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: | June 30, 2007 |
Item 1. Reports to Stockholders
Fidelity®
Michigan Municipal Income
Fund
and
Fidelity
Michigan Municipal Money
Market Fund
Semiannual Report
June 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
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. | |
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 | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://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.
Semiannual 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 holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks are currently on pace to register their fifth-straight year of positive returns, although gains could be trimmed if the U.S. economy continues to slow. 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
Semiannual 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 (January 1, 2007 to June 30, 2007).
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. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Semiannual Report
Shareholder Expense Example - continued
Beginning | Ending | Expenses Paid | |
Fidelity Michigan Municipal Income Fund | |||
Actual | $ 1,000.00 | $ 1,000.50 | $ 2.43 |
HypotheticalA | $ 1,000.00 | $ 1,022.36 | $ 2.46 |
Fidelity Michigan Municipal Money Market Fund | |||
Actual | $ 1,000.00 | $ 1,016.00 | $ 2.75 |
HypotheticalA | $ 1,000.00 | $ 1,022.07 | $ 2.76 |
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 181/365 (to reflect the one-half year period).
Annualized | |
Fidelity Michigan Municipal Income Fund | .49% |
Fidelity Michigan Municipal Money Market Fund | .55% |
Semiannual Report
Fidelity Michigan Municipal Income Fund
Investment Changes
Top Five Sectors as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 36.3 | 39.9 |
Escrowed/Pre-Refunded | 24.7 | 23.8 |
Water & Sewer | 15.8 | 15.5 |
Special Tax | 7.3 | 7.3 |
Health Care | 5.8 | 6.1 |
Weighted Average Maturity as of June 30, 2007 | ||
6 months ago | ||
Years | 6.5 | 6.8 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior period figure reflects this change. |
Duration as of June 30, 2007 | ||
6 months ago | ||
Years | 5.8 | 5.9 |
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 June 30, 2007 | As of December 31, 2006 | ||||||
![]() | AAA 73.6% | ![]() | AAA 74.8% | ||||
![]() | AA,A 22.7% | ![]() | AA,A 22.7% | ||||
![]() | BBB 1.2% | ![]() | 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. |
Semiannual Report
Fidelity Michigan Municipal Income Fund
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 97.6% | ||||
Principal Amount | Value | |||
Guam - 0.3% | ||||
Guam Ed. Fing. Foundation (Guam Pub. School Facilities Proj.) 5% 10/1/16 | $ 1,045,000 | $ 1,084,867 | ||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35 | 615,000 | 650,289 | ||
1,735,156 | ||||
Michigan - 95.0% | ||||
Anchor Bay School District 2000 School Bldg. & Site (School Bldg. & Site Prog.) 5% 5/1/29 | 2,155,000 | 2,201,677 | ||
Ann Arbor Bldg. Auth. Series 2005 A: | ||||
5% 3/1/17 (MBIA Insured) | 1,405,000 | 1,476,922 | ||
5% 3/1/18 (MBIA Insured) | 1,440,000 | 1,509,869 | ||
Ann Arbor Econ. Dev. Corp. Ltd. Oblig. Rev. (Glacier Hills, Inc. Proj.) 8.375% 1/15/19 (Escrowed to Maturity) (c) | 2,804,000 | 3,435,545 | ||
Bay City Gen. Oblig. 0% 6/1/15 (AMBAC Insured) | 1,725,000 | 1,223,767 | ||
