500,000 | 2,529,100 | ||
Series Q: | ||||
5.25% 8/15/10 (Escrowed to Maturity) (c) | 2,195,000 | 2,221,011 | ||
5.375% 8/15/26 (Escrowed to Maturity) (c) | 2,450,000 | 2,478,518 | ||
6% 8/15/08 (Escrowed to Maturity) (c) | 1,130,000 | 1,144,475 | ||
6% 8/15/10 (Escrowed to Maturity) (c) | 1,265,000 | 1,281,053 | ||
Series R, 5.375% 8/15/16 (Escrowed to Maturity) (c) | 2,500,000 | 2,529,700 | ||
(MidMichigan Health Obligated Group Prog.) Series 2002 A, 5.5% 4/15/18 (AMBAC Insured) | 2,000,000 | 2,159,180 | ||
(Oakwood Obligated Group Proj.) 5.5% 11/1/11 | 3,000,000 | 3,200,940 | ||
(Saint John Hosp. & Med. Ctr. Proj.) Series A, 6% 5/15/09 (Escrowed to Maturity) (c) | 1,710,000 | 1,792,610 | ||
(Sisters of Mercy Health Corp. Proj.) Series P, 5.375% 8/15/14 (Escrowed to Maturity) (c) | 570,000 | 602,980 | ||
(Sparrow Hosp. Obligated Group Proj.): | ||||
5.5% 11/15/21 | 1,435,000 | 1,535,134 | ||
5.625% 11/15/31 | 4,500,000 | 4,781,250 | ||
(Trinity Health Sys. Proj.) Series 2000 A, 6% 12/1/27 | 1,535,000 | 1,673,856 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Detroit School District Proj.) Series B, 5% 6/1/12 (FSA Insured) | 7,300,000 | 7,731,722 | ||
(Local Govt. Ln. Prog.): | ||||
Series A, 4.75% 12/1/09 (FGIC Insured) | 6,000,000 | 6,001,440 | ||
Series CA, 0% 6/15/13 (FSA Insured) | 3,850,000 | 2,988,062 | ||
Series G, 0% 5/1/19 (AMBAC Insured) | 1,865,000 | 1,105,292 | ||
7.5% 11/1/09 (AMBAC Insured) | 15,000 | 15,020 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Michigan - continued | ||||
Michigan Muni. Bond Auth. Rev.: - continued | ||||
5% 10/1/23 | $ 5,000,000 | $ 5,240,100 | ||
5.375% 10/1/19 | 2,005,000 | 2,180,417 | ||
Michigan Strategic Fund Exempt Facilities Rev. (Waste Mgmt., Inc. Proj.) 3.75%, tender 8/1/07 (a)(b) | 3,000,000 | 2,996,220 | ||
Michigan Strategic Fund Ltd. Oblig. Rev. (Detroit Edison Co. Proj.): | ||||
Series A, 5.55% 9/1/29 (MBIA Insured) (b) | 1,000,000 | 1,055,880 | ||
Series BB: | ||||
7% 7/15/08 (MBIA Insured) | 2,200,000 | 2,308,702 | ||
7% 5/1/21 (AMBAC Insured) | 8,520,000 | 11,154,384 | ||
Michigan Trunk Line: | ||||
Series A: | ||||
0% 10/1/11 (AMBAC Insured) | 3,630,000 | 3,022,520 | ||
5.5% 11/1/16 | 3,000,000 | 3,401,580 | ||
5.25% 11/1/15 (FGIC Insured) | 5,000,000 | 5,550,900 | ||
5.25% 10/1/16 (FSA Insured) | 3,000,000 | 3,230,340 | ||
Mona Shores School District 6.75% 5/1/10 (FGIC Insured) | 2,220,000 | 2,426,216 | ||
Montague Pub. School District: | ||||
5.5% 5/1/16 | 1,005,000 | 1,083,752 | ||
5.5% 5/1/17 | 1,005,000 | 1,082,827 | ||
5.5% 5/1/19 | 1,090,000 | 1,171,924 | ||
Morenci Area Schools 5.25% 5/1/21 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,410,000 | 1,516,793 | ||
Mount Clemens Cmnty. School District: | ||||
0% 5/1/17 | 5,000,000 | 2,496,650 | ||
5.5% 5/1/16 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,000,000 | 1,080,650 | ||
New Haven Cmnty. Schools 5.25% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,175,000 | 1,271,503 | ||
New Lothrop Area Pub. Schools Gen. Oblig. 5% 5/1/35 (FSA Insured) | 1,000,000 | 1,060,700 | ||
North Kent Swr. Auth.: | ||||
5% 11/1/19 (MBIA Insured) | 420,000 | 456,670 | ||
5% 11/1/20 (MBIA Insured) | 490,000 | 531,532 | ||
5% 11/1/22 (MBIA Insured) | 1,645,000 | 1,776,090 | ||
5% 11/1/23 (MBIA Insured) | 1,290,000 | 1,390,620 | ||
Northville Pub. Schools: | ||||
Series II: | ||||
5% 5/1/15 (FSA Insured) | 1,525,000 | 1,657,889 | ||
5% 5/1/16 (FSA Insured) | 1,475,000 | 1,581,731 | ||
5% 5/1/17 (FSA Insured) | 3,675,000 | 3,940,041 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Michigan - continued | ||||
Northwestern Michigan Cmnty. College Impt.: | ||||
5.5% 4/1/14 (FGIC Insured) | $ 285,000 | $ 298,315 | ||
5.5% 4/1/15 (FGIC Insured) | 170,000 | 177,852 | ||
Okemos Pub. School District: | ||||
0% 5/1/12 (MBIA Insured) | 2,500,000 | 2,034,175 | ||
0% 5/1/13 (MBIA Insured) | 1,700,000 | 1,325,762 | ||
Ovid-Elsie Area Schools Counties of Clinton, Shawassee, Saginaw and Gratiot 5% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,515,000 | 1,619,732 | ||
Petoskey Pub. School District: | ||||
5% 5/1/14 (MBIA Insured) | 1,430,000 | 1,534,962 | ||
5% 5/1/16 (MBIA Insured) | 1,945,000 | 2,100,055 | ||
Plainwell Cmnty. School District: | ||||
5% 5/1/15 (FSA Insured) | 1,030,000 | 1,115,923 | ||
5% 5/1/16 (FSA Insured) | 1,025,000 | 1,110,506 | ||
5.5% 5/1/14 | 1,000,000 | 1,095,690 | ||
5.5% 5/1/16 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,000,000 | 1,092,400 | ||
Port Huron Area School District County of Saint Clair: | ||||
0% 5/1/08 (Liquidity Facility Michigan School Bond Ln. Fund) | 1,975,000 | 1,881,346 | ||
5.25% 5/1/16 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,175,000 | 1,271,503 | ||
5.25% 5/1/17 (Pre-Refunded to 11/1/12 @ 100) (c) | 2,125,000 | 2,299,526 | ||
5.25% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 2,175,000 | 2,353,633 | ||
Riverview Cmnty. School District: | ||||
5% 5/1/14 | 905,000 | 975,626 | ||
5% 5/1/15 | 955,000 | 1,028,888 | ||
5% 5/1/17 | 1,000,000 | 1,069,450 | ||
5% 5/1/18 | 1,000,000 | 1,067,480 | ||
Rochester Cmnty. School District: | ||||
Series II, 5.5% 5/1/16 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,125,000 | 1,215,731 | ||
5% 5/1/19 (MBIA Insured) | 1,000,000 | 1,104,710 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.) Series M, 5.25% 11/15/31 (MBIA Insured) | 2,000,000 | 2,098,580 | ||
Saint Clair County Gen. Oblig.: | ||||
5% 4/1/17 (AMBAC Insured) | 1,380,000 | 1,473,095 | ||
5% 4/1/19 (AMBAC Insured) | 1,475,000 | 1,573,545 | ||
Saint Joseph School District 5.5% 5/1/18 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,065,000 | 1,150,892 | ||
South Haven Pub. Schools: | ||||
5% 5/1/21 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,450,000 | 1,555,357 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Michigan - continued | ||||
South Haven Pub. Schools: - continued | ||||
5% 5/1/22 (Pre-Refunded to 5/1/13 @ 100) (c) | $ 1,350,000 | $ 1,448,091 | ||
South Lyon Cmnty. Schools (School Bldg. and Site Prog.) 5.25% 5/1/15 (FGIC Insured) | 1,000,000 | 1,082,130 | ||
South Redford School District 5% 5/1/16 (MBIA Insured) | 1,125,000 | 1,210,534 | ||
Southfield Pub. Schools: | ||||
Series A: | ||||
5.25% 5/1/17 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,025,000 | 1,107,810 | ||
5.25% 5/1/18 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,025,000 | 1,106,611 | ||
5.25% 5/1/19 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,025,000 | 1,106,016 | ||
5.25% 5/1/20 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,025,000 | 1,106,016 | ||
Series B: | ||||
5.125% 5/1/16 (FSA Insured) | 2,780,000 | 3,007,904 | ||
5.25% 5/1/25 (FSA Insured) | 6,500,000 | 7,036,835 | ||
Taylor City Bldg. Auth. County of Wayne Bldg. Auth. Pub. Facilities 5% 10/1/21 (MBIA Insured) | 1,735,000 | 1,837,591 | ||
Troy School District: | ||||
5% 5/1/15 | 2,135,000 | 2,300,185 | ||
5% 5/1/15 (MBIA Insured) | 1,000,000 | 1,087,140 | ||
5% 5/1/16 (MBIA Insured) | 1,000,000 | 1,092,610 | ||
Utica Cmnty. Schools: | ||||
5% 5/1/17 | 3,000,000 | 3,203,340 | ||
5.25% 5/1/15 | 725,000 | 789,525 | ||
5.375% 5/1/16 | 2,250,000 | 2,469,983 | ||
5.5% 5/1/17 | 1,000,000 | 1,103,590 | ||
Waverly Cmnty. School District: | ||||
5% 5/1/17 (FSA Insured) | 3,090,000 | 3,338,621 | ||
5.75% 5/1/14 (Pre-Refunded to 5/1/10 @ 100) (c) | 1,000,000 | 1,065,140 | ||
5.75% 5/1/16 (Pre-Refunded to 5/1/10 @ 100) (c) | 1,000,000 | 1,065,140 | ||
Wayne Charter County Gen. Oblig. Series 2001 A, 5.5% 12/1/17 (MBIA Insured) | 1,000,000 | 1,091,260 | ||
West Ottawa Pub. School District 5.25% 5/1/10 (FGIC Insured) | 850,000 | 854,446 | ||
Whitehall District Schools 5.5% 5/1/15 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,000,000 | 1,078,360 | ||
Williamston Cmnty. Schools Gen. Oblig. 5% 5/1/18 (FGIC Insured) | 1,000,000 | 1,073,820 | ||
Willow Run Cmnty. Schools County of Washtenaw: | ||||
5% 5/1/17 (FSA Insured) | 1,875,000 | 2,010,675 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Michigan - continued | ||||
Willow Run Cmnty. Schools County of Washtenaw: - continued | ||||
5.5% 5/1/16 (Pre-Refunded to 5/1/11 @ 100) (c) | $ 1,630,000 | $ 1,748,876 | ||
Woodhaven-Brownstown School District County of Wayne: | ||||
5.375% 5/1/16 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,710,000 | 1,849,775 | ||
5.375% 5/1/18 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,875,000 | 2,028,263 | ||
Wyandotte City School District 5.375% 5/1/20 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,050,000 | 1,135,827 | ||
Wyandotte Elec. Rev.: | ||||
5.375% 10/1/14 (MBIA Insured) | 3,485,000 | 3,619,277 | ||
5.375% 10/1/15 (MBIA Insured) | 1,670,000 | 1,734,061 | ||
Wyoming Sewage Disp. Sys. Rev. 5% 6/1/30 (MBIA Insured) | 4,000,000 | 4,259,560 | ||
Zeeland Pub. Schools: | ||||
5% 5/1/16 (FGIC Insured) | 2,035,000 | 2,206,266 | ||
5% 5/1/17 (FGIC Insured) | 1,500,000 | 1,620,690 | ||
5.25% 5/1/16 (MBIA Insured) | 1,050,000 | 1,145,792 | ||
551,252,421 | ||||
Puerto Rico - 1.4% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Series 1996 Y, 5% 7/1/36 (MBIA Insured) | 2,500,000 | 2,675,425 | ||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series L: | ||||
5.25% 7/1/38 (AMBAC Insured) | 1,000,000 | 1,190,360 | ||
5.25% 7/1/41 (CIFG North America Insured) | 2,500,000 | 2,960,525 | ||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series QQ, 5.5% 7/1/18 (XL Cap. Assurance, Inc. Insured) | 1,000,000 | 1,147,050 | ||
7,973,360 |
TOTAL INVESTMENT PORTFOLIO - 98.1% (Cost $544,638,955) | 561,004,547 | ||
NET OTHER ASSETS - 1.9% | 10,864,535 | ||
NET ASSETS - 100% | $ 571,869,082 |
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) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 39.9% |
Escrowed/Pre-Refunded | 23.8% |
Water & Sewer | 15.5% |
Special Tax | 7.3% |
Health Care | 6.1% |
Others* (individually less than 5%) | 7.4% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
December 31, 2006 | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $544,638,955) | $ 561,004,547 | |
Cash | 5,856,656 | |
Receivable for fund shares sold | 70,598 | |
Interest receivable | 6,148,952 | |
Prepaid expenses | 2,744 | |
Other receivables | 39,759 | |
Total assets | 573,123,256 | |
Liabilities | ||
Payable for fund shares redeemed | $ 264,418 | |
Distributions payable | 670,176 | |
Accrued management fee | 175,651 | |
Transfer agent fee payable | 74,472 | |
Other affiliated payables | 24,209 | |
Other payables and accrued expenses | 45,248 | |
Total liabilities | 1,254,174 | |
Net Assets | $ 571,869,082 | |
Net Assets consist of: | ||
Paid in capital | $ 555,147,850 | |
Undistributed net investment income | 194,601 | |
Accumulated undistributed net realized gain (loss) | 161,039 | |
Net unrealized appreciation (depreciation) | 16,365,592 | |
Net Assets, for 48,394,890 shares outstanding | $ 571,869,082 | |
Net Asset Value, offering price and redemption price per share ($571,869,082 ÷ 48,394,890 shares) | $ 11.82 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Income Fund
Financial Statements - continued
Statement of Operations
Year ended December 31, 2006 | ||
Investment Income | ||
Interest | $ 24,653,334 | |
Expenses | ||
Management fee | $ 2,065,208 | |
Transfer agent fees | 441,172 | |
Accounting fees and expenses | 133,743 | |
Custodian fees and expenses | 8,814 | |
Independent trustees' compensation | 2,138 | |
Registration fees | 20,322 | |
Audit | 52,646 | |
Legal | 4,602 | |
Miscellaneous | 7,103 | |
Total expenses before reductions | 2,735,748 | |
Expense reductions | (286,849) | 2,448,899 |
Net investment income | 22,204,435 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 2,817,566 | |
Futures contracts | 221,330 | |
Total net realized gain (loss) | 3,038,896 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,479,211) | |
Futures contracts | 67,273 | |
Total change in net unrealized appreciation (depreciation) | (1,411,938) | |
Net gain (loss) | 1,626,958 | |
Net increase (decrease) in net assets resulting | $ 23,831,393 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 22,204,435 | $ 22,485,171 |
Net realized gain (loss) | 3,038,896 | 4,556,306 |
Change in net unrealized appreciation (depreciation) | (1,411,938) | (11,968,775) |
Net increase (decrease) in net assets resulting | 23,831,393 | 15,072,702 |
Distributions to shareholders from net investment income | (22,267,575) | (22,452,478) |
Distributions to shareholders from net realized gain | (2,876,586) | (5,430,741) |
Total distributions | (25,144,161) | (27,883,219) |
Share transactions | 76,355,990 | 91,467,289 |
Reinvestment of distributions | 16,630,117 | 18,797,338 |
Cost of shares redeemed | (85,289,779) | (91,856,609) |
Net increase (decrease) in net assets resulting from share transactions | 7,696,328 | 18,408,018 |
Redemption fees | 1,406 | 3,250 |
Total increase (decrease) in net assets | 6,384,966 | 5,600,751 |
Net Assets | ||
Beginning of period | 565,484,116 | 559,883,365 |
End of period (including undistributed net investment income of $194,601 and undistributed net investment income of $260,167, respectively) | $ 571,869,082 | $ 565,484,116 |
Other Information Shares | ||
Sold | 6,468,719 | 7,616,556 |
Issued in reinvestment of distributions | 1,409,257 | 1,570,055 |
Redeemed | (7,243,857) | (7,675,047) |
Net increase (decrease) | 634,119 | 1,511,564 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 11.84 | $ 12.11 | $ 12.22 | $ 12.04 | $ 11.47 |
Income from Investment Operations | |||||
Net investment income B | .469 | .472 | .491 | .513 | .532 |
Net realized and unrealized gain (loss) | .041 | (.155) | (.026) | .180 | .568 |
Total from investment operations | .510 | .317 | .465 | .693 | 1.100 |
Distributions from net investment income | (.470) | (.472) | (.490) | (.513) | (.530) |
Distributions from net realized gain | (.060) | (.115) | (.085) | - | - |
Total distributions | (.530) | (.587) | (.575) | (.513) | (.530) |
Redemption fees added to paid in capital B, D | - | - | - | - | - |
Net asset value, end of period | $ 11.82 | $ 11.84 | $ 12.11 | $ 12.22 | $ 12.04 |
Total Return A | 4.41% | 2.67% | 3.90% | 5.87% | 9.78% |
Ratios to Average Net Assets C | |||||
Expenses before reductions | .49% | .49% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .49% | .49% | .50% | .50% | .50% |
Expenses net of all reductions | .44% | .45% | .48% | .49% | .48% |
Net investment income | 3.98% | 3.94% | 4.05% | 4.22% | 4.51% |
Supplemental Data | |||||
Net assets, end of period | $ 571,869 | $ 565,484 | $ 559,883 | $ 561,394 | $ 572,242 |
Portfolio turnover rate | 17% | 23% | 12% | 23% | 17% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Investment Changes/Performance
Maturity Diversification | |||
Days | % of fund's | % of fund's | % of fund's |
0 - 30 | 91.1 | 89.1 | 92.8 |
31 - 90 | 0.9 | 1.7 | 0.0 |
91 - 180 | 0.8 | 7.2 | 3.3 |
181 - 397 | 7.2 | 2.0 | 3.9 |
Weighted Average Maturity | |||
12/31/06 | 6/30/06 | 12/31/05 | |
Fidelity Michigan Municipal Money Market Fund | 26 Days | 21 Days | 19 Days |
All Tax-Free Money Market Funds Average* | 26 Days | 21 Days | 29 Days |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | Variable Rate Demand | ![]() | Variable Rate Demand | ||||
![]() | Commercial Paper | ![]() | Commercial Paper | ||||
![]() | Tender Bonds 0.8% | ![]() | Tender Bonds 2.4% | ||||
![]() | Municipal Notes 4.0% | ![]() | Municipal Notes 2.9% | ||||
![]() | Fidelity Municipal | ![]() | Fidelity Municipal | ||||
![]() | Other Investments 3.8% | ![]() | Other Investments 1.8% | ||||
![]() | Net Other Assets 4.6% | ![]() | Net Other Assets 2.7% |
Current and Historical Seven-Day Yields
1/01/07 | 10/02/06 | 7/03/06 | 4/03/06 | 1/02/06 | |
Fidelity Michigan Municipal Money Market Fund | 3.39% | 3.23% | 3.42% | 2.68% | 2.93% |
If Fidelity had not reimbursed certain fund expenses | 3.38% | 3.23% | 3.41% | 2.68% | 2.90% |
* Source: iMoneyNet, Inc.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Securities - 95.4% | |||
Principal | Value (Note 1) | ||
Michigan - 91.7% | |||
Allen Park Pub. School District Participating VRDN Series ROC II R4007, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | $ 5,100,000 | $ 5,100,000 | |
Charlotte Hosp. Fin. Auth. Ltd. Oblig. Rev. (Hayes Green Beach Proj.) 3.96%, LOC Fifth Third Bank, Cincinnati, VRDN (a) | 13,675,000 | 13,675,000 | |
Clarkston Cmnty. Schools Participating VRDN Series ROC II R4519, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 6,070,000 | 6,070,000 | |
Clinton Econ. Dev. Corp. Rev. (Clinton Area Care Ctr. Proj.) 3.96%, LOC Northern Trust Co., Chicago, VRDN (a) | 4,720,000 | 4,720,000 | |
Delta County Econ. Dev. Corp. Envir. Impt. Rev. Participating VRDN Series PT 2371, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 3,080,000 | 3,080,000 | |
Detroit City School District: | |||
Bonds Series A, 5% 5/1/07 (FGIC Insured) | 5,000,000 | 5,021,097 | |
Participating VRDN: | |||
ROC II R1033, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 2,305,000 | 2,305,000 | |
Series AAB 04 39, 3.95% (Liquidity Facility ABN-AMRO Bank NV) (a)(f) | 6,800,000 | 6,800,000 | |
Series MACN 05 R, 3.95% (Liquidity Facility Bank of America NA) (a)(f) | 8,495,000 | 8,495,000 | |
Series MACN 06 J, 3.95% (Liquidity Facility Bank of America NA) (a)(f) | 5,555,000 | 5,555,000 | |
Series PA 997, 3.95% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 8,000,000 | 8,000,000 | |
Series Putters 1311, 3.97% (Liquidity Facility JPMorgan Chase Bank) (a)(f) | 3,125,000 | 3,125,000 | |
Series ROCS RR R 9015, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 3,475,000 | 3,475,000 | |
Detroit Econ. Dev. Corp. Resource Recovery Rev. Participating VRDN Series Merlots 01 A90, 4.03% (Liquidity Facility Wachovia Bank NA) (a)(d)(f) | 2,500,000 | 2,500,000 | |
Detroit Gen. Oblig.: | |||
Bonds Series 2004 B, 5% 4/1/07 (FSA Insured) | 1,285,000 | 1,288,810 | |
TAN 4.5% 3/1/07, LOC Bank of Nova Scotia, New York Agcy. | 2,400,000 | 2,402,912 | |
Detroit Swr. Disp. Rev. Participating VRDN: | |||
Series AAB 05 3, 3.95% (Liquidity Facility ABN-AMRO Bank NV) (a)(f) | 6,500,000 | 6,500,000 | |
Series GS 06 100 TP, 3.98% (Liquidity Facility DEPFA BANK PLC) (a)(f) | 3,000,000 | 3,000,000 | |
Series MACN 02 G, 3.99% (Liquidity Facility Bank of America NA) (a)(f) | 8,520,000 | 8,520,000 | |
Municipal Securities - continued | |||
Principal | Value (Note 1) | ||
Michigan - continued | |||
Detroit Swr. Disp. Rev. Participating VRDN: - continued | |||
Series Merlots 00 I, 3.95% (Liquidity Facility Wachovia Bank NA) (a)(f) | $ 9,300,000 | $ 9,300,000 | |
Series Merlots 01 A103, 3.95% (Liquidity Facility Bank of New York, New York) (a)(f) | 9,975,000 | 9,975,000 | |
Series Merlots 06 B1, 3.95% (Liquidity Facility Wachovia Bank NA) (a)(f) | 5,490,000 | 5,490,000 | |
Series MT 324 3.96% (Liquidity Facility DEPFA BANK PLC) (a)(f) | 15,000,000 | 15,000,000 | |
Series PA 1183, 3.95% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 5,000,000 | 5,000,000 | |
Series RBC I-2, 3.96% (Liquidity Facility Royal Bank of Canada) (a)(f) | 6,000,000 | 6,000,000 | |
Detroit Wtr. Supply Sys. Rev.: | |||
Bonds Series B, 5.1% 7/1/07 (MBIA Insured) | 1,000,000 | 1,007,175 | |
Participating VRDN: | |||
Series Merlots 00 D, 3.95% (Liquidity Facility Wachovia Bank NA) (a)(f) | 4,500,000 | 4,500,000 | |
Series MSTC 7012 Class A, 3.95% (Liquidity Facility Bear Stearns Companies, Inc.) (a)(f) | 2,500,000 | 2,500,000 | |
Detroit Wtr. Sys. Rev. Participating VRDN Series EGL 99 2202, 3.96% (Liquidity Facility Bayerische Landesbank (UNGTD)) (a)(f) | 8,200,000 | 8,200,000 | |
East Lansing School District Gen. Oblig. Participating VRDN Series SGA 114, 3.94% (Liquidity Facility Societe Generale) (a)(f) | 6,000,000 | 6,000,000 | |
Fitzgerald Pub. School District Participating VRDN Series Putters 561, 3.97% (Liquidity Facility JPMorgan Chase Bank) (a)(f) | 2,985,000 | 2,985,000 | |
Fraser Pub. School District Participating VRDN Series AAB 05 39, 3.63% tender 12/6/07 (Liquidity Facility ABN-AMRO Bank NV) (a)(f)(g) | 1,515,000 | 1,515,000 | |
Grand Rapids Econ. Dev. Corp. (Cornerstone Univ. Proj.) 3.93%, LOC Nat'l. City Bank, VRDN (a) | 1,800,000 | 1,800,000 | |
Grand Rapids San. Swr. Sys. Rev. Impt. Participating VRDN Series EGL 98 2201, 3.96% (Liquidity Facility Citibank NA) (a)(f) | 7,940,000 | 7,940,000 | |
Holland Charter Township Econ. Dev. Corp. Rev. (Chicago Mission Proj.) 4.02%, LOC Comerica Bank, Detroit, VRDN (a) | 2,230,000 | 2,230,000 | |
Jackson County Hosp. Fin. Auth. Hosp. Rev. (Washington Foote Memorial Hosp. Proj.) Series B, 3.93%, VRDN (a) | 7,600,000 | 7,600,000 | |
Jonesville Cmnty. Schools Participating VRDN Series ROC II R7512, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 5,790,000 | 5,790,000 | |
Municipal Securities - continued | |||
Principal | Value (Note 1) | ||
Michigan - continued | |||
L'Anse Creuse Pub. Schools Participating VRDN Series EGL 06 32 Class A, 3.96% (Liquidity Facility Citibank NA) (a)(f) | $ 3,750,000 | $ 3,750,000 | |
Lakeview School District Calhoun County Participating VRDN Series PT 1624, 3.95% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 7,150,000 | 7,150,000 | |
Michigan Bldg. Auth. Rev.: | |||
Bonds Series II, 5.5% 10/15/08 (Pre-Refunded to 10/15/07 @ 101) (e) | 10,000,000 | 10,248,313 | |
Participating VRDN: | |||
Series 06 156, 3.96% (Liquidity Facility Citibank NA) (a)(f) | 7,000,000 | 7,000,000 | |
Series AAB 03 35, 3.95% (Liquidity Facility ABN-AMRO Bank NV) (a)(f) | 3,000,000 | 3,000,000 | |
Series AAB 05 33, 3.95% (Liquidity Facility ABN-AMRO Bank NV) (a)(f) | 5,995,000 | 5,995,000 | |
Series Eagle 06 0142, 3.96% (Liquidity Facility Citibank NA) (a)(f) | 7,900,000 | 7,900,000 | |
Series EGL 01 2202, 3.96% (Liquidity Facility Citibank NA) (a)(f) | 3,000,000 | 3,000,000 | |
Series MS 00 481X, 3.95% (Liquidity Facility Morgan Stanley) (a)(f) | 2,670,000 | 2,670,000 | |
Series MSTC 2006 277 Class A, 4% (Liquidity Facility Bear Stearns Companies, Inc.) (a)(f) | 3,800,000 | 3,800,000 | |
Series PA 889R, 3.95% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 7,795,000 | 7,795,000 | |
Series Putters 1465, 3.97% (Liquidity Facility JPMorgan Chase Bank) (a)(f) | 6,400,000 | 6,400,000 | |
Series PZ 140, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 8,500,000 | 8,500,000 | |
Series ROC II R2064, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 2,730,000 | 2,730,000 | |
Series ROC II R4057, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 2,200,000 | 2,200,000 | |
Series ROC II R4551, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 2,955,000 | 2,955,000 | |
Series ROC II R550, 3.95% (Liquidity Facility Citibank NA) (a)(f) | 1,995,000 | 1,995,000 | |
Series ROCS RR R 2111, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 5,150,000 | 5,150,000 | |
Series ROCS RR R 7039, 3.97% (Liquidity Facility Citigroup, Inc.) (a)(f) | 10,305,000 | 10,305,000 | |
Michigan Gen. Oblig.: | |||
Participating VRDN Series PT 2021, 3.95% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 4,400,000 | 4,400,000 | |
TAN 4.25% 9/28/07, LOC DEPFA BANK PLC | 8,200,000 | 8,244,203 | |
Municipal Securities - continued | |||
Principal | Value (Note 1) | ||
Michigan - continued | |||
Michigan Higher Ed. Student Ln. Auth. Rev.: | |||
Participating VRDN: | |||
Series LB 05 L20, 4.08% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(d)(f) | $ 6,475,000 | $ 6,475,000 | |
Series MS 1280, 3.98% (Liquidity Facility Morgan Stanley) (a)(d)(f) | 2,400,000 | 2,400,000 | |
Series PA 1064, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d)(f) | 7,420,000 | 7,420,000 | |
Series XII B, 3.96% (AMBAC Insured), VRDN (a)(d) | 8,500,000 | 8,500,000 | |
Michigan Hosp. Fin. Auth. Hosp. Rev.: | |||
Participating VRDN: | |||
Series PA 1425, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(f) | 2,500,000 | 2,500,000 | |
Series ROC II R 588 CE, 3.95% (Liquidity Facility Citibank NA) (a)(f) | 1,670,000 | 1,670,000 | |
(Health Care Equip. Ln. Prog.): | |||
Series B, 3.95%, LOC LaSalle Bank Midwest NA, VRDN (a) | 5,600,000 | 5,600,000 | |
Series C, 3.95%, LOC Fifth Third Bank, Cincinnati, VRDN (a) | 7,500,000 | 7,500,000 | |
(Munising Memorial Hosp. Assoc. Proj.) 3.96%, LOC Banco Santander Central Hispano SA, VRDN (a) | 7,800,000 | 7,800,000 | |
Michigan Hosp. Fin. Auth. Rev. Series B, 3.95%, LOC LaSalle Bank Midwest NA, VRDN (a) | 3,600,000 | 3,600,000 | |
Michigan Hsg. Dev. Auth. Multi-family Hsg. Rev. (Hunt Club Apts. Proj.) 3.95%, LOC Fannie Mae, VRDN (a)(d) | 6,345,000 | 6,345,000 | |
Michigan Hsg. Dev. Auth. Rental Hsg. Rev.: | |||
Series 2000 A, 3.95% (MBIA Insured), VRDN (a)(d) | 3,140,000 | 3,140,000 | |
Series 2002 A, 3.95% (MBIA Insured), VRDN (a)(d) | 17,300,000 | 17,300,000 | |
Series 2004 A, 3.94% (FGIC Insured), VRDN (a)(d) | 3,000,000 | 3,000,000 | |
Series 2005 A, 3.95% (FSA Insured), VRDN (a)(d) | 17,680,000 | 17,680,000 | |
Michigan Hsg. Dev. Auth. Single Family Mtg. Rev.: | |||
Series 1999 B2, 4.05% (MBIA Insured), VRDN (a)(d) | 3,400,000 | 3,400,000 | |
Series 2002 A, 4.05% (MBIA Insured), VRDN (a)(d) | 4,885,000 | 4,885,000 | |
Series B, 4.08% (Liquidity Facility DEPFA BANK PLC), VRDN (a)(d) | 7,200,000 | 7,200,000 | |
Michigan Muni. Bond Auth. Rev.: | |||
Bonds: | |||
(Local Govt. Ln. Prog.) Series A, 0% 12/1/07 (FGIC Insured) | 5,340,000 | 5,169,935 | |
(State Revolving Fund Prog.) 5.125% 10/1/20 (Pre-Refunded to 10/1/07 @ 101) (e) | 10,000,000 | 10,208,239 | |
Municipal Securities - continued | |||
Principal | Value (Note 1) | ||
Michigan - continued | |||
Michigan Muni. Bond Auth. Rev.: - continued | |||
Participating VRDN: | |||
Series EGL 00 2201, 3.96% (Liquidity Facility Citibank NA) (a)(f) | $ 3,500,000 | $ 3,500,000 | |
Series MS 718, 3.95% (Liquidity Facility Morgan Stanley) (a)(f) | 6,090,500 | 6,090,500 | |
Series MSTC 02 204, 3.94% (Liquidity Facility Bear Stearns Companies, Inc.) (a)(f) | 10,395,000 | 10,395,000 | |
RAN Series B2, 4.5% 8/20/07, LOC Bank of Nova Scotia, New York Agcy. | 23,200,000 | 23,326,675 | |
Michigan State Univ. Revs. Series 1998 A2, 3.9% (Liquidity Facility DEPFA BANK PLC), VRDN (a) | 4,950,000 | 4,950,000 | |
Michigan Strategic Fund Indl. Dev. Rev. (Althaus Family Investors II Proj.) Series 1997, 4.21%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a) | 1,720,000 | 1,720,000 | |
Michigan Strategic Fund Ltd. Oblig. Rev.: | |||
Bonds (Dow Chemical Co. Proj.) Series A1, 3.7% tender 1/10/07, CP mode (d) | 5,650,000 | 5,650,000 | |
Participating VRDN Series Putters 858Z, 3.98% (Liquidity Facility JPMorgan Chase Bank) (a)(d)(f) | 12,170,000 | 12,170,000 | |
(BC&C Proj.) 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,250,000 | 1,250,000 | |
(Biewer of Lansing LLC Proj.) Series 1999, 4.06%, LOC LaSalle Bank Midwest NA, VRDN (a)(d) | 870,000 | 870,000 | |
(Bosal Ind. Proj.) Series 1998, 4.03%, LOC Bank of New York, New York, VRDN (a)(d) | 7,500,000 | 7,500,000 | |
(CJS Properties LLC Proj.) 4.2%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 1,700,000 | 1,700,000 | |
(Conti Properties LLC Proj.) Series 1997, 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,200,000 | 2,200,000 | |
(Creative Foam Corp. Proj.) 4.2%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 600,000 | 600,000 | |
(Doss Ind. Dev. Co. Proj.) 4.2%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 1,400,000 | 1,400,000 | |
(Dow Chemical Co. Proj.) 4.02%, VRDN (a) | 2,000,000 | 2,000,000 | |
(Fintex LLC Proj.) Series 2000, 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,390,000 | 1,390,000 | |
(Future Fence Co. Proj.) 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,205,000 | 2,205,000 | |
(Holland Home Oblig. Group Proj.) 3.95%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a) | 1,000,000 | 1,000,000 | |
(Holland Plastics Corp. Proj.) 4.02%, LOC LaSalle Bank NA, VRDN (a)(d) | 3,680,000 | 3,680,000 | |
Municipal Securities - continued | |||
Principal | Value (Note 1) | ||
Michigan - continued | |||
Michigan Strategic Fund Ltd. Oblig. Rev.: - continued | |||
(John H. Dekker & Sons Proj.) Series 1998, 4.07%, LOC LaSalle Bank Midwest NA, VRDN (a)(d) | $ 915,000 | $ 915,000 | |
(K&M Engineering, Inc. Proj.) 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,440,000 | 1,440,000 | |
(LPB LLC Proj.) 4.2%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,200,000 | 2,200,000 | |
(Majestic Ind., Inc. Proj.) 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,895,000 | 1,895,000 | |
(Mans Proj.) Series 1998, 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 940,000 | 940,000 | |
(Mid-American Products, Inc. Proj.) Series 1998 4.02%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,230,000 | 1,230,000 | |
(PBL Enterprises, Inc. Proj.) Series 1997, 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 1,745,000 | 1,745,000 | |
(Pioneer Laboratories, Inc. Proj.) 3.99%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 1,900,000 | 1,900,000 | |
(S&S LLC Proj.) Series 2000, 4.14%, LOC LaSalle Bank Midwest NA, VRDN (a)(d) | 1,950,000 | 1,950,000 | |
(SBC Ventures LLC Proj.) 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 3,855,000 | 3,855,000 | |
(TEI Invts. LLC Proj.) Series 1997, 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 600,000 | 600,000 | |
(Temperance Enterprise Proj.) Series 1996, 4.08%, LOC Nat'l. City Bank, VRDN (a)(d) | 1,520,000 | 1,520,000 | |
(The Spiratex Co. Proj.) Series 1994, 4.3%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 600,000 | 600,000 | |
(The Van Andel Research Institute Proj.) Series 1999, 3.95%, LOC LaSalle Bank Midwest NA, VRDN (a) | 5,000,000 | 5,000,000 | |
(Trilan LLC Proj.) 4.2%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 3,400,000 | 3,400,000 | |
(W.H. Porter, Inc. Proj.) Series 2001, 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 2,775,000 | 2,775,000 | |
(Windcrest Properties LLC Proj.) 4.05%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 3,500,000 | 3,500,000 | |
(YMCA Metropolitan Detroit Proj.) Series 2001, 3.96%, LOC JPMorgan Chase Bank, VRDN (a) | 12,175,000 | 12,175,000 | |
Michigan Strategic Fund Solid Waste Disp. Rev.: | |||
Participating VRDN Series LB 05 F11, 4.13% (Lehman Brothers Hldgs., Inc. Guaranteed) (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(d)(f) | 5,000,000 | 5,000,000 | |
(Grayling Gen. Station Proj.) Series 1990, 3.96%, LOC Barclays Bank PLC, VRDN (a)(d) | 21,087,000 | 21,087,000 | |
Municipal Securities - continued | |||
Principal | Value (Note 1) | ||
Michigan - continued | |||
Michigan Sumitomo Bank Participating VRDN Series BNY 02 3, 3.99% (Liquidity Facility Bank of New York, New York) (a)(d)(f) | $ 5,500,000 | $ 5,500,000 | |
Oakland County Econ. Dev. Corp. Ltd. Oblig. Rev.: | |||
(Osmic, Inc. Proj.) Series 2001 A, 4.02%, LOC JPMorgan Chase Bank, VRDN (a)(d) | 6,300,000 | 6,300,000 | |
(Progressive Metal Manufacturing Co. Proj.) 4.07%, LOC Comerica Bank, Detroit, VRDN (a)(d) | 4,000,000 | 4,000,000 | |
Saint Clair County Econ. Dev. Corp. Poll. Cont. Rev. Participating VRDN Series MS 00 282, 3.95% (Liquidity Facility Morgan Stanley) (a)(f) | 11,895,000 | 11,895,000 | |
Saline Area Schools 3.93% (Michigan Gen. Oblig. Guaranteed), VRDN (a) | 12,200,000 | 12,200,000 | |
Sanilac County Econ. Dev. Corp. (Marlette Cmnty. Hosp. Proj.) Series 2001, 3.96%, LOC JPMorgan Chase Bank, VRDN (a) | 11,910,000 | 11,910,000 | |
Southfield Library Bldg. Auth. Participating VRDN Series ROC II R7521, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 2,650,000 | 2,650,000 | |
Univ. of Michigan Univ. Revs.: | |||
(Med. Svc. Plan Proj.) Series 1995 A, 3.9%, VRDN (a) | 7,400,000 | 7,400,000 | |
(Univ. of Michigan Hosp. Proj.) Series 1995 A, 3.9%, VRDN (a) | 22,680,000 | 22,680,000 | |
Van Buren Township Local Dev. Fin. Auth. Participating VRDN Series ROC 4518, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 7,635,000 | 7,635,000 | |
Waterford Econ. Dev. Corp. Ltd. Oblig. Rev. (Canterbury Health Care, Inc. Proj.) 3.96%, LOC KBC Bank NV, VRDN (a) | 6,500,000 | 6,500,000 | |
Wayne Charter County Arpt. Rev. (Detroit Metropolitan Wayne County Arpt. Proj.) 3.96% (FSA Insured), VRDN (a)(d) | 3,200,000 | 3,200,000 | |
Wayne County Arpt. Auth. Rev. Participating VRDN: | |||
Series EGL 06 16 Class A, 3.99% (Liquidity Facility Citibank NA) (a)(d)(f) | 4,950,000 | 4,950,000 | |
Series EGL 720053029 Class A, 3.99% (Liquidity Facility Citibank NA) (a)(d)(f) | 6,600,000 | 6,600,000 | |
Series MACN 05 T, 3.99% (Liquidity Facility Bank of America NA) (a)(d)(f) | 3,640,000 | 3,640,000 | |
Series MT 115, 3.98% (Liquidity Facility Svenska Handelsbanken AB) (a)(d)(f) | 6,100,000 | 6,100,000 | |
Series MT 203, 3.98% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d)(f) | 6,500,000 | 6,500,000 | |
Series Putters 1081Z, 3.98% (Liquidity Facility JPMorgan Chase Bank) (a)(d)(f) | 2,750,000 | 2,750,000 | |
Series Putters 836, 3.98% (Liquidity Facility JPMorgan Chase & Co.) (a)(d)(f) | 6,065,000 | 6,065,000 | |
Series ROC II R 9009, 3.98% (Liquidity Facility Citigroup, Inc.) (a)(d)(f) | 4,560,000 | 4,560,000 | |
Municipal Securities - continued | |||
Principal | Value (Note 1) | ||
Michigan - continued | |||
Wayne County Arpt. Auth. Rev. Participating VRDN: - continued | |||
Series ROC II R442, 3.98% (Liquidity Facility Citibank NA) (a)(d)(f) | $ 6,795,000 | $ 6,795,000 | |
Wayne State Univ. Revs Participating VRDN Series MS 06 1488, 3.95% (Liquidity Facility Morgan Stanley) (a)(f) | 7,700,000 | 7,700,000 | |
Whitmore Lake Pub. School District Participating VRDN Series ROC II R4515, 3.95% (Liquidity Facility Citigroup, Inc.) (a)(f) | 3,855,000 | 3,855,000 | |
Zeeland Hosp. Fin. Auth. Rev. (Zeeland Cmnty. Hosp. Proj.) 4.05%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a) | 15,410,000 | 15,410,000 | |
793,564,859 | |||
Puerto Rico - 0.6% | |||
Puerto Rico Ind. Med. & Envir. Poll. Cont. Facilities Fing. Auth. Rev. Bonds (Abbot Labs Proj.) 3.55%, tender 3/1/07 (a) | 5,000,000 | 5,000,396 | |
Shares | |||
Other - 3.1% | |||
Fidelity Municipal Cash Central Fund, 3.99% (b)(c) | 26,548,500 | 26,548,500 | |
TOTAL INVESTMENT PORTFOLIO - 95.4% (Cost $825,113,755) | 825,113,755 | ||
NET OTHER ASSETS - 4.6% | 39,849,259 | ||
NET ASSETS - 100% | $ 864,963,014 |
Security Type Abbreviations |
CP - COMMERCIAL PAPER |
RAN - REVENUE ANTICIPATION |
TAN - TAX ANTICIPATION NOTE |
VRDN - VARIABLE RATE DEMAND NOTE |
Legend |
(a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(b) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(c) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Security collateralized by an amount sufficient to pay interest and principal. |
(f) Provides evidence of ownership in one or more underlying municipal bonds. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,515,000 or 0.2% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Cost |
Fraser Pub. School District Participating VRDN Series AAB 05 39, 3.63% tender 12/6/07 (Liquidity Facility ABN-AMRO Bank NV) | 12/12/06 | $ 1,515,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 183,839 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
December 31, 2006 | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $798,565,255) | $ 798,565,255 | |
Fidelity Central Funds (cost $26,548,500) | 26,548,500 | |
Total Investments (cost $825,113,755) | $ 825,113,755 | |
Cash | 39,178,206 | |
Receivable for fund shares sold | 20,142,404 | |
Interest receivable | 5,455,167 | |
Prepaid expenses | 3,835 | |
Other receivables | 217,550 | |
Total assets | 890,110,917 | |
Liabilities | ||
Payable for investments purchased | $ 15,003,205 | |
Payable for fund shares redeemed | 9,581,430 | |
Distributions payable | 27,772 | |
Accrued management fee | 262,112 | |
Other affiliated payables | 224,197 | |
Other payables and accrued expenses | 49,187 | |
Total liabilities | 25,147,903 | |
Net Assets | $ 864,963,014 | |
Net Assets consist of: | ||
Paid in capital | $ 864,896,621 | |
Undistributed net investment income | 24,562 | |
Accumulated undistributed net realized gain (loss) on investments | 41,831 | |
Net Assets, for 864,382,699 shares outstanding | $ 864,963,014 | |
Net Asset Value, offering price and redemption price per share ($864,963,014 ÷ 864,382,699 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Financial Statements - continued
Statement of Operations
Year ended December 31, 2006 | ||
Investment Income | ||
Interest | $ 25,163,541 | |
Income from Fidelity Central Funds | 183,839 | |
Total income | 25,347,380 | |
Expenses | ||
Management fee | $ 2,768,399 | |
Transfer agent fees | 1,179,414 | |
Accounting fees and expenses | 93,634 | |
Custodian fees and expenses | 12,773 | |
Independent trustees' compensation | 2,741 | |
Registration fees | 46,011 | |
Audit | 40,138 | |
Legal | 5,800 | |
Miscellaneous | 30,655 | |
Total expenses before reductions | 4,179,565 | |
Expense reductions | (1,086,064) | 3,093,501 |
Net investment income | 22,253,879 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 41,831 | |
Net increase in net assets resulting from operations | $ 22,295,710 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 22,253,879 | $ 12,456,066 |
Net realized gain (loss) | 41,831 | 75,234 |
Net increase in net assets resulting | 22,295,710 | 12,531,300 |
Distributions to shareholders from net investment income | (22,254,630) | (12,429,383) |
Distributions to shareholders from net realized gain | - | (64,798) |
Total distributions | (22,254,630) | (12,494,181) |
Share transactions at net asset value of $1.00 per share | 2,424,977,939 | 1,770,447,671 |
Reinvestment of distributions | 21,875,678 | 12,318,803 |
Cost of shares redeemed | (2,276,982,568) | (1,695,873,909) |
Net increase (decrease) in net assets and shares resulting from share transactions | 169,871,049 | 86,892,565 |
Total increase (decrease) in net assets | 169,912,129 | 86,929,684 |
Net Assets | ||
Beginning of period | 695,050,885 | 608,121,201 |
End of period (including undistributed net investment income of $24,562 and undistributed net investment income of $25,314, respectively) | $ 864,963,014 | $ 695,050,885 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations | |||||
Net investment income | .030 | .020 | .007 | .006 | .010 |
Net realized and unrealized gain (loss) D | - | - | - | - | - |
Total from investment operations | .030 | .020 | .007 | .006 | .010 |
Distributions from net investment income | (.030) | (.020) | (.007) | (.006) | (.010) |
Distributions from net realized gain | - | - D | - | - D | - |
Total distributions | (.030) | (.020) | (.007) | (.006) | (.010) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | 3.01% | 1.99% | .73% | .63% | 1.03% |
Ratios to Average Net Assets B, C | |||||
Expenses before reductions | .56% | .56% | .57% | .56% | .56% |
Expenses net of fee waivers, | .55% | .55% | .57% | .56% | .56% |
Expenses net of all reductions | .41% | .46% | .55% | .55% | .52% |
Net investment income | 2.97% | 1.97% | .72% | .61% | 1.02% |
Supplemental Data | |||||
Net assets, end of period | $ 864,963 | $ 695,051 | $ 608,121 | $ 588,292 | $ 568,762 |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2006
1. Significant Accounting Policies.
Fidelity Michigan Municipal Income Fund (the Income Fund) is a fund of Fidelity Municipal Trust. Fidelity Michigan Municipal Money Market Fund (the Money Market Fund) is a fund of Fidelity Municipal 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 Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. The Income Fund is a non-diversified fund. Each Fund may be affected by economic and political developments in the state of Michigan. The Funds may invest in Fidelity Central Funds which are open-end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Income Fund and the Money Market Fund, which are also consistently followed by the Fidelity Central Funds:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, each Fund uses independent pricing services approved by the Board of Trustees to value their investments. For the Income Fund, debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
As permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities owned by the Money Market Fund are valued at amortized cost which approximates value.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions, including the Fund's investment activity in the Fidelity Central Funds, are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and income distributions from the Fidelity Central Funds are accrued as earned, with any income distributions receivable as of period end included in Interest Receivable on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, certain Funds will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to futures transactions.
The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
Cost for Federal | Unrealized | Unrealized | Net Unrealized | |
Fidelity Michigan Municipal Income Fund | $ 544,664,904 | $ 18,038,300 | $ (1,698,657) | $ 16,339,643 |
Fidelity Michigan Municipal Money Market Fund | $ 825,113,755 | - | - | - |
Undistributed | Undistributed | |
Fidelity Michigan Municipal Income Fund | $ 2,263 | $ 272,453 |
Fidelity Michigan Municipal Money Market Fund | 25,166 | 30,709 |
The tax character of distributions paid was as follows:
December 31, 2006 | |||
Tax-exempt | Long-term | Total | |
Fidelity Michigan Municipal Income Fund | $ 22,267,575 | $ 2,876,586 | $ 25,144,161 |
Fidelity Michigan Municipal Money Market Fund | 22,254,630 | - | 22,254,630 |
December 31, 2005 | |||
Tax-exempt Income | Long-term Capital Gains | Total | |
Fidelity Michigan Municipal Income Fund | $ 22,452,478 | $ 5,430,741 | $ 27,883,219 |
Fidelity Michigan Municipal Money Market Fund | 12,429,383 | 64,798 | 12,494,181 |
Short-Term Trading (Redemption) Fees. Shares held in the Income Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Funds' net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds' financial statement disclosures.
2. Operating Policies.
Futures Contracts. The Income Fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin")equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Income Funds' Schedule of Investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Restricted Securities. Certain Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally 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. Information regarding restricted securities is included at the end of each applicable Fund's Schedule of Investments.
Annual Report
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $98,225,895 and $93,023,969, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual | Group Rate | Total | |
Fidelity Michigan Municipal Income Fund | .25% | .12% | .37% |
Fidelity Michigan Municipal Money Market Fund | .25% | .12% | .37% |
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the Funds' transfer and shareholder servicing agent and accounting functions. The Funds pay account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Michigan Municipal Income Fund | .08% | | |
Fidelity Michigan Municipal Money Market Fund | .16% |
Investments in Fidelity Central Funds. The Funds may invest in Fidelity Central Funds. The Funds' Schedule of Investments lists each of the Fidelity Central Funds as an investment of each Fund but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Investments in Fidelity Central Funds - continued
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
5. Committed Line of Credit.
The Income Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro rata portion of the line of credit, which is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:
Fidelity Michigan Municipal Income Fund | $ 1,260 |
During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
FMR voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following funds were in reimbursement during the period:
Expense | Reimbursement | |
Fidelity Michigan Municipal Money Market Fund | .55% | $ 60,868 |
In addition, through arrangements with each applicable fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable fund's expenses. All of the applicable expense reductions are noted in the table below.
Custody | Transfer | Accounting | |
Fidelity Michigan Municipal Income Fund | $ 8,814 | $ 267,100 | $ 10,935 |
Fidelity Michigan Municipal Money Market Fund | 12,773 | 1,004,284 | 8,139 |
Annual Report
7. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Fidelity Michigan Municipal Income Fund and Fidelity Michigan Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Michigan Municipal Income Fund (a fund of Fidelity Municipal Trust) and Fidelity Michigan Municipal Money Market Fund (a fund of Fidelity Municipal Trust II) at December 31, 2006 the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Municipal Trust's and Fidelity Municipal Trust II's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 12, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trusts and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Each of the Trustees oversees 348 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (76) | |
Year of Election or Appointment: 1984 or 1991 Trustee of Fidelity Municipal Trust (1984) and Fidelity Municipal Trust II (1991). Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). | |
Robert L. Reynolds (54) | |
Year of Election or Appointment: 2003 Mr. Reynolds is President and a Director of FMR (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and FMR Co., Inc. (2005-present). Mr. Reynolds also serves as Vice Chairman (2006-present), a Director (2003-present), and Chief Operating Officer of FMR Corp. and a Director of Strategic Advisers, Inc. (2005-present). He also serves on the Board at Fidelity Investments Canada, Ltd. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trusts or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (58) | |
Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). | |
Albert R. Gamper, Jr. (64) | |
Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. | |
George H. Heilmeier (70) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. | |
James H. Keyes (66) | |
Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). | |
Marie L. Knowles (60) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (62) | |
Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. | |
Cornelia M. Small (62) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (67) | |
Year of Election or Appointment: 2001 or 2002 Trustee of Fidelity Municipal Trust II (2001) and Fidelity Municipal Trust (2002). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), and Metalmark Capital (private equity investment firm, 2005-present). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (67) | |
Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (62) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust and Fidelity Municipal Trust II. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. | |
Kimberley H. Monasterio (43) | |
Year of Election or Appointment: 2007 President and Treasurer of Michigan Municipal Income and Michigan Municipal Money Market. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
Boyce I. Greer (50) | |
Year of Election or Appointment: 2006 Vice President of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002). | |
Charles S. Morrison (46) | |
Year of Election or Appointment: 2005 Vice President of Michigan Municipal Money Market. Mr. Morrison also serves as Vice President of Fidelity's Money Market Funds (2005-present) and certain Asset Allocation Funds (2002-present). Previously, he served as Vice President of Fidelity's Bond Funds (2002-2005) and certain Balanced Funds (2002-2005). He served as Vice President (2002-2005) and Bond Group Leader (2002-2005) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002-present) and FMR (2002-present). Mr. Morrison joined Fidelity Investments in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
David L. Murphy (58) | |
Year of Election or Appointment: 2002 or 2005 Vice President of Michigan Municipal Income (2005-present) and Michigan Municipal Money Market (2002-present). Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). | |
Thomas J. Silvia (45) | |
Year of Election or Appointment: 2005 Vice President of Michigan Municipal Income. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present), certain Balanced Funds (2005-present), certain Asset Allocation Funds (2005-present), and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004). | |
Michael Widrig (43) | |
Year of Election or Appointment: 2004 Vice President of Michigan Municipal Money Market. Mr. Widrig also serves as Vice President of other funds advised by FMR. Prior to his current responsibilities, Mr. Widrig worked as an analyst and manager. | |
Jamie Pagliocco (42) | |
Year of Election or Appointment: 2006 Vice President of Michigan Municipal Income. Mr. Pagliocco also serves as Vice President of other funds advised by FMR. Prior to his current responsibilities, Mr. Pagliocco worked as a municipal bond trader, assistant fixed income head trader, and manager. | |
Eric D. Roiter (58) | |
Year of Election or Appointment: 1998 Secretary of Michigan Municipal Income and Michigan Municipal Money Market. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). | |
Stuart Fross (47) | |
Year of Election or Appointment: 2003 Assistant Secretary of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003-present), Vice President and Secretary of FDC (2005-present), and is an employee of FMR. | |
R. Stephen Ganis (40) | |
Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). | |
Joseph B. Hollis (58) | |
Year of Election or Appointment: 2006 Chief Financial Officer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). | |
Kenneth A. Rathgeber (59) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005- present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
Bryan A. Mehrmann (45) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). | |
Kenneth B. Robins (37) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). | |
Robert G. Byrnes (40) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). | |
John H. Costello (60) | |
Year of Election or Appointment: 1986 or 1990 Assistant Treasurer of Michigan Municipal Income (1986) and Michigan Municipal Money Market (1990). Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (52) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (51) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Gary W. Ryan (48) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). | |
Salvatore Schiavone (41) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Michigan Municipal Income and Michigan Municipal Money Market. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
Fund | Pay Date | Record Date | Capital |
Fidelity Michigan Municipal Income Fund | 2/05/07 | 02/02/07 | $0.007 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended December 31, 2006, or, if subsequently determined to be different, the net capital gain of such year.
Fund | |
Fidelity Michigan Municipal Income Fund | $ 3,067,846 |
Fidelity Michigan Municipal Money Market Fund | $ 41,831 |
During fiscal year ended 2006, 100% of Fidelity Michigan Municipal Income Fund and 100% of Fidelity Michigan Municipal Money Market Fund's income dividends were free from federal income tax, and 1.35% of Fidelity Michigan Municipal Income Fund and 33% of Fidelity Michigan Municipal Money Market Fund's income dividends were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2007 of amounts for use in preparing 2006 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* 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.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity International Investment Advisors
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
and
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
MIR-UANN-0207
1.787737.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Minnesota Municipal Income
Fund
Annual Report
December 31, 2006
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
We have seen consistently strong performance from stocks and bonds of late, and some relief in energy prices, but the housing market slowdown bears watching for how it might affect the consumer. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2006 | Past 1 | Past 5 | Past 10 |
Fidelity® MN Municipal Income Fund | 4.15% | 4.88% | 5.11% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Minnesota Municipal Income Fund on December 31, 1996. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Christine Thompson, Portfolio Manager of Fidelity® Minnesota Municipal Income Fund
Growing investor demand and a strong second-half rally helped municipal bonds post solid returns and take their place as one of the best performing investment-grade debt classes for the year ending December 31, 2006. Throughout roughly the first six months of the period, muni bond prices declined as the Federal Reserve Board raised short-term interest rates to return them to a more "neutral level" and fend off inflation. Beginning in mid-summer 2006, however, munis rebounded amid hopes that the Fed would pause its rate hike campaign. Those hopes were eventually actualized when the central bank left rates unchanged at its August, September, October and December Open Market Committee meetings. Demand - which was amplified by non-traditional investors such as hedge funds - increased substantially, as investors sought out munis for their attractive after-tax yields. Investors also were drawn to the fact that unlike long-term Treasury bonds, which generally yielded less than short-term Treasuries throughout much of the period, long-term rates for munis were higher than short rates, giving investors the opportunity to lock in attractive long-term yields. Against this backdrop, the Lehman Brothers® Municipal Bond Index - a performance measure of approximately 34,000 investment-grade, fixed-rate, tax-exempt bonds - returned 4.84%. In comparison, the overall taxable bond market, as measured by the Lehman Brothers Aggregate Bond Index, returned 4.33%.
During the past year, the fund gained 4.15% and the Lehman Brothers Minnesota Enhanced Municipal Bond Index gained 4.46%. The Minnesota muni market modestly trailed the national average, due primarily to its overall high quality in a year when lower-quality securities generally performed best. The fund's performance relative to the index was helped by its overweighting in lower-quality investment-grade bonds - particularly in the hospital and electric utility segments. Thanks largely to investors' appetite for high-yielding securities, lower-quality securities generally outpaced higher-quality munis. My decision to underweight housing bonds also helped, as they lagged other sectors on a duration-adjusted basis due to prepayment concerns. Also aiding the fund was its larger-than-index stake in bonds that were prerefunded, a process that helped boost the bonds' returns. My overweighting in premium bonds - which trade above their face value - detracted from results, because they underperformed discount bonds, which sell below face value. I kept the fund's duration - meaning its interest rate sensitivity - in line with the index, a strategy that had no meaningful impact on performance.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2006 to December 31, 2006).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Beginning | Ending | Expenses Paid | |
Actual | $ 1,000.00 | $ 1,039.80 | $ 2.52 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,022.74 | $ 2.50 |
* Expenses are equal to the Fund's annualized expense ratio of .49%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Five Sectors as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
General Obligations | 32.9 | 33.5 |
Health Care | 18.8 | 16.1 |
Escrowed/Pre-Refunded | 17.4 | 18.3 |
Electric Utilities | 14.4 | 14.1 |
Transportation | 8.7 | 8.5 |
Average Years to Maturity as of December 31, 2006 | ||
6 months ago | ||
Years | 12.5 | 12.3 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2006 | ||
6 months ago | ||
Years | 5.8 | 5.8 |
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 this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | AAA 60.1% | ![]() | AAA 60.3% | ||||
![]() | AA,A 33.2% | ![]() | AA,A 32.8% | ||||
![]() | BBB 4.7% | ![]() | BBB 4.4% | ||||
![]() | BB and Below 0.7% | ![]() | BB and Below 0.7% | ||||
![]() | Not Rated 0.7% | ![]() | Not Rated 0.0% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ® ratings. |
Annual Report
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Bonds - 99.4% | ||||
Principal | Value | |||
Guam - 0.5% | ||||
Guam Ed. Fing. Foundation Series A, 5% 10/1/23 | $ 1,000,000 | $ 1,055,170 | ||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35 | 425,000 | 455,953 | ||
1,511,123 | ||||
Minnesota - 96.4% | ||||
Anoka-Hennepin Independent School District #11: | ||||
Series 2004 B, 5% 2/1/20 | 1,880,000 | 1,984,960 | ||
Series A, 5.75% 2/1/20 (Pre-Refunded to 2/1/10 @ 100) (c) | 3,950,000 | 4,179,653 | ||
Brainerd Independent School District #181 Series A: | ||||
5.375% 2/1/16 (FGIC Insured) | 3,285,000 | 3,571,879 | ||
5.375% 2/1/17 (FGIC Insured) | 4,100,000 | 4,453,748 | ||
5.375% 2/1/19 (FGIC Insured) | 2,200,000 | 2,380,576 | ||
Brooklyn Ctr. Independent School District #286 5.1% 2/1/31 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) (c) | 6,000,000 | 6,360,660 | ||
Cambridge Independent School District #911 Gen. Oblig. (Minnesota School District Prog.) Series C, 5% 4/1/14 (MBIA Insured) | 1,200,000 | 1,295,868 | ||
Centennial Independent School District #12: | ||||
Series 1996 A, 5.625% 2/1/16 (Pre-Refunded to 2/1/08 @ 100) (c) | 1,000,000 | 1,020,600 | ||
Series A, 5% 2/1/19 (FSA Insured) | 480,000 | 505,666 | ||
Chaska Elec. Rev. (Generating Facilities Proj.) Series A: | ||||
5.25% 10/1/20 | 2,000,000 | 2,179,680 | ||
5.25% 10/1/25 | 1,955,000 | 2,114,176 | ||
Duluth Econ. Dev. Auth. Health Care Facilities Rev. (Benedictine Health Sys. St. Mary's) 5.25% 2/15/28 | 2,350,000 | 2,466,372 | ||
Elk River Independent School District #728 Series A, 5% 2/1/17 (FGIC Insured) | 2,000,000 | 2,156,640 | ||
Hopkins Independent School District #270: | ||||
5% 2/1/16 (FGIC Insured) | 1,350,000 | 1,424,966 | ||
5.125% 2/1/17 (FGIC Insured) | 1,015,000 | 1,077,169 | ||
Jackson County Central Independent School District #2895 5% 2/1/21 (Pre-Refunded to 2/1/12 @ 100) (c) | 1,220,000 | 1,287,747 | ||
Lake Superior Independent School District #381 Series A: | ||||
5% 4/1/15 (Pre-Refunded to 4/1/13 @ 100) (c) | 1,970,000 | 2,097,695 | ||
5% 4/1/16 (Pre-Refunded to 4/1/13 @ 100) (c) | 2,065,000 | 2,198,853 | ||
5% 4/1/17 (Pre-Refunded to 4/1/13 @ 100) (c) | 2,165,000 | 2,305,335 | ||
5% 4/1/18 (Pre-Refunded to 4/1/13 @ 100) (c) | 1,260,000 | 1,341,673 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
Lakeville Independent School District #194 Series A, 5% 2/1/22 (FGIC Insured) (Pre-Refunded to 2/1/13 @ 100) (c) | $ 1,000,000 | $ 1,069,430 | ||
Mankato Independent School District #77 Series A, 5% 2/1/12 (FSA Insured) | 1,000,000 | 1,027,720 | ||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.: | ||||
(Health Partners Oblig. Group Proj.): | ||||
5.875% 12/1/29 | 800,000 | 858,280 | ||
6% 12/1/19 | 2,915,000 | 3,222,999 | ||
(Healthspan Corp. Proj.) Series A, 4.75% 11/15/18 (AMBAC Insured) | 4,500,000 | 4,502,025 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Series 13, 5.25% 1/1/11 (b) | 2,840,000 | 2,941,303 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 1999 A, 5.125% 1/1/31 (FGIC Insured) | 3,375,000 | 3,484,080 | ||
Series 2001 C: | ||||
5.25% 1/1/32 (FGIC Insured) | 2,020,000 | 2,122,192 | ||
5.5% 1/1/16 (FGIC Insured) | 2,500,000 | 2,680,900 | ||
Series 2005 C, 5% 1/1/31 (FGIC Insured) | 2,090,000 | 2,201,063 | ||
Series A: | ||||
5% 1/1/19 (AMBAC Insured) | 3,500,000 | 3,582,810 | ||
5% 1/1/35 (AMBAC Insured) | 8,500,000 | 8,928,145 | ||
Series B: | ||||
5.25% 1/1/11 (AMBAC Insured) (b) | 3,475,000 | 3,556,350 | ||
5.4% 1/1/09 (FGIC Insured) (b) | 1,375,000 | 1,417,873 | ||
5.625% 1/1/13 (FGIC Insured) (b) | 1,000,000 | 1,044,360 | ||
Minneapolis Art Ctr. Facilities Rev. (Walker Art Ctr. Proj.) 5.125% 7/1/21 | 1,250,000 | 1,309,900 | ||
Minneapolis Cmnty. Dev. Agcy. Tax Increment Rev. 0% 9/1/08 (MBIA Insured) | 4,600,000 | 4,330,762 | ||
Minneapolis Gen. Oblig. (Sports Arena Proj.) 5.125% 10/1/20 | 2,565,000 | 2,614,453 | ||
Minneapolis Health Care Sys. Rev.: | ||||
(Allina Health Sys. Proj.) Series 2002 A, 6% 11/15/18 | 2,655,000 | 2,935,793 | ||
(Health Care Sys. Proj.): | ||||
Series B, 5% 5/15/09 (MBIA Insured) | 3,180,000 | 3,276,259 | ||
Series D, 5% 11/15/34 (AMBAC Insured) | 5,120,000 | 5,420,288 | ||
Minneapolis Spl. School District #1: | ||||
Series A, 5% 2/1/17 (FSA Insured) | 2,000,000 | 2,146,320 | ||
5% 2/1/15 (MBIA Insured) | 1,020,000 | 1,081,302 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
Minneapolis Spl. School District #1 Ctfs. of Prtn. 5.5% 2/1/21 (MBIA Insured) (Pre-Refunded to 2/1/09 @ 100) (c) | $ 1,305,000 | $ 1,351,197 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Health Care Sys. Proj.) Series A, 6.375% 11/15/29 | 90,000 | 99,473 | ||
Minnesota Gen. Oblig.: | ||||
(Duluth Arpt. Proj.) Series B, 6.25% 8/1/14 (b) | 900,000 | 900,720 | ||
5% 8/1/16 | 3,500,000 | 3,732,680 | ||
5% 8/1/18 | 10,775,000 | 11,553,055 | ||
5% 11/1/24 | 9,155,000 | 9,783,399 | ||
5.25% 8/1/13 | 755,000 | 785,729 | ||
5.5% 6/1/17 | 2,150,000 | 2,276,313 | ||
Minnesota Higher Ed. Facilities Auth. Rev.: | ||||
(Hamline Univ. Proj.) Series 5B, 5.95% 10/1/19 | 600,000 | 628,620 | ||
(Saint John's Univ. Proj.) 5% 10/1/08 | 1,000,000 | 1,021,680 | ||
(Univ. of St. Thomas Proj.) Series 6I, 5% 4/1/23 | 1,000,000 | 1,065,420 | ||
Minnesota Muni. Pwr. Agcy. Elec. Rev. 5.25% 10/1/21 | 5,450,000 | 5,927,093 | ||
Minnesota Pub. Facilities Auth. Wtr. Poll. Cont. Rev. 5% 3/1/16 | 295,000 | 295,602 | ||
Minnesota Retirement Sys. Bldg. Rev.: | ||||
5.55% 6/1/14 | 590,000 | 626,769 | ||
5.6% 6/1/15 | 615,000 | 652,275 | ||
5.65% 6/1/16 | 625,000 | 665,525 | ||
5.7% 6/1/17 | 900,000 | 955,332 | ||
5.75% 6/1/18 | 975,000 | 1,035,850 | ||
5.75% 6/1/19 | 1,050,000 | 1,114,838 | ||
5.8% 6/1/20 | 1,000,000 | 1,063,010 | ||
5.875% 6/1/22 | 2,425,000 | 2,581,146 | ||
Minnesota State Colleges & Univs. Board of Trustees Rev. Series A, 5% 10/1/18 (MBIA Insured) | 1,465,000 | 1,588,968 | ||
Mounds View Independent School District #621 Series 2000 A, 5.375% 2/1/24 (Pre-Refunded to 2/1/11 @ 100) (c) | 3,000,000 | 3,181,140 | ||
North St. Paul-Maplewood-Oakdale Independent School District 622 Series B: | ||||
5% 2/1/17 (FSA Insured) | 1,525,000 | 1,670,272 | ||
5% 8/1/17 (FSA Insured) | 1,575,000 | 1,725,035 | ||
Northeast Metropolitan Intermediate School District #916 Ctfs. of Prtn. 5% 1/1/13 | 1,000,000 | 1,057,720 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev.: | ||||
5.25% 1/1/13 (FSA Insured) | 1,000,000 | 1,048,880 | ||
5.375% 1/1/14 (FSA Insured) | 8,400,000 | 8,827,224 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
Northfield Hosp. Rev.: | ||||
5.375% 11/1/26 | $ 1,000,000 | $ 1,052,560 | ||
5.5% 11/1/16 | 1,025,000 | 1,106,426 | ||
Osseo Independent School District #279: | ||||
(School Bldg. Proj.): | ||||
Series 2000 A, 5.25% 2/1/21 (Pre-Refunded to 8/1/10 @ 100) (c) | 2,625,000 | 2,757,300 | ||
Series A: | ||||
5.75% 2/1/11 (Pre-Refunded to 8/1/10 @ 100) (c) | 2,420,000 | 2,582,116 | ||
5.75% 2/1/12 (Pre-Refunded to 8/1/10 @ 100) (c) | 3,100,000 | 3,303,391 | ||
Series A, 5.25% 2/1/14 (FSA Insured) | 2,100,000 | 2,256,324 | ||
Series B, 5% 2/1/13 | 2,000,000 | 2,076,620 | ||
Owatonna Pub. Utils. Commission Pub. Utils. Rev.: | ||||
5% 1/1/11 (AMBAC Insured) | 720,000 | 756,346 | ||
5% 1/1/13 (AMBAC Insured) | 800,000 | 855,432 | ||
5% 1/1/15 (AMBAC Insured) | 715,000 | 763,355 | ||
Prior Lake Ind. School District #719 Series 2000, 5.5% 2/1/15 (FSA Insured) (Pre-Refunded to 2/1/10 @ 100) (c) | 900,000 | 948,789 | ||
Ramsey County Gen. Oblig. Series A, 5% 2/1/18 | 1,530,000 | 1,638,140 | ||
Robbinsdale Independent School District #281: | ||||
5% 2/1/16 (FSA Insured) | 2,410,000 | 2,550,262 | ||
5% 2/1/16 (Pre-Refunded to 2/1/12 @ 100) (c) | 1,015,000 | 1,071,363 | ||
5% 2/1/17 (FSA Insured) | 2,535,000 | 2,680,129 | ||
5% 2/1/18 (FSA Insured) | 2,520,000 | 2,659,507 | ||
Rochester Health Care Facilities Rev.: | ||||
(Mayo Foundation Proj.): | ||||
Series A, 5.5% 11/15/27 | 4,755,000 | 4,907,017 | ||
5% 11/15/36 | 2,000,000 | 2,102,160 | ||
(Mayo Foundation/Mayo Med. Ctr. Proj.) Series I, 5.9% 11/15/09 | 1,000,000 | 1,059,770 | ||
Roseville Independent School District #623 (School District Cr. Enhancement Prog.) Series A, 5% 2/1/15 (FSA Insured) | 400,000 | 420,108 | ||
Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A: | ||||
5.75% 5/1/26 (FSA Insured) | 7,020,000 | 7,493,990 | ||
5.875% 5/1/30 (FSA Insured) | 4,000,000 | 4,285,520 | ||
6.25% 5/1/20 (FSA Insured) | 2,760,000 | 2,993,524 | ||
Saint Cloud Hosp. Facilities Rev. (Saint Cloud Hosp. Proj.) Series B, 5% 7/1/20 (AMBAC Insured) | 1,000,000 | 1,010,530 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
Saint Louis Park Health Care Facilities Rev. (Park Nicollet Health Services Proj.) Series B, 5.5% 7/1/25 | $ 2,000,000 | $ 2,152,320 | ||
Saint Louis Park Independent School District #283 5.65% 2/1/16 (Pre-Refunded to 2/1/09 @ 100) (c) | 2,630,000 | 2,730,913 | ||
Saint Michael Independent School District #885 5% 2/1/27 (Pre-Refunded to 2/1/12 @ 100) (c) | 5,500,000 | 5,805,415 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev.: | ||||
(Healthpartners Oblig. Group Proj.): | ||||
5% 5/15/16 | 300,000 | 317,217 | ||
5.25% 5/15/17 | 325,000 | 349,320 | ||
5.25% 5/15/36 | 1,000,000 | 1,052,640 | ||
(Regions Hosp. Proj.) 5.3% 5/15/28 | 1,250,000 | 1,273,238 | ||
Saint Paul Hsg. & Redev. Auth. Hosp. Rev. (Healtheast Proj.) 6% 11/15/30 | 2,000,000 | 2,197,120 | ||
Saint Paul Independent School District #625: | ||||
Series 2000 A, 5.5% 2/1/21 (Pre-Refunded to 2/1/10 @ 100) (c) | 1,060,000 | 1,113,996 | ||
Series A, 5% 2/1/17 (FSA Insured) | 220,000 | 234,194 | ||
Series B: | ||||
5% 2/1/16 (FSA Insured) | 1,025,000 | 1,111,295 | ||
5% 2/1/17 (FSA Insured) | 1,300,000 | 1,402,882 | ||
5% 2/1/18 (FSA Insured) | 395,000 | 419,605 | ||
Series C, 5% 2/1/21 | 1,000,000 | 1,055,830 | ||
Saint Paul Port Auth. Energy Park Tax Increment Rev. 5% 2/1/08 (Escrowed to Maturity) (c) | 2,500,000 | 2,537,825 | ||
Saint Paul Port Auth. Lease Rev.: | ||||
(HealthEast Midway Campus Proj.) Series 2003 A, 5.75% 5/1/25 | 2,000,000 | 2,094,860 | ||
(Regions Hosp. Package Proj.) Series 1: | ||||
5% 8/1/12 (a) | 410,000 | 420,517 | ||
5% 8/1/13 (a) | 430,000 | 442,264 | ||
5% 8/1/14 (a) | 455,000 | 467,608 | ||
5% 8/1/15 (a) | 480,000 | 493,704 | ||
5% 8/1/16 (a) | 500,000 | 514,120 | ||
Series 2003 11, 5.25% 12/1/20 | 3,000,000 | 3,229,920 | ||
Series 2003 12: | ||||
5.125% 12/1/27 | 5,000,000 | 5,299,250 | ||
5.25% 12/1/18 | 3,685,000 | 3,972,025 | ||
Shakopee Health Care Facilities Rev. (Saint Francis Reg'l. Med. Ctr. Proj.) 5.25% 9/1/34 | 2,520,000 | 2,646,126 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Minnesota - continued | ||||
South Washington County Independent School District #833 Series A: | ||||
5.4% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (c) | $ 3,925,000 | $ 4,113,636 | ||
5.5% 2/1/19 (Pre-Refunded to 2/1/10 @ 100) (c) | 1,000,000 | 1,050,940 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.: | ||||
Series 1994 A, 0% 1/1/21 (MBIA Insured) | 14,670,000 | 8,078,182 | ||
Series 2002 A, 5% 1/1/12 (AMBAC Insured) | 2,660,000 | 2,823,750 | ||
Series A: | ||||
0% 1/1/19 (MBIA Insured) | 5,210,000 | 3,153,821 | ||
5.25% 1/1/15 (AMBAC Insured) | 1,000,000 | 1,100,580 | ||
5.25% 1/1/16 (AMBAC Insured) | 4,360,000 | 4,830,706 | ||
Spring Lake Park Ind. School District #16 Series B: | ||||
5% 2/1/15 (MBIA Insured) | 2,085,000 | 2,232,368 | ||
5% 2/1/16 (MBIA Insured) | 2,230,000 | 2,382,621 | ||
5% 2/1/17 (MBIA Insured) | 2,400,000 | 2,554,848 | ||
Suburban Hennepin Reg'l. Park District 5% 2/1/12 | 1,000,000 | 1,027,720 | ||
Univ. of Minnesota Spl. Purp. Rev. 5% 8/1/29 | 4,000,000 | 4,272,800 | ||
Virginia Hsg. & Redev. Auth. Health Care Facility Lease Rev. 5.25% 10/1/25 | 440,000 | 457,794 | ||
Washington County Gen. Oblig. 5.5% 2/1/21 (Pre-Refunded to 2/1/10 @ 100) (c) | 1,450,000 | 1,523,863 | ||
Watertown Independent School District #111 Series A, 5% 2/1/22 (FSA Insured) | 1,495,000 | 1,602,580 | ||
Wayzata Ind. School District #284 Series B, 5% 2/1/16 (FSA Insured) | 1,005,000 | 1,089,611 | ||
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev. Series A: | ||||
5% 1/1/16 (FSA Insured) | 1,000,000 | 1,089,080 | ||
5% 1/1/30 (MBIA Insured) | 3,000,000 | 3,142,140 | ||
6.375% 1/1/16 (Escrowed to Maturity) (c) | 1,320,000 | 1,453,426 | ||
324,018,837 | ||||
Puerto Rico - 2.5% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Series Y, 5.5% 7/1/36 (FSA Insured) | 2,680,000 | 3,017,439 | ||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A, 5.5% 10/1/40 (Escrowed to Maturity) (c) | 845,000 | 900,119 | ||
Municipal Bonds - continued | ||||
Principal | Value | |||
Puerto Rico - continued | ||||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series HH, 5.25% 7/1/29 (FSA Insured) | $ 3,700,000 | $ 3,918,781 | ||
Puerto Rico Govt. Dev. Bank Series B, 5% 12/1/12 | 500,000 | 528,215 | ||
8,364,554 |
TOTAL INVESTMENT PORTFOLIO - 99.4% (Cost $323,864,985) | 333,894,514 | ||
NET OTHER ASSETS - 0.6% | 2,060,941 | ||
NET ASSETS - 100% | $ 335,955,455 |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(c) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 32.9% |
Health Care | 18.8% |
Escrowed/Pre-Refunded | 17.4% |
Electric Utilities | 14.4% |
Transportation | 8.7% |
Others* (individually less than 5%) | 7.8% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
December 31, 2006 | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $323,864,985) | $ 333,894,514 | |
Cash | 43,845 | |
Receivable for fund shares sold | 262,730 | |
Interest receivable | 5,123,768 | |
Prepaid expenses | 1,677 | |
Other receivables | 9,399 | |
Total assets | 339,335,933 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 2,340,600 | |
Payable for fund shares redeemed | 521,928 | |
Distributions payable | 310,497 | |
Accrued management fee | 103,722 | |
Other affiliated payables | 59,097 | |
Other payables and accrued expenses | 44,634 | |
Total liabilities | 3,380,478 | |
Net Assets | $ 335,955,455 | |
Net Assets consist of: | ||
Paid in capital | $ 325,843,432 | |
Undistributed net investment income | 105,307 | |
Accumulated undistributed net realized gain (loss) on investments | (22,813) | |
Net unrealized appreciation (depreciation) on investments | 10,029,529 | |
Net Assets, for 29,574,771 shares outstanding | $ 335,955,455 | |
Net Asset Value, offering price and redemption price per share ($335,955,455 ÷ 29,574,771 shares) | $ 11.36 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Year ended December 31, 2006 | ||
Investment Income | ||
Interest | $ 15,211,762 | |
Expenses | ||
Management fee | $ 1,247,235 | |
Transfer agent fees | 267,988 | |
Accounting fees and expenses | 84,290 | |
Custodian fees and expenses | 5,674 | |
Independent trustees' compensation | 1,292 | |
Registration fees | 23,340 | |
Audit | 51,644 | |
Legal | 8,909 | |
Miscellaneous | 3,647 | |
Total expenses before reductions | 1,694,019 | |
Expense reductions | (98,886) | 1,595,133 |
Net investment income | 13,616,629 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 2,076,668 | |
Futures contracts | 1,082 | |
Total net realized gain (loss) | 2,077,750 | |
Change in net unrealized appreciation (depreciation) on investment securities | (1,933,906) | |
Net gain (loss) | 143,844 | |
Net increase (decrease) in net assets resulting from operations | $ 13,760,473 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 13,616,629 | $ 14,107,143 |
Net realized gain (loss) | 2,077,750 | 1,314,751 |
Change in net unrealized appreciation (depreciation) | (1,933,906) | (6,375,155) |
Net increase (decrease) in net assets resulting | 13,760,473 | 9,046,739 |
Distributions to shareholders from net investment income | (13,592,533) | (14,107,348) |
Distributions to shareholders from net realized gain | (1,917,084) | (1,151,446) |
Total distributions | (15,509,617) | (15,258,794) |
Share transactions | 39,438,182 | 47,316,112 |
Reinvestment of distributions | 11,156,135 | 10,864,679 |
Cost of shares redeemed | (55,909,894) | (64,418,207) |
Net increase (decrease) in net assets resulting from share transactions | (5,315,577) | (6,237,416) |
Redemption fees | 3,930 | 4,497 |
Total increase (decrease) in net assets | (7,060,791) | (12,444,974) |
Net Assets | ||
Beginning of period | 343,016,246 | 355,461,220 |
End of period (including undistributed net investment income of $105,307 and undistributed net investment income of $81,719, respectively) | $ 335,955,455 | $ 343,016,246 |
Other Information Shares | ||
Sold | 3,470,661 | 4,095,080 |
Issued in reinvestment of distributions | 981,407 | 942,835 |
Redeemed | (4,923,898) | (5,592,973) |
Net increase (decrease) | (471,830) | (555,058) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, | $ 11.42 | $ 11.62 | $ 11.69 | $ 11.62 | $ 11.19 |
Income from Investment Operations | |||||
Net investment income B | .459 | .460 | .458 | .467 | .509 |
Net realized and unrealized gain (loss) | .004 | (.162) | (.012) | .133 | .431 |
Total from investment operations | .463 | .298 | .446 | .600 | .940 |
Distributions from net investment income | (.458) | (.460) | (.459) | (.464) | (.510) |
Distributions from net realized gain | (.065) | (.038) | (.057) | (.066) | - |
Total distributions | (.523) | (.498) | (.516) | (.530) | (.510) |
Redemption fees added to paid | - | - | - | - | - |
Net asset value, end of period | $ 11.36 | $ 11.42 | $ 11.62 | $ 11.69 | $ 11.62 |
Total Return A | 4.15% | 2.61% | 3.92% | 5.27% | 8.57% |
Ratios to Average Net Assets C | |||||
Expenses before reductions | .50% | .51% | .51% | .51% | .51% |
Expenses net of fee waivers, | .50% | .51% | .51% | .51% | .51% |
Expenses net of all reductions | .47% | .48% | .49% | .49% | .49% |
Net investment income | 4.04% | 3.99% | 3.95% | 4.00% | 4.45% |
Supplemental Data | |||||
Net assets, end of period | $ 335,955 | $ 343,016 | $ 355,461 | $ 343,880 | $ 344,435 |
Portfolio turnover rate | 15% | 15% | 12% | 15% | 25% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2006
1. Significant Accounting Policies.
Fidelity Minnesota Municipal Income Fund (the Fund) is a non-diversified fund of Fidelity Municipal Trust (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 Massachusetts business trust. The Fund may be affected by economic and political developments in the state of Minnesota. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, market discount, deferred trustees compensation and losses deferred due to futures transactions.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 10,342,647 | |
Unrealized depreciation | (258,124) | |
Net unrealized appreciation (depreciation) | 10,084,523 | |
Undistributed ordinary income | 15,607 | |
Cost for federal income tax purposes | $ 323,809,991 |
The tax character of distributions paid was as follows:
December 31, 2006 | December 31, 2005 | |
Tax-exempt Income | $ 13,592,533 | $ 14,107,348 |
Long-term Capital Gains | 1,917,084 | 1,151,446 |
Total | $ 15,509,617 | $ 15,258,794 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. Certain Funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's Schedule of Investments. Certain Funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain
Annual Report
2. Operating Policies - continued
Futures Contracts - continued
percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
3. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $48,773,604 and $53,112,260, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Fund. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the Fund's transfer and shareholder servicing agent and accounting functions. The Fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the transfer agent fees were equivalent to an annual rate of .08% of average net assets.
Annual Report
Notes to Financial Statements - continued
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $767 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
6. Expense Reductions.
Through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $5,674 and $93,212, respectively.
7. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Minnesota Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Minnesota Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2006, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Minnesota Municipal Income Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 12, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Each of the Trustees oversees 348 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (76) | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). | |
Robert L. Reynolds (54) | |
Year of Election or Appointment: 2003 Mr. Reynolds is President and a Director of FMR (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and FMR Co., Inc. (2005-present). Mr. Reynolds also serves as Vice Chairman (2006-present), a Director (2003-present), and Chief Operating Officer of FMR Corp. and a Director of Strategic Advisers, Inc. (2005-present). He also serves on the Board at Fidelity Investments Canada, Ltd. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (58) | |
Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). | |
Albert R. Gamper, Jr. (64) | |
Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. | |
George H. Heilmeier (70) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. | |
James H. Keyes (66) | |
Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). | |
Marie L. Knowles (60) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (62) | |
Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. | |
Cornelia M. Small (62) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (67) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), and Metalmark Capital (private equity investment firm, 2005-present). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (67) | |
Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (62) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. | |
Kimberley H. Monasterio (43) | |
Year of Election or Appointment: 2007 President and Treasurer of Minnesota Municipal Income. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
Boyce I. Greer (50) | |
Year of Election or Appointment: 2006 Vice President of Minnesota Municipal Income. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002). | |
David L. Murphy (58) | |
Year of Election or Appointment: 2005 Vice President of Minnesota Municipal Income. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). | |
Thomas J. Silvia (45) | |
Year of Election or Appointment: 2005 Vice President of Minnesota Municipal Income. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present), certain Balanced Funds (2005-present), certain Asset Allocation Funds (2005-present), and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004). | |
Christine Thompson (48) | |
Year of Election or Appointment: 1998 Vice President of Minnesota Municipal Income. Ms. Thompson also serves as Vice President of other funds advised by FMR. Prior to assuming her current responsibilities, Ms. Thompson worked as an analyst and manager. | |
Eric D. Roiter (58) | |
Year of Election or Appointment: 1998 Secretary of Minnesota Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). | |
Stuart Fross (47) | |
Year of Election or Appointment: 2003 Assistant Secretary of Minnesota Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003-present), Vice President and Secretary of FDC (2005-present), and is an employee of FMR. | |
R. Stephen Ganis (40) | |
Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Minnesota Municipal Income. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). | |
Joseph B. Hollis (58) | |
Year of Election or Appointment: 2006 Chief Financial Officer of Minnesota Municipal Income. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). | |
Kenneth A. Rathgeber (59) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Minnesota Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
Bryan A. Mehrmann (45) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Minnesota Municipal Income. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). | |
Kenneth B. Robins (37) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Minnesota Municipal Income. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). | |
Robert G. Byrnes (40) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Minnesota Municipal Income. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). | |
John H. Costello (60) | |
Year of Election or Appointment: 1986 Assistant Treasurer of Minnesota Municipal Income. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (52) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Minnesota Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (51) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Minnesota Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Gary W. Ryan (48) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Minnesota Municipal Income. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). | |
Salvatore Schiavone (41) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Minnesota Municipal Income. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2006, $1,918,120, or, if subsequently determined to be different, the net capital gain of such year.
During fiscal year ended 2006, 100% of the fund's income dividends was free from federal income tax, and 3.19% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2007 of amounts for use in preparing 2006 income tax returns.
Annual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on January 18, 2006. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To elect a Board of Trustees. A | ||
# of | % of | |
Dennis J. Dirks | ||
Affirmative | 4,012,578,790.76 | 95.238 |
Withheld | 200,653,306.55 | 4.762 |
TOTAL | 4,213,232,097.31 | 100.000 |
Albert R. Gamper, Jr. | ||
Affirmative | 4,015,643,707.84 | 95.310 |
Withheld | 197,588,389.47 | 4.690 |
TOTAL | 4,213,232,097.31 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,004,345,809.00 | 95.042 |
Withheld | 208,886,288.31 | 4.958 |
TOTAL | 4,213,232,097.31 | 100.000 |
George H. Heilmeier | ||
Affirmative | 4,008,127,523.93 | 95.132 |
Withheld | 205,104,573.38 | 4.868 |
TOTAL | 4,213,232,097.31 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 3,993,175,527.66 | 94.777 |
Withheld | 220,056,569.65 | 5.223 |
TOTAL | 4,213,232,097.31 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 3,987,333,615.26 | 94.638 |
Withheld | 225,898,482.05 | 5.362 |
TOTAL | 4,213,232,097.31 | 100.000 |
Stephen P. Jonas | ||
Affirmative | 4,010,007,680.52 | 95.177 |
Withheld | 203,224,416.79 | 4.823 |
TOTAL | 4,213,232,097.31 | 100.000 |
# of | % of | |
Marie L. Knowles | ||
Affirmative | 4,010,231,303.96 | 95.182 |
Withheld | 203,000,793.35 | 4.818 |
TOTAL | 4,213,232,097.31 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,009,136,177.44 | 95.156 |
Withheld | 204,095,919.87 | 4.844 |
TOTAL | 4,213,232,097.31 | 100.000 |
William O. McCoy | ||
Affirmative | 4,001,996,735.35 | 94.986 |
Withheld | 211,235,361.96 | 5.014 |
TOTAL | 4,213,232,097.31 | 100.000 |
Robert L. Reynolds | ||
Affirmative | 4,010,560,206.65 | 95.190 |
Withheld | 202,671,890.66 | 4.810 |
TOTAL | 4,213,232,097.31 | 100.000 |
Cornelia M. Small | ||
Affirmative | 4,011,161,760.21 | 95.204 |
Withheld | 202,070,337.10 | 4.796 |
TOTAL | 4,213,232,097.31 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,001,217,912.57 | 94.968 |
Withheld | 212,014,184.74 | 5.032 |
TOTAL | 4,213,232,097.31 | 100.000 |
Kenneth L. Wolfe | ||
Affirmative | 4,011,439,868.05 | 95.211 |
Withheld | 201,792,229.26 | 4.789 |
TOTAL | 4,213,232,097.31 | 100.000 |
A Denotes trust-wide proposal and voting results. |
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* 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.
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
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California
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1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
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Indiana
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Kansas
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Maine
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Portland, ME
Maryland
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Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
238 Main Street
Cambridge, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Annual Report
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Ann Arbor, MI
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Minnesota
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Missouri
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Nevada
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New Jersey
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56 South Street
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396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
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New York
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1271 Avenue of the Americas
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350 Park Avenue
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200 Fifth Avenue
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733 Third Avenue
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799 Central Park Avenue
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North Carolina
4611 Sharon Road
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7011 Fayetteville Road
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Ohio
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28699 Chagrin Boulevard
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Oregon
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Pennsylvania
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Houston, TX
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Irving, TX
6005 West Park Boulevard
Plano, TX
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San Antonio, TX
1576 East Southlake Blvd.
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19740 IH 45 North
Spring, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
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Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
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Fidelity®
Municipal Income
Fund
Annual Report
December 31, 2006
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
We have seen consistently strong performance from stocks and bonds of late, and some relief in energy prices, but the housing market slowdown bears watching for how it might affect the consumer. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2006 | Past 1 | Past 5 | Past 10 |
Fidelity® Municipal Income Fund | 4.78% | 5.86% | 5.88% |
$10,000 Over 10 Years
Let's say, hypothetically, that $10,000 was invested in Fidelity® Municipal Income Fund on December 31, 1996. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Christine Thompson, Portfolio Manager of Fidelity® Municipal Income Fund
Growing investor demand and a strong second-half rally helped municipal bonds post solid returns and take their place as one of the best performing investment-grade debt classes for the year ending December 31, 2006. Throughout roughly the first six months of the period, muni bond prices declined as the Federal Reserve Board raised short-term interest rates to return them to a more "neutral level" and fend off inflation. Beginning in mid-summer 2006, however, munis rebounded amid hopes that the Fed would pause its rate hike campaign. Those hopes were eventually actualized when the central bank left rates unchanged at its August, September, October and December Open Market Committee meetings. Demand - which was amplified by non-traditional investors such as hedge funds - increased substantially, as investors sought out munis for their attractive after-tax yields. Investors also were drawn to the fact that unlike long-term Treasury bonds, which generally yielded less than short-term Treasuries throughout much of the period, long-term rates for munis were higher than short rates, giving investors the opportunity to lock in attractive long-term yields. Against this backdrop, the Lehman Brothers® Municipal Bond Index - a performance measure of approximately 34,000 investment-grade, fixed-rate, tax-exempt bonds - returned 4.84%. In comparison, the overall taxable bond market, as measured by the Lehman Brothers Aggregate Bond Index, returned 4.33%.
During the past year, Municipal Income Fund gained 4.78% and the Lehman Brothers 3 Plus Year Municipal Bond Index gained 5.05%. The fund's performance relative to the index was helped by its overweighting in lower-quality investment-grade bonds - particularly in the hospital and electric utility segments. Thanks largely to investors' appetite for high-yielding securities, lower-quality securities generally outpaced higher-quality munis. My decision to underweight housing bonds helped as well, as they lagged other sectors on a duration-adjusted basis due to prepayment concerns. Also aiding the fund's returns was its larger-than-index stake in bonds that were prerefunded, a process that helped boost the bonds' returns. My overweighting in premium bonds - which trade above their face value - detracted from results, because they underperformed discount bonds, which sell below face value. I kept the fund's duration - meaning its interest rate sensitivity - in line with the index, a strategy that had no meaningful impact on performance.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2006 to December 31, 2006).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Shareholder Expense Example - continued
Beginning | Ending | Expenses Paid | |
Actual | $ 1,000.00 | $ 1,045.90 | $ 2.37 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,022.89 | $ 2.35 |
* Expenses are equal to the Fund's annualized expense ratio of .46%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes
Top Five States as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
New York | 13.6 | 11.4 |
Illinois | 13.2 | 12.4 |
California | 13.0 | 12.6 |
Texas | 12.9 | 13.1 |
Massachusetts | 6.7 | 7.0 |
Top Five Sectors as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
General Obligations | 37.6 | 36.0 |
Electric Utilities | 11.2 | 11.4 |
Escrowed/Pre-Refunded | 9.8 | 9.4 |
Special Tax | 9.7 | 8.3 |
Transportation | 8.8 | 9.9 |
Average Years to Maturity as of December 31, 2006 | ||
6 months ago | ||
Years | 15.4 | 15.2 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2006 | ||
6 months ago | ||
Years | 6.6 | 6.8 |
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 this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | AAA 67.0% | ![]() | AAA 65.4% | ||||
![]() | AA,A 26.9% | ![]() | AA,A 26.8% | ||||
![]() | BBB 6.1% | ![]() | BBB 6.4% | ||||
![]() | BB and Below 0.1% | ![]() | BB and Below 0.0% | ||||
![]() | Not Rated 0.6% | ![]() | Not Rated 0.7% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's ® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ® ratings. |
*Short-term Investments and Net Other Assets are not included in the pie chart.
Annual Report
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Bonds - 100.7% | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Alabama - 0.2% | ||||
Alabama Pub. School & College Auth. Rev. Series 1999 C, 5.75% 7/1/18 | $ 2,000 | $ 2,120 | ||
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09 | 2,700 | 2,759 | ||
Birmingham Wtrwks. & Swr. Board Wtr. & Swr. Rev. Series B, 5% 1/1/43 (MBIA Insured) | 2,500 | 2,593 | ||
Jefferson County Ltd. Oblig. School Warrants Series A, 5.5% 1/1/22 | 2,900 | 3,150 | ||
10,622 | ||||
Arizona - 0.7% | ||||
Arizona School Facilities Board Ctfs. of Prtn. Series C: | ||||
5% 9/1/14 (FSA Insured) | 2,000 | 2,171 | ||
5% 9/1/15 (FSA Insured) | 1,815 | 1,961 | ||
Arizona Student Ln. Acquisition Auth. Student Ln. Rev. Sr. Series A1, 5.9% 5/1/24 (g) | 2,000 | 2,122 | ||
Arizona Tourism & Sports Auth. Tax Rev. 5.375% 7/1/21 (MBIA Insured) | 2,000 | 2,175 | ||
Chandler Indl. Dev. Auth. Indl. Dev. Rev. (Intel Corp. Proj.) 4.375%, tender 12/1/10 (d)(g) | 5,500 | 5,590 | ||
Maricopa County Indl. Dev. Auth. Hosp. Facilities Rev. (Samaritan Health Svcs. Proj.) Series A, 7% 12/1/16 (Escrowed to Maturity) (h) | 2,000 | 2,432 | ||
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.: | ||||
5% 7/1/20 (MBIA Insured) | 5,000 | 5,387 | ||
5% 7/1/29 (MBIA Insured) | 2,000 | 2,129 | ||
Scottsdale Indl. Dev. Auth. Hosp. Rev. (Scottsdale Health Care Proj.) 5.8% 12/1/31 (Pre-Refunded to 12/1/11 @ 101) (h) | 3,250 | 3,584 | ||
Tucson Gen. Oblig. Series 2002, 5% 7/1/10 | 2,585 | 2,697 | ||
Univ. of Arizona Univ. Revs. Series 2005 A: | ||||
5% 6/1/18 (AMBAC Insured) | 1,225 | 1,325 | ||
5% 6/1/31 (AMBAC Insured) | 2,000 | 2,125 | ||
33,698 | ||||
Arkansas - 0.2% | ||||
Little Rock School District Series 2001 C, 5.25% 2/1/33 (FSA Insured) | 6,500 | 6,803 | ||
North Little Rock Elec. Rev. Series A, 6.5% 7/1/10 (MBIA Insured) | 3,165 | 3,316 | ||
10,119 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
California - 13.0% | ||||
ABC Unified School District 0% 8/1/28 (FGIC Insured) | $ 3,925 | $ 1,509 | ||
Cabrillo Unified School District Series A, 0% 8/1/20 (AMBAC Insured) | 4,275 | 2,393 | ||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A: | ||||
5.5% 5/1/15 (AMBAC Insured) | 8,800 | 9,640 | ||
6% 5/1/14 (MBIA Insured) | 3,500 | 3,925 | ||
California Econ. Recovery: | ||||
Series 2004 A: | ||||
5% 7/1/12 (MBIA Insured) | 1,750 | 1,870 | ||
5.25% 7/1/12 | 3,000 | 3,235 | ||
Series A: | ||||
5% 7/1/15 (MBIA Insured) | 11,700 | 12,703 | ||
5.25% 1/1/11 | 3,700 | 3,919 | ||
5.25% 7/1/13 (MBIA Insured) | 13,800 | 15,066 | ||
5.25% 7/1/14 (FGIC Insured) | 5,100 | 5,617 | ||
California Edl. Facilities Auth. Rev. (Loyola Marymount Univ. Proj.): | ||||
0% 10/1/16 (MBIA Insured) | 2,140 | 1,448 | ||
0% 10/1/17 (MBIA Insured) | 2,050 | 1,323 | ||
0% 10/1/18 (MBIA Insured) | 1,675 | 1,032 | ||
0% 10/1/22 (MBIA Insured) | 5,000 | 2,547 | ||
California Gen. Oblig.: | ||||
Series 1999, 5.75% 12/1/12 (FGIC Insured) | 5,000 | 5,352 | ||
Series 2006, 5.75% 12/1/24 | 325 | 347 | ||
5% 3/1/15 | 7,000 | 7,569 | ||
5% 12/1/31 (MBIA Insured) | 9,300 | 9,805 | ||
5% 9/1/33 | 20,200 | 21,389 | ||
5.125% 9/1/12 | 2,000 | 2,095 | ||
5.125% 11/1/24 | 4,300 | 4,570 | ||
5.125% 2/1/26 | 2,500 | 2,650 | ||
5.25% 3/1/13 | 3,530 | 3,821 | ||
5.25% 2/1/14 | 7,600 | 8,268 | ||
5.25% 2/1/15 | 10,000 | 10,848 | ||
5.25% 2/1/15 | 8,300 | 9,004 | ||
5.25% 2/1/16 | 4,300 | 4,665 | ||
5.25% 2/1/19 | 5,620 | 6,046 | ||
5.25% 2/1/20 | 2,000 | 2,147 | ||
5.25% 2/1/24 | 4,000 | 4,272 | ||
5.25% 2/1/27 (MBIA Insured) | 3,700 | 3,957 | ||
5.25% 4/1/27 | 2,200 | 2,351 | ||
5.25% 2/1/28 | 8,500 | 9,053 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5.25% 11/1/28 | $ 4,485 | $ 4,786 | ||
5.25% 2/1/33 | 16,300 | 17,254 | ||
5.25% 12/1/33 | 15,900 | 16,953 | ||
5.25% 4/1/34 | 15,600 | 16,603 | ||
5.5% 4/1/28 | 12,470 | 13,876 | ||
5.5% 4/1/30 | 14,880 | 16,556 | ||
5.5% 11/1/33 | 39,600 | 43,362 | ||
5.625% 5/1/20 | 555 | 594 | ||
California Health Facilities Fing. Auth. Rev. (Cedars-Sinai Med. Ctr. Proj.): | ||||
5% 11/15/09 | 400 | 414 | ||
5% 11/15/13 | 1,000 | 1,063 | ||
California Hsg. Fin. Agcy. Home Mtg. Rev. Series 1983 A, 0% 2/1/15 (MBIA Insured) | 187 | 98 | ||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A1, 4.7%, tender 4/1/12 (d)(g) | 1,000 | 1,013 | ||
California Pub. Works Board Lease Rev.: | ||||
(Butterfield State Office Complex Proj.) Series 2005 A, 5.25% 6/1/30 | 14,000 | 15,001 | ||
(Various California State Univ. Projs.) Series A, 5.25% 12/1/13 | 5,000 | 5,002 | ||
Series 2005 H: | ||||
5% 6/1/16 | 6,000 | 6,456 | ||
5% 6/1/17 | 5,000 | 5,361 | ||
5% 6/1/18 | 10,300 | 11,006 | ||
Series 2005 J, 5% 1/1/17 | 6,000 | 6,459 | ||
Series B: | ||||
5.25% 11/1/24 (XL Cap. Assurance, Inc. Insured) | 1,575 | 1,719 | ||
5.25% 11/1/26 (XL Cap. Assurance, Inc. Insured) | 2,860 | 3,115 | ||
California Statewide Cmntys. Dev. Auth. Poll. Cont. Rev. (Southern California Edison Co.) 4.1%, tender 4/1/13 (XL Cap. Assurance, Inc. Insured) (d) | 5,000 | 5,082 | ||
California Statewide Cmntys. Dev. Auth. Rev.: | ||||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (d) | 3,500 | 3,493 | ||
(Kaiser Permanente Health Sys. Proj.) Series 2004 G, 2.3%, tender 5/1/07 (d) | 4,000 | 3,976 | ||
East Bay Muni. Util. District Wtr. Sys. Rev. Series 2005 A, 5% 6/1/35 (MBIA Insured) | 4,400 | 4,679 | ||
Encinitas Union School District: | ||||
0% 8/1/20 (MBIA Insured) | 3,500 | 1,959 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
California - continued | ||||
Encinitas Union School District: - continued | ||||
0% 8/1/21 (MBIA Insured) | $ 2,810 | $ 1,499 | ||
Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev.: | ||||
Series A, 5% 1/1/35 (MBIA Insured) | 5,070 | 5,210 | ||
0% 1/15/27 (a) | 2,500 | 2,297 | ||
5% 1/15/16 (MBIA Insured) | 2,800 | 2,938 | ||
5.75% 1/15/40 | 6,300 | 6,547 | ||
Golden State Tobacco Securitization Corp.: | ||||
Series 2003 A1: | ||||
5% 6/1/21 | 2,255 | 2,263 | ||
6.75% 6/1/39 | 10,340 | 11,845 | ||
Series A, 5% 6/1/45 | 35,695 | 37,039 | ||
Los Angeles Cmnty. Redev. Agcy. Lease Rev. (Vermont Manchester Social Services Proj.): | ||||
5% 9/1/18 (AMBAC Insured) | 1,000 | 1,078 | ||
5% 9/1/19 (AMBAC Insured) | 2,545 | 2,733 | ||
Los Angeles Dept. of Wtr. & Pwr. Rev. Series A1, 5% 7/1/35 (FSA Insured) | 4,000 | 4,253 | ||
Los Angeles Dept. of Wtr. & Pwr. Wtrwks. Rev.: | ||||
Series 2001 A, 5.125% 7/1/41 | 5,000 | 5,185 | ||
Series A, 5.125% 7/1/41 (MBIA Insured) | 9,985 | 10,397 | ||
Los Angeles Unified School District: | ||||
Series A, 5.5% 7/1/15 (MBIA Insured) | 6,155 | 6,823 | ||
Series F, 5% 7/1/18 (FSA Insured) | 10,000 | 10,679 | ||
Modesto Irrigation District Elec. Rev. Series A, 9.625% 1/1/11 (Escrowed to Maturity) (h) | 2,685 | 2,996 | ||
Monrovia Unified School District Series B, 0% 8/1/29 (FGIC Insured) | 4,525 | 1,679 | ||
North City West School Facilities Fing. Auth. Spl. Tax Subseries C, 5% 9/1/19 (AMBAC Insured) | 3,015 | 3,303 | ||
Oxnard Fing. Auth. Wastewtr. Rev. (Redwood Trunk Swr. and Headworks Proj.) Series A, 5% 6/1/29 (FGIC Insured) | 2,795 | 2,951 | ||
Placer County Wtr. Agcy. Rev. (Middle Fork Proj.) Series A, 3.75% 7/1/12 | 3,640 | 3,640 | ||
San Diego Unified School District (Election of 1998 Proj.) Series E2: | ||||
5.5% 7/1/25 (FSA Insured) | 10,000 | 11,889 | ||
5.5% 7/1/26 (FSA Insured) | 6,700 | 7,961 | ||
San Mateo County Cmnty. College District Series A, 0% 9/1/26 (FGIC Insured) | 5,430 | 2,295 | ||
Southern California Pub. Pwr. Auth. Rev. (Magnolia Pwr. Proj.) Series A, 5% 7/1/36 (AMBAC Insured) | 5,000 | 5,246 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
California - continued | ||||
Torrance Ctfs. of Prtn. (Refing. & Pub. Impt. Proj.) Series B, 5.25% 6/1/34 (AMBAC Insured) | $ 4,475 | $ 4,827 | ||
Union Elementary School District: | ||||
Series A, 0% 9/1/19 (FGIC Insured) | 1,750 | 1,031 | ||
Series B, 0% 9/1/22 (FGIC Insured) | 1,500 | 767 | ||
Univ. of California Revs.: | ||||
(UCLA Med. Ctr. Proj.): | ||||
Series A: | ||||
5.5% 5/15/15 (AMBAC Insured) | 2,990 | 3,292 | ||
5.5% 5/15/16 (AMBAC Insured) | 3,155 | 3,474 | ||
5.5% 5/15/17 (AMBAC Insured) | 3,325 | 3,661 | ||
5.5% 5/15/19 (AMBAC Insured) | 3,700 | 4,055 | ||
5.5% 5/15/22 (AMBAC Insured) | 1,000 | 1,091 | ||
5.5% 5/15/23 (AMBAC Insured) | 1,025 | 1,118 | ||
Series B: | ||||
5.5% 5/15/15 (AMBAC Insured) | 5,105 | 5,699 | ||
5.5% 5/15/16 (AMBAC Insured) | 6,500 | 7,257 | ||
5.5% 5/15/17 (AMBAC Insured) | 6,860 | 7,659 | ||
Series K: | ||||
5% 5/15/17 (MBIA Insured) (c) | 2,815 | 3,039 | ||
5% 5/15/20 (MBIA Insured) (c) | 10,000 | 10,691 | ||
5% 5/15/22 (c) | 1,000 | 1,064 | ||
5% 5/15/19 (MBIA Insured) (c) | 5,170 | 5,543 | ||
Val Verde Unified School District Ctfs. of Prtn. Series B, 5% 1/1/30 (FGIC Insured) | 2,200 | 2,321 | ||
609,651 | ||||
Colorado - 2.1% | ||||
Colorado Ctfs. of Prtn. (UCDHSC Fitzsimons Academic Proj.) Series B, 5% 11/1/17 (MBIA Insured) | 2,475 | 2,673 | ||
Colorado Health Facilities Auth. Retirement Hsg. Rev. (Liberty Heights Proj.) 0% 7/15/22 (Escrowed to Maturity) (h) | 9,500 | 4,872 | ||
Colorado Health Facilities Auth. Rev. Series 2001: | ||||
6.5% 11/15/31 (Pre-Refunded to 11/15/11 @ 101) (h) | 5,040 | 5,710 | ||
6.625% 11/15/26 (Pre-Refunded to 11/15/11 @ 101) (h) | 2,700 | 3,074 | ||
Colorado Springs Arpt. Rev. Series C: | ||||
0% 1/1/09 (MBIA Insured) | 1,655 | 1,534 | ||
0% 1/1/10 (MBIA Insured) | 1,500 | 1,332 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Colorado - continued | ||||
Colorado Wtr. Resources and Pwr. Dev. Auth. Wtr. Resources Rev. (Parker Wtr. and Sanitation District Proj.) Series D, 5.25% 9/1/43 (MBIA Insured) | $ 33,385 | $ 35,794 | ||
Dawson Ridge Metropolitan District #1: | ||||
Series 1992 A, 0% 10/1/22 (Escrowed to Maturity) (h) | 32,490 | 16,462 | ||
Series 1992 B, 0% 10/1/17 (Escrowed to Maturity) (h) | 7,900 | 5,040 | ||
Denver Health & Hosp. Auth. Health Care Rev. Series A, 6.25% 12/1/33 | 2,000 | 2,214 | ||
Douglas and Elbert Counties School District #RE1: | ||||
5.75% 12/15/20 (FGIC Insured) | 1,500 | 1,701 | ||
5.75% 12/15/22 (FGIC Insured) | 1,000 | 1,131 | ||
E-470 Pub. Hwy. Auth. Rev.: | ||||
Series 2000 A, 5.75% 9/1/29 (Pre-Refunded to 9/1/10 @ 102) (h) | 10,000 | 10,899 | ||
Series B, 0% 9/1/15 (MBIA Insured) | 3,600 | 2,531 | ||
Northwest Pkwy Pub. Hwy. Auth. Sr. Series A: | ||||
5.5% 6/15/15 (AMBAC Insured) | 1,000 | 1,091 | ||
5.5% 6/15/19 (AMBAC Insured) | 1,000 | 1,088 | ||
97,146 | ||||
District Of Columbia - 1.1% | ||||
District of Columbia Gen. Oblig.: | ||||
Series 2005 A, 5.25% 6/1/27 (MBIA Insured) | 13,200 | 13,554 | ||
Series B, 0% 6/1/12 (MBIA Insured) | 8,800 | 7,081 | ||
District of Columbia Rev.: | ||||
(George Washington Univ. Proj.) Series A, 5.75% 9/15/20 (MBIA Insured) | 12,600 | 13,337 | ||
(Georgetown Univ. Proj.) Series A: | ||||
5.95% 4/1/14 (MBIA Insured) | 2,000 | 2,093 | ||
6% 4/1/18 (MBIA Insured) | 13,835 | 14,476 | ||
50,541 | ||||
Florida - 2.9% | ||||
Boynton Beach Util. Sys. Rev. 5.5% 11/1/19 (FGIC Insured) | 3,300 | 3,821 | ||
City of Marco Island 5% 10/1/33 (MBIA Insured) | 2,200 | 2,310 | ||
Florida Board of Ed. Cap. Outlay Series B, 5.5% 6/1/15 (FGIC Insured) | 3,655 | 4,007 | ||
Florida Gen. Oblig. (Dept. of Trans. Right of Way Proj.) Series A, 5% 7/1/33 | 1,495 | 1,581 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Florida - continued | ||||
Highlands County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.) Series 06G: | ||||
5% 11/15/16 | $ 1,050 | $ 1,129 | ||
5.125% 11/15/18 | 1,000 | 1,078 | ||
(Adventist Health Sys./Sunbelt Obligated Group Proj.): | ||||
Series A, 5% 11/15/17 | 1,200 | 1,268 | ||
3.95%, tender 9/1/12 (d) | 14,445 | 14,394 | ||
5%, tender 11/16/09 (d) | 12,500 | 12,859 | ||
5.25% 11/15/13 (Pre-Refunded to 11/15/08 @ 101) (h) | 3,140 | 3,261 | ||
Series 06G, 5.125% 11/15/17 | 2,845 | 3,077 | ||
Jacksonville Elec. Auth. Rev.: | ||||
(Saint Johns River Proj.) Series 13 Issue 2, 5.375% 10/1/16 | 4,535 | 4,554 | ||
(Third Installment Proj.) Series 73, 6.8% 7/1/12 (Escrowed to Maturity) (h) | 2,140 | 2,314 | ||
JEA Elec. Sys. Rev. Series 3A, 5% 10/1/41 (FSA Insured) | 10,800 | 11,373 | ||
Miami-Dade County Aviation Rev. (Miami Int'l. Arpt. Proj.) Series B, 5% 10/1/37 (FGIC Insured) | 6,000 | 6,294 | ||
Miami-Dade County Edl. Facilities Auth. Rev. Series A, 5.75% 4/1/29 (AMBAC Insured) | 5,000 | 5,324 | ||
Miami-Dade County Expressway Auth. Series B, 5.25% 7/1/25 (FGIC Insured) | 2,200 | 2,387 | ||
Miami-Dade County School Board Ctfs. of Prtn.: | ||||
Series A: | ||||
5% 8/1/18 (AMBAC Insured) (c) | 4,000 | 4,278 | ||
5% 8/1/20 (AMBAC Insured) (c) | 2,500 | 2,657 | ||
5% 8/1/21 (AMBAC Insured) (c) | 5,095 | 5,402 | ||
5% 8/1/22 (AMBAC Insured) (c) | 3,325 | 3,520 | ||
5%, tender 5/1/11 (MBIA Insured) (d) | 3,600 | 3,765 | ||
Miami-Dade County School District: | ||||
5% 2/15/14 (MBIA Insured) (c) | 2,575 | 2,754 | ||
5% 2/15/15 (MBIA Insured) (c) | 8,790 | 9,474 | ||
Orange County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt Obligated Group Proj.): 5.625% 11/15/32 (Pre-Refunded to 11/15/12 @ 101) (h) | 2,000 | 2,218 | ||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev.: | ||||
6% 4/1/08 (AMBAC Insured) (g) | 5,000 | 5,110 | ||
6% 4/1/09 (AMBAC Insured) (g) | 8,090 | 8,389 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Florida - continued | ||||
Seminole County School Board Ctfs. of Prtn. Series A: | ||||
5% 7/1/16 (MBIA Insured) | $ 1,645 | $ 1,778 | ||
5% 7/1/20 (MBIA Insured) | 1,745 | 1,868 | ||
South Broward Hosp. District Rev. 5.625% 5/1/32 (MBIA Insured) | 2,630 | 2,871 | ||
Tampa Wtr. & Swr. Rev. 6% 10/1/17 (FSA Insured) | 1,000 | 1,188 | ||
Univ. of Central Florida Athletics Assoc., Inc. Ctfs. of Prtn. Series A, 5% 10/1/35 (FGIC Insured) | 1,000 | 1,053 | ||
137,356 | ||||
Georgia - 2.9% | ||||
Atlanta Wtr. & Wastewtr. Rev.: | ||||
5% 11/1/37 (FSA Insured) | 38,395 | 40,476 | ||
5% 11/1/43 (FSA Insured) | 57,750 | 60,762 | ||
Augusta Wtr. & Swr. Rev. 5.25% 10/1/39 (FSA Insured) | 12,100 | 13,140 | ||
Colquitt County Dev. Auth. Rev. Series C, 0% 12/1/21 (Escrowed to Maturity) (h) | 4,665 | 2,483 | ||
Fulton County Wtr. & Swr. Rev. 6.375% 1/1/14 (FGIC Insured) | 140 | 155 | ||
Gainesville & Hall County Hosp. Auth. Rev. Anticipation Ctfs. (Northeast Georgia Health Sys., Inc. Proj.) 5.5% 5/15/31 | 4,500 | 4,696 | ||
Richmond County Dev. Auth. Rev.: | ||||
(Southern Care Corp. Facility Proj.) Series A, 0% 12/1/21 (Escrowed to Maturity) (h) | 5,615 | 2,988 | ||
Series C, 0% 12/1/21 (Escrowed to Maturity) (h) | 2,200 | 1,171 | ||
Savannah Econ. Dev. Auth. Rev. (Southern Care Corp. Proj.) Series C, 0% 12/1/21 (Escrowed to Maturity) (h) | 17,000 | 9,047 | ||
134,918 | ||||
Hawaii - 0.5% | ||||
Hawaii Arpt. Sys. Rev.: | ||||
Series 2000 A, 5.75% 7/1/21 (FGIC Insured) | 2,640 | 2,830 | ||
Series 2000 B, 8% 7/1/11 (FGIC Insured) (g) | 9,250 | 10,774 | ||
Hawaii Gen. Oblig. Series CU, 5.75% 10/1/12 (MBIA Insured) | 2,130 | 2,286 | ||
Honolulu City & County Board of Wtr. Supply Wtr. Sys. Rev. Series B: | ||||
5% 7/1/12 (MBIA Insured) (g) | 1,690 | 1,780 | ||
5% 7/1/13 (MBIA Insured) (g) | 1,000 | 1,060 | ||
5% 7/1/14 (MBIA Insured) (g) | 1,140 | 1,215 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Hawaii - continued | ||||
Honolulu City & County Board of Wtr. Supply Wtr. Sys. Rev. Series B: - continued | ||||
5% 7/1/15 (MBIA Insured) (g) | $ 1,430 | $ 1,533 | ||
5.25% 7/1/18 (MBIA Insured) (g) | 3,205 | 3,490 | ||
24,968 | ||||
Illinois - 13.2% | ||||
Boone & Winnebago County Cmnty. Unit School District 200: | ||||
0% 1/1/21 (FGIC Insured) | 1,810 | 987 | ||
0% 1/1/22 (FGIC Insured) | 1,930 | 1,004 | ||
Chicago Board of Ed.: | ||||
(Westinghouse High School Proj.) Series C: | ||||
5.25% 12/1/19 (MBIA Insured) | 1,000 | 1,091 | ||
5.25% 12/1/20 (MBIA Insured) | 4,500 | 4,897 | ||
5.5% 12/1/23 (MBIA Insured) | 1,000 | 1,116 | ||
Series A, 0% 12/1/16 (FGIC Insured) | 3,200 | 2,138 | ||
Chicago Gen. Oblig.: | ||||
(City Colleges Proj.): | ||||
0% 1/1/14 (FGIC Insured) | 17,000 | 12,879 | ||
0% 1/1/15 (FGIC Insured) | 20,000 | 14,471 | ||
0% 1/1/26 (FGIC Insured) | 16,000 | 6,949 | ||
0% 1/1/30 (FGIC Insured) | 18,670 | 6,726 | ||
(Neighborhoods Alive 21 Prog.): | ||||
5% 1/1/28 (AMBAC Insured) | 2,000 | 2,096 | ||
5% 1/1/43 (AMBAC Insured) | 4,535 | 4,717 | ||
(Neighborhoods Alive Proj.) 5% 1/1/33 (AMBAC Insured) | 3,510 | 3,676 | ||
Series 2000 D, 5.5% 1/1/35 (FGIC Insured) | 15,000 | 15,796 | ||
Series 2004 A, 5.25% 1/1/29 (FSA Insured) | 2,500 | 2,680 | ||
Series A: | ||||
5% 1/1/34 (FSA Insured) | 10,600 | 11,129 | ||
5% 1/1/41 (Pre-Refunded to 1/1/15 @ 100) (h) | 1,300 | 1,366 | ||
5% 1/1/42 (AMBAC Insured) | 18,955 | 19,617 | ||
5.25% 1/1/22 (MBIA Insured) | 2,085 | 2,233 | ||
5.25% 1/1/33 (MBIA Insured) | 8,115 | 8,537 | ||
5.25% 1/1/33 (Pre-Refunded to 1/1/11 @ 101) (h) | 185 | 197 | ||
5.5% 1/1/38 (MBIA Insured) | 5,620 | 5,989 | ||
5.5% 1/1/38 (Pre-Refunded to 1/1/11 @ 101) (h) | 210 | 226 | ||
Series C: | ||||
5% 1/1/35 (MBIA Insured) | 3,400 | 3,568 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Chicago Gen. Oblig.: - continued | ||||
Series C: | ||||
5.7% 1/1/30 (FGIC Insured) | $ 5,760 | $ 6,152 | ||
5.5% 1/1/40 (FGIC Insured) | 5,520 | 5,848 | ||
Chicago Midway Arpt. Rev. Series B: | ||||
5.25% 1/1/13 (MBIA Insured) (g) | 2,910 | 2,941 | ||
5.25% 1/1/14 (MBIA Insured) (g) | 3,060 | 3,093 | ||
6% 1/1/08 (MBIA Insured) (g) | 2,170 | 2,216 | ||
6% 1/1/10 (MBIA Insured) (g) | 2,435 | 2,464 | ||
6.125% 1/1/11 (MBIA Insured) (g) | 2,580 | 2,611 | ||
Chicago Motor Fuel Tax Rev. Series A: | ||||
5% 1/1/33 (AMBAC Insured) | 3,810 | 3,968 | ||
5.25% 1/1/19 (AMBAC Insured) | 1,780 | 1,910 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 1999, 5.5% 1/1/11 (AMBAC Insured) (g) | 10,000 | 10,543 | ||
Series A: | ||||
5.5% 1/1/16 (AMBAC Insured) (g) | 10,770 | 10,995 | ||
5.6% 1/1/10 (AMBAC Insured) | 4,500 | 4,549 | ||
6.25% 1/1/09 (AMBAC Insured) (g) | 6,040 | 6,173 | ||
Series B: | ||||
5.25% 1/1/14 (FGIC Insured) | 2,000 | 2,174 | ||
5.75% 1/1/30 (AMBAC Insured) | 13,420 | 14,470 | ||
Chicago Park District Series A: | ||||
5.25% 1/1/18 (FGIC Insured) | 4,690 | 5,067 | ||
5.25% 1/1/19 (FGIC Insured) | 3,000 | 3,234 | ||
5.25% 1/1/20 (FGIC Insured) | 2,195 | 2,362 | ||
5.5% 1/1/19 (FGIC Insured) | 475 | 504 | ||
5.5% 1/1/20 (FGIC Insured) | 490 | 520 | ||
Chicago Spl. Trans. Rev. Series 2001: | ||||
5.25% 1/1/31 (Pre-Refunded to 1/1/27 @ 100) (h) | 11,670 | 12,259 | ||
5.5% 1/1/17 (Escrowed to Maturity) (h) | 1,135 | 1,208 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
5% 6/1/20 (AMBAC Insured) | 7,000 | 7,574 | ||
5% 6/1/21 (AMBAC Insured) | 2,600 | 2,806 | ||
Chicago Wtr. Rev. 0% 11/1/16 (AMBAC Insured) | 7,555 | 5,066 | ||
Cicero Gen. Oblig. 5.25% 12/1/26 (MBIA Insured) | 3,010 | 3,233 | ||
Cook County Gen. Oblig.: | ||||
Series B: | ||||
5% 11/15/15 (MBIA Insured) (c) | 2,500 | 2,694 | ||
5% 11/15/17 (MBIA Insured) (c) | 4,180 | 4,535 | ||
5% 11/15/19 (MBIA Insured) (c) | 2,600 | 2,803 | ||
5.25% 11/15/28 (MBIA Insured) | 1,400 | 1,516 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Cook County Gen. Oblig.: | ||||
Series C, 5% 11/15/25 (AMBAC Insured) | $ 8,400 | $ 8,835 | ||
DuPage County Forest Preserve District Rev. 0% 11/1/17 | 6,665 | 4,255 | ||
Evanston Gen. Oblig. Series C: | ||||
5.25% 1/1/16 | 1,000 | 1,071 | ||
5.25% 1/1/22 | 2,000 | 2,137 | ||
Franklin Park Village Cook County Gen. Oblig. Series B: | ||||
5% 7/1/17 (AMBAC Insured) | 1,380 | 1,474 | ||
5% 7/1/18 (AMBAC Insured) | 1,450 | 1,545 | ||
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 3.85%, tender 5/1/08 (d)(g) | 5,600 | 5,548 | ||
Hodgkins Tax Increment Rev. 5% 1/1/11 | 2,075 | 2,153 | ||
Illinois Dedicated Tax Rev. Series B, 0% 12/15/18 (AMBAC Insured) | 4,500 | 2,732 | ||
Illinois Dev. Fin. Auth. Retirement 0% 7/15/23 (Escrowed to Maturity) (h) | 24,975 | 12,152 | ||
Illinois Dev. Fin. Auth. Rev.: | ||||
(DePaul Univ. Proj.) Series 2004 C, 5.625% 10/1/17 | 2,800 | 3,081 | ||
(Revolving Fund-Master Trust Prog.): | ||||
5.5% 9/1/18 | 5,365 | 5,857 | ||
5.5% 9/1/19 | 4,405 | 4,811 | ||
Illinois Edl. Facilities Auth. Revs.: | ||||
(Northwestern Univ. Proj.) 5% 12/1/38 | 5,740 | 5,992 | ||
(Univ. of Chicago Proj.): | ||||
Series 2004 B1, 3.45%, tender 7/1/08 (d) | 3,350 | 3,337 | ||
Series 2005 A: | ||||
5.25% 7/1/41 | 755 | 798 | ||
5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (h) | 305 | 327 | ||
Series A, 5.125% 7/1/38 | 1,585 | 1,622 | ||
Illinois Fin. Auth. Gas Supply Rev. (Peoples Gas Lt. and Coke Co. Proj.) Series A, 4.3%, tender 6/1/16 (AMBAC Insured) (d) | 3,860 | 3,956 | ||
Illinois Gen. Oblig.: | ||||
First Series: | ||||
5.25% 12/1/17 (FSA Insured) | 2,260 | 2,436 | ||
5.25% 12/1/20 (FSA Insured) | 2,000 | 2,150 | ||
5.375% 12/1/14 (FSA Insured) | 5,000 | 5,438 | ||
5.375% 7/1/15 (MBIA Insured) | 3,700 | 4,011 | ||
5.5% 4/1/16 (FSA Insured) | 1,300 | 1,409 | ||
5.5% 8/1/16 (MBIA Insured) | 13,000 | 14,121 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Illinois Gen. Oblig.: - continued | ||||
First Series: | ||||
5.5% 8/1/17 (MBIA Insured) | $ 7,500 | $ 8,147 | ||
5.5% 2/1/18 (FGIC Insured) | 1,000 | 1,080 | ||
5.5% 8/1/18 (MBIA Insured) | 5,000 | 5,434 | ||
5.75% 12/1/18 (MBIA Insured) | 1,200 | 1,285 | ||
Series 2006, 5.5% 1/1/31 | 3,000 | 3,653 | ||
5.5% 4/1/17 (MBIA Insured) | 7,065 | 7,436 | ||
5.6% 4/1/21 (MBIA Insured) | 7,500 | 7,898 | ||
5.7% 4/1/16 (MBIA Insured) | 7,350 | 7,785 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Condell Med. Ctr. Proj.): | ||||
6.5% 5/15/30 | 9,000 | 9,578 | ||
7% 5/15/22 | 5,000 | 5,457 | ||
(Lake Forest Hosp. Proj.): | ||||
Series A, 6.25% 7/1/22 | 4,200 | 4,633 | ||
6% 7/1/33 | 3,775 | 4,071 | ||
(Lutheran Gen. Health Care Sys. Proj.) Series C: | ||||
6% 4/1/18 | 3,000 | 3,378 | ||
7% 4/1/14 | 1,500 | 1,758 | ||
(Riverside Health Sys. Proj.) 6.85% 11/15/29 (Pre-Refunded to 11/15/10 @ 101) (h) | 5,025 | 5,630 | ||
(Swedish American Hosp. Proj.) 6.875% 11/15/30 (Pre-Refunded to 5/15/10 @ 101) (h) | 6,965 | 7,635 | ||
6.75% 2/15/15 (Escrowed to Maturity) (h) | 1,000 | 1,096 | ||
Illinois Reg'l. Trans. Auth. Series A, 8% 6/1/17 (AMBAC Insured) | 4,500 | 5,944 | ||
Illinois Sales Tax Rev. 6% 6/15/20 | 4,600 | 4,916 | ||
Illinois Toll Hwy. Auth. Toll Hwy. Rev. Series 2006 A2, 5% 1/1/31 (FSA Insured) | 17,300 | 18,388 | ||
Kane & DeKalb Counties Cmnty. Unit School District #302 5.8% 2/1/22 (FGIC Insured) | 3,795 | 4,249 | ||
Kane, McHenry, Cook & DeKalb Counties Cmnty. Unit School District #300, Carpentersville 0% 12/1/17 (AMBAC Insured) | 3,700 | 2,359 | ||
Lake County Cmnty. High School District #117, Antioch Series B, 0% 12/1/18 (FGIC Insured) | 7,240 | 4,403 | ||
Lake County Warren Township High School District #121, Gurnee Series C: | ||||
5.5% 3/1/24 (AMBAC Insured) | 2,945 | 3,269 | ||
5.625% 3/1/21 (AMBAC Insured) | 2,505 | 2,810 | ||
5.75% 3/1/19 (AMBAC Insured) | 2,240 | 2,547 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev.: | ||||
(McCormick Place Expansion Proj.): | ||||
Series 2002 A, 5.75% 6/15/41 (MBIA Insured) | $ 26,420 | $ 29,025 | ||
Series 2002 B, 0% 6/15/20 (MBIA Insured) (a) | 2,000 | 1,690 | ||
Series A: | ||||
0% 6/15/11 (Escrowed to Maturity) (h) | 6,000 | 5,057 | ||
0% 6/15/15 (FGIC Insured) | 15,000 | 10,682 | ||
0% 6/15/19 (FGIC Insured) | 3,225 | 1,908 | ||
0% 6/15/19 (MBIA Insured) | 2,935 | 1,737 | ||
0% 6/15/20 (FGIC Insured) | 3,470 | 1,956 | ||
5.25% 12/15/10 (AMBAC Insured) | 12,950 | 13,170 | ||
6.65% 6/15/12 (FGIC Insured) | 250 | 251 | ||
Series 2002: | ||||
0% 6/15/10 (Escrowed to Maturity) (h) | 16,640 | 14,580 | ||
0% 6/15/13 (Escrowed to Maturity) (h) | 4,155 | 3,225 | ||
0% 6/15/13 (FGIC Insured) | 5,575 | 4,335 | ||
Series A: | ||||
0% 12/15/19 (MBIA Insured) | 2,115 | 1,224 | ||
5% 12/15/28 (MBIA Insured) | 2,000 | 2,095 | ||
Moline Gen. Oblig. Series A, 5.5% 2/1/17 (FGIC Insured) | 1,000 | 1,085 | ||
Univ. of Illinois Auxiliary Facilities Sys. Rev.: | ||||
Series A, 0% 4/1/21 (MBIA Insured) | 4,965 | 2,694 | ||
0% 4/1/17 (MBIA Insured) | 16,270 | 10,683 | ||
0% 4/1/20 (MBIA Insured) | 8,000 | 4,548 | ||
Will County Cmnty. Unit School District #365, Valley View 0% 11/1/17 (FSA Insured) | 3,200 | 2,047 | ||
617,652 | ||||
Indiana - 2.5% | ||||
Avon 2000 Cmnty. School Bldg. Corp. 5% 7/15/17 (FSA Insured) | 2,835 | 3,064 | ||
Clark-Pleasant 2004 School Bldg. Corp.: | ||||
5.25% 7/15/23 (FSA Insured) | 1,545 | 1,668 | ||
5.25% 7/15/25 (FSA Insured) | 1,720 | 1,852 | ||
Crown Point Multi-School Bldg. Corp. 0% 1/15/21 (MBIA Insured) | 7,480 | 4,062 | ||
Franklin Township Independent School Bldg. Corp., Marion County: | ||||
5% 7/15/24 (MBIA Insured) | 1,365 | 1,455 | ||
5.25% 7/15/17 (MBIA Insured) | 1,885 | 2,071 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Indiana - continued | ||||
GCS School Bldg. Corp. One 5% 7/15/22 (FSA Insured) | $ 1,545 | $ 1,645 | ||
Hamilton Southeastern Cumberland Campus School Bldg. Corp. 5.125% 1/15/23 (AMBAC Insured) | 1,250 | 1,319 | ||
Hammond School Bldg. Corp. 5% 7/15/16 (MBIA Insured) | 1,845 | 1,993 | ||
Hobart Bldg. Corp. 6.5% 1/15/29 (FGIC Insured) | 17,800 | 22,243 | ||
Indiana Bond Bank Series B: | ||||
5% 2/1/19 (MBIA Insured) | 1,940 | 2,059 | ||
5% 2/1/20 (MBIA Insured) | 1,635 | 1,732 | ||
Indiana Dev. Fin. Auth. Rev. 5.95% 8/1/30 (g) | 7,350 | 7,654 | ||
Indiana Dev. Fin. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.7%, tender 10/1/15 (d)(g) | 3,000 | 3,060 | ||
Indiana Health & Edl. Facilities Fing. Auth. Hosp. Rev. Series B: | ||||
5% 2/15/14 | 1,060 | 1,129 | ||
5% 2/15/15 | 1,500 | 1,602 | ||
Indiana Health Facilities Fing. Auth. Hosp. Rev. (Columbus Reg'l. Hosp. Proj.) 7% 8/15/15 (FSA Insured) | 2,500 | 2,869 | ||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series A, 5% 1/1/32 (FGIC Insured) | 2,500 | 2,638 | ||
Indiana Trans. Fin. Auth. Hwy.: | ||||
Series 1993 A, 0% 6/1/18 (AMBAC Insured) | 1,700 | 1,056 | ||
Series A, 0% 6/1/16 (AMBAC Insured) | 6,470 | 4,400 | ||
Indianapolis Arpt. Auth. Rev. Series A, 5.6% 7/1/15 (FGIC Insured) | 1,000 | 1,019 | ||
Indianapolis Local Pub. Impt. Bond Bank (Indianapolis Arpt. Auth. Proj.) Series 2006 F: | ||||
5% 1/1/16 (AMBAC Insured) (g) | 1,500 | 1,607 | ||
5% 1/1/17 (AMBAC Insured) (g) | 1,700 | 1,819 | ||
5.25% 1/1/14 (AMBAC Insured) (g) | 2,675 | 2,882 | ||
Petersburg Poll. Cont. Rev.: | ||||
(Indianapolis Pwr. & Lt. Co. Proj.) 5.9% 12/1/24 (g) | 10,000 | 10,698 | ||
5.95% 12/1/29 (g) | 2,000 | 2,139 | ||
Portage Township Multi-School Bldg. Corp.: | ||||
5.25% 7/15/17 (MBIA Insured) | 1,375 | 1,503 | ||
5.25% 7/15/22 (MBIA Insured) | 1,785 | 1,950 | ||
5.25% 7/15/24 (MBIA Insured) | 1,975 | 2,152 | ||
5.25% 7/15/25 (MBIA Insured) | 2,085 | 2,264 | ||
5.25% 1/15/29 (MBIA Insured) | 1,265 | 1,371 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Indiana - continued | ||||
Rockport Poll. Cont. Rev. (AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (d) | $ 4,400 | $ 4,476 | ||
South Harrison School Bldg. Corp. Series A: | ||||
5.25% 7/15/22 (FSA Insured) | 2,820 | 3,078 | ||
5.5% 7/15/21 (FSA Insured) | 2,675 | 2,979 | ||
Southmont School Bldg. Corp. 5% 7/15/15 (FGIC Insured) | 2,000 | 2,129 | ||
Westfield Washington Multi-School Bldg. Corp. Series A: | ||||
5% 7/15/15 (FSA Insured) | 1,360 | 1,473 | ||
5% 7/15/18 (FSA Insured) | 1,500 | 1,605 | ||
114,715 | ||||
Iowa - 0.4% | ||||
Iowa Fin. Auth. Hosp. Facilities Rev.: | ||||
6.625% 2/15/12 (Pre-Refunded to 2/15/10 @ 101) (h) | 2,000 | 2,187 | ||
6.75% 2/15/13 (Pre-Refunded to 2/15/10 @ 101) (h) | 1,000 | 1,097 | ||
6.75% 2/15/14 (Pre-Refunded to 2/15/10 @ 101) (h) | 1,280 | 1,404 | ||
6.75% 2/15/15 (Pre-Refunded to 2/15/10 @ 101) (h) | 1,000 | 1,097 | ||
6.75% 2/15/17 (Pre-Refunded to 2/15/10 @ 101) (h) | 1,000 | 1,097 | ||
Tobacco Settlement Auth. Tobacco Settlement Rev. 5.3% 6/1/25 (Pre-Refunded to 6/1/11 @ 101) (h) | 10,000 | 10,585 | ||
17,467 | ||||
Kansas - 0.4% | ||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series A, 4.75%, tender 10/1/07 (d) | 7,800 | 7,853 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Sisters of Charity of Leavenworth Health Svcs. Corp. Proj.) Series J, 6.25% 12/1/28 | 4,500 | 4,905 | ||
Topeka Combined Util. Impt. Rev. Series 2005 A: | ||||
6% 8/1/20 (XL Cap. Assurance, Inc. Insured) | 1,200 | 1,409 | ||
6% 8/1/25 (XL Cap. Assurance, Inc. Insured) | 1,100 | 1,282 | ||
6% 8/1/27 (XL Cap. Assurance, Inc. Insured) | 1,235 | 1,434 | ||
16,883 | ||||
Kentucky - 0.7% | ||||
Jefferson County Cap. Projs. Corp. Rev. (Lease Prog.) Series A, 0% 8/15/11 | 5,250 | 4,332 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Kentucky - continued | ||||
Louisville & Jefferson County Metropolitan Swr. District Swr. & Drain Sys. Rev. Series A, 5.25% 5/15/37 (FGIC Insured) | $ 15,750 | $ 17,122 | ||
Louisville & Jefferson County Reg'l. Arpt. Auth. Arpt. Sys. Rev. Series 2001 A: | ||||
5.25% 7/1/09 (FSA Insured) (g) | 1,545 | 1,596 | ||
5.5% 7/1/10 (FSA Insured) (g) | 3,800 | 3,999 | ||
Owensboro Elec. Lt. & Pwr. Rev. Series B, 0% 1/1/10 (AMBAC Insured) | 7,440 | 6,618 | ||
33,667 | ||||
Louisiana - 0.7% | ||||
Louisiana Gas & Fuel Tax Rev. Series A, 5.375% 6/1/20 (AMBAC Insured) | 3,000 | 3,223 | ||
Louisiana Gen. Oblig. Series 2003 A, 5% 5/1/20 (FGIC Insured) | 1,500 | 1,580 | ||
Monroe-West Monroe Pub. Trust Fing. Auth. Mtg. Rev. Series C, 0% 8/20/14 | 8,625 | 6,106 | ||
New Orleans Gen. Oblig.: | ||||
0% 9/1/09 (AMBAC Insured) | 16,500 | 14,882 | ||
0% 9/1/11 (AMBAC Insured) | 3,080 | 2,547 | ||
0% 9/1/13 (AMBAC Insured) | 3,350 | 2,542 | ||
0% 9/1/14 (AMBAC Insured) | 3,165 | 2,290 | ||
Tobacco Settlement Fing. Corp. Series 2001 B, 5.875% 5/15/39 | 1,000 | 1,074 | ||
34,244 | ||||
Maine - 0.1% | ||||
Maine Tpk. Auth. Tpk. Rev. 5.25% 7/1/30 (FSA Insured) | 3,000 | 3,243 | ||
Maryland - 0.3% | ||||
Baltimore Convention Ctr. Hotel Rev. Series A, 5.25% 9/1/39 (XL Cap. Assurance, Inc. Insured) | 6,000 | 6,506 | ||
Maryland Econ. Dev. Corp. (Univ. of Maryland, Baltimore County Student Hsg. Proj.): | ||||
5% 6/1/14 (CIFG North America Insured) | 1,020 | 1,102 | ||
5% 6/1/16 (CIFG North America Insured) | 1,000 | 1,093 | ||
5% 6/1/19 (CIFG North America Insured) | 1,500 | 1,624 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev.: | ||||
(Good Samaritan Hosp. Proj.): | ||||
5.75% 7/1/13 (Escrowed to Maturity) (h) | 1,605 | 1,740 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Maryland - continued | ||||
Maryland Health & Higher Edl. Facilities Auth. Rev.: - continued | ||||
(Good Samaritan Hosp. Proj.): | ||||
5.75% 7/1/13 (Escrowed to Maturity) (h) | $ 995 | $ 1,079 | ||
(Johns Hopkins Health Sys. Proj.) Series B, 5% 5/15/35 | 2,700 | 2,855 | ||
15,999 | ||||
Massachusetts - 6.7% | ||||
Massachusetts Bay Trans. Auth.: | ||||
Series 2000 A, 5.25% 7/1/30 | 1,465 | 1,537 | ||
Series A, 5% 7/1/31 (Pre-Refunded to 7/1/15 @ 100) (h) | 11,000 | 12,009 | ||
Series B, 6.2% 3/1/16 | 3,800 | 4,333 | ||
Massachusetts Ed. Ln. Auth. Ed. Ln. Rev.: | ||||
Series A Issue E, 4.9% 7/1/13 (AMBAC Insured) (g) | 2,765 | 2,820 | ||
Series B Issue E: | ||||
5.95% 7/1/07 (AMBAC Insured) (g) | 470 | 473 | ||
6.05% 7/1/08 (AMBAC Insured) (g) | 485 | 486 | ||
6.15% 7/1/10 (AMBAC Insured) (g) | 195 | 195 | ||
6.25% 7/1/11 (AMBAC Insured) (g) | 120 | 120 | ||
6.3% 7/1/12 (AMBAC Insured) (g) | 115 | 115 | ||
Massachusetts Fed. Hwy. Series 2000 A: | ||||
5.75% 6/15/11 | 10,000 | 10,727 | ||
5.75% 6/15/12 | 5,000 | 5,347 | ||
5.75% 6/15/13 | 5,000 | 5,379 | ||
Massachusetts Gen. Oblig.: | ||||
Series 2005 A, 5% 3/1/22 (Pre-Refunded to 3/1/15 @ 100) (h) | 6,500 | 7,076 | ||
Series 6D, 5% 8/1/22 | 1,465 | 1,579 | ||
Series A, 5% 3/1/21 (Pre-Refunded to 3/1/15 @ 100) (h) | 11,070 | 12,051 | ||
Series D, 5.25% 10/1/20 (Pre-Refunded to 10/1/13 @ 100) (h) | 14,000 | 15,222 | ||
Series E: | ||||
5% 11/1/22 (AMBAC Insured) | 14,500 | 15,643 | ||
5% 11/1/23 (AMBAC Insured) | 12,500 | 13,465 | ||
5% 11/1/24 (AMBAC Insured) | 13,700 | 14,757 | ||
Massachusetts Health & Edl. Facilities Auth. Rev.: | ||||
(Blood Research Institute Proj.) Series A, 6.5% 2/1/22 (i) | 3,830 | 3,833 | ||
(Massachusetts Gen. Hosp. Proj.) Series F, 6.25% 7/1/12 (AMBAC Insured) | 1,770 | 1,884 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Massachusetts - continued | ||||
Massachusetts Health & Edl. Facilities Auth. Rev.: - continued | ||||
(New England Med. Ctr. Hosp. Proj.) Series G, 5.375% 7/1/24 (MBIA Insured) | $ 3,800 | $ 3,802 | ||
(South Shore Hosp. Proj.) Series F, 5.75% 7/1/29 | 11,930 | 12,561 | ||
(Tufts Univ. Proj.) Series I, 5.5% 2/15/36 | 10,000 | 10,606 | ||
(Wellesley College Proj.) Series F, 5.125% 7/1/39 | 5,710 | 5,906 | ||
Massachusetts Indl. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series A2: | ||||
0% 8/1/08 | 5,000 | 4,713 | ||
0% 8/1/09 | 21,800 | 19,647 | ||
0% 8/1/10 | 2,000 | 1,731 | ||
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev. Series A, 5% 7/1/10 (Escrowed to Maturity) (h) | 3,010 | 3,030 | ||
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series A: | ||||
5.5% 1/1/12 (AMBAC Insured) (g) | 2,000 | 2,113 | ||
5.5% 1/1/14 (AMBAC Insured) (g) | 2,540 | 2,680 | ||
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev. Series A: | ||||
5% 8/15/23 (FSA Insured) | 29,965 | 32,061 | ||
5% 8/15/26 (FSA Insured) | 10,000 | 10,662 | ||
5% 8/15/30 (FSA Insured) | 30,000 | 31,874 | ||
Massachusetts Tpk. Auth. Metropolitan Hwy. Sys. Rev.: | ||||
Series 1999 A, 5.25% 1/1/29 (AMBAC Insured) | 14,400 | 14,897 | ||
Sr. Series A, 5.125% 1/1/23 (MBIA Insured) | 7,950 | 8,117 | ||
Massachusetts Tpk. Auth. Western Tpk. Rev. Series A, 5.55% 1/1/17 (MBIA Insured) | 9,130 | 9,580 | ||
Massachusetts Wtr. Poll. Abatement Trust Wtr. Poll. Abatement Rev. (MWRA Ln. Prog.) Series A, 5.25% 8/1/13 | 90 | 93 | ||
Route 3 North Trans. Impt. Assoc. Lease Rev. 5.75% 6/15/16 (MBIA Insured) | 4,850 | 5,159 | ||
Springfield Gen. Oblig. 5% 8/1/19 (MBIA Insured) | 7,015 | 7,546 | ||
315,829 | ||||
Michigan - 0.8% | ||||
Carman-Ainsworth Cmnty. School District 5% 5/1/18 (FSA Insured) | 2,175 | 2,336 | ||
Detroit Wtr. Supply Sys. Rev.: | ||||
5.25% 7/1/14 (MBIA Insured) | 1,600 | 1,751 | ||
5.25% 7/1/15 (MBIA Insured) | 2,380 | 2,625 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Michigan - continued | ||||
Detroit Wtr. Supply Sys. Rev.: - continued | ||||
5.25% 7/1/16 (MBIA Insured) | $ 1,685 | $ 1,870 | ||
Ferris State Univ. Rev. 5% 10/1/20 (MBIA Insured) | 3,165 | 3,361 | ||
Fowlerville Cmnty. School District 5.25% 5/1/17 (FGIC Insured) | 1,425 | 1,549 | ||
Michigan Ctfs. of Prtn. 5.75% 6/1/17 (Pre-Refunded to 6/1/10 @ 100) (h) | 1,460 | 1,557 | ||
Michigan Hosp. Fin. Auth. Hosp. Rev.: | ||||
(Mercy Health Svcs. Proj.): | ||||
Series Q, 5.375% 8/15/26 (Escrowed to Maturity) (h) | 4,750 | 4,805 | ||
Series W, 5.25% 8/15/27 (Escrowed to Maturity) (h) | 4,000 | 4,074 | ||
(Sisters of Mercy Health Corp. Proj.) Series P, 5.375% 8/15/14 (Escrowed to Maturity) (h) | 420 | 444 | ||
(Trinity Health Sys. Proj.) Series 2000 A, 6% 12/1/27 | 2,000 | 2,181 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.): | ||||
Series M, 5.25% 11/15/31 (MBIA Insured) | 7,000 | 7,345 | ||
6.25% 1/1/09 | 400 | 419 | ||
Troy School District 5% 5/1/17 (MBIA Insured) | 2,000 | 2,177 | ||
36,494 | ||||
Minnesota - 1.0% | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.: | ||||
(Health Partners Oblig. Group Proj.) 6% 12/1/18 | 1,000 | 1,106 | ||
(Healthspan Corp. Proj.) Series A, 4.75% 11/15/18 (AMBAC Insured) | 9,700 | 9,704 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev. Series A, 5% 1/1/35 (AMBAC Insured) | 4,000 | 4,201 | ||
Minneapolis Health Care Sys. Rev. (Allina Health Sys. Proj.) Series 2002 A, 6% 11/15/23 | 6,000 | 6,615 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Health Care Sys. Proj.) Series A, 6.375% 11/15/29 | 375 | 414 | ||
North St. Paul-Maplewood-Oakdale Independent School District 622 Series B, 5% 2/1/16 (FSA Insured) | 1,500 | 1,639 | ||
Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A, 5.875% 5/1/30 (FSA Insured) | 8,500 | 9,107 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.): | ||||
5.25% 5/15/18 | 1,000 | 1,071 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Minnesota - continued | ||||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.): - continued | ||||
5.25% 5/15/23 | $ 2,000 | $ 2,127 | ||
5.25% 5/15/36 | 4,250 | 4,474 | ||
Saint Paul Hsg. & Redev. Auth. Hosp. Rev. (Healtheast Proj.) 6% 11/15/30 | 2,000 | 2,197 | ||
Saint Paul Port Auth. Lease Rev. Series 2003 11: | ||||
5.25% 12/1/18 | 1,710 | 1,843 | ||
5.25% 12/1/19 | 2,850 | 3,074 | ||
Waconia Independent School District #110 Series A, 5% 2/1/15 (FSA Insured) | 555 | 583 | ||
48,155 | ||||
Mississippi - 0.1% | ||||
Hinds County Rev. (Mississippi Methodist Hosp. & Rehabilitation Proj.) 5.6% 5/1/12 (AMBAC Insured) | 3,515 | 3,646 | ||
Missouri - 0.5% | ||||
Missouri Dev. Fin. Board Infrastructure Facilities Rev. (City of Branson-Branson Landing Proj.) Series 2005 A, 6% 6/1/20 | 2,125 | 2,462 | ||
Missouri Envir. Impt. & Energy Resources Auth. Wtr. Poll. Cont. & Drinking Wtr. Rev. (State Revolving Fund Prog.): | ||||
Series 2002 B, 5.5% 7/1/17 | 1,780 | 1,955 | ||
Series 2003 A: | ||||
5.125% 1/1/19 | 5,000 | 5,355 | ||
5.25% 1/1/18 | 1,280 | 1,384 | ||
Missouri Health & Edl. Facilities Auth. Edl. Facilities Rev. (Washington Univ. Proj.) Series A, 5% 1/15/37 (c) | 12,100 | 12,937 | ||
Missouri Hsg. Dev. Commission Single Family Mtg. Rev. Series C, 5.5% 3/1/16 (g) | 90 | 90 | ||
24,183 | ||||
Montana - 0.4% | ||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (d) | 10,755 | 10,986 | ||
Montana Board of Invt. (Payroll Tax Workers Compensation Prog.): | ||||
Series 1996: | ||||
6.875% 6/1/20 (Escrowed to Maturity) (h) | 1,255 | 1,342 | ||
6.875% 6/1/20 (Escrowed to Maturity) (h) | 3,870 | 4,138 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Montana - continued | ||||
Montana Board of Invt. (Payroll Tax Workers Compensation Prog.): - continued | ||||
6.875% 6/1/20 (Escrowed to Maturity) (h) | $ 2,005 | $ 2,143 | ||
Montana Board of Regents Higher Ed. Rev. (Montana State Univ. Proj.) 5% 11/15/34 (AMBAC Insured) | 2,000 | 2,118 | ||
20,727 | ||||
Nebraska - 0.4% | ||||
Omaha Pub. Pwr. District Elec. Rev. Series A: | ||||
5% 2/1/34 | 6,900 | 7,230 | ||
5% 2/1/46 | 10,000 | 10,398 | ||
17,628 | ||||
Nevada - 0.6% | ||||
Clark County Arpt. Rev. Series C: | ||||
5.375% 7/1/17 (AMBAC Insured) (g) | 4,310 | 4,620 | ||
5.375% 7/1/19 (AMBAC Insured) (g) | 1,100 | 1,174 | ||
5.375% 7/1/21 (AMBAC Insured) (g) | 1,600 | 1,702 | ||
Henderson Health Care Facility Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08 | 2,700 | 2,745 | ||
Las Vegas Valley Wtr. District Series B, 5.25% 6/1/17 (MBIA Insured) | 6,285 | 6,760 | ||
Washoe County Gen. Oblig. (Reno Sparks Proj.) Series B: | ||||
0% 7/1/12 (FSA Insured) | 4,605 | 3,713 | ||
0% 7/1/13 (FSA Insured) | 4,590 | 3,543 | ||
0% 7/1/14 (FSA Insured) | 3,000 | 2,215 | ||
26,472 | ||||
New Hampshire - 0.2% | ||||
Nashua Gen. Oblig. 5.25% 9/15/18 | 1,000 | 1,070 | ||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev. (United Illumination Co.) Series A, 3.65%, tender 2/1/10 (AMBAC Insured) (d)(g) | 6,100 | 6,004 | ||
7,074 | ||||
New Jersey - 3.0% | ||||
New Jersey Econ. Dev. Auth. Rev. Series 2005 O: | ||||
5.125% 3/1/28 | 6,000 | 6,414 | ||
5.125% 3/1/30 | 5,000 | 5,331 | ||
5.25% 3/1/21 (MBIA Insured) | 2,800 | 3,050 | ||
5.25% 3/1/23 | 4,500 | 4,872 | ||
5.25% 3/1/25 | 9,900 | 10,696 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New Jersey - continued | ||||
New Jersey Econ. Dev. Auth. Rev. Series 2005 O: - continued | ||||
5.25% 3/1/26 | $ 11,305 | $ 12,214 | ||
New Jersey Tpk. Auth. Tpk. Rev. Series A, 5% 1/1/25 (FSA Insured) | 6,200 | 6,612 | ||
New Jersey Trans. Trust Fund Auth. Series B, 5.5% 12/15/21 (MBIA Insured) | 5,000 | 5,819 | ||
North Hudson Swr. Auth. Swr. Rev. Series A: | ||||
5.25% 8/1/18 (FGIC Insured) | 3,235 | 3,480 | ||
5.25% 8/1/19 (FGIC Insured) | 2,735 | 2,941 | ||
Ocean County Utils. Auth. Wastewtr. Rev. 5.25% 1/1/07 | 650 | 650 | ||