Birmingham County School District Series II, 5.25% 11/1/19 (Pre-Refunded to 11/1/10 @ 100) (c) | 1,200,000 | 1,249,200 | ||
Brighton Area School District Livingston County Series II, 0% 5/1/15 (AMBAC Insured) | 10,000,000 | 7,120,000 | ||
Byron Ctr. Pub. Schools 5.5% 5/1/16 | 1,055,000 | 1,115,462 | ||
Caledonia Cmnty. Schools Counties of Kent, Allegan and Barry: | ||||
5.25% 5/1/17 | 1,370,000 | 1,447,158 | ||
5.25% 5/1/18 | 1,100,000 | 1,160,203 | ||
Carman-Ainsworth Cmnty. School District: | ||||
5% 5/1/16 (FSA Insured) | 1,000,000 | 1,053,490 | ||
5% 5/1/17 (FSA Insured) | 2,065,000 | 2,168,436 | ||
5.5% 5/1/14 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,755,000 | 1,867,724 | ||
Carrier Creek Drainage District #326: | ||||
5% 6/1/16 (AMBAC Insured) | 1,620,000 | 1,707,464 | ||
5% 6/1/25 (AMBAC Insured) | 1,775,000 | 1,833,415 | ||
Charles Stewart Mott Cmnty. College 5% 5/1/17 (MBIA Insured) | 1,675,000 | 1,758,901 | ||
Chippewa Valley Schools: | ||||
Series I, 5.375% 5/1/17 (Pre-Refunded to 5/1/11 @ 100) (c) | 1,000,000 | 1,049,680 | ||
5.5% 5/1/17 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,125,000 | 1,197,259 | ||
Clarkston Cmnty. Schools: | ||||
5.25% 5/1/29 (Pre-Refunded to 5/1/13 @ 100) (c) | 5,000,000 | 5,305,500 | ||
5.375% 5/1/21 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,950,000 | 2,081,664 | ||
5.375% 5/1/22 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,150,000 | 1,227,648 | ||
Comstock Park Pub. Schools 5% 5/1/16 (FSA Insured) | 1,000,000 | 1,052,810 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Michigan - continued | ||||
Constantine Pub. Schools: | ||||
5% 5/1/25 | $ 1,130,000 | $ 1,161,787 | ||
5% 5/1/25 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,120,000 | 1,172,058 | ||
5.5% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,220,000 | 1,305,668 | ||
5.5% 5/1/19 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,245,000 | 1,332,424 | ||
5.5% 5/1/20 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,245,000 | 1,332,424 | ||
5.5% 5/1/21 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,250,000 | 1,337,775 | ||
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 | 1,163,503 | ||
Detroit City School District: | ||||
(School Bldg. & Site Impt. Proj.) Series B, 5% 5/1/33 (FGIC Insured) | 1,800,000 | 1,849,248 | ||
Series 2003 B, 5% 5/1/24 (FGIC Insured) | 5,000,000 | 5,154,900 | ||
Series 2005 A, 5.25% 5/1/30 (FSA Insured) | 5,000,000 | 5,485,850 | ||
Series A: | ||||
5.5% 5/1/16 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,500,000 | 1,594,995 | ||
5.5% 5/1/18 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,000,000 | 1,063,330 | ||
5.5% 5/1/18 (Pre-Refunded to 5/1/13 @ 100) (c) | 2,000,000 | 2,150,020 | ||
5.5% 5/1/20 (Pre-Refunded to 5/1/12 @ 100) (c) | 3,050,000 | 3,243,157 | ||
Series B, 5.25% 5/1/15 (FGIC Insured) | 3,085,000 | 3,275,129 | ||
Detroit Convention Facilities Rev. (Cobo Hall Expansion Proj.): | ||||
5% 9/30/11 (MBIA Insured) | 3,000,000 | 3,114,480 | ||
5% 9/30/12 (MBIA Insured) | 4,765,000 | 4,978,663 | ||
Detroit Gen. Oblig.: | ||||
(Distributable State Aid Proj.) 5.25% 5/1/09 (AMBAC Insured) | 4,535,000 | 4,647,060 | ||
Series 2003 A, 5% 4/1/11 (XL Cap. Assurance, Inc. Insured) | 1,430,000 | 1,473,601 | ||
Series 2005 B, 5% 4/1/13 (FSA Insured) | 1,830,000 | 1,911,453 | ||
Series 2005 C, 5% 4/1/13 (FSA Insured) | 1,985,000 | 2,073,352 | ||
Series B1: | ||||
5% 4/1/13 (AMBAC Insured) | 2,000,000 | 2,083,820 | ||
5% 4/1/15 (AMBAC Insured) | 3,800,000 | 3,978,866 | ||
5.5% 4/1/17 (Pre-Refunded to 4/1/11 @ 100) (c) | 2,615,000 | 2,753,517 | ||
5.5% 4/1/19 (Pre-Refunded to 4/1/11 @ 100) (c) | 1,500,000 | 1,579,455 | ||
5.5% 4/1/20 (Pre-Refunded to 4/1/11 @ 100) (c) | 1,250,000 | 1,316,213 | ||
Detroit Swr. Disp. Rev.: | ||||
Series 2001 D1, 5.5%, tender 7/1/08 (MBIA Insured) (a) | 10,000,000 | 10,164,400 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Michigan - continued | ||||
Detroit Swr. Disp. Rev.: - continued | ||||
Series A: | ||||
0% 7/1/14 (FGIC Insured) | $ 6,730,000 | $ 4,988,747 | ||
5% 7/1/32 (FSA Insured) | 535,000 | 548,059 | ||
5% 7/1/32 (Pre-Refunded to 7/1/13 @ 100) (c) | 1,365,000 | 1,434,083 | ||
5.125% 7/1/31 (Pre-Refunded to 7/1/11 @ 100) (c) | 8,020,000 | 8,361,572 | ||
Series B: | ||||
5% 7/1/15 (FGIC Insured) | 1,085,000 | 1,143,384 | ||
5% 7/1/36 (FGIC Insured) | 7,800,000 | 8,015,982 | ||
5.5% 7/1/17 (MBIA Insured) | 3,050,000 | 3,373,392 | ||
4.184% 7/1/32 (FSA Insured) (a) | 5,000,000 | 5,000,000 | ||
Detroit Wtr. Supply Sys. Rev.: | ||||
Series A: | ||||
5.25% 7/1/16 (MBIA Insured) | 1,000,000 | 1,078,710 | ||
5.25% 7/1/17 (MBIA Insured) | 2,000,000 | 2,151,220 | ||
5.25% 7/1/21 (MBIA Insured) | 6,035,000 | 6,435,483 | ||
5.5% 7/1/15 (Pre-Refunded to 1/1/10 @ 101) (c) | 3,675,000 | 3,844,785 | ||
5.75% 7/1/11 (MBIA Insured) | 3,050,000 | 3,249,623 | ||
Series C, 5% 7/1/33 (FSA Insured) | 8,500,000 | 8,754,320 | ||
6.5% 7/1/15 (FGIC Insured) | 6,025,000 | 6,900,433 | ||
Dexter Cmnty. Schools 5% 5/1/18 (Liquidity Facility Sumitomo Bank Lease Fin., Inc. (SBLF)) | 1,955,000 | 2,028,782 | ||
Durand Area Schools Gen. Oblig.: | ||||
5% 5/1/27 (FSA Insured) | 1,225,000 | 1,271,832 | ||
5% 5/1/28 (FSA Insured) | 1,250,000 | 1,295,938 | ||
5% 5/1/29 (FSA Insured) | 1,275,000 | 1,316,234 | ||
East Grand Rapids Pub. School District: | ||||
5% 5/1/16 (FSA Insured) | 1,425,000 | 1,491,932 | ||
5% 5/1/17 (FSA Insured) | 1,985,000 | 2,073,452 | ||
5.5% 5/1/17 | 1,690,000 | 1,774,652 | ||
East Lansing School District Gen. Oblig. Series B, 5% 5/1/30 (MBIA Insured) | 3,530,000 | 3,654,503 | ||
Eastern Michigan Univ. Revs. Series 2000 B, 5.625% 6/1/30 (Pre-Refunded to 6/1/10 @ 100) (c) | 1,250,000 | 1,307,938 | ||
Farmington Pub. School District 5% 5/1/18 (FSA Insured) | 4,500,000 | 4,728,465 | ||
Fenton Area Pub. Schools 5% 5/1/14 (FGIC Insured) | 1,775,000 | 1,869,128 | ||
Ferris State Univ. Rev.: | ||||
5% 10/1/16 (MBIA Insured) | 1,255,000 | 1,313,834 | ||
5% 10/1/17 (MBIA Insured) | 1,320,000 | 1,377,710 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Michigan - continued | ||||
Flushing Cmnty. Schools: | ||||
5.25% 5/1/17 (Pre-Refunded to 5/1/13 @ 100) (c) | $ 1,000,000 | $ 1,062,160 | ||
5.25% 5/1/18 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,030,000 | 1,094,025 | ||
Fraser Pub. School District: | ||||
5% 5/1/16 (FSA Insured) | 1,055,000 | 1,112,149 | ||
5% 5/1/17 (FSA Insured) | 1,615,000 | 1,695,895 | ||
Garden City School District: | ||||
5% 5/1/14 (FSA Insured) | 1,210,000 | 1,274,166 | ||
5% 5/1/17 (FSA Insured) | 1,390,000 | 1,454,913 | ||
5% 5/1/19 (FSA Insured) | 1,205,000 | 1,263,611 | ||
Genesee County Gen. Oblig. Series A: | ||||
5% 5/1/17 (MBIA Insured) | 1,355,000 | 1,413,699 | ||
5% 5/1/18 (MBIA Insured) | 1,505,000 | 1,565,140 | ||