Tobacco Settlement Fing. Corp.: | ||||
4.375% 6/1/19 | 13,995 | 13,998 | ||
5.75% 6/1/32 | 8,780 | 9,403 | ||
6.125% 6/1/24 | 24,850 | 26,886 | ||
6.125% 6/1/42 | 4,500 | 4,905 | ||
6.375% 6/1/32 | 6,300 | 7,066 | ||
6.75% 6/1/39 | 8,700 | 9,940 | ||
Union County Impt. Auth. (Juvenile Detention Ctr. Facility Proj.) 5.5% 5/1/28 (FGIC Insured) | 5,560 | 6,183 | ||
140,460 | ||||
New Mexico - 0.4% | ||||
Albuquerque Arpt. Rev.: | ||||
6.5% 7/1/08 (AMBAC Insured) (g) | 1,500 | 1,560 | ||
6.7% 7/1/18 (AMBAC Insured) (g) | 2,500 | 2,582 | ||
6.75% 7/1/09 (AMBAC Insured) (g) | 1,150 | 1,224 | ||
6.75% 7/1/10 (AMBAC Insured) (g) | 1,700 | 1,843 | ||
6.75% 7/1/12 (AMBAC Insured) (g) | 1,935 | 2,177 | ||
New Mexico Edl. Assistance Foundation Sr. Series A3, 4.95% 3/1/09 (g) | 5,000 | 5,105 | ||
Univ. of New Mexico Univ. Revs. Series A, 6% 6/1/21 | 5,340 | 6,200 | ||
20,691 | ||||
New York - 13.6% | ||||
Erie County Indl. Dev. Agcy. School Facility Rev. (Buffalo City School District Proj.): | ||||
Series 2003: | ||||
5.75% 5/1/21 (FSA Insured) | 1,575 | 1,722 | ||
5.75% 5/1/23 (FSA Insured) | 1,750 | 1,908 | ||
Series 2004: | ||||
5.75% 5/1/21 (FSA Insured) | 3,845 | 4,328 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
Erie County Indl. Dev. Agcy. School Facility Rev. (Buffalo City School District Proj.): - continued | ||||
Series 2004: | ||||
5.75% 5/1/23 (FSA Insured) | $ 3,000 | $ 3,371 | ||
5.75% 5/1/24 (FSA Insured) | 3,000 | 3,367 | ||
5.75% 5/1/25 (FSA Insured) | 3,400 | 3,811 | ||
5.75% 5/1/26 (FSA Insured) | 5,200 | 5,825 | ||
5.75% 5/1/14 (FSA Insured) | 3,500 | 3,897 | ||
5.75% 5/1/15 (FSA Insured) | 7,870 | 8,758 | ||
5.75% 5/1/16 (FSA Insured) | 7,120 | 8,058 | ||
5.75% 5/1/18 (FSA Insured) | 3,460 | 3,795 | ||
5.75% 5/1/18 (FSA Insured) | 9,220 | 10,416 | ||
5.75% 5/1/20 (FSA Insured) | 8,000 | 9,022 | ||
5.75% 5/1/22 (FSA Insured) | 1,000 | 1,125 | ||
Hudson Yards Infrastructure Corp.: | ||||
4.5% 2/15/47 (MBIA Insured) | 12,900 | 12,899 | ||
5% 2/15/47 | 22,600 | 23,829 | ||
Long Island Pwr. Auth. N.Y. Elec. Sys. Rev.: | ||||
Series B, 5% 12/1/35 | 2,000 | 2,112 | ||
Series C, 5% 9/1/35 | 4,000 | 4,229 | ||
5% 12/1/25 (FGIC Insured) | 5,000 | 5,352 | ||
5% 12/1/26 (XL Cap. Assurance, Inc. Insured) | 2,600 | 2,777 | ||
Metropolitan Trans. Auth. Dedicated Tax Fund Series A, 5.5% 11/15/26 (FSA Insured) | 2,200 | 2,395 | ||
Metropolitan Trans. Auth. Rev. Series F, 5.25% 11/15/27 (Pre-Refunded to 11/15/12 @ 100) (h) | 3,400 | 3,696 | ||
Metropolitan Trans. Auth. Svc. Contract Rev.: | ||||
Series 2002 A, 5.75% 7/1/31 (AMBAC Insured) | 3,800 | 4,139 | ||
Series A, 5.5% 1/1/20 (MBIA Insured) | 4,200 | 4,575 | ||
Series B, 5.5% 7/1/19 (MBIA Insured) | 2,000 | 2,181 | ||
New York City Gen. Oblig.: | ||||
Series 2000 A, 6.5% 5/15/11 | 995 | 1,089 | ||
Series 2002 C, 5.5% 8/1/13 | 5,000 | 5,457 | ||
Series 2003 A, 5.5% 8/1/20 (MBIA Insured) | 8,000 | 8,809 | ||
Series 2005 G: | ||||
5% 8/1/14 | 2,400 | 2,580 | ||
5% 8/1/15 | 1,500 | 1,620 | ||
5.25% 8/1/16 | 3,525 | 3,893 | ||
Series A, 5.25% 11/1/14 (MBIA Insured) | 1,850 | 1,994 | ||
Series B, 5.75% 8/1/14 | 2,000 | 2,199 | ||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 2,500 | 2,670 | ||
Series J, 5.5% 6/1/19 | 6,500 | 7,096 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
New York City Gen. Oblig.: - continued | ||||
Subseries 2005 F1: | ||||
5% 9/1/15 | $ 4,000 | $ 4,324 | ||
5.25% 9/1/14 | 5,060 | 5,526 | ||
New York City Indl. Dev. Agcy. Indl. Dev. Rev. (Japan Airlines Co. Ltd. Proj.) Series 1991, 6% 11/1/15 (FSA Insured) (g) | 1,285 | 1,299 | ||
New York City Indl. Dev. Agcy. Rev. (Queens Baseball Stadium Proj.) 5% 1/1/19 (AMBAC Insured) | 3,500 | 3,795 | ||
New York City Indl. Dev. Agcy. Spl. Facilities Rev. (Terminal One Group Assoc. Proj.) 5% 1/1/09 (g) | 3,100 | 3,157 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.: | ||||
Series 2002 A, 5.125% 6/15/34 (FSA Insured) | 3,300 | 3,483 | ||
Series A, 5.125% 6/15/34 (MBIA Insured) | 13,800 | 14,567 | ||
Series B, 5.125% 6/15/31 | 10,545 | 11,005 | ||
Series D, 5% 6/15/39 | 3,540 | 3,732 | ||
Series E, 5% 6/15/34 | 11,120 | 11,611 | ||
Series G, 5.125% 6/15/32 | 2,000 | 2,087 | ||
New York City Trust Cultural Resources Rev. (Museum of Modern Art Proj.) Series 2001 D, 5.125% 7/1/31 (AMBAC Insured) | 6,000 | 6,357 | ||
New York Local Govt. Assistance Corp. Series C, 5.5% 4/1/17 | 22,015 | 24,817 | ||
New York State Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.): | ||||
Series A: | ||||
5.75% 7/1/09 | 4,370 | 4,535 | ||
5.75% 7/1/13 | 8,750 | 9,489 | ||
Series C, 7.5% 7/1/10 (FGIC Insured) | 17,590 | 18,763 | ||
(Long Island Jewish Med. Ctr. Proj.) 5.25% 7/1/11 (MBIA Insured) | 3,370 | 3,482 | ||
(New York Univ. Hosp. Ctr. Proj.) Series A, 5% 7/1/16 | 1,000 | 1,044 | ||
(State Univ. Edl. Facilities Proj.) Series A: | ||||
5.25% 5/15/15 (MBIA Insured) | 12,400 | 13,525 | ||
5.875% 5/15/17 (FGIC Insured) | 6,865 | 8,050 | ||
(Suffolk County Judicial Facilities Proj.) Series A, 9.5% 4/15/14 (Escrowed to Maturity) (h) | 690 | 897 | ||
Series 2002 A, 5.75% 10/1/17 (MBIA Insured) | 3,000 | 3,315 | ||
Series A, 5% 7/1/15 | 3,000 | 3,132 | ||
New York State Envir. Facilities Corp. Clean Wtr. & Drinking Wtr. Rev.: | ||||
(New York City Muni. Wtr. Fin. Proj.) 5% 6/15/34 | 3,800 | 4,020 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
New York State Envir. Facilities Corp. Clean Wtr. & Drinking Wtr. Rev.: - continued | ||||
Series F: | ||||
4.875% 6/15/18 | $ 4,205 | $ 4,312 | ||
4.875% 6/15/20 | 8,500 | 8,708 | ||
5% 6/15/15 | 3,015 | 3,102 | ||
New York State Med. Care Facilities Fin. Agcy. Rev. (Homeowner Mtg. Prog.) Series E, 6.2% 2/15/15 | 1,205 | 1,217 | ||
New York State Thruway Auth. Gen. Rev.: | ||||
Series 2005 G, 5.25% 1/1/27 (FSA Insured) | 12,500 | 13,691 | ||
Series G, 5% 1/1/32 (FSA Insured) | 2,900 | 3,081 | ||
New York State Urban Dev. Corp. Rev. Series 2004 A2, 5.5% 3/15/21 (MBIA Insured) | 14,360 | 16,726 | ||
New York Transitional Fin. Auth. Rev.: | ||||
Series 2003 D, 5% 2/1/31 | 3,500 | 3,666 | ||
Series 2004 C, 5% 2/1/33 (FGIC Insured) | 5,000 | 5,293 | ||
Series A: | ||||
5.5% 11/1/26 (b) | 5,000 | 5,369 | ||
5.75% 2/15/16 | 130 | 139 | ||
6% 11/1/28 (b) | 7,775 | 8,519 | ||
Series B: | ||||
5% 8/1/32 | 14,715 | 15,454 | ||
5.25% 8/1/19 | 2,000 | 2,167 | ||
5.25% 2/1/29 (b) | 13,000 | 13,700 | ||
Niagara Falls City Niagara County Pub. Impt.: | ||||
7.5% 3/1/18 (Escrowed to Maturity) (h) | 40 | 53 | ||
7.5% 3/1/18 (MBIA Insured) | 460 | 608 | ||
Sales Tax Asset Receivables Corp. Series A, 5.25% 10/15/27 (AMBAC Insured) | 10,500 | 11,465 | ||
Tobacco Settlement Asset Securitization Corp. Series 1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (h) | 7,515 | 7,999 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series A1: | ||||
5.25% 6/1/21 (AMBAC Insured) | 5,645 | 6,067 | ||
5.25% 6/1/22 (AMBAC Insured) | 3,850 | 4,138 | ||
5.5% 6/1/14 | 7,500 | 7,810 | ||
5.5% 6/1/15 | 37,645 | 39,758 | ||
5.5% 6/1/17 | 4,100 | 4,377 | ||
5.5% 6/1/18 (MBIA Insured) | 2,000 | 2,170 | ||
5.5% 6/1/19 | 2,300 | 2,507 | ||
Series C1: | ||||
5.5% 6/1/14 | 9,900 | 10,309 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
Tobacco Settlement Fing. Corp.: - continued | ||||
Series C1: | ||||
5.5% 6/1/15 | $ 11,700 | $ 12,357 | ||
5.5% 6/1/16 | 3,820 | 4,086 | ||
5.5% 6/1/17 | 11,500 | 12,277 | ||
5.5% 6/1/18 | 12,000 | 12,952 | ||
5.5% 6/1/19 | 10,800 | 11,771 | ||
5.5% 6/1/20 | 2,700 | 2,938 | ||
5.5% 6/1/22 | 10,115 | 10,989 | ||
Triborough Bridge & Tunnel Auth. Revs.: | ||||
(Convention Ctr. Proj.) Series E, 7.25% 1/1/10 (XL Cap. Assurance, Inc. Insured) | 6,095 | 6,400 | ||
Series 2005 A, 5.125% 1/1/22 | 4,000 | 4,230 | ||
Series A, 5% 1/1/32 (MBIA Insured) | 470 | 492 | ||
Series B: | ||||
5.2% 1/1/27 (Pre-Refunded to 1/1/22 @ 100) (h) | 2,000 | 2,305 | ||
5.5% 1/1/30 (Pre-Refunded to 1/1/22 @ 100) (h) | 4,000 | 4,629 | ||
Series SR, 5.5% 1/1/12 (Escrowed to Maturity) (h) | 9,685 | 10,082 | ||
638,919 | ||||
New York & New Jersey - 0.3% | ||||
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (g) | 3,400 | 3,484 | ||
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (MBIA Insured) (g) | 10,275 | 11,665 | ||
15,149 | ||||
North Carolina - 3.3% | ||||
Catawba County Ctfs. of Prtn. (Pub. School and Cmnty. College Proj.) 5.25% 6/1/20 (MBIA Insured) | 1,800 | 1,954 | ||
Dare County Ctfs. of Prtn.: | ||||
5.25% 6/1/17 (AMBAC Insured) | 1,620 | 1,757 | ||
5.25% 6/1/18 (AMBAC Insured) | 1,620 | 1,753 | ||
5.25% 6/1/19 (AMBAC Insured) | 1,540 | 1,668 | ||
5.25% 6/1/22 (AMBAC Insured) | 1,620 | 1,751 | ||
5.25% 6/1/23 (AMBAC Insured) | 1,620 | 1,742 | ||
North Carolina Cap. Facilities Fin. Agcy. Rev.: | ||||
(Duke Univ. Proj.) Series A: | ||||
5.125% 10/1/41 | 1,195 | 1,247 | ||
5.125% 7/1/42 (Pre-Refunded to 10/1/12 @ 100) (h) | 34,200 | 36,808 | ||
Series 2006B, 4.75% 7/1/42 (c) | 5,000 | 5,113 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
North Carolina - continued | ||||
North Carolina Cap. Facilities Fin. Agcy. Rev.: - continued | ||||
Series A, 5.125% 10/1/41 (Pre-Refunded to 10/1/11 @ 100) (h) | $ 5,185 | $ 5,520 | ||
North Carolina Ctfs. of Prtn. (Repair and Renovation Proj.) Series B, 5.25% 6/1/17 | 3,600 | 3,920 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | ||||
Series A: | ||||
5.5% 1/1/11 | 8,700 | 9,167 | ||
5.75% 1/1/26 | 4,000 | 4,215 | ||
Series B, 7% 1/1/08 | 10,060 | 10,360 | ||
Series C, 5.25% 1/1/09 | 2,500 | 2,559 | ||
Series D: | ||||
5.375% 1/1/10 | 4,525 | 4,701 | ||
6.7% 1/1/19 | 5,000 | 5,438 | ||
6.75% 1/1/26 | 7,000 | 7,631 | ||
North Carolina Infrastructure Fin. Corp. Ctfs. of Prtn. (North Carolina Correctional Facilities Proj.) Series A: | ||||
5% 2/1/19 | 2,945 | 3,117 | ||
5% 2/1/20 | 1,500 | 1,585 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev. Series A: | ||||
5.125% 1/1/15 (MBIA Insured) | 6,860 | 7,005 | ||
5.125% 1/1/17 (MBIA Insured) | 15,350 | 15,674 | ||
5.125% 1/1/17 (MBIA Insured) | 16,000 | 16,541 | ||
Univ. of North Carolina at Chapel Hill Rev. Series A, 4.75% 12/1/34 | 5,000 | 5,169 | ||
156,395 | ||||
North Dakota - 0.7% | ||||
Mercer County Poll. Cont. Rev. (Antelope Valley Station/Basin Elec. Pwr. Coop. Proj.) 7.2% 6/30/13 (AMBAC Insured) | 26,000 | 29,395 | ||
Ward County Health Care Facility Rev. (Trinity Med. Ctr. Proj.): | ||||
5.125% 7/1/19 | 2,765 | 2,924 | ||
5.25% 7/1/15 | 1,300 | 1,397 | ||
33,716 | ||||
Ohio - 0.9% | ||||
Cleveland Parking Facilities Rev. 5.25% 9/15/18 (FSA Insured) | 2,000 | 2,254 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Ohio - continued | ||||
Franklin County Hosp. Rev. 5.5% 5/1/28 (Pre-Refunded to 5/1/11 @ 101) (h) | $ 4,265 | $ 4,618 | ||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/08 | 1,225 | 1,248 | ||
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series A: | ||||
6% 12/1/19 | 4,905 | 5,328 | ||
6% 12/1/19 (Escrowed to Maturity) (h) | 5,095 | 5,520 | ||
6% 12/1/26 (Escrowed to Maturity) (h) | 10,000 | 10,825 | ||
Ohio Solid Waste Rev. (Waste Mgmt., Inc. Proj.) 4.85%, tender 11/1/07 (d)(g) | 5,000 | 5,013 | ||
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B: | ||||
6.375% 11/15/30 | 1,005 | 1,091 | ||
6.375% 11/15/30 (Pre-Refunded to 11/15/10 @ 101) (h) | 1,995 | 2,205 | ||
Univ. of Cincinnati Ctfs. of Prtn. 5.125% 6/1/28 (MBIA Insured) | 3,750 | 3,894 | ||
41,996 | ||||
Oklahoma - 1.0% | ||||
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (h) | 2,080 | 1,720 | ||
Oklahoma City Pub. Property Auth. Hotel Tax Rev.: | ||||
5.25% 10/1/29 (FGIC Insured) | 4,000 | 4,369 | ||
5.5% 10/1/22 (FGIC Insured) | 2,845 | 3,161 | ||
5.5% 10/1/23 (FGIC Insured) | 3,005 | 3,332 | ||
5.5% 10/1/24 (FGIC Insured) | 3,175 | 3,518 | ||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 6% 2/15/29 | 15,000 | 15,852 | ||
Oklahoma Industries Auth. Rev. (Health Sys. Oblig. Group Proj.) Series A, 5.75% 8/15/29 (MBIA Insured) | 11,420 | 12,028 | ||
Tulsa County Indl. Auth. Health Care Rev. 5% 12/15/19 | 1,680 | 1,791 | ||
45,771 | ||||
Oregon - 0.3% | ||||
Clackamas County School District #62C, Oregon City Series 2004, 5% 6/15/19 (FSA Insured) | 3,395 | 3,630 | ||
Clackamus County School District #7J: | ||||
5.25% 6/1/23 (FSA Insured) | 2,000 | 2,296 | ||
5.25% 6/1/24 (FSA Insured) | 2,605 | 3,003 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Oregon - continued | ||||
Port Morrow Poll. Cont. Rev. (Pacific Northwest Proj.) Series A: | ||||
8% 7/15/07 | $ 430 | $ 440 | ||
8% 7/15/08 | 480 | 491 | ||
8% 7/15/09 | 540 | 551 | ||
8% 7/15/10 | 605 | 617 | ||
8% 7/15/11 | 385 | 393 | ||
Washington County School District #15: | ||||
5.5% 6/15/20 (FSA Insured) | 1,770 | 2,044 | ||
5.5% 6/15/21 (FSA Insured) | 1,060 | 1,224 | ||
14,689 | ||||
Pennsylvania - 1.7% | ||||
Allegheny County Arpt. Auth. Rev. (Pittsburg Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (MBIA Insured) (g) | 3,000 | 3,201 | ||
Annville-Cleona School District: | ||||
5.5% 3/1/24 (FSA Insured) | 1,350 | 1,504 | ||
5.5% 3/1/25 (FSA Insured) | 1,400 | 1,557 | ||
Canon McMillan School District Series 2001 B, 5.75% 12/1/33 (FGIC Insured) | 3,000 | 3,202 | ||
Central Dauphin School District Gen. Oblig. 7% 2/1/27 (Pre-Refunded to 2/1/16 @ 100) (h) | 1,000 | 1,248 | ||
Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B, 5.25% 5/15/22 (AMBAC Insured) | 4,400 | 4,528 | ||
Easton Area School District Series 2006, 7.75% 4/1/25 (FSA Insured) | 4,800 | 6,231 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A: | ||||
6% 6/1/22 (AMBAC Insured) | 2,000 | 2,423 | ||
6.1% 6/1/12 (AMBAC Insured) | 3,000 | 3,330 | ||
6.125% 6/1/14 (AMBAC Insured) | 5,230 | 5,976 | ||
Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/13 (Escrowed to Maturity) (h) | 11,455 | 8,804 | ||
Pennsylvania Convention Ctr. Auth. Rev. Series A, 6.7% 9/1/16 (Escrowed to Maturity) (h) | 2,000 | 2,298 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.: | ||||
(Amtrak Proj.) Series 2001 A, 6.375% 11/1/41 (g) | 8,700 | 9,441 | ||
(Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (d)(g) | 5,600 | 5,602 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Pennsylvania - continued | ||||
Pennsylvania Econ. Dev. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series 2004 A, 3.95%, tender 11/1/09 (d)(g) | $ 5,000 | $ 4,955 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev. (Univ. of Pennsylvania Health Systems Proj.) Series A, 5% 8/15/16 (AMBAC Insured) | 3,600 | 3,898 | ||
Pennsylvania Hsg. Fin. Agcy. Series 54A, 5.375% 10/1/28 (g) | 200 | 201 | ||
Philadelphia Arpt. Rev. Series 1998, 5.375% 6/15/10 (FGIC Insured) (g) | 4,425 | 4,604 | ||
Philadelphia Gen. Oblig. Series 2003 A, 5% 2/15/12 (XL Cap. Assurance, Inc. Insured) | 1,000 | 1,056 | ||
Philadelphia Redev. Auth. Rev. (Philadelphia Neighborhood Transformation Initiative Proj.) Series 2005 C, 5% 4/15/31 (FGIC Insured) | 3,000 | 3,168 | ||
77,227 | ||||
Puerto Rico - 0.5% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev.: | ||||
Series 1998, 5.75% 7/1/22 (CIFG North America Insured) | 2,300 | 2,546 | ||
5.75% 7/1/19 (FGIC Insured) | 3,240 | 3,593 | ||
Puerto Rico Commonwealth Infrastructure Fing. Auth.: | ||||
Series 2000 A, 5.5% 10/1/40 (Escrowed to Maturity) (h) | 745 | 794 | ||
Series C, 5.5% 7/1/21 (FGIC Insured) | 3,000 | 3,517 | ||
Puerto Rico Govt. Dev. Bank: | ||||
Series B, 5% 12/1/12 | 5,000 | 5,282 | ||
Series C, 5.25% 1/1/15 (g) | 5,000 | 5,332 | ||
21,064 | ||||
Rhode Island - 0.3% | ||||
Rhode Island Health & Edl. Bldg. Corp. Rev.: | ||||
(Lifespan Corp. Proj.) Series A: | ||||
5% 5/15/11 | 1,680 | 1,744 | ||
5% 5/15/13 (FSA Insured) | 4,000 | 4,255 | ||
(Univ. of Rhode Island Univ. Revs. Proj.) Series A: | ||||
5.25% 9/15/15 (AMBAC Insured) | 1,725 | 1,880 | ||
5.25% 9/15/16 (AMBAC Insured) | 1,815 | 1,985 | ||
5.25% 9/15/18 (AMBAC Insured) | 1,005 | 1,091 | ||
5.5% 9/15/24 (AMBAC Insured) | 2,000 | 2,219 | ||
13,174 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
South Carolina - 0.7% | ||||
Greenville County School District Installment Purp. Rev. 5% 12/1/11 | $ 3,750 | $ 3,953 | ||
Lexington County Health Svcs. District, Inc. Hosp. Rev. 6% 11/1/18 | 3,500 | 3,894 | ||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5.25% 12/1/18 | 1,540 | 1,670 | ||
Richland County Hosp. Facilities Rev. (Cmnty. Provider Pooled Ln. Prog.) Series A, 7.125% 7/1/17 (Escrowed to Maturity) (h) | 1,365 | 1,565 | ||
Rock Hill Util. Sys. Rev. Series 2003 A: | ||||
5.375% 1/1/17 (FSA Insured) | 2,100 | 2,279 | ||
5.375% 1/1/23 (FSA Insured) | 1,025 | 1,108 | ||
South Carolina Jobs Econ. Dev. Auth. Hosp. Facilities Rev. (Palmetto Health Alliance Proj.) Series A, 7.375% 12/15/21 (Pre-Refunded to 12/15/10 @ 102) (h) | 4,000 | 4,593 | ||
South Carolina Ports Auth. Ports Rev. 5.5% 7/1/08 (FSA Insured) (g) | 3,515 | 3,610 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
(Santee Cooper Proj.) Series 2005 B, 5% 1/1/18 (MBIA Insured) | 2,200 | 2,384 | ||
Series 2005 B, 5% 1/1/19 (MBIA Insured) | 2,500 | 2,703 | ||
Series A, 5% 1/1/36 (MBIA Insured) | 5,000 | 5,316 | ||
York County Wtr. & Swr. Rev. 5.25% 12/1/30 (MBIA Insured) | 1,120 | 1,193 | ||
34,268 | ||||
South Dakota - 0.0% | ||||
South Dakota Lease Rev. Series A, 6.625% 9/1/12 (FSA Insured) | 1,000 | 1,141 | ||
Tennessee - 1.0% | ||||
Clarksville Natural Gas Acquisition Corp. Gas Rev.: | ||||
5% 12/15/12 | 4,500 | 4,760 | ||
5% 12/15/13 | 8,000 | 8,521 | ||
5% 12/15/14 | 3,870 | 4,142 | ||
Knox County Health Edl. & Hsg. Facilities Board Hosp. Facilities Rev. (Fort Sanders Alliance Proj.) Series C: | ||||
5.25% 1/1/15 (MBIA Insured) | 3,310 | 3,610 | ||
5.75% 1/1/14 (MBIA Insured) | 2,000 | 2,232 | ||
7.25% 1/1/10 (MBIA Insured) | 2,660 | 2,913 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev.: | ||||
Series A: | ||||
6.25% 2/15/09 (MBIA Insured) (g) | 1,500 | 1,573 | ||
6.25% 2/15/10 (MBIA Insured) (g) | 1,000 | 1,069 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Tennessee - continued | ||||
Memphis-Shelby County Arpt. Auth. Arpt. Rev.: - continued | ||||
Series A: | ||||
6.25% 2/15/11 (MBIA Insured) (g) | $ 1,415 | $ 1,540 | ||
Series B, 6.5% 2/15/09 (MBIA Insured) (g) | 500 | 527 | ||
Metropolitan Govt. Nashville & Davidson County Wtr. & Swr. Sys. Rev. 7.7% 1/1/12 (FGIC Insured) | 5,600 | 6,297 | ||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Hosp. Proj.) 6.5% 9/1/26 (Pre-Refunded to 9/1/12 @ 100) (h) | 8,410 | 9,606 | ||
46,790 | ||||
Texas - 12.9% | ||||
Abilene Independent School District: | ||||
5% 2/15/16 | 2,035 | 2,197 | ||
5% 2/15/18 | 2,000 | 2,145 | ||
5% 2/15/23 | 3,205 | 3,402 | ||
Aledo Independent School District Series A, 5.125% 2/15/33 | 2,775 | 2,942 | ||
Argyle Independent School District 5.25% 8/15/40 (FSA Insured) | 1,745 | 1,870 | ||
Arlington Gen. Oblig. 5% 8/15/18 (FGIC Insured) | 1,215 | 1,289 | ||
Austin Cmnty. College District Rev. (Convention Ctr. Proj.) Series B, 0% 2/1/22 (AMBAC Insured) | 2,900 | 1,516 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B: | ||||
5.75% 1/1/24 | 1,405 | 1,490 | ||
5.75% 1/1/34 | 1,500 | 1,584 | ||
Austin Independent School District 5.25% 8/1/15 | 2,000 | 2,209 | ||
Austin Util. Sys. Rev.: | ||||
0% 5/15/10 (MBIA Insured) | 7,970 | 7,010 | ||
0% 5/15/17 (FGIC Insured) | 9,200 | 6,023 | ||
0% 5/15/18 (FGIC Insured) | 5,000 | 3,121 | ||
Austin Wtr. & Wastewtr. Sys. Rev.: | ||||
Series A, 5% 5/15/31 (AMBAC Insured) | 4,690 | 4,955 | ||
5% 11/15/15 (MBIA Insured) | 1,250 | 1,360 | ||
Bexar Metropolitan Wtr. District Wtrwks. Sys. Rev. 5.375% 5/1/20 (FSA Insured) | 220 | 236 | ||
Birdville Independent School District: | ||||
0% 2/15/11 | 8,665 | 7,392 | ||
0% 2/15/13 | 13,690 | 10,765 | ||
Boerne Independent School District 5.25% 2/1/35 | 11,000 | 11,698 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Canyon Independent School District Series A, 5.5% 2/15/21 | $ 1,855 | $ 2,020 | ||
Clint Independent School District: | ||||
5.5% 8/15/19 | 1,055 | 1,148 | ||
5.5% 8/15/20 | 1,110 | 1,209 | ||
5.5% 8/15/21 | 1,175 | 1,278 | ||
Conroe Independent School District: | ||||
Series B, 0% 2/15/10 | 2,805 | 2,487 | ||
0% 2/15/11 | 1,500 | 1,280 | ||
Coppell Independent School District 0% 8/15/20 | 2,000 | 1,115 | ||
Corpus Christi Util. Sys. Rev.: | ||||
5.25% 7/15/18 (FSA Insured) | 3,305 | 3,675 | ||
5.25% 7/15/19 (FSA Insured) | 4,000 | 4,437 | ||
Corsicana Independent School District 5.125% 2/15/34 | 3,275 | 3,470 | ||
Crowley Independent School District 5.25% 8/1/33 | 4,000 | 4,348 | ||
Cypress-Fairbanks Independent School District: | ||||
Series A: | ||||
0% 2/15/12 | 20,900 | 17,128 | ||
0% 2/15/13 | 6,425 | 5,052 | ||
0% 2/15/14 | 11,475 | 8,645 | ||
0% 2/15/16 | 9,700 | 6,701 | ||
5.25% 2/15/27 | 6,610 | 7,104 | ||
Dallas Fort Worth Int'l. Arpt. Rev. Series A: | ||||
5.25% 11/1/10 (MBIA Insured) (g) | 2,150 | 2,254 | ||
5.25% 11/1/12 (MBIA Insured) (g) | 5,820 | 6,216 | ||
Del Mar College District 5.25% 8/15/20 (FGIC Insured) | 2,960 | 3,187 | ||
Denton County Lewisville Independent School District Series 2004, 5% 8/15/16 | 3,465 | 3,639 | ||
Denton Independent School District 5% 8/15/33 | 11,120 | 11,538 | ||
DeSoto Independent School District 0% 8/15/20 | 3,335 | 1,854 | ||
Duncanville Independent School District 5.65% 2/15/28 | 30 | 33 | ||
El Paso Independent School District 5.25% 8/15/31 | 2,245 | 2,436 | ||
Fort Worth Wtr. & Swr. Rev. 5% 2/15/16 (FSA Insured) | 6,000 | 6,422 | ||
Frisco Independent School District: | ||||
Series C: | ||||
5% 8/15/22 | 2,000 | 2,134 | ||
5% 8/15/26 | 3,765 | 3,992 | ||
5.375% 8/15/17 | 2,715 | 2,936 | ||
Gainesville Independent School District 5.25% 2/15/36 | 1,900 | 2,057 | ||
Garland Wtr. & Swr. Rev. 5.25% 3/1/23 (AMBAC Insured) | 1,315 | 1,408 | ||
Grand Prairie Independent School District 0% 2/15/16 | 3,775 | 2,612 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Guadalupe-Blanco River Auth. Contract Rev. (Western Canyon Reg'l. Wtr. Supply Proj.): | ||||
5.25% 4/15/15 (MBIA Insured) | $ 1,570 | $ 1,699 | ||
5.25% 4/15/16 (MBIA Insured) | 1,680 | 1,814 | ||
5.25% 4/15/17 (MBIA Insured) | 2,295 | 2,471 | ||
5.25% 4/15/18 (MBIA Insured) | 1,915 | 2,059 | ||
5.25% 4/15/19 (MBIA Insured) | 1,000 | 1,076 | ||
5.25% 4/15/20 (MBIA Insured) | 1,565 | 1,682 | ||
Harlandale Independent School District: | ||||
Series 2005, 5.7% 8/15/30 | 100 | 106 | ||
5.5% 8/15/35 | 45 | 48 | ||
6% 8/15/16 | 35 | 38 | ||
Harris County Gen. Oblig.: | ||||
Series A, 5.25% 8/15/35 (FSA Insured) | 11,400 | 12,004 | ||
0% 10/1/13 (MBIA Insured) | 5,550 | 4,269 | ||
0% 10/1/14 (MBIA Insured) | 11,000 | 8,108 | ||
0% 8/15/25 (MBIA Insured) | 3,000 | 1,327 | ||
0% 8/15/28 (MBIA Insured) | 5,000 | 1,915 | ||
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A: | ||||
5.375% 2/15/26 (Pre-Refunded to 8/15/11 @ 100) (h) | 3,000 | 3,214 | ||
5.625% 2/15/13 (Pre-Refunded to 8/15/11 @ 100) (h) | 4,625 | 5,003 | ||
Harris County Hosp. District Mtg. Rev.: | ||||
7.4% 2/15/10 (AMBAC Insured) | 1,120 | 1,183 | ||
7.4% 2/15/10 (Escrowed to Maturity) (h) | 425 | 444 | ||
Houston Area Wtr. Corp. Contract Rev. (Northeast Wtr. Purification Proj.) 5.5% 3/1/15 (FGIC Insured) | 1,985 | 2,154 | ||
Houston Arpt. Sys. Rev.: | ||||
Series A: | ||||
5.625% 7/1/20 (FSA Insured) (g) | 2,000 | 2,148 | ||
5.625% 7/1/21 (FSA Insured) (g) | 3,350 | 3,594 | ||
6% 7/1/08 (FGIC Insured) (g) | 1,000 | 1,033 | ||
Series B, 5.5% 7/1/30 (FSA Insured) | 10,645 | 11,249 | ||
Houston Independent School District: | ||||
Series A, 0% 8/15/11 | 6,400 | 5,355 | ||
0% 8/15/13 | 9,835 | 7,578 | ||
Humble Independent School District: | ||||
Series 2005 B, 5.25% 2/15/22 (FGIC Insured) | 1,995 | 2,171 | ||
0% 2/15/16 | 3,000 | 2,082 | ||
0% 2/15/17 | 3,480 | 2,304 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Hurst Euless Bedford Independent School District: | ||||
0% 8/15/11 | $ 3,620 | $ 3,029 | ||
0% 8/15/12 | 5,105 | 4,103 | ||
0% 8/15/13 | 3,610 | 2,782 | ||
Katy Independent School District: | ||||
Series A, 5% 2/15/16 | 2,500 | 2,655 | ||
0% 8/15/11 | 4,170 | 3,489 | ||
Keller Independent School District Series 1996 A, 0% 8/15/17 | 2,000 | 1,289 | ||
Killeen Independent School District: | ||||
5.25% 2/15/17 | 2,105 | 2,256 | ||
5.25% 2/15/18 | 1,325 | 1,417 | ||
La Joya Independent School District 5.25% 2/15/23 | 2,940 | 3,175 | ||
Liberty Hill Independent School District (School Bldg. Proj.) 5.25% 8/1/35 | 7,615 | 8,243 | ||
Little Elm Independent School District 5.5% 8/15/21 | 60 | 64 | ||
Lower Colorado River Auth. Rev.: | ||||
5% 5/15/31 (AMBAC Insured) | 1,565 | 1,619 | ||
5.25% 1/1/15 (Escrowed to Maturity) (h) | 6,260 | 6,912 | ||
5.25% 5/15/18 (AMBAC Insured) | 2,020 | 2,173 | ||
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Services Corp. Proj.) Series C: | ||||
5.25% 5/15/18 (AMBAC Insured) | 1,000 | 1,077 | ||
5.25% 5/15/19 (AMBAC Insured) | 1,000 | 1,076 | ||
5.25% 5/15/20 (AMBAC Insured) | 2,000 | 2,151 | ||
Lubbock Gen. Oblig. (Wtrwks. Sys. Surplus Proj.) 5% 2/15/17 (FSA Insured) | 2,270 | 2,442 | ||
Mansfield Independent School District 5.5% 2/15/18 | 3,855 | 4,158 | ||
Mesquite Independent School District: | ||||
3.65%, tender 12/1/08 (Liquidity Facility JPMorgan Chase Bank) (d)(h) | 6,400 | 6,400 | ||
5.375% 8/15/11 | 395 | 406 | ||
Midlothian Independent School District 0% 2/15/10 | 1,525 | 1,352 | ||
Midway Independent School District 0% 8/15/19 | 3,600 | 2,108 | ||
Montgomery County Gen. Oblig.: | ||||
Series A, 5.625% 3/1/20 (FSA Insured) | 495 | 539 | ||
Series B, 5%, tender 9/1/10 (FSA Insured) (d) | 3,700 | 3,848 | ||
Navasota Independent School District: | ||||
5.25% 8/15/34 (FGIC Insured) | 2,275 | 2,445 | ||
5.5% 8/15/25 (FGIC Insured) | 1,675 | 1,857 | ||
North Central Health Facilities Dev. Corp. Rev. Series 1997 B, 5.75% 2/15/14 (MBIA Insured) | 5,215 | 5,812 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
North Forest Independent School District: | ||||
Series A, 5% 8/15/17 | $ 2,020 | $ 2,197 | ||
Series B, 5% 8/15/18 (FSA Insured) | 1,470 | 1,592 | ||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series A, 5% 1/1/28 (AMBAC Insured) | 7,175 | 7,511 | ||
Pflugerville Gen. Oblig. 5.5% 8/1/22 (AMBAC Insured) | 1,000 | 1,094 | ||
Prosper Independent School District 5.75% 8/15/29 | 1,250 | 1,371 | ||
Robstown Independent School District 5.25% 2/15/29 | 3,165 | 3,398 | ||
Rockwall Independent School District: | ||||
5.375% 2/15/19 | 25 | 27 | ||
5.375% 2/15/19 (Pre-Refunded to 2/15/12 @ 100) (h) | 1,425 | 1,539 | ||
5.375% 2/15/20 | 25 | 27 | ||
5.375% 2/15/21 | 30 | 32 | ||
5.625% 2/15/13 | 1,190 | 1,278 | ||
5.625% 2/15/14 | 1,160 | 1,243 | ||
Round Rock Independent School District 0% 8/15/11 (MBIA Insured) | 4,300 | 3,611 | ||
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series B, 5.75%, tender 11/1/11 (d)(g) | 16,000 | 16,917 | ||
San Antonio Elec. & Gas Sys. Rev. Series B: | ||||
0% 2/1/10 (Escrowed to Maturity) (h) | 19,000 | 16,913 | ||
0% 2/1/12 (Escrowed to Maturity) (h) | 7,000 | 5,757 | ||
San Antonio Gen. Oblig.: | ||||
5.5% 2/1/15 | 1,975 | 2,141 | ||
5.5% 2/1/15 (Pre-Refunded to 2/1/12 @ 100) (h) | 25 | 27 | ||
San Antonio Wtr. Sys. Rev.: | ||||
Series A, 5% 5/15/32 (FSA Insured) | 1,550 | 1,613 | ||
6.5% 5/15/10 (Escrowed to Maturity) (h) | 440 | 480 | ||
San Marcos Consolidated Independent School District: | ||||
5% 8/1/15 | 1,200 | 1,293 | ||
5% 8/1/17 | 1,175 | 1,259 | ||
5% 8/1/19 | 1,450 | 1,545 | ||
5% 8/1/22 | 1,680 | 1,781 | ||
5% 8/1/23 | 1,760 | 1,862 | ||
Snyder Independent School District: | ||||
5.25% 2/15/21 (AMBAC Insured) | 1,035 | 1,131 | ||
5.25% 2/15/22 (AMBAC Insured) | 1,090 | 1,190 | ||
5.25% 2/15/30 (AMBAC Insured) | 1,750 | 1,893 | ||
Socorro Independent School District 5.375% 8/15/18 | 60 | 64 | ||
South San Antonio Independent School District 5% 8/15/17 | 1,025 | 1,084 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) 5.5% 10/1/17 (AMBAC Insured) | $ 3,825 | $ 4,151 | ||
Spring Branch Independent School District: | ||||
Series 2001, 5.375% 2/1/13 | 3,130 | 3,328 | ||
5.375% 2/1/18 | 3,600 | 3,819 | ||
Tarrant County Health Facilities Dev. Corp. Hosp. Rev. 5.375% 11/15/20 (Pre-Refunded to 11/15/08 @ 101) (h) | 5,750 | 5,984 | ||
Texas Gen. Oblig.: | ||||
(College Student Ln. Prog.) 5% 8/1/12 (g) | 6,655 | 6,862 | ||
5.75% 8/1/26 | 3,320 | 3,585 | ||
Texas Muni. Pwr. Agcy. Rev. 0% 9/1/16 (MBIA Insured) | 5,365 | 3,625 | ||
Texas Pub. Fin. Auth. Bldg. Rev.: | ||||
Series 1990: | ||||
0% 2/1/12 (MBIA Insured) | 4,400 | 3,620 | ||
0% 2/1/14 (MBIA Insured) | 6,900 | 5,225 | ||
0% 2/1/09 (MBIA Insured) | 2,000 | 1,850 | ||
Texas Tpk. Auth. Central Tpk. Sys. Rev.: | ||||
5.5% 8/15/39 (AMBAC Insured) | 37,550 | 40,297 | ||
5.75% 8/15/38 (AMBAC Insured) | 27,550 | 29,995 | ||
Texas Tpk. Auth. Dallas North Tollway Rev. 0% 1/1/10 (Escrowed to Maturity) (h) | 3,000 | 2,679 | ||
Texas Wtr. Dev. Board Rev. Series B: | ||||
5.375% 7/15/16 | 5,000 | 5,244 | ||
5.625% 7/15/21 | 5,900 | 6,216 | ||
Trinity River Auth. Rev. (Tarrant County Wtr. Proj.) 5% 2/1/17 (MBIA Insured) | 4,930 | 5,318 | ||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.): | ||||
5.75% 7/1/27 | 1,000 | 1,060 | ||
6% 7/1/31 | 6,225 | 6,675 | ||
Weatherford Independent School District: | ||||
Series 2000, 0% 2/15/25 (Pre-Refunded to 2/15/10 @ 36.782) (h) | 6,155 | 2,012 | ||
0% 2/15/22 (Pre-Refunded to 2/15/10 @ 45.084) (h) | 2,980 | 1,194 | ||
0% 2/15/26 (Pre-Refunded to 2/15/10 @ 34.41) (h) | 2,985 | 913 | ||
0% 2/15/33 | 6,985 | 2,141 | ||
White Settlement Independent School District: | ||||
5.75% 8/15/30 | 2,890 | 3,157 | ||
5.75% 8/15/34 | 3,000 | 3,274 | ||
Wichita Falls Wtr. & Swr. Rev. Series 2001, 5.375% 8/1/24 (AMBAC Insured) | 3,000 | 3,191 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Williamson County Gen. Oblig.: | ||||
5.5% 2/15/18 (FSA Insured) | $ 60 | $ 64 | ||
5.5% 2/15/20 (FSA Insured) | 65 | 69 | ||
Wylie Independent School District 0% 8/15/20 | 1,790 | 998 | ||
602,440 | ||||
Utah - 1.0% | ||||
Intermountain Pwr. Agcy. Pwr. Supply Rev.: | ||||
Series A: | ||||
6% 7/1/16 (AMBAC Insured) | 5,640 | 5,816 | ||
6% 7/1/16 (Escrowed to Maturity) (h) | 9,205 | 9,469 | ||
Series B, 5.75% 7/1/16 (MBIA Insured) | 11,230 | 11,567 | ||
Salt Lake City Hosp. Rev. (Intermountain Health Care Hosp., Inc. Proj.) Series A, 8.125% 5/15/15 (Escrowed to Maturity) (h) | 2,975 | 3,481 | ||
Salt Lake County Hosp. Rev. (IHC Health Svcs., Inc. Proj.) 5.5% 5/15/11 (AMBAC Insured) | 9,000 | 9,602 | ||
Utah Associated Muni. Pwr. Sys. Rev. (Payson Pwr. Proj.) Series A: | ||||
5.25% 4/1/16 (FSA Insured) | 3,590 | 3,872 | ||
5.25% 4/1/17 (FSA Insured) | 4,335 | 4,666 | ||
48,473 | ||||
Vermont - 0.4% | ||||
Vermont Edl. & Health Bldg. Fing. Agcy. Rev.: | ||||
(Fletcher Allen Health Care, Inc. Proj.): | ||||
Series 2000 A, 6.125% 12/1/27 (AMBAC Insured) | 8,600 | 9,335 | ||
Series A, 5.75% 12/1/18 (AMBAC Insured) | 3,100 | 3,330 | ||
(Middlebury College Proj. Series 2006 A, 5% 10/31/46 | 3,675 | 3,873 | ||
16,538 | ||||
Virginia - 0.2% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.05%, tender 4/1/08 (d)(g) | 3,900 | 3,876 | ||
Peninsula Ports Auth. Hosp. Facilities Rev. (Whittaker Memorial Hosp. Proj.) 8.7% 8/1/23 | 1,440 | 1,658 | ||
Virginia Beach Dev. Auth. Hosp. Facilities Rev. (Virginia Beach Gen. Hosp. Proj.): | ||||
6% 2/15/12 (AMBAC Insured) | 2,150 | 2,370 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Virginia - continued | ||||
Virginia Beach Dev. Auth. Hosp. Facilities Rev. (Virginia Beach Gen. Hosp. Proj.): - continued | ||||
6% 2/15/13 (AMBAC Insured) | $ 1,460 | $ 1,633 | ||
Virginia Hsg. Dev. Auth. Multi-family Hsg. Rev. Series I, 5.95% 5/1/09 (g) | 1,890 | 1,908 | ||
11,445 | ||||
Washington - 5.1% | ||||
Chelan County Pub. Util. District #1 Columbia River-Rock Island Hydro-Elec. Sys. Rev. Series A: | ||||
0% 6/1/17 (MBIA Insured) | 7,200 | 4,633 | ||
0% 6/1/29 (MBIA Insured) | 14,995 | 5,484 | ||
Chelan County Pub. Util. District #1 Rev. Series 2005 A, 5.125%, tender 7/1/15 (FGIC Insured) (d)(g) | 2,430 | 2,577 | ||
Chelan County School District #246, Wenatchee 5.5% 12/1/19 (FSA Insured) | 3,535 | 3,839 | ||
Clark County School District #37, Vancouver Series C, 0% 12/1/19 (FGIC Insured) | 2,030 | 1,169 | ||
Energy Northwest Elec. Rev.: | ||||
(#1 Proj.) Series 2006 A, 5% 7/1/15 | 8,000 | 8,655 | ||
(#3 Proj.) Series B, 6% 7/1/16 (AMBAC Insured) | 28,000 | 31,042 | ||
Grant County Pub. Util. District #2 Wanapum Hydro Elec. Rev. Series B: | ||||
5.25% 1/1/18 (FGIC Insured) (g) | 1,590 | 1,698 | ||
5.25% 1/1/20 (FGIC Insured) (g) | 1,760 | 1,866 | ||
5.25% 1/1/23 (FGIC Insured) (g) | 2,055 | 2,165 | ||
King County Swr. Rev. Series B, 5.125% 1/1/33 (FSA Insured) | 22,390 | 23,447 | ||
Mead School District #354, Spokane County 5.375% 12/1/19 (FSA Insured) | 2,575 | 2,822 | ||
Pierce County School District #10 Tacoma Series A, 5% 12/1/18 (FSA Insured) | 4,000 | 4,316 | ||
Port of Seattle Rev. Series D: | ||||
5.75% 11/1/13 (FGIC Insured) (g) | 1,500 | 1,641 | ||
5.75% 11/1/14 (FGIC Insured) (g) | 3,055 | 3,342 | ||
5.75% 11/1/16 (FGIC Insured) (g) | 2,250 | 2,451 | ||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/11 (FGIC Insured) | 1,155 | 1,190 | ||
Snohomish County School District #2, Everett 5.5% 12/1/16 (FSA Insured) | 1,650 | 1,798 | ||
Snohomish County School District #4, Lake Stevens 5.125% 12/1/19 (FGIC Insured) | 1,875 | 2,033 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Washington - continued | ||||
Spokane Pub. Facilities District Hotel/Motel Tax & Sales/Use Tax Rev.: | ||||
5.75% 12/1/19 (MBIA Insured) | $ 2,000 | $ 2,223 | ||
5.75% 12/1/21 (MBIA Insured) | 2,000 | 2,220 | ||
Thurston & Pierce Counties Cmnty. Schools 5.25% 12/1/17 (FSA Insured) | 2,000 | 2,156 | ||
Washington Gen. Oblig.: | ||||
Series 2001 C, 5.25% 1/1/16 | 7,070 | 7,506 | ||
Series C, 5.25% 1/1/26 (FSA Insured) | 15,800 | 16,731 | ||
Series R 97A: | ||||
0% 7/1/17 | 7,045 | 4,522 | ||
0% 7/1/19 (MBIA Insured) | 9,100 | 5,414 | ||
Washington Health Care Facilities Auth. Rev. (Providence Health Systems Proj.) Series A, 5.5% 10/1/12 (MBIA Insured) | 5,455 | 5,815 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #1 Rev.: | ||||
(Bonneville Pwr. Administration Proj.) Series B, 7% 7/1/08 | 1,000 | 1,047 | ||
Series A, 7% 7/1/08 | 310 | 324 | ||
Series B, 5.125% 7/1/13 | 14,600 | 14,990 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev.: | ||||
Series A, 0% 7/1/11 (Escrowed to Maturity) (h) | 1,350 | 1,137 | ||
5.4% 7/1/12 | 56,550 | 61,079 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev.: | ||||
Series A, 0% 7/1/12 (MBIA Insured) | 4,000 | 3,206 | ||
0% 7/1/10 (MBIA Insured) | 2,800 | 2,445 | ||
236,983 | ||||
Wisconsin - 0.7% | ||||
Badger Tobacco Asset Securitization Corp. 6.125% 6/1/27 | 5,615 | 6,011 | ||
Douglas County Gen. Oblig. 5.5% 2/1/19 (FGIC Insured) | 1,035 | 1,112 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Wheaton Franciscan Svcs., Inc. Proj.): | ||||
Series A: | ||||
5.5% 8/15/15 | 1,480 | 1,587 | ||
5.5% 8/15/16 | 1,545 | 1,653 | ||
5.75% 8/15/30 (Pre-Refunded to 2/15/12 @ 101) (h) | 14,250 | 15,703 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Wisconsin - continued | ||||
Wisconsin Health & Edl. Facilities Auth. Rev.: - continued | ||||
(Wheaton Franciscan Svcs., Inc. Proj.): | ||||
6.25% 8/15/22 (Pre-Refunded to 2/15/12 @ 101) (h) | $ 4,300 | $ 4,838 | ||
Series A, 5.375% 2/15/34 | 3,250 | 3,436 | ||
34,340 | ||||
Wyoming - 0.1% | ||||
Gillette Spl. Purp. Wtr. & Swr. Utils. Sys. Rev. 7.7% 12/1/10 (Escrowed to Maturity) (h) | 4,830 | 5,429 | ||
TOTAL MUNICIPAL BONDS (Cost $4,554,784) | 4,720,195 |
Money Market Funds - 0.0% | |||
Shares | |||
Fidelity Municipal Cash Central Fund, 3.99% (e)(f) | 138,900 | 139 | |
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $4,554,923) | 4,720,334 | ||
NET OTHER ASSETS - (0.7)% | (34,280) | ||
NET ASSETS - 100% | $ 4,686,054 |
Legend |
(a) Security initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end. |
(b) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(d) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(e) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(g) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(h) Security collateralized by an amount sufficient to pay interest and principal. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,833,000 or 0.1% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Massachusetts Health & Edl. Facilities Auth. Rev. (Blood Research Institute Proj.) Series A, 6.5% 2/1/22 | 9/3/92 | $ 3,611 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 5 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 37.6% |
Electric Utilities | 11.2% |
Escrowed/Pre-Refunded | 9.8% |
Special Tax | 9.7% |
Transportation | 8.8% |
Water & Sewer | 8.1% |
Health Care | 8.4% |
Others* (individually less than 5%) | 6.4% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | December 31, 2006 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $4,554,784) | $ 4,720,195 | |
Fidelity Central Funds (cost $139) | 139 | |
Total Investments (cost $4,554,923) | $ 4,720,334 | |
Cash | 11,501 | |
Receivable for fund shares sold | 1,504 | |
Interest receivable | 61,274 | |
Prepaid expenses | 22 | |
Other receivables | 174 | |
Total assets | 4,794,809 | |
Liabilities | ||
Payable for investments purchased | $ 17,961 | |
Delayed delivery | 77,118 | |
Payable for fund shares redeemed | 6,171 | |
Distributions payable | 5,274 | |
Accrued management fee | 1,439 | |
Other affiliated payables | 720 | |
Other payables and accrued expenses | 72 | |
Total liabilities | 108,755 | |
Net Assets | $ 4,686,054 | |
Net Assets consist of: | ||
Paid in capital | $ 4,514,442 | |
Undistributed net investment income | 3,035 | |
Accumulated undistributed net realized gain (loss) on investments | 3,166 | |
Net unrealized appreciation (depreciation) on investments | 165,411 | |
Net Assets, for 366,929 shares outstanding | $ 4,686,054 | |
Net Asset Value, offering price and redemption price per share ($4,686,054 ÷ 366,929 shares) | $ 12.77 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Amounts in thousands | Year ended December 31, 2006 | |
Investment Income | ||
Interest | $ 210,795 | |
Income from Fidelity Central Funds | 5 | |
Total income | 210,800 | |
Expenses | ||
Management fee | $ 16,985 | |
Transfer agent fees | 3,567 | |
Accounting fees and expenses | 619 | |
Custodian fees and expenses | 70 | |
Independent trustees' compensation | 18 | |
Registration fees | 93 | |
Audit | 85 | |
Legal | 19 | |
Miscellaneous | 70 | |
Total expenses before reductions | 21,526 | |
Expense reductions | (1,031) | 20,495 |
Net investment income | 190,305 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 41,174 | |
Futures contracts | 788 | |
Total net realized gain (loss) | 41,962 | |
Change in net unrealized appreciation (depreciation) on investment securities | (22,071) | |
Net gain (loss) | 19,891 | |
Net increase (decrease) in net assets resulting from operations | $ 210,196 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 190,305 | $ 197,583 |
Net realized gain (loss) | 41,962 | 68,032 |
Change in net unrealized appreciation (depreciation) | (22,071) | (95,214) |
Net increase (decrease) in net assets resulting | 210,196 | 170,401 |
Distributions to shareholders from net investment income | (189,630) | (196,839) |
Distributions to shareholders from net realized gain | (43,709) | (69,217) |
Total distributions | (233,339) | (266,056) |
Share transactions | 681,749 | 594,138 |
Reinvestment of distributions | 157,888 | 179,128 |
Cost of shares redeemed | (806,663) | (631,498) |
Net increase (decrease) in net assets resulting from share transactions | 32,974 | 141,768 |
Redemption fees | 18 | 29 |
Total increase (decrease) in net assets | 9,849 | 46,142 |
Net Assets | ||
Beginning of period | 4,676,205 | 4,630,063 |
End of period (including undistributed net investment income of $3,035 and undistributed net investment income of $2,276, respectively) | $ 4,686,054 | $ 4,676,205 |
Other Information Shares | ||
Sold | 53,337 | 45,559 |
Issued in reinvestment of distributions | 12,364 | 13,796 |
Redeemed | (63,411) | (48,528) |
Net increase (decrease) | 2,290 | 10,827 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 12.82 | $ 13.09 | $ 13.18 | $ 13.22 | $ 12.68 |
Income from Investment Operations | |||||
Net investment income B | .529 | .549 | .571 | .585 | .603 |
Net realized and unrealized gain (loss) | .068 | (.080) | .035 | .162 | .697 |
Total from investment operations | .597 | .469 | .606 | .747 | 1.300 |
Distributions from net investment income | (.527) | (.547) | (.571) | (.585) | (.600) |
Distributions from net realized gain | (.120) | (.192) | (.125) | (.202) | (.160) |
Total distributions | (.647) | (.739) | (.696) | (.787) | (.760) |
Redemption fees added to paid | - | - | - | - | - |
Net asset value, end of period | $ 12.77 | $ 12.82 | $ 13.09 | $ 13.18 | $ 13.22 |
Total Return A | 4.78% | 3.66% | 4.73% | 5.80% | 10.48% |
Ratios to Average Net Assets C, E | |||||
Expenses before reductions | .47% | .47% | .47% | .48% | .48% |
Expenses net of fee waivers, | .47% | .47% | .47% | .48% | .48% |
Expenses net of all reductions | .45% | .45% | .47% | .47% | .46% |
Net investment income | 4.15% | 4.22% | 4.36% | 4.42% | 4.62% |
Supplemental Data | |||||
Net assets, end of period | $ 4,686 | $ 4,676 | $ 4,630 | $ 4,784 | $ 4,801 |
Portfolio turnover rate D | 25% | 25% | 20% | 23% | 23% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2006
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Municipal Income Fund (the Fund)is a fund of Fidelity Municipal Trust (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 Massachusetts business trust. The Fund may invest in Fidelity Central Funds which are open-end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund, which are also consistently followed by the Fidelity Central Funds:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Investment Transactions and Income. Security transactions, including the Fund's investment activity in the Fidelity Central Funds, are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and income distributions from the Fidelity Central Funds are accrued as earned, with any income distributions receivable as of period end included in Interest Receivable on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Annual Report
1. Significant Accounting Policies - continued
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to futures transactions.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 169,396 | |
Unrealized depreciation | (3,995) | |
Net unrealized appreciation (depreciation) | 165,401 | |
Undistributed ordinary income | 256 | |
Undistributed long-term capital gain | 2,102 | |
Cost for federal income tax purposes | $ 4,554,933 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, 2006 | December, 31, 2005 | |
Tax-exempt Income | $ 189,630 | $ 196,839 |
Ordinary Income | - | 5,428 |
Long-term Capital Gains | 43,709 | 63,789 |
Total | $ 233,339 | $ 266,056 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of
Annual Report
2. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. The Fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally 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. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,167,278 and $1,133,861, respectively.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Fund. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the Fund's transfer and shareholder servicing agent and accounting functions. The Fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the transfer agent fees were equivalent to an annual rate of .08% of average net assets.
Investments in Fidelity Central Funds. The Fund may invest in Fidelity Central Funds. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $10 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Annual Report
6. Expense Reductions.
Through arrangements with the Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and transfer agent expenses by $70 and $961, respectively.
7. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2006, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Municipal Income Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 13, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Each of the Trustees oversees 348 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (76) | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). | |
Robert L. Reynolds (54) | |
Year of Election or Appointment: 2003 Mr. Reynolds is President and a Director of FMR (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and FMR Co., Inc. (2005-present). Mr. Reynolds also serves as Vice Chairman (2006- |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (58) | |
Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). | |
Albert R. Gamper, Jr. (64) | |
Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. | |
George H. Heilmeier (70) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. | |
James H. Keyes (66) | |
Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). | |
Marie L. Knowles (60) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (62) | |
Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. | |
Cornelia M. Small (62) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (67) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), and Metalmark Capital (private equity investment firm, 2005-present). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (67) | |
Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (62) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001- present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. | |
Kimberley H. Monasterio (43) | |
Year of Election or Appointment: 2007 President and Treasurer of Municipal Income. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
Boyce I. Greer (50) | |
Year of Election or Appointment: 2006 Vice President of Municipal Income. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002). | |
David L. Murphy (58) | |
Year of Election or Appointment: 2005 Vice President of Municipal Income. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). | |
Thomas J. Silvia (45) | |
Year of Election or Appointment: 2005 Vice President of Municipal Income. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present), certain Balanced Funds (2005-present), certain Asset Allocation Funds (2005-present), and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004). | |
Christine J. Thompson (48) | |
Year of Election or Appointment: 2002 Vice President of Municipal Income. Ms. Thompson also serves as Vice President of other funds advised by FMR. Prior to assuming her current responsibilities, Ms. Thompson worked as an analyst and manager. | |
Eric D. Roiter (58) | |
Year of Election or Appointment: 1998 Secretary of Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). | |
Stuart Fross (47) | |
Year of Election or Appointment: 2003 Assistant Secretary of Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003-present), Vice President and Secretary of FDC (2005-present), and is an employee of FMR. | |
R. Stephen Ganis (40) | |
Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Municipal Income. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). | |
Joseph B. Hollis (58) | |
Year of Election or Appointment: 2006 Chief Financial Officer of Municipal Income. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005- present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). | |
Kenneth A. Rathgeber (59) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005- present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
Bryan A. Mehrmann (45) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Municipal Income. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). | |
Kenneth B. Robins (37) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Municipal Income. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999- | |
Robert G. Byrnes (40) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Municipal Income. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). | |
John H. Costello (60) | |
Year of Election or Appointment: 1986 Assistant Treasurer of Municipal Income. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (52) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (51) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Gary W. Ryan (48) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Municipal Income. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). | |
Salvatore Schiavone (41) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Municipal Income. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The Board of Trustees of Fidelity Municipal Income Fund voted to pay on February 5, 2007, to shareholders of record at the opening of business on February 2, 2007, a distribution of $.01 per share derived from capital gains realized from sales of portfolio securities.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2006, $40,293,207, or, if subsequently determined to be different, the net capital gain of such year.
During fiscal year ended 2006, 100% of the fund's income dividends was free from federal income tax, and 6.85% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2007 of amounts for use in preparing 2006 income tax returns.
Annual Report
Proxy Voting Results
A special meeting of the fund's shareholders was held on January 18, 2006. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To elect a Board of Trustees. A | ||
# of | % of | |
Dennis J. Dirks | ||
Affirmative | 4,012,578,790.76 | 95.238 |
Withheld | 200,653,306.55 | 4.762 |
TOTAL | 4,213,232,097.31 | 100.000 |
Albert R. Gamper, Jr. | ||
Affirmative | 4,015,643,707.84 | 95.310 |
Withheld | 197,588,389.47 | 4.690 |
TOTAL | 4,213,232,097.31 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,004,345,809.00 | 95.042 |
Withheld | 208,886,288.31 | 4.958 |
TOTAL | 4,213,232,097.31 | 100.000 |
George H. Heilmeier | ||
Affirmative | 4,008,127,523.93 | 95.132 |
Withheld | 205,104,573.38 | 4.868 |
TOTAL | 4,213,232,097.31 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 3,993,175,527.66 | 94.777 |
Withheld | 220,056,569.65 | 5.223 |
TOTAL | 4,213,232,097.31 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 3,987,333,615.26 | 94.638 |
Withheld | 225,898,482.05 | 5.362 |
TOTAL | 4,213,232,097.31 | 100.000 |
Stephen P. Jonas | ||
Affirmative | 4,010,007,680.52 | 95.177 |
Withheld | 203,224,416.79 | 4.823 |
TOTAL | 4,213,232,097.31 | 100.000 |
# of | % of | |
Marie L. Knowles | ||
Affirmative | 4,010,231,303.96 | 95.182 |
Withheld | 203,000,793.35 | 4.818 |
TOTAL | 4,213,232,097.31 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,009,136,177.44 | 95.156 |
Withheld | 204,095,919.87 | 4.844 |
TOTAL | 4,213,232,097.31 | 100.000 |
William O. McCoy | ||
Affirmative | 4,001,996,735.35 | 94.986 |
Withheld | 211,235,361.96 | 5.014 |
TOTAL | 4,213,232,097.31 | 100.000 |
Robert L. Reynolds | ||
Affirmative | 4,010,560,206.65 | 95.190 |
Withheld | 202,671,890.66 | 4.810 |
TOTAL | 4,213,232,097.31 | 100.000 |
Cornelia M. Small | ||
Affirmative | 4,011,161,760.21 | 95.204 |
Withheld | 202,070,337.10 | 4.796 |
TOTAL | 4,213,232,097.31 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,001,217,912.57 | 94.968 |
Withheld | 212,014,184.74 | 5.032 |
TOTAL | 4,213,232,097.31 | 100.000 |
Kenneth L. Wolfe | ||
Affirmative | 4,011,439,868.05 | 95.211 |
Withheld | 201,792,229.26 | 4.789 |
TOTAL | 4,213,232,097.31 | 100.000 |
A Denotes trust-wide proposal and voting results. |
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* 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.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)
Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)
For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)
For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
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Annual Report
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61 Broadway
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733 Third Avenue
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2070 Broadway
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1075 Northern Blvd.
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799 Central Park Avenue
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North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
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Ohio
3805 Edwards Road
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12532 Memorial Drive
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411 108th Avenue, N.E.
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1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
Annual Report
Annual Report
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Fidelity®
Ohio Municipal Income Fund
and
Fidelity
Ohio Municipal Money Market
Fund
Annual Report
December 31, 2006
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity Ohio Municipal Income Fund | ||
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Fidelity Ohio Municipal Money Market Fund | ||
Investment Changes/ | A summary of major shifts in the fund's investments over the past six months and one year and performance information. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the Financial Statements | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
We have seen consistently strong performance from stocks and bonds of late, and some relief in energy prices, but the housing market slowdown bears watching for how it might affect the consumer. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Fidelity Ohio Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2006 | Past 1 | Past 5 | Past 10 |
Fidelity® OH Municipal Income Fund | 4.47% | 5.42% | 5.46% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Ohio Municipal Income Fund on December 31, 1996. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Fidelity Ohio Municipal Income Fund
Management's Discussion of Fund Performance
Comments from Jamie Pagliocco, Portfolio Manager of Fidelity® Ohio Municipal Income Fund
Growing investor demand and a strong second-half rally helped municipal bonds post solid returns and take their place as one of the best performing investment-grade debt classes for the year ending December 31, 2006. Throughout roughly the first six months of the period, muni bond prices declined as the Federal Reserve Board raised short-term interest rates to return them to a more "neutral level" and fend off inflation. Beginning in mid-summer 2006, however, munis rebounded amid hopes that the Fed would pause its rate hike campaign. Those hopes were eventually actualized when the central bank left rates unchanged at its August, September, October and December Open Market Committee meetings. Demand - which was amplified by non-traditional investors such as hedge funds - increased substantially, as investors sought out munis for their attractive after-tax yields. Investors also were drawn to the fact that unlike long-term Treasury bonds, which generally yielded less than short-term Treasuries throughout much of the period, long-term rates for munis were higher than short rates, giving investors the opportunity to lock in attractive long-term yields. Against this backdrop, the Lehman Brothers® Municipal Bond Index - a performance measure of approximately 34,000 investment-grade, fixed-rate, tax-exempt bonds - returned 4.84%. In comparison, the overall taxable bond market, as measured by the Lehman Brothers Aggregate Bond Index, returned 4.33%.