Gibraltar School District: | ||||
5% 5/1/16 (FSA Insured) | 1,230,000 | 1,287,441 | ||
5% 5/1/17 (FSA Insured) | 1,230,000 | 1,283,284 | ||
5.5% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,200,000 | 1,284,264 | ||
5.5% 5/1/21 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,200,000 | 1,284,264 | ||
Grand Ledge Pub. Schools District (School Bldg. & Site Proj.): | ||||
5% 5/1/23 (MBIA Insured) | 1,175,000 | 1,229,708 | ||
5% 5/1/24 (MBIA Insured) | 1,300,000 | 1,358,422 | ||
5% 5/1/28 (MBIA Insured) | 4,300,000 | 4,475,827 | ||
Grand Rapids Downtown Dev. Auth. Tax Increment Rev. 0% 6/1/11 (MBIA Insured) | 3,160,000 | 2,685,463 | ||
Grand Rapids San. Swr. Sys. Rev. 5% 1/1/34 (MBIA Insured) | 3,000,000 | 3,099,720 | ||
Grand Rapids Wtr. Supply Sys. 5% 1/1/35 (FGIC Insured) | 5,000,000 | 5,153,400 | ||
Grosse Ile Township School District Unltd. Tax Gen. Oblig.: | ||||
5% 5/1/29 (MBIA Insured) | 1,950,000 | 2,020,220 | ||
5% 5/1/32 (MBIA Insured) | 1,950,000 | 2,015,930 | ||
Hamilton Cmnty. Schools District 5% 5/1/24 | 1,500,000 | 1,509,150 | ||
Haslett Pub. Schools 5% 5/1/16 (MBIA Insured) | 1,100,000 | 1,151,370 | ||
Howell Pub. Schools 0% 5/1/10 (AMBAC Insured) | 1,130,000 | 1,005,757 | ||
Hudsonville Pub. Schools 5% 5/1/16 (FSA Insured) | 1,000,000 | 1,046,700 | ||
Huron Valley School District: | ||||
0% 5/1/10 (FGIC Insured) | 2,500,000 | 2,225,125 | ||
0% 5/1/11 (FGIC Insured) | 5,830,000 | 4,971,766 | ||
0% 5/1/12 (FGIC Insured) | 1,420,000 | 1,159,899 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Michigan - continued | ||||
Huron Valley School District: - continued | ||||
5.25% 5/1/16 | $ 2,450,000 | $ 2,597,074 | ||
Kalamazoo Pub. Schools: | ||||
5% 5/1/17 (FSA Insured) | 3,165,000 | 3,354,678 | ||
5.25% 5/1/16 (FSA Insured) | 1,500,000 | 1,623,075 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | ||||
(Butterworth Hosp. Proj.) Series A, 7.25% 1/15/13 | 3,685,000 | 3,961,817 | ||
(Spectrum Health Proj.) Series A: | ||||
5.375% 1/15/11 | 2,420,000 | 2,471,715 | ||
5.375% 1/15/12 | 2,505,000 | 2,560,310 | ||
L'Anse Creuse Pub. Schools: | ||||
5% 5/1/24 (FSA Insured) | 1,350,000 | 1,395,806 | ||
5.375% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,000,000 | 1,064,280 | ||
5.375% 5/1/20 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,000,000 | 1,064,280 | ||
Lake Orion Cmnty. School District 5.25% 5/1/27 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,150,000 | 1,210,352 | ||
Lansing Bldg. Auth. Rev. 0% 6/1/12 (AMBAC Insured) | 3,000,000 | 2,441,940 | ||
Lawton Cmnty. Schools 5.5% 5/1/19 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,050,000 | 1,112,738 | ||
Michigan Bldg. Auth. Rev.: | ||||
(Facilities Prog.) Series III, 5% 10/15/10 (Escrowed to Maturity) (c) | 1,000,000 | 1,032,860 | ||
Series 1, 5.25% 10/15/16 (FSA Insured) | 5,000,000 | 5,309,400 | ||
Michigan Ctfs. of Prtn. 5.75% 6/1/17 (Pre-Refunded to 6/1/10 @ 100) (c) | 3,000,000 | 3,149,250 | ||
Michigan Gen. Oblig. (Envir. Protection Prog.) 6.25% 11/1/12 | 2,665,000 | 2,860,318 | ||
Michigan Higher Ed. Student Ln. Auth. Rev. Series XII W, 4.875% 9/1/10 (AMBAC Insured) (b) | 3,000,000 | 3,046,680 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
(Ascension Health Cr. Group Proj.) Series A: | ||||
5%, tender 4/1/11 | 2,040,000 | 2,104,342 | ||
6% 11/15/19 (Pre-Refunded to 11/15/09 @ 101) (c) | 10,645,000 | 11,248,556 | ||