During the past year, Ohio Municipal Income Fund gained 4.47% and the Lehman Brothers Ohio 4 Plus Year Enhanced Municipal Bond Index returned 4.82%. The Ohio muni market performed in line with the national average, bolstered by solid demand for tax-free investments. Benefiting the fund's performance relative to the index was our overweighting in bonds that were prerefunded during the period. Prerefunding resulted in relatively strong returns as the bonds' maturities shortened and their credit quality improved. Our ability to access Fidelity's research and trading capabilities also helped, allowing us to invest in securities that were priced attractively. Our decision to slightly overweight lower-quality investment-grade securities overall worked to our advantage because they generally outpaced higher-quality securities, although our underweighting in lower-quality health care bonds detracted from performance. The fund also was hurt by its underexposure to longer-term bonds, which outpaced the intermediate-term securities we emphasized.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2006 to December 31, 2006).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Shareholder Expense Example - continued
Beginning | Ending | Expenses Paid | |
Fidelity Ohio Municipal Income Fund | |||
Actual | $ 1,000.00 | $ 1,046.70 | $ 2.53 |
HypotheticalA | $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Fidelity Ohio Municipal Money Market Fund | |||
Actual | $ 1,000.00 | $ 1,015.80 | $ 2.69 |
HypotheticalA | $ 1,000.00 | $ 1,022.53 | $ 2.70 |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annualized | |
Fidelity Ohio Municipal Income Fund | .49% |
Fidelity Ohio Municipal Money Market Fund | .53% |
Annual Report
Fidelity Ohio Municipal Income Fund
Investment Changes
Top Five Sectors as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
General Obligations | 38.3 | 43.0 |
Education | 14.2 | 12.8 |
Escrowed/Pre-Refunded | 12.6 | 6.3 |
Water & Sewer | 11.7 | 14.5 |
Health Care | 6.8 | 6.9 |
Average Years to Maturity as of December 31, 2006 | ||
6 months ago | ||
Years | 13.4 | 13.4 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2006 | ||
6 months ago | ||
Years | 6.4 | 6.6 |
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 this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | AAA 64.8% | ![]() | AAA 62.5% | ||||
![]() | AA,A 31.8% | ![]() | AA,A 33.0% | ||||
![]() | BBB 2.5% | ![]() | BBB 2.3% | ||||
![]() | BB and Below 0.1% | ![]() | BB and Below 0.1% | ||||
![]() | Not Rated 0.0% | ![]() | Not Rated 0.3% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's ® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ® ratings. Percentages are adjusted for the effect of futures contracts, if applicable. |
Annual Report
Fidelity Ohio Municipal Income Fund
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Bonds - 99.2% | ||||
Principal Amount | Value | |||
Guam - 0.4% | ||||
Guam Ed. Fing. Foundation Series A, 5% 10/1/23 | $ 1,000,000 | $ 1,055,170 | ||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35 | 470,000 | 504,230 | ||
1,559,400 | ||||
Ohio - 96.7% | ||||
Adams County Valley Local School District (Adams & Highland County Proj.) 5.25% 12/1/21 | 2,000,000 | 2,021,140 | ||
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A: | ||||
5% 1/1/14 | 1,500,000 | 1,578,540 | ||
5% 1/1/15 | 1,300,000 | 1,373,593 | ||
Akron City Non-tax Rev. Econ. Dev. Series 1997, 6% 12/1/12 (MBIA Insured) | 1,250,000 | 1,399,175 | ||
Akron Ctfs. of Prtn. 5% 12/1/15 | 1,475,000 | 1,593,605 | ||
Akron Wtrwks. Rev. 5.25% 12/1/19 (MBIA Insured) | 1,630,000 | 1,761,134 | ||
Avon Lake City School District 5% 12/1/14 | 1,205,000 | 1,308,076 | ||
Brookville Local School District: | ||||
5% 12/1/31 (Pre-Refunded to 12/1/13 @ 100) | 1,000,000 | 1,080,480 | ||
5.25% 12/1/20 (Pre-Refunded to 12/1/13 @ 100) (c) | 1,875,000 | 2,054,269 | ||
Buckeye Valley Local School District Delaware County Series A, 6.85% 12/1/15 (MBIA Insured) | 2,305,000 | 2,603,912 | ||
Butler County Gen. Oblig. 5.25% 12/1/16 | 1,820,000 | 1,983,582 | ||
Butler County Sales Tax (Govt. Svcs. Ctr. Proj.) Series A, 5% 12/15/16 (AMBAC Insured) | 2,455,000 | 2,645,115 | ||
Canal Winchester Local School District 5% 12/1/18 (MBIA Insured) | 2,035,000 | 2,203,620 | ||
Chagrin Falls Exempted Village School District 5.25% 12/1/19 (MBIA Insured) | 1,915,000 | 2,086,680 | ||
Cincinnati City School District: | ||||
5.25% 6/1/16 (FSA Insured) | 1,500,000 | 1,625,640 | ||
5.25% 12/1/17 (Pre-Refunded to 12/1/13 @ 100) (c) | 2,000,000 | 2,191,220 | ||
5.25% 12/1/18 (FGIC Insured) | 3,000,000 | 3,385,800 | ||
Cincinnati Gen. Oblig. 5.375% 12/1/20 | 2,000,000 | 2,130,540 | ||
Cincinnati Student Ln. Fdg. Corp. Student Ln. Rev. Series A, 7.25% 2/1/08 (b) | 4,000,000 | 4,004,520 | ||
Cincinnati Wtr. Sys. Rev. Series 2001, 5.5% 12/1/17 (Pre-Refunded to 6/1/11 @ 100) (c) | 2,000,000 | 2,151,020 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Cleveland Arpt. Sys. Rev. Series C, 5% 1/1/20 | $ 3,500,000 | $ 3,767,995 | ||
Cleveland Muni. School District: | ||||
5.25% 12/1/17 (FSA Insured) | 2,215,000 | 2,417,628 | ||
5.25% 12/1/19 (FSA Insured) | 1,045,000 | 1,141,297 | ||
Cleveland Parking Facilities Rev. 5.25% 9/15/17 | 4,480,000 | 5,000,442 | ||
Cleveland Pub. Pwr. Sys. Rev.: | ||||
Series A: | ||||
0% 11/15/10 (MBIA Insured) | 1,435,000 | 1,238,405 | ||
0% 11/15/11 (MBIA Insured) | 2,395,000 | 1,989,550 | ||
0% 11/15/10 (Escrowed to Maturity) (c) | 1,250,000 | 1,079,975 | ||
0% 11/15/11 (Escrowed to Maturity) (c) | 290,000 | 241,135 | ||
Cleveland State Univ. Gen. Receipts Series 2003 A, 5% 6/1/18 (FGIC Insured) | 2,490,000 | 2,638,105 | ||
Cleveland Wtrwks. Rev.: | ||||
(First Mtg. Prog.): | ||||
Series G, 5.5% 1/1/13 (MBIA Insured) | 2,450,000 | 2,596,878 | ||
Series H, 5.75% 1/1/16 (MBIA Insured) | 45,000 | 45,492 | ||
Series I: | ||||
5% 1/1/28 (FSA Insured) | 25,000 | 25,479 | ||
5% 1/1/28 (Pre-Refunded to 1/1/08 @ 101) (c) | 25,000 | 25,587 | ||
Columbus City School District: | ||||
(School Facilities Construction and Impt. Proj.) 5% 12/1/18 (FSA Insured) | 5,000,000 | 5,452,550 | ||
5.25% 12/1/25 (Pre-Refunded to 12/1/14 @ 100) (c) | 3,780,000 | 4,175,690 | ||
Cuyahoga County Gen. Oblig.: | ||||
Series A: | ||||
0% 10/1/11 (MBIA Insured) | 2,400,000 | 2,012,352 | ||
0% 10/1/12 (MBIA Insured) | 1,405,000 | 1,134,453 | ||
5% 12/1/19 | 3,000,000 | 3,300,060 | ||
Dayton School District (School Facility Contruction & Impt. Proj.) Series A, 5% 12/1/31 (FGIC Insured) | 5,000,000 | 5,268,450 | ||
Erie County Gen. Oblig. 5.5% 12/1/18 (FSA Insured) | 1,265,000 | 1,399,242 | ||
Fairfield City School District 7.45% 12/1/14 | 1,000,000 | 1,186,670 | ||
Fairless Local School District 5% 12/1/32 (FSA Insured) | 3,300,000 | 3,498,759 | ||
Fairview Park City School District Gen. Oblig. 5% 12/1/33 (MBIA Insured) | 4,350,000 | 4,622,745 | ||
Fairview Park Gen. Oblig. 5% 12/1/30 (MBIA Insured) | 5,955,000 | 6,337,668 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Franklin County Convention Facilities Auth. Tax & Lease Rev. 5.25% 12/1/19 (AMBAC Insured) | $ 4,000,000 | $ 4,278,000 | ||
Franklin County Hosp. Rev. 5.5% 5/1/13 (Pre-Refunded to 5/1/11 @ 101) (c) | 1,130,000 | 1,223,485 | ||
Franklin County Rev. (OCLC Online Computer Library Ctr., Inc. Proj.) 5% 4/15/12 | 2,505,000 | 2,603,672 | ||
Gallia County Hosp. Facilities Rev. (Holzer Med. Ctr. Proj.) 5.125% 10/1/13 (AMBAC Insured) | 3,000,000 | 3,103,050 | ||
Gallia County Local School District (School Impt. Proj.) 5% 12/1/33 (FSA Insured) | 3,000,000 | 3,206,490 | ||
Greene County Swr. Sys. Rev. 0% 12/1/09 | 775,000 | 695,625 | ||
Hamilton County Convention Facilities Auth. Rev.: | ||||
5% 12/1/17 (FGIC Insured) | 1,985,000 | 2,129,528 | ||
5% 12/1/18 (FGIC Insured) | 1,075,000 | 1,151,132 | ||
5% 12/1/19 (FGIC Insured) | 2,190,000 | 2,340,716 | ||
5% 12/1/19 (FGIC Insured) | 1,130,000 | 1,207,767 | ||
Hamilton County Econ. Dev. Rev. (King Highland Cmnty. Urban Redev. Corp. Proj.) Series A, 5% 6/1/17 | 1,070,000 | 1,159,366 | ||
Hamilton County Hosp. Facilities Rev. (Childrens Hosp. Med. Ctr. Proj.) Series J: | ||||
5.25% 5/15/15 (FGIC Insured) | 1,835,000 | 1,994,608 | ||
5.25% 5/15/17 (FGIC Insured) | 2,585,000 | 2,797,797 | ||
5.25% 5/15/18 (FGIC Insured) | 2,720,000 | 2,936,675 | ||
Hamilton County Sales Tax Series B, 5.25% 12/1/32 (AMBAC Insured) | 4,750,000 | 5,013,150 | ||
Hamilton County Swr. Sys. Rev. Series 06A, 5% 12/1/17 (MBIA Insured) | 2,050,000 | 2,232,020 | ||
Hamilton Wtrwks. Rev. 5% 10/15/16 (MBIA Insured) | 1,000,000 | 1,069,200 | ||
Hilliard Gen. Oblig. 5% 12/1/18 (MBIA Insured) | 1,000,000 | 1,075,060 | ||
Hilliard School District 0% 12/1/11 (FGIC Insured) | 3,720,000 | 3,099,876 | ||
Huber Heights Wtr. Sys. Rev. 5% 12/1/30 | 2,285,000 | 2,440,609 | ||
Kent City School District Series 2004, 5% 12/1/20 (FGIC Insured) | 1,400,000 | 1,497,006 | ||
Kings Local School District 5% 12/1/19 (MBIA Insured) | 1,365,000 | 1,469,586 | ||
Lakewood City School District 5.25% 12/1/15 | 1,000,000 | 1,100,360 | ||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.): | ||||
5.5% 2/15/10 | 1,000,000 | 1,040,490 | ||
5.5% 2/15/11 | 1,875,000 | 1,969,013 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.): - continued | ||||
5.5% 2/15/12 | $ 1,000,000 | $ 1,062,050 | ||
Licking Heights Local School District: | ||||
(Facilities Construction & Impt. Proj.) Series A, 5% 12/1/32 (MBIA Insured) | 3,860,000 | 4,082,336 | ||
5.25% 12/1/23 (Pre-Refunded to 6/1/14 @ 100) (c) | 2,660,000 | 2,923,127 | ||
Lorain County 5.5% 12/1/22 (FGIC Insured) | 2,985,000 | 3,256,128 | ||
Lucas County Hosp. Rev. (Promedia Health Care Oblig. Group Proj.): | ||||
5.375% 11/15/23 (AMBAC Insured) | 5,000,000 | 5,227,300 | ||
5.625% 11/15/12 (AMBAC Insured) | 2,000,000 | 2,118,820 | ||
5.625% 11/15/13 (AMBAC Insured) | 1,200,000 | 1,270,956 | ||
Marysville Exempted Village School District 5% 12/1/29 (FSA Insured) | 4,000,000 | 4,281,680 | ||
Middletown City School District: | ||||
5% 12/1/17 (FGIC Insured) | 1,175,000 | 1,248,919 | ||
5% 12/1/19 (FGIC Insured) | 1,110,000 | 1,183,282 | ||
Milford Exempt Village School District 5.125% 12/1/30 (FSA Insured) | 5,335,000 | 5,595,028 | ||
Montgomery County Gen. Oblig. 5.5% 12/1/25 | 2,235,000 | 2,380,096 | ||
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series A: | ||||
6% 12/1/19 | 1,470,000 | 1,596,655 | ||
6% 12/1/19 (Escrowed to Maturity) (c) | 1,530,000 | 1,657,724 | ||
6% 12/1/26 (Escrowed to Maturity) (c) | 3,000,000 | 3,247,410 | ||
Montgomery County Wtr. Sys. Rev. Series 2002, 5.375% 11/15/16 (AMBAC Insured) | 2,200,000 | 2,391,334 | ||
North Olmsted Gen. Oblig. Series D, 5.25% 12/1/20 (AMBAC Insured) | 2,075,000 | 2,294,328 | ||
Ohio Air Quality Dev. Auth. Rev.: | ||||
(Ohio Edison Co. Proj.) Series A, 3.25%, tender 2/8/07 (AMBAC Insured) (a) | 2,000,000 | 1,999,340 | ||
Series 2002 A, 4.2%, tender 1/2/07 (a) | 3,000,000 | 3,000,000 | ||
Ohio Bldg. Auth.: | ||||
(Adult Correctional Bldg. Fund Prog.) Series 2001 A, 5.5% 10/1/12 (FSA Insured) | 1,000,000 | 1,078,470 | ||
(Juvenile Correctional Bldg. Fund Prog.): | ||||
Series A, 5.5% 4/1/12 | 2,960,000 | 3,171,995 | ||
5% 4/1/17 (MBIA Insured) | 2,485,000 | 2,634,995 | ||
(Sports Facilities Bldg. Fund Prog.) Series 1999 A, 5.25% 10/1/12 (Pre-Refunded to 4/1/09 @ 101) (c) | 2,940,000 | 3,069,889 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Ohio Gen. Oblig.: | ||||
(College Savings Prog.): | ||||
0% 8/1/10 | $ 2,000,000 | $ 1,759,880 | ||
0% 8/1/14 | 1,375,000 | 1,008,838 | ||
(Higher Ed. Cap. Facilities Proj.) Series A, 5.375% 8/1/16 | 5,980,000 | 6,436,573 | ||
(Mental Health Cap. Facilities Proj.): | ||||
Series IIA, 5.25% 6/1/17 (Pre-Refunded to 6/1/12 @ 100) (c) | 2,670,000 | 2,879,221 | ||
Series IIB, 5.5% 6/1/15 (Pre-Refunded to 6/1/11 @ 100) (c) | 2,265,000 | 2,436,030 | ||
Series 2001 IIA, 5.5% 12/1/13 (Pre-Refunded to 12/1/10 @ 100) (c) | 2,020,000 | 2,157,178 | ||
Series 2002 B, 5.25% 11/1/20 | 2,520,000 | 2,716,006 | ||
Series A, 5.5% 9/15/16 | 11,060,000 | 11,992,795 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Case Western Reserve Univ. 2002 Proj.): | ||||
Series B: | ||||
5.5% 10/1/21 (Pre-Refunded to 10/1/12 @ 100) (c) | 2,000,000 | 2,171,640 | ||
6.5% 10/1/20 | 2,335,000 | 2,853,837 | ||
6.125% 10/1/15 | 2,000,000 | 2,326,820 | ||
6.25% 10/1/16 | 2,500,000 | 2,974,425 | ||
(Case Western Reserve Univ. Proj.) 5% 12/1/44 (MBIA Insured) | 10,000,000 | 10,584,400 | ||
(Denison Univ. Proj.) 5.5% 11/1/14 | 1,000,000 | 1,082,120 | ||
(John Carroll Univ. Proj.) 5% 4/1/17 | 1,000,000 | 1,066,210 | ||
(Univ. of Dayton Proj.) 5% 12/1/17 (AMBAC Insured) | 2,170,000 | 2,337,133 | ||
Ohio Muni. Elec. Gen. Agcy. (Belleville Hydroelectric Proj.) 5% 2/15/17 (AMBAC Insured) | 1,215,000 | 1,300,402 | ||
Ohio Poll. Cont. Rev. (Standard Oil Co. Proj.) 6.75% 12/1/15 | 3,100,000 | 3,769,786 | ||
Ohio Pub. Facilities Commission Rev. (Mental Health Cap. Facilities Proj.) Series 2000 IIA, 5.375% 6/1/14 (Pre-Refunded to 6/1/10 @ 100) (c) | 2,200,000 | 2,322,672 | ||
Ohio Solid Waste Rev. (Waste Mgmt., Inc. Proj.) 4.85%, tender 11/1/07 (a)(b) | 3,000,000 | 3,007,740 | ||
Ohio State Univ. Gen. Receipts: | ||||
Series 2002 A, 5.125% 12/1/31 | 5,000,000 | 5,285,100 | ||
Series B, 5.25% 6/1/16 | 5,000,000 | 5,426,500 | ||
Ohio Tpk. Commission Tpk. Rev. 5.5% 2/15/26 | 3,700,000 | 3,930,066 | ||
Ohio Univ. Gen. Receipts Athens: | ||||
Subseries B, 5% 12/1/31 (FSA Insured) | 3,540,000 | 3,800,155 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Ohio Univ. Gen. Receipts Athens: - continued | ||||
5% 12/1/18 (MBIA Insured) | $ 1,980,000 | $ 2,113,650 | ||
Ohio Wtr. Dev. Auth. Rev.: | ||||
(Drinking Wtr. Fund Prog.) Series 2005: | ||||
5.25% 6/1/18 | 2,610,000 | 2,942,149 | ||
5.25% 12/1/18 | 2,610,000 | 2,953,633 | ||
(Fresh Wtr. Impt. Proj.): | ||||
Series B, 5.5% 6/1/16 (FSA Insured) | 1,560,000 | 1,766,762 | ||
5% 12/1/34 (Pre-Refunded to 6/1/14 @ 100) (c) | 6,300,000 | 6,822,018 | ||
5.25% 12/1/15 | 2,200,000 | 2,423,960 | ||
5.5% 6/1/17 | 3,960,000 | 4,523,152 | ||
(Pure Wtr. Proj.) Series I, 6% 12/1/16 (Escrowed to Maturity) (c) | 1,685,000 | 1,878,202 | ||
5% 12/1/17 | 3,765,000 | 4,046,660 | ||
5.25% 6/1/13 (MBIA Insured) | 1,295,000 | 1,403,935 | ||
5.25% 12/1/13 (MBIA Insured) | 1,305,000 | 1,422,293 | ||
5.25% 6/1/14 (MBIA Insured) | 1,250,000 | 1,366,875 | ||
5.25% 12/1/14 (MBIA Insured) | 1,260,000 | 1,384,652 | ||
5.25% 12/1/15 (MBIA Insured) | 1,180,000 | 1,306,354 | ||
5.25% 6/1/17 (MBIA Insured) | 1,160,000 | 1,297,089 | ||
Ohio Wtr. Dev. Auth. Solid Waste Disp. Rev. (North Star BHP Steel/Cargill Proj.) 6.3% 9/1/20 (b) | 6,350,000 | 6,460,173 | ||
Ohio Wtr. Dev. Auth. Wtr. Poll. Cont. Rev.: | ||||
5% 6/1/18 | 2,000,000 | 2,144,300 | ||
5.25% 12/1/19 | 1,975,000 | 2,243,324 | ||
Olentangy Local School District: | ||||
(School Facilities Construction & Impt. Proj.) Series A, 5.5% 12/1/15 (Pre-Refunded to 6/1/14 @ 100) (c) | 1,055,000 | 1,176,304 | ||
5% 12/1/30 (FSA Insured) | 5,345,000 | 5,737,804 | ||
Otsego Local School District Wood, Henry & Lucas Counties 5.375% 12/1/32 (Pre-Refunded to 12/1/14 @ 100) (c) | 1,000,000 | 1,113,180 | ||
Penta Career Ctr. Ctfs. of Prtn.: | ||||
(Ohio School Facilities Proj.) 5.25% 4/1/17 (FGIC Insured) | 1,755,000 | 1,903,122 | ||
(Wood, Lucas, Sandusky, Fulton, Ottawa, Henry and Hancock Counties, Ohio School Facilities Proj.) 5.25% 4/1/19 (FGIC Insured) | 1,940,000 | 2,107,558 | ||
Plain Local School District 6% 12/1/25 (FGIC Insured) | 990,000 | 1,075,091 | ||
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B: | ||||
6.375% 11/15/22 | 500,000 | 544,135 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B: - continued | ||||
6.375% 11/15/22 (Pre-Refunded to 11/15/10 @ 101) (c) | $ 1,000,000 | $ 1,105,250 | ||
6.375% 11/15/30 | 330,000 | 358,268 | ||
6.375% 11/15/30 (Pre-Refunded to 11/15/10 @ 101) (c) | 670,000 | 740,518 | ||
RiverSouth Auth. Rev. Series 2005 A, 5.25% 12/1/15 | 1,000,000 | 1,100,740 | ||
Rocky River Gen. Oblig. 5% 12/1/19 (AMBAC Insured) | 2,125,000 | 2,275,216 | ||
Scioto County Marine Term. Facilities Rev. (Norfolk Southern Corp. Proj.) 5.3% 8/15/13 | 3,000,000 | 3,044,340 | ||
Sharonville Gen. Oblig. 5.25% 6/1/16 (FGIC Insured) | 1,410,000 | 1,526,931 | ||
Springboro Cmnty. City School District 5.25% 12/1/21 (MBIA Insured) | 3,440,000 | 3,740,794 | ||
Sugarcreek Local School District: | ||||
(School Impt. Proj.): | ||||
5% 12/1/17 (MBIA Insured) | 1,030,000 | 1,112,894 | ||
5% 12/1/31 (MBIA Insured) | 300,000 | 324,144 | ||
5.25% 12/1/22 (MBIA Insured) | 1,800,000 | 1,972,098 | ||
Summit County Gen. Oblig.: | ||||
5.25% 12/1/20 | 1,645,000 | 1,791,800 | ||
5.25% 12/1/21 | 1,740,000 | 1,891,972 | ||
Tallmadge School District Gen. Oblig. 5% 12/1/31 | 4,000,000 | 4,256,640 | ||
Toledo Wtrwks. Rev.: | ||||
5% 11/15/16 (AMBAC Insured) | 1,110,000 | 1,189,065 | ||
5% 11/15/30 (MBIA Insured) | 3,500,000 | 3,723,930 | ||
Univ. of Akron Gen. Receipts Series B, 5% 1/1/27 (FGIC Insured) | 1,405,000 | 1,486,434 | ||
Univ. of Cincinnati Ctfs. of Prtn.: | ||||
5.5% 6/1/11 (MBIA Insured) | 1,045,000 | 1,114,398 | ||
5.5% 6/1/12 (MBIA Insured) | 1,315,000 | 1,401,829 | ||
5.5% 6/1/15 (MBIA Insured) | 1,000,000 | 1,065,280 | ||
Univ. of Cincinnati Gen. Receipts Series 2004 A: | ||||
5% 6/1/18 (AMBAC Insured) | 1,445,000 | 1,547,335 | ||
5% 6/1/19 (AMBAC Insured) | 1,520,000 | 1,624,606 | ||
Warren County Gen. Oblig.: | ||||
6.1% 12/1/12 | 440,000 | 468,860 | ||
6.65% 12/1/11 | 280,000 | 299,972 | ||
West Muskingum Local School District School Facilities Construction and Impt. 5% 12/1/30 (FGIC Insured) | 1,060,000 | 1,118,152 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Wright State Univ. Gen. Receipts: | ||||
5% 5/1/17 (MBIA Insured) | $ 1,375,000 | $ 1,474,110 | ||
5% 5/1/18 (MBIA Insured) | 1,440,000 | 1,540,958 | ||
5% 5/1/19 (MBIA Insured) | 1,515,000 | 1,620,217 | ||
408,083,064 | ||||
Puerto Rico - 2.0% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Series Y, 5.5% 7/1/36 (FSA Insured) | 1,000,000 | 1,125,910 | ||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A, 5.5% 10/1/40 (Escrowed to Maturity) (c) | 3,525,000 | 3,754,936 | ||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.: | ||||
Series HH, 5.25% 7/1/29 (FSA Insured) | 800,000 | 847,304 | ||
Series QQ, 5.5% 7/1/17 (XL Cap. Assurance, Inc. Insured) | 1,300,000 | 1,482,507 | ||
Puerto Rico Pub. Bldg. Auth. Rev. Series G, 5.25% 7/1/13 | 1,000,000 | 1,061,590 | ||
8,272,247 | ||||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Rev. Series A, 5% 10/1/09 | 500,000 | 513,355 |
TOTAL INVESTMENT PORTFOLIO - 99.2% (Cost $407,075,611) | 418,428,066 | ||
NET OTHER ASSETS - 0.8% | 3,449,923 | ||
NET ASSETS - 100% | $ 421,877,989 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Purchased | |||||
U.S. Treasury Index Contracts | |||||
50 U.S. Treasury 20-Year Bond Contracts | March 2007 | $ 5,571,875 | $ (205) |
The face value of futures purchased as a percentage of net assets - 1.3% |
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) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 38.3% |
Education | 14.2% |
Escrowed/Pre-Refunded | 12.6% |
Water & Sewer | 11.7% |
Health Care | 6.8% |
Special Tax | 5.6% |
Others* (individually less than 5%) | 10.8% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
December 31, 2006 | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $407,075,611) | $ 418,428,066 | |
Cash | 1,171,683 | |
Receivable for fund shares sold | 604,755 | |
Interest receivable | 2,975,417 | |
Prepaid expenses | 2,049 | |
Other receivables | 32,444 | |
Total assets | 423,214,414 | |
Liabilities | ||
Payable for investments purchased | $ 62,971 | |
Payable for fund shares redeemed | 628,139 | |
Distributions payable | 397,417 | |
Accrued management fee | 130,112 | |
Payable for daily variation on futures contracts | 205 | |
Other affiliated payables | 72,674 | |
Other payables and accrued expenses | 44,907 | |
Total liabilities | 1,336,425 | |
Net Assets | $ 421,877,989 | |
Net Assets consist of: | ||
Paid in capital | $ 409,418,912 | |
Undistributed net investment income | 175,678 | |
Accumulated undistributed net realized gain (loss) on investments | 931,149 | |
Net unrealized appreciation (depreciation) on investments | 11,352,250 | |
Net Assets, for 36,376,986 shares outstanding | $ 421,877,989 | |
Net Asset Value, offering price and redemption price per share ($421,877,989 ÷ 36,376,986 shares) | $ 11.60 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Income Fund
Financial Statements - continued
Statement of Operations
Year ended December 31, 2006 | ||
Investment Income | ||
Interest | $ 18,434,123 | |
Expenses | ||
Management fee | $ 1,547,984 | |
Transfer agent fees | 322,163 | |
Accounting fees and expenses | 104,616 | |
Custodian fees and expenses | 6,868 | |
Independent trustees' compensation | 1,609 | |
Registration fees | 18,350 | |
Audit | 52,014 | |
Legal | 4,588 | |
Miscellaneous | 5,210 | |
Total expenses before reductions | 2,063,402 | |
Expense reductions | (192,748) | 1,870,654 |
Net investment income | 16,563,469 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 5,021,424 | |
Futures contracts | 9,900 | |
Total net realized gain (loss) | 5,031,324 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (3,467,732) | |
Futures contracts | (205) | |
Total change in net unrealized appreciation (depreciation) | (3,467,937) | |
Net gain (loss) | 1,563,387 | |
Net increase (decrease) in net assets resulting from operations | $ 18,126,856 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 16,563,469 | $ 17,127,666 |
Net realized gain (loss) | 5,031,324 | 6,703,232 |
Change in net unrealized appreciation (depreciation) | (3,467,937) | (11,621,333) |
Net increase (decrease) in net assets resulting | 18,126,856 | 12,209,565 |
Distributions to shareholders from net investment income | (16,558,868) | (17,117,253) |
Distributions to shareholders from net realized gain | (3,971,411) | (6,682,810) |
Total distributions | (20,530,279) | (23,800,063) |
Share transactions | 44,437,006 | 51,253,642 |
Reinvestment of distributions | 14,914,786 | 17,268,216 |
Cost of shares redeemed | (59,920,439) | (55,685,453) |
Net increase (decrease) in net assets resulting from share transactions | (568,647) | 12,836,405 |
Redemption fees | 906 | 5,873 |
Total increase (decrease) in net assets | (2,971,164) | 1,251,780 |
Net Assets | ||
Beginning of period | 424,849,153 | 423,597,373 |
End of period (including undistributed net investment income of $175,678 and undistributed net investment income of $64,436, respectively) | $ 421,877,989 | $ 424,849,153 |
Other Information Shares | ||
Sold | 3,827,254 | 4,303,543 |
Issued in reinvestment of distributions | 1,285,302 | 1,460,402 |
Redeemed | (5,176,446) | (4,689,736) |
Net increase (decrease) | (63,890) | 1,074,209 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 11.66 | $ 11.98 | $ 12.10 | $ 12.03 | $ 11.54 |
Income from Investment Operations | |||||
Net investment income B | .459 | .476 | .496 | .507 | .527 |
Net realized and unrealized gain (loss) | .050 | (.135) | .026 | .166 | .568 |
Total from investment operations | .509 | .341 | .522 | .673 | 1.095 |
Distributions from net investment income | (.459) | (.476) | (.497) | (.508) | (.525) |
Distributions from net realized gain | (.110) | (.185) | (.145) | (.095) | (.080) |
Total distributions | (.569) | (.661) | (.642) | (.603) | (.605) |
Redemption fees added to | - | - | - | - | - |
Net asset value, end of period | $ 11.60 | $ 11.66 | $ 11.98 | $ 12.10 | $ 12.03 |
Total Return A | 4.47% | 2.90% | 4.44% | 5.72% | 9.68% |
Ratios to Average Net Assets C | |||||
Expenses before reductions | .49% | .50% | .50% | .51% | .51% |
Expenses net of fee waivers, | .49% | .50% | .50% | .51% | .51% |
Expenses net of all reductions | .45% | .47% | .49% | .50% | .49% |
Net investment income | 3.96% | 4.00% | 4.13% | 4.20% | 4.45% |
Supplemental Data | |||||
Net assets, end of period | $ 421,878 | $ 424,849 | $ 423,597 | $ 431,039 | $ 435,057 |
Portfolio turnover rate | 19% | 23% | 26% | 22% | 19% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Investment Changes/Performance
Maturity Diversification | |||
Days | % of fund's | % of fund's | % of fund's |
0 - 30 | 85.7 | 87.4 | 80.6 |
31 - 90 | 2.3 | 5.8 | 6.8 |
91 - 180 | 2.7 | 3.7 | 6.4 |
181 - 397 | 9.3 | 3.1 | 6.2 |
Weighted Average Maturity | ||||
12/31/06 | 6/30/06 | 12/31/05 | ||
Fidelity Ohio Municipal Money | 38 Days | 24 Days | 37 Days | |
Ohio Tax-Free Money Market | 39 Days | 32 Days | 39 Days |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | Variable Rate Demand Notes (VRDNs) 81.8% | ![]() | Variable Rate Demand Notes (VRDNs) 84.6% | ||||
![]() | Commercial Paper (including CP Mode) 0.5% | ![]() | Commercial Paper (including CP Mode) 1.2% | ||||
![]() | Tender Bonds 0.9% | ![]() | Tender Bonds 2.0% | ||||
![]() | Municipal Notes 11.4% | ![]() | Municipal Notes 10.9% | ||||
![]() | Fidelity Municipal Cash Central Fund 1.3% | ![]() | Fidelity Municipal Cash Central Fund 0.0% | ||||
![]() | Other Investments 1.2% | ![]() | Other Investments 0.0% | ||||
![]() | Net Other Assets 2.9% | ![]() | Net Other Assets 1.3% |
Current and Historical Seven-Day Yields
1/1/07 | 10/2/06 | 7/3/06 | 4/3/06 | 1/2/06 | |
Fidelity Ohio Municipal Money Market Fund | 3.41% | 3.23% | 3.41% | 2.68% | 2.93% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it is possible to lose money by investing in the fund.
*Source: iMoneyNet, Inc.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Securities - 97.1% | |||
Principal Amount | Value | ||
Ohio - 95.5% | |||
Akron Income Tax Rev. Participating VRDN Series ROC II R2137, 3.95% (Liquidity Facility Citigroup, Inc.) (c)(f) | $ 3,165,000 | $ 3,165,000 | |
American Muni. Pwr. Bonds (Omega Joint Venture 6 Proj.) 3.71%, tender 2/15/07 (c) | 8,325,000 | 8,325,000 | |
Ashtabula County Indl. Dev. Rev. (Plasticolors, Inc. Proj.) Series 1996 A, 4.06%, LOC Keybank Nat'l. Assn, VRDN (c)(e) | 1,590,000 | 1,590,000 | |
Avon Local School District BAN (School Construction Proj.) 4.125% 1/11/08 (b) | 1,510,000 | 1,517,203 | |
Bellefontaine Hosp. Facilities Rev. (Mary Rutan Hosp. Proj.) 3.96%, LOC Nat'l. City Bank, VRDN (c) | 7,700,000 | 7,700,000 | |
Butler County Gen. Oblig. BAN Series C, 4.5% 9/20/07 | 3,605,000 | 3,627,471 | |
Cambridge Hosp. Facilities Rev. (Southeastern Reg'l. Med. Ctr. Proj.) 3.7%, LOC Nat'l. City Bank, VRDN (c) | 3,350,000 | 3,350,000 | |
Cincinnati City School District Participating VRDN: | |||
Series EGL 04 34 Class A, 3.96% (Liquidity Facility Citibank NA) (c)(f) | 1,295,000 | 1,295,000 | |
Series Putters 1496, 3.97% (Liquidity Facility JPMorgan Chase Bank) (c)(f) | 7,765,000 | 7,765,000 | |
Cincinnati School Dev. Participating VRDN Series ROC II RR 9033 3.95% (Liquidity Facility Citigroup, Inc.) (c)(f) | 2,290,000 | 2,290,000 | |
Cincinnati Student Ln. Fdg. Corp. Student Ln. Rev. Series 1998 A2, 3.98% (Liquidity Facility Sallie Mae), VRDN (c)(e) | 19,800,000 | 19,800,000 | |
Cincinnati Wtr. Sys. Rev. Participating VRDN Series ROC II R7528, 3.95% (Liquidity Facility Citigroup, Inc.) (c)(f) | 2,620,000 | 2,620,000 | |
Clark County Gen. Oblig. BAN 3.83% 11/14/07 | 3,000,000 | 3,005,784 | |
Clark County Health Care Facilities Rev. (The Ohio Masonic Home Proj.) 3.94% (AMBAC Insured), VRDN (c) | 11,560,000 | 11,560,000 | |
Clermont County Indl. Dev. Rev. (American Micro Products Proj.) 4.06%, LOC Keybank Nat'l. Assn, VRDN (c)(e) | 1,395,000 | 1,395,000 | |
Cleveland Arpt. Sys. Rev. Participating VRDN: | |||
Series MS 06 1521, 3.95% (Liquidity Facility Morgan Stanley) (c)(f) | 7,790,000 | 7,790,000 | |
Series PT 799, 3.98% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(e)(f) | 1,500,000 | 1,500,000 | |
Series Stars 06 149, 3.98% (Liquidity Facility BNP Paribas SA) (c)(e)(f) | 7,925,000 | 7,925,000 | |
Cleveland Heights Gen. Oblig. BAN 4% 8/9/07 | 3,300,000 | 3,307,762 | |
Cleveland-Cuyahoga County Port Auth. Rev.: | |||
(Carnegie/96th Research Bldg., LLC Proj.) Series 2003, 3.95%, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 10,000,000 | 10,000,000 | |
(Euclid/93rd Garage & Office LLC Proj.) Series 2003, 3.95%, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 3,115,000 | 3,115,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Clinton Massie Local School District BAN (School Construction Proj.) 4% 11/21/07 | $ 2,180,000 | $ 2,186,908 | |
Clipper Tax-Exempt Trust Participating VRDN Series Clipper 06 8, 4% (Liquidity Facility State Street Bank & Trust Co., Boston) (c)(e)(f) | 7,820,000 | 7,820,000 | |
Columbus City School District Participating VRDN: | |||
Series 1488, 3.97% (Liquidity Facility JPMorgan Chase Bank) (c)(f) | 3,330,000 | 3,330,000 | |
Series PZ 131, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f) | 4,510,000 | 4,510,000 | |
Columbus Gen. Oblig.: | |||
Bonds 5.25% 1/1/08 | 1,000,000 | 1,017,179 | |
Participating VRDN Series Putters 162, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f) | 5,130,000 | 5,130,000 | |
Crawford County Hosp. Facilities Rev. (Galion Cmnty. Hosp. Proj.) 4%, LOC Huntington Nat'l. Bank, Columbus, VRDN (c) | 5,000,000 | 5,000,000 | |
Cuyahoga County Arpt. Facilities Rev. (Corporate Wings-Cleveland LLC Proj.) 4.03%, LOC Nat'l. City Bank, VRDN (c)(e) | 3,530,000 | 3,530,000 | |
Cuyahoga County Civic Facilities Rev. (Fairfax Dev. Corp. Proj.) 3.99%, LOC Keybank Nat'l. Assn, VRDN (c) | 4,325,000 | 4,325,000 | |
Cuyahoga County Cultural Facilities Rev. (Maltz Museum of Jewish Heritage Proj.) 3.96%, LOC Bank of New York, New York, VRDN (c) | 6,300,000 | 6,300,000 | |
Cuyahoga County Health Care Facilities Rev. (Altenheim Proj.) 3.96%, LOC U.S. Bank NA, Minnesota, VRDN (c) | 5,965,000 | 5,965,000 | |
Cuyahoga County Hosp. Rev. Participating VRDN Series MT 264, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f) | 2,890,000 | 2,890,000 | |
Cuyahoga County Indl. Dev. Rev.: | |||
(Progressive Plastics, Inc. Proj.) 4.2%, LOC JPMorgan Chase Bank, VRDN (c)(e) | 1,065,000 | 1,065,000 | |
(Pubco Corp. Proj.) Series 2001, 4.03%, LOC Nat'l. City Bank, VRDN (c)(e) | 2,310,000 | 2,310,000 | |
(The Great Lakes Brewing Co. Proj.) Series 1997, 4.21%, LOC Huntington Nat'l. Bank, Columbus, VRDN (c)(e) | 3,430,000 | 3,430,000 | |
Cuyahoga County Rev.: | |||
Bonds (Cleveland Clinic Foundation Proj.) Series 04 B2, 3.6% tender 3/16/07, CP mode | 5,000,000 | 5,000,000 | |
(Cleveland Clinic Health Sys. Obligated Group Prog.) Subseries B3, 4.05%, VRDN (c) | 2,600,000 | 2,600,000 | |
Cuyahoga Falls Gen. Oblig. BAN 4% 12/13/07 | 9,300,000 | 9,335,704 | |
Darke County Health Care Facilities Rev. (Brethren Retirement Cmnty. Proj.) 3.99%, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 7,015,000 | 7,015,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Delaware County Health Care Facilities (Willow Brook Christian Cmnty. Proj.) Series 1999, 4%, LOC Huntington Nat'l. Bank, Columbus, VRDN (c) | $ 3,580,000 | $ 3,580,000 | |
Delaware Gen. Oblig. BAN 4% 12/13/07 | 9,500,000 | 9,536,482 | |
Elyria Gen. Oblig. BAN Series A, 4.5% 7/19/07 | 4,500,000 | 4,516,605 | |
Erie County Gen. Oblig. BAN: | |||
4.25% 4/11/07 | 7,500,000 | 7,512,884 | |
4.25% 4/11/07 | 5,000,000 | 5,008,589 | |
Erie County Hosp. Facilities Rev. Participating VRDN Series MT 253, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f) | 7,490,000 | 7,490,000 | |
Erie County Multi-family Hsg. Rev. (Providence Residential Cmnty. Corp. Proj.) Series 1999 A, 3.96%, LOC JPMorgan Chase Bank, VRDN (c) | 8,025,000 | 8,025,000 | |
Euclid Gen. Oblig. BAN (Waterline Impt. Proj.) 4% 10/30/07 | 3,000,000 | 3,008,365 | |
Fairfield County Gen. Oblig. BAN 4% 12/6/07 | 2,200,000 | 2,208,073 | |
Fort Loramie Local School District BAN (School Construction Proj.) 4.39% 5/10/07 | 5,426,371 | 5,438,521 | |
Franklin County Multi-family Rev.: | |||
(Golf Pointe Apts. Proj.) Series 2000 A, 3.97%, LOC LaSalle Bank NA, VRDN (c)(e) | 6,690,000 | 6,690,000 | |
(Hanover Ridge Apts. Proj. 4.05%, LOC Fannie Mae, VRDN (c)(e) | 4,350,000 | 4,350,000 | |
Greene County Gen. Oblig. BAN Series E, 4.25% 11/20/07 | 1,505,000 | 1,514,140 | |
Hamilton County Health Care Facilities Rev. 3.98%, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 3,950,000 | 3,950,000 | |
Hamilton Gen. Oblig. BAN 4.5% 9/14/07 | 11,210,000 | 11,270,628 | |
Hancock County BAN 4.5% 11/8/07 | 2,000,000 | 2,014,792 | |
Jackson Local School District Stark & Summit Counties Participating VRDN Series PT 2334, 3.94% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f) | 3,940,000 | 3,940,000 | |
Kettering Indl. Dev. Rev. (Millat Inds. Corp. Proj.) 4.03%, LOC Nat'l. City Bank, VRDN (c)(e) | 2,760,000 | 2,760,000 | |
Lake County Indl. Dev. Rev.: | |||
(American Bus. Co. Proj.) 4.21%, LOC Huntington Nat'l. Bank, Columbus, VRDN (c)(e) | 765,000 | 765,000 | |
(Norshar Co. Proj.) 4.2%, LOC JPMorgan Chase Bank, VRDN (c)(e) | 2,720,000 | 2,720,000 | |
Lima Hosp. Rev. (Lima Memorial Hosp. Proj.) 3.98%, LOC JPMorgan Chase Bank, VRDN (c) | 2,300,000 | 2,300,000 | |
Lorain County BAN (Swr. Systems Impt. Proj.) Series C, 4.5% 11/14/07 | 1,850,000 | 1,864,113 | |
Lucas County Multi-family Rev. (Lakewoods Proj.) 4.06%, LOC Keybank Nat'l. Assn, VRDN (c)(e) | 4,000,000 | 4,000,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Medina County Indl. Dev. Rev.: | |||
(Firedex, Inc. Proj.) Series 1997, 4.06%, LOC Keybank Nat'l. Assn, VRDN (c)(e) | $ 795,000 | $ 795,000 | |
(Rembond Proj.) Series 1996, 4.2%, LOC JPMorgan Chase Bank, VRDN (c)(e) | 1,445,000 | 1,445,000 | |
Mentor Gen. Oblig. BAN Series 2006 2, 4.5% 9/14/07 | 2,944,000 | 2,961,942 | |
Middletown Hosp. Facilities Rev. Participating VRDN Series MT 239, 3.99% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f) | 8,000,000 | 8,000,000 | |
Montgomery County Health Care Facilities Rev.: | |||
(Eastway Corp. & Property Resource Proj.) Series 1997, 4.21%, LOC Huntington Nat'l. Bank, Columbus, VRDN (c)(e) | 2,495,000 | 2,495,000 | |
(Kettering Affiliated Proj.) 3.98%, LOC JPMorgan Chase Bank, VRDN (c) | 2,300,000 | 2,300,000 | |
Montgomery County Multi-family Hsg. Dev. Rev. (Pedcor Invts.-Lyons Gate Proj.) 3.99%, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (c)(e) | 4,306,000 | 4,306,000 | |
Ohio Air Quality Participating VRDN Series LB 06 47, 4.08% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (c)(e)(f) | 9,990,000 | 9,990,000 | |
Ohio Air Quality Dev. Auth. Rev.: | |||
Participating VRDN: | |||
Series MS 1223, 3.95% (Liquidity Facility Morgan Stanley) (c)(f) | 8,300,000 | 8,300,000 | |
Series PA 1415 R, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(e)(f) | 8,335,000 | 8,335,000 | |
(AK Steel Corp. Proj.) Series A, 4.08%, LOC ABN-AMRO Bank NV, VRDN (c)(e) | 14,500,000 | 14,500,000 | |
(Cincinnati Gas & Elec. Co. Proj.) Series A: | |||
4.08%, VRDN (c) | 7,600,000 | 7,600,000 | |
4.09%, LOC Cr. Lyonnais SA, VRDN (c)(e) | 12,100,000 | 12,100,000 | |
(FirstEnergy Corp. Poll. Cont. Proj.) Series B, 3.95%, LOC Barclays Bank PLC, VRDN (c) | 2,800,000 | 2,800,000 | |
(FirstEnergy Corp. Proj.) Series A, 3.92%, LOC Wachovia Bank NA, VRDN (c)(e) | 9,200,000 | 9,200,000 | |
Ohio Bldg. Auth. Participating VRDN: | |||
Series Putters 790, 3.97% (Liquidity Facility JPMorgan Chase Bank) (c)(f) | 1,280,000 | 1,280,000 | |
Series Putters 793, 3.97% (Liquidity Facility JPMorgan Chase & Co.) (c)(f) | 2,065,000 | 2,065,000 | |
Ohio Gen. Oblig.: | |||
Bonds Series 2006 D, 5% 9/15/07 | 10,000,000 | 10,103,027 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Gen. Oblig.: - continued | |||
Participating VRDN: | |||
Series Putters 1295, 3.97% (Liquidity Facility JPMorgan Chase Bank) (c)(f) | $ 2,990,000 | $ 2,990,000 | |
Series Putters 1394, 3.97% (Liquidity Facility JPMorgan Chase Bank) (c)(f) | 2,570,000 | 2,570,000 | |
Series ROC II R7508, 3.95% (Liquidity Facility Citigroup, Inc.) (c)(f) | 11,160,000 | 11,160,000 | |
Ohio Higher Edl. Facility Commission Rev.: | |||
Participating VRDN: | |||
Series EGL 7053020 Class A, 3.96% (Liquidity Facility Landesbank Hessen-Thuringen) (c)(f) | 7,900,000 | 7,900,000 | |
Series MS 98 116, 3.95% (Liquidity Facility Morgan Stanley) (c)(f) | 10,120,000 | 10,120,000 | |
(Ashland Univ. Proj.) 3.96%, LOC Keybank Nat'l. Assn, VRDN (c) | 16,970,000 | 16,970,000 | |
(Cap. Univ. Proj.) 3.93%, LOC Nat'l. City Bank, VRDN (c) | 15,000,000 | 15,000,000 | |
(Pooled Fing. Prog.): | |||
Series 1996, 3.98%, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 1,300,000 | 1,300,000 | |
Series 1997, 3.98%, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 3,600,000 | 3,600,000 | |
Series 1998, 3.98%, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 8,820,000 | 8,820,000 | |
Series 1999, 3.98%, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 7,700,000 | 7,700,000 | |
(Univ. of Northwestern Ohio Proj.) 4%, LOC Huntington Nat'l. Bank, Columbus, VRDN (c) | 10,000,000 | 10,000,000 | |
Ohio Hsg. Fin. Agcy. Mtg. Rev.: | |||
Participating VRDN: | |||
Series BA 01 I, 4.03% (Liquidity Facility Bank of America NA) (c)(e)(f) | 2,875,000 | 2,875,000 | |
Series BA 98 B, 4.06% (Liquidity Facility Bank of America NA) (c)(e)(f) | 13,270,000 | 13,270,000 | |
Series BA 98 Q, 4.06% (Liquidity Facility Bank of America NA) (c)(e)(f) | 4,600,000 | 4,600,000 | |
Series LB 03 L46J, 4.08% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (c)(e)(f) | 5,080,000 | 5,080,000 | |
Series Merlots 00 A1, 3.95% (Liquidity Facility Wachovia Bank NA) (c)(e)(f) | 2,755,000 | 2,755,000 | |
Series Merlots 01 A78, 4% (Liquidity Facility Wachovia Bank NA) (c)(e)(f) | 1,425,000 | 1,425,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Hsg. Fin. Agcy. Mtg. Rev.: - continued | |||
Participating VRDN: | |||
Series Merlots 02 A34, 4% (Liquidity Facility Wachovia Bank NA) (c)(e)(f) | $ 1,260,000 | $ 1,260,000 | |
Series Merlots 05 A16, 4% (Liquidity Facility Bank of New York, New York) (c)(e)(f) | 4,635,000 | 4,635,000 | |
Series Merlots 06 A2, 4% (Liquidity Facility Bank of New York, New York) (c)(e)(f) | 3,980,000 | 3,980,000 | |
Series PT 1334, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(e)(f) | 4,035,000 | 4,035,000 | |
Series PT 228, 3.98% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(e)(f) | 3,075,000 | 3,075,000 | |
Series PT 241, 3.97% (Liquidity Facility Bayerische Hypo-und Vereinsbank AG) (c)(e)(f) | 55,000 | 55,000 | |
Series PT 567, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(e)(f) | 770,000 | 770,000 | |
Series PT 582, 3.97% (Liquidity Facility Svenska Handelsbanken AB) (c)(e)(f) | 5,120,000 | 5,120,000 | |
Series Putters 1334, 3.98% (Liquidity Facility JPMorgan Chase & Co.) (c)(e)(f) | 9,880,000 | 9,880,000 | |
(Mortgage-Backed Securities Prog.): | |||
Series 2005 B1, 3.95% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (c)(e) | 16,800,000 | 16,800,000 | |
Series B, 3.95% (Liquidity Facility Citibank NA), VRDN (c)(e) | 18,000,000 | 18,000,000 | |
Series B, 4.05% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (c)(e) | 11,990,000 | 11,990,000 | |
Series F, 3.95% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (c)(e) | 6,400,000 | 6,400,000 | |
Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.: | |||
(Club at Spring Valley Apts. Proj.) Series 1996 A, 3.96%, LOC Charter One Bank NA, VRDN (c)(e) | 5,700,000 | 5,700,000 | |
(Pedcor Invts. Willow Lake Apts. Proj.): | |||
Series A, 3.98%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (c)(e) | 2,835,000 | 2,835,000 | |
Series B, 4.08%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (c)(e) | 470,000 | 470,000 | |
Series C, 4.08%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (c)(e) | 460,000 | 460,000 | |
Series D, 4.08%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (c)(e) | 460,000 | 460,000 | |
(Pine Crossing Apts. Proj.) 3.97%, LOC LaSalle Bank NA, VRDN (c)(e) | 5,670,000 | 5,670,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.: - continued | |||
(Shannon Glenn Apts. Proj.) 3.97%, LOC Fannie Mae, VRDN (c)(e) | $ 11,800,000 | $ 11,800,000 | |
(Wingate at Belle Meadows Proj.) 3.97%, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (c)(e) | 8,750,000 | 8,750,000 | |
Ohio Hsg. Fin. Agcy. Residential Mtg. Rev.: | |||
Participating VRDN: | |||
Series Putters 1549, 3.98% (Liquidity Facility JPMorgan Chase Bank) (c)(e)(f) | 7,530,000 | 7,530,000 | |
Series Putters PA 1422R, 3.96% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(e)(f) | 9,500,000 | 9,500,000 | |
Series 06N, 3.94% (Liquidity Facility State Street Bank & Trust Co., Boston), VRDN (c)(e) | 20,000,000 | 20,000,001 | |
Series 2006 I, 3.95% (Liquidity Facility Citibank NA), VRDN (c)(e) | 20,000,000 | 20,000,000 | |
Series 2006 J, 3.95% (Liquidity Facility State Street Bank & Trust Co., Boston), VRDN (c)(e) | 10,000,000 | 10,000,000 | |
Ohio Indl. Dev. Rev.: | |||
(K&S Realty Proj.) Series 1989 I, 3.99%, LOC Nat'l. City Bank, VRDN (c)(e) | 60,000 | 60,000 | |
(K&S Realty/Starr Fabricating, Inc. Proj.) Series 1989 III, 3.99%, LOC Nat'l. City Bank, VRDN (c)(e) | 85,000 | 85,000 | |
Ohio Solid Waste Rev.: | |||
(BP Exploration & Oil, Inc. Proj.) Series 1999, 4.02% | 4,000,000 | 4,000,000 | |
(BP Products NA, Inc. Proj.) Series B, 4.02% (BP PLC Guaranteed), VRDN (c)(e) | 2,115,000 | 2,115,000 | |
(Republic Svcs., Inc. Proj.) 4.17%, VRDN (c)(e) | 7,700,000 | 7,700,000 | |
Ohio State Hsg. Fin. Agcy. Residential Mtg. Participating VRDN Series LB 06 K 25, 4.08% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (c)(e)(f) | 4,000,000 | 4,000,000 | |
Ohio Wtr. Dev. Auth. (Waste Mgmt., Inc. Proj.) Series B, 4.05%, LOC Bank of America NA, VRDN (c)(e) | 4,700,000 | 4,700,000 | |
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev.: | |||
Participating VRDN Series Putters 558, 3.97% (Liquidity Facility JPMorgan Chase & Co.) (c)(f) | 4,540,000 | 4,540,000 | |
(FirstEnergy Corp. Proj.): | |||
Series A, 3.93%, LOC Barclays Bank PLC, VRDN (c)(e) | 19,000,000 | 19,000,000 | |
3.95%, LOC Wachovia Bank NA, VRDN (c)(e) | 9,200,000 | 9,200,000 | |
Series A, 3.99%, LOC Barclays Bank PLC, VRDN (c)(e) | 11,500,000 | 11,500,000 | |
Pepper Pike Gen. Oblig. BAN 4% 5/31/07 | 4,613,000 | 4,617,562 | |
Perrysburg Gen. Oblig. BAN: | |||
(Library Impt. Proj.) 4.25% 11/8/07 | 1,000,000 | 1,005,092 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Perrysburg Gen. Oblig. BAN: - continued | |||
4.25% 11/8/07 | $ 2,393,000 | $ 2,405,186 | |
Port of Greater Cincinnati Dev. Auth. Rev. (Nat'l. Underground Railroad Freedom Ctr., Inc. Proj.) Series 2003 A, 3.95%, LOC JPMorgan Chase Bank, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 14,600,000 | 14,600,000 | |
Portage County Indl. Dev. Rev. (Mantaline Corp. Proj.) 4.08%, LOC Nat'l. City Bank, VRDN (c)(e) | 1,685,000 | 1,685,000 | |
Princeton City School District Participating VRDN Series ROC II RR 9059, 3.95% (Liquidity Facility Citigroup, Inc.) (c)(f) | 5,215,000 | 5,215,000 | |
Richland County Health Care Facilities Rev.: | |||
(Mansfield Memorial Homes Proj.) Series 2002, 4.01%, LOC Keybank Nat'l. Assn, VRDN (c) | 4,520,000 | 4,520,000 | |
(Wesleyan Sr. Living Proj.) Series 2004 A, 3.94%, LOC JPMorgan Chase Bank, VRDN (c) | 7,900,000 | 7,900,000 | |
Richland County Indl. Dev. Rev. (Sabin Robbins Paper Co. Proj.) Series 1997, 4.02%, LOC LaSalle Bank Midwest NA, VRDN (c)(e) | 1,500,000 | 1,500,000 | |
Rickenbacker Port Auth. Indl. Dev. (Micro Inds. Corp. Proj.) Series 2000, 4.2%, LOC JPMorgan Chase Bank, VRDN (c)(e) | 2,260,000 | 2,260,000 | |
Shaker Heights Gen. Oblig. BAN 4% 11/1/07 | 6,845,000 | 6,868,149 | |
Solon Gen. Oblig. BAN 4% 11/21/07 | 1,000,000 | 1,003,426 | |
Stark County Indl. Dev. Rev. (H-P Products, Inc. Proj.) 4.06%, LOC Keybank Nat'l. Assn, VRDN (c)(e) | 1,975,000 | 1,975,000 | |
Summit County Civic Facilities Rev. (YMCA of Akron Proj.) 3.99%, LOC Keybank Nat'l. Assn, VRDN (c) | 4,675,000 | 4,675,000 | |
Summit County Indl. Dev. Rev.: | |||
(Commercial Alloys Corp. Proj.): | |||
4.08%, LOC Nat'l. City Bank, VRDN (c)(e) | 1,300,000 | 1,300,000 | |
4.2%, LOC Nat'l. City Bank, VRDN (c)(e) | 2,015,000 | 2,015,000 | |
(Kaiser Dev. Proj.) 4.3%, LOC Nat'l. City Bank, VRDN (c)(e) | 580,000 | 580,000 | |
(Keltec, Inc. Proj.) Series 1987, 4.3%, LOC Nat'l. City Bank, VRDN (c)(e) | 80,000 | 80,000 | |
(Mannix Co. Proj.) Series 1987, 4.3%, LOC JPMorgan Chase Bank, VRDN (c)(e) | 425,000 | 425,000 | |
(Sigma Properties Proj.) Series 2000 B, 4.08%, LOC Nat'l. City Bank, VRDN (c)(e) | 1,570,000 | 1,570,000 | |
(Triumph Hldgs. Proj.) 4.08%, LOC Nat'l. City Bank, VRDN (c)(e) | 1,160,000 | 1,160,000 | |
Toledo City School District Participating VRDN Series Putters 655, 3.97% (Liquidity Facility JPMorgan Chase Bank) (c)(f) | 1,695,000 | 1,695,000 | |
Trumbull County BAN (County Bldg. Impt. Proj.) 4.55% 4/4/07 | 2,800,000 | 2,806,820 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Trumbull County Health Care Facilities Rev. (Shepherd of the Valley Retirement Howland Proj.) 3.98% (Radian Asset Assurance, Inc. Insured), VRDN (c) | $ 10,055,000 | $ 10,055,000 | |
Tuscarawas County Hosp. Facilities Rev. Participating VRDN Series MT 103, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f) | 2,945,000 | 2,945,000 | |
Univ. of Cincinnati Gen. Receipts BAN Series C, 4.5% 3/28/07 | 8,000,000 | 8,017,473 | |
Village of Indian Hill Econ. Dev. Rev. (Cincinnati Country Day School Proj.) Series 1999, 3.98%, LOC Nat'l. City Bank, VRDN (c) | 4,545,000 | 4,545,000 | |
Warren County Health Care Facilities Rev. (Otterbein Homes Proj.) Series 1998 B, 4.03%, LOC Fifth Third Bank, Cincinnati, VRDN (c) | 11,724,000 | 11,724,000 | |
Westerville Gen. Oblig. BAN (Electic Sys. Impt. Proj.) 4.5% 9/20/07 | 1,575,000 | 1,584,817 | |
Wood County Indl. Dev. Rev.: | |||
(CMC Group Proj.) Series 2001, 4.08%, LOC Nat'l. City Bank, VRDN (c)(e) | 1,920,000 | 1,920,000 | |
(Dowa THT America, Inc. Proj.) Series 1999, 4.03%, LOC Comerica Bank, Detroit, VRDN (c)(e) | 3,585,000 | 3,585,000 | |
Zanesville-Muskingum Port Auth. Indl. Dev. Rev. (Almana II LLC Proj.) Series 2000, 4.05%, LOC JPMorgan Chase Bank, VRDN (c)(e) | 4,600,000 | 4,600,000 | |
913,489,698 | |||
Puerto Rico - 0.3% | |||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Participating VRDN Series TOC 05 Z6, 3.97% (Liquidity Facility Goldman Sachs Group, Inc.) (c)(f) | 3,185,000 | 3,185,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Other - 1.3% | |||
Fidelity Municipal Cash Central Fund, 3.99% (a)(d) | $ 12,000,000 | $ 12,000,000 | |
TOTAL INVESTMENT PORTFOLIO - 97.1% (Cost $928,674,698) | 928,674,698 | ||
NET OTHER ASSETS - 2.9% | 27,775,574 | ||
NET ASSETS - 100% | $ 956,450,272 |
Security Type Abbreviations |
BAN - BOND ANTICIPATION NOTE |
CP - COMMERCIAL PAPER |
VRDN - VARIABLE RATE DEMAND NOTE |
Legend |
(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(f) Provides evidence of ownership in one or more underlying municipal bonds. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 19,389 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
December 31, 2006 | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $916,674,698) | $ 916,674,698 | |
Fidelity Central Funds (cost $12,000,000) | 12,000,000 | |
Total Investments (cost $928,674,698) | $ 928,674,698 | |
Cash | 7,772,933 | |
Receivable for investments sold | 6,440,203 | |
Receivable for fund shares sold | 21,697,913 | |
Interest receivable | 6,564,175 | |
Prepaid expenses | 4,226 | |
Other receivables | 206,191 | |
Total assets | 971,360,339 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 1,517,203 | |
Payable for fund shares redeemed | 12,806,370 | |
Distributions payable | 18,576 | |
Accrued management fee | 290,371 | |
Other affiliated payables | 228,684 | |
Other payables and accrued expenses | 48,863 | |
Total liabilities | 14,910,067 | |
Net Assets | $ 956,450,272 | |
Net Assets consist of: | ||
Paid in capital | $ 956,351,640 | |
Undistributed net investment income | 81,157 | |
Accumulated undistributed net realized gain (loss) on investments | 17,475 | |
Net Assets, for 956,350,510 shares outstanding | $ 956,450,272 | |
Net Asset Value, offering price and redemption price per share ($956,450,272 ÷ 956,350,510 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Year ended December 31, 2006 | ||
Investment Income | ||
Interest | $ 28,626,414 | |
Income from Fidelity Central Funds | 19,389 | |
Total income | 28,645,803 | |
Expenses | ||
Management fee | $ 3,138,504 | |
Transfer agent fees | 1,171,198 | |
Accounting fees and expenses | 101,137 | |
Custodian fees and expenses | 14,171 | |
Independent trustees' compensation | 3,123 | |
Registration fees | 43,908 | |
Audit | 40,585 | |
Legal | 6,007 | |
Miscellaneous | 28,747 | |
Total expenses before reductions | 4,547,380 | |
Expense reductions | (1,175,712) | 3,371,668 |
Net investment income | 25,274,135 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 17,473 | |
Net increase in net assets resulting from operations | $ 25,291,608 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 25,274,135 | $ 14,994,846 |
Net realized gain (loss) | 17,473 | 51,221 |
Net increase in net assets resulting | 25,291,608 | 15,046,067 |
Distributions to shareholders from net investment income | (25,274,018) | (14,990,504) |
Share transactions at net asset value of $1.00 per share | 2,254,001,151 | 1,997,767,736 |
Reinvestment of distributions | 25,013,218 | 14,776,226 |
Cost of shares redeemed | (2,124,486,464) | (1,980,752,974) |
Net increase (decrease) in net assets and shares resulting from share transactions | 154,527,905 | 31,790,988 |
Total increase (decrease) in net assets | 154,545,495 | 31,846,551 |
Net Assets | ||
Beginning of period | 801,904,777 | 770,058,226 |
End of period (including undistributed net investment income of $81,157 and undistributed net investment income of $75,163, respectively) | $ 956,450,272 | $ 801,904,777 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations | |||||
Net investment income | .030 | .020 | .008 | .006 | .011 |
Distributions from net investment income | (.030) | (.020) | (.008) | (.006) | (.011) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | 3.01% | 1.99% | .76% | .64% | 1.13% |
Ratios to Average Net Assets B, C | |||||
Expenses before reductions | .54% | .54% | .54% | .54% | .54% |
Expenses net of fee waivers, | .54% | .54% | .54% | .54% | .54% |
Expenses net of all reductions | .40% | .43% | .53% | .53% | .51% |
Net investment income | 2.98% | 1.98% | .77% | .64% | 1.12% |
Supplemental Data | |||||
Net assets, end of period | $ 956,450 | $ 801,905 | $ 770,058 | $ 687,760 | $ 652,072 |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2006
1. Significant Accounting Policies.
Fidelity Ohio Municipal Income Fund (the Income Fund) is a fund of Fidelity Municipal Trust. Fidelity Ohio Municipal Money Market Fund (the Money Market Fund) is a fund of Fidelity Municipal 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 Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. Each Fund is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of Ohio. The Funds may invest in Fidelity Central Funds, which are open-end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Income Fund and the Money Market Fund, which are also consistently followed by the Fidelity Central Funds:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, each Fund uses independent pricing services approved by the Board of Trustees to value their investments. For the Income Fund, debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
As permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities owned by the Money Market Fund are valued at amortized cost which approximates value.
Annual Report
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions, including the Funds' investment activity in the Fidelity Central Funds, are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and income distributions from the Fidelity Central Funds are accrued as earned, with any income distributions receivable as of period end included in Interest Receivable on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Funds will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, market discount, deferred trustees compensation, and losses deferred due to futures transactions.
The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
Cost for | Unrealized | Unrealized | Net Unrealized | |
Fidelity Ohio Municipal Income Fund | $ 407,150,394 | $ 11,858,979 | $ (581,307) | $ 11,277,672 |
Fidelity Ohio Municipal Money Market Fund | 928,674,698 | - | - | - |
Undistributed | Undistributed | Capital Loss | |
Fidelity Ohio Municipal | $ 277,617 | $ 612,325 | $ - |
Fidelity Ohio Municipal | 82,821 | 5,596 | - |
The tax character of distributions paid was as follows:
December 31, 2006 | ||||
Tax-exempt | Ordinary | Long-term | Total | |
Fidelity Ohio Municipal Income Fund | $ 16,558,868 | $ - | $ 3,971,411 | $ 20,530,279 |
Fidelity Ohio Municipal Money Market Fund | 25,274,018 | - | - | 25,274,018 |
December 31, 2005 | ||||
Tax-exempt | Ordinary | Long-term | Total | |
Fidelity Ohio Municipal Income Fund | $ 17,117,253 | $ - | $ 6,682,810 | $ 23,800,063 |
Fidelity Ohio Municipal Money Market Fund | 14,990,504 | - | - | 14,990,504 |
Short-Term Trading (Redemption) Fees. Shares held in the Income Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Annual Report
1. Significant Accounting Policies - continued
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Funds' net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds' financial statement disclosures.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. Certain Funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's Schedule of Investments. Certain Funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. The Income Fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain
Annual Report
Notes to Financial Statements - continued
2. Operating Policies - continued
Futures Contracts - continued
percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Income Funds' Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $76,935,414 and $81,251,916, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each Fund's average net assets. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual | Group | Total | |
Fidelity Ohio Municipal Income Fund | .25% | .12% | .37% |
Fidelity Ohio Municipal Money Market Fund | .25% | .12% | .37% |
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the Funds' transfer and shareholder servicing agent and accounting functions. The Funds pay account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Ohio Municipal Income Fund | .08% | | |
Fidelity Ohio Municipal Money Market Fund | .14% |
Investments in Fidelity Central Funds. The Funds may invest in Fidelity Central Funds. The Funds' Schedule of Investments lists each of the Fidelity Central Funds as an investment of each Fund but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
5. Committed Line of Credit.
The Income Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro rata portion of the line of credit, which is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:
Fidelity Ohio Municipal Income Fund | $ 947 |
During the period, there were no borrowings on this line of credit.
Annual Report
Notes to Financial Statements - continued
6. Expense Reductions.
Through arrangements with each applicable Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
Custody | Transfer | Accounting | |
Fidelity Ohio Municipal Income Fund | $ 6,868 | $ 177,360 | $ 8,520 |
Fidelity Ohio Municipal Money Market Fund | 14,171 | 1,109,091 | 52,450 |
7. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Fidelity Ohio Municipal Income Fund and Fidelity Ohio Municipal Money Market:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Ohio Municipal Income Fund (a fund of Fidelity Municipal Trust) and Fidelity Ohio Municipal Money Market Fund (a fund of Fidelity Municipal Trust II) at December 31, 2006 the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Municipal Trust's and Fidelity Municipal Trust II's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 13, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trusts and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Each of the Trustees oversees 348 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (76) | |
Year of Election or Appointment: 1984 or 1991 Trustee of Fidelity Municipal Trust (1984) and Fidelity Municipal Trust II (1991). Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). | |
Robert L. Reynolds (54) | |
Year of Election or Appointment: 2003 Mr. Reynolds is President and a Director of FMR (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and FMR Co., Inc. (2005-present). Mr. Reynolds also serves as Vice Chairman (2006-present), a Director (2003-present), and Chief Operating Officer of FMR Corp. and a Director of Strategic Advisers, Inc. (2005-present). He also serves on the Board at Fidelity Investments Canada, Ltd. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trusts or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (58) | |
Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). | |
Albert R. Gamper, Jr. (64) | |
Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. | |
George H. Heilmeier (70) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. | |
James H. Keyes (66) | |
Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). | |
Marie L. Knowles (60) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (62) | |
Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. | |
Cornelia M. Small (62) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (67) | |
Year of Election or Appointment: 2001 or 2002 Trustee of Fidelity Municipal Trust (2002) and Fidelity Municipal Trust II (2001). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), and Metalmark Capital (private equity investment firm, 2005-present). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (67) | |
Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (62) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust and Fidelity Municipal Trust II. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. | |
Kimberley H. Monasterio (43) | |
Year of Election or Appointment: 2007 President and Treasurer of Ohio Municipal Money Market and Ohio Municipal Income. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
Boyce I. Greer (50) | |
Year of Election or Appointment: 2006 Vice President of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002). | |
Charles S. Morrison (46) | |
Year of Election or Appointment: 2005 Vice President of Ohio Municipal Money Market. Mr. Morrison also serves as Vice President of Fidelity's Money Market Funds (2005- present) and certain Asset Allocation Funds (2002-present). Previously, he served as Vice President of Fidelity's Bond Funds (2002-2005) and certain Balanced Funds (2002-2005). He served as Vice President (2002-2005) and Bond Group Leader (2002-2005) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002-present) and FMR (2002-present). Mr. Morrison joined Fidelity Investments in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
David L. Murphy (58) | |
Year of Election or Appointment: 2002 or 2005 Vice President of Ohio Municipal Money Market (2002) and Ohio Municipal Income (2005). Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). | |
Thomas J. Silvia (45) | |
Year of Election or Appointment: 2005 Vice President of Ohio Municipal Income. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present), certain Balanced Funds (2005-present), certain Asset Allocation Funds (2005- present), and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004). | |
Jamie Pagliocco (42) | |
Year of Election or Appointment: 2006 Vice President of Ohio Municipal Income. Mr. Pagliocco also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Pagliocco worked as a municipal bond trader, assistant fixed income head trader, and manager. | |
Douglas McGinley (41) | |
Year of Election or Appointment: 2006 Vice President of Ohio Municipal Money Market. Mr. McGinley also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. McGinley worked as an analyst and manager. | |
Eric D. Roiter (58) | |
Year of Election or Appointment: 1998 Secretary of Ohio Municipal Money Market and Ohio Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). | |
Stuart Fross (47) | |
Year of Election or Appointment: 2003 Assistant Secretary of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003-present), Vice President and Secretary of FDC (2005- present), and is an employee of FMR. | |
R. Stephen Ganis (40) | |
Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). | |
Joseph B. Hollis (58) | |
Year of Election or Appointment: 2006 Chief Financial Officer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). | |
Kenneth A. Rathgeber (59) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005- present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
Bryan A. Mehrmann (45) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). | |
Kenneth B. Robins (37) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). | |
Robert G. Byrnes (40) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005- present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). | |
John H. Costello (60) | |
Year of Election or Appointment: 1986 or 1989 Assistant Treasurer of Ohio Municipal Money Market (1989) and Ohio Municipal Income (1986). Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (52) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (51) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Gary W. Ryan (48) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). | |
Salvatore Schiavone (41) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Ohio Municipal Money Market and Ohio Municipal Income. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005- present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
Fund | Pay Date | Record Date | Capital Gains |
Fidelity Ohio Municipal Income Fund | 2/05/07 | 02/02/07 | $0.025 |
The funds hereby designate as capital gain dividends the amounts noted below for the taxable year ended December 31, 2006 or, if subsequently determined to be different, the net capital gain of such year.
Fund | |
Fidelity Ohio Municipal Income Fund | $4,413,087 |
Fidelity Ohio Municipal Money Market Fund | $5,596 |
During fiscal year ended 2006, 100% of Fidelity Ohio Municipal Income Fund and Fidelity Ohio Municipal Money Market Fund income dividends were free from federal income tax, and 4.86% of Fidelity Ohio Municipal Income Fund and 45.70% of Fidelity Ohio Municipal Money Market Fund income dividends were subject to the federal alternative minimum tax.
The funds will notify shareholders in January 2007 of amounts for use in preparing 2006 income tax returns.
Annual Report
Proxy Voting Results
A special meeting of Fidelity Ohio Municipal Money Market Fund's shareholders was held on January 18, 2006. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To elect a Board of Trustees. A | ||
# of | % of | |
Dennis J. Dirks | ||
Affirmative | 667,201,902.33 | 95.261 |
Withheld | 33,193,298.35 | 4.739 |
TOTAL | 700,395,200.68 | 100.000 |
Albert R. Gamper, Jr. | ||
Affirmative | 667,477,031.41 | 95.300 |
Withheld | 32,918,169.27 | 4.700 |
TOTAL | 700,395,200.68 | 100.000 |
Robert M. Gates | ||
Affirmative | 666,308,716.35 | 95.133 |
Withheld | 34,086,484.33 | 4.867 |
TOTAL | 700,395,200.68 | 100.000 |
George H. Heilmeier | ||
Affirmative | 664,652,778.09 | 94.897 |
Withheld | 35,742,422.59 | 5.103 |
TOTAL | 700,395,200.68 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 664,170,496.79 | 94.828 |
Withheld | 36,224,703.89 | 5.172 |
TOTAL | 700,395,200.68 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 663,788,907.22 | 94.773 |
Withheld | 36,606,293.46 | 5.227 |
TOTAL | 700,395,200.68 | 100.000 |
Stephen P. Jonas | ||
Affirmative | 667,006,752.59 | 95.233 |
Withheld | 33,388,448.09 | 4.767 |
TOTAL | 700,395,200.68 | 100.000 |
# of | % of | |
Marie L. Knowles | ||
Affirmative | 666,373,338.05 | 95.142 |
Withheld | 34,021,862.63 | 4.858 |
TOTAL | 700,395,200.68 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 666,334,938.56 | 95.137 |
Withheld | 34,060,262.12 | 4.863 |
TOTAL | 700,395,200.68 | 100.000 |
William O. McCoy | ||
Affirmative | 665,764,692.27 | 95.056 |
Withheld | 34,630,508.41 | 4.944 |
TOTAL | 700,395,200.68 | 100.000 |
Robert L. Reynolds | ||
Affirmative | 667,335,421.55 | 95.280 |
Withheld | 33,059,779.13 | 4.720 |
TOTAL | 700,395,200.68 | 100.000 |
Cornelia M. Small | ||
Affirmative | 667,579,724.56 | 95.315 |
Withheld | 32,815,476.12 | 4.685 |
TOTAL | 700,395,200.68 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 665,215,267.33 | 94.977 |
Withheld | 35,179,933.35 | 5.023 |
TOTAL | 700,395,200.68 | 100.000 |
Kenneth L. Wolfe | ||
Affirmative | 666,060,714.08 | 95.098 |
Withheld | 34,334,486.60 | 4.902 |
TOTAL | 700,395,200.68 | 100.000 |
A Denotes trust-wide proposal and voting results. |
Annual Report
Proxy Voting Results - continued
A special meeting of Fidelity Ohio Municipal Income Fund's shareholders was held on January 18, 2006. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To elect a Board of Trustees. A | ||
# of | % of | |
Dennis J. Dirks | ||
Affirmative | 4,012,578,790.76 | 95.238 |
Withheld | 200,653,306.55 | 4.762 |
TOTAL | 4,213,232,097.31 | 100.000 |
Albert R. Gamper, Jr. | ||
Affirmative | 4,015,643,707.84 | 95.310 |
Withheld | 197,588,389.47 | 4.690 |
TOTAL | 4,213,232,097.31 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,004,345,809.00 | 95.042 |
Withheld | 208,886,288.31 | 4.958 |
TOTAL | 4,213,232,097.31 | 100.000 |
George H. Heilmeier | ||
Affirmative | 4,008,127,523.93 | 95.132 |
Withheld | 205,104,573.38 | 4.868 |
TOTAL | 4,213,232,097.31 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 3,993,175,527.66 | 94.777 |
Withheld | 220,056,569.65 | 5.223 |
TOTAL | 4,213,232,097.31 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 3,987,333,615.26 | 94.638 |
Withheld | 225,898,482.05 | 5.362 |
TOTAL | 4,213,232,097.31 | 100.000 |
Stephen P. Jonas | ||
Affirmative | 4,010,007,680.52 | 95.177 |
Withheld | 203,224,416.79 | 4.823 |
TOTAL | 4,213,232,097.31 | 100.000 |
# of | % of | |
Marie L. Knowles | ||
Affirmative | 4,010,231,303.96 | 95.182 |
Withheld | 203,000,793.35 | 4.818 |
TOTAL | 4,213,232,097.31 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,009,136,177.44 | 95.156 |
Withheld | 204,095,919.87 | 4.844 |
TOTAL | 4,213,232,097.31 | 100.000 |
William O. McCoy | ||
Affirmative | 4,001,996,735.35 | 94.986 |
Withheld | 211,235,361.96 | 5.014 |
TOTAL | 4,213,232,097.31 | 100.000 |
Robert L. Reynolds | ||
Affirmative | 4,010,560,206.65 | 95.190 |
Withheld | 202,671,890.66 | 4.810 |
TOTAL | 4,213,232,097.31 | 100.000 |
Cornelia M. Small | ||
Affirmative | 4,011,161,760.21 | 95.204 |
Withheld | 202,070,337.10 | 4.796 |
TOTAL | 4,213,232,097.31 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,001,217,912.57 | 94.968 |
Withheld | 212,014,184.74 | 5.032 |
TOTAL | 4,213,232,097.31 | 100.000 |
Kenneth L. Wolfe | ||
Affirmative | 4,011,439,868.05 | 95.211 |
Withheld | 201,792,229.26 | 4.789 |
TOTAL | 4,213,232,097.31 | 100.000 |
A Denotes trust-wide proposal and voting results. |
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* 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.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management & Research (Far East) Inc.)