(Crittenton Hosp. Proj.) Series A: | ||||
5.5% 3/1/13 | 455,000 | 478,765 | ||
5.5% 3/1/14 | 1,300,000 | 1,368,458 | ||
5.5% 3/1/15 | 1,985,000 | 2,084,032 | ||
(Genesys Reg'l. Med. Hosp. Proj.) Series A, 5.3% 10/1/11 (Escrowed to Maturity) (c) | 1,000,000 | 1,028,080 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Michigan - continued | ||||
Michigan Hosp. Fin. Auth. Rev.: - continued | ||||
(Henry Ford Health Sys. Proj.): | ||||
Series 2003 A, 5.5% 3/1/14 (Pre-Refunded to 3/1/13 @ 100) (c) | $ 2,000,000 | $ 2,138,900 | ||
Series A: | ||||
5% 11/15/09 | 650,000 | 660,810 | ||
5% 11/15/12 | 1,485,000 | 1,534,941 | ||
5% 11/15/14 | 1,000,000 | 1,037,960 | ||
6% 11/15/19 (Pre-Refunded to 11/15/09 @ 101) (c) | 1,945,000 | 2,053,025 | ||
6% 9/1/12 (Escrowed to Maturity) (c) | 1,500,000 | 1,628,235 | ||
(Mercy Health Svcs. Proj.): | ||||
Series 1996 R, 5.375% 8/15/26 (Escrowed to Maturity) (c) | 2,500,000 | 2,516,875 | ||
Series Q: | ||||
5.25% 8/15/10 (Escrowed to Maturity) (c) | 2,195,000 | 2,209,509 | ||
5.375% 8/15/26 (Escrowed to Maturity) (c) | 2,450,000 | 2,466,538 | ||
6% 8/15/08 (Escrowed to Maturity) (c) | 1,130,000 | 1,138,396 | ||
6% 8/15/10 (Escrowed to Maturity) (c) | 1,265,000 | 1,274,399 | ||
Series R, 5.375% 8/15/16 (Escrowed to Maturity) (c) | 2,500,000 | 2,516,875 | ||
(MidMichigan Health Obligated Group Prog.) | 2,000,000 | 2,114,900 | ||
(Oakwood Hosp. Proj.) Series A, 5% 7/15/17 | 1,000,000 | 1,023,750 | ||
(Oakwood Obligated Group Proj.) 5.5% 11/1/11 | 3,000,000 | 3,140,430 | ||
(Saint John Hosp. & Med. Ctr. Proj.) Series A, 6% 5/15/09 (Escrowed to Maturity) (c) | 1,710,000 | 1,770,038 | ||
(Sisters of Mercy Health Corp. Proj.) Series P, 5.375% 8/15/14 (Escrowed to Maturity) (c) | 570,000 | 593,381 | ||
(Sparrow Hosp. Obligated Group Proj.): | ||||
5.5% 11/15/21 (Pre-Refunded to 11/15/11 @ 101) (c) | 1,435,000 | 1,533,541 | ||
5.625% 11/15/31 (Pre-Refunded to 11/15/11 @ 101) (c) | 4,500,000 | 4,831,335 | ||
(Sparrow Hosp. Proj.): | ||||
Series 2007, 5% 11/15/20 | 2,000,000 | 2,045,360 | ||
5% 11/15/17 | 535,000 | 552,002 | ||
5% 11/15/18 | 725,000 | 744,437 | ||
5% 11/15/19 | 1,000,000 | 1,024,330 | ||
(Trinity Health Sys. Proj.) Series 2000 A, 6% 12/1/27 | 1,535,000 | 1,634,069 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Detroit School District Proj.) Series B, 5% 6/1/12 (FSA Insured) | 7,300,000 | 7,592,292 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Michigan - continued | ||||
Michigan Muni. Bond Auth. Rev.: - continued | ||||
(Local Govt. Ln. Prog.): | ||||
Series A, 4.75% 12/1/09 (FGIC Insured) | $ 6,000,000 | $ 6,004,800 | ||
Series CA, 0% 6/15/13 (FSA Insured) | 3,850,000 | 2,993,183 | ||
Series G, 0% 5/1/19 (AMBAC Insured) | 1,865,000 | 1,086,847 | ||
7.5% 11/1/09 (AMBAC Insured) | 15,000 | 15,044 | ||
(State Clean Wtr. Revolving Fund Proj.) 5% 10/1/27 | 3,725,000 | 3,878,582 | ||
5% 10/1/23 | 5,000,000 | 5,135,950 | ||
5.375% 10/1/19 | 2,005,000 | 2,122,353 | ||
Michigan Strategic Fund Exempt Facilities Rev. (Waste Mgmt., Inc. Proj.) 3.75%, tender 8/1/07 (a)(b) | 3,000,000 | 2,998,830 | ||
Michigan Strategic Fund Ltd. Oblig. Rev. (Detroit Edison Co. Proj.): | ||||
Series A, 5.55% 9/1/29 (MBIA Insured) (b) | 1,000,000 | 1,041,340 | ||
Series BB: | ||||
7% 7/15/08 (MBIA Insured) | 2,200,000 | 2,269,828 | ||
7% 5/1/21 (AMBAC Insured) | 8,520,000 | 10,693,793 | ||