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated lines for quickest service
OFF-UANN-0207
1.787739.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Pennsylvania Municipal
Income Fund
and
Fidelity
Pennsylvania Municipal
Money Market Fund
Annual Report
December 31, 2006
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity Pennsylvania Municipal Income Fund | ||
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Fidelity Pennsylvania Municipal Money Market Fund | ||
Investment Changes/ | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the Financial Statements | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
Proxy Voting Results |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
We have seen consistently strong performance from stocks and bonds of late, and some relief in energy prices, but the housing market slowdown bears watching for how it might affect the consumer. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2006 | Past 1 | Past 5 | Past 10 |
Fidelity® PA Municipal Income Fund | 4.02% | 5.03% | 5.26% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Pennsylvania Municipal Income Fund on December 31, 1996. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Management's Discussion of Fund Performance
Comments from Mark Sommer, Portfolio Manager of Fidelity® Pennsylvania Municipal Income Fund
Growing investor demand and a strong second-half rally helped municipal bonds post solid returns and take their place as one of the best performing investment-grade debt classes for the year ending December 31, 2006. Throughout roughly the first six months of the period, muni bond prices declined as the Federal Reserve Board raised short-term interest rates to return them to a more "neutral level" and fend off inflation. Beginning in mid-summer 2006, however, munis rebounded amid hopes that the Fed would pause its rate hike campaign. Those hopes were eventually actualized when the central bank left rates unchanged at its August, September, October and December Open Market Committee meetings. Demand - which was amplified by non-traditional investors such as hedge funds - increased substantially, as investors sought out munis for their attractive after-tax yields. Investors also were drawn to the fact that unlike long-term Treasury bonds, which generally yielded less than short-term Treasuries throughout much of the period, long-term rates for munis were higher than short rates, giving investors the opportunity to lock in attractive long-term yields. Against this backdrop, the Lehman Brothers® Municipal Bond Index - a performance measure of approximately 34,000 investment-grade, fixed-rate, tax-exempt bonds - returned 4.84%. In comparison, the overall taxable bond market, as measured by the Lehman Brothers Aggregate Bond Index, returned 4.33%.
During the past year, the fund gained 4.02% and the Lehman Brothers Pennsylvania Enhanced Municipal Bond Index gained 4.63%. Turning to the Pennsylvania muni market, it modestly trailed the national market average due primarily to its somewhat lower concentration in long-term bonds. During the past year, long-term securities outperformed shorter-term securities - driven by investors' strong appetite for yield-advantaged securities. Relative to the index, my comparatively large weighting in higher-quality securities worked against us as uninsured bonds outperformed, driven by robust investor demand for higher-yielding debt. Likewise, the fund's underweighting in longer-term securities cost us some ground because they outpaced the intermediate-term bonds I emphasized. While I invested in bonds of various maturities, I kept the fund's duration - meaning its interest rate sensitivity - in line with the index, a strategy that neutralized the impact of overall interest rate movements on the fund's relative performance. Aiding the fund's performance relative to the index was its overweighting in bonds that were prerefunded during the period, a process that helped boost the bonds' returns.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2006 to December 31, 2006).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Shareholder Expense Example - continued
Beginning | Ending | Expenses Paid | |
Fidelity Pennsylvania Municipal Income Fund | |||
Actual | $ 1,000.00 | $ 1,038.80 | $ 2.52 |
Hypothetical A | $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Fidelity Pennsylvania Municipal Money Market Fund | |||
Actual | $ 1,000.00 | $ 1,016.00 | $ 2.54 |
Hypothetical A | $ 1,000.00 | $ 1,022.68 | $ 2.55 |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annualized | |
Fidelity Pennsylvania Municipal Income Fund | .49% |
Fidelity Pennsylvania Municipal Money Market Fund | .50% |
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Investment Changes
Top Five Sectors as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
General Obligations | 32.8 | 34.7 |
Transportation | 14.4 | 11.7 |
Escrowed/Pre-Refunded | 12.8 | 15.1 |
Health Care | 11.5 | 9.9 |
Water & Sewer | 10.3 | 9.6 |
Average Years to Maturity as of December 31, 2006 | ||
6 months ago | ||
Years | 11.5 | 11.5 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2006 | ||
6 months ago | ||
Years | 5.4 | 5.6 |
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 this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | AAA 74.6% | ![]() | AAA 75.8% | ||||
![]() | AA,A 17.8% | ![]() | AA,A 16.7% | ||||
![]() | BBB 4.9% | ![]() | BBB 3.4% | ||||
![]() | BB and Below 0.1% | ![]() | BB and Below 0.1% | ||||
![]() | Not Rated 1.1% | ![]() | Not Rated 2.5% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's ® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. |
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Bonds - 98.5% | ||||
Principal Amount | Value (Note 1) | |||
Guam - 0.1% | ||||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35 | $ 325,000 | $ 348,670 | ||
New Jersey/Pennsylvania - 1.3% | ||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5.25% 7/1/19 (Pre-Refunded to 7/1/13 @ 100) (d) | 1,000,000 | 1,087,520 | ||
Delaware River Port Auth. Pennsylvania & New Jersey Rev.: | ||||
(Port District Proj.) Series A, 5.5% 1/1/18 (FSA Insured) | 2,000,000 | 2,162,700 | ||
Series 1999, 6% 1/1/18 (FSA Insured) | 700,000 | 746,221 | ||
3,996,441 | ||||
Pennsylvania - 95.9% | ||||
Allegheny County Arpt. Auth. Rev. (Pittsburg Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (MBIA Insured) (c) | 2,545,000 | 2,715,795 | ||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.): | ||||
Series A1: | ||||
5.75% 1/1/08 (MBIA Insured) (c) | 1,000,000 | 1,018,800 | ||
5.75% 1/1/11 (MBIA Insured) (c) | 2,000,000 | 2,130,980 | ||
5.75% 1/1/12 (MBIA Insured) (c) | 3,000,000 | 3,238,230 | ||
5.75% 1/1/14 (MBIA Insured) (c) | 3,000,000 | 3,303,990 | ||
5.75% 1/1/09 (MBIA Insured) (c) | 3,000,000 | 3,111,780 | ||
Allegheny County Gen. Oblig. Series C55, 5.375% 11/1/15 (MBIA Insured) | 3,535,000 | 3,836,748 | ||
Allegheny County Higher Ed. Bldg. Auth. Univ. Rev.: | ||||
(Carnegie Mellon Univ. Proj.): | ||||
5.125% 3/1/32 | 1,700,000 | 1,780,988 | ||
5.25% 3/1/32 | 2,000,000 | 2,111,560 | ||
(Duquesne Univ. Proj.) 6.5% 3/1/10 (AMBAC Insured) | 400,000 | 432,452 | ||
Allegheny County Hosp. Dev. Auth. Rev.: | ||||
(Health Ctr.-UPMC Health Sys. Proj.) Series A: | ||||
4.625% 8/1/12 (MBIA Insured) | 1,000,000 | 1,020,280 | ||
4.625% 8/1/14 (MBIA Insured) | 3,560,000 | 3,626,928 | ||
5.55% 4/1/12 (MBIA Insured) | 2,845,000 | 2,913,650 | ||
(Jefferson Reg'l. Med. Ctr. Proj.) Series B: | ||||
4% 5/1/07 | 685,000 | 684,938 | ||
4.05% 5/1/08 | 1,425,000 | 1,427,309 | ||
5% 5/1/09 | 1,475,000 | 1,506,698 | ||
Allegheny County Indl. Dev. Auth. Rev. (Watson Institute Ed. Ctr. Proj.) 3.375%, tender 5/1/08, LOC PNC Bank NA, Pittsburgh (b) | 3,000,000 | 2,980,110 | ||
Allegheny County San. Auth. Swr. Rev.: | ||||
0% 12/1/12 (Escrowed to Maturity) (d) | 2,260,000 | 1,772,247 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value (Note 1) | |||
Pennsylvania - continued | ||||
Allegheny County San. Auth. Swr. Rev.: - continued | ||||
5.5% 12/1/30 (MBIA Insured) | $ 305,000 | $ 325,029 | ||
5.5% 12/1/30 (Pre-Refunded to 12/1/10 @ 101) (d) | 1,695,000 | 1,818,430 | ||
Annville-Cleona School District: | ||||
6% 3/1/28 (FSA Insured) | 1,500,000 | 1,737,525 | ||
6% 3/1/31 (FSA Insured) | 1,975,000 | 2,290,763 | ||
Bristol Borough School District: | ||||
5.25% 3/1/25 (FSA Insured) | 2,400,000 | 2,630,472 | ||
5.25% 3/1/31 (FSA Insured) | 5,495,000 | 5,980,593 | ||
Bucks County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania Suburban Wtr. Co. Proj.) Series 2002, 5.55% 9/1/32 (FGIC Insured) (c) | 1,870,000 | 1,993,009 | ||
Canon McMillan School District: | ||||
Series 2001 B, 5.75% 12/1/33 (FGIC Insured) | 8,995,000 | 9,599,194 | ||
Series 2002 B, 5.75% 12/1/35 (FGIC Insured) | 2,500,000 | 2,737,725 | ||
Central Dauphin School District Gen. Oblig. 7.5% 2/1/30 (Pre-Refunded to 2/1/16 @ 100) (d) | 5,000,000 | 6,430,800 | ||
Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B: | ||||
5% 5/15/08 (AMBAC Insured) | 600,000 | 610,254 | ||
5.25% 5/15/22 (AMBAC Insured) | 1,450,000 | 1,492,181 | ||
Cumberland County Muni. Auth. College Rev. (Dickerson College Proj.) Series A, 5.5% 11/1/30 (Pre-Refunded to 11/1/10 @ 100) (d) | 4,200,000 | 4,479,468 | ||
Delaware County Auth. College Rev. (Haverford College Proj.): | ||||
5.75% 11/15/29 | 5,000,000 | 5,379,100 | ||
6% 11/15/30 | 3,620,000 | 3,929,365 | ||
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.): | ||||
Series A: | ||||
5% 12/15/09 | 865,000 | 887,109 | ||
5% 12/15/10 | 905,000 | 935,055 | ||
Series B: | ||||
4% 12/15/07 | 305,000 | 304,820 | ||
5% 12/15/08 | 800,000 | 814,224 | ||
Delaware County Indl. Dev. Auth. Rev. (Philadelphia Suburban Wtr. Co. Proj.) 6% 6/1/29 (FGIC Insured) (c) | 2,500,000 | 2,641,650 | ||
Delaware County Reg'l. Wtr. Quality Cont. Auth. Swr. Rev. Series 2001, 5.25% 5/1/12 (FGIC Insured) | 2,165,000 | 2,317,849 | ||
East Stroudsburg Area School District: | ||||
6.5% 9/1/18 (FSA Insured) (a) | 1,280,000 | 1,543,322 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value (Note 1) | |||
Pennsylvania - continued | ||||
East Stroudsburg Area School District: - continued | ||||
7.5% 9/1/22 (FSA Insured) (a) | $ 1,500,000 | $ 1,928,205 | ||
7.75% 9/1/28 (FSA Insured) (a) | 2,750,000 | 3,584,708 | ||
Easton Area School District Series 2006, 7.5% 4/1/22 (FSA Insured) | 2,700,000 | 3,452,787 | ||
Harrisburg Auth. Dauphin County School Rev. (Harrisburg School District Rfdg. Proj.) 5.5% 4/1/14 (FGIC Insured) | 1,655,000 | 1,795,658 | ||
Harrisburg Auth. Wtr. Rev. 5.75% 7/15/12 (FGIC Insured) | 1,115,000 | 1,207,110 | ||
Kennett Consolidated School District Series A, 5.25% 2/15/15 (FGIC Insured) | 1,310,000 | 1,418,651 | ||
Lancaster County Hosp. Auth. Rev. 5% 11/1/20 | 1,065,000 | 1,121,552 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (b)(c) | 2,000,000 | 1,973,320 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A: | ||||
6% 6/1/09 (AMBAC Insured) | 2,365,000 | 2,486,916 | ||
6% 6/1/16 (AMBAC Insured) | 1,000,000 | 1,158,890 | ||
Montgomery County Higher Ed. & Health Auth. Rev. (Health Care-Holy Redeemer Health Proj.) Series A, 5.5% 10/1/08 (AMBAC Insured) | 1,000,000 | 1,022,940 | ||
Montgomery County Indl. Dev. Auth. Poll. Cont. Rev. (Retirement Cmnty. Proj.) 5% 11/15/09 | 1,300,000 | 1,336,920 | ||
Muhlenberg School District Series AA, 5.375% 9/1/15 (FGIC Insured) | 1,055,000 | 1,148,346 | ||
Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/10 (Escrowed to Maturity) (d) | 1,000,000 | 866,710 | ||
Owen J. Roberts School District 5.5% 8/15/19 (Pre-Refunded to 8/15/12 @ 100) (d) | 1,525,000 | 1,667,786 | ||
Pennsbury School District 5.5% 1/15/17 (FGIC Insured) | 2,160,000 | 2,352,823 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.: | ||||
(Amtrak Proj.) Series 2001 A: | ||||
6.25% 11/1/31 (c) | 3,300,000 | 3,567,861 | ||
6.375% 11/1/41 (c) | 1,300,000 | 1,410,786 | ||
(Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (b)(c) | 2,500,000 | 2,500,700 | ||
Pennsylvania Gen. Oblig. First Series: | ||||
5% 7/1/19 | 2,500,000 | 2,693,425 | ||
5.25% 2/1/14 | 125,000 | 133,946 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value (Note 1) | |||
Pennsylvania - continued | ||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Drexel Univ. Proj.): | ||||
Series A: | ||||
5% 5/1/16 (MBIA Insured) | $ 1,135,000 | $ 1,230,522 | ||
5% 5/1/18 (MBIA Insured) | 1,220,000 | 1,315,453 | ||
6% 5/1/29 (Pre-Refunded to 5/1/09 @ 100) (d) | 3,470,000 | 3,649,191 | ||
(Lafayette College Proj.) 6% 5/1/30 | 2,500,000 | 2,666,900 | ||
(Trustees of the Univ. of Pennsylvania Proj.) Series B, 5.25% 9/1/15 | 1,000,000 | 1,106,080 | ||
(Univ. of Pennsylvania Health Systems Proj.) Series A, 5% 8/15/17 (AMBAC Insured) | 3,000,000 | 3,225,720 | ||
(UPMC Health Sys. Proj.): | ||||
Series 1999 A: | ||||
5.25% 8/1/10 (FSA Insured) | 1,000,000 | 1,048,070 | ||
5.25% 8/1/11 (FSA Insured) | 1,000,000 | 1,047,810 | ||
Series 2001 A: | ||||
6% 1/15/22 | 400,000 | 437,600 | ||
6% 1/15/31 | 1,000,000 | 1,091,250 | ||
Series 2000 S, 5.5% 6/15/15 (AMBAC Insured) | 500,000 | 528,700 | ||
Pennsylvania Hsg. Fin. Agcy. Series 54A, 5.375% 10/1/28 (c) | 200,000 | 200,524 | ||
Pennsylvania Indl. Dev. Auth. Rev. 5.5% 7/1/16 (AMBAC Insured) | 1,080,000 | 1,186,898 | ||
Pennsylvania Pub. School Bldg. Auth. School Rev.: | ||||
(Northwestern School District Proj.) Series E, 5.75% 1/15/19 (FGIC Insured) | 500,000 | 520,760 | ||
(Philadelphia School District Proj.) 5% 6/1/33 (Pre-Refunded to 6/1/13 @ 100) (d) | 3,210,000 | 3,451,713 | ||
Pennsylvania State Univ.: | ||||
5% 9/1/29 | 1,550,000 | 1,649,572 | ||
5% 9/1/35 | 4,485,000 | 4,752,979 | ||
Pennsylvania Tpk. Commission Tpk. Rev.: | ||||
Series A: | ||||
5% 12/1/25 (AMBAC Insured) | 6,535,000 | 7,011,140 | ||
5% 12/1/26 (AMBAC Insured) | 2,000,000 | 2,142,500 | ||
Series S, 5.625% 6/1/12 (FGIC Insured) | 2,000,000 | 2,178,180 | ||
Philadelphia Arpt. Rev.: | ||||
Series 1998, 5.375% 6/15/10 (FGIC Insured) (c) | 2,000,000 | 2,080,920 | ||
5.375% 6/15/11 (FGIC Insured) (c) | 3,770,000 | 3,921,969 | ||
6% 6/15/08 (FGIC Insured) (c) | 3,000,000 | 3,096,300 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value (Note 1) | |||
Pennsylvania - continued | ||||
Philadelphia Gas Works Rev.: | ||||
(1975 Gen. Ordinance Proj.) 17th Series, 5% 7/1/08 (FSA Insured) | $ 1,000,000 | $ 1,018,990 | ||
(1998 Gen. Ordinance Proj.) 4th Series, 5.25% 8/1/17 (FSA Insured) | 2,290,000 | 2,466,330 | ||
Series A1, 5.25% 9/1/18 (Assured Guaranty Ltd. Insured) | 3,340,000 | 3,615,183 | ||
Philadelphia Gen. Oblig. 5.25% 9/15/12 (FSA Insured) | 2,455,000 | 2,597,636 | ||
Philadelphia Hosp. & Higher Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series A: | ||||
5% 5/15/09 | 1,000,000 | 1,024,990 | ||
5.5% 5/15/08 | 1,000,000 | 1,023,680 | ||
Philadelphia Muni. Auth. Rev.: | ||||
(Muni. Svcs. Bldg. Lease Prog.) 0% 3/15/11 (FSA Insured) | 1,000,000 | 848,590 | ||
Series B, 5.25% 11/15/11 (FSA Insured) | 2,000,000 | 2,130,320 | ||
Philadelphia Redev. Auth. Rev. (Philadelphia Neighborhood Transformation Initiative Proj.) Series 2005 C, 5% 4/15/31 (FGIC Insured) | 1,000,000 | 1,056,120 | ||
Philadelphia School District: | ||||
Series 2002 A, 5.5% 2/1/26 (Pre-Refunded to 2/1/12 @ 100) (d) | 1,565,000 | 1,698,729 | ||
Series 2004 D, 5.25% 6/1/34 (FGIC Insured) | 2,785,000 | 2,998,804 | ||
Series 2005 D: | ||||
5.5% 6/1/16 (FSA Insured) | 2,030,000 | 2,281,964 | ||
5.5% 6/1/17 (FSA Insured) | 2,125,000 | 2,401,845 | ||
Series B, 5.625% 8/1/15 (Pre-Refunded to 8/1/12 @ 100) (d) | 1,510,000 | 1,659,958 | ||
Series D, 5.125% 6/1/34 (FGIC Insured) | 1,800,000 | 1,921,518 | ||
Philadelphia Wtr. & Wastewtr. Rev.: | ||||
Series 14, 0% 10/1/08 (MBIA Insured) | 5,300,000 | 4,970,446 | ||
Series A: | ||||
5% 11/1/31 (FGIC Insured) | 1,075,000 | 1,125,192 | ||
5% 7/1/35 (FSA Insured) | 2,130,000 | 2,255,329 | ||
5.375% 11/1/19 (FGIC Insured) | 3,000,000 | 3,254,430 | ||
6.25% 8/1/10 (MBIA Insured) | 1,480,000 | 1,605,238 | ||
Pittsburgh Gen. Oblig.: | ||||
Series A: | ||||
5% 9/1/11 (MBIA Insured) | 5,020,000 | 5,281,291 | ||
5.5% 9/1/16 (AMBAC Insured) | 2,565,000 | 2,767,379 | ||
5.5% 9/1/16 (Pre-Refunded to 3/1/12 @ 100) (d) | 2,435,000 | 2,646,139 | ||
5.75% 9/1/22 (Pre-Refunded to 9/1/09 @ 100) (d) | 800,000 | 842,984 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value (Note 1) | |||
Pennsylvania - continued | ||||
Pittsburgh Gen. Oblig.: - continued | ||||
Series B: | ||||
5.25% 9/1/15 (FSA Insured) | $ 2,000,000 | $ 2,201,300 | ||
5.25% 9/1/16 (FSA Insured) | 3,000,000 | 3,320,640 | ||
Pittsburgh School District: | ||||
Series A, 5% 9/1/08 (MBIA Insured) | 3,080,000 | 3,148,653 | ||
Series C, 0% 8/1/08 (AMBAC Insured) | 2,000,000 | 1,887,780 | ||
Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. Series A, 6.5% 9/1/13 (FGIC Insured) | 10,000,000 | 11,275,796 | ||
Scranton-Lackawanna Health & Welfare Auth. Rev. (Cmnty. Med. Ctr. Proj.) 5.5% 7/1/12 (MBIA Insured) | 3,375,000 | 3,492,821 | ||
Spring-Ford Area School District: | ||||
5.375% 4/1/16 (FSA Insured) | 790,000 | 854,045 | ||
5.375% 4/1/17 (FSA Insured) | 830,000 | 893,595 | ||
5.375% 4/1/18 (FSA Insured) | 875,000 | 942,471 | ||
Upper Saint Clair Township School District 5.375% 7/15/16 (FSA Insured) | 1,855,000 | 2,012,953 | ||
West Allegheny School District Series B, 5.25% 2/1/12 (FGIC Insured) | 1,850,000 | 1,983,293 | ||
Westmoreland County Gen. Oblig.: | ||||
0% 8/1/15 (Escrowed to Maturity) (d) | 4,290,000 | 3,059,800 | ||
0% 8/1/16 (Escrowed to Maturity) (d) | 2,955,000 | 2,022,372 | ||
Westmoreland County Indl. Dev. Auth. Rev. (Nat'l. Waste & Energy Corp./Valley Landfill Expansion Proj.) 5.1%, tender 5/1/09 (b)(c) | 2,700,000 | 2,747,736 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev.: | ||||
Series A: | ||||
0% 8/15/19 (FGIC Insured) | 5,000,000 | 2,934,350 | ||
0% 8/15/20 (FGIC Insured) | 2,500,000 | 1,399,000 | ||
Series C, 0% 8/15/17 (Escrowed to Maturity) (d) | 2,500,000 | 1,630,100 | ||
York City Swr. Auth. Swr. Rev. 0% 12/1/12 (MBIA Insured) | 3,235,000 | 2,573,443 | ||
York County School of Technology Auth. Lease Rev.: | ||||
5.375% 2/15/18 (FGIC Insured) | 1,000,000 | 1,086,300 | ||
5.5% 2/15/23 (FGIC Insured) | 1,070,000 | 1,168,365 | ||
292,990,109 | ||||
Puerto Rico - 1.2% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Series Y, 5.5% 7/1/36 (FSA Insured) | 400,000 | 450,364 | ||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.: | ||||
Series II, 5.375% 7/1/16 (MBIA Insured) | 1,000,000 | 1,092,810 | ||
Municipal Bonds - continued | ||||
Principal | Value (Note 1) | |||
Puerto Rico - continued | ||||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.: - continued | ||||
Series QQ, 5.25% 7/1/13 (XL Cap. Assurance, Inc. Insured) | $ 500,000 | $ 544,360 | ||
Puerto Rico Govt. Dev. Bank 5% 12/1/10 | 1,500,000 | 1,559,220 | ||
3,646,754 |
TOTAL INVESTMENT PORTFOLIO - 98.5% (Cost $291,439,804) | 300,981,974 | ||
NET OTHER ASSETS - 1.5% | 4,690,980 | ||
NET ASSETS - 100% | $ 305,672,954 |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(d) Security collateralized by an amount sufficient to pay interest and principal. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 32.8% |
Transportation | 14.4% |
Escrowed/Pre-Refunded | 12.8% |
Health Care | 11.5% |
Water & Sewer | 10.3% |
Education | 9.8% |
Others* (individually less than 5%) | 8.4% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
December 31, 2006 | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $291,439,804) | $ 300,981,974 | |
Cash | 8,812,228 | |
Receivable for fund shares sold | 45,425 | |
Interest receivable | 3,543,655 | |
Prepaid expenses | 1,522 | |
Other receivables | 42,966 | |
Total assets | 313,427,770 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 7,083,149 | |
Payable for fund shares redeemed | 159,263 | |
Distributions payable | 320,614 | |
Accrued management fee | 94,118 | |
Other affiliated payables | 53,146 | |
Other payables and accrued expenses | 44,526 | |
Total liabilities | 7,754,816 | |
Net Assets | $ 305,672,954 | |
Net Assets consist of: | ||
Paid in capital | $ 296,060,276 | |
Undistributed net investment income | 16,649 | |
Accumulated undistributed net realized gain (loss) on investments | 53,859 | |
Net unrealized appreciation (depreciation) on investments | 9,542,170 | |
Net Assets, for 28,342,954 shares outstanding | $ 305,672,954 | |
Net Asset Value, offering price and redemption price per share ($305,672,954 ÷ 28,342,954 shares) | $ 10.78 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Financial Statements - continued
Statement of Operations
Year ended December 31, 2006 | ||
Investment Income | ||
Interest | $ 13,618,115 | |
Expenses | ||
Management fee | $ 1,132,356 | |
Transfer agent fees | 237,078 | |
Accounting fees and expenses | 76,529 | |
Custodian fees and expenses | 5,013 | |
Independent trustees' compensation | 1,169 | |
Registration fees | 20,430 | |
Audit | 51,498 | |
Legal | 2,612 | |
Miscellaneous | 4,363 | |
Total expenses before reductions | 1,531,048 | |
Expense reductions | (254,958) | 1,276,090 |
Net investment income | 12,342,025 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,233,270 | |
Futures contracts | 45,460 | |
Total net realized gain (loss) | 1,278,730 | |
Change in net unrealized appreciation (depreciation) on investment securities | (1,344,663) | |
Net gain (loss) | (65,933) | |
Net increase (decrease) in net assets resulting from operations | $ 12,276,092 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 12,342,025 | $ 12,367,867 |
Net realized gain (loss) | 1,278,730 | 1,976,866 |
Change in net unrealized appreciation (depreciation) | (1,344,663) | (6,355,623) |
Net increase (decrease) in net assets resulting | 12,276,092 | 7,989,110 |
Distributions to shareholders from net investment income | (12,336,853) | (12,342,980) |
Distributions to shareholders from net realized gain | (310,486) | (2,072,399) |
Total distributions | (12,647,339) | (14,415,379) |
Share transactions | 37,832,845 | 54,588,207 |
Reinvestment of distributions | 8,726,545 | 10,204,264 |
Cost of shares redeemed | (47,247,313) | (49,266,553) |
Net increase (decrease) in net assets resulting from share transactions | (687,923) | 15,525,918 |
Redemption fees | 142 | 10,940 |
Total increase (decrease) in net assets | (1,059,028) | 9,110,589 |
Net Assets | ||
Beginning of period | 306,731,982 | 297,621,393 |
End of period (including undistributed net investment income of $16,649 and undistributed net investment income of $22,723, respectively) | $ 305,672,954 | $ 306,731,982 |
Other Information Shares | ||
Sold | 3,522,178 | 4,981,143 |
Issued in reinvestment of distributions | 811,737 | 934,909 |
Redeemed | (4,399,396) | (4,514,890) |
Net increase (decrease) | (65,481) | 1,401,162 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 10.80 | $ 11.02 | $ 11.06 | $ 11.07 | $ 10.64 |
Income from Investment Operations | |||||
Net investment income B | .433 | .440 | .454 | .463 | .482 |
Net realized and unrealized gain (loss) | (.009) | (.148) | .006 | .091 | .471 |
Total from investment operations | .424 | .292 | .460 | .554 | .953 |
Distributions from net investment income | (.433) | (.439) | (.452) | (.462) | (.482) |
Distributions from net realized gain | (.011) | (.073) | (.048) | (.102) | (.041) |
Total distributions | (.444) | (.512) | (.500) | (.564) | (.523) |
Redemption fees added to paid | - | - | - | - | - |
Net asset value, end of period | $ 10.78 | $ 10.80 | $ 11.02 | $ 11.06 | $ 11.07 |
Total Return A | 4.02% | 2.70% | 4.28% | 5.11% | 9.14% |
Ratios to Average Net Assets C | |||||
Expenses before reductions | .50% | .50% | .50% | .51% | .51% |
Expenses net of fee waivers, | .50% | .50% | .50% | .51% | .51% |
Expenses net of all reductions | .42% | .45% | .49% | .50% | .49% |
Net investment income | 4.03% | 4.02% | 4.14% | 4.18% | 4.42% |
Supplemental Data | |||||
Net assets, end of period | $ 305,673 | $ 306,732 | $ 297,621 | $ 292,019 | $ 300,026 |
Portfolio turnover rate | 19% | 26% | 14% | 18% | 9% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Investment Changes/Performance
Maturity Diversification | |||
Days | % of fund's investments 12/31/06 | % of fund's investments 6/30/06 | % of fund's |
0 - 30 | 93.0 | 95.5 | 88.4 |
31 - 90 | 1.0 | 0.8 | 1.2 |
91 - 180 | 2.6 | 0.0 | 5.6 |
181 - 397 | 3.4 | 3.7 | 4.8 |
Weighted Average Maturity | |||
12/31/06 | 6/30/06 | 12/31/05 | |
Fidelity Pennsylvania Municipal Money Market Fund | 19 Days | 19 Days | 23 Days |
Pennsylvania Tax-Free Money Market Funds Average * | 25 Days | 18 Days | 27 Days |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | Variable Rate Demand Notes (VRDNs) 90.7% | ![]() | Variable Rate Demand Notes (VRDNs) 88.8% | ||||
![]() | Commercial Paper (including CP Mode) 0.5% | ![]() | Commercial Paper (including CP Mode) 0.5% | ||||
![]() | Tender Bonds 1.9% | ![]() | Tender Bonds 2.0% | ||||
![]() | Municipal Notes 3.2% | ![]() | Municipal Notes 2.5% | ||||
![]() | Other Investments 1.2% | ![]() | Other Investments 1.7% | ||||
![]() | Net Other Assets 2.5% | ![]() | Net Other Assets 4.5% |
Current and Historical Seven-Day Yields |
1/1/07 | 10/2/06 | 7/3/06 | 4/3/06 | 1/2/06 | |
Fidelity Pennsylvania Municipal Money Market Fund | 3.45% | 3.27% | 3.49% | 2.74% | 2.98% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it is possible to lose money by investing in the fund.
* Source: iMoneyNet, Inc.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Securities - 97.5% | |||
Principal Amount | Value (Note 1) | ||
Pennsylvania - 96.0% | |||
Adams County Indl. Dev. Auth. Rev. (Gettysburg Foundation Proj.) Series A, 3.96%, LOC Manufacturers & Traders Trust Co., VRDN (b) | $ 5,300,000 | $ 5,300,000 | |
Allegheny County Arpt. Auth. Rev. Participating VRDN: | |||
Series Putters 1594, 3.98% (Liquidity Facility JPMorgan Chase Bank) (b)(c)(d) | 2,005,000 | 2,005,000 | |
Series Putters 3743, 3.98% (Liquidity Facility Dexia Cr. Local de France) (b)(c)(d) | 2,195,000 | 2,195,000 | |
Allegheny County Arpt. Rev. Participating VRDN Series PA 567, 3.98% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 2,000,000 | 2,000,000 | |
Allegheny County Hosp. Dev. Auth. Rev.: | |||
Bonds (South Hills Health Sys. Proj.) Series 2000 A, 3.68%, tender 6/1/07, LOC PNC Bank NA, Pittsburgh (b) | 5,000,000 | 5,000,000 | |
(Presbyterian Univ. Health Sys. Proj.) Series 1990 A, 3.95% (MBIA Insured), VRDN (b) | 3,300,000 | 3,300,000 | |
Allegheny County Indl. Dev. Auth. Econ. Dev. Rev. (Glassport Realty Ltd. Proj.) 4.15%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(c) | 1,480,000 | 1,480,000 | |
Allegheny County Indl. Dev. Auth. Rev.: | |||
(Doren, Inc. Proj.) Series 1997 C, 4.08%, LOC Nat'l. City Bank, PA, VRDN (b)(c) | 1,200,000 | 1,200,000 | |
(R.I. Lampus Co. Proj.) Series 1997 A, 4.03%, LOC Nat'l. City Bank, PA, VRDN (b)(c) | 2,195,000 | 2,195,000 | |
(Union Elec. Steel Co. Proj.) Series 1996 A, 4.01%, LOC PNC Bank NA, Pittsburgh, VRDN (b)(c) | 3,120,000 | 3,120,000 | |
Berks County Indl. Dev. Auth. Rev. (Fleetwood Industries Bus. Trust Proj.) 4.01%, LOC First Tennessee Bank NA, Memphis, VRDN (b)(c) | 2,360,000 | 2,360,000 | |
Blair County Indl. Dev. Auth. Rev. (Homewood at Martinsburg Proj.) 3.94%, LOC Manufacturers & Traders Trust Co., VRDN (b) | 3,200,000 | 3,200,000 | |
Bucks County Indl. Dev. Auth. Rev.: | |||
(Double H Plastics, Inc. Proj.) Series 1993, 3.97%, LOC Wachovia Bank NA, VRDN (b)(c) | 1,400,000 | 1,400,000 | |
(Snowball Real Estate LP Proj.) 4.07%, LOC Wachovia Bank NA, VRDN (b)(c) | 2,105,000 | 2,105,000 | |
Butler County Indl. Dev. Auth. Rev. (Armco, Inc. Proj.) Series 1996 A, 4.01%, LOC Fifth Third Bank, Cincinnati, VRDN (b)(c) | 1,500,000 | 1,500,000 | |
Cambria County Ind. Dev. Auth. (Cambria Cogen Co. Proj.): | |||
Series 1998 A1, 3.95%, LOC Bayerische Hypo-und Vereinsbank AG, VRDN (b)(c) | 5,825,000 | 5,825,000 | |
Municipal Securities - continued | |||
Principal Amount | Value (Note 1) | ||
Pennsylvania - continued | |||
Cambria County Ind. Dev. Auth. (Cambria Cogen Co. Proj.): - continued | |||
Series 1998 A2, 4.07%, LOC Bayerische Hypo-und Vereinsbank AG, VRDN (b)(c) | $ 3,300,000 | $ 3,300,000 | |
Central Bucks School District Series 2000 A, 3.96% (FGIC Insured), VRDN (b) | 3,930,000 | 3,930,000 | |
Chester County Inter Unit 3.96%, LOC PNC Bank NA, Pittsburgh, VRDN (b) | 1,650,000 | 1,650,000 | |
Clipper Tax-Exempt Trust Participating VRDN Series 2006 13, 3.98% (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(b)(c)(d) | 5,050,000 | 5,050,000 | |
Cumberland County Muni. Auth. College Rev. Bonds (Dickinson College Proj.) Series 2000 B, 3.63%, tender 11/1/07 (AMBAC Insured) (b) | 5,405,000 | 5,405,000 | |
Delaware County Indl. Dev. Auth. Rev. Participating VRDN: | |||
Series PA 1295, 3.96% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 10,650,000 | 10,650,000 | |
Series Putters 1497, 3.97% (Liquidity Facility JPMorgan Chase Bank) (b)(c)(d) | 4,745,000 | 4,745,000 | |
Erie County Gen. Oblig. Participating VRDN Series PT 1961, 3.94% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 1,000,000 | 1,000,000 | |
Gen. Auth. of South Central (Lutheran Social Svc. Proj.) 3.96%, LOC Manufacturers & Traders Trust Co., VRDN (b) | 4,600,000 | 4,600,000 | |
Hatfield Township Indl. Dev. Auth. Exempt Facilities Rev. (Hatfield Quality Meats Proj.) 3.95%, LOC Bank of America NA, VRDN (b)(c) | 1,500,000 | 1,500,000 | |
Lawrence County Indl. Dev. Auth. Indl. Dev. Rev. (Atlantic States Materials Proj.) Series 1999, 4.02%, LOC Wachovia Bank NA, VRDN (b)(c) | 1,000,000 | 1,000,000 | |
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. Participating VRDN Series MS 1170X, 3.98% (Liquidity Facility Morgan Stanley) (b)(c)(d) | 2,000,000 | 2,000,000 | |
Lycoming County Indl. Dev. Auth. (FXD-Brodart Co. Proj.): | |||
Series A, 4.06%, LOC Manufacturers & Traders Trust Co., VRDN (b)(c) | 1,905,000 | 1,905,000 | |
Series C, 4.06%, LOC Manufacturers & Traders Trust Co., VRDN (b)(c) | 1,000,000 | 1,000,000 | |
Northampton County Indl. Dev. Auth. Rev.: | |||
Bonds (American Wtr. Corp. Proj.) Series 91, 3.68% tender 3/6/07, CP mode (c) | 2,500,000 | 2,500,000 | |
(Binney & Smith, Inc. Proj.) Series 1997 A, 3.97%, LOC JPMorgan Chase Bank, VRDN (b)(c) | 2,350,000 | 2,350,000 | |
Municipal Securities - continued | |||
Principal Amount | Value (Note 1) | ||
Pennsylvania - continued | |||
Northampton Indl. Dev. Auth. Rev. (Ultra-Poly Corp./Portland Ind. Park Proj.) 4.05%, LOC PNC Bank NA, Pittsburgh, VRDN (b)(c) | $ 2,200,000 | $ 2,200,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.: | |||
(Amtrak Proj.) Series B, 4.08%, LOC JPMorgan Chase Bank, VRDN (b)(c) | 19,700,000 | 19,700,000 | |
(FirstEnergy Corp. Proj.) Series A, 3.95%, LOC PNC Bank NA, Pittsburgh, VRDN (b)(c) | 4,800,000 | 4,800,000 | |
(Merck & Co. Proj.) Series 2000, 3.98%, VRDN (b)(c) | 11,000,000 | 11,000,000 | |
(York Wtr. Co. Proj.) Series B, 4.01% (XL Cap. Assurance, Inc. Insured), VRDN (b)(c) | 9,400,000 | 9,400,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Indl. Dev. Rev.: | |||
(AMC Delancey Trad Hrshy Lp Proj.) 3.7%, LOC Citizens Bank of Pennsylvania, VRDN (b)(c) | 6,000,000 | 6,000,000 | |
(Westrum Hanover, LP Proj.) 3.97%, LOC Fed. Home Ln. Bank Pittsburg, VRDN (b)(c) | 7,400,000 | 7,400,000 | |
(Westrum Harleysville II, LP Proj.) 3.97%, LOC Fed. Home Ln. Bank Pittsburg, VRDN (b)(c) | 4,335,000 | 4,335,000 | |
Series 1999 C4, 4.01%, LOC PNC Bank NA, Pittsburgh, VRDN (b)(c) | 700,000 | 700,000 | |
Series 2002 B6, 4.01%, LOC PNC Bank NA, Pittsburgh, VRDN (b)(c) | 700,000 | 700,000 | |
Series 2004 D2, 4.01%, LOC PNC Bank NA, Pittsburgh, VRDN (b)(c) | 2,300,000 | 2,300,000 | |
Series 2004 D6, 4.01%, LOC PNC Bank NA, Pittsburgh, VRDN (b)(c) | 2,500,000 | 2,500,000 | |
Series B3, 4.01%, LOC PNC Bank NA, Pittsburgh, VRDN (b)(c) | 1,100,000 | 1,100,000 | |
Series B5, 4.01%, LOC PNC Bank NA, Pittsburgh, VRDN (b)(c) | 900,000 | 900,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Solid Waste Disp. Rev.: | |||
Participating VRDN Series MT 47, 3.97% (Liquidity Facility Lloyds TSB Bank PLC) (b)(c)(d) | 4,500,000 | 4,500,000 | |
(Waste Mgmt., Inc. Proj.) 4.15%, VRDN (b)(c) | 4,200,000 | 4,200,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Wastewtr. Treatment Rev. (Sunoco, Inc. (R&M) Proj.): | |||
Series A, 4.115%, VRDN (b)(c) | 1,600,000 | 1,600,000 | |
Series B, 4.1% (Sunoco, Inc. Guaranteed), VRDN (b)(c) | 1,600,000 | 1,600,000 | |
Pennsylvania Gen. Oblig. Participating VRDN Series Merlots 04 B15, 3.95% (Liquidity Facility Wachovia Bank NA) (b)(d) | 3,085,000 | 3,085,000 | |
Pennsylvania Higher Ed. Assistance Agcy. Student Ln. Rev.: | |||
Series 1988 A, 3.95% (AMBAC Insured), VRDN (b)(c) | 9,500,000 | 9,500,000 | |
Series 1988 B, 3.95% (AMBAC Insured), VRDN (b)(c) | 13,700,000 | 13,700,000 | |
Municipal Securities - continued | |||
Principal Amount | Value (Note 1) | ||
Pennsylvania - continued | |||
Pennsylvania Higher Ed. Assistance Agcy. Student Ln. Rev.: - continued | |||
Series 1988 C, 3.95%, LOC Sallie Mae, VRDN (b)(c) | $ 31,800,000 | $ 31,799,998 | |
Series 1988 E, 3.95%, LOC Sallie Mae, VRDN (b)(c) | 19,000,000 | 19,000,000 | |
Series 1997 A, 4% (AMBAC Insured), VRDN (b)(c) | 2,900,000 | 2,900,000 | |
Series 1999 A, 3.95% (AMBAC Insured), VRDN (b)(c) | 10,900,000 | 10,900,000 | |
Series 2000 A, 4% (AMBAC Insured), VRDN (b)(c) | 4,000,000 | 4,000,000 | |
Series 2001 B, 3.96% (FSA Insured), VRDN (b)(c) | 800,000 | 800,000 | |
Series 2002 B, 4% (FSA Insured), VRDN (b)(c) | 2,800,000 | 2,800,000 | |
Series A: | |||
3.95% (AMBAC Insured), VRDN (b)(c) | 5,000,000 | 5,000,000 | |
4% (AMBAC Insured), VRDN (b)(c) | 2,500,000 | 2,500,000 | |
4% (FSA Insured), VRDN (b)(c) | 20,500,000 | 20,500,000 | |
Series A1, 4% (AMBAC Insured), VRDN (b)(c) | 5,600,000 | 5,600,000 | |
Pennsylvania Higher Ed. Facilities Auth. Participating VRDN Series PT 3509, 3.94% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 3,985,000 | 3,985,000 | |
Pennsylvania Higher Edl. Facilities Auth. (Washington & Jefferson Dev. Corp. Proj.) Series A, 3.94%, LOC Unicredito Italiano Spa, VRDN (b) | 3,500,000 | 3,500,000 | |
Pennsylvania Higher Edl. Facilities Auth. Hosp. Rev. Participating VRDN Series MT 42, 3.97% (Liquidity Facility Lloyds TSB Bank PLC) (b)(d) | 7,590,000 | 7,590,000 | |
Pennsylvania Higher Edl. Facilities Auth. Rev.: | |||
Participating VRDN: | |||
Series MS 00 1412, 3.95% (Liquidity Facility Morgan Stanley) (b)(d) | 4,600,000 | 4,600,000 | |
Series Putters 1378, 3.97% (Liquidity Facility JPMorgan Chase Bank) (b)(d) | 1,500,000 | 1,500,000 | |
(Mount Aloysius College Proj.) Series L3, 3.94%, LOC Allied Irish Banks PLC, VRDN (b) | 2,600,000 | 2,600,000 | |
Series I3, 3.95%, LOC Allied Irish Banks PLC, VRDN (b) | 5,000,000 | 5,000,000 | |
Pennsylvania Hsg. Fin. Agcy.: | |||
Participating VRDN: | |||
Series LB 06 K 57, 4.11% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (b)(c)(d) | 2,500,000 | 2,500,000 | |
Series LB 06 P35, 4.11% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (b)(c)(d) | 2,510,000 | 2,510,000 | |
Series MT 163, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 4,610,000 | 4,610,000 | |
Series PA 1235, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 1,075,000 | 1,075,000 | |
Municipal Securities - continued | |||
Principal Amount | Value (Note 1) | ||
Pennsylvania - continued | |||
Pennsylvania Hsg. Fin. Agcy.: - continued | |||
Participating VRDN: | |||
Series PA 930, 3.96% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | $ 4,995,000 | $ 4,995,000 | |
Series PT 2190, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 4,775,000 | 4,775,000 | |
Series PT 890, 3.97% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 835,000 | 835,000 | |
Series Putters 1213, 3.98% (Liquidity Facility JPMorgan Chase & Co.) (b)(c)(d) | 2,055,000 | 2,055,000 | |
(Single Family Mortgage Proj.) Series 2006 92B, 3.96% (Liquidity Facility Landesbank Hessen-Thuringen), VRDN (b)(c) | 4,300,000 | 4,300,000 | |
Series 2004 84D, 3.95% (Liquidity Facility Dexia Cr. Local de France), VRDN (b)(c) | 14,535,000 | 14,535,000 | |
Pennsylvania Hsg. Fin. Agcy. Single Family Mtg. Rev.: | |||
Participating VRDN: | |||
Series Merlots 06 B15, 4% (Liquidity Facility Wachovia Bank NA) (b)(c)(d) | 5,250,000 | 5,250,000 | |
Series Putters 152, 3.98% (Liquidity Facility JPMorgan Chase Bank) (b)(c)(d) | 4,645,000 | 4,645,000 | |
Series Putters 1593, 3.98% (Liquidity Facility JPMorgan Chase Bank) (b)(c)(d) | 3,400,000 | 3,400,000 | |
Series 2006 94B, 3.95% (Liquidity Facility Dexia Cr. Local de France), VRDN (b)(c) | 3,000,000 | 3,000,000 | |
Series 95C, 3.95% (Liquidity Facility Dexia Cr. Local de France), VRDN (b)(c) | 5,000,000 | 5,000,000 | |
Pennsylvania Pub. School Bldg. Auth. School Rev. Participating VRDN Series MS 958, 3.95% (Liquidity Facility Morgan Stanley) (b)(d) | 2,129,000 | 2,129,000 | |
Pennsylvania Tpk. Commission Tpk. Rev.: | |||
Bonds Series AAB 04-9, 3.95%, tender 1/5/07 (Liquidity Facility ABN-AMRO Bank NV) (b)(d) | 3,750,000 | 3,750,000 | |
Series 2002 A1, 3.95% (Liquidity Facility WestLB AG), VRDN (b) | 5,000,000 | 5,000,000 | |
Series 2002 A3, 3.95% (Liquidity Facility Bayerische Landesbank Girozentrale), VRDN (b) | 9,700,000 | 9,700,000 | |
Philadelphia Arpt. Rev.: | |||
Participating VRDN: | |||
Series PT 3077, 3.98% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 985,000 | 985,000 | |
Series SG 118, 3.98% (Liquidity Facility Societe Generale) (b)(c)(d) | 5,600,000 | 5,600,000 | |
Series 2005 C, 4% (MBIA Insured), VRDN (b)(c) | 10,100,000 | 10,100,000 | |
Municipal Securities - continued | |||
Principal Amount | Value (Note 1) | ||
Pennsylvania - continued | |||
Philadelphia Auth. for Indl. Dev. Arpt. Rev. Participating VRDN: | |||
Series PA 882, 3.98% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | $ 2,200,000 | $ 2,200,000 | |
Series Putters 217, 3.98% (Liquidity Facility JPMorgan Chase Bank) (b)(c)(d) | 7,715,000 | 7,715,000 | |
Philadelphia Gas Works Rev.: | |||
Bonds (1975 Gen. Ordinance Proj.) 17th Series, 5% 7/1/07 (FSA Insured) | 4,000,000 | 4,026,581 | |
Participating VRDN Series PT 1144, 3.94% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 3,515,000 | 3,515,000 | |
Fifth Series A2, 3.95%, LOC Bank of Nova Scotia, New York Agcy., LOC JPMorgan Chase Bank, VRDN (b) | 6,405,000 | 6,405,000 | |
Philadelphia Gen. Oblig. TRAN 4.5% 6/29/07 | 4,600,000 | 4,615,894 | |
Philadelphia Redev. Auth. Rev. Participating VRDN: | |||
Series DB 134, 3.96% (Liquidity Facility Deutsche Bank AG) (b)(c)(d) | 3,425,000 | 3,425,000 | |
Series ROC II R 392, 3.95% (Liquidity Facility Citibank NA) (b)(d) | 1,000,000 | 1,000,000 | |
Philadelphia Wtr. & Wastewtr. Rev. Participating VRDN: | |||
Series EGL 7050050 Class A, 3.96% (Liquidity Facility Citibank NA) (b)(d) | 2,300,000 | 2,300,000 | |
Series MS 773, 3.95% (Liquidity Facility Morgan Stanley) (b)(d) | 1,500,000 | 1,500,000 | |
Pittsburgh Gen. Oblig. Bonds Series A, 6% 3/1/07 (MBIA Insured) | 2,735,000 | 2,745,319 | |
Pittsburgh Urban Redev. Auth. Single Family Mortgage Rev. Participating VRDN Series PT 996, 3.97% (Liquidity Facility Landesbank Hessen-Thuringen) (b)(c)(d) | 5,685,000 | 5,685,000 | |
Schuylkill County Indl. Dev. Auth. Resource Recovery Rev. (Northeastern Pwr. Co. Proj.) Series 1997 B, 3.99%, LOC Dexia Cr. Local de France, VRDN (b)(c) | 7,315,000 | 7,315,000 | |
Scranton-Lackawanna Health & Welfare Auth. Rev. Participating VRDN Series Merlots 02 A18, 3.95% (Liquidity Facility Wachovia Bank NA) (b)(d) | 2,230,000 | 2,230,000 | |
Southcentral Pennsylvania Gen. Auth. Rev.: | |||
Participating VRDN Series ROC II R 604, 3.96% (Liquidity Facility Citibank NA) (b)(d) | 2,355,000 | 2,355,000 | |
(Hanover Lutheran Village Proj.) 3.96%, LOC Manufacturers & Traders Trust Co., VRDN (b) | 3,700,000 | 3,700,000 | |
State Pub. School Bldg. Auth. Participating VRDN Series Eagles 06 161, 3.96% (Liquidity Facility Citibank NA) (b)(d) | 5,300,000 | 5,300,000 | |
Municipal Securities - continued | |||
Principal | Value (Note 1) | ||
Pennsylvania - continued | |||
Temple Univ. of the Commonwealth Sys. of Higher Ed. RAN 5% 4/26/07 | $ 4,300,000 | $ 4,317,240 | |
West Cornwall Township Muni. Auth. (Lebanon Valley Brethren Home Proj.) 3.94%, LOC PNC Bank NA, Pittsburgh, VRDN (b) | 4,000,000 | 4,000,000 | |
517,664,032 | |||
Puerto Rico - 1.5% | |||
Puerto Rico Commonwealth Gen. Oblig. TRAN 4.5% 7/30/07, LOC Bank of Nova Scotia, New York Agcy., LOC BNP Paribas SA | 8,200,000 | 8,246,065 | |
TOTAL INVESTMENT PORTFOLIO - 97.5% (Cost $525,910,097) | 525,910,097 | ||
NET OTHER ASSETS - 2.5% | 13,326,498 | ||
NET ASSETS - 100% | $ 539,236,595 |
Security Type Abbreviations |
CP - COMMERCIAL PAPER |
RAN - REVENUE ANTICIPATION NOTE |
TRAN - TAX AND REVENUE |
VRDN - VARIABLE RATE DEMAND NOTE |
Legend |
(a) 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 end of the period, the value of these securities amounted to $5,050,000 or 0.9% of net assets. |
(b) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(d) Provides evidence of ownership in one or more underlying municipal bonds. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Municipal Cash Central Fund | $ 47,936 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
December 31, 2006 | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $525,910,097) | $ 525,910,097 | |
Cash | 7,645,494 | |
Receivable for fund shares sold | 7,875,223 | |
Interest receivable | 3,271,747 | |
Other receivables | 95,441 | |
Total assets | 544,798,002 | |
Liabilities | ||
Payable for fund shares redeemed | $ 5,326,525 | |
Distributions payable | 16,606 | |
Accrued management fee | 217,530 | |
Other affiliated payables | 746 | |
Total liabilities | 5,561,407 | |
Net Assets | $ 539,236,595 | |
Net Assets consist of: | ||
Paid in capital | $ 539,145,162 | |
Undistributed net investment income | 78,162 | |
Accumulated undistributed net realized gain (loss) on investments | 13,271 | |
Net Assets, for 539,118,873 shares outstanding | $ 539,236,595 | |
Net Asset Value, offering price and redemption price per share ($539,236,595 ÷ 539,118,873 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements - continued
Statement of Operations
Year ended December 31, 2006 | ||
Investment Income | ||
Interest | $ 15,583,866 | |
Income from Fidelity Central Funds | 47,936 | |
Total income | 15,631,802 | |
Expenses | ||
Management fee | $ 2,293,467 | |
Independent trustees' compensation | 1,704 | |
Total expenses before reductions | 2,295,171 | |
Expense reductions | (544,028) | 1,751,143 |
Net investment income | 13,880,659 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 13,270 | |
Net increase in net assets resulting from operations | $ 13,893,929 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 13,880,659 | $ 7,547,861 |
Net realized gain (loss) | 13,270 | 92,353 |
Net increase in net assets resulting | 13,893,929 | 7,640,214 |
Distributions to shareholders from net investment income | (13,880,912) | (7,509,743) |
Share transactions at net asset value of $1.00 per share | 1,357,859,696 | 968,684,411 |
Reinvestment of distributions | 13,678,174 | 7,419,506 |
Cost of shares redeemed | (1,258,701,495) | (881,682,805) |
Net increase (decrease) in net assets and shares resulting from share transactions | 112,836,375 | 94,421,112 |
Total increase (decrease) in net assets | 112,849,392 | 94,551,583 |
Net Assets | ||
Beginning of period | 426,387,203 | 331,835,620 |
End of period (including undistributed net investment income of $78,162 and undistributed net investment income of $78,415, respectively) | $ 539,236,595 | $ 426,387,203 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, beginning | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations | |||||
Net investment income | .030 | .020 | .008 | .006 | .011 |
Distributions from net investment income | (.030) | (.020) | (.008) | (.006) | (.011) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | 3.05% | 2.02% | .81% | .65% | 1.09% |
Ratios to Average Net Assets B,C | |||||
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .38% | .41% | .48% | .49% | .46% |
Net investment income | 3.02% | 2.02% | .80% | .66% | 1.09% |
Supplemental Data | |||||
Net assets, end of period | $ 539,237 | $ 426,387 | $ 331,836 | $ 294,312 | $ 278,322 |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2006
1. Significant Accounting Policies.
Fidelity Pennsylvania Municipal Income Fund (the Income Fund) is a fund of Fidelity Municipal Trust. Fidelity Pennsylvania Municipal Money Market Fund (the Money Market Fund) is a fund of Fidelity Municipal 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 Municipal Trust and Fidelity Municipal Trust II (the trusts) are organized as a Massachusetts business trust and a Delaware statutory trust, respectively. The Income Fund is a non-diversified fund. Each Fund is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of Pennsylvania. The Funds may invest in Fidelity Central Funds which are open-end investment companies available to investment companies and other accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Income Fund and the Money Market Fund, which are also consistently followed by the Fidelity Central Funds:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, each Fund uses independent pricing services approved by the Board of Trustees to value their investments. For the Income Fund, debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
As permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities owned by the Money Market Fund are valued at amortized cost which approximates value.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions, including the Fund's investment activity in the Fidelity Central Funds, are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and income distributions from the Fidelity Central Funds are accrued as earned, with any income distributions receivable as of period end included in Interest Receivable on the Statement of Assets and Liabilities. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, Certain Funds will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, market discount, deferred trustees compensation and excise tax regulations.
The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
Cost for Federal | Unrealized | Unrealized | Net Unrealized | |
Fidelity Pennsylvania Municipal Income Fund | $ 291,930,007 | $ 9,472,582 | $ (420,615) | $ 9,051,967 |
Fidelity Pennsylvania Municipal Money Market Fund | 525,910,097 | - | - | - |
Undistributed | Undistributed | Capital Loss | |
Fidelity Pennsylvania Municipal | $ 107,363 | $ 431,728 | $ - |
Fidelity Pennsylvania Municipal | 78,909 | 6,523 | - |
The tax character of distributions paid was as follows:
December 31, 2006 | ||||
Tax-exempt | Ordinary | Long-term | Total | |
Fidelity Pennsylvania Municipal Income Fund | $ 12,336,853 | $ - | $ 310,486 | $ 12,647,339 |
Fidelity Pennsylvania Municipal Money Market Fund | 13,880,912 | - | - | 13,880,912 |
December 31, 2005 | ||||
Tax-exempt | Ordinary | Long-term | Total | |
Fidelity Pennsylvania Municipal Income Fund | $ 12,342,980 | $ - | $ 2,072,399 | $ 14,415,379 |
Fidelity Pennsylvania Municipal Money Market Fund | 7,509,743 | - | - | 7,509,743 |
Short-Term Trading (Redemption) Fees. Shares held in the Income Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Funds' net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds' financial statement disclosures.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. Certain Funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's Schedule of Investments. Certain Funds may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. The Income Fund may use futures contracts to manage its exposure to the bond market and to fluctuations in interest rates. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash
Annual Report
2. Operating Policies - continued
Futures Contracts - continued
or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Income Funds' Schedule of Investments. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $60,337,246 and $58,375,775, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Income Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
FMR and its affiliates provide the Money Market Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .50% of the Fund's average net assets. FMR pays all other expenses, except the compensation of the independent Trustees and certain exceptions such as interest expense, including commitment fees. The management fee paid to FMR by the Fund is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC performs the activities associated with the Funds' transfer and shareholder servicing agent and accounting functions. Under the terms of the management fee contract, FMR pays transfer agent fees on behalf of the Money Market Fund. The Income
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
Fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the Income Fund's transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Pennsylvania Municipal Income Fund | .08% | | |
Investments in Fidelity Central Funds. The Funds may invest in Fidelity Central Funds. The Funds' Schedule of Investments lists each of the Fidelity Central Funds as an investment of each Fund but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM) an affiliate of FMR.
5. Committed Line of Credit.
The Income Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro rata portion of the line of credit, which is reflected in Miscellaneous Expense on the Statement of Operations, and is as follows:
Fidelity Pennsylvania Municipal Income Fund | $ 693 |
During the period, there were no borrowings on this line of credit.
Annual Report
6. Expense Reductions.
Through arrangements with the Income Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce fund expenses. These expense reductions are noted in the table below.
Custody | Transfer | Accounting | |
Fidelity Pennsylvania Municipal Income Fund | $ 4,988 | $ 199,075 | $ 50,895 |
In addition, through an arrangement with the Money Market Fund's custodian and transfer agent, $544,028 of credits realized as a result of uninvested cash balances were used to reduce the Fund's management fee.
7. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Fidelity Pennsylvania Municipal Income Fund and Fidelity Pennsylvania Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Pennsylvania Municipal Income Fund (a fund of Fidelity Municipal Trust) and Fidelity Pennsylvania Municipal Money Market Fund (a fund of Fidelity Municipal Trust II) at December 31, 2006 the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Municipal Trust's and Fidelity Municipal Trust II's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 12, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trusts and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Each of the Trustees oversees 348 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (76) | |
Year of Election or Appointment: 1984 or 1991 Trustee of Fidelity Municipal Trust (1984) and Fidelity Municipal Trust II (1991). Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). | |
Robert L. Reynolds (54) | |
Year of Election or Appointment: 2003 Mr. Reynolds is President and a Director of FMR (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and FMR Co., Inc. (2005-present). Mr. Reynolds also serves as Vice Chairman (2006-present), a Director (2003-present), and Chief Operating Officer of FMR Corp. and a Director of Strategic Advisers, Inc. (2005-present). He also serves on the Board at Fidelity Investments Canada, Ltd. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trusts or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (58) | |
Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). | |
Albert R. Gamper, Jr. (64) | |
Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. | |
George H. Heilmeier (70) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. | |
James H. Keyes (66) | |
Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). | |
Marie L. Knowles (60) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (62) | |
Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. | |
Cornelia M. Small (62) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (67) | |
Year of Election or Appointment: 2001 or 2002 Trustee of Fidelity Municipal Trust (2002-present) and Fidelity Municipal Trust II (2001-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), and Metalmark Capital (private equity investment firm, 2005-present). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (67) | |
Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (62) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust and Fidelity Municipal Trust II. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. | |
Kimberley H. Monasterio (43) | |
Year of Election or Appointment: 2007 President and Treasurer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
Boyce I. Greer (50) | |
Year of Election or Appointment: 2006 Vice President of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005- present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002). | |
Charles S. Morrison (46) | |
Year of Election or Appointment: 2005 Vice President of Pennsylvania Municipal Money Market. Mr. Morrison also serves as Vice President of Fidelity's Money Market Funds (2005-present) and certain Asset Allocation Funds (2002-present). Previously, he served as Vice President of Fidelity's Bond Funds (2002-2005) and certain Balanced Funds (2002-2005). He served as Vice President (2002-2005) and Bond Group Leader (2002-2005) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002-present) and FMR (2002-present). Mr. Morrison joined Fidelity Investments in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
David L. Murphy (58) | |
Year of Election or Appointment: 2002 or 2005 Vice President of Pennsylvania Municipal Money Market (2002) and Pennsylvania Municipal Income (2005). Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). | |
Thomas J. Silvia (45) | |
Year of Election or Appointment: 2005 Vice President of Pennsylvania Municipal Income. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present), certain Balanced Funds (2005-present), certain Asset Allocation Funds (2005-present), and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004). | |
Mark Sommer (46) | |
Year of Election or Appointment: 2002 Vice President of Pennsylvania Municipal Income. Mr. Sommer also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Sommer worked as an analyst and manager. | |
Michael Widrig (43) | |
Year of Election or Appointment: 2003 Vice President of Pennsylvania Municipal Money Market. Mr. Widrig also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Widrig worked as an analyst and manager. | |
Eric D. Roiter (58) | |
Year of Election or Appointment: 1998 Secretary of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). | |
Stuart Fross (47) | |
Year of Election or Appointment: 2003 Assistant Secretary of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003-present), Vice President and Secretary of FDC (2005-present), and is an employee of FMR. | |
R. Stephen Ganis (40) | |
Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). | |
Joseph B. Hollis (58) | |
Year of Election or Appointment: 2006 Chief Financial Officer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). | |
Kenneth A. Rathgeber (59) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005- present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
Bryan A. Mehrmann (45) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). | |
Kenneth B. Robins (37) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). | |
Robert G. Byrnes (40) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). | |
John H. Costello (60) | |
Year of Election or Appointment: 1986 Assistant Treasurer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (52) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (51) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Gary W. Ryan (48) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). | |
Salvatore Schiavone (41) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Pennsylvania Municipal Money Market and Pennsylvania Municipal Income. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Fund | Pay Date | Record Date | Dividends | Capital Gains |
Fidelity Pennsylvania Municipal Income Fund | 02/05/07 | 02/02/07 | $0.00 | $0.02 |
Fidelity Pennsylvania Municipal Money Market Fund | 02/05/07 | 02/02/07 | $0.00 | $0.00 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended December 31, 2006, or, if subsequently determined to be different, the net capital gain of such year.
Fund | |
Fidelity Pennsylvania Municipal Income Fund | $ 742,214 |
Fidelity Pennsylvania Municipal Money Market Fund | $ 13,217 |
During fiscal year ended 2006, 100% of Fidelity Pennsylvania Municipal Income Fund, and Fidelity Pennsylvania Municipal Money Market Fund income dividends were free from federal income tax, and 14.30% of Fidelity Pennsylvania Municipal Income Fund and 67.17% of Fidelity Pennsylvania Municipal Money Market income dividends were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2007 of amounts for use in preparing 2006 income tax returns.
Annual Report
Proxy Voting Results
A special meeting of Fidelity Pennsylvania Municipal Money Market Fund's shareholders was held on January 18, 2006. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To elect a Board of Trustees. A | ||
# of | % of | |
Dennis J. Dirks | ||
Affirmative | 667,201,902.33 | 95.261 |
Withheld | 33,193,298.35 | 4.739 |
TOTAL | 700,395,200.68 | 100.000 |
Albert R. Gamper, Jr. | ||
Affirmative | 667,477,031.41 | 95.300 |
Withheld | 32,918,169.27 | 4.700 |
TOTAL | 700,395,200.68 | 100.000 |
Robert M. Gates | ||
Affirmative | 666,308,716.35 | 95.133 |
Withheld | 34,086,484.33 | 4.867 |
TOTAL | 700,395,200.68 | 100.000 |
George H. Heilmeier | ||
Affirmative | 664,652,778.09 | 94.897 |
Withheld | 35,742,422.59 | 5.103 |
TOTAL | 700,395,200.68 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 664,170,496.79 | 94.828 |
Withheld | 36,224,703.89 | 5.172 |
TOTAL | 700,395,200.68 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 663,788,907.22 | 94.773 |
Withheld | 36,606,293.46 | 5.227 |
TOTAL | 700,395,200.68 | 100.000 |
Stephen P. Jonas | ||
Affirmative | 667,006,752.59 | 95.233 |
Withheld | 33,388,448.09 | 4.767 |
TOTAL | 700,395,200.68 | 100.000 |
# of | % of | |
Marie L. Knowles | ||
Affirmative | 666,373,338.05 | 95.142 |
Withheld | 34,021,862.63 | 4.858 |
TOTAL | 700,395,200.68 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 666,334,938.56 | 95.137 |
Withheld | 34,060,262.12 | 4.863 |
TOTAL | 700,395,200.68 | 100.000 |
William O. McCoy | ||
Affirmative | 665,764,692.27 | 95.056 |
Withheld | 34,630,508.41 | 4.944 |
TOTAL | 700,395,200.68 | 100.000 |
Robert L. Reynolds | ||
Affirmative | 667,335,421.55 | 95.280 |
Withheld | 33,059,779.13 | 4.720 |
TOTAL | 700,395,200.68 | 100.000 |
Cornelia M. Small | ||
Affirmative | 667,579,724.56 | 95.315 |
Withheld | 32,815,476.12 | 4.685 |
TOTAL | 700,395,200.68 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 665,215,267.33 | 94.977 |
Withheld | 35,179,933.35 | 5.023 |
TOTAL | 700,395,200.68 | 100.000 |
Kenneth L. Wolfe | ||
Affirmative | 666,060,714.08 | 95.098 |
Withheld | 34,334,486.60 | 4.902 |
TOTAL | 700,395,200.68 | 100.000 |
A Denotes trust-wide proposal and voting results. |
Annual Report
A special meeting of Fidelity Pennsylvania Municipal Income Fund's shareholders was held on January 18, 2006. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 | ||
To elect a Board of Trustees. A | ||
# of | % of | |
Dennis J. Dirks | ||
Affirmative | 4,012,578,790.76 | 95.238 |
Withheld | 200,653,306.55 | 4.762 |
TOTAL | 4,213,232,097.31 | 100.000 |
Albert R. Gamper, Jr. | ||
Affirmative | 4,015,643,707.84 | 95.310 |
Withheld | 197,588,389.47 | 4.690 |
TOTAL | 4,213,232,097.31 | 100.000 |
Robert M. Gates | ||
Affirmative | 4,004,345,809.00 | 95.042 |
Withheld | 208,886,288.31 | 4.958 |
TOTAL | 4,213,232,097.31 | 100.000 |
George H. Heilmeier | ||
Affirmative | 4,008,127,523.93 | 95.132 |
Withheld | 205,104,573.38 | 4.868 |
TOTAL | 4,213,232,097.31 | 100.000 |
Abigail P. Johnson | ||
Affirmative | 3,993,175,527.66 | 94.777 |
Withheld | 220,056,569.65 | 5.223 |
TOTAL | 4,213,232,097.31 | 100.000 |
Edward C. Johnson 3d | ||
Affirmative | 3,987,333,615.26 | 94.638 |
Withheld | 225,898,482.05 | 5.362 |
TOTAL | 4,213,232,097.31 | 100.000 |
Stephen P. Jonas | ||
Affirmative | 4,010,007,680.52 | 95.177 |
Withheld | 203,224,416.79 | 4.823 |
TOTAL | 4,213,232,097.31 | 100.000 |
# of | % of | |
Marie L. Knowles | ||
Affirmative | 4,010,231,303.96 | 95.182 |
Withheld | 203,000,793.35 | 4.818 |
TOTAL | 4,213,232,097.31 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 4,009,136,177.44 | 95.156 |
Withheld | 204,095,919.87 | 4.844 |
TOTAL | 4,213,232,097.31 | 100.000 |
William O. McCoy | ||
Affirmative | 4,001,996,735.35 | 94.986 |
Withheld | 211,235,361.96 | 5.014 |
TOTAL | 4,213,232,097.31 | 100.000 |
Robert L. Reynolds | ||
Affirmative | 4,010,560,206.65 | 95.190 |
Withheld | 202,671,890.66 | 4.810 |
TOTAL | 4,213,232,097.31 | 100.000 |
Cornelia M. Small | ||
Affirmative | 4,011,161,760.21 | 95.204 |
Withheld | 202,070,337.10 | 4.796 |
TOTAL | 4,213,232,097.31 | 100.000 |
William S. Stavropoulos | ||
Affirmative | 4,001,217,912.57 | 94.968 |
Withheld | 212,014,184.74 | 5.032 |
TOTAL | 4,213,232,097.31 | 100.000 |
Kenneth L. Wolfe | ||
Affirmative | 4,011,439,868.05 | 95.211 |
Withheld | 201,792,229.26 | 4.789 |
TOTAL | 4,213,232,097.31 | 100.000 |
A Denotes trust-wide proposal and voting results.
Annual Report
Proxy Voting Results - continued
PROPOSAL 2 | ||
To change Fidelity Pennsylvania Municipal Income Fund from a diversified to a non-diversified fund. | ||
# of | % of | |
Affirmative | 138,944,647.47 | 74.679 |
Against | 29,304,872.03 | 15.751 |
Abstain | 10,404,283.99 | 5.592 |
Broker | 7,402,189.22 | 3.978 |
TOTAL | 186,055,992.71 | 100.000 |
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* 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.
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
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Annual Report
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Annual Report
Annual Report
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Fidelity®
Short-Intermediate
Municipal Income Fund
Annual Report
December 31, 2006
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
We have seen consistently strong performance from stocks and bonds of late, and some relief in energy prices, but the housing market slowdown bears watching for how it might affect the consumer. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of Short-Intermediate Municipal Income's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2006 | Past 1 | Past 5 | Past 10 |
Short-Intermediate Municipal Income | 2.95% | 3.05% | 3.88% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Short-Intermediate Municipal Income on December 31, 1996. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Mark Sommer, Portfolio Manager of Fidelity® Short-Intermediate Municipal Income Fund
Growing investor demand and a strong second-half rally helped municipal bonds post solid returns and take their place as one of the best performing investment-grade debt classes for the year ending December 31, 2006. Throughout roughly the first six months of the period, muni bond prices declined as the Federal Reserve Board raised short-term interest rates to return them to a more "neutral level" and fend off inflation. Beginning in mid-summer 2006, however, munis rebounded amid hopes that the Fed would pause its rate hike campaign. Those hopes were eventually actualized when the central bank left rates unchanged at its August, September, October and December Open Market Committee meetings. Demand - which was amplified by non-traditional investors such as hedge funds - increased substantially, as investors sought out munis for their attractive after-tax yields. Investors also were drawn to the fact that unlike long-term Treasury bonds, which generally yielded less than short-term Treasuries throughout much of the period, long-term rates for munis were higher than short rates, giving investors the opportunity to lock in attractive long-term yields. Against this backdrop, the Lehman Brothers® Municipal Bond Index - a performance measure of approximately 34,000 investment-grade, fixed-rate, tax-exempt bonds - returned 4.84%. In comparison, the overall taxable bond market, as measured by the Lehman Brothers Aggregate Bond Index, returned 4.33%.
During the past year, Short-Intermediate Municipal Income gained 2.95% and the Lehman Brothers 1-6 Year Municipal Bond Index gained 3.19%. The fund's performance relative to the index was helped by my decision to overweight longer-term bonds, which outpaced shorter-term bonds due to strong investor demand for yield-enhanced securities. While I invested in bonds of various maturities, I kept the fund's duration - meaning its interest rate sensitivity - in line with the index, a strategy that neutralized the impact of overall interest rate movements on the fund's relative performance. Performance also was aided by an overweighting relative to the index in lower-quality investment-grade bonds. They, too, were the beneficiaries of investors' appetite for higher yields. Detracting from the fund's return was its underweighting relative to the index in California bonds, which were among the muni market's better performers thanks to strong investor demand.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2006 to December 31, 2006).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Shareholder Expense Example - continued
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,025.60 | $ 3.27** |
HypotheticalA | $ 1,000.00 | $ 1,021.98 | $ 3.26** |
Class T | |||
Actual | $ 1,000.00 | $ 1,024.10 | $ 3.78 |
HypotheticalA | $ 1,000.00 | $ 1,021.48 | $ 3.77 |
Class B | |||
Actual | $ 1,000.00 | $ 1,020.70 | $ 7.13 |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class C | |||
Actual | $ 1,000.00 | $ 1,020.20 | $ 7.64 |
HypotheticalA | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Short-Intermediate Municipal Income | |||
Actual | $ 1,000.00 | $ 1,025.40 | $ 2.50 |
HypotheticalA | $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,026.40 | $ 2.55 |
HypotheticalA | $ 1,000.00 | $ 1,022.68 | $ 2.55 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annualized | |
Class A | .64%** |
Class T | .74% |
Class B | 1.40% |
Class C | 1.50% |
Short-Intermediate Municipal Income | .49% |
Institutional Class | .50% |
** If fees and changes to voluntary expense limitations, effective April 1, 2007 had been in effect during the period, the annualized expense ratio would have been .74% and the expenses paid in the actual and hypothetical examples above would have been $3.77 and $3.76, respectively.
Annual Report
Investment Changes
Top Five States as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
New York | 17.0 | 13.0 |
Texas | 11.3 | 14.0 |
Illinois | 9.9 | 11.0 |
California | 7.0 | 5.4 |
New Jersey | 6.2 | 6.1 |
Top Five Sectors as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
General Obligations | 41.0 | 43.8 |
Escrowed/Pre-Refunded | 13.4 | 12.2 |
Special Tax | 9.7 | 5.1 |
Electric Utilities | 8.6 | 9.4 |
Transportation | 7.2 | 6.9 |
Average Years to Maturity as of December 31, 2006 | ||
6 months ago | ||
Years | 4.1 | 3.6 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2006 | ||
6 months ago | ||
Years | 2.9 | 2.9 |
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 this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | AAA 54.6% | ![]() | AAA 58.3% | ||||
![]() | AA,A 35.9% | ![]() | AA,A 30.0% | ||||
![]() | BBB 6.8% | ![]() | BBB 6.0% | ||||
![]() | BB and Below 0.3% | ![]() | BB and Below 0.0% | ||||
![]() | Not Rated 1.7% | ![]() | Not Rated 1.5% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's ® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ® ratings. |
Annual Report
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Bonds - 99.3% | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Alabama - 3.2% | ||||
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09 | $ 1,100 | $ 1,124 | ||
Daphne Spl. Care Facilities Fing. Auth. Rev. Series A, 0% 8/15/28 (Pre-Refunded to 8/15/08 @ 100) (e) | 10,000 | 9,408 | ||
Health Care Auth. for Baptist Health Series 2006 D: | ||||
5% 11/15/08 | 1,475 | 1,499 | ||
5% 11/15/11 | 1,000 | 1,043 | ||
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev.: | ||||
5.25% 10/1/08 (MBIA Insured) (d) | 2,900 | 2,974 | ||
5.75% 10/1/09 (MBIA Insured) (d) | 4,000 | 4,181 | ||
Jefferson County Ltd. Oblig. School Warrants Series A, 5% 1/1/07 | 2,210 | 2,210 | ||
Jefferson County Swr. Rev.: | ||||
Series 1999 A, 5.75% 2/1/38 (Pre-Refunded to 2/1/09 @ 101) (e) | 5,010 | 5,264 | ||
Series A: | ||||
5% 2/1/33 (Pre-Refunded to 2/1/09 @ 101) (e) | 13,520 | 13,990 | ||
5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (e) | 3,900 | 4,200 | ||
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (e) | 2,060 | 2,189 | ||
48,082 | ||||
Alaska - 0.7% | ||||
Alaska Student Ln. Corp. Student Ln. Rev. Series A, 5.85% 7/1/13 (AMBAC Insured) (d) | 3,285 | 3,496 | ||
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 | 2,500 | 2,692 | ||
North Slope Borough Gen. Oblig. Series B, 0% 6/30/08 (MBIA Insured) | 4,240 | 4,014 | ||
10,202 | ||||
Arizona - 1.8% | ||||
Arizona Ctfs. of Prtn. Series B, 5.5% 9/1/10 (FSA Insured) | 9,025 | 9,563 | ||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured) | 1,115 | 1,153 | ||
Maricopa County Unified School District #48 Scottsdale 7.4% 7/1/10 | 3,750 | 4,201 | ||
Nogales Rev. Oblig. (Wastewtr. Systems Proj.) Series 06A, 3.75%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | 3,000 | 3,001 | ||
Pima County Unified School District #1 Tucson 7.5% 7/1/08 (FGIC Insured) | 7,060 | 7,455 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Arizona - continued | ||||
Pinal County Indl. Dev. Auth. Correctional Facilities Contract Rev. (Florence West Prison Expansion, LLC Proj.) Series A, 4.5% 10/1/08 (American Cap. Access Corp. Insured) | $ 660 | $ 664 | ||
Tucson Wtr. Rev. Series A, 5% 7/1/11 (FGIC Insured) | 1,500 | 1,577 | ||
27,614 | ||||
California - 7.0% | ||||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A, 5.25% 5/1/12 (MBIA Insured) | 6,000 | 6,473 | ||
California Econ. Recovery: | ||||
Series 2004 A, 5.25% 7/1/13 | 2,400 | 2,613 | ||
Series A: | ||||
5.25% 1/1/11 | 6,500 | 6,886 | ||
5.25% 7/1/13 (MBIA Insured) | 2,900 | 3,166 | ||
California Gen. Oblig.: | ||||
5% 2/1/09 | 1,640 | 1,685 | ||
5% 2/1/10 | 2,000 | 2,077 | ||
5% 2/1/11 | 2,525 | 2,651 | ||
5.125% 9/1/12 | 1,000 | 1,047 | ||
5.25% 9/1/10 | 18,550 | 19,544 | ||
5.25% 2/1/11 | 6,775 | 7,177 | ||
5.5% 3/1/11 (FGIC Insured) | 3,210 | 3,445 | ||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,525 | 3,776 | ||
5.75% 10/1/08 | 1,085 | 1,125 | ||
6.4% 9/1/08 | 3,075 | 3,214 | ||
6.5% 9/1/10 | 1,760 | 1,926 | ||
California Health Facilities Fing. Auth. Rev. (Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/10 | 1,000 | 1,043 | ||
California Pub. Works Board Lease Rev. (Coalinga State Hosp. Proj.) Series 2004 A, 5% 6/1/08 | 6,000 | 6,108 | ||
California Statewide Cmntys. Dev. Auth. Rev.: | ||||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c) | 1,400 | 1,397 | ||
(Kaiser Permanente Health Sys. Proj.): | ||||
Series 2001 A, 2.55%, tender 1/4/07 (c) | 1,400 | 1,400 | ||
Series 2004 G, 2.3%, tender 5/1/07 (c) | 8,000 | 7,953 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured) | 3,600 | 2,977 | ||
Univ. of California Revs.: | ||||
(UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (f) | 8,607 | 8,721 | ||
Series K: | ||||
5% 5/15/09 (b) | 1,000 | 1,026 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
California - continued | ||||
Univ. of California Revs.: - continued | ||||
Series K: | ||||
5% 5/15/10 (b) | $ 4,955 | $ 5,141 | ||
Western Placer Unified School District 3.625%, tender 12/1/09 (FSA Insured) (c) | 3,170 | 3,162 | ||
105,733 | ||||
Colorado - 0.6% | ||||
Colorado Health Facilities Auth. Rev. (Adventist Health Sys. - Sunbelt Proj.): | ||||
Series E, 5% 11/15/11 | 2,230 | 2,333 | ||
Series F, 5% 11/15/12 | 1,225 | 1,289 | ||
Denver City & County Arpt. Rev. Series E, 5% 11/15/08 (XL Cap. Assurance, Inc. Insured) (d) | 5,000 | 5,113 | ||
8,735 | ||||
Connecticut - 0.7% | ||||
Connecticut Gen. Oblig.: | ||||
Series 2001 D, 5.125% 11/15/18 (Pre-Refunded to 11/15/11 @ 100) (e) | 5,000 | 5,319 | ||
Series 2002 C, 5% 12/15/08 | 1,930 | 1,981 | ||
Connecticut Health & Edl. Facilities Auth. Rev. (Connecticut Children's Med. Ctr. Proj.) Series B: | ||||
4% 7/1/07 (MBIA Insured) | 1,275 | 1,277 | ||
4.5% 7/1/08 (MBIA Insured) | 1,045 | 1,057 | ||
5% 7/1/09 (MBIA Insured) | 1,000 | 1,029 | ||
10,663 | ||||
District Of Columbia - 0.8% | ||||
District of Columbia Ctfs. of Prtn. 5.25% 1/1/08 (AMBAC Insured) | 935 | 949 | ||
District of Columbia Gen. Oblig.: | ||||
Series A, 5.25% 6/1/09 (FSA Insured) | 1,000 | 1,036 | ||
Series B, 0% 6/1/12 (MBIA Insured) | 3,600 | 2,897 | ||
Metropolitan Washington Arpt. Auth. Gen. Arpt. Rev. Series B, 5.5% 10/1/08 (FGIC Insured) (d) | 6,460 | 6,604 | ||
11,486 | ||||
Florida - 5.5% | ||||
Brevard County School Board Ctfs. of Prtn. Series A, 5.5% 7/1/09 (AMBAC Insured) | 2,775 | 2,889 | ||
Florida Gen. Oblig. (Dept. of Trans. Right of Way Proj.) Series B, 6.375% 7/1/08 | 3,000 | 3,120 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Florida - continued | ||||
Highlands County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.) Series 06G: | ||||
5% 11/15/09 | $ 435 | $ 448 | ||
5% 11/15/10 | 400 | 415 | ||
5% 11/15/11 | 700 | 732 | ||
(Adventist Health Sys./Sunbelt Obligated Group Proj.): | ||||
Series A, 5% 11/15/10 | 1,000 | 1,039 | ||
Series B, 5% 11/15/08 | 800 | 817 | ||
3.95%, tender 9/1/12 (c) | 7,550 | 7,523 | ||
5%, tender 11/16/09 (c) | 4,700 | 4,835 | ||
Series 06G, 5% 11/15/08 | 420 | 428 | ||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.): | ||||
4%, tender 8/1/07 (c) | 11,000 | 10,987 | ||
4.25%, tender 8/1/07 (c)(d) | 6,000 | 6,001 | ||
Lakeland Hosp. Sys. Rev. (Reg'l. Health Systems Proj.) 5% 11/15/11 | 2,545 | 2,668 | ||
Lee County Solid Waste Sys. Rev. 5.25% 10/1/09 (MBIA Insured) (d) | 1,000 | 1,033 | ||
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured) | 1,980 | 2,159 | ||
Miami-Dade County School Board Ctfs. of Prtn. 5%, tender 5/1/11 (MBIA Insured) (c) | 1,500 | 1,569 | ||
Orange County School Board Ctfs. of Prtn. Series A, 5.375% 8/1/22 (Pre-Refunded to 8/1/07 @ 101) (e) | 3,840 | 3,919 | ||
Orlando Utils. Commission Util. Sys. Rev. 5.25% 7/1/09 | 6,000 | 6,227 | ||
Palm Beach County School Board Ctfs. of Prtn. Series A, 6% 8/1/22 (Pre-Refunded to 8/1/10 @ 101) (e) | 7,020 | 7,625 | ||
Polk County Cap. Impt. Rev.: | ||||
Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c) | 9,000 | 9,557 | ||
5.5% 12/1/11 (FGIC Insured) | 3,470 | 3,753 | ||
Seminole County School Board Ctfs. of Prtn. Series A, 4.5% 7/1/08 (MBIA Insured) | 1,250 | 1,266 | ||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001: | ||||
2.8%, tender 10/1/08, LOC SunTrust Banks of Florida, Inc. (c) | 2,000 | 1,969 | ||
3%, tender 10/1/09, LOC SunTrust Banks, Inc. (c) | 1,000 | 977 | ||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 5% 8/1/08 (FSA Insured) | 1,625 | 1,656 | ||
83,612 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Georgia - 0.3% | ||||
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1992 B, 8.25% 1/1/11 (MBIA Insured) | $ 4,105 | $ 4,782 | ||
Hawaii - 2.5% | ||||
Hawaii Arpt. Sys. Rev. Series 2000 B, 8% 7/1/10 | 3,850 | 4,357 | ||
Hawaii Gen. Oblig. Series CU: | ||||
5.75% 10/1/11 (MBIA Insured) | 3,040 | 3,263 | ||
5.75% 10/1/11 (Pre-Refunded to 10/1/10 @ 100) (e) | 170 | 182 | ||
Honolulu City & County Gen. Oblig. Series B, 8% 10/1/09 | 26,940 | 29,902 | ||
37,704 | ||||
Illinois - 9.9% | ||||
Chicago Board of Ed. (Chicago School Reform Proj.) 6.75% 12/1/10 (AMBAC Insured) | 4,160 | 4,616 | ||
Chicago Gen. Oblig. Series A, 5.25% 1/1/12 (FSA Insured) | 1,000 | 1,068 | ||
Chicago Midway Arpt. Rev. Series B: | ||||
5% 1/1/10 (AMBAC Insured) | 1,225 | 1,270 | ||
5% 1/1/11 (AMBAC Insured) | 3,625 | 3,797 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series A: | ||||
5% 1/1/12 (MBIA Insured) | 1,145 | 1,211 | ||
5.5% 1/1/08 (AMBAC Insured) | 5,000 | 5,054 | ||
5.5% 1/1/10 (AMBAC Insured) (d) | 5,000 | 5,227 | ||
Chicago Park District: | ||||
Series B, 5% 1/1/11 (AMBAC Insured) | 5,750 | 6,027 | ||
Series C, 5% 1/1/11 (AMBAC Insured) | 2,515 | 2,636 | ||
Chicago School Fin. Auth. Series B, 5% 6/1/09 | 12,915 | 13,301 | ||
Chicago Tax Increment Rev. Series 2000 A, 0% 12/1/08 (AMBAC Insured) | 10,000 | 9,316 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev. (Fed. Transit Administration Section 5307 Formula Funds Proj.) Series A, 5.25% 6/1/10 (AMBAC Insured) | 4,835 | 5,074 | ||
Chicago Wastewtr. Transmission Rev. 5.5% 1/1/09 (FGIC Insured) | 2,975 | 3,079 | ||
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 3.85%, tender 5/1/08 (c)(d) | 2,200 | 2,180 | ||
Hodgkins Tax Increment Rev.: | ||||
5% 1/1/07 | 1,000 | 1,000 | ||
5% 1/1/09 | 1,805 | 1,840 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Illinois Dev. Fin. Auth. Gas Supply Rev. (The Peoples Gas Lt. & Coke Co. Proj.) Series 2003 B, 3.05%, tender 2/1/08 (AMBAC Insured) (c) | $ 6,100 | $ 6,043 | ||
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) Series 2004 C, 5.5% 10/1/10 | 1,900 | 2,008 | ||
Illinois Edl. Facilities Auth. Revs.: | ||||
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c) | 12,800 | 12,698 | ||
(Field Museum of Natural History Proj.) 4.05%, tender 11/1/11 (c) | 3,250 | 3,264 | ||
(Univ. of Chicago Proj.): | ||||
Series 2004 B1, 3.45%, tender 7/1/08 (c) | 6,100 | 6,077 | ||
Series A, 5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (e) | 2,640 | 2,827 | ||
Series B: | 3,895 | 3,884 | ||
3.1%, tender 7/1/07 (c)(e) | 5 | 5 | ||
Illinois Fin. Auth. Rev.: | ||||
(DePaul Univ. Proj.): | ||||
5% 10/1/07 | 1,225 | 1,234 | ||
5% 10/1/08 | 1,000 | 1,019 | ||
Series A, 5% 10/1/11 | 1,165 | 1,217 | ||
Illinois Gen. Oblig.: | ||||
First Series 2001, 5.25% 5/1/11 (FSA Insured) | 1,475 | 1,567 | ||
First Series: | ||||
5.375% 7/1/11 (MBIA Insured) | 6,745 | 7,217 | ||
5.5% 8/1/10 | 1,415 | 1,499 | ||
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (e) | 7,075 | 7,538 | ||
Series A, 5% 10/1/09 | 2,600 | 2,687 | ||
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (e) | 1,000 | 1,063 | ||
Illinois Health Facilities Auth. Rev. (Condell Med. Ctr. Proj.): | ||||
5% 5/15/07 | 500 | 501 | ||
5% 5/15/08 | 700 | 708 | ||
Kane & DeKalb Counties Cmnty. Unit School District #301 0% 12/1/10 (AMBAC Insured) | 2,000 | 1,716 | ||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 | 2,270 | 2,455 | ||
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) (e) | 1,600 | 1,747 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Kane, McHenry, Cook & DeKalb Counties Cmnty. Unit School District #300, Carpentersville 5.5% 12/1/13 (Pre-Refunded to 12/1/11 @ 100) (e) | $ 5,000 | $ 5,405 | ||
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11 | 2,365 | 2,477 | ||
Rosemont Gen. Oblig.: | ||||
Series 3, 0% 12/1/07 (FGIC Insured) | 625 | 605 | ||
Series A, 0% 12/1/11 (FGIC Insured) | 3,695 | 3,072 | ||
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Proj.) 5% 8/15/11 (AMBAC Insured) | 1,360 | 1,432 | ||
Will County School District #122 Series B, 0% 11/1/08 (FSA Insured) | 1,280 | 1,197 | ||
149,858 | ||||
Indiana - 3.7% | ||||
Carmel High School Bldg. Corp. 5% 1/10/11 (FSA Insured) | 1,000 | 1,049 | ||
Ctr. Grove 2000 Bldg. Corp.: | ||||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,785 | 1,923 | ||
5.5% 7/15/18 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,885 | 2,031 | ||
Hamilton Southeastern Consolidated School Bldg. Corp.: | ||||
Series A: | ||||
5% 1/10/10 (FSA Insured) | 1,750 | 1,816 | ||
5.25% 7/10/11 (FSA Insured) | 2,295 | 2,444 | ||
5.25% 1/10/12 (FSA Insured) | 1,355 | 1,451 | ||
5% 1/15/10 (FSA Insured) | 1,835 | 1,905 | ||
5% 1/15/11 (FSA Insured) | 1,910 | 2,004 | ||
5% 1/15/12 (FSA Insured) | 1,990 | 2,109 | ||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,855 | 1,999 | ||
Indiana Univ. Student Fee Revs. Series H, 0% 8/1/09 (AMBAC Insured) | 3,875 | 3,522 | ||
Indianapolis Resource Recovery Rev. (Ogden Martin Sys., Inc. Proj.) 6.75% 12/1/07 (AMBAC Insured) | 3,000 | 3,068 | ||
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured) | 1,405 | 1,449 | ||
Logansport High School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,000 | 1,054 | ||
5.25% 7/15/11 (MBIA Insured) | 1,020 | 1,082 | ||
5.25% 1/15/12 (MBIA Insured) | 1,045 | 1,114 | ||
5.25% 7/15/12 (MBIA Insured) | 1,075 | 1,153 | ||
Mount Vernon of Hancock County Multi-School Corp. Series B: | ||||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,605 | 1,729 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Indiana - continued | ||||
Mount Vernon of Hancock County Multi-School Corp. Series B: - continued | ||||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (e) | $ 1,695 | $ 1,826 | ||
Muncie School Bldg. Corp. 5.25% 7/10/12 (MBIA Insured) | 1,585 | 1,707 | ||
New Albany Floyd County Independent School Bldg. Corp. 5% 1/15/11 (FSA Insured) | 1,000 | 1,049 | ||
Rockport Poll. Cont. Rev.: | ||||
(AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (c) | 1,600 | 1,628 | ||
4.9%, tender 6/1/07 (c) | 4,005 | 4,019 | ||
Saint Joseph County Ind. Edl. Facilities Rev. (Univ. of Notre Dame Du Lac Proj.) 2.5%, tender 12/3/07 (c) | 10,000 | 9,882 | ||
West Clark 2000 School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,065 | 1,125 | ||
5.25% 7/15/11 (MBIA Insured) | 1,125 | 1,196 | ||
5.25% 1/15/12 (MBIA Insured) | 1,150 | 1,229 | ||
56,563 | ||||
Kansas - 0.2% | ||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series A, 4.75%, tender 10/1/07 (c) | 2,400 | 2,416 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L: | ||||
5.25% 11/15/10 | 545 | 570 | ||
5.25% 11/15/12 | 680 | 722 | ||
3,708 | ||||
Kentucky - 0.2% | ||||
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (d) | 1,185 | 1,213 | ||
Owensboro Elec. Lt. & Pwr. Rev. Series B, 0% 1/1/09 (AMBAC Insured) | 2,000 | 1,854 | ||
3,067 | ||||
Louisiana - 0.5% | ||||
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. Series B, 5% 2/1/12 (AMBAC Insured) | 1,000 | 1,059 | ||
Ernest N. Morial-New Orleans Exhibit Hall Auth. Spl. Tax Series A, 5.25% 7/15/11 (AMBAC Insured) | 2,060 | 2,192 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Louisiana - continued | ||||
Louisiana Military Dept. 5% 8/1/10 | $ 1,530 | $ 1,577 | ||
Louisiana Offshore Term. Auth. Deepwater Port Rev. (LOOP LLC Proj.) Series 2003 D, 4%, tender 9/1/08 (c) | 2,700 | 2,708 | ||
7,536 | ||||
Maryland - 0.1% | ||||
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured) | 1,535 | 1,610 | ||
Massachusetts - 3.3% | ||||
Massachusetts Bay Trans. Auth. Series A, 7% 3/1/09 | 6,880 | 7,355 | ||
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. Series A, 5% 1/1/11 | 1,000 | 1,044 | ||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C, 5.875% 8/1/08 | 1,630 | 1,671 | ||
Massachusetts Fed. Hwy.: | ||||
Series 2000 A, 5.75% 6/15/13 | 3,000 | 3,227 | ||
Series B, 5.125% 12/15/14 (Pre-Refunded to 12/15/08 @ 101) (e) | 2,775 | 2,874 | ||
Massachusetts Gen. Oblig.: | ||||
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (e) | 2,570 | 2,717 | ||
Series 2000 A, 6% 2/1/10 | 2,500 | 2,667 | ||
Series 2001 A, 5.5% 1/1/11 | 5,000 | 5,331 | ||
Series 2003 C, 5.5% 10/1/10 (MBIA Insured) | 1,130 | 1,203 | ||
Series C: | ||||
5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (e) | 2,495 | 2,690 | ||
5.5% 11/1/10 (FSA Insured) | 10,000 | 10,662 | ||
Massachusetts Health & Edl. Facilities Auth. Rev. (Berkshire Health Sys., Inc. Proj.) Series F, 5% 10/1/08 | 2,720 | 2,780 | ||
Massachusetts Port Auth. Spl. Facilities Rev. | 1,000 | 1,057 | ||
Massachusetts Wtr. Resources Auth. Series A, 5.75% 8/1/39 (Pre-Refunded to 8/1/10 @ 101) (e) | 5,000 | 5,389 | ||
50,667 | ||||
Michigan - 2.0% | ||||
Chippewa Valley Schools 5% 5/1/08 | 1,260 | 1,283 | ||
Detroit City School District Series A, 5.5% 5/1/11 (FSA Insured) | 1,200 | 1,287 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Michigan - continued | ||||
Detroit Gen. Oblig. 5% 4/1/09 (MBIA Insured) | $ 10,620 | $ 10,916 | ||
Detroit Swr. Disp. Rev.: | ||||
Series A, 5.75% 7/1/26 (Pre-Refunded to 1/1/10 @ 101) (e) | 2,000 | 2,133 | ||
4.191% 7/1/32 (FSA Insured) (c) | 4,200 | 4,206 | ||
Hazel Park School District 5% 5/1/08 | 1,275 | 1,298 | ||
Livonia Pub. School District Series II, 0% 5/1/21 (FGIC Insured) (Pre-Refunded to 5/1/07 @ 39.31) (e) | 8,000 | 3,110 | ||
Michigan Bldg. Auth. Rev. (Facilities Prog.) Series I, 5.5% 10/15/09 | 2,705 | 2,834 | ||
Troy School District 5% 5/1/11 (MBIA Insured) | 1,000 | 1,053 | ||
Wayne County Cmnty. College (College Facilities Impt. Proj.) 5.25% 7/1/09 (FGIC Insured) | 1,220 | 1,266 | ||
Wayne-Westland Cmnty. Schools 5% 5/1/10 | 1,225 | 1,276 | ||
30,662 | ||||
Minnesota - 0.3% | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): | ||||
5.25% 12/1/08 | 1,200 | 1,229 | ||
5.25% 12/1/10 | 500 | 523 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.): | ||||
5% 5/15/09 | 250 | 256 | ||
5% 5/15/10 | 200 | 206 | ||
5% 5/15/11 | 300 | 311 | ||
Saint Paul Port Auth. Lease Rev. (HealthEast Midway Campus Proj.) Series 2003 A, 5% 5/1/10 | 555 | 555 | ||
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured) | 940 | 989 | ||
4,069 | ||||
Mississippi - 0.2% | ||||
Mississippi Bus. Fin. Corp. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.4%, tender 3/1/11 (c)(d) | 1,100 | 1,103 | ||
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (d) | 1,190 | 1,213 | ||
Mississippi Hosp. Equip. & Facilities Auth. (South Central Reg'l. Med. Ctr. Proj.) 5% 12/1/10 | 1,240 | 1,281 | ||
3,597 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Missouri - 0.7% | ||||
Bi-State Dev. Agcy. Rev. 3.95%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | $ 6,600 | $ 6,641 | ||
Fenton Tax Increment Rev. (Gravois Bluffs Redev. Proj.) 5% 4/1/11 | 1,430 | 1,478 | ||
Kansas City School District Bldg. Corp. Rev. (School District Elementary School Proj.) Series B, 5% 2/1/11 (FGIC Insured) | 1,850 | 1,942 | ||
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) (e) | 1,050 | 1,152 | ||
11,213 | ||||
Montana - 0.3% | ||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (c) | 4,000 | 4,086 | ||
Nevada - 3.1% | ||||
Clark County Arpt. Rev.: | ||||
Series B1, 5% 7/1/08 (d) | 9,000 | 9,167 | ||
Series C: | ||||
5% 7/1/08 (AMBAC Insured) (d) | 2,215 | 2,256 | ||
5% 7/1/09 (AMBAC Insured) (d) | 2,700 | 2,769 | ||
5% 7/1/10 (AMBAC Insured) (d) | 1,225 | 1,267 | ||
5% 7/1/11 (AMBAC Insured) (d) | 1,790 | 1,870 | ||
Clark County Hwy. Impt. Rev. (Motor Vehicle Fuel Tax) 5% 7/1/11 (AMBAC Insured) | 3,230 | 3,400 | ||
Clark County School District: | ||||
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (e) | 1,600 | 1,709 | ||
Series C, 5% 6/15/10 (MBIA Insured) | 1,075 | 1,120 | ||
Series D, 5% 6/15/09 (MBIA Insured) | 13,890 | 14,312 | ||
Series F, 5.375% 6/15/11 (FSA Insured) | 4,090 | 4,365 | ||
Henderson Health Care Facility Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08 | 1,100 | 1,118 | ||
Lyon Co. School District Gen. Oblig. 5% 6/1/09 | 695 | 716 | ||
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured) | 2,410 | 2,509 | ||
46,578 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New Hampshire - 0.3% | ||||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev.: | ||||
(United Illumination Co.) Series A, 3.65%, tender 2/1/10 (AMBAC Insured) (c)(d) | $ 2,500 | $ 2,461 | ||
3.5%, tender 2/1/09 (c)(d) | 2,000 | 1,977 | ||
4,438 | ||||
New Jersey - 6.2% | ||||
Camden County Impt. Auth. Rev. (Cooper Health Sys. Obligated Group Proj.) Series B, 5.25% 2/15/09 | 1,250 | 1,276 | ||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev. 5% 1/1/09 (AMBAC Insured) | 1,000 | 1,024 | ||
Elizabeth Gen. Oblig. 5.25% 8/15/09 (MBIA Insured) | 1,225 | 1,274 | ||
Garden State Preservation Trust Open Space & Farmland Preservation Series B: | ||||
6.25% 11/1/09 (MBIA Insured) | 4,000 | 4,267 | ||
6.375% 11/1/11 (MBIA Insured) | 7,470 | 8,335 | ||
New Jersey Econ. Dev. Auth. Rev. 5% 6/15/07 | 7,500 | 7,538 | ||
New Jersey Tpk. Auth. Tpk. Rev. Series A: | ||||
5.75% 1/1/18 (Pre-Refunded to 1/1/10 @ 100) (e) | 3,215 | 3,408 | ||
6% 1/1/11 (MBIA Insured) | 17,180 | 18,667 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series B: | ||||
5.25% 12/15/10 (FGIC Insured) | 4,550 | 4,808 | ||
6.5% 6/15/11 (MBIA Insured) | 5,000 | 5,565 | ||
Series C, 5.5% 12/15/10 (FSA Insured) | 25,000 | 26,648 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (e) | 7,000 | 7,407 | ||
Tobacco Settlement Fing. Corp. 4.375% 6/1/19 | 4,065 | 4,066 | ||
94,283 | ||||
New Jersey/Pennsylvania - 0.3% | ||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5% 7/1/09 | 5,170 | 5,319 | ||
New Mexico - 0.1% | ||||
Farmington Poll. Cont. Rev. Series B, 3.55%, tender 4/1/10 (FGIC Insured) (c) | 1,900 | 1,885 | ||
New York - 17.0% | ||||
Erie County Tobacco Asset Securitization Corp. Series A, 6.25% 7/15/40 (Pre-Refunded to 7/15/10 @ 101) (e) | 8,810 | 9,634 | ||
Grand Central District Mgmt. Assoc., Inc.: | ||||
5% 1/1/10 | 1,200 | 1,243 | ||
5% 1/1/12 | 1,175 | 1,239 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
Metropolitan Trans. Auth. Commuter Facilities Rev. Series A, 5.375% 7/1/09 (Escrowed to Maturity) (e) | $ 3,635 | $ 3,787 | ||
Metropolitan Trans. Auth. Rev. Series 2005 C: | ||||
5% 11/15/10 | 2,000 | 2,093 | ||
5% 11/15/11 | 2,750 | 2,906 | ||
New York City Gen. Oblig.: | ||||
Series 1996 B, 6.5% 8/15/09 | 3,425 | 3,656 | ||
Series 1997 H, 6% 8/1/12 (FGIC Insured) | 1,300 | 1,449 | ||
Series 2000 A, 6.5% 5/15/11 | 370 | 405 | ||
Series 2002 G, 5.5% 8/1/10 | 2,720 | 2,879 | ||
Series 2003 F, 5.5% 12/15/11 | 4,305 | 4,642 | ||
Series 2004 G, 5% 8/1/09 | 8,000 | 8,249 | ||
Series 2005 C, 5% 8/1/12 | 19,770 | 20,992 | ||
Series 2005 D, 5% 8/1/12 | 4,925 | 5,229 | ||
Series 2005 G, 5.625% 8/1/13 (MBIA Insured) | 5,075 | 5,555 | ||
Series 2005 K: | ||||
5% 8/1/11 | 7,120 | 7,491 | ||
5% 8/1/12 | 4,360 | 4,629 | ||
Series 2005 O, 5% 6/1/12 | 7,500 | 7,951 | ||
Series A, 5.25% 11/1/14 (MBIA Insured) | 600 | 647 | ||
Series B, 5.75% 8/1/14 | 1,000 | 1,100 | ||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 1,000 | 1,068 | ||
Subseries 2005 F1, 5% 9/1/15 | 3,560 | 3,848 | ||
New York City Indl. Dev. Agcy. Spl. Facilities Rev. (Terminal One Group Assoc. Proj.) 5% 1/1/07 (d) | 1,700 | 1,700 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. 6% 6/15/33 (MBIA Insured) (Pre-Refunded to 6/15/10 @ 101) (e) | 10,000 | 10,809 | ||
New York Counties Tobacco Trust I Series B, 6.5% 6/1/35 (Pre-Refunded to 6/1/10 @ 101) (e) | 5,900 | 6,502 | ||
New York State Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.): | ||||
Series A: | ||||
5.75% 7/1/13 | 3,500 | 3,795 | ||
5.75% 7/1/13 (AMBAC Insured) | 1,000 | 1,087 | ||
Series C, 7.5% 7/1/10 | 2,565 | 2,733 | ||
Series B, 5.25%, tender 5/15/12 (c) | 13,000 | 13,893 | ||
New York State Urban Dev. Corp. Rev. 5% 1/1/12 | 5,000 | 5,277 | ||
New York Transitional Fin. Auth. Rev.: | ||||
Series 2003 E, 5% 2/1/09 | 2,035 | 2,091 | ||
Series A: | ||||
5.5% 11/1/26 (a) | 3,500 | 3,758 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
New York Transitional Fin. Auth. Rev.: - continued | ||||
Series A: | ||||
6% 11/1/28 (a) | $ 44,300 | $ 48,527 | ||
Series B, 5.25% 2/1/29 (a) | 3,100 | 3,267 | ||
Series E, 4.5% 2/1/07 | 245 | 245 | ||
Tobacco Settlement Asset Securitization Corp. Series 1: | ||||
5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (e) | 6,760 | 7,196 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (e) | 1,200 | 1,280 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (e) | 2,490 | 2,655 | ||
6% 7/15/20 (Pre-Refunded to 7/15/09 @ 101) (e) | 2,280 | 2,431 | ||
6% 7/15/21 (Pre-Refunded to 7/15/09 @ 101) (e) | 2,310 | 2,463 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2004 B1, 5% 6/1/09 | 3,800 | 3,906 | ||
Series A1: | ||||
5% 6/1/10 | 1,875 | 1,947 | ||
5.25% 6/1/12 | 5,000 | 5,004 | ||
5.25% 6/1/13 | 17,500 | 17,880 | ||
5.5% 6/1/14 | 2,700 | 2,812 | ||
Series C1: | ||||
5.5% 6/1/15 | 1,300 | 1,373 | ||
5.5% 6/1/17 | 4,200 | 4,484 | ||
257,807 | ||||
New York & New Jersey - 0.6% | ||||
Port Auth. of New York & New Jersey: | ||||
124th Series, 5% 8/1/13 (FGIC Insured) (d) | 1,200 | 1,230 | ||
127th Series, 5% 12/15/08 (AMBAC Insured) (d) | 3,510 | 3,598 | ||
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (MBIA Insured) (d) | 4,100 | 4,654 | ||
9,482 | ||||
North Carolina - 0.9% | ||||
Charlotte Ctfs. of Prtn. (FY 2004 Equip. Acquisition Proj.) Series 2004 C, 4% 3/1/08 | 4,940 | 4,959 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | ||||
Series 1993 B, 7% 1/1/08 (MBIA Insured) | 600 | 620 | ||
Series A, 5.5% 1/1/10 | 3,000 | 3,127 | ||
Series C, 5% 1/1/08 | 1,190 | 1,202 | ||
Series D, 5.375% 1/1/10 | 3,715 | 3,860 | ||
13,768 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
North Dakota - 0.1% | ||||
Ward County Health Care Facility Rev. 5% 7/1/10 | $ 1,595 | $ 1,645 | ||
Ohio - 1.6% | ||||
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A, 5% 1/1/11 | 1,000 | 1,034 | ||
Cleveland Pub. Pwr. Sys. Rev.: | ||||
Series A, 0% 11/15/09 (MBIA Insured) | 1,200 | 1,077 | ||
0% 11/15/09 (Escrowed to Maturity) (e) | 1,050 | 944 | ||
Franklin County Rev. (Online Computer Library Ctr., Inc. Proj.) 5% 4/15/07 | 1,960 | 1,965 | ||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/07 | 1,420 | 1,422 | ||
Ohio Air Quality Dev. Auth. Rev. Series 2002 A, 4.2%, tender 1/2/07 (c) | 1,000 | 1,000 | ||
Ohio Gen. Oblig.: | ||||
Series 2000 E, 5.5% 5/1/09 | 1,905 | 1,983 | ||
Series 2003 D, 2.45%, tender 9/14/07 (c) | 12,300 | 12,179 | ||
Univ. of Cincinnati Gen. Receipts Series A, 5.5% 6/1/09 (FGIC Insured) | 2,000 | 2,085 | ||
23,689 | ||||
Oklahoma - 0.4% | ||||
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (e) | 1,000 | 827 | ||
Tulsa County Indl. Auth. Cap. Impts. Rev. Series B, 5.25% 1/1/09 (FSA Insured) | 5,245 | 5,406 | ||
6,233 | ||||
Oregon - 0.5% | ||||
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured) | 1,210 | 1,262 | ||
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B: | ||||
5% 5/1/09 (FSA Insured) | 600 | 618 | ||
5% 5/1/11 (FSA Insured) | 1,000 | 1,053 | ||
Tri-County Metropolitan Trans. District Rev. 5% 5/1/11 (MBIA Insured) | 5,000 | 5,263 | ||
8,196 | ||||
Pennsylvania - 4.0% | ||||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (MBIA Insured) (d) | 1,300 | 1,403 | ||
Allegheny County Indl. Dev. Auth. Rev. (Watson Institute Ed. Ctr. Proj.) 3.375%, tender 5/1/08, LOC PNC Bank NA, Pittsburgh (c) | 4,500 | 4,470 | ||
Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured) | 1,495 | 1,635 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Pennsylvania - continued | ||||
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.) Series B: | ||||
5% 12/15/09 | $ 2,565 | $ 2,631 | ||
5% 12/15/11 | 2,835 | 2,948 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(d) | 10,000 | 9,867 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(d) | 2,100 | 2,101 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Pennsylvania Health Sys. Proj.) Series A, 5% 8/15/08 | 2,000 | 2,042 | ||
(UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09 | 1,750 | 1,818 | ||
Series B, 5.25% 9/1/08 | 5,860 | 6,014 | ||
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured) | 2,750 | 2,893 | ||
Philadelphia Gas Works Rev. (1975 Gen. Ordinance Proj.) 17th Series, 5% 7/1/08 (FSA Insured) | 7,410 | 7,551 | ||
Philadelphia Muni. Auth. Rev.: | ||||
Series A, 5% 5/15/08 (FSA Insured) | 5,000 | 5,090 | ||
Series B, 5.25% 11/15/11 (FSA Insured) | 3,400 | 3,622 | ||
Philadelphia School District: | ||||
Series 2005 D, 5.25% 6/1/12 (FSA Insured) | 1,465 | 1,569 | ||
Series B, 5% 4/1/11 (AMBAC Insured) | 2,160 | 2,267 | ||
Pittsburgh School District Series A, 5% 9/1/09 | 1,600 | 1,644 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) (e) | 2,355 | 1,906 | ||
61,471 | ||||
Puerto Rico - 1.4% | ||||
Puerto Rico Convention Ctr. District Auth. Hotel Occupancy Tax Rev. Series 2006 A, 5% 7/1/10 | 2,000 | 2,069 | ||
Puerto Rico Govt. Dev. Bank 5% 12/1/10 | 8,000 | 8,316 | ||
Univ. of Puerto Rico: | ||||
Series 06P, 5% 6/1/11 | 5,760 | 6,019 | ||
5% 6/1/11 | 4,825 | 5,042 | ||
21,446 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Rhode Island - 0.3% | ||||
Providence Spl. Oblig. Series 2005 E: | ||||
4% 6/1/08 (Radian Asset Assurance Ltd. Insured) | $ 1,000 | $ 1,003 | ||
5% 6/1/09 (Radian Asset Assurance Ltd. Insured) | 1,315 | 1,347 | ||
5% 6/1/10 (Radian Asset Assurance Ltd. Insured) | 1,180 | 1,217 | ||
Rhode Island Health & Edl. Bldg. Corp. Rev. (Johnson & Wales Univ. Proj.) 5% 4/1/08 (XL Cap. Assurance, Inc. Insured) | 1,700 | 1,728 | ||
5,295 | ||||
South Carolina - 1.2% | ||||
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A: | ||||
5% 8/15/07 | 1,700 | 1,711 | ||
5% 8/15/08 | 1,690 | 1,711 | ||
Greenville County Pub. Facilities Corp. Ctfs. of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 | 1,450 | 1,509 | ||
Greenville County School District Installment Purp. Rev. 5% 12/1/10 | 1,455 | 1,519 | ||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5% 12/1/09 | 550 | 568 | ||
Piedmont Muni. Pwr. Agcy. Elec. Rev. 5.6% 1/1/09 (MBIA Insured) | 2,345 | 2,433 | ||
Rock Hill Util. Sys. Rev. Series 2003 A, 5% 1/1/09 | 1,945 | 1,997 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2005 B, 5% 1/1/10 (MBIA Insured) | 3,000 | 3,109 | ||
Series A, 5.5% 1/1/11 (MBIA Insured) | 3,000 | 3,179 | ||
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured) | 1,000 | 1,030 | ||
18,766 | ||||
Tennessee - 1.4% | ||||
Clarksville Natural Gas Acquisition Corp. Gas Rev. 5% 12/15/09 | 7,500 | 7,730 | ||
Elizabethton Health & Edl. Facilities Board Rev. | 2,005 | 2,184 | ||
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured) | 2,000 | 2,082 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A: | ||||
4.5% 9/1/08 (MBIA Insured) | 1,620 | 1,642 | ||
4.5% 9/1/09 (MBIA Insured) | 1,685 | 1,720 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Tennessee - continued | ||||
Metropolitan Govt. Nashville & Series A, 5.25% 10/15/09 | $ 3,795 | $ 3,952 | ||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured) | 1,200 | 1,238 | ||
20,548 | ||||
Texas - 11.3% | ||||
Alief Independent School District Series 2004 B, 5% 2/15/10 | 1,500 | 1,558 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B: | ||||
6% 1/1/12 | 500 | 529 | ||
6% 1/1/13 | 1,270 | 1,355 | ||
6% 1/1/14 | 1,420 | 1,527 | ||
Austin Util. Sys. Rev.: | ||||
Series 1992 A, 0% 11/15/09 (MBIA Insured) | 5,130 | 4,599 | ||
Series A, 0% 11/15/10 (MBIA Insured) | 5,300 | 4,574 | ||
Bexar County Series A: | ||||
5% 6/15/09 (FSA Insured) | 2,615 | 2,698 | ||
5% 6/15/10 (FSA Insured) | 1,000 | 1,043 | ||
Birdville Independent School District 5% 2/15/10 | 1,300 | 1,350 | ||
Brownsville Independent School District 5% 8/15/11 | 1,430 | 1,509 | ||
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured) | 1,500 | 1,610 | ||
College Station Independent School District 5% 2/15/10 | 1,000 | 1,039 | ||
Conroe Independent School District Lot B, 0% 2/15/08 | 3,000 | 2,879 | ||
Del Valle Independent School District 5.5% 2/1/09 | 1,205 | 1,248 | ||
Denton County Gen. Oblig. 5% 7/15/11 (FSA Insured) | 3,065 | 3,232 | ||
Fort Bend Independent School District 5%, tender 8/15/09 (c) | 5,000 | 5,149 | ||
Fort Worth Independent School District 5% 2/15/12 | 1,500 | 1,591 | ||
Frisco Gen. Oblig. Series 2003 A, 5% 2/15/10 | 1,710 | 1,776 | ||
Harris County Health Facilities Dev. Corp. Rev. | 3,710 | 3,839 | ||
Houston Cmnty. College Sys. Rev.: | ||||
5.25% 4/15/11 (FSA Insured) | 3,030 | 3,212 | ||
5.25% 4/15/12 (FSA Insured) | 2,000 | 2,144 | ||
Houston Util. Sys. Rev. Series A: | ||||
5.25% 5/15/10 (MBIA Insured) | 2,835 | 2,973 | ||
5.25% 11/15/11 (FSA Insured) | 4,430 | 4,729 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Katy Independent School District Series A, 5.25% 2/15/12 | $ 2,000 | $ 2,144 | ||
Lower Colorado River Auth. Rev.: | ||||
0% 1/1/09 (Escrowed to Maturity) (e) | 3,000 | 2,785 | ||
5.25% 1/1/15 (Pre-Refunded to 1/1/11 @ 100) (e) | 5,000 | 5,289 | ||
Lubbock Gen. Oblig.: | ||||
(Wtrwks. Sys. Surplus Proj.) 5% 2/15/11 (FSA Insured) | 2,465 | 2,588 | ||
5% 2/15/09 (MBIA Insured) | 1,615 | 1,659 | ||
5% 2/15/10 (MBIA Insured) | 1,845 | 1,917 | ||
Lubbock Health Facilities Dev. Corp. Rev. (Carillon, Inc. Proj.) Series A, 6.5% 7/1/29 (Pre-Refunded to 7/1/09 @ 102) (e) | 4,800 | 5,203 | ||
Magnolia Independent School District 8% 8/15/11 (FGIC Insured) | 1,210 | 1,427 | ||
Mesquite Independent School District 3.65%, tender 12/1/08 (Liquidity Facility JPMorgan Chase Bank) (c)(e) | 2,500 | 2,500 | ||
Montgomery County Gen. Oblig. Series B, 5%, tender 9/1/10 (FSA Insured) (c) | 1,300 | 1,352 | ||
North East Texas Independent School District 7% 2/1/11 (Pre-Refunded to 2/1/10 @ 100) (e) | 3,600 | 3,945 | ||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C: | ||||
5% 1/1/09 (FSA Insured) | 2,000 | 2,051 | ||
5%, tender 7/1/08 (c)(e) | 45 | 46 | ||
5%, tender 7/1/08 (FSA Insured) (c) | 2,605 | 2,653 | ||
Rockwall Independent School District 5% 2/15/09 | 4,690 | 4,815 | ||
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series A, 5.5%, tender 11/1/11 (c) | 1,000 | 1,048 | ||
San Angelo Wtrwks. & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured) | 1,630 | 1,694 | ||
San Antonio Elec. & Gas Sys. Rev.: | ||||
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (e) | 5,000 | 5,300 | ||
Series B, 0% 2/1/09 (Escrowed to Maturity) (e) | 2,500 | 2,314 | ||
San Antonio Independent School District 7% 8/15/08 | 5,000 | 5,262 | ||
San Antonio Muni. Drainage Util. Sys. Rev. 5.25% 2/1/12 (MBIA Insured) | 1,545 | 1,653 | ||
San Antonio Wtr. Sys. Rev. 5% 5/15/10 (FGIC Insured) | 1,020 | 1,062 | ||
Socorro Independent School District 5% 8/15/09 | 2,070 | 2,140 | ||
Spring Branch Independent School District Series 2001, 5.375% 2/1/14 | 2,790 | 2,964 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Texas Gen. Oblig.: | ||||
(College Student Ln. Prog.) 5% 8/1/11 (d) | $ 3,000 | $ 3,083 | ||
Series A, 6% 10/1/08 (MBIA Insured) | 10,750 | 11,179 | ||
Series C: | ||||
0% 4/1/08 (Escrowed to Maturity) (e) | 3,100 | 2,963 | ||
0% 4/1/09 (Escrowed to Maturity) (e) | 2,320 | 2,134 | ||
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Proj.) Series A, 5% 2/1/10 | 1,055 | 1,094 | ||
Texas Tech Univ. Revs. Ninth Series, 5% 2/15/11 (AMBAC Insured) | 1,250 | 1,310 | ||
Travis County Gen. Oblig. 5.25% 3/1/12 | 4,125 | 4,423 | ||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.) 5% 7/1/07 | 1,000 | 1,004 | ||
Univ. of Texas Univ. Revs.: | ||||
(Fing. Sys. Proj.) Series A, 5.5% 8/15/09 | 1,115 | 1,165 | ||
Series B: | ||||
5% 8/15/09 | 11,255 | 11,619 | ||
5.25% 8/15/11 | 5,025 | 5,352 | ||
Wichita Falls Independent School District 0% 2/1/10 | 2,325 | 2,065 | ||
Ysleta Independent School District 0% 8/15/09 | 4,065 | 3,675 | ||
171,040 | ||||
Utah - 1.4% | ||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | ||||
0% 10/1/11 (AMBAC Insured) | 3,800 | 3,157 | ||
0% 10/1/12 (AMBAC Insured) | 3,800 | 3,029 | ||
0% 10/1/13 (AMBAC Insured) | 3,760 | 2,871 | ||
Utah Bldg. Ownership Auth. Lease Rev. (State Facilities Master Lease Prog.) Series A, 5% 5/15/11 | 1,700 | 1,791 | ||
Utah Gen. Oblig. Series 2006 B, 5.375% 7/1/10 | 9,475 | 10,022 | ||
20,870 | ||||
Virginia - 0.1% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.05%, tender 4/1/08 (c)(d) | 1,600 | 1,590 | ||
Washington - 1.7% | ||||
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured) | 1,190 | 1,252 | ||
Clark County Pub. Util. District #1 Elec. Rev.: | ||||
Series B, 5.25% 1/1/09 (FSA Insured) | 1,595 | 1,643 | ||
5% 1/1/11 (MBIA Insured) | 1,680 | 1,759 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Washington - continued | ||||
Clark County Pub. Util. District #1 Elec. Rev.: - continued | ||||
5.25% 1/1/11 (FSA Insured) | $ 1,935 | $ 2,044 | ||
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured) | 1,740 | 1,830 | ||
Pierce County Gen. Oblig. 5.75% 8/1/13 (Pre-Refunded to 8/1/10 @ 100) (e) | 1,155 | 1,234 | ||
Port of Seattle Rev. Series D, 5.75% 11/1/15 (FGIC Insured) (d) | 3,640 | 3,974 | ||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/09 (FGIC Insured) | 1,000 | 1,019 | ||
Snohomish County School District #2, Everett: | ||||
5% 6/1/09 (FSA Insured) | 1,045 | 1,076 | ||
5% 6/1/10 (FSA Insured) | 1,000 | 1,041 | ||
Vancouver Wtr. & Swr. Rev. 5.25% 6/1/11 (FSA Insured) | 1,000 | 1,062 | ||
Washington Gen. Oblig. Series A: | ||||
5% 7/1/11 (FGIC Insured) | 1,000 | 1,056 | ||
5.5% 7/1/11 (Pre-Refunded to 7/1/10 @ 100) (e) | 3,500 | 3,705 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev. Series A, 5.75% 7/1/08 | 3,000 | 3,086 | ||
25,781 | ||||
Wisconsin - 0.9% | ||||
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured) | 3,370 | 2,892 | ||
Wisconsin Gen. Oblig. Series 1, 5% 5/1/10 | 2,500 | 2,605 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Marshfield Clinic Proj.): | ||||
Series 2006 A, 5% 2/15/13 | 875 | 909 | ||
Series B, 6.25% 2/15/10 | 1,015 | 1,078 | ||
(Wheaton Franciscan Services Proj.): | ||||
5% 8/15/11 | 1,315 | 1,364 | ||
5.75% 8/15/11 | 1,000 | 1,069 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Wisconsin - continued | ||||
Wisconsin Health & Edl. Facilities Auth. Rev.: - continued | ||||
(Wheaton Franciscan Svcs., Inc. Proj.) Series A: | ||||
5% 8/15/09 | $ 1,765 | $ 1,805 | ||
5% 8/15/10 | 1,870 | 1,928 | ||
13,650 |
TOTAL INVESTMENT PORTFOLIO - 99.3% (Cost $1,516,025) | 1,509,029 | ||
NET OTHER ASSETS - 0.7% | 10,886 | ||
NET ASSETS - 100% | $ 1,519,915 |
Legend |
(a) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Security collateralized by an amount sufficient to pay interest and principal. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,721,000 or 0.6% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 8,607 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 41.0% |
Escrowed/Pre-Refunded | 13.4% |
Special Tax | 9.7% |
Electric Utilities | 8.6% |
Transportation | 7.2% |
Health Care | 6.8% |
Education | 6.3% |
Others* (individually less than 5%) | 7.0% |
100.0% |
*Includes net other assets |
Income Tax Information |
At December 31, 2006, the fund had a capital loss carryforward of approximately $5,570,000 of which $699,000 and $4,871,000 will expire on December 31, 2013 and 2014, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | December 31, 2006 | |
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $1,516,025) | $ 1,509,029 | |
Receivable for fund shares sold | 1,206 | |
Interest receivable | 20,620 | |
Prepaid expenses | 8 | |
Other receivables | 85 | |
Total assets | 1,530,948 | |
Liabilities | ||
Payable to custodian bank | $ 288 | |
Payable for investments purchased on a delayed delivery basis | 6,173 | |
Payable for fund shares redeemed | 2,628 | |
Distributions payable | 1,134 | |
Accrued management fee | 471 | |
Distribution fees payable | 11 | |
Other affiliated payables | 280 | |
Other payables and accrued expenses | 48 | |
Total liabilities | 11,033 | |
Net Assets | $ 1,519,915 | |
Net Assets consist of: | ||
Paid in capital | $ 1,533,002 | |
Distributions in excess of net investment income | (2) | |
Accumulated undistributed net realized gain (loss) on investments | (6,089) | |
Net unrealized appreciation (depreciation) on investments | (6,996) | |
Net Assets | $ 1,519,915 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2006 | |
Calculation of Maximum Offering Price Class A: | $ 10.21 | |
Maximum offering price per share (100/96.25 of $10.21) | $ 10.61 | |
Class T: | $ 10.19 | |
Maximum offering price per share (100/97.25 of $10.19) | $ 10.48 | |
Class B: | $ 10.20 | |
Class C: | $ 10.19 | |
Short-Intermediate Municipal Income: | $ 10.19 | |
Institutional Class: | $ 10.20 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
Amounts in thousands | Year ended December 31, 2006 | |
Investment Income | ||
Interest | $ 55,139 | |
Expenses | ||
Management fee | $ 5,964 | |
Transfer agent fees | 1,393 | |
Distribution fees | 158 | |
Accounting fees and expenses | 321 | |
Custodian fees and expenses | 25 | |
Independent trustees' compensation | 6 | |
Registration fees | 104 | |
Audit | 57 | |
Legal | 10 | |
Miscellaneous | 33 | |
Total expenses before reductions | 8,071 | |
Expense reductions | (1,341) | 6,730 |
Net investment income | 48,409 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (4,249) | |
Change in net unrealized appreciation (depreciation) on investment securities | 1,984 | |
Net gain (loss) | (2,265) | |
Net increase (decrease) in net assets resulting from operations | $ 46,144 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 48,409 | $ 51,345 |
Net realized gain (loss) | (4,249) | (1,840) |
Change in net unrealized appreciation (depreciation) | 1,984 | (29,976) |
Net increase (decrease) in net assets resulting | 46,144 | 19,529 |
Distributions to shareholders from net investment income | (48,409) | (51,341) |
Distributions to shareholders from net realized gain | - | (549) |
Total distributions | (48,409) | (51,890) |
Share transactions - net increase (decrease) | (188,103) | (147,427) |
Redemption fees | 13 | 25 |
Total increase (decrease) in net assets | (190,355) | (179,763) |
Net Assets | ||
Beginning of period | 1,710,270 | 1,890,033 |
End of period (including distributions in excess of net investment income of $2 and distributions in excess of net investment income of $3, respectively) | $ 1,519,915 | $ 1,710,270 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.21 | $ 10.39 | $ 10.50 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .292 | .268 | .250 | .115 |
Net realized and unrealized gain (loss) | (.001) | (.177) | (.090) | .071 |
Total from investment operations | .291 | .091 | .160 | .186 |
Distributions from net investment income | (.291) | (.268) | (.251) | (.111) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.291) | (.271) | (.270) | (.176) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.21 | $ 10.21 | $ 10.39 | $ 10.50 |
Total Return B, C, D | 2.89% | .89% | 1.55% | 1.78% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | .65% | .65% | .65% | .65% A |
Expenses net of fee waivers, if any | .65% | .65% | .65% | .65% A |
Expenses net of all reductions | .56% | .58% | .64% | .64% A |
Net investment income | 2.86% | 2.61% | 2.41% | 2.52% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 10 | $ 14 | $ 12 | $ 9 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.20 | $ 10.37 | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .281 | .257 | .238 | .110 |
Net realized and unrealized gain (loss) | (.011) | (.167) | (.089) | .050 |
Total from investment operations | .270 | .090 | .149 | .160 |
Distributions from net investment income | (.280) | (.257) | (.240) | (.105) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.280) | (.260) | (.259) | (.170) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 10.20 | $ 10.37 | $ 10.48 |
Total Return B, C, D | 2.69% | .88% | 1.44% | 1.54% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | .75% | .76% | .76% | .77% A |
Expenses net of fee waivers, if any | .75% | .76% | .76% | .77% A |
Expenses net of all reductions | .66% | .69% | .75% | .76% A |
Net investment income | 2.76% | 2.50% | 2.30% | 2.41% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 13 | $ 15 | $ 20 | $ 12 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.21 | $ 10.39 | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .215 | .190 | .172 | .081 |
Net realized and unrealized gain (loss) | (.012) | (.177) | (.080) | .059 |
Total from investment operations | .203 | .013 | .092 | .140 |
Distributions from net investment income | (.213) | (.190) | (.173) | (.075) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.213) | (.193) | (.192) | (.140) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.20 | $ 10.21 | $ 10.39 | $ 10.49 |
Total Return B, C, D | 2.02% | .13% | .89% | 1.34% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of fee waivers, if any | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of all reductions | 1.31% | 1.34% | 1.39% | 1.39% A |
Net investment income | 2.11% | 1.85% | 1.65% | 1.78% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 2 | $ 3 | $ 4 | $ 2 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .204 | .178 | .159 | .077 |
Net realized and unrealized gain (loss) | (.011) | (.176) | (.080) | .048 |
Total from investment operations | .193 | .002 | .079 | .125 |
Distributions from net investment income | (.203) | (.179) | (.160) | (.070) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.203) | (.182) | (.179) | (.135) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 |
Total Return B, C, D | 1.92% | .02% | .77% | 1.20% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of fee waivers, if any | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of all reductions | 1.41% | 1.45% | 1.51% | 1.49% A |
Net investment income | 2.01% | 1.74% | 1.53% | 1.67% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 7 | $ 10 | $ 11 | $ 8 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Short-Intermediate Municipal Income
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 | $ 10.27 |
Income from Investment Operations | |||||
Net investment income B | .307 | .284 | .268 | .283 | .336 |
Net realized and unrealized | (.010) | (.177) | (.080) | .030 | .317 |
Total from investment operations | .297 | .107 | .188 | .313 | .653 |
Distributions from net investment income | (.307) | (.284) | (.269) | (.283) | (.339) |
Distributions from net realized | - | (.003) | (.019) | (.070) | (.064) |
Total distributions | (.307) | (.287) | (.288) | (.353) | (.403) |
Redemption fees added to paid | - | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 |
Total Return A | 2.95% | 1.06% | 1.82% | 3.01% | 6.47% |
Ratios to Average Net Assets C | |||||
Expenses before reductions | .49% | .49% | .49% | .49% | .49% |
Expenses net of fee waivers, | .49% | .49% | .48% | .49% | .49% |
Expenses net of all reductions | .41% | .42% | .47% | .47% | .45% |
Net investment income | 3.01% | 2.77% | 2.57% | 2.69% | 3.23% |
Supplemental Data | |||||
Net assets, end of period | $ 1,485 | $ 1,665 | $ 1,841 | $ 1,843 | $ 1,683 |
Portfolio turnover rate | 28% | 27% | 45% | 34% | 38% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2006 | 2005 | 2004 | 2003 E |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.20 | $ 10.38 | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income D | .306 | .283 | .265 | .125 |
Net realized and unrealized gain (loss) | - G | (.176) | (.088) | .059 |
Total from investment operations | .306 | .107 | .177 | .184 |
Distributions from net investment income | (.306) | (.284) | (.268) | (.119) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.306) | (.287) | (.287) | (.184) |
Redemption fees added to paid in capital D, G | - | - | - | - |
Net asset value, end of period | $ 10.20 | $ 10.20 | $ 10.38 | $ 10.49 |
Total Return B, C | 3.05% | 1.05% | 1.71% | 1.77% |
Ratios to Average Net Assets F | ||||
Expenses before reductions | .50% | .49% | .49% | .48% A |
Expenses net of fee waivers, if any | .50% | .49% | .49% | .48% A |
Expenses net of all reductions | .41% | .42% | .48% | .47% A |
Net investment income | 3.01% | 2.77% | 2.57% | 2.69% A |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $ 3,357 | $ 2,625 | $ 1,253 | $ 414 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2006
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Short-Intermediate Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (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 Massachusetts business trust.
The Fund offers Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to excise tax regulations.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 4,702 | |
Unrealized depreciation | (11,599) | |
Net unrealized appreciation (depreciation) | (6,897) | |
Capital loss carryforward | (5,570) | |
Cost for federal income tax purposes | $ 1,515,926 |
Annual Report
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, 2006 | December 31, 2005 | |
Tax-exempt Income | $ 48,409 | $ 51,341 |
Long-term Capital Gains | - | 549 |
Total | $ 48,409 | $ 51,890 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
2. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally 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. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $443,566 and $621,528, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | .00% | .15% | $ 17 | $ - |
Class T | .00% | .25% | 35 | - |
Class B | .65% | .25% | 27 | 20 |
Class C | .75% | .25% | 79 | 16 |
$ 158 | $ 36 |
On January 18, 2007, the Board of Trustees approved an increase in Class A's Service fee from .15% to .25%, effective April 1, 2007.
Sales Load. FDC receives a front-end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, .75% to .50% for certain purchases of Class A shares (.25% prior to February 24, 2006) and .25% for certain purchases of Class T shares.
On January 18, 2007, the Board of Trustees approved a change in Class A's front-end sales charge. Effective April 1, 2007, FDC will receive a front-end sales charge of up to 2.75% for selling Class A shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 2 |
Class T | 1 |
Class B* | 12 |
Class C* | 3 |
$ 18 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the Fund's Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, except for Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. Citibank has also entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, with respect to Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC and FSC receive account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:
Amount | % of | |
Class A | $ 10 | .09 |
Class T | 13 | .09 |
Class B | 3 | .10 |
Class C | 8 | .11 |
Short-Intermediate Municipal Income | 1,356 | .09 |
Institutional Class | 3 | .09 |
$ 1,393 |
Citibank also has a sub-arrangement with FSC to maintain the Fund's accounting records. The fee is based on the level of average net assets for the month.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Annual Report
6. Expense Reductions.
Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $25 and $321, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | |
Class A | $ 7 |
Class T | 10 |
Class B | 2 |
Class C | 6 |
Short-Intermediate Municipal Income | 968 |
Institutional Class | 2 |
$ 995 |
7. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
During the period, the Fund's transfer agent, Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of Fidelity Management & Research Company, notified the Fund that the fund's books and records did not reflect a conversion of certain Class B to Class A shares upon their conversion date. Management has determined that this did not have a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. FIIOC will cause the books and records of the Fund to reflect a conversion of the relevant Class B shares to Class A and is in the process of determining the impact to affected shareholder accounts for purposes of its remediation.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | ||
2006 | 2005 | |
From net investment income | ||
Class A | $ 317 | $ 313 |
Class T | 388 | 465 |
Class B | 63 | 68 |
Class C | 157 | 195 |
Short-Intermediate Municipal Income | 47,385 | 50,256 |
Institutional Class | 99 | 44 |
Total | $ 48,409 | $ 51,341 |
From net realized gain | ||
Class A | $ - | $ 4 |
Class T | - | 6 |
Class B | - | 1 |
Class C | - | 3 |
Short-Intermediate Municipal Income | - | 534 |
Institutional Class | - | 1 |
Total | $ - | $ 549 |
9. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2006 | 2005 | 2006 | 2005 | |
Class A | ||||
Shares sold | 246 | 684 | $ 2,516 | $ 6,996 |
Reinvestment of distributions | 25 | 23 | 253 | 238 |
Shares redeemed | (701) | (498) | (7,154) | (5,104) |
Net increase (decrease) | (430) | 209 | $ (4,385) | $ 2,130 |
Class T | ||||
Shares sold | 302 | 517 | $ 3,071 | $ 5,299 |
Reinvestment of distributions | 30 | 34 | 307 | 351 |
Shares redeemed | (564) | (1,028) | (5,739) | (10,531) |
Net increase (decrease) | (232) | (477) | $ (2,361) | $ (4,881) |
Class B | ||||
Shares sold | 27 | 65 | $ 268 | $ 661 |
Reinvestment of distributions | 4 | 4 | 45 | 44 |
Shares redeemed | (138) | (100) | (1,399) | (1,025) |
Net increase (decrease) | (107) | (31) | $ (1,086) | $ (320) |
Annual Report
9. Share Transactions - continued
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2006 | 2005 | 2006 | 2005 | |
Class C | ||||
Shares sold | 162 | 438 | $ 1,641 | $ 4,492 |
Reinvestment of distributions | 9 | 11 | 96 | 116 |
Shares redeemed | (536) | (541) | (5,451) | (5,552) |
Net increase (decrease) | (365) | (92) | $ (3,714) | $ (944) |
Short-Intermediate Municipal Income | ||||
Shares sold | 38,594 | 46,854 | $ 392,661 | $ 481,284 |
Reinvestment of distributions | 3,345 | 3,476 | 34,020 | 35,648 |
Shares redeemed | (59,417) | (64,556) | (603,968) | (661,741) |
Net increase (decrease) | (17,478) | (14,226) | $ (177,287) | $ (144,809) |
Institutional Class | ||||
Shares sold | 258 | 194 | $ 2,623 | $ 1,994 |
Reinvestment of distributions | 5 | 2 | 47 | 18 |
Shares redeemed | (191) | (60) | (1,940) | (615) |
Net increase (decrease) | 72 | 136 | $ 730 | $ 1,397 |
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Short-Intermediate Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Short-Intermediate Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2006, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Short-Intermediate Municipal Income Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 13, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Each of the Trustees oversees 348 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (76) | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). | |
Robert L. Reynolds (54) | |
Year of Election or Appointment: 2003 Mr. Reynolds is President and a Director of FMR (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and FMR Co., Inc. (2005-present). Mr. Reynolds also serves as Vice Chairman (2006-present), a Director (2003-present), and Chief Operating Officer of FMR Corp. and a Director of Strategic Advisers, Inc. (2005-present). He also serves on the Board at Fidelity Investments Canada, Ltd. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (58) | |
Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present). | |
Albert R. Gamper, Jr. (64) | |
Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. | |
George H. Heilmeier (70) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. | |
James H. Keyes (66) | |
Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). | |
Marie L. Knowles (60) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (62) | |
Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. | |
Cornelia M. Small (62) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (67) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), and Metalmark Capital (private equity investment firm, 2005-present). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (67) | |
Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (62) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001- present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. | |
Kimberley H. Monasterio (43) | |
Year of Election or Appointment: 2007 President and Treasurer of Short-Intermediate Municipal Income. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
Boyce I. Greer (50) | |
Year of Election or Appointment: 2006 Vice President of Short-Intermediate Municipal Income. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006- present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002). | |
David L. Murphy (58) | |
Year of Election or Appointment: 2005 Vice President of Short-Intermediate Municipal Income. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002- present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). | |
Thomas J. Silvia (45) | |
Year of Election or Appointment: 2005 Vice President of Short-Intermediate Municipal Income. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present), certain Balanced Funds (2005-present), certain Asset Allocation Funds (2005-present), and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004). | |
Mark Sommer (46) | |
Year of Election or Appointment: 2004 Vice President of Short-Intermediate Municipal Income. Mr. Sommer also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Sommer worked as an analyst and manager. | |
Eric D. Roiter (58) | |
Year of Election or Appointment: 1998 Secretary of Short-Intermediate Municipal Income. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). | |
Stuart Fross (47) | |
Year of Election or Appointment: 2003 Assistant Secretary of Short-Intermediate Municipal Income. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003-present), Vice President and Secretary of FDC (2005-present), and is an employee of FMR. | |
R. Stephen Ganis (40) | |
Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of Short-Intermediate Municipal Income. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). | |
Joseph B. Hollis (58) | |
Year of Election or Appointment: 2006 Chief Financial Officer of Short-Intermediate Municipal Income. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). | |
Kenneth A. Rathgeber (59) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of Short-Intermediate Municipal Income. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
Bryan A. Mehrmann (45) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Short-Intermediate Municipal Income. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). | |
Kenneth B. Robins (37) | |
Year of Election or Appointment: 2005 Deputy Treasurer of Short-Intermediate Municipal Income. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). | |
Robert G. Byrnes (40) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Short-Intermediate Municipal Income. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). | |
John H. Costello (60) | |
Year of Election or Appointment: 1986 Assistant Treasurer of Short-Intermediate Municipal Income. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (52) | |
Year of Election or Appointment: 2004 Assistant Treasurer of Short-Intermediate Municipal Income. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (51) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Short-Intermediate Municipal Income. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Gary W. Ryan (48) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Short-Intermediate Municipal Income. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). | |
Salvatore Schiavone (41) | |
Year of Election or Appointment: 2005 Assistant Treasurer of Short-Intermediate Municipal Income. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
During fiscal year ended 2006, 100% of the fund's income dividends was free from federal income tax, and 7.70% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2007 of amounts for use in preparing 2006 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site
www.fidelity.com
* 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.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
Fidelity Investments Money
Management, Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management &
Research (Far East) Inc.)
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
STM-UANN-0207
1.787742.103
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Short-Intermediate
Municipal Income
Fund - Class A, Class T, Class B
and Class C
Annual Report
December 31, 2006
Class A, Class T, Class B, and Class C are classes of Fidelity® Short-Intermediate Municipal Income Fund
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
We have seen consistently strong performance from stocks and bonds of late, and some relief in energy prices, but the housing market slowdown bears watching for how it might affect the consumer. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2006 | Past 1 | Past 5 | Past 10 |
Class A (incl. 3.75% sales charge) A | -0.96% | 2.18% | 3.44% |
Class T (incl. 2.75% sales charge) B | -0.13% | 2.28% | 3.49% |
Class B (incl. contingent deferred sales charge) C | -0.98% | 2.41% | 3.56% |
Class C (incl. contingent deferred sales charge) D | 0.92% | 2.32% | 3.51% |
A Class A shares bear a 0.15% 12b-1 fee. The initial offering of Class A shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Short-Intermediate Municipal Income Fund, the original retail class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower.
B Class T shares bear a 0.25% 12b-1 fee. The initial offering of Class T shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Short-Intermediate Municipal Income Fund, the original retail class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower.
C Class B shares bear a 0.90% 12b-1 fee. The initial offering of Class B shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Short-Intermediate Municipal Income Fund, the original retail class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower. Class B shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 3%, 0%, and 0%, respectively.
D Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Short-Intermediate Municipal Income Fund, the original retail class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to July 23, 2003 would have been lower. Class C shares' contingent deferred sales charge included in the past one year, past five years and past ten years total return figures are 1%, 0%, and 0%, respectively.
Annual Report
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Short-Intermediate Municipal Income - Class T on December 31, 1996, and the current 2.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Mark Sommer, Portfolio Manager of Fidelity Advisor Short-Intermediate Municipal Income Fund
Growing investor demand and a strong second-half rally helped municipal bonds post solid returns and take their place as one of the best performing investment-grade debt classes for the year ending December 31, 2006. Throughout roughly the first six months of the period, muni bond prices declined as the Federal Reserve Board raised short-term interest rates to return them to a more "neutral level" and fend off inflation. Beginning in mid-summer 2006, however, munis rebounded amid hopes that the Fed would pause its rate hike campaign. Those hopes were eventually actualized when the central bank left rates unchanged at its August, September, October and December Open Market Committee meetings. Demand - which was amplified by non-traditional investors such as hedge funds - increased substantially, as investors sought out munis for their attractive after-tax yields. Investors also were drawn to the fact that unlike long-term Treasury bonds, which generally yielded less than short-term Treasuries throughout much of the period, long-term rates for munis were higher than short rates, giving investors the opportunity to lock in attractive long-term yields. Against this backdrop, the Lehman Brothers® Municipal Bond Index - a performance measure of approximately 34,000 investment-grade, fixed-rate, tax-exempt bonds - returned 4.84%. In comparison, the overall taxable bond market, as measured by the Lehman Brothers Aggregate Bond Index, returned 4.33%.
During the past year, the fund's Class A, Class T, Class B and Class C shares returned 2.89%, 2.69%, 2.02% and 1.92%, respectively (excluding sales charges), and the Lehman Brothers 1-6 Year Municipal Bond Index gained 3.19%. The fund's performance relative to the index was helped by my decision to overweight longer-term bonds, which outpaced shorter-term bonds due to strong investor demand for yield-enhanced securities. While I invested in bonds of various maturities, I kept the fund's duration - meaning its interest rate sensitivity - in line with the index, a strategy that neutralized the impact of overall interest rate movements on the fund's relative performance. Performance also was aided by an overweighting relative to the index in lower-quality investment-grade bonds. They, too, were the beneficiaries of investors' appetite for higher yields. Detracting from the fund's return was its underweighting relative to the index in California bonds, which were among the muni market's better performers thanks to strong investor demand.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2006 to December 31, 2006).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,025.60 | $ 3.27** |
HypotheticalA | $ 1,000.00 | $ 1,021.98 | $ 3.26** |
Class T | |||
Actual | $ 1,000.00 | $ 1,024.10 | $ 3.78 |
HypotheticalA | $ 1,000.00 | $ 1,021.48 | $ 3.77 |
Class B | |||
Actual | $ 1,000.00 | $ 1,020.70 | $ 7.13 |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class C | |||
Actual | $ 1,000.00 | $ 1,020.20 | $ 7.64 |
HypotheticalA | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Short-Intermediate Municipal Income | |||
Actual | $ 1,000.00 | $ 1,025.40 | $ 2.50 |
HypotheticalA | $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,026.40 | $ 2.55 |
HypotheticalA | $ 1,000.00 | $ 1,022.68 | $ 2.55 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annualized | |
Class A | .64%** |
Class T | .74% |
Class B | 1.40% |
Class C | 1.50% |
Short-Intermediate Municipal Income | .49% |
Institutional Class | .50% |
** If fees and changes to voluntary expense limitations, effective April 1, 2007 had been in effect during the period, the annualized expense ratio would have been .74% and the expenses paid in the actual and hypothetical examples above would have been $3.77 and $3.76, respectively.