Michigan Trunk Line: | ||||
Series A: | ||||
0% 10/1/11 (AMBAC Insured) | 3,630,000 | 3,042,339 | ||
5.5% 11/1/16 | 3,000,000 | 3,300,510 | ||
5.25% 11/1/15 (FGIC Insured) | 5,000,000 | 5,401,700 | ||
5.25% 10/1/16 (FSA Insured) | 3,000,000 | 3,168,210 | ||
Mona Shores School District 6.75% 5/1/10 | 2,220,000 | 2,382,460 | ||
Montague Pub. School District: | ||||
5.5% 5/1/16 | 430,000 | 454,643 | ||
5.5% 5/1/16 (Pre-Refunded to 11/1/11 @ 100) (c) | 575,000 | 609,828 | ||
5.5% 5/1/17 | 430,000 | 454,119 | ||
5.5% 5/1/17 (Pre-Refunded to 11/1/11 @ 100) (c) | 575,000 | 609,828 | ||
5.5% 5/1/19 | 430,000 | 453,422 | ||
5.5% 5/1/19 (Pre-Refunded to 11/1/11 @ 100) (c) | 660,000 | 699,976 | ||
Morenci Area Schools 5.25% 5/1/21 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,410,000 | 1,485,252 | ||
Mount Clemens Cmnty. School District 5.5% 5/1/16 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,000,000 | 1,059,750 | ||
New Haven Cmnty. Schools 5.25% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,175,000 | 1,243,561 | ||
New Lothrop Area Pub. Schools Gen. Oblig. 5% 5/1/35 (FSA Insured) | 1,000,000 | 1,030,120 | ||
North Kent Swr. Auth. Wtr. & Swr. Rev.: | ||||
5% 11/1/19 (MBIA Insured) | 420,000 | 443,020 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Michigan - continued | ||||
North Kent Swr. Auth. Wtr. & Swr. Rev.: - continued | ||||
5% 11/1/20 (MBIA Insured) | $ 490,000 | $ 515,701 | ||
5% 11/1/22 (MBIA Insured) | 1,645,000 | 1,722,266 | ||
5% 11/1/23 (MBIA Insured) | 1,290,000 | 1,347,586 | ||
Northville Pub. Schools: | ||||
Series II: | ||||
5% 5/1/15 (FSA Insured) | 1,525,000 | 1,617,019 | ||
5% 5/1/16 (FSA Insured) | 1,475,000 | 1,543,883 | ||
5% 5/1/17 (FSA Insured) | 3,675,000 | 3,863,197 | ||
Northwestern Michigan Cmnty. College Impt.: | ||||
5.5% 4/1/14 (FGIC Insured) | 285,000 | 294,482 | ||
5.5% 4/1/15 (FGIC Insured) | 170,000 | 175,619 | ||
Okemos Pub. School District: | ||||
0% 5/1/12 (MBIA Insured) | 2,500,000 | 2,046,900 | ||
0% 5/1/13 (MBIA Insured) | 1,700,000 | 1,332,307 | ||
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 | 1,585,417 | ||
Petoskey Pub. School District: | ||||
5% 5/1/14 (MBIA Insured) | 1,430,000 | 1,501,500 | ||
5% 5/1/16 (MBIA Insured) | 1,945,000 | 2,049,038 | ||
Plainwell Cmnty. School District: | ||||
5% 5/1/15 (FSA Insured) | 1,030,000 | 1,088,617 | ||
5% 5/1/16 (FSA Insured) | 1,025,000 | 1,083,333 | ||
5.5% 5/1/14 | 1,000,000 | 1,071,210 | ||
5.5% 5/1/16 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,000,000 | 1,069,230 | ||
Port Huron Area School District County of Saint Clair: | ||||
0% 5/1/08 (Liquidity Facility Michigan School Bond Ln. Fund) | 1,975,000 | 1,913,420 | ||
5.25% 5/1/16 (Pre-Refunded to 11/1/12 @ 100) (c) | 1,175,000 | 1,243,561 | ||
5.25% 5/1/17 (Pre-Refunded to 11/1/12 @ 100) (c) | 2,125,000 | 2,248,994 | ||
5.25% 5/1/18 (Pre-Refunded to 11/1/12 @ 100) (c) | 2,175,000 | 2,301,911 | ||
Riverview Cmnty. School District: | ||||
5% 5/1/14 | 905,000 | 951,897 | ||
5% 5/1/15 | 955,000 | 1,003,906 | ||
5% 5/1/17 | 1,000,000 | 1,043,950 | ||
5% 5/1/18 | 1,000,000 | 1,041,550 | ||
Rochester Cmnty. School District: | ||||
Series II, 5.5% 5/1/16 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,125,000 | 1,193,141 | ||
5% 5/1/19 (MBIA Insured) | 1,475,000 | 1,572,645 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Michigan - continued | ||||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.) Series M, 5.25% 11/15/31 (MBIA Insured) | $ 2,000,000 | $ 2,058,680 | ||