Annual Report
Investment Changes
Top Five States as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
New York | 17.0 | 13.0 |
Texas | 11.3 | 14.0 |
Illinois | 9.9 | 11.0 |
California | 7.0 | 5.4 |
New Jersey | 6.2 | 6.1 |
Top Five Sectors as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
General Obligations | 41.0 | 43.8 |
Escrowed/Pre-Refunded | 13.4 | 12.2 |
Special Tax | 9.7 | 5.1 |
Electric Utilities | 8.6 | 9.4 |
Transportation | 7.2 | 6.9 |
Average Years to Maturity as of December 31, 2006 | ||
6 months ago | ||
Years | 4.1 | 3.6 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2006 | ||
6 months ago | ||
Years | 2.9 | 2.9 |
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 this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | AAA 54.6% | ![]() | AAA 58.3% | ||||
![]() | AA,A 35.9% | ![]() | AA,A 30.0% | ||||
![]() | BBB 6.8% | ![]() | BBB 6.0% | ||||
![]() | BB and Below 0.3% | ![]() | BB and Below 0.0% | ||||
![]() | Not Rated 1.7% | ![]() | Not Rated 1.5% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's ® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ® ratings. |
Annual Report
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Bonds - 99.3% | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Alabama - 3.2% | ||||
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09 | $ 1,100 | $ 1,124 | ||
Daphne Spl. Care Facilities Fing. Auth. Rev. Series A, 0% 8/15/28 (Pre-Refunded to 8/15/08 @ 100) (e) | 10,000 | 9,408 | ||
Health Care Auth. for Baptist Health Series 2006 D: | ||||
5% 11/15/08 | 1,475 | 1,499 | ||
5% 11/15/11 | 1,000 | 1,043 | ||
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev.: | ||||
5.25% 10/1/08 (MBIA Insured) (d) | 2,900 | 2,974 | ||
5.75% 10/1/09 (MBIA Insured) (d) | 4,000 | 4,181 | ||
Jefferson County Ltd. Oblig. School Warrants Series A, 5% 1/1/07 | 2,210 | 2,210 | ||
Jefferson County Swr. Rev.: | ||||
Series 1999 A, 5.75% 2/1/38 (Pre-Refunded to 2/1/09 @ 101) (e) | 5,010 | 5,264 | ||
Series A: | ||||
5% 2/1/33 (Pre-Refunded to 2/1/09 @ 101) (e) | 13,520 | 13,990 | ||
5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (e) | 3,900 | 4,200 | ||
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (e) | 2,060 | 2,189 | ||
48,082 | ||||
Alaska - 0.7% | ||||
Alaska Student Ln. Corp. Student Ln. Rev. Series A, 5.85% 7/1/13 (AMBAC Insured) (d) | 3,285 | 3,496 | ||
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 | 2,500 | 2,692 | ||
North Slope Borough Gen. Oblig. Series B, 0% 6/30/08 (MBIA Insured) | 4,240 | 4,014 | ||
10,202 | ||||
Arizona - 1.8% | ||||
Arizona Ctfs. of Prtn. Series B, 5.5% 9/1/10 (FSA Insured) | 9,025 | 9,563 | ||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured) | 1,115 | 1,153 | ||
Maricopa County Unified School District #48 Scottsdale 7.4% 7/1/10 | 3,750 | 4,201 | ||
Nogales Rev. Oblig. (Wastewtr. Systems Proj.) Series 06A, 3.75%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | 3,000 | 3,001 | ||
Pima County Unified School District #1 Tucson 7.5% 7/1/08 (FGIC Insured) | 7,060 | 7,455 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Arizona - continued | ||||
Pinal County Indl. Dev. Auth. Correctional Facilities Contract Rev. (Florence West Prison Expansion, LLC Proj.) Series A, 4.5% 10/1/08 (American Cap. Access Corp. Insured) | $ 660 | $ 664 | ||
Tucson Wtr. Rev. Series A, 5% 7/1/11 (FGIC Insured) | 1,500 | 1,577 | ||
27,614 | ||||
California - 7.0% | ||||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A, 5.25% 5/1/12 (MBIA Insured) | 6,000 | 6,473 | ||
California Econ. Recovery: | ||||
Series 2004 A, 5.25% 7/1/13 | 2,400 | 2,613 | ||
Series A: | ||||
5.25% 1/1/11 | 6,500 | 6,886 | ||
5.25% 7/1/13 (MBIA Insured) | 2,900 | 3,166 | ||
California Gen. Oblig.: | ||||
5% 2/1/09 | 1,640 | 1,685 | ||
5% 2/1/10 | 2,000 | 2,077 | ||
5% 2/1/11 | 2,525 | 2,651 | ||
5.125% 9/1/12 | 1,000 | 1,047 | ||
5.25% 9/1/10 | 18,550 | 19,544 | ||
5.25% 2/1/11 | 6,775 | 7,177 | ||
5.5% 3/1/11 (FGIC Insured) | 3,210 | 3,445 | ||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,525 | 3,776 | ||
5.75% 10/1/08 | 1,085 | 1,125 | ||
6.4% 9/1/08 | 3,075 | 3,214 | ||
6.5% 9/1/10 | 1,760 | 1,926 | ||
California Health Facilities Fing. Auth. Rev. (Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/10 | 1,000 | 1,043 | ||
California Pub. Works Board Lease Rev. (Coalinga State Hosp. Proj.) Series 2004 A, 5% 6/1/08 | 6,000 | 6,108 | ||
California Statewide Cmntys. Dev. Auth. Rev.: | ||||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c) | 1,400 | 1,397 | ||
(Kaiser Permanente Health Sys. Proj.): | ||||
Series 2001 A, 2.55%, tender 1/4/07 (c) | 1,400 | 1,400 | ||
Series 2004 G, 2.3%, tender 5/1/07 (c) | 8,000 | 7,953 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured) | 3,600 | 2,977 | ||
Univ. of California Revs.: | ||||
(UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (f) | 8,607 | 8,721 | ||
Series K: | ||||
5% 5/15/09 (b) | 1,000 | 1,026 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
California - continued | ||||
Univ. of California Revs.: - continued | ||||
Series K: | ||||
5% 5/15/10 (b) | $ 4,955 | $ 5,141 | ||
Western Placer Unified School District 3.625%, tender 12/1/09 (FSA Insured) (c) | 3,170 | 3,162 | ||
105,733 | ||||
Colorado - 0.6% | ||||
Colorado Health Facilities Auth. Rev. (Adventist Health Sys. - Sunbelt Proj.): | ||||
Series E, 5% 11/15/11 | 2,230 | 2,333 | ||
Series F, 5% 11/15/12 | 1,225 | 1,289 | ||
Denver City & County Arpt. Rev. Series E, 5% 11/15/08 (XL Cap. Assurance, Inc. Insured) (d) | 5,000 | 5,113 | ||
8,735 | ||||
Connecticut - 0.7% | ||||
Connecticut Gen. Oblig.: | ||||
Series 2001 D, 5.125% 11/15/18 (Pre-Refunded to 11/15/11 @ 100) (e) | 5,000 | 5,319 | ||
Series 2002 C, 5% 12/15/08 | 1,930 | 1,981 | ||
Connecticut Health & Edl. Facilities Auth. Rev. (Connecticut Children's Med. Ctr. Proj.) Series B: | ||||
4% 7/1/07 (MBIA Insured) | 1,275 | 1,277 | ||
4.5% 7/1/08 (MBIA Insured) | 1,045 | 1,057 | ||
5% 7/1/09 (MBIA Insured) | 1,000 | 1,029 | ||
10,663 | ||||
District Of Columbia - 0.8% | ||||
District of Columbia Ctfs. of Prtn. 5.25% 1/1/08 (AMBAC Insured) | 935 | 949 | ||
District of Columbia Gen. Oblig.: | ||||
Series A, 5.25% 6/1/09 (FSA Insured) | 1,000 | 1,036 | ||
Series B, 0% 6/1/12 (MBIA Insured) | 3,600 | 2,897 | ||
Metropolitan Washington Arpt. Auth. Gen. Arpt. Rev. Series B, 5.5% 10/1/08 (FGIC Insured) (d) | 6,460 | 6,604 | ||
11,486 | ||||
Florida - 5.5% | ||||
Brevard County School Board Ctfs. of Prtn. Series A, 5.5% 7/1/09 (AMBAC Insured) | 2,775 | 2,889 | ||
Florida Gen. Oblig. (Dept. of Trans. Right of Way Proj.) Series B, 6.375% 7/1/08 | 3,000 | 3,120 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Florida - continued | ||||
Highlands County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.) Series 06G: | ||||
5% 11/15/09 | $ 435 | $ 448 | ||
5% 11/15/10 | 400 | 415 | ||
5% 11/15/11 | 700 | 732 | ||
(Adventist Health Sys./Sunbelt Obligated Group Proj.): | ||||
Series A, 5% 11/15/10 | 1,000 | 1,039 | ||
Series B, 5% 11/15/08 | 800 | 817 | ||
3.95%, tender 9/1/12 (c) | 7,550 | 7,523 | ||
5%, tender 11/16/09 (c) | 4,700 | 4,835 | ||
Series 06G, 5% 11/15/08 | 420 | 428 | ||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.): | ||||
4%, tender 8/1/07 (c) | 11,000 | 10,987 | ||
4.25%, tender 8/1/07 (c)(d) | 6,000 | 6,001 | ||
Lakeland Hosp. Sys. Rev. (Reg'l. Health Systems Proj.) 5% 11/15/11 | 2,545 | 2,668 | ||
Lee County Solid Waste Sys. Rev. 5.25% 10/1/09 (MBIA Insured) (d) | 1,000 | 1,033 | ||
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured) | 1,980 | 2,159 | ||
Miami-Dade County School Board Ctfs. of Prtn. 5%, tender 5/1/11 (MBIA Insured) (c) | 1,500 | 1,569 | ||
Orange County School Board Ctfs. of Prtn. Series A, 5.375% 8/1/22 (Pre-Refunded to 8/1/07 @ 101) (e) | 3,840 | 3,919 | ||
Orlando Utils. Commission Util. Sys. Rev. 5.25% 7/1/09 | 6,000 | 6,227 | ||
Palm Beach County School Board Ctfs. of Prtn. Series A, 6% 8/1/22 (Pre-Refunded to 8/1/10 @ 101) (e) | 7,020 | 7,625 | ||
Polk County Cap. Impt. Rev.: | ||||
Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c) | 9,000 | 9,557 | ||
5.5% 12/1/11 (FGIC Insured) | 3,470 | 3,753 | ||
Seminole County School Board Ctfs. of Prtn. Series A, 4.5% 7/1/08 (MBIA Insured) | 1,250 | 1,266 | ||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001: | ||||
2.8%, tender 10/1/08, LOC SunTrust Banks of Florida, Inc. (c) | 2,000 | 1,969 | ||
3%, tender 10/1/09, LOC SunTrust Banks, Inc. (c) | 1,000 | 977 | ||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 5% 8/1/08 (FSA Insured) | 1,625 | 1,656 | ||
83,612 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Georgia - 0.3% | ||||
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1992 B, 8.25% 1/1/11 (MBIA Insured) | $ 4,105 | $ 4,782 | ||
Hawaii - 2.5% | ||||
Hawaii Arpt. Sys. Rev. Series 2000 B, 8% 7/1/10 | 3,850 | 4,357 | ||
Hawaii Gen. Oblig. Series CU: | ||||
5.75% 10/1/11 (MBIA Insured) | 3,040 | 3,263 | ||
5.75% 10/1/11 (Pre-Refunded to 10/1/10 @ 100) (e) | 170 | 182 | ||
Honolulu City & County Gen. Oblig. Series B, 8% 10/1/09 | 26,940 | 29,902 | ||
37,704 | ||||
Illinois - 9.9% | ||||
Chicago Board of Ed. (Chicago School Reform Proj.) 6.75% 12/1/10 (AMBAC Insured) | 4,160 | 4,616 | ||
Chicago Gen. Oblig. Series A, 5.25% 1/1/12 (FSA Insured) | 1,000 | 1,068 | ||
Chicago Midway Arpt. Rev. Series B: | ||||
5% 1/1/10 (AMBAC Insured) | 1,225 | 1,270 | ||
5% 1/1/11 (AMBAC Insured) | 3,625 | 3,797 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series A: | ||||
5% 1/1/12 (MBIA Insured) | 1,145 | 1,211 | ||
5.5% 1/1/08 (AMBAC Insured) | 5,000 | 5,054 | ||
5.5% 1/1/10 (AMBAC Insured) (d) | 5,000 | 5,227 | ||
Chicago Park District: | ||||
Series B, 5% 1/1/11 (AMBAC Insured) | 5,750 | 6,027 | ||
Series C, 5% 1/1/11 (AMBAC Insured) | 2,515 | 2,636 | ||
Chicago School Fin. Auth. Series B, 5% 6/1/09 | 12,915 | 13,301 | ||
Chicago Tax Increment Rev. Series 2000 A, 0% 12/1/08 (AMBAC Insured) | 10,000 | 9,316 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev. (Fed. Transit Administration Section 5307 Formula Funds Proj.) Series A, 5.25% 6/1/10 (AMBAC Insured) | 4,835 | 5,074 | ||
Chicago Wastewtr. Transmission Rev. 5.5% 1/1/09 (FGIC Insured) | 2,975 | 3,079 | ||
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 3.85%, tender 5/1/08 (c)(d) | 2,200 | 2,180 | ||
Hodgkins Tax Increment Rev.: | ||||
5% 1/1/07 | 1,000 | 1,000 | ||
5% 1/1/09 | 1,805 | 1,840 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Illinois Dev. Fin. Auth. Gas Supply Rev. (The Peoples Gas Lt. & Coke Co. Proj.) Series 2003 B, 3.05%, tender 2/1/08 (AMBAC Insured) (c) | $ 6,100 | $ 6,043 | ||
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) Series 2004 C, 5.5% 10/1/10 | 1,900 | 2,008 | ||
Illinois Edl. Facilities Auth. Revs.: | ||||
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c) | 12,800 | 12,698 | ||
(Field Museum of Natural History Proj.) 4.05%, tender 11/1/11 (c) | 3,250 | 3,264 | ||
(Univ. of Chicago Proj.): | ||||
Series 2004 B1, 3.45%, tender 7/1/08 (c) | 6,100 | 6,077 | ||
Series A, 5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (e) | 2,640 | 2,827 | ||
Series B: | 3,895 | 3,884 | ||
3.1%, tender 7/1/07 (c)(e) | 5 | 5 | ||
Illinois Fin. Auth. Rev.: | ||||
(DePaul Univ. Proj.): | ||||
5% 10/1/07 | 1,225 | 1,234 | ||
5% 10/1/08 | 1,000 | 1,019 | ||
Series A, 5% 10/1/11 | 1,165 | 1,217 | ||
Illinois Gen. Oblig.: | ||||
First Series 2001, 5.25% 5/1/11 (FSA Insured) | 1,475 | 1,567 | ||
First Series: | ||||
5.375% 7/1/11 (MBIA Insured) | 6,745 | 7,217 | ||
5.5% 8/1/10 | 1,415 | 1,499 | ||
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (e) | 7,075 | 7,538 | ||
Series A, 5% 10/1/09 | 2,600 | 2,687 | ||
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (e) | 1,000 | 1,063 | ||
Illinois Health Facilities Auth. Rev. (Condell Med. Ctr. Proj.): | ||||
5% 5/15/07 | 500 | 501 | ||
5% 5/15/08 | 700 | 708 | ||
Kane & DeKalb Counties Cmnty. Unit School District #301 0% 12/1/10 (AMBAC Insured) | 2,000 | 1,716 | ||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 | 2,270 | 2,455 | ||
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) (e) | 1,600 | 1,747 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Kane, McHenry, Cook & DeKalb Counties Cmnty. Unit School District #300, Carpentersville 5.5% 12/1/13 (Pre-Refunded to 12/1/11 @ 100) (e) | $ 5,000 | $ 5,405 | ||
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11 | 2,365 | 2,477 | ||
Rosemont Gen. Oblig.: | ||||
Series 3, 0% 12/1/07 (FGIC Insured) | 625 | 605 | ||
Series A, 0% 12/1/11 (FGIC Insured) | 3,695 | 3,072 | ||
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Proj.) 5% 8/15/11 (AMBAC Insured) | 1,360 | 1,432 | ||
Will County School District #122 Series B, 0% 11/1/08 (FSA Insured) | 1,280 | 1,197 | ||
149,858 | ||||
Indiana - 3.7% | ||||
Carmel High School Bldg. Corp. 5% 1/10/11 (FSA Insured) | 1,000 | 1,049 | ||
Ctr. Grove 2000 Bldg. Corp.: | ||||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,785 | 1,923 | ||
5.5% 7/15/18 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,885 | 2,031 | ||
Hamilton Southeastern Consolidated School Bldg. Corp.: | ||||
Series A: | ||||
5% 1/10/10 (FSA Insured) | 1,750 | 1,816 | ||
5.25% 7/10/11 (FSA Insured) | 2,295 | 2,444 | ||
5.25% 1/10/12 (FSA Insured) | 1,355 | 1,451 | ||
5% 1/15/10 (FSA Insured) | 1,835 | 1,905 | ||
5% 1/15/11 (FSA Insured) | 1,910 | 2,004 | ||
5% 1/15/12 (FSA Insured) | 1,990 | 2,109 | ||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,855 | 1,999 | ||
Indiana Univ. Student Fee Revs. Series H, 0% 8/1/09 (AMBAC Insured) | 3,875 | 3,522 | ||
Indianapolis Resource Recovery Rev. (Ogden Martin Sys., Inc. Proj.) 6.75% 12/1/07 (AMBAC Insured) | 3,000 | 3,068 | ||
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured) | 1,405 | 1,449 | ||
Logansport High School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,000 | 1,054 | ||
5.25% 7/15/11 (MBIA Insured) | 1,020 | 1,082 | ||
5.25% 1/15/12 (MBIA Insured) | 1,045 | 1,114 | ||
5.25% 7/15/12 (MBIA Insured) | 1,075 | 1,153 | ||
Mount Vernon of Hancock County Multi-School Corp. Series B: | ||||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,605 | 1,729 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Indiana - continued | ||||
Mount Vernon of Hancock County Multi-School Corp. Series B: - continued | ||||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (e) | $ 1,695 | $ 1,826 | ||
Muncie School Bldg. Corp. 5.25% 7/10/12 (MBIA Insured) | 1,585 | 1,707 | ||
New Albany Floyd County Independent School Bldg. Corp. 5% 1/15/11 (FSA Insured) | 1,000 | 1,049 | ||
Rockport Poll. Cont. Rev.: | ||||
(AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (c) | 1,600 | 1,628 | ||
4.9%, tender 6/1/07 (c) | 4,005 | 4,019 | ||
Saint Joseph County Ind. Edl. Facilities Rev. (Univ. of Notre Dame Du Lac Proj.) 2.5%, tender 12/3/07 (c) | 10,000 | 9,882 | ||
West Clark 2000 School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,065 | 1,125 | ||
5.25% 7/15/11 (MBIA Insured) | 1,125 | 1,196 | ||
5.25% 1/15/12 (MBIA Insured) | 1,150 | 1,229 | ||
56,563 | ||||
Kansas - 0.2% | ||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series A, 4.75%, tender 10/1/07 (c) | 2,400 | 2,416 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L: | ||||
5.25% 11/15/10 | 545 | 570 | ||
5.25% 11/15/12 | 680 | 722 | ||
3,708 | ||||
Kentucky - 0.2% | ||||
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (d) | 1,185 | 1,213 | ||
Owensboro Elec. Lt. & Pwr. Rev. Series B, 0% 1/1/09 (AMBAC Insured) | 2,000 | 1,854 | ||
3,067 | ||||
Louisiana - 0.5% | ||||
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. Series B, 5% 2/1/12 (AMBAC Insured) | 1,000 | 1,059 | ||
Ernest N. Morial-New Orleans Exhibit Hall Auth. Spl. Tax Series A, 5.25% 7/15/11 (AMBAC Insured) | 2,060 | 2,192 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Louisiana - continued | ||||
Louisiana Military Dept. 5% 8/1/10 | $ 1,530 | $ 1,577 | ||
Louisiana Offshore Term. Auth. Deepwater Port Rev. (LOOP LLC Proj.) Series 2003 D, 4%, tender 9/1/08 (c) | 2,700 | 2,708 | ||
7,536 | ||||
Maryland - 0.1% | ||||
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured) | 1,535 | 1,610 | ||
Massachusetts - 3.3% | ||||
Massachusetts Bay Trans. Auth. Series A, 7% 3/1/09 | 6,880 | 7,355 | ||
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. Series A, 5% 1/1/11 | 1,000 | 1,044 | ||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C, 5.875% 8/1/08 | 1,630 | 1,671 | ||
Massachusetts Fed. Hwy.: | ||||
Series 2000 A, 5.75% 6/15/13 | 3,000 | 3,227 | ||
Series B, 5.125% 12/15/14 (Pre-Refunded to 12/15/08 @ 101) (e) | 2,775 | 2,874 | ||
Massachusetts Gen. Oblig.: | ||||
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (e) | 2,570 | 2,717 | ||
Series 2000 A, 6% 2/1/10 | 2,500 | 2,667 | ||
Series 2001 A, 5.5% 1/1/11 | 5,000 | 5,331 | ||
Series 2003 C, 5.5% 10/1/10 (MBIA Insured) | 1,130 | 1,203 | ||
Series C: | ||||
5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (e) | 2,495 | 2,690 | ||
5.5% 11/1/10 (FSA Insured) | 10,000 | 10,662 | ||
Massachusetts Health & Edl. Facilities Auth. Rev. (Berkshire Health Sys., Inc. Proj.) Series F, 5% 10/1/08 | 2,720 | 2,780 | ||
Massachusetts Port Auth. Spl. Facilities Rev. | 1,000 | 1,057 | ||
Massachusetts Wtr. Resources Auth. Series A, 5.75% 8/1/39 (Pre-Refunded to 8/1/10 @ 101) (e) | 5,000 | 5,389 | ||
50,667 | ||||
Michigan - 2.0% | ||||
Chippewa Valley Schools 5% 5/1/08 | 1,260 | 1,283 | ||
Detroit City School District Series A, 5.5% 5/1/11 (FSA Insured) | 1,200 | 1,287 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Michigan - continued | ||||
Detroit Gen. Oblig. 5% 4/1/09 (MBIA Insured) | $ 10,620 | $ 10,916 | ||
Detroit Swr. Disp. Rev.: | ||||
Series A, 5.75% 7/1/26 (Pre-Refunded to 1/1/10 @ 101) (e) | 2,000 | 2,133 | ||
4.191% 7/1/32 (FSA Insured) (c) | 4,200 | 4,206 | ||
Hazel Park School District 5% 5/1/08 | 1,275 | 1,298 | ||
Livonia Pub. School District Series II, 0% 5/1/21 (FGIC Insured) (Pre-Refunded to 5/1/07 @ 39.31) (e) | 8,000 | 3,110 | ||
Michigan Bldg. Auth. Rev. (Facilities Prog.) Series I, 5.5% 10/15/09 | 2,705 | 2,834 | ||
Troy School District 5% 5/1/11 (MBIA Insured) | 1,000 | 1,053 | ||
Wayne County Cmnty. College (College Facilities Impt. Proj.) 5.25% 7/1/09 (FGIC Insured) | 1,220 | 1,266 | ||
Wayne-Westland Cmnty. Schools 5% 5/1/10 | 1,225 | 1,276 | ||
30,662 | ||||
Minnesota - 0.3% | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): | ||||
5.25% 12/1/08 | 1,200 | 1,229 | ||
5.25% 12/1/10 | 500 | 523 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.): | ||||
5% 5/15/09 | 250 | 256 | ||
5% 5/15/10 | 200 | 206 | ||
5% 5/15/11 | 300 | 311 | ||
Saint Paul Port Auth. Lease Rev. (HealthEast Midway Campus Proj.) Series 2003 A, 5% 5/1/10 | 555 | 555 | ||
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured) | 940 | 989 | ||
4,069 | ||||
Mississippi - 0.2% | ||||
Mississippi Bus. Fin. Corp. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.4%, tender 3/1/11 (c)(d) | 1,100 | 1,103 | ||
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (d) | 1,190 | 1,213 | ||
Mississippi Hosp. Equip. & Facilities Auth. (South Central Reg'l. Med. Ctr. Proj.) 5% 12/1/10 | 1,240 | 1,281 | ||
3,597 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Missouri - 0.7% | ||||
Bi-State Dev. Agcy. Rev. 3.95%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | $ 6,600 | $ 6,641 | ||
Fenton Tax Increment Rev. (Gravois Bluffs Redev. Proj.) 5% 4/1/11 | 1,430 | 1,478 | ||
Kansas City School District Bldg. Corp. Rev. (School District Elementary School Proj.) Series B, 5% 2/1/11 (FGIC Insured) | 1,850 | 1,942 | ||
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) (e) | 1,050 | 1,152 | ||
11,213 | ||||
Montana - 0.3% | ||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (c) | 4,000 | 4,086 | ||
Nevada - 3.1% | ||||
Clark County Arpt. Rev.: | ||||
Series B1, 5% 7/1/08 (d) | 9,000 | 9,167 | ||
Series C: | ||||
5% 7/1/08 (AMBAC Insured) (d) | 2,215 | 2,256 | ||
5% 7/1/09 (AMBAC Insured) (d) | 2,700 | 2,769 | ||
5% 7/1/10 (AMBAC Insured) (d) | 1,225 | 1,267 | ||
5% 7/1/11 (AMBAC Insured) (d) | 1,790 | 1,870 | ||
Clark County Hwy. Impt. Rev. (Motor Vehicle Fuel Tax) 5% 7/1/11 (AMBAC Insured) | 3,230 | 3,400 | ||
Clark County School District: | ||||
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (e) | 1,600 | 1,709 | ||
Series C, 5% 6/15/10 (MBIA Insured) | 1,075 | 1,120 | ||
Series D, 5% 6/15/09 (MBIA Insured) | 13,890 | 14,312 | ||
Series F, 5.375% 6/15/11 (FSA Insured) | 4,090 | 4,365 | ||
Henderson Health Care Facility Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08 | 1,100 | 1,118 | ||
Lyon Co. School District Gen. Oblig. 5% 6/1/09 | 695 | 716 | ||
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured) | 2,410 | 2,509 | ||
46,578 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New Hampshire - 0.3% | ||||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev.: | ||||
(United Illumination Co.) Series A, 3.65%, tender 2/1/10 (AMBAC Insured) (c)(d) | $ 2,500 | $ 2,461 | ||
3.5%, tender 2/1/09 (c)(d) | 2,000 | 1,977 | ||
4,438 | ||||
New Jersey - 6.2% | ||||
Camden County Impt. Auth. Rev. (Cooper Health Sys. Obligated Group Proj.) Series B, 5.25% 2/15/09 | 1,250 | 1,276 | ||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev. 5% 1/1/09 (AMBAC Insured) | 1,000 | 1,024 | ||
Elizabeth Gen. Oblig. 5.25% 8/15/09 (MBIA Insured) | 1,225 | 1,274 | ||
Garden State Preservation Trust Open Space & Farmland Preservation Series B: | ||||
6.25% 11/1/09 (MBIA Insured) | 4,000 | 4,267 | ||
6.375% 11/1/11 (MBIA Insured) | 7,470 | 8,335 | ||
New Jersey Econ. Dev. Auth. Rev. 5% 6/15/07 | 7,500 | 7,538 | ||
New Jersey Tpk. Auth. Tpk. Rev. Series A: | ||||
5.75% 1/1/18 (Pre-Refunded to 1/1/10 @ 100) (e) | 3,215 | 3,408 | ||
6% 1/1/11 (MBIA Insured) | 17,180 | 18,667 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series B: | ||||
5.25% 12/15/10 (FGIC Insured) | 4,550 | 4,808 | ||
6.5% 6/15/11 (MBIA Insured) | 5,000 | 5,565 | ||
Series C, 5.5% 12/15/10 (FSA Insured) | 25,000 | 26,648 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (e) | 7,000 | 7,407 | ||
Tobacco Settlement Fing. Corp. 4.375% 6/1/19 | 4,065 | 4,066 | ||
94,283 | ||||
New Jersey/Pennsylvania - 0.3% | ||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5% 7/1/09 | 5,170 | 5,319 | ||
New Mexico - 0.1% | ||||
Farmington Poll. Cont. Rev. Series B, 3.55%, tender 4/1/10 (FGIC Insured) (c) | 1,900 | 1,885 | ||
New York - 17.0% | ||||
Erie County Tobacco Asset Securitization Corp. Series A, 6.25% 7/15/40 (Pre-Refunded to 7/15/10 @ 101) (e) | 8,810 | 9,634 | ||
Grand Central District Mgmt. Assoc., Inc.: | ||||
5% 1/1/10 | 1,200 | 1,243 | ||
5% 1/1/12 | 1,175 | 1,239 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
Metropolitan Trans. Auth. Commuter Facilities Rev. Series A, 5.375% 7/1/09 (Escrowed to Maturity) (e) | $ 3,635 | $ 3,787 | ||
Metropolitan Trans. Auth. Rev. Series 2005 C: | ||||
5% 11/15/10 | 2,000 | 2,093 | ||
5% 11/15/11 | 2,750 | 2,906 | ||
New York City Gen. Oblig.: | ||||
Series 1996 B, 6.5% 8/15/09 | 3,425 | 3,656 | ||
Series 1997 H, 6% 8/1/12 (FGIC Insured) | 1,300 | 1,449 | ||
Series 2000 A, 6.5% 5/15/11 | 370 | 405 | ||
Series 2002 G, 5.5% 8/1/10 | 2,720 | 2,879 | ||
Series 2003 F, 5.5% 12/15/11 | 4,305 | 4,642 | ||
Series 2004 G, 5% 8/1/09 | 8,000 | 8,249 | ||
Series 2005 C, 5% 8/1/12 | 19,770 | 20,992 | ||
Series 2005 D, 5% 8/1/12 | 4,925 | 5,229 | ||
Series 2005 G, 5.625% 8/1/13 (MBIA Insured) | 5,075 | 5,555 | ||
Series 2005 K: | ||||
5% 8/1/11 | 7,120 | 7,491 | ||
5% 8/1/12 | 4,360 | 4,629 | ||
Series 2005 O, 5% 6/1/12 | 7,500 | 7,951 | ||
Series A, 5.25% 11/1/14 (MBIA Insured) | 600 | 647 | ||
Series B, 5.75% 8/1/14 | 1,000 | 1,100 | ||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 1,000 | 1,068 | ||
Subseries 2005 F1, 5% 9/1/15 | 3,560 | 3,848 | ||
New York City Indl. Dev. Agcy. Spl. Facilities Rev. (Terminal One Group Assoc. Proj.) 5% 1/1/07 (d) | 1,700 | 1,700 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. 6% 6/15/33 (MBIA Insured) (Pre-Refunded to 6/15/10 @ 101) (e) | 10,000 | 10,809 | ||
New York Counties Tobacco Trust I Series B, 6.5% 6/1/35 (Pre-Refunded to 6/1/10 @ 101) (e) | 5,900 | 6,502 | ||
New York State Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.): | ||||
Series A: | ||||
5.75% 7/1/13 | 3,500 | 3,795 | ||
5.75% 7/1/13 (AMBAC Insured) | 1,000 | 1,087 | ||
Series C, 7.5% 7/1/10 | 2,565 | 2,733 | ||
Series B, 5.25%, tender 5/15/12 (c) | 13,000 | 13,893 | ||
New York State Urban Dev. Corp. Rev. 5% 1/1/12 | 5,000 | 5,277 | ||
New York Transitional Fin. Auth. Rev.: | ||||
Series 2003 E, 5% 2/1/09 | 2,035 | 2,091 | ||
Series A: | ||||
5.5% 11/1/26 (a) | 3,500 | 3,758 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
New York Transitional Fin. Auth. Rev.: - continued | ||||
Series A: | ||||
6% 11/1/28 (a) | $ 44,300 | $ 48,527 | ||
Series B, 5.25% 2/1/29 (a) | 3,100 | 3,267 | ||
Series E, 4.5% 2/1/07 | 245 | 245 | ||
Tobacco Settlement Asset Securitization Corp. Series 1: | ||||
5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (e) | 6,760 | 7,196 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (e) | 1,200 | 1,280 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (e) | 2,490 | 2,655 | ||
6% 7/15/20 (Pre-Refunded to 7/15/09 @ 101) (e) | 2,280 | 2,431 | ||
6% 7/15/21 (Pre-Refunded to 7/15/09 @ 101) (e) | 2,310 | 2,463 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2004 B1, 5% 6/1/09 | 3,800 | 3,906 | ||
Series A1: | ||||
5% 6/1/10 | 1,875 | 1,947 | ||
5.25% 6/1/12 | 5,000 | 5,004 | ||
5.25% 6/1/13 | 17,500 | 17,880 | ||
5.5% 6/1/14 | 2,700 | 2,812 | ||
Series C1: | ||||
5.5% 6/1/15 | 1,300 | 1,373 | ||
5.5% 6/1/17 | 4,200 | 4,484 | ||
257,807 | ||||
New York & New Jersey - 0.6% | ||||
Port Auth. of New York & New Jersey: | ||||
124th Series, 5% 8/1/13 (FGIC Insured) (d) | 1,200 | 1,230 | ||
127th Series, 5% 12/15/08 (AMBAC Insured) (d) | 3,510 | 3,598 | ||
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (MBIA Insured) (d) | 4,100 | 4,654 | ||
9,482 | ||||
North Carolina - 0.9% | ||||
Charlotte Ctfs. of Prtn. (FY 2004 Equip. Acquisition Proj.) Series 2004 C, 4% 3/1/08 | 4,940 | 4,959 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | ||||
Series 1993 B, 7% 1/1/08 (MBIA Insured) | 600 | 620 | ||
Series A, 5.5% 1/1/10 | 3,000 | 3,127 | ||
Series C, 5% 1/1/08 | 1,190 | 1,202 | ||
Series D, 5.375% 1/1/10 | 3,715 | 3,860 | ||
13,768 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
North Dakota - 0.1% | ||||
Ward County Health Care Facility Rev. 5% 7/1/10 | $ 1,595 | $ 1,645 | ||
Ohio - 1.6% | ||||
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A, 5% 1/1/11 | 1,000 | 1,034 | ||
Cleveland Pub. Pwr. Sys. Rev.: | ||||
Series A, 0% 11/15/09 (MBIA Insured) | 1,200 | 1,077 | ||
0% 11/15/09 (Escrowed to Maturity) (e) | 1,050 | 944 | ||
Franklin County Rev. (Online Computer Library Ctr., Inc. Proj.) 5% 4/15/07 | 1,960 | 1,965 | ||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/07 | 1,420 | 1,422 | ||
Ohio Air Quality Dev. Auth. Rev. Series 2002 A, 4.2%, tender 1/2/07 (c) | 1,000 | 1,000 | ||
Ohio Gen. Oblig.: | ||||
Series 2000 E, 5.5% 5/1/09 | 1,905 | 1,983 | ||
Series 2003 D, 2.45%, tender 9/14/07 (c) | 12,300 | 12,179 | ||
Univ. of Cincinnati Gen. Receipts Series A, 5.5% 6/1/09 (FGIC Insured) | 2,000 | 2,085 | ||
23,689 | ||||
Oklahoma - 0.4% | ||||
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (e) | 1,000 | 827 | ||
Tulsa County Indl. Auth. Cap. Impts. Rev. Series B, 5.25% 1/1/09 (FSA Insured) | 5,245 | 5,406 | ||
6,233 | ||||
Oregon - 0.5% | ||||
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured) | 1,210 | 1,262 | ||
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B: | ||||
5% 5/1/09 (FSA Insured) | 600 | 618 | ||
5% 5/1/11 (FSA Insured) | 1,000 | 1,053 | ||
Tri-County Metropolitan Trans. District Rev. 5% 5/1/11 (MBIA Insured) | 5,000 | 5,263 | ||
8,196 | ||||
Pennsylvania - 4.0% | ||||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (MBIA Insured) (d) | 1,300 | 1,403 | ||
Allegheny County Indl. Dev. Auth. Rev. (Watson Institute Ed. Ctr. Proj.) 3.375%, tender 5/1/08, LOC PNC Bank NA, Pittsburgh (c) | 4,500 | 4,470 | ||
Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured) | 1,495 | 1,635 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Pennsylvania - continued | ||||
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.) Series B: | ||||
5% 12/15/09 | $ 2,565 | $ 2,631 | ||
5% 12/15/11 | 2,835 | 2,948 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(d) | 10,000 | 9,867 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(d) | 2,100 | 2,101 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Pennsylvania Health Sys. Proj.) Series A, 5% 8/15/08 | 2,000 | 2,042 | ||
(UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09 | 1,750 | 1,818 | ||
Series B, 5.25% 9/1/08 | 5,860 | 6,014 | ||
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured) | 2,750 | 2,893 | ||
Philadelphia Gas Works Rev. (1975 Gen. Ordinance Proj.) 17th Series, 5% 7/1/08 (FSA Insured) | 7,410 | 7,551 | ||
Philadelphia Muni. Auth. Rev.: | ||||
Series A, 5% 5/15/08 (FSA Insured) | 5,000 | 5,090 | ||
Series B, 5.25% 11/15/11 (FSA Insured) | 3,400 | 3,622 | ||
Philadelphia School District: | ||||
Series 2005 D, 5.25% 6/1/12 (FSA Insured) | 1,465 | 1,569 | ||
Series B, 5% 4/1/11 (AMBAC Insured) | 2,160 | 2,267 | ||
Pittsburgh School District Series A, 5% 9/1/09 | 1,600 | 1,644 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) (e) | 2,355 | 1,906 | ||
61,471 | ||||
Puerto Rico - 1.4% | ||||
Puerto Rico Convention Ctr. District Auth. Hotel Occupancy Tax Rev. Series 2006 A, 5% 7/1/10 | 2,000 | 2,069 | ||
Puerto Rico Govt. Dev. Bank 5% 12/1/10 | 8,000 | 8,316 | ||
Univ. of Puerto Rico: | ||||
Series 06P, 5% 6/1/11 | 5,760 | 6,019 | ||
5% 6/1/11 | 4,825 | 5,042 | ||
21,446 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Rhode Island - 0.3% | ||||
Providence Spl. Oblig. Series 2005 E: | ||||
4% 6/1/08 (Radian Asset Assurance Ltd. Insured) | $ 1,000 | $ 1,003 | ||
5% 6/1/09 (Radian Asset Assurance Ltd. Insured) | 1,315 | 1,347 | ||
5% 6/1/10 (Radian Asset Assurance Ltd. Insured) | 1,180 | 1,217 | ||
Rhode Island Health & Edl. Bldg. Corp. Rev. (Johnson & Wales Univ. Proj.) 5% 4/1/08 (XL Cap. Assurance, Inc. Insured) | 1,700 | 1,728 | ||
5,295 | ||||
South Carolina - 1.2% | ||||
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A: | ||||
5% 8/15/07 | 1,700 | 1,711 | ||
5% 8/15/08 | 1,690 | 1,711 | ||
Greenville County Pub. Facilities Corp. Ctfs. of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 | 1,450 | 1,509 | ||
Greenville County School District Installment Purp. Rev. 5% 12/1/10 | 1,455 | 1,519 | ||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5% 12/1/09 | 550 | 568 | ||
Piedmont Muni. Pwr. Agcy. Elec. Rev. 5.6% 1/1/09 (MBIA Insured) | 2,345 | 2,433 | ||
Rock Hill Util. Sys. Rev. Series 2003 A, 5% 1/1/09 | 1,945 | 1,997 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2005 B, 5% 1/1/10 (MBIA Insured) | 3,000 | 3,109 | ||
Series A, 5.5% 1/1/11 (MBIA Insured) | 3,000 | 3,179 | ||
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured) | 1,000 | 1,030 | ||
18,766 | ||||
Tennessee - 1.4% | ||||
Clarksville Natural Gas Acquisition Corp. Gas Rev. 5% 12/15/09 | 7,500 | 7,730 | ||
Elizabethton Health & Edl. Facilities Board Rev. | 2,005 | 2,184 | ||
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured) | 2,000 | 2,082 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A: | ||||
4.5% 9/1/08 (MBIA Insured) | 1,620 | 1,642 | ||
4.5% 9/1/09 (MBIA Insured) | 1,685 | 1,720 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Tennessee - continued | ||||
Metropolitan Govt. Nashville & Series A, 5.25% 10/15/09 | $ 3,795 | $ 3,952 | ||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured) | 1,200 | 1,238 | ||
20,548 | ||||
Texas - 11.3% | ||||
Alief Independent School District Series 2004 B, 5% 2/15/10 | 1,500 | 1,558 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B: | ||||
6% 1/1/12 | 500 | 529 | ||
6% 1/1/13 | 1,270 | 1,355 | ||
6% 1/1/14 | 1,420 | 1,527 | ||
Austin Util. Sys. Rev.: | ||||
Series 1992 A, 0% 11/15/09 (MBIA Insured) | 5,130 | 4,599 | ||
Series A, 0% 11/15/10 (MBIA Insured) | 5,300 | 4,574 | ||
Bexar County Series A: | ||||
5% 6/15/09 (FSA Insured) | 2,615 | 2,698 | ||
5% 6/15/10 (FSA Insured) | 1,000 | 1,043 | ||
Birdville Independent School District 5% 2/15/10 | 1,300 | 1,350 | ||
Brownsville Independent School District 5% 8/15/11 | 1,430 | 1,509 | ||
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured) | 1,500 | 1,610 | ||
College Station Independent School District 5% 2/15/10 | 1,000 | 1,039 | ||
Conroe Independent School District Lot B, 0% 2/15/08 | 3,000 | 2,879 | ||
Del Valle Independent School District 5.5% 2/1/09 | 1,205 | 1,248 | ||
Denton County Gen. Oblig. 5% 7/15/11 (FSA Insured) | 3,065 | 3,232 | ||
Fort Bend Independent School District 5%, tender 8/15/09 (c) | 5,000 | 5,149 | ||
Fort Worth Independent School District 5% 2/15/12 | 1,500 | 1,591 | ||
Frisco Gen. Oblig. Series 2003 A, 5% 2/15/10 | 1,710 | 1,776 | ||
Harris County Health Facilities Dev. Corp. Rev. | 3,710 | 3,839 | ||
Houston Cmnty. College Sys. Rev.: | ||||
5.25% 4/15/11 (FSA Insured) | 3,030 | 3,212 | ||
5.25% 4/15/12 (FSA Insured) | 2,000 | 2,144 | ||
Houston Util. Sys. Rev. Series A: | ||||
5.25% 5/15/10 (MBIA Insured) | 2,835 | 2,973 | ||
5.25% 11/15/11 (FSA Insured) | 4,430 | 4,729 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Katy Independent School District Series A, 5.25% 2/15/12 | $ 2,000 | $ 2,144 | ||
Lower Colorado River Auth. Rev.: | ||||
0% 1/1/09 (Escrowed to Maturity) (e) | 3,000 | 2,785 | ||
5.25% 1/1/15 (Pre-Refunded to 1/1/11 @ 100) (e) | 5,000 | 5,289 | ||
Lubbock Gen. Oblig.: | ||||
(Wtrwks. Sys. Surplus Proj.) 5% 2/15/11 (FSA Insured) | 2,465 | 2,588 | ||
5% 2/15/09 (MBIA Insured) | 1,615 | 1,659 | ||
5% 2/15/10 (MBIA Insured) | 1,845 | 1,917 | ||
Lubbock Health Facilities Dev. Corp. Rev. (Carillon, Inc. Proj.) Series A, 6.5% 7/1/29 (Pre-Refunded to 7/1/09 @ 102) (e) | 4,800 | 5,203 | ||
Magnolia Independent School District 8% 8/15/11 (FGIC Insured) | 1,210 | 1,427 | ||
Mesquite Independent School District 3.65%, tender 12/1/08 (Liquidity Facility JPMorgan Chase Bank) (c)(e) | 2,500 | 2,500 | ||
Montgomery County Gen. Oblig. Series B, 5%, tender 9/1/10 (FSA Insured) (c) | 1,300 | 1,352 | ||
North East Texas Independent School District 7% 2/1/11 (Pre-Refunded to 2/1/10 @ 100) (e) | 3,600 | 3,945 | ||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C: | ||||
5% 1/1/09 (FSA Insured) | 2,000 | 2,051 | ||
5%, tender 7/1/08 (c)(e) | 45 | 46 | ||
5%, tender 7/1/08 (FSA Insured) (c) | 2,605 | 2,653 | ||
Rockwall Independent School District 5% 2/15/09 | 4,690 | 4,815 | ||
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series A, 5.5%, tender 11/1/11 (c) | 1,000 | 1,048 | ||
San Angelo Wtrwks. & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured) | 1,630 | 1,694 | ||
San Antonio Elec. & Gas Sys. Rev.: | ||||
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (e) | 5,000 | 5,300 | ||
Series B, 0% 2/1/09 (Escrowed to Maturity) (e) | 2,500 | 2,314 | ||
San Antonio Independent School District 7% 8/15/08 | 5,000 | 5,262 | ||
San Antonio Muni. Drainage Util. Sys. Rev. 5.25% 2/1/12 (MBIA Insured) | 1,545 | 1,653 | ||
San Antonio Wtr. Sys. Rev. 5% 5/15/10 (FGIC Insured) | 1,020 | 1,062 | ||
Socorro Independent School District 5% 8/15/09 | 2,070 | 2,140 | ||
Spring Branch Independent School District Series 2001, 5.375% 2/1/14 | 2,790 | 2,964 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Texas Gen. Oblig.: | ||||
(College Student Ln. Prog.) 5% 8/1/11 (d) | $ 3,000 | $ 3,083 | ||
Series A, 6% 10/1/08 (MBIA Insured) | 10,750 | 11,179 | ||
Series C: | ||||
0% 4/1/08 (Escrowed to Maturity) (e) | 3,100 | 2,963 | ||
0% 4/1/09 (Escrowed to Maturity) (e) | 2,320 | 2,134 | ||
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Proj.) Series A, 5% 2/1/10 | 1,055 | 1,094 | ||
Texas Tech Univ. Revs. Ninth Series, 5% 2/15/11 (AMBAC Insured) | 1,250 | 1,310 | ||
Travis County Gen. Oblig. 5.25% 3/1/12 | 4,125 | 4,423 | ||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.) 5% 7/1/07 | 1,000 | 1,004 | ||
Univ. of Texas Univ. Revs.: | ||||
(Fing. Sys. Proj.) Series A, 5.5% 8/15/09 | 1,115 | 1,165 | ||
Series B: | ||||
5% 8/15/09 | 11,255 | 11,619 | ||
5.25% 8/15/11 | 5,025 | 5,352 | ||
Wichita Falls Independent School District 0% 2/1/10 | 2,325 | 2,065 | ||
Ysleta Independent School District 0% 8/15/09 | 4,065 | 3,675 | ||
171,040 | ||||
Utah - 1.4% | ||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | ||||
0% 10/1/11 (AMBAC Insured) | 3,800 | 3,157 | ||
0% 10/1/12 (AMBAC Insured) | 3,800 | 3,029 | ||
0% 10/1/13 (AMBAC Insured) | 3,760 | 2,871 | ||
Utah Bldg. Ownership Auth. Lease Rev. (State Facilities Master Lease Prog.) Series A, 5% 5/15/11 | 1,700 | 1,791 | ||
Utah Gen. Oblig. Series 2006 B, 5.375% 7/1/10 | 9,475 | 10,022 | ||
20,870 | ||||
Virginia - 0.1% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.05%, tender 4/1/08 (c)(d) | 1,600 | 1,590 | ||
Washington - 1.7% | ||||
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured) | 1,190 | 1,252 | ||
Clark County Pub. Util. District #1 Elec. Rev.: | ||||
Series B, 5.25% 1/1/09 (FSA Insured) | 1,595 | 1,643 | ||
5% 1/1/11 (MBIA Insured) | 1,680 | 1,759 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Washington - continued | ||||
Clark County Pub. Util. District #1 Elec. Rev.: - continued | ||||
5.25% 1/1/11 (FSA Insured) | $ 1,935 | $ 2,044 | ||
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured) | 1,740 | 1,830 | ||
Pierce County Gen. Oblig. 5.75% 8/1/13 (Pre-Refunded to 8/1/10 @ 100) (e) | 1,155 | 1,234 | ||
Port of Seattle Rev. Series D, 5.75% 11/1/15 (FGIC Insured) (d) | 3,640 | 3,974 | ||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/09 (FGIC Insured) | 1,000 | 1,019 | ||
Snohomish County School District #2, Everett: | ||||
5% 6/1/09 (FSA Insured) | 1,045 | 1,076 | ||
5% 6/1/10 (FSA Insured) | 1,000 | 1,041 | ||
Vancouver Wtr. & Swr. Rev. 5.25% 6/1/11 (FSA Insured) | 1,000 | 1,062 | ||
Washington Gen. Oblig. Series A: | ||||
5% 7/1/11 (FGIC Insured) | 1,000 | 1,056 | ||
5.5% 7/1/11 (Pre-Refunded to 7/1/10 @ 100) (e) | 3,500 | 3,705 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev. Series A, 5.75% 7/1/08 | 3,000 | 3,086 | ||
25,781 | ||||
Wisconsin - 0.9% | ||||
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured) | 3,370 | 2,892 | ||
Wisconsin Gen. Oblig. Series 1, 5% 5/1/10 | 2,500 | 2,605 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Marshfield Clinic Proj.): | ||||
Series 2006 A, 5% 2/15/13 | 875 | 909 | ||
Series B, 6.25% 2/15/10 | 1,015 | 1,078 | ||
(Wheaton Franciscan Services Proj.): | ||||
5% 8/15/11 | 1,315 | 1,364 | ||
5.75% 8/15/11 | 1,000 | 1,069 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Wisconsin - continued | ||||
Wisconsin Health & Edl. Facilities Auth. Rev.: - continued | ||||
(Wheaton Franciscan Svcs., Inc. Proj.) Series A: | ||||
5% 8/15/09 | $ 1,765 | $ 1,805 | ||
5% 8/15/10 | 1,870 | 1,928 | ||
13,650 |
TOTAL INVESTMENT PORTFOLIO - 99.3% (Cost $1,516,025) | 1,509,029 | ||
NET OTHER ASSETS - 0.7% | 10,886 | ||
NET ASSETS - 100% | $ 1,519,915 |
Legend |
(a) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Security collateralized by an amount sufficient to pay interest and principal. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,721,000 or 0.6% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 8,607 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 41.0% |
Escrowed/Pre-Refunded | 13.4% |
Special Tax | 9.7% |
Electric Utilities | 8.6% |
Transportation | 7.2% |
Health Care | 6.8% |
Education | 6.3% |
Others* (individually less than 5%) | 7.0% |
100.0% |
*Includes net other assets |
Income Tax Information |
At December 31, 2006, the fund had a capital loss carryforward of approximately $5,570,000 of which $699,000 and $4,871,000 will expire on December 31, 2013 and 2014, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | December 31, 2006 | |
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $1,516,025) | $ 1,509,029 | |
Receivable for fund shares sold | 1,206 | |
Interest receivable | 20,620 | |
Prepaid expenses | 8 | |
Other receivables | 85 | |
Total assets | 1,530,948 | |
Liabilities | ||
Payable to custodian bank | $ 288 | |
Payable for investments purchased on a delayed delivery basis | 6,173 | |
Payable for fund shares redeemed | 2,628 | |
Distributions payable | 1,134 | |
Accrued management fee | 471 | |
Distribution fees payable | 11 | |
Other affiliated payables | 280 | |
Other payables and accrued expenses | 48 | |
Total liabilities | 11,033 | |
Net Assets | $ 1,519,915 | |
Net Assets consist of: | ||
Paid in capital | $ 1,533,002 | |
Distributions in excess of net investment income | (2) | |
Accumulated undistributed net realized gain (loss) on investments | (6,089) | |
Net unrealized appreciation (depreciation) on investments | (6,996) | |
Net Assets | $ 1,519,915 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2006 | |
Calculation of Maximum Offering Price Class A: | $ 10.21 | |
Maximum offering price per share (100/96.25 of $10.21) | $ 10.61 | |
Class T: | $ 10.19 | |
Maximum offering price per share (100/97.25 of $10.19) | $ 10.48 | |
Class B: | $ 10.20 | |
Class C: | $ 10.19 | |
Short-Intermediate Municipal Income: | $ 10.19 | |
Institutional Class: | $ 10.20 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended December 31, 2006 | |
Investment Income | ||
Interest | $ 55,139 | |
Expenses | ||
Management fee | $ 5,964 | |
Transfer agent fees | 1,393 | |
Distribution fees | 158 | |
Accounting fees and expenses | 321 | |
Custodian fees and expenses | 25 | |
Independent trustees' compensation | 6 | |
Registration fees | 104 | |
Audit | 57 | |
Legal | 10 | |
Miscellaneous | 33 | |
Total expenses before reductions | 8,071 | |
Expense reductions | (1,341) | 6,730 |
Net investment income | 48,409 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (4,249) | |
Change in net unrealized appreciation (depreciation) on investment securities | 1,984 | |
Net gain (loss) | (2,265) | |
Net increase (decrease) in net assets resulting from operations | $ 46,144 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 48,409 | $ 51,345 |
Net realized gain (loss) | (4,249) | (1,840) |
Change in net unrealized appreciation (depreciation) | 1,984 | (29,976) |
Net increase (decrease) in net assets resulting | 46,144 | 19,529 |
Distributions to shareholders from net investment income | (48,409) | (51,341) |
Distributions to shareholders from net realized gain | - | (549) |
Total distributions | (48,409) | (51,890) |
Share transactions - net increase (decrease) | (188,103) | (147,427) |
Redemption fees | 13 | 25 |
Total increase (decrease) in net assets | (190,355) | (179,763) |
Net Assets | ||
Beginning of period | 1,710,270 | 1,890,033 |
End of period (including distributions in excess of net investment income of $2 and distributions in excess of net investment income of $3, respectively) | $ 1,519,915 | $ 1,710,270 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.21 | $ 10.39 | $ 10.50 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .292 | .268 | .250 | .115 |
Net realized and unrealized gain (loss) | (.001) | (.177) | (.090) | .071 |
Total from investment operations | .291 | .091 | .160 | .186 |
Distributions from net investment income | (.291) | (.268) | (.251) | (.111) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.291) | (.271) | (.270) | (.176) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.21 | $ 10.21 | $ 10.39 | $ 10.50 |
Total Return B, C, D | 2.89% | .89% | 1.55% | 1.78% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | .65% | .65% | .65% | .65% A |
Expenses net of fee waivers, if any | .65% | .65% | .65% | .65% A |
Expenses net of all reductions | .56% | .58% | .64% | .64% A |
Net investment income | 2.86% | 2.61% | 2.41% | 2.52% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 10 | $ 14 | $ 12 | $ 9 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.20 | $ 10.37 | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .281 | .257 | .238 | .110 |
Net realized and unrealized gain (loss) | (.011) | (.167) | (.089) | .050 |
Total from investment operations | .270 | .090 | .149 | .160 |
Distributions from net investment income | (.280) | (.257) | (.240) | (.105) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.280) | (.260) | (.259) | (.170) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 10.20 | $ 10.37 | $ 10.48 |
Total Return B, C, D | 2.69% | .88% | 1.44% | 1.54% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | .75% | .76% | .76% | .77% A |
Expenses net of fee waivers, if any | .75% | .76% | .76% | .77% A |
Expenses net of all reductions | .66% | .69% | .75% | .76% A |
Net investment income | 2.76% | 2.50% | 2.30% | 2.41% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 13 | $ 15 | $ 20 | $ 12 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.21 | $ 10.39 | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .215 | .190 | .172 | .081 |
Net realized and unrealized gain (loss) | (.012) | (.177) | (.080) | .059 |
Total from investment operations | .203 | .013 | .092 | .140 |
Distributions from net investment income | (.213) | (.190) | (.173) | (.075) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.213) | (.193) | (.192) | (.140) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.20 | $ 10.21 | $ 10.39 | $ 10.49 |
Total Return B, C, D | 2.02% | .13% | .89% | 1.34% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of fee waivers, if any | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of all reductions | 1.31% | 1.34% | 1.39% | 1.39% A |
Net investment income | 2.11% | 1.85% | 1.65% | 1.78% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 2 | $ 3 | $ 4 | $ 2 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .204 | .178 | .159 | .077 |
Net realized and unrealized gain (loss) | (.011) | (.176) | (.080) | .048 |
Total from investment operations | .193 | .002 | .079 | .125 |
Distributions from net investment income | (.203) | (.179) | (.160) | (.070) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.203) | (.182) | (.179) | (.135) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 |
Total Return B, C, D | 1.92% | .02% | .77% | 1.20% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of fee waivers, if any | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of all reductions | 1.41% | 1.45% | 1.51% | 1.49% A |
Net investment income | 2.01% | 1.74% | 1.53% | 1.67% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 7 | $ 10 | $ 11 | $ 8 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Short-Intermediate Municipal Income
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 | $ 10.27 |
Income from Investment Operations | |||||
Net investment income B | .307 | .284 | .268 | .283 | .336 |
Net realized and unrealized | (.010) | (.177) | (.080) | .030 | .317 |
Total from investment operations | .297 | .107 | .188 | .313 | .653 |
Distributions from net investment income | (.307) | (.284) | (.269) | (.283) | (.339) |
Distributions from net realized | - | (.003) | (.019) | (.070) | (.064) |
Total distributions | (.307) | (.287) | (.288) | (.353) | (.403) |
Redemption fees added to paid | - | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 |
Total Return A | 2.95% | 1.06% | 1.82% | 3.01% | 6.47% |
Ratios to Average Net Assets C | |||||
Expenses before reductions | .49% | .49% | .49% | .49% | .49% |
Expenses net of fee waivers, | .49% | .49% | .48% | .49% | .49% |
Expenses net of all reductions | .41% | .42% | .47% | .47% | .45% |
Net investment income | 3.01% | 2.77% | 2.57% | 2.69% | 3.23% |
Supplemental Data | |||||
Net assets, end of period | $ 1,485 | $ 1,665 | $ 1,841 | $ 1,843 | $ 1,683 |
Portfolio turnover rate | 28% | 27% | 45% | 34% | 38% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2006 | 2005 | 2004 | 2003 E |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.20 | $ 10.38 | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income D | .306 | .283 | .265 | .125 |
Net realized and unrealized gain (loss) | - G | (.176) | (.088) | .059 |
Total from investment operations | .306 | .107 | .177 | .184 |
Distributions from net investment income | (.306) | (.284) | (.268) | (.119) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.306) | (.287) | (.287) | (.184) |
Redemption fees added to paid in capital D, G | - | - | - | - |
Net asset value, end of period | $ 10.20 | $ 10.20 | $ 10.38 | $ 10.49 |
Total Return B, C | 3.05% | 1.05% | 1.71% | 1.77% |
Ratios to Average Net Assets F | ||||
Expenses before reductions | .50% | .49% | .49% | .48% A |
Expenses net of fee waivers, if any | .50% | .49% | .49% | .48% A |
Expenses net of all reductions | .41% | .42% | .48% | .47% A |
Net investment income | 3.01% | 2.77% | 2.57% | 2.69% A |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $ 3,357 | $ 2,625 | $ 1,253 | $ 414 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2006
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Short-Intermediate Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (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 Massachusetts business trust.
The Fund offers Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Annual Report
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to excise tax regulations.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 4,702 | |
Unrealized depreciation | (11,599) | |
Net unrealized appreciation (depreciation) | (6,897) | |
Capital loss carryforward | (5,570) | |
Cost for federal income tax purposes | $ 1,515,926 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, 2006 | December 31, 2005 | |
Tax-exempt Income | $ 48,409 | $ 51,341 |
Long-term Capital Gains | - | 549 |
Total | $ 48,409 | $ 51,890 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a
Annual Report
2. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally 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. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $443,566 and $621,528, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | .00% | .15% | $ 17 | $ - |
Class T | .00% | .25% | 35 | - |
Class B | .65% | .25% | 27 | 20 |
Class C | .75% | .25% | 79 | 16 |
$ 158 | $ 36 |
On January 18, 2007, the Board of Trustees approved an increase in Class A's Service fee from .15% to .25%, effective April 1, 2007.
Sales Load. FDC receives a front-end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, .75% to .50% for certain purchases of Class A shares (.25% prior to February 24, 2006) and .25% for certain purchases of Class T shares.
On January 18, 2007, the Board of Trustees approved a change in Class A's front-end sales charge. Effective April 1, 2007, FDC will receive a front-end sales charge of up to 2.75% for selling Class A shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 2 |
Class T | 1 |
Class B* | 12 |
Class C* | 3 |
$ 18 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the Fund's Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, except for Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. Citibank has also entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, with respect to Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC and FSC receive account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:
Amount | % of | |
Class A | $ 10 | .09 |
Class T | 13 | .09 |
Class B | 3 | .10 |
Class C | 8 | .11 |
Short-Intermediate Municipal Income | 1,356 | .09 |
Institutional Class | 3 | .09 |
$ 1,393 |
Citibank also has a sub-arrangement with FSC to maintain the Fund's accounting records. The fee is based on the level of average net assets for the month.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Expense Reductions.
Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $25 and $321, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | |
Class A | $ 7 |
Class T | 10 |
Class B | 2 |
Class C | 6 |
Short-Intermediate Municipal Income | 968 |
Institutional Class | 2 |
$ 995 |
7. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
During the period, the Fund's transfer agent, Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of Fidelity Management & Research Company, notified the Fund that the fund's books and records did not reflect a conversion of certain Class B to Class A shares upon their conversion date. Management has determined that this did not have a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. FIIOC will cause the books and records of the Fund to reflect a conversion of the relevant Class B shares to Class A and is in the process of determining the impact to affected shareholder accounts for purposes of its remediation.
Annual Report
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | ||
2006 | 2005 | |
From net investment income | ||
Class A | $ 317 | $ 313 |
Class T | 388 | 465 |
Class B | 63 | 68 |
Class C | 157 | 195 |
Short-Intermediate Municipal Income | 47,385 | 50,256 |
Institutional Class | 99 | 44 |
Total | $ 48,409 | $ 51,341 |
From net realized gain | ||
Class A | $ - | $ 4 |
Class T | - | 6 |
Class B | - | 1 |
Class C | - | 3 |
Short-Intermediate Municipal Income | - | 534 |
Institutional Class | - | 1 |
Total | $ - | $ 549 |
9. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2006 | 2005 | 2006 | 2005 | |
Class A | ||||
Shares sold | 246 | 684 | $ 2,516 | $ 6,996 |
Reinvestment of distributions | 25 | 23 | 253 | 238 |
Shares redeemed | (701) | (498) | (7,154) | (5,104) |
Net increase (decrease) | (430) | 209 | $ (4,385) | $ 2,130 |
Class T | ||||
Shares sold | 302 | 517 | $ 3,071 | $ 5,299 |
Reinvestment of distributions | 30 | 34 | 307 | 351 |
Shares redeemed | (564) | (1,028) | (5,739) | (10,531) |
Net increase (decrease) | (232) | (477) | $ (2,361) | $ (4,881) |
Class B | ||||
Shares sold | 27 | 65 | $ 268 | $ 661 |
Reinvestment of distributions | 4 | 4 | 45 | 44 |
Shares redeemed | (138) | (100) | (1,399) | (1,025) |
Net increase (decrease) | (107) | (31) | $ (1,086) | $ (320) |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
9. Share Transactions - continued
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2006 | 2005 | 2006 | 2005 | |
Class C | ||||
Shares sold | 162 | 438 | $ 1,641 | $ 4,492 |
Reinvestment of distributions | 9 | 11 | 96 | 116 |
Shares redeemed | (536) | (541) | (5,451) | (5,552) |
Net increase (decrease) | (365) | (92) | $ (3,714) | $ (944) |
Short-Intermediate Municipal Income | ||||
Shares sold | 38,594 | 46,854 | $ 392,661 | $ 481,284 |
Reinvestment of distributions | 3,345 | 3,476 | 34,020 | 35,648 |
Shares redeemed | (59,417) | (64,556) | (603,968) | (661,741) |
Net increase (decrease) | (17,478) | (14,226) | $ (177,287) | $ (144,809) |
Institutional Class | ||||
Shares sold | 258 | 194 | $ 2,623 | $ 1,994 |
Reinvestment of distributions | 5 | 2 | 47 | 18 |
Shares redeemed | (191) | (60) | (1,940) | (615) |
Net increase (decrease) | 72 | 136 | $ 730 | $ 1,397 |
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Short-Intermediate Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Short-Intermediate Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2006, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Short-Intermediate Municipal Income Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 13, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Each of the Trustees oversees 348 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (76) | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). | |
Robert L. Reynolds (54) | |
Year of Election or Appointment: 2003 Mr. Reynolds is President and a Director of FMR (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and FMR Co., Inc. (2005-present). Mr. Reynolds also serves as Vice Chairman (2006-present), a Director (2003-present), and Chief Operating Officer of FMR Corp. and a Director of Strategic Advisers, Inc. (2005-present). He also serves on the Board at Fidelity Investments Canada, Ltd. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (58) | |
Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005- | |
Albert R. Gamper, Jr. (64) | |
Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. | |
George H. Heilmeier (70) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. | |
James H. Keyes (66) | |
Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). | |
Marie L. Knowles (60) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (62) | |
Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. | |
Cornelia M. Small (62) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (67) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), and Metalmark Capital (private equity investment firm, 2005-present). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (67) | |
Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (62) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001- present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. | |
Kimberley H. Monasterio (43) | |
Year of Election or Appointment: 2007 President and Treasurer of the fund. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
Boyce I. Greer (50) | |
Year of Election or Appointment: 2006 Vice President of the fund. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002). | |
David L. Murphy (58) | |
Year of Election or Appointment: 2005 Vice President of the fund. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). | |
Thomas J. Silvia (45) | |
Year of Election or Appointment: 2005 Vice President of the fund. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present), certain Balanced Funds (2005-present), certain Asset Allocation Funds (2005-present), and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004). | |
Mark Sommer (46) | |
Year of Election or Appointment: 2004 Vice President of the fund. Mr. Sommer also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Sommer worked as an analyst and manager. | |
Eric D. Roiter (58) | |
Year of Election or Appointment: 1998 Secretary of the fund. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). | |
Stuart Fross (47) | |
Year of Election or Appointment: 2003 Assistant Secretary of the fund. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003-present), Vice President and Secretary of FDC (2005-present), and is an employee of FMR. | |
R. Stephen Ganis (40) | |
Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of the fund. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). | |
Joseph B. Hollis (58) | |
Year of Election or Appointment: 2006 Chief Financial Officer of the fund. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). | |
Kenneth A. Rathgeber (59) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of the fund. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005- present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
Bryan A. Mehrmann (45) | |
Year of Election or Appointment: 2005 Deputy Treasurer of the fund. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). | |
Kenneth B. Robins (37) | |
Year of Election or Appointment: 2005 Deputy Treasurer of the fund. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). | |
Robert G. Byrnes (40) | |
Year of Election or Appointment: 2005 Assistant Treasurer of the fund. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). | |
John H. Costello (60) | |
Year of Election or Appointment: 1986 Assistant Treasurer of the fund. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (52) | |
Year of Election or Appointment: 2004 Assistant Treasurer of the fund. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (51) | |
Year of Election or Appointment: 2002 Assistant Treasurer of the fund. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Gary W. Ryan (48) | |
Year of Election or Appointment: 2005 Assistant Treasurer of the fund. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). | |
Salvatore Schiavone (41) | |
Year of Election or Appointment: 2005 Assistant Treasurer of the fund. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
During fiscal year ended 2006, 100% of the fund's income dividends was free from federal income tax, and 7.70% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2007 of amounts for use in preparing 2006 income tax returns.
Annual Report
Annual Report
Annual Report
Annual Report
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
Fidelity Research & Analysis Company
(formerly Fidelity Management & Research (Far East) Inc.)
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASTM-UANN-0207
1.796655.103
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Short-Intermediate
Municipal Income
Fund - Institutional Class
Annual Report
December 31, 2006
Institutional Class is a class of Fidelity® Short-Intermediate
Municipal Income Fund
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm | ||
Trustees and Officers | ||
Distributions | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.advisor.fidelity.com.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
We have seen consistently strong performance from stocks and bonds of late, and some relief in energy prices, but the housing market slowdown bears watching for how it might affect the consumer. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2006 | Past 1 | Past 5 | Past 10 |
Institutional Class A | 3.05% | 3.06% | 3.89% |
A The initial offering of Institutional Class shares took place on July 23, 2003. Returns prior to July 23, 2003 are those of Short-Intermediate Municipal Income Fund, the original retail class of the fund.
Annual Report
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor Short-Intermediate Municipal Income - Institutional Class on December 31, 1996. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Mark Sommer, Portfolio Manager of Fidelity Advisor Short-Intermediate Municipal Income Fund
Growing investor demand and a strong second-half rally helped municipal bonds post solid returns and take their place as one of the best performing investment-grade debt classes for the year ending December 31, 2006. Throughout roughly the first six months of the period, muni bond prices declined as the Federal Reserve Board raised short-term interest rates to return them to a more "neutral level" and fend off inflation. Beginning in mid-summer 2006, however, munis rebounded amid hopes that the Fed would pause its rate hike campaign. Those hopes were eventually actualized when the central bank left rates unchanged at its August, September, October and December Open Market Committee meetings. Demand - which was amplified by non-traditional investors such as hedge funds - increased substantially, as investors sought out munis for their attractive after-tax yields. Investors also were drawn to the fact that unlike long-term Treasury bonds, which generally yielded less than short-term Treasuries throughout much of the period, long-term rates for munis were higher than short rates, giving investors the opportunity to lock in attractive long-term yields. Against this backdrop, the Lehman Brothers® Municipal Bond Index - a performance measure of approximately 34,000 investment-grade, fixed-rate, tax-exempt bonds - returned 4.84%. In comparison, the overall taxable bond market, as measured by the Lehman Brothers Aggregate Bond Index, returned 4.33%.
During the past year, the fund's Institutional Class shares returned 3.05% and the Lehman Brothers 1-6 Year Municipal Bond Index gained 3.19%. The fund's performance relative to the index was helped by my decision to overweight longer-term bonds, which outpaced shorter-term bonds due to strong investor demand for yield-enhanced securities. While I invested in bonds of various maturities, I kept the fund's duration - meaning its interest rate sensitivity - in line with the index, a strategy that neutralized the impact of overall interest rate movements on the fund's relative performance. Performance also was aided by an overweighting relative to the index in lower-quality investment-grade bonds. They, too, were the beneficiaries of investors' appetite for higher yields. Detracting from the fund's return was its underweighting relative to the index in California bonds, which were among the muni market's better performers thanks to strong investor demand.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2006 to December 31, 2006).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,025.60 | $ 3.27** |
HypotheticalA | $ 1,000.00 | $ 1,021.98 | $ 3.26** |
Class T | |||
Actual | $ 1,000.00 | $ 1,024.10 | $ 3.78 |
HypotheticalA | $ 1,000.00 | $ 1,021.48 | $ 3.77 |
Class B | |||
Actual | $ 1,000.00 | $ 1,020.70 | $ 7.13 |
HypotheticalA | $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class C | |||
Actual | $ 1,000.00 | $ 1,020.20 | $ 7.64 |
HypotheticalA | $ 1,000.00 | $ 1,017.64 | $ 7.63 |
Short-Intermediate Municipal Income | |||
Actual | $ 1,000.00 | $ 1,025.40 | $ 2.50 |
HypotheticalA | $ 1,000.00 | $ 1,022.74 | $ 2.50 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,026.40 | $ 2.55 |
HypotheticalA | $ 1,000.00 | $ 1,022.68 | $ 2.55 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annualized | |
Class A | .64%** |
Class T | .74% |
Class B | 1.40% |
Class C | 1.50% |
Short-Intermediate Municipal Income | .49% |
Institutional Class | .50% |
** If fees and changes to voluntary expense limitations, effective April 1, 2007 had been in effect during the period, the annualized expense ratio would have been .74% and the expenses paid in the actual and hypothetical examples above would have been $3.77 and $3.76, respectively.
Annual Report
Investment Changes
Top Five States as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
New York | 17.0 | 13.0 |
Texas | 11.3 | 14.0 |
Illinois | 9.9 | 11.0 |
California | 7.0 | 5.4 |
New Jersey | 6.2 | 6.1 |
Top Five Sectors as of December 31, 2006 | ||
% of fund's | % of fund's net assets | |
General Obligations | 41.0 | 43.8 |
Escrowed/Pre-Refunded | 13.4 | 12.2 |
Special Tax | 9.7 | 5.1 |
Electric Utilities | 8.6 | 9.4 |
Transportation | 7.2 | 6.9 |
Average Years to Maturity as of December 31, 2006 | ||
6 months ago | ||
Years | 4.1 | 3.6 |
Average years to maturity is based on the average time remaining to the stated maturity date of each bond, weighted by the market value of each bond. |
Duration as of December 31, 2006 | ||
6 months ago | ||
Years | 2.9 | 2.9 |
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 this example. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2006 | As of June 30, 2006 | ||||||
![]() | AAA 54.6% | ![]() | AAA 58.3% | ||||
![]() | AA,A 35.9% | ![]() | AA,A 30.0% | ||||
![]() | BBB 6.8% | ![]() | BBB 6.0% | ||||
![]() | BB and Below 0.3% | ![]() | BB and Below 0.0% | ||||
![]() | Not Rated 1.7% | ![]() | Not Rated 1.5% | ||||
![]() | Short-Term | ![]() | Short-Term |
We have used ratings from Moody's ® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ® ratings. |
Annual Report
Investments December 31, 2006
Showing Percentage of Net Assets
Municipal Bonds - 99.3% | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Alabama - 3.2% | ||||
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09 | $ 1,100 | $ 1,124 | ||
Daphne Spl. Care Facilities Fing. Auth. Rev. Series A, 0% 8/15/28 (Pre-Refunded to 8/15/08 @ 100) (e) | 10,000 | 9,408 | ||
Health Care Auth. for Baptist Health Series 2006 D: | ||||
5% 11/15/08 | 1,475 | 1,499 | ||
5% 11/15/11 | 1,000 | 1,043 | ||
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev.: | ||||
5.25% 10/1/08 (MBIA Insured) (d) | 2,900 | 2,974 | ||
5.75% 10/1/09 (MBIA Insured) (d) | 4,000 | 4,181 | ||
Jefferson County Ltd. Oblig. School Warrants Series A, 5% 1/1/07 | 2,210 | 2,210 | ||
Jefferson County Swr. Rev.: | ||||
Series 1999 A, 5.75% 2/1/38 (Pre-Refunded to 2/1/09 @ 101) (e) | 5,010 | 5,264 | ||
Series A: | ||||
5% 2/1/33 (Pre-Refunded to 2/1/09 @ 101) (e) | 13,520 | 13,990 | ||
5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (e) | 3,900 | 4,200 | ||
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (e) | 2,060 | 2,189 | ||
48,082 | ||||
Alaska - 0.7% | ||||
Alaska Student Ln. Corp. Student Ln. Rev. Series A, 5.85% 7/1/13 (AMBAC Insured) (d) | 3,285 | 3,496 | ||
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 | 2,500 | 2,692 | ||
North Slope Borough Gen. Oblig. Series B, 0% 6/30/08 (MBIA Insured) | 4,240 | 4,014 | ||
10,202 | ||||
Arizona - 1.8% | ||||
Arizona Ctfs. of Prtn. Series B, 5.5% 9/1/10 (FSA Insured) | 9,025 | 9,563 | ||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured) | 1,115 | 1,153 | ||
Maricopa County Unified School District #48 Scottsdale 7.4% 7/1/10 | 3,750 | 4,201 | ||
Nogales Rev. Oblig. (Wastewtr. Systems Proj.) Series 06A, 3.75%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | 3,000 | 3,001 | ||
Pima County Unified School District #1 Tucson 7.5% 7/1/08 (FGIC Insured) | 7,060 | 7,455 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Arizona - continued | ||||
Pinal County Indl. Dev. Auth. Correctional Facilities Contract Rev. (Florence West Prison Expansion, LLC Proj.) Series A, 4.5% 10/1/08 (American Cap. Access Corp. Insured) | $ 660 | $ 664 | ||
Tucson Wtr. Rev. Series A, 5% 7/1/11 (FGIC Insured) | 1,500 | 1,577 | ||
27,614 | ||||
California - 7.0% | ||||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A, 5.25% 5/1/12 (MBIA Insured) | 6,000 | 6,473 | ||
California Econ. Recovery: | ||||
Series 2004 A, 5.25% 7/1/13 | 2,400 | 2,613 | ||
Series A: | ||||
5.25% 1/1/11 | 6,500 | 6,886 | ||
5.25% 7/1/13 (MBIA Insured) | 2,900 | 3,166 | ||
California Gen. Oblig.: | ||||
5% 2/1/09 | 1,640 | 1,685 | ||
5% 2/1/10 | 2,000 | 2,077 | ||
5% 2/1/11 | 2,525 | 2,651 | ||
5.125% 9/1/12 | 1,000 | 1,047 | ||
5.25% 9/1/10 | 18,550 | 19,544 | ||
5.25% 2/1/11 | 6,775 | 7,177 | ||
5.5% 3/1/11 (FGIC Insured) | 3,210 | 3,445 | ||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,525 | 3,776 | ||
5.75% 10/1/08 | 1,085 | 1,125 | ||
6.4% 9/1/08 | 3,075 | 3,214 | ||
6.5% 9/1/10 | 1,760 | 1,926 | ||
California Health Facilities Fing. Auth. Rev. (Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/10 | 1,000 | 1,043 | ||
California Pub. Works Board Lease Rev. (Coalinga State Hosp. Proj.) Series 2004 A, 5% 6/1/08 | 6,000 | 6,108 | ||
California Statewide Cmntys. Dev. Auth. Rev.: | ||||
(Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c) | 1,400 | 1,397 | ||
(Kaiser Permanente Health Sys. Proj.): | ||||
Series 2001 A, 2.55%, tender 1/4/07 (c) | 1,400 | 1,400 | ||
Series 2004 G, 2.3%, tender 5/1/07 (c) | 8,000 | 7,953 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured) | 3,600 | 2,977 | ||
Univ. of California Revs.: | ||||
(UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (f) | 8,607 | 8,721 | ||
Series K: | ||||
5% 5/15/09 (b) | 1,000 | 1,026 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
California - continued | ||||
Univ. of California Revs.: - continued | ||||
Series K: | ||||
5% 5/15/10 (b) | $ 4,955 | $ 5,141 | ||
Western Placer Unified School District 3.625%, tender 12/1/09 (FSA Insured) (c) | 3,170 | 3,162 | ||
105,733 | ||||
Colorado - 0.6% | ||||
Colorado Health Facilities Auth. Rev. (Adventist Health Sys. - Sunbelt Proj.): | ||||
Series E, 5% 11/15/11 | 2,230 | 2,333 | ||
Series F, 5% 11/15/12 | 1,225 | 1,289 | ||
Denver City & County Arpt. Rev. Series E, 5% 11/15/08 (XL Cap. Assurance, Inc. Insured) (d) | 5,000 | 5,113 | ||
8,735 | ||||
Connecticut - 0.7% | ||||
Connecticut Gen. Oblig.: | ||||
Series 2001 D, 5.125% 11/15/18 (Pre-Refunded to 11/15/11 @ 100) (e) | 5,000 | 5,319 | ||
Series 2002 C, 5% 12/15/08 | 1,930 | 1,981 | ||
Connecticut Health & Edl. Facilities Auth. Rev. (Connecticut Children's Med. Ctr. Proj.) Series B: | ||||
4% 7/1/07 (MBIA Insured) | 1,275 | 1,277 | ||
4.5% 7/1/08 (MBIA Insured) | 1,045 | 1,057 | ||
5% 7/1/09 (MBIA Insured) | 1,000 | 1,029 | ||
10,663 | ||||
District Of Columbia - 0.8% | ||||
District of Columbia Ctfs. of Prtn. 5.25% 1/1/08 (AMBAC Insured) | 935 | 949 | ||
District of Columbia Gen. Oblig.: | ||||
Series A, 5.25% 6/1/09 (FSA Insured) | 1,000 | 1,036 | ||
Series B, 0% 6/1/12 (MBIA Insured) | 3,600 | 2,897 | ||
Metropolitan Washington Arpt. Auth. Gen. Arpt. Rev. Series B, 5.5% 10/1/08 (FGIC Insured) (d) | 6,460 | 6,604 | ||
11,486 | ||||
Florida - 5.5% | ||||
Brevard County School Board Ctfs. of Prtn. Series A, 5.5% 7/1/09 (AMBAC Insured) | 2,775 | 2,889 | ||
Florida Gen. Oblig. (Dept. of Trans. Right of Way Proj.) Series B, 6.375% 7/1/08 | 3,000 | 3,120 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Florida - continued | ||||
Highlands County Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.) Series 06G: | ||||
5% 11/15/09 | $ 435 | $ 448 | ||
5% 11/15/10 | 400 | 415 | ||
5% 11/15/11 | 700 | 732 | ||
(Adventist Health Sys./Sunbelt Obligated Group Proj.): | ||||
Series A, 5% 11/15/10 | 1,000 | 1,039 | ||
Series B, 5% 11/15/08 | 800 | 817 | ||
3.95%, tender 9/1/12 (c) | 7,550 | 7,523 | ||
5%, tender 11/16/09 (c) | 4,700 | 4,835 | ||
Series 06G, 5% 11/15/08 | 420 | 428 | ||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.): | ||||
4%, tender 8/1/07 (c) | 11,000 | 10,987 | ||
4.25%, tender 8/1/07 (c)(d) | 6,000 | 6,001 | ||
Lakeland Hosp. Sys. Rev. (Reg'l. Health Systems Proj.) 5% 11/15/11 | 2,545 | 2,668 | ||
Lee County Solid Waste Sys. Rev. 5.25% 10/1/09 (MBIA Insured) (d) | 1,000 | 1,033 | ||
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured) | 1,980 | 2,159 | ||
Miami-Dade County School Board Ctfs. of Prtn. 5%, tender 5/1/11 (MBIA Insured) (c) | 1,500 | 1,569 | ||
Orange County School Board Ctfs. of Prtn. Series A, 5.375% 8/1/22 (Pre-Refunded to 8/1/07 @ 101) (e) | 3,840 | 3,919 | ||
Orlando Utils. Commission Util. Sys. Rev. 5.25% 7/1/09 | 6,000 | 6,227 | ||
Palm Beach County School Board Ctfs. of Prtn. Series A, 6% 8/1/22 (Pre-Refunded to 8/1/10 @ 101) (e) | 7,020 | 7,625 | ||
Polk County Cap. Impt. Rev.: | ||||
Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c) | 9,000 | 9,557 | ||
5.5% 12/1/11 (FGIC Insured) | 3,470 | 3,753 | ||
Seminole County School Board Ctfs. of Prtn. Series A, 4.5% 7/1/08 (MBIA Insured) | 1,250 | 1,266 | ||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001: | ||||
2.8%, tender 10/1/08, LOC SunTrust Banks of Florida, Inc. (c) | 2,000 | 1,969 | ||
3%, tender 10/1/09, LOC SunTrust Banks, Inc. (c) | 1,000 | 977 | ||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 5% 8/1/08 (FSA Insured) | 1,625 | 1,656 | ||
83,612 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Georgia - 0.3% | ||||
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1992 B, 8.25% 1/1/11 (MBIA Insured) | $ 4,105 | $ 4,782 | ||
Hawaii - 2.5% | ||||
Hawaii Arpt. Sys. Rev. Series 2000 B, 8% 7/1/10 | 3,850 | 4,357 | ||
Hawaii Gen. Oblig. Series CU: | ||||
5.75% 10/1/11 (MBIA Insured) | 3,040 | 3,263 | ||
5.75% 10/1/11 (Pre-Refunded to 10/1/10 @ 100) (e) | 170 | 182 | ||
Honolulu City & County Gen. Oblig. Series B, 8% 10/1/09 | 26,940 | 29,902 | ||
37,704 | ||||
Illinois - 9.9% | ||||
Chicago Board of Ed. (Chicago School Reform Proj.) 6.75% 12/1/10 (AMBAC Insured) | 4,160 | 4,616 | ||
Chicago Gen. Oblig. Series A, 5.25% 1/1/12 (FSA Insured) | 1,000 | 1,068 | ||
Chicago Midway Arpt. Rev. Series B: | ||||
5% 1/1/10 (AMBAC Insured) | 1,225 | 1,270 | ||
5% 1/1/11 (AMBAC Insured) | 3,625 | 3,797 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series A: | ||||
5% 1/1/12 (MBIA Insured) | 1,145 | 1,211 | ||
5.5% 1/1/08 (AMBAC Insured) | 5,000 | 5,054 | ||
5.5% 1/1/10 (AMBAC Insured) (d) | 5,000 | 5,227 | ||
Chicago Park District: | ||||
Series B, 5% 1/1/11 (AMBAC Insured) | 5,750 | 6,027 | ||
Series C, 5% 1/1/11 (AMBAC Insured) | 2,515 | 2,636 | ||
Chicago School Fin. Auth. Series B, 5% 6/1/09 | 12,915 | 13,301 | ||
Chicago Tax Increment Rev. Series 2000 A, 0% 12/1/08 (AMBAC Insured) | 10,000 | 9,316 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev. (Fed. Transit Administration Section 5307 Formula Funds Proj.) Series A, 5.25% 6/1/10 (AMBAC Insured) | 4,835 | 5,074 | ||
Chicago Wastewtr. Transmission Rev. 5.5% 1/1/09 (FGIC Insured) | 2,975 | 3,079 | ||
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 3.85%, tender 5/1/08 (c)(d) | 2,200 | 2,180 | ||
Hodgkins Tax Increment Rev.: | ||||
5% 1/1/07 | 1,000 | 1,000 | ||
5% 1/1/09 | 1,805 | 1,840 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Illinois Dev. Fin. Auth. Gas Supply Rev. (The Peoples Gas Lt. & Coke Co. Proj.) Series 2003 B, 3.05%, tender 2/1/08 (AMBAC Insured) (c) | $ 6,100 | $ 6,043 | ||
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) Series 2004 C, 5.5% 10/1/10 | 1,900 | 2,008 | ||
Illinois Edl. Facilities Auth. Revs.: | ||||
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c) | 12,800 | 12,698 | ||
(Field Museum of Natural History Proj.) 4.05%, tender 11/1/11 (c) | 3,250 | 3,264 | ||
(Univ. of Chicago Proj.): | ||||
Series 2004 B1, 3.45%, tender 7/1/08 (c) | 6,100 | 6,077 | ||
Series A, 5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (e) | 2,640 | 2,827 | ||
Series B: | 3,895 | 3,884 | ||
3.1%, tender 7/1/07 (c)(e) | 5 | 5 | ||
Illinois Fin. Auth. Rev.: | ||||
(DePaul Univ. Proj.): | ||||
5% 10/1/07 | 1,225 | 1,234 | ||
5% 10/1/08 | 1,000 | 1,019 | ||
Series A, 5% 10/1/11 | 1,165 | 1,217 | ||
Illinois Gen. Oblig.: | ||||
First Series 2001, 5.25% 5/1/11 (FSA Insured) | 1,475 | 1,567 | ||
First Series: | ||||
5.375% 7/1/11 (MBIA Insured) | 6,745 | 7,217 | ||
5.5% 8/1/10 | 1,415 | 1,499 | ||
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (e) | 7,075 | 7,538 | ||
Series A, 5% 10/1/09 | 2,600 | 2,687 | ||
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (e) | 1,000 | 1,063 | ||
Illinois Health Facilities Auth. Rev. (Condell Med. Ctr. Proj.): | ||||
5% 5/15/07 | 500 | 501 | ||
5% 5/15/08 | 700 | 708 | ||
Kane & DeKalb Counties Cmnty. Unit School District #301 0% 12/1/10 (AMBAC Insured) | 2,000 | 1,716 | ||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 | 2,270 | 2,455 | ||
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) (e) | 1,600 | 1,747 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Illinois - continued | ||||
Kane, McHenry, Cook & DeKalb Counties Cmnty. Unit School District #300, Carpentersville 5.5% 12/1/13 (Pre-Refunded to 12/1/11 @ 100) (e) | $ 5,000 | $ 5,405 | ||
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11 | 2,365 | 2,477 | ||
Rosemont Gen. Oblig.: | ||||
Series 3, 0% 12/1/07 (FGIC Insured) | 625 | 605 | ||
Series A, 0% 12/1/11 (FGIC Insured) | 3,695 | 3,072 | ||
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Proj.) 5% 8/15/11 (AMBAC Insured) | 1,360 | 1,432 | ||
Will County School District #122 Series B, 0% 11/1/08 (FSA Insured) | 1,280 | 1,197 | ||
149,858 | ||||
Indiana - 3.7% | ||||
Carmel High School Bldg. Corp. 5% 1/10/11 (FSA Insured) | 1,000 | 1,049 | ||
Ctr. Grove 2000 Bldg. Corp.: | ||||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,785 | 1,923 | ||
5.5% 7/15/18 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,885 | 2,031 | ||
Hamilton Southeastern Consolidated School Bldg. Corp.: | ||||
Series A: | ||||
5% 1/10/10 (FSA Insured) | 1,750 | 1,816 | ||
5.25% 7/10/11 (FSA Insured) | 2,295 | 2,444 | ||
5.25% 1/10/12 (FSA Insured) | 1,355 | 1,451 | ||
5% 1/15/10 (FSA Insured) | 1,835 | 1,905 | ||
5% 1/15/11 (FSA Insured) | 1,910 | 2,004 | ||
5% 1/15/12 (FSA Insured) | 1,990 | 2,109 | ||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,855 | 1,999 | ||
Indiana Univ. Student Fee Revs. Series H, 0% 8/1/09 (AMBAC Insured) | 3,875 | 3,522 | ||
Indianapolis Resource Recovery Rev. (Ogden Martin Sys., Inc. Proj.) 6.75% 12/1/07 (AMBAC Insured) | 3,000 | 3,068 | ||
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured) | 1,405 | 1,449 | ||
Logansport High School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,000 | 1,054 | ||
5.25% 7/15/11 (MBIA Insured) | 1,020 | 1,082 | ||
5.25% 1/15/12 (MBIA Insured) | 1,045 | 1,114 | ||
5.25% 7/15/12 (MBIA Insured) | 1,075 | 1,153 | ||
Mount Vernon of Hancock County Multi-School Corp. Series B: | ||||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (e) | 1,605 | 1,729 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Indiana - continued | ||||
Mount Vernon of Hancock County Multi-School Corp. Series B: - continued | ||||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (e) | $ 1,695 | $ 1,826 | ||
Muncie School Bldg. Corp. 5.25% 7/10/12 (MBIA Insured) | 1,585 | 1,707 | ||
New Albany Floyd County Independent School Bldg. Corp. 5% 1/15/11 (FSA Insured) | 1,000 | 1,049 | ||
Rockport Poll. Cont. Rev.: | ||||
(AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (c) | 1,600 | 1,628 | ||
4.9%, tender 6/1/07 (c) | 4,005 | 4,019 | ||
Saint Joseph County Ind. Edl. Facilities Rev. (Univ. of Notre Dame Du Lac Proj.) 2.5%, tender 12/3/07 (c) | 10,000 | 9,882 | ||
West Clark 2000 School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,065 | 1,125 | ||
5.25% 7/15/11 (MBIA Insured) | 1,125 | 1,196 | ||
5.25% 1/15/12 (MBIA Insured) | 1,150 | 1,229 | ||
56,563 | ||||
Kansas - 0.2% | ||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series A, 4.75%, tender 10/1/07 (c) | 2,400 | 2,416 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L: | ||||
5.25% 11/15/10 | 545 | 570 | ||
5.25% 11/15/12 | 680 | 722 | ||
3,708 | ||||
Kentucky - 0.2% | ||||
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (d) | 1,185 | 1,213 | ||
Owensboro Elec. Lt. & Pwr. Rev. Series B, 0% 1/1/09 (AMBAC Insured) | 2,000 | 1,854 | ||
3,067 | ||||
Louisiana - 0.5% | ||||
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. Series B, 5% 2/1/12 (AMBAC Insured) | 1,000 | 1,059 | ||
Ernest N. Morial-New Orleans Exhibit Hall Auth. Spl. Tax Series A, 5.25% 7/15/11 (AMBAC Insured) | 2,060 | 2,192 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Louisiana - continued | ||||
Louisiana Military Dept. 5% 8/1/10 | $ 1,530 | $ 1,577 | ||
Louisiana Offshore Term. Auth. Deepwater Port Rev. (LOOP LLC Proj.) Series 2003 D, 4%, tender 9/1/08 (c) | 2,700 | 2,708 | ||
7,536 | ||||
Maryland - 0.1% | ||||
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured) | 1,535 | 1,610 | ||
Massachusetts - 3.3% | ||||
Massachusetts Bay Trans. Auth. Series A, 7% 3/1/09 | 6,880 | 7,355 | ||
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. Series A, 5% 1/1/11 | 1,000 | 1,044 | ||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C, 5.875% 8/1/08 | 1,630 | 1,671 | ||
Massachusetts Fed. Hwy.: | ||||
Series 2000 A, 5.75% 6/15/13 | 3,000 | 3,227 | ||
Series B, 5.125% 12/15/14 (Pre-Refunded to 12/15/08 @ 101) (e) | 2,775 | 2,874 | ||
Massachusetts Gen. Oblig.: | ||||
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (e) | 2,570 | 2,717 | ||
Series 2000 A, 6% 2/1/10 | 2,500 | 2,667 | ||
Series 2001 A, 5.5% 1/1/11 | 5,000 | 5,331 | ||
Series 2003 C, 5.5% 10/1/10 (MBIA Insured) | 1,130 | 1,203 | ||
Series C: | ||||
5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (e) | 2,495 | 2,690 | ||
5.5% 11/1/10 (FSA Insured) | 10,000 | 10,662 | ||
Massachusetts Health & Edl. Facilities Auth. Rev. (Berkshire Health Sys., Inc. Proj.) Series F, 5% 10/1/08 | 2,720 | 2,780 | ||
Massachusetts Port Auth. Spl. Facilities Rev. | 1,000 | 1,057 | ||
Massachusetts Wtr. Resources Auth. Series A, 5.75% 8/1/39 (Pre-Refunded to 8/1/10 @ 101) (e) | 5,000 | 5,389 | ||
50,667 | ||||
Michigan - 2.0% | ||||
Chippewa Valley Schools 5% 5/1/08 | 1,260 | 1,283 | ||
Detroit City School District Series A, 5.5% 5/1/11 (FSA Insured) | 1,200 | 1,287 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Michigan - continued | ||||
Detroit Gen. Oblig. 5% 4/1/09 (MBIA Insured) | $ 10,620 | $ 10,916 | ||
Detroit Swr. Disp. Rev.: | ||||
Series A, 5.75% 7/1/26 (Pre-Refunded to 1/1/10 @ 101) (e) | 2,000 | 2,133 | ||
4.191% 7/1/32 (FSA Insured) (c) | 4,200 | 4,206 | ||
Hazel Park School District 5% 5/1/08 | 1,275 | 1,298 | ||
Livonia Pub. School District Series II, 0% 5/1/21 (FGIC Insured) (Pre-Refunded to 5/1/07 @ 39.31) (e) | 8,000 | 3,110 | ||
Michigan Bldg. Auth. Rev. (Facilities Prog.) Series I, 5.5% 10/15/09 | 2,705 | 2,834 | ||
Troy School District 5% 5/1/11 (MBIA Insured) | 1,000 | 1,053 | ||
Wayne County Cmnty. College (College Facilities Impt. Proj.) 5.25% 7/1/09 (FGIC Insured) | 1,220 | 1,266 | ||
Wayne-Westland Cmnty. Schools 5% 5/1/10 | 1,225 | 1,276 | ||
30,662 | ||||
Minnesota - 0.3% | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): | ||||
5.25% 12/1/08 | 1,200 | 1,229 | ||
5.25% 12/1/10 | 500 | 523 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.): | ||||
5% 5/15/09 | 250 | 256 | ||
5% 5/15/10 | 200 | 206 | ||
5% 5/15/11 | 300 | 311 | ||
Saint Paul Port Auth. Lease Rev. (HealthEast Midway Campus Proj.) Series 2003 A, 5% 5/1/10 | 555 | 555 | ||
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured) | 940 | 989 | ||
4,069 | ||||
Mississippi - 0.2% | ||||
Mississippi Bus. Fin. Corp. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.4%, tender 3/1/11 (c)(d) | 1,100 | 1,103 | ||
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (d) | 1,190 | 1,213 | ||
Mississippi Hosp. Equip. & Facilities Auth. (South Central Reg'l. Med. Ctr. Proj.) 5% 12/1/10 | 1,240 | 1,281 | ||
3,597 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Missouri - 0.7% | ||||
Bi-State Dev. Agcy. Rev. 3.95%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | $ 6,600 | $ 6,641 | ||
Fenton Tax Increment Rev. (Gravois Bluffs Redev. Proj.) 5% 4/1/11 | 1,430 | 1,478 | ||
Kansas City School District Bldg. Corp. Rev. (School District Elementary School Proj.) Series B, 5% 2/1/11 (FGIC Insured) | 1,850 | 1,942 | ||
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) (e) | 1,050 | 1,152 | ||
11,213 | ||||
Montana - 0.3% | ||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (c) | 4,000 | 4,086 | ||
Nevada - 3.1% | ||||
Clark County Arpt. Rev.: | ||||
Series B1, 5% 7/1/08 (d) | 9,000 | 9,167 | ||
Series C: | ||||
5% 7/1/08 (AMBAC Insured) (d) | 2,215 | 2,256 | ||
5% 7/1/09 (AMBAC Insured) (d) | 2,700 | 2,769 | ||
5% 7/1/10 (AMBAC Insured) (d) | 1,225 | 1,267 | ||
5% 7/1/11 (AMBAC Insured) (d) | 1,790 | 1,870 | ||
Clark County Hwy. Impt. Rev. (Motor Vehicle Fuel Tax) 5% 7/1/11 (AMBAC Insured) | 3,230 | 3,400 | ||
Clark County School District: | ||||
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (e) | 1,600 | 1,709 | ||
Series C, 5% 6/15/10 (MBIA Insured) | 1,075 | 1,120 | ||
Series D, 5% 6/15/09 (MBIA Insured) | 13,890 | 14,312 | ||
Series F, 5.375% 6/15/11 (FSA Insured) | 4,090 | 4,365 | ||
Henderson Health Care Facility Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08 | 1,100 | 1,118 | ||
Lyon Co. School District Gen. Oblig. 5% 6/1/09 | 695 | 716 | ||
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured) | 2,410 | 2,509 | ||
46,578 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New Hampshire - 0.3% | ||||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev.: | ||||
(United Illumination Co.) Series A, 3.65%, tender 2/1/10 (AMBAC Insured) (c)(d) | $ 2,500 | $ 2,461 | ||
3.5%, tender 2/1/09 (c)(d) | 2,000 | 1,977 | ||
4,438 | ||||
New Jersey - 6.2% | ||||
Camden County Impt. Auth. Rev. (Cooper Health Sys. Obligated Group Proj.) Series B, 5.25% 2/15/09 | 1,250 | 1,276 | ||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev. 5% 1/1/09 (AMBAC Insured) | 1,000 | 1,024 | ||
Elizabeth Gen. Oblig. 5.25% 8/15/09 (MBIA Insured) | 1,225 | 1,274 | ||
Garden State Preservation Trust Open Space & Farmland Preservation Series B: | ||||
6.25% 11/1/09 (MBIA Insured) | 4,000 | 4,267 | ||
6.375% 11/1/11 (MBIA Insured) | 7,470 | 8,335 | ||
New Jersey Econ. Dev. Auth. Rev. 5% 6/15/07 | 7,500 | 7,538 | ||
New Jersey Tpk. Auth. Tpk. Rev. Series A: | ||||
5.75% 1/1/18 (Pre-Refunded to 1/1/10 @ 100) (e) | 3,215 | 3,408 | ||
6% 1/1/11 (MBIA Insured) | 17,180 | 18,667 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series B: | ||||
5.25% 12/15/10 (FGIC Insured) | 4,550 | 4,808 | ||
6.5% 6/15/11 (MBIA Insured) | 5,000 | 5,565 | ||
Series C, 5.5% 12/15/10 (FSA Insured) | 25,000 | 26,648 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (e) | 7,000 | 7,407 | ||
Tobacco Settlement Fing. Corp. 4.375% 6/1/19 | 4,065 | 4,066 | ||
94,283 | ||||
New Jersey/Pennsylvania - 0.3% | ||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5% 7/1/09 | 5,170 | 5,319 | ||
New Mexico - 0.1% | ||||
Farmington Poll. Cont. Rev. Series B, 3.55%, tender 4/1/10 (FGIC Insured) (c) | 1,900 | 1,885 | ||
New York - 17.0% | ||||
Erie County Tobacco Asset Securitization Corp. Series A, 6.25% 7/15/40 (Pre-Refunded to 7/15/10 @ 101) (e) | 8,810 | 9,634 | ||
Grand Central District Mgmt. Assoc., Inc.: | ||||
5% 1/1/10 | 1,200 | 1,243 | ||
5% 1/1/12 | 1,175 | 1,239 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
Metropolitan Trans. Auth. Commuter Facilities Rev. Series A, 5.375% 7/1/09 (Escrowed to Maturity) (e) | $ 3,635 | $ 3,787 | ||
Metropolitan Trans. Auth. Rev. Series 2005 C: | ||||
5% 11/15/10 | 2,000 | 2,093 | ||
5% 11/15/11 | 2,750 | 2,906 | ||
New York City Gen. Oblig.: | ||||
Series 1996 B, 6.5% 8/15/09 | 3,425 | 3,656 | ||
Series 1997 H, 6% 8/1/12 (FGIC Insured) | 1,300 | 1,449 | ||
Series 2000 A, 6.5% 5/15/11 | 370 | 405 | ||
Series 2002 G, 5.5% 8/1/10 | 2,720 | 2,879 | ||
Series 2003 F, 5.5% 12/15/11 | 4,305 | 4,642 | ||
Series 2004 G, 5% 8/1/09 | 8,000 | 8,249 | ||
Series 2005 C, 5% 8/1/12 | 19,770 | 20,992 | ||
Series 2005 D, 5% 8/1/12 | 4,925 | 5,229 | ||
Series 2005 G, 5.625% 8/1/13 (MBIA Insured) | 5,075 | 5,555 | ||
Series 2005 K: | ||||
5% 8/1/11 | 7,120 | 7,491 | ||
5% 8/1/12 | 4,360 | 4,629 | ||
Series 2005 O, 5% 6/1/12 | 7,500 | 7,951 | ||
Series A, 5.25% 11/1/14 (MBIA Insured) | 600 | 647 | ||
Series B, 5.75% 8/1/14 | 1,000 | 1,100 | ||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 1,000 | 1,068 | ||
Subseries 2005 F1, 5% 9/1/15 | 3,560 | 3,848 | ||
New York City Indl. Dev. Agcy. Spl. Facilities Rev. (Terminal One Group Assoc. Proj.) 5% 1/1/07 (d) | 1,700 | 1,700 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. 6% 6/15/33 (MBIA Insured) (Pre-Refunded to 6/15/10 @ 101) (e) | 10,000 | 10,809 | ||
New York Counties Tobacco Trust I Series B, 6.5% 6/1/35 (Pre-Refunded to 6/1/10 @ 101) (e) | 5,900 | 6,502 | ||
New York State Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.): | ||||
Series A: | ||||
5.75% 7/1/13 | 3,500 | 3,795 | ||
5.75% 7/1/13 (AMBAC Insured) | 1,000 | 1,087 | ||
Series C, 7.5% 7/1/10 | 2,565 | 2,733 | ||
Series B, 5.25%, tender 5/15/12 (c) | 13,000 | 13,893 | ||
New York State Urban Dev. Corp. Rev. 5% 1/1/12 | 5,000 | 5,277 | ||
New York Transitional Fin. Auth. Rev.: | ||||
Series 2003 E, 5% 2/1/09 | 2,035 | 2,091 | ||
Series A: | ||||
5.5% 11/1/26 (a) | 3,500 | 3,758 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
New York - continued | ||||
New York Transitional Fin. Auth. Rev.: - continued | ||||
Series A: | ||||
6% 11/1/28 (a) | $ 44,300 | $ 48,527 | ||
Series B, 5.25% 2/1/29 (a) | 3,100 | 3,267 | ||
Series E, 4.5% 2/1/07 | 245 | 245 | ||
Tobacco Settlement Asset Securitization Corp. Series 1: | ||||
5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (e) | 6,760 | 7,196 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (e) | 1,200 | 1,280 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (e) | 2,490 | 2,655 | ||
6% 7/15/20 (Pre-Refunded to 7/15/09 @ 101) (e) | 2,280 | 2,431 | ||
6% 7/15/21 (Pre-Refunded to 7/15/09 @ 101) (e) | 2,310 | 2,463 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2004 B1, 5% 6/1/09 | 3,800 | 3,906 | ||
Series A1: | ||||
5% 6/1/10 | 1,875 | 1,947 | ||
5.25% 6/1/12 | 5,000 | 5,004 | ||
5.25% 6/1/13 | 17,500 | 17,880 | ||
5.5% 6/1/14 | 2,700 | 2,812 | ||
Series C1: | ||||
5.5% 6/1/15 | 1,300 | 1,373 | ||
5.5% 6/1/17 | 4,200 | 4,484 | ||
257,807 | ||||
New York & New Jersey - 0.6% | ||||
Port Auth. of New York & New Jersey: | ||||
124th Series, 5% 8/1/13 (FGIC Insured) (d) | 1,200 | 1,230 | ||
127th Series, 5% 12/15/08 (AMBAC Insured) (d) | 3,510 | 3,598 | ||
Port Auth. of New York & New Jersey Spl. Oblig. Rev. (JFK Int'l. Air Term. Spl. Proj.) Series 6, 6.25% 12/1/13 (MBIA Insured) (d) | 4,100 | 4,654 | ||
9,482 | ||||
North Carolina - 0.9% | ||||
Charlotte Ctfs. of Prtn. (FY 2004 Equip. Acquisition Proj.) Series 2004 C, 4% 3/1/08 | 4,940 | 4,959 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | ||||
Series 1993 B, 7% 1/1/08 (MBIA Insured) | 600 | 620 | ||
Series A, 5.5% 1/1/10 | 3,000 | 3,127 | ||
Series C, 5% 1/1/08 | 1,190 | 1,202 | ||
Series D, 5.375% 1/1/10 | 3,715 | 3,860 | ||
13,768 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
North Dakota - 0.1% | ||||
Ward County Health Care Facility Rev. 5% 7/1/10 | $ 1,595 | $ 1,645 | ||
Ohio - 1.6% | ||||
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A, 5% 1/1/11 | 1,000 | 1,034 | ||
Cleveland Pub. Pwr. Sys. Rev.: | ||||
Series A, 0% 11/15/09 (MBIA Insured) | 1,200 | 1,077 | ||
0% 11/15/09 (Escrowed to Maturity) (e) | 1,050 | 944 | ||
Franklin County Rev. (Online Computer Library Ctr., Inc. Proj.) 5% 4/15/07 | 1,960 | 1,965 | ||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/07 | 1,420 | 1,422 | ||
Ohio Air Quality Dev. Auth. Rev. Series 2002 A, 4.2%, tender 1/2/07 (c) | 1,000 | 1,000 | ||
Ohio Gen. Oblig.: | ||||
Series 2000 E, 5.5% 5/1/09 | 1,905 | 1,983 | ||
Series 2003 D, 2.45%, tender 9/14/07 (c) | 12,300 | 12,179 | ||
Univ. of Cincinnati Gen. Receipts Series A, 5.5% 6/1/09 (FGIC Insured) | 2,000 | 2,085 | ||
23,689 | ||||
Oklahoma - 0.4% | ||||
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (e) | 1,000 | 827 | ||
Tulsa County Indl. Auth. Cap. Impts. Rev. Series B, 5.25% 1/1/09 (FSA Insured) | 5,245 | 5,406 | ||
6,233 | ||||
Oregon - 0.5% | ||||
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured) | 1,210 | 1,262 | ||
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B: | ||||
5% 5/1/09 (FSA Insured) | 600 | 618 | ||
5% 5/1/11 (FSA Insured) | 1,000 | 1,053 | ||
Tri-County Metropolitan Trans. District Rev. 5% 5/1/11 (MBIA Insured) | 5,000 | 5,263 | ||
8,196 | ||||
Pennsylvania - 4.0% | ||||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (MBIA Insured) (d) | 1,300 | 1,403 | ||
Allegheny County Indl. Dev. Auth. Rev. (Watson Institute Ed. Ctr. Proj.) 3.375%, tender 5/1/08, LOC PNC Bank NA, Pittsburgh (c) | 4,500 | 4,470 | ||
Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured) | 1,495 | 1,635 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Pennsylvania - continued | ||||
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.) Series B: | ||||
5% 12/15/09 | $ 2,565 | $ 2,631 | ||
5% 12/15/11 | 2,835 | 2,948 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(d) | 10,000 | 9,867 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(d) | 2,100 | 2,101 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Pennsylvania Health Sys. Proj.) Series A, 5% 8/15/08 | 2,000 | 2,042 | ||
(UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09 | 1,750 | 1,818 | ||
Series B, 5.25% 9/1/08 | 5,860 | 6,014 | ||
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured) | 2,750 | 2,893 | ||
Philadelphia Gas Works Rev. (1975 Gen. Ordinance Proj.) 17th Series, 5% 7/1/08 (FSA Insured) | 7,410 | 7,551 | ||
Philadelphia Muni. Auth. Rev.: | ||||
Series A, 5% 5/15/08 (FSA Insured) | 5,000 | 5,090 | ||
Series B, 5.25% 11/15/11 (FSA Insured) | 3,400 | 3,622 | ||
Philadelphia School District: | ||||
Series 2005 D, 5.25% 6/1/12 (FSA Insured) | 1,465 | 1,569 | ||
Series B, 5% 4/1/11 (AMBAC Insured) | 2,160 | 2,267 | ||
Pittsburgh School District Series A, 5% 9/1/09 | 1,600 | 1,644 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) (e) | 2,355 | 1,906 | ||
61,471 | ||||
Puerto Rico - 1.4% | ||||
Puerto Rico Convention Ctr. District Auth. Hotel Occupancy Tax Rev. Series 2006 A, 5% 7/1/10 | 2,000 | 2,069 | ||
Puerto Rico Govt. Dev. Bank 5% 12/1/10 | 8,000 | 8,316 | ||
Univ. of Puerto Rico: | ||||
Series 06P, 5% 6/1/11 | 5,760 | 6,019 | ||
5% 6/1/11 | 4,825 | 5,042 | ||
21,446 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Rhode Island - 0.3% | ||||
Providence Spl. Oblig. Series 2005 E: | ||||
4% 6/1/08 (Radian Asset Assurance Ltd. Insured) | $ 1,000 | $ 1,003 | ||
5% 6/1/09 (Radian Asset Assurance Ltd. Insured) | 1,315 | 1,347 | ||
5% 6/1/10 (Radian Asset Assurance Ltd. Insured) | 1,180 | 1,217 | ||
Rhode Island Health & Edl. Bldg. Corp. Rev. (Johnson & Wales Univ. Proj.) 5% 4/1/08 (XL Cap. Assurance, Inc. Insured) | 1,700 | 1,728 | ||
5,295 | ||||
South Carolina - 1.2% | ||||
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A: | ||||
5% 8/15/07 | 1,700 | 1,711 | ||
5% 8/15/08 | 1,690 | 1,711 | ||
Greenville County Pub. Facilities Corp. Ctfs. of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 | 1,450 | 1,509 | ||
Greenville County School District Installment Purp. Rev. 5% 12/1/10 | 1,455 | 1,519 | ||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5% 12/1/09 | 550 | 568 | ||
Piedmont Muni. Pwr. Agcy. Elec. Rev. 5.6% 1/1/09 (MBIA Insured) | 2,345 | 2,433 | ||
Rock Hill Util. Sys. Rev. Series 2003 A, 5% 1/1/09 | 1,945 | 1,997 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2005 B, 5% 1/1/10 (MBIA Insured) | 3,000 | 3,109 | ||
Series A, 5.5% 1/1/11 (MBIA Insured) | 3,000 | 3,179 | ||
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured) | 1,000 | 1,030 | ||
18,766 | ||||
Tennessee - 1.4% | ||||
Clarksville Natural Gas Acquisition Corp. Gas Rev. 5% 12/15/09 | 7,500 | 7,730 | ||
Elizabethton Health & Edl. Facilities Board Rev. | 2,005 | 2,184 | ||
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured) | 2,000 | 2,082 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A: | ||||
4.5% 9/1/08 (MBIA Insured) | 1,620 | 1,642 | ||
4.5% 9/1/09 (MBIA Insured) | 1,685 | 1,720 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Tennessee - continued | ||||
Metropolitan Govt. Nashville & Series A, 5.25% 10/15/09 | $ 3,795 | $ 3,952 | ||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured) | 1,200 | 1,238 | ||
20,548 | ||||
Texas - 11.3% | ||||
Alief Independent School District Series 2004 B, 5% 2/15/10 | 1,500 | 1,558 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B: | ||||
6% 1/1/12 | 500 | 529 | ||
6% 1/1/13 | 1,270 | 1,355 | ||
6% 1/1/14 | 1,420 | 1,527 | ||
Austin Util. Sys. Rev.: | ||||
Series 1992 A, 0% 11/15/09 (MBIA Insured) | 5,130 | 4,599 | ||
Series A, 0% 11/15/10 (MBIA Insured) | 5,300 | 4,574 | ||
Bexar County Series A: | ||||
5% 6/15/09 (FSA Insured) | 2,615 | 2,698 | ||
5% 6/15/10 (FSA Insured) | 1,000 | 1,043 | ||
Birdville Independent School District 5% 2/15/10 | 1,300 | 1,350 | ||
Brownsville Independent School District 5% 8/15/11 | 1,430 | 1,509 | ||
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured) | 1,500 | 1,610 | ||
College Station Independent School District 5% 2/15/10 | 1,000 | 1,039 | ||
Conroe Independent School District Lot B, 0% 2/15/08 | 3,000 | 2,879 | ||
Del Valle Independent School District 5.5% 2/1/09 | 1,205 | 1,248 | ||
Denton County Gen. Oblig. 5% 7/15/11 (FSA Insured) | 3,065 | 3,232 | ||
Fort Bend Independent School District 5%, tender 8/15/09 (c) | 5,000 | 5,149 | ||
Fort Worth Independent School District 5% 2/15/12 | 1,500 | 1,591 | ||
Frisco Gen. Oblig. Series 2003 A, 5% 2/15/10 | 1,710 | 1,776 | ||
Harris County Health Facilities Dev. Corp. Rev. | 3,710 | 3,839 | ||
Houston Cmnty. College Sys. Rev.: | ||||
5.25% 4/15/11 (FSA Insured) | 3,030 | 3,212 | ||
5.25% 4/15/12 (FSA Insured) | 2,000 | 2,144 | ||
Houston Util. Sys. Rev. Series A: | ||||
5.25% 5/15/10 (MBIA Insured) | 2,835 | 2,973 | ||
5.25% 11/15/11 (FSA Insured) | 4,430 | 4,729 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Katy Independent School District Series A, 5.25% 2/15/12 | $ 2,000 | $ 2,144 | ||
Lower Colorado River Auth. Rev.: | ||||
0% 1/1/09 (Escrowed to Maturity) (e) | 3,000 | 2,785 | ||
5.25% 1/1/15 (Pre-Refunded to 1/1/11 @ 100) (e) | 5,000 | 5,289 | ||
Lubbock Gen. Oblig.: | ||||
(Wtrwks. Sys. Surplus Proj.) 5% 2/15/11 (FSA Insured) | 2,465 | 2,588 | ||
5% 2/15/09 (MBIA Insured) | 1,615 | 1,659 | ||
5% 2/15/10 (MBIA Insured) | 1,845 | 1,917 | ||
Lubbock Health Facilities Dev. Corp. Rev. (Carillon, Inc. Proj.) Series A, 6.5% 7/1/29 (Pre-Refunded to 7/1/09 @ 102) (e) | 4,800 | 5,203 | ||
Magnolia Independent School District 8% 8/15/11 (FGIC Insured) | 1,210 | 1,427 | ||
Mesquite Independent School District 3.65%, tender 12/1/08 (Liquidity Facility JPMorgan Chase Bank) (c)(e) | 2,500 | 2,500 | ||
Montgomery County Gen. Oblig. Series B, 5%, tender 9/1/10 (FSA Insured) (c) | 1,300 | 1,352 | ||
North East Texas Independent School District 7% 2/1/11 (Pre-Refunded to 2/1/10 @ 100) (e) | 3,600 | 3,945 | ||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C: | ||||
5% 1/1/09 (FSA Insured) | 2,000 | 2,051 | ||
5%, tender 7/1/08 (c)(e) | 45 | 46 | ||
5%, tender 7/1/08 (FSA Insured) (c) | 2,605 | 2,653 | ||
Rockwall Independent School District 5% 2/15/09 | 4,690 | 4,815 | ||
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series A, 5.5%, tender 11/1/11 (c) | 1,000 | 1,048 | ||
San Angelo Wtrwks. & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured) | 1,630 | 1,694 | ||
San Antonio Elec. & Gas Sys. Rev.: | ||||
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (e) | 5,000 | 5,300 | ||
Series B, 0% 2/1/09 (Escrowed to Maturity) (e) | 2,500 | 2,314 | ||
San Antonio Independent School District 7% 8/15/08 | 5,000 | 5,262 | ||
San Antonio Muni. Drainage Util. Sys. Rev. 5.25% 2/1/12 (MBIA Insured) | 1,545 | 1,653 | ||
San Antonio Wtr. Sys. Rev. 5% 5/15/10 (FGIC Insured) | 1,020 | 1,062 | ||
Socorro Independent School District 5% 8/15/09 | 2,070 | 2,140 | ||
Spring Branch Independent School District Series 2001, 5.375% 2/1/14 | 2,790 | 2,964 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Texas - continued | ||||
Texas Gen. Oblig.: | ||||
(College Student Ln. Prog.) 5% 8/1/11 (d) | $ 3,000 | $ 3,083 | ||
Series A, 6% 10/1/08 (MBIA Insured) | 10,750 | 11,179 | ||
Series C: | ||||
0% 4/1/08 (Escrowed to Maturity) (e) | 3,100 | 2,963 | ||
0% 4/1/09 (Escrowed to Maturity) (e) | 2,320 | 2,134 | ||
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Proj.) Series A, 5% 2/1/10 | 1,055 | 1,094 | ||
Texas Tech Univ. Revs. Ninth Series, 5% 2/15/11 (AMBAC Insured) | 1,250 | 1,310 | ||
Travis County Gen. Oblig. 5.25% 3/1/12 | 4,125 | 4,423 | ||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.) 5% 7/1/07 | 1,000 | 1,004 | ||
Univ. of Texas Univ. Revs.: | ||||
(Fing. Sys. Proj.) Series A, 5.5% 8/15/09 | 1,115 | 1,165 | ||
Series B: | ||||
5% 8/15/09 | 11,255 | 11,619 | ||
5.25% 8/15/11 | 5,025 | 5,352 | ||
Wichita Falls Independent School District 0% 2/1/10 | 2,325 | 2,065 | ||
Ysleta Independent School District 0% 8/15/09 | 4,065 | 3,675 | ||
171,040 | ||||
Utah - 1.4% | ||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | ||||
0% 10/1/11 (AMBAC Insured) | 3,800 | 3,157 | ||
0% 10/1/12 (AMBAC Insured) | 3,800 | 3,029 | ||
0% 10/1/13 (AMBAC Insured) | 3,760 | 2,871 | ||
Utah Bldg. Ownership Auth. Lease Rev. (State Facilities Master Lease Prog.) Series A, 5% 5/15/11 | 1,700 | 1,791 | ||
Utah Gen. Oblig. Series 2006 B, 5.375% 7/1/10 | 9,475 | 10,022 | ||
20,870 | ||||
Virginia - 0.1% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.05%, tender 4/1/08 (c)(d) | 1,600 | 1,590 | ||
Washington - 1.7% | ||||
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured) | 1,190 | 1,252 | ||
Clark County Pub. Util. District #1 Elec. Rev.: | ||||
Series B, 5.25% 1/1/09 (FSA Insured) | 1,595 | 1,643 | ||
5% 1/1/11 (MBIA Insured) | 1,680 | 1,759 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Washington - continued | ||||
Clark County Pub. Util. District #1 Elec. Rev.: - continued | ||||
5.25% 1/1/11 (FSA Insured) | $ 1,935 | $ 2,044 | ||
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured) | 1,740 | 1,830 | ||
Pierce County Gen. Oblig. 5.75% 8/1/13 (Pre-Refunded to 8/1/10 @ 100) (e) | 1,155 | 1,234 | ||
Port of Seattle Rev. Series D, 5.75% 11/1/15 (FGIC Insured) (d) | 3,640 | 3,974 | ||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/09 (FGIC Insured) | 1,000 | 1,019 | ||
Snohomish County School District #2, Everett: | ||||
5% 6/1/09 (FSA Insured) | 1,045 | 1,076 | ||
5% 6/1/10 (FSA Insured) | 1,000 | 1,041 | ||
Vancouver Wtr. & Swr. Rev. 5.25% 6/1/11 (FSA Insured) | 1,000 | 1,062 | ||
Washington Gen. Oblig. Series A: | ||||
5% 7/1/11 (FGIC Insured) | 1,000 | 1,056 | ||
5.5% 7/1/11 (Pre-Refunded to 7/1/10 @ 100) (e) | 3,500 | 3,705 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev. Series A, 5.75% 7/1/08 | 3,000 | 3,086 | ||
25,781 | ||||
Wisconsin - 0.9% | ||||
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured) | 3,370 | 2,892 | ||
Wisconsin Gen. Oblig. Series 1, 5% 5/1/10 | 2,500 | 2,605 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Marshfield Clinic Proj.): | ||||
Series 2006 A, 5% 2/15/13 | 875 | 909 | ||
Series B, 6.25% 2/15/10 | 1,015 | 1,078 | ||
(Wheaton Franciscan Services Proj.): | ||||
5% 8/15/11 | 1,315 | 1,364 | ||
5.75% 8/15/11 | 1,000 | 1,069 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (Note 1) (000s) | |||
Wisconsin - continued | ||||
Wisconsin Health & Edl. Facilities Auth. Rev.: - continued | ||||
(Wheaton Franciscan Svcs., Inc. Proj.) Series A: | ||||
5% 8/15/09 | $ 1,765 | $ 1,805 | ||
5% 8/15/10 | 1,870 | 1,928 | ||
13,650 |
TOTAL INVESTMENT PORTFOLIO - 99.3% (Cost $1,516,025) | 1,509,029 | ||
NET OTHER ASSETS - 0.7% | 10,886 | ||
NET ASSETS - 100% | $ 1,519,915 |
Legend |
(a) Security initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end. |
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Security collateralized by an amount sufficient to pay interest and principal. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,721,000 or 0.6% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Univ. of California Revs. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 8,607 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 41.0% |
Escrowed/Pre-Refunded | 13.4% |
Special Tax | 9.7% |
Electric Utilities | 8.6% |
Transportation | 7.2% |
Health Care | 6.8% |
Education | 6.3% |
Others* (individually less than 5%) | 7.0% |
100.0% |
*Includes net other assets |
Income Tax Information |
At December 31, 2006, the fund had a capital loss carryforward of approximately $5,570,000 of which $699,000 and $4,871,000 will expire on December 31, 2013 and 2014, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | December 31, 2006 | |
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $1,516,025) | $ 1,509,029 | |
Receivable for fund shares sold | 1,206 | |
Interest receivable | 20,620 | |
Prepaid expenses | 8 | |
Other receivables | 85 | |
Total assets | 1,530,948 | |
Liabilities | ||
Payable to custodian bank | $ 288 | |
Payable for investments purchased on a delayed delivery basis | 6,173 | |
Payable for fund shares redeemed | 2,628 | |
Distributions payable | 1,134 | |
Accrued management fee | 471 | |
Distribution fees payable | 11 | |
Other affiliated payables | 280 | |
Other payables and accrued expenses | 48 | |
Total liabilities | 11,033 | |
Net Assets | $ 1,519,915 | |
Net Assets consist of: | ||
Paid in capital | $ 1,533,002 | |
Distributions in excess of net investment income | (2) | |
Accumulated undistributed net realized gain (loss) on investments | (6,089) | |
Net unrealized appreciation (depreciation) on investments | (6,996) | |
Net Assets | $ 1,519,915 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2006 | |
Calculation of Maximum Offering Price Class A: | $ 10.21 | |
Maximum offering price per share (100/96.25 of $10.21) | $ 10.61 | |
Class T: | $ 10.19 | |
Maximum offering price per share (100/97.25 of $10.19) | $ 10.48 | |
Class B: | $ 10.20 | |
Class C: | $ 10.19 | |
Short-Intermediate Municipal Income: | $ 10.19 | |
Institutional Class: | $ 10.20 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended December 31, 2006 | |
Investment Income | ||
Interest | $ 55,139 | |
Expenses | ||
Management fee | $ 5,964 | |
Transfer agent fees | 1,393 | |
Distribution fees | 158 | |
Accounting fees and expenses | 321 | |
Custodian fees and expenses | 25 | |
Independent trustees' compensation | 6 | |
Registration fees | 104 | |
Audit | 57 | |
Legal | 10 | |
Miscellaneous | 33 | |
Total expenses before reductions | 8,071 | |
Expense reductions | (1,341) | 6,730 |
Net investment income | 48,409 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (4,249) | |
Change in net unrealized appreciation (depreciation) on investment securities | 1,984 | |
Net gain (loss) | (2,265) | |
Net increase (decrease) in net assets resulting from operations | $ 46,144 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 48,409 | $ 51,345 |
Net realized gain (loss) | (4,249) | (1,840) |
Change in net unrealized appreciation (depreciation) | 1,984 | (29,976) |
Net increase (decrease) in net assets resulting | 46,144 | 19,529 |
Distributions to shareholders from net investment income | (48,409) | (51,341) |
Distributions to shareholders from net realized gain | - | (549) |
Total distributions | (48,409) | (51,890) |
Share transactions - net increase (decrease) | (188,103) | (147,427) |
Redemption fees | 13 | 25 |
Total increase (decrease) in net assets | (190,355) | (179,763) |
Net Assets | ||
Beginning of period | 1,710,270 | 1,890,033 |
End of period (including distributions in excess of net investment income of $2 and distributions in excess of net investment income of $3, respectively) | $ 1,519,915 | $ 1,710,270 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.21 | $ 10.39 | $ 10.50 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .292 | .268 | .250 | .115 |
Net realized and unrealized gain (loss) | (.001) | (.177) | (.090) | .071 |
Total from investment operations | .291 | .091 | .160 | .186 |
Distributions from net investment income | (.291) | (.268) | (.251) | (.111) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.291) | (.271) | (.270) | (.176) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.21 | $ 10.21 | $ 10.39 | $ 10.50 |
Total Return B, C, D | 2.89% | .89% | 1.55% | 1.78% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | .65% | .65% | .65% | .65% A |
Expenses net of fee waivers, if any | .65% | .65% | .65% | .65% A |
Expenses net of all reductions | .56% | .58% | .64% | .64% A |
Net investment income | 2.86% | 2.61% | 2.41% | 2.52% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 10 | $ 14 | $ 12 | $ 9 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.20 | $ 10.37 | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .281 | .257 | .238 | .110 |
Net realized and unrealized gain (loss) | (.011) | (.167) | (.089) | .050 |
Total from investment operations | .270 | .090 | .149 | .160 |
Distributions from net investment income | (.280) | (.257) | (.240) | (.105) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.280) | (.260) | (.259) | (.170) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 10.20 | $ 10.37 | $ 10.48 |
Total Return B, C, D | 2.69% | .88% | 1.44% | 1.54% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | .75% | .76% | .76% | .77% A |
Expenses net of fee waivers, if any | .75% | .76% | .76% | .77% A |
Expenses net of all reductions | .66% | .69% | .75% | .76% A |
Net investment income | 2.76% | 2.50% | 2.30% | 2.41% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 13 | $ 15 | $ 20 | $ 12 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.21 | $ 10.39 | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .215 | .190 | .172 | .081 |
Net realized and unrealized gain (loss) | (.012) | (.177) | (.080) | .059 |
Total from investment operations | .203 | .013 | .092 | .140 |
Distributions from net investment income | (.213) | (.190) | (.173) | (.075) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.213) | (.193) | (.192) | (.140) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.20 | $ 10.21 | $ 10.39 | $ 10.49 |
Total Return B, C, D | 2.02% | .13% | .89% | 1.34% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of fee waivers, if any | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of all reductions | 1.31% | 1.34% | 1.39% | 1.39% A |
Net investment income | 2.11% | 1.85% | 1.65% | 1.78% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 2 | $ 3 | $ 4 | $ 2 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2006 | 2005 | 2004 | 2003 F |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income E | .204 | .178 | .159 | .077 |
Net realized and unrealized gain (loss) | (.011) | (.176) | (.080) | .048 |
Total from investment operations | .193 | .002 | .079 | .125 |
Distributions from net investment income | (.203) | (.179) | (.160) | (.070) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.203) | (.182) | (.179) | (.135) |
Redemption fees added to paid in capital E, H | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 |
Total Return B, C, D | 1.92% | .02% | .77% | 1.20% |
Ratios to Average Net Assets G | ||||
Expenses before reductions | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of fee waivers, if any | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of all reductions | 1.41% | 1.45% | 1.51% | 1.49% A |
Net investment income | 2.01% | 1.74% | 1.53% | 1.67% A |
Supplemental Data | ||||
Net assets, end of period (in millions) | $ 7 | $ 10 | $ 11 | $ 8 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Short-Intermediate Municipal Income
Years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 |
Selected Per-Share Data | |||||
Net asset value, | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 | $ 10.27 |
Income from Investment Operations | |||||
Net investment income B | .307 | .284 | .268 | .283 | .336 |
Net realized and unrealized | (.010) | (.177) | (.080) | .030 | .317 |
Total from investment operations | .297 | .107 | .188 | .313 | .653 |
Distributions from net investment income | (.307) | (.284) | (.269) | (.283) | (.339) |
Distributions from net realized | - | (.003) | (.019) | (.070) | (.064) |
Total distributions | (.307) | (.287) | (.288) | (.353) | (.403) |
Redemption fees added to paid | - | - | - | - | - |
Net asset value, end of period | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 |
Total Return A | 2.95% | 1.06% | 1.82% | 3.01% | 6.47% |
Ratios to Average Net Assets C | |||||
Expenses before reductions | .49% | .49% | .49% | .49% | .49% |
Expenses net of fee waivers, | .49% | .49% | .48% | .49% | .49% |
Expenses net of all reductions | .41% | .42% | .47% | .47% | .45% |
Net investment income | 3.01% | 2.77% | 2.57% | 2.69% | 3.23% |
Supplemental Data | |||||
Net assets, end of period | $ 1,485 | $ 1,665 | $ 1,841 | $ 1,843 | $ 1,683 |
Portfolio turnover rate | 28% | 27% | 45% | 34% | 38% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2006 | 2005 | 2004 | 2003 E |
Selected Per-Share Data | ||||
Net asset value, beginning of period | $ 10.20 | $ 10.38 | $ 10.49 | $ 10.49 |
Income from Investment Operations | ||||
Net investment income D | .306 | .283 | .265 | .125 |
Net realized and unrealized gain (loss) | - G | (.176) | (.088) | .059 |
Total from investment operations | .306 | .107 | .177 | .184 |
Distributions from net investment income | (.306) | (.284) | (.268) | (.119) |
Distributions from net realized gain | - | (.003) | (.019) | (.065) |
Total distributions | (.306) | (.287) | (.287) | (.184) |
Redemption fees added to paid in capital D, G | - | - | - | - |
Net asset value, end of period | $ 10.20 | $ 10.20 | $ 10.38 | $ 10.49 |
Total Return B, C | 3.05% | 1.05% | 1.71% | 1.77% |
Ratios to Average Net Assets F | ||||
Expenses before reductions | .50% | .49% | .49% | .48% A |
Expenses net of fee waivers, if any | .50% | .49% | .49% | .48% A |
Expenses net of all reductions | .41% | .42% | .48% | .47% A |
Net investment income | 3.01% | 2.77% | 2.57% | 2.69% A |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $ 3,357 | $ 2,625 | $ 1,253 | $ 414 |
Portfolio turnover rate | 28% | 27% | 45% | 34% |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2006
(Amounts in thousands except ratios)
1. Significant Accounting Policies.
Fidelity Short-Intermediate Municipal Income Fund (the Fund) is a fund of Fidelity Municipal Trust (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 Massachusetts business trust.
The Fund offers Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of four years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:
Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotes are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
Annual Report
1. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to excise tax regulations.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 4,702 | |
Unrealized depreciation | (11,599) | |
Net unrealized appreciation (depreciation) | (6,897) | |
Capital loss carryforward | (5,570) | |
Cost for federal income tax purposes | $ 1,515,926 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, 2006 | December 31, 2005 | |
Tax-exempt Income | $ 48,409 | $ 51,341 |
Long-term Capital Gains | - | 549 |
Total | $ 48,409 | $ 51,890 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to .50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by Fidelity Management & Research Company (FMR), are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund's net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.
2. Operating Policies.
Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a
Annual Report
2. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally 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. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $443,566 and $621,528, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged ..12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
Distribution | Service | Paid to | Retained | |
Class A | .00% | .15% | $ 17 | $ - |
Class T | .00% | .25% | 35 | - |
Class B | .65% | .25% | 27 | 20 |
Class C | .75% | .25% | 79 | 16 |
$ 158 | $ 36 |
On January 18, 2007, the Board of Trustees approved an increase in Class A's Service fee from .15% to .25%, effective April 1, 2007.
Sales Load. FDC receives a front-end sales charge of up to 3.75% for selling Class A shares, and 2.75% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 3% to 1% for Class B, 1% for Class C, .75% to .50% for certain purchases of Class A shares (.25% prior to February 24, 2006) and .25% for certain purchases of Class T shares.
On January 18, 2007, the Board of Trustees approved a change in Class A's front-end sales charge. Effective April 1, 2007, FDC will receive a front-end sales charge of up to 2.75% for selling Class A shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 2 |
Class T | 1 |
Class B* | 12 |
Class C* | 3 |
$ 18 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and shareholder servicing agent for the Fund's Class A, Class T, Class B, Class C, Short-Intermediate Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, except for Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. Citibank has also entered into a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, with respect to Short-Intermediate Municipal Income, to perform the transfer, dividend disbursing, and shareholder servicing agent functions. FIIOC and FSC receive account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC and FSC pay for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, each class paid the following transfer agent fees:
Amount | % of | |
Class A | $ 10 | .09 |
Class T | 13 | .09 |
Class B | 3 | .10 |
Class C | 8 | .11 |
Short-Intermediate Municipal Income | 1,356 | .09 |
Institutional Class | 3 | .09 |
$ 1,393 |
Citibank also has a sub-arrangement with FSC to maintain the Fund's accounting records. The fee is based on the level of average net assets for the month.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Expense Reductions.
Through arrangements with the Fund's custodian and each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody and accounting expenses by $25 and $321, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | |
Class A | $ 7 |
Class T | 10 |
Class B | 2 |
Class C | 6 |
Short-Intermediate Municipal Income | 968 |
Institutional Class | 2 |
$ 995 |
7. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
During the period, the Fund's transfer agent, Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of Fidelity Management & Research Company, notified the Fund that the fund's books and records did not reflect a conversion of certain Class B to Class A shares upon their conversion date. Management has determined that this did not have a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. FIIOC will cause the books and records of the Fund to reflect a conversion of the relevant Class B shares to Class A and is in the process of determining the impact to affected shareholder accounts for purposes of its remediation.
Annual Report
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | ||
2006 | 2005 | |
From net investment income | ||
Class A | $ 317 | $ 313 |
Class T | 388 | 465 |
Class B | 63 | 68 |
Class C | 157 | 195 |
Short-Intermediate Municipal Income | 47,385 | 50,256 |
Institutional Class | 99 | 44 |
Total | $ 48,409 | $ 51,341 |
From net realized gain | ||
Class A | $ - | $ 4 |
Class T | - | 6 |
Class B | - | 1 |
Class C | - | 3 |
Short-Intermediate Municipal Income | - | 534 |
Institutional Class | - | 1 |
Total | $ - | $ 549 |
9. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2006 | 2005 | 2006 | 2005 | |
Class A | ||||
Shares sold | 246 | 684 | $ 2,516 | $ 6,996 |
Reinvestment of distributions | 25 | 23 | 253 | 238 |
Shares redeemed | (701) | (498) | (7,154) | (5,104) |
Net increase (decrease) | (430) | 209 | $ (4,385) | $ 2,130 |
Class T | ||||
Shares sold | 302 | 517 | $ 3,071 | $ 5,299 |
Reinvestment of distributions | 30 | 34 | 307 | 351 |
Shares redeemed | (564) | (1,028) | (5,739) | (10,531) |
Net increase (decrease) | (232) | (477) | $ (2,361) | $ (4,881) |
Class B | ||||
Shares sold | 27 | 65 | $ 268 | $ 661 |
Reinvestment of distributions | 4 | 4 | 45 | 44 |
Shares redeemed | (138) | (100) | (1,399) | (1,025) |
Net increase (decrease) | (107) | (31) | $ (1,086) | $ (320) |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
9. Share Transactions - continued
Shares | Dollars | |||
Years ended December 31, | Years ended December 31, | |||
2006 | 2005 | 2006 | 2005 | |
Class C | ||||
Shares sold | 162 | 438 | $ 1,641 | $ 4,492 |
Reinvestment of distributions | 9 | 11 | 96 | 116 |
Shares redeemed | (536) | (541) | (5,451) | (5,552) |
Net increase (decrease) | (365) | (92) | $ (3,714) | $ (944) |
Short-Intermediate Municipal Income | ||||
Shares sold | 38,594 | 46,854 | $ 392,661 | $ 481,284 |
Reinvestment of distributions | 3,345 | 3,476 | 34,020 | 35,648 |
Shares redeemed | (59,417) | (64,556) | (603,968) | (661,741) |
Net increase (decrease) | (17,478) | (14,226) | $ (177,287) | $ (144,809) |
Institutional Class | ||||
Shares sold | 258 | 194 | $ 2,623 | $ 1,994 |
Reinvestment of distributions | 5 | 2 | 47 | 18 |
Shares redeemed | (191) | (60) | (1,940) | (615) |
Net increase (decrease) | 72 | 136 | $ 730 | $ 1,397 |
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Short-Intermediate Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Short-Intermediate Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2006, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Short-Intermediate Municipal Income Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 13, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Each of the Trustees oversees 348 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (76) | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). | |
Robert L. Reynolds (54) | |
Year of Election or Appointment: 2003 Mr. Reynolds is President and a Director of FMR (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and FMR Co., Inc. (2005-present). Mr. Reynolds also serves as Vice Chairman (2006-present), a Director (2003-present), and Chief Operating Officer of FMR Corp. and a Director of Strategic Advisers, Inc. (2005-present). He also serves on the Board at Fidelity Investments Canada, Ltd. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
Dennis J. Dirks (58) | |
Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005- | |
Albert R. Gamper, Jr. (64) | |
Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System. | |
George H. Heilmeier (70) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame. | |
James H. Keyes (66) | |
Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions). | |
Marie L. Knowles (60) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (62) | |
Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. | |
Cornelia M. Small (62) | |
Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
William S. Stavropoulos (67) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), and Metalmark Capital (private equity investment firm, 2005-present). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science. | |
Kenneth L. Wolfe (67) | |
Year of Election or Appointment: 2005 Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present). |
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (62) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Municipal Trust. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001- present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. | |
Kimberley H. Monasterio (43) | |
Year of Election or Appointment: 2007 President and Treasurer of the fund. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004). | |
Boyce I. Greer (50) | |
Year of Election or Appointment: 2006 Vice President of the fund. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002). | |
David L. Murphy (58) | |
Year of Election or Appointment: 2005 Vice President of the fund. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002). | |
Thomas J. Silvia (45) | |
Year of Election or Appointment: 2005 Vice President of the fund. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present), certain Balanced Funds (2005-present), certain Asset Allocation Funds (2005-present), and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004). | |
Mark Sommer (46) | |
Year of Election or Appointment: 2004 Vice President of the fund. Mr. Sommer also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Sommer worked as an analyst and manager. | |
Eric D. Roiter (58) | |
Year of Election or Appointment: 1998 Secretary of the fund. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005). | |
Stuart Fross (47) | |
Year of Election or Appointment: 2003 Assistant Secretary of the fund. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003-present), Vice President and Secretary of FDC (2005-present), and is an employee of FMR. | |
R. Stephen Ganis (40) | |
Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of the fund. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002). | |
Joseph B. Hollis (58) | |
Year of Election or Appointment: 2006 Chief Financial Officer of the fund. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005). | |
Kenneth A. Rathgeber (59) | |
Year of Election or Appointment: 2004 Chief Compliance Officer of the fund. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005- present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002). | |
Bryan A. Mehrmann (45) | |
Year of Election or Appointment: 2005 Deputy Treasurer of the fund. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004). | |
Kenneth B. Robins (37) | |
Year of Election or Appointment: 2005 Deputy Treasurer of the fund. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002). | |
Robert G. Byrnes (40) | |
Year of Election or Appointment: 2005 Assistant Treasurer of the fund. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003). | |
John H. Costello (60) | |
Year of Election or Appointment: 1986 Assistant Treasurer of the fund. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Peter L. Lydecker (52) | |
Year of Election or Appointment: 2004 Assistant Treasurer of the fund. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR. | |
Mark Osterheld (51) | |
Year of Election or Appointment: 2002 Assistant Treasurer of the fund. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Gary W. Ryan (48) | |
Year of Election or Appointment: 2005 Assistant Treasurer of the fund. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005). | |
Salvatore Schiavone (41) | |
Year of Election or Appointment: 2005 Assistant Treasurer of the fund. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003). |
Annual Report
Distributions
During fiscal year ended 2006, 100% of the fund's income dividends was free from federal income tax, and 7.70% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2007 of amounts for use in preparing 2006 income tax returns.
Annual Report
Annual Report
Annual Report
Annual Report
Annual Report
Annual Report
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Research & Analysis Company
(formerly Fidelity Management & Research (Far East) Inc.)
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
ASTMI-UANN-0207
1.796657.103
(Fidelity Investment logo)(registered trademark)
Item 2. Code of Ethics
As of the end of the period, December 31, 2006, Fidelity Municipal Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Marie L. Knowles is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Knowles is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees.
For the fiscal years ended December 31, 2006 and December 31, 2005, the aggregate Audit Fees billed by PricewaterhouseCoopers LLP (PwC) for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years, for the Fidelity Michigan Municipal Income Fund, Fidelity Minnesota Municipal Income Fund, Fidelity Municipal Income Fund, Fidelity Ohio Municipal Income Fund, Fidelity Pennsylvania Municipal Income Fund and Fidelity Short-Intermediate Municipal Income Fund (the funds) and for all funds in the Fidelity Group of Funds are shown in the table below.
Fund | 2006A | 2005A |
Fidelity Michigan Municipal Income Fund | $46,000 | $41,000 |
Fidelity Minnesota Municipal Income Fund | $45,000 | $41,000 |
Fidelity Municipal Income Fund | $70,000 | $67,000 |
Fidelity Ohio Municipal Income Fund | $46,000 | $41,000 |
Fidelity Pennsylvania Municipal Income Fund | $45,000 | $41,000 |
Fidelity Short-Intermediate Municipal Income Fund | $48,000 | $46,000 |
All funds in the Fidelity Group of Funds audited by PwC | $13,900,000 | $12,300,000 |
A | Aggregate amounts may reflect rounding. |
(b) Audit-Related Fees.
In each of the fiscal years ended December 31, 2006 and December 31, 2005 the aggregate Audit-Related Fees billed by PwC for services rendered for assurance and related services to each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Fund | 2006A | 2005A |
Fidelity Michigan Municipal Income Fund | $0 | $0 |
Fidelity Minnesota Municipal Income Fund | $0 | $0 |
Fidelity Municipal Income Fund | $0 | $0 |
Fidelity Ohio Municipal Income Fund | $0 | $0 |
Fidelity Pennsylvania Municipal Income Fund | $0 | $0 |
Fidelity Short-Intermediate Municipal Income Fund | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
In each of the fiscal years ended December 31, 2006 and December 31, 2005, the aggregate Audit-Related Fees that were billed by PwC that were required to be approved by the Audit Committee for services rendered on behalf of Fidelity Management & Research Company (FMR) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the funds ("Fund Service Providers") for assurance and related services that relate directly to the operations and financial reporting of each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Billed By | 2006A | 2005A |
PwC | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
Fees included in the audit-related category comprise assurance and related services (e.g., due diligence services) that are traditionally performed by the independent registered public accounting firm. These audit-related services include due diligence related to mergers and acquisitions, accounting consultations and audits in connection with acquisitions, internal control reviews, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards.
(c) Tax Fees.
In each of the fiscal years ended December 31, 2006 and December 31, 2005, the aggregate Tax Fees billed by PwC for professional services rendered for tax compliance, tax advice, and tax planning for each fund is shown in the table below.
Fund | 2006A | 2005A |
Fidelity Michigan Municipal Income Fund | $2,700 | $2,500 |
Fidelity Minnesota Municipal Income Fund | $2,700 | $2,500 |
Fidelity Municipal Income Fund | $2,700 | $2,500 |
Fidelity Ohio Municipal Income Fund | $2,700 | $2,500 |
Fidelity Pennsylvania Municipal Income Fund | $2,700 | $2,500 |
Fidelity Short-Intermediate Municipal Income Fund | $2,700 | $2,500 |
A | Aggregate amounts may reflect rounding. |
In each of the fiscal years ended December 31, 2006 and December 31, 2005, the aggregate Tax Fees billed by PwC that were required to be approved by the Audit Committee for professional services rendered on behalf of the Fund Service Providers for tax compliance, tax advice, and tax planning that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By | 2006A | 2005A |
PwC | $0 | $0 |
A | Aggregate amounts may reflect rounding. |
Fees included in the Tax Fees category comprise all services performed by professional staff in the independent registered public accounting firm's tax division except those services related to the audit. Typically, this category would include fees for tax compliance, tax planning, and tax advice. Tax compliance, tax advice, and tax planning services include preparation of original and amended tax returns, claims for refund and tax payment-planning services, assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.
(d) All Other Fees.
In each of the fiscal years ended December 31, 2006 and December 31, 2005, the aggregate Other Fees billed by PwC for all other non-audit services rendered to the funds is shown in the table below.
Fund | 2006A | 2005A |
Fidelity Michigan Municipal Income Fund | $1,600 | $1,800 |
Fidelity Minnesota Municipal Income Fund | $1,400 | $1,700 |
Fidelity Municipal Income Fund | $4,500 | $5,400 |
Fidelity Ohio Municipal Income Fund | $1,500 | $1,700 |
Fidelity Pennsylvania Municipal Income Fund | $1,400 | $1,600 |
Fidelity Short-Intermediate Municipal Income Fund | $2,400 | $3,000 |
A | Aggregate amounts may reflect rounding. |
In each of the fiscal years ended December 31, 2006 and December 31, 2005, the aggregate Other Fees billed by PwC that were required to be approved by the Audit Committee for all other non-audit services rendered on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By | 2006A | 2005A |
PwC | $125,000 | $190,000 |
A | Aggregate amounts may reflect rounding. |
Fees included in the All Other Fees category include services related to internal control reviews, strategy and other consulting, financial information systems design and implementation, consulting on other information systems, and other tax services unrelated to the fund.
(e) (1) | Audit Committee Pre-Approval Policies and Procedures: |
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity Fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (Covered Service) are subject to approval by the Audit Committee before such service is provided. Non-audit services provided by a fund audit firm for a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund (Non-Covered Service) but that are expected to exceed $50,000 are also subject to pre-approval by the Audit Committee.
All Covered Services, as well as Non-Covered Services that are expected to exceed $50,000, must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee. Neither pre-approval nor advance notice of Non-Covered Service engagements for which fees are not expected to exceed $50,000 is required; such engagements are to be reported to the Audit Committee monthly.
(e) (2) | Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X: |
Audit-Related Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2006 and December 31, 2005 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2006 and December 31, 2005 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
Tax Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2006 and December 31, 2005 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2006 and December 31, 2005 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2006 and December 31, 2005 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2006 and December 31, 2005 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
(f) Not applicable.
(g) For the fiscal years ended December 31, 2006 and December 31, 2005, the aggregate fees billed by PwC of $1,345,000A and $1,340,000A,B for non-audit services rendered on behalf of the funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Fund Service Providers relating to Covered Services and Non-Covered Services are shown in the table below.
2006A | 2005A | |
Covered Services | $155,000 | $250,000 |
Non-Covered Services | $1,190,000 | $1,090,000B |
A | Aggregate amounts may reflect rounding. |
B | Reflects current period presentation. |
(h) The trust's Audit Committee has considered Non-Covered Services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the funds, taking into account representations from PwC, in accordance with Independence Standards Board Standard No.1, regarding its independence from the funds and their related entities.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Municipal Trust
By: | /s/Kimberley Monasterio |
Kimberley Monasterio | |
President and Treasurer | |
Date: | February 16, 2007 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Kimberley Monasterio |
Kimberley Monasterio | |
President and Treasurer | |
Date: | February 16, 2007 |
By: | /s/Joseph B. Hollis |
Joseph B. Hollis | |
Chief Financial Officer | |
Date: | February 16, 2007 |