Saginaw Valley State Univ. Rev. 5% 7/1/37 (FSA Insured) | 2,880,000 | 2,966,774 | ||
Saint Clair County Gen. Oblig.: | ||||
5% 4/1/17 (AMBAC Insured) | 1,380,000 | 1,440,830 | ||
5% 4/1/19 (AMBAC Insured) | 1,475,000 | 1,535,637 | ||
Saint Joseph School District 5.5% 5/1/18 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,065,000 | 1,129,507 | ||
South Haven Pub. Schools 5% 5/1/22 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,350,000 | 1,416,569 | ||
South Lyon Cmnty. Schools (School Bldg. and Site Prog.) 5.25% 5/1/15 (FGIC Insured) | 1,000,000 | 1,058,350 | ||
South Redford School District 5% 5/1/16 (MBIA Insured) | 1,125,000 | 1,181,351 | ||
Southfield Pub. Schools: | ||||
Series A: | ||||
5.25% 5/1/17 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,025,000 | 1,088,714 | ||
5.25% 5/1/18 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,025,000 | 1,088,714 | ||
5.25% 5/1/19 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,025,000 | 1,088,714 | ||
5.25% 5/1/20 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,025,000 | 1,088,714 | ||
Series B, 5.125% 5/1/16 (Pre-Refunded to 5/1/14 @ 100) (c) | 2,780,000 | 2,953,027 | ||
Taylor City Bldg. Auth. County of Wayne Bldg. Auth. Pub. Facilities 5% 10/1/21 (MBIA Insured) | 1,735,000 | 1,794,962 | ||
Troy School District: | ||||
5% 5/1/15 | 2,135,000 | 2,244,333 | ||
5% 5/1/15 (MBIA Insured) | 1,000,000 | 1,060,340 | ||
5% 5/1/16 (MBIA Insured) | 1,000,000 | 1,063,720 | ||
Utica Cmnty. Schools: | ||||
5% 5/1/15 (MBIA Insured) | 1,000,000 | 1,060,340 | ||
5% 5/1/16 (MBIA Insured) | 2,000,000 | 2,127,440 | ||
5% 5/1/17 | 3,000,000 | 3,130,170 | ||
5.25% 5/1/15 (Pre-Refunded to 5/1/13 @ 100) (c) | 725,000 | 770,066 | ||
5.375% 5/1/16 (Pre-Refunded to 5/1/13 @ 100) (c) | 2,250,000 | 2,404,328 | ||
5.5% 5/1/17 (Pre-Refunded to 5/1/13 @ 100) (c) | 1,000,000 | 1,075,010 | ||
Waverly Cmnty. School District: | ||||
5% 5/1/17 (FSA Insured) | 3,090,000 | 3,257,385 | ||
5.75% 5/1/16 (Pre-Refunded to 5/1/10 @ 100) (c) | 1,000,000 | 1,048,380 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Michigan - continued | ||||
Wayne Charter County Gen. Oblig. Series 2001 A, 5.5% 12/1/17 (MBIA Insured) | $ 1,000,000 | $ 1,068,820 | ||
West Ottawa Pub. School District 5.25% 5/1/10 (FGIC Insured) | 850,000 | 853,936 | ||
Western Michigan Univ. Rev. 5% 11/15/35 (FGIC Insured) | 5,435,000 | 5,591,202 | ||
Whitehall District Schools 5.5% 5/1/15 (Pre-Refunded to 11/1/11 @ 100) (c) | 1,000,000 | 1,059,750 | ||
Williamston Cmnty. Schools Gen. Oblig. 5% 5/1/18 (FGIC Insured) | 1,000,000 | 1,046,700 | ||
Willow Run Cmnty. Schools County of Washtenaw: | ||||
5% 5/1/17 (FSA Insured) | 1,875,000 | 1,976,569 | ||
5.5% 5/1/16 (Pre-Refunded to 5/1/11 @ 100) (c) | 1,630,000 | 1,718,134 | ||
Woodhaven-Brownstown School District County of Wayne 5.375% 5/1/18 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,875,000 | 1,985,250 | ||
Wyandotte City School District 5.375% 5/1/20 (Pre-Refunded to 5/1/12 @ 100) (c) | 1,050,000 | 1,111,740 | ||
Wyandotte Elec. Rev.: | ||||
5.375% 10/1/14 (MBIA Insured) | 3,485,000 | 3,584,706 | ||
5.375% 10/1/15 (MBIA Insured) | 1,670,000 | 1,717,779 | ||
Wyoming Sewage Disp. Sys. Rev. 5% 6/1/30 | 4,000,000 | 4,142,400 | ||
Zeeland Pub. Schools: | ||||
5% 5/1/16 (FGIC Insured) | 2,035,000 | 2,152,196 | ||
5% 5/1/17 (FGIC Insured) | 1,500,000 | 1,581,255 | ||
5.25% 5/1/16 (MBIA Insured) | 1,050,000 | 1,119,237 | ||
542,597,034 | ||||
Puerto Rico - 1.6% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Hwy. Rev. Series CC, 5.25% 7/1/36 (FSA Insured) | 5,000,000 | 5,534,600 | ||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev. Series L, 5.25% 7/1/41 (CIFG North America Insured) | 2,500,000 | 2,750,375 | ||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series QQ, 5.5% 7/1/18 (XL Cap. Assurance, Inc. Insured) | 1,000,000 | 1,107,910 | ||
9,392,885 | ||||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Virgin Islands - 0.7% | ||||
Virgin Islands Pub. Fin. Auth. Refinery Facilities Rev. 4.7% 7/1/22 (b) | $ 1,400,000 | $ 1,374,296 | ||
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys. Rev. Series A, 5% 7/1/31 | 2,730,000 | 2,740,647 | ||
4,114,943 |
TOTAL INVESTMENT PORTFOLIO - 97.6% (Cost $552,760,898) | 557,840,018 | ||
NET OTHER ASSETS - 2.4% | 13,592,310 | ||
NET ASSETS - 100% | $ 571,432,328 |
Swap Agreements | |||||
Expiration Date | Notional Amount | ||||
Interest Rate Swaps | |||||
Receive quarterly a floating rate based on BMA Municipal Swap Index and pay quarterly a fixed rate equal to 4.125% with Citibank | August 2037 | $ 3,500,000 | $ 84,128 |
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 | 36.3% |
Escrowed/Pre-Refunded | 24.7% |
Water & Sewer | 15.8% |
Special Tax | 7.3% |
Health Care | 5.8% |
Others* (individually less than 5%) | 10.1% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Michigan Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
June 30, 2007 (Unaudited) | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $552,760,898) | $ 557,840,018 | |
Cash | 8,296,164 | |
Receivable for fund shares sold | 251,064 | |
Interest receivable | 6,263,339 | |
Swap agreements, at value | 84,128 | |
Prepaid expenses | 1,257 | |
Other receivables | 85,915 | |
Total assets | 572,821,885 | |
Liabilities | ||
Payable for fund shares redeemed | $ 327,369 | |
Distributions payable | 709,076 | |
Accrued management fee | 175,334 | |
Transfer agent fee payable | 114,290 | |
Other affiliated payables | 37,064 | |
Other payables and accrued expenses | 26,424 | |
Total liabilities | 1,389,557 | |
Net Assets | $ 571,432,328 | |
Net Assets consist of: | ||
Paid in capital | $ 566,149,618 | |
Undistributed net investment income | 149,413 | |
Accumulated undistributed net realized gain (loss) on investments | (29,951) | |
Net unrealized appreciation (depreciation) on investments | 5,163,248 | |
Net Assets, for 49,310,602 shares outstanding | $ 571,432,328 | |
Net Asset Value, offering price and redemption price per share ($571,432,328 ÷ 49,310,602 shares) | $ 11.59 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Michigan Municipal Income Fund
Financial Statements - continued
Statement of Operations
Six months ended June 30, 2007 (Unaudited) | ||
Investment Income | ||
Interest | $ 12,564,704 | |
Expenses | ||
Management fee | $ 1,060,413 | |
Transfer agent fees | 227,887 | |
Accounting fees and expenses | 70,833 | |
Custodian fees and expenses | 4,111 | |
Independent trustees' compensation | 923 | |
Registration fees | 17,706 | |
Audit | 25,585 | |
Legal | 2,358 | |
Miscellaneous | 3,246 | |
Total expenses before reductions | 1,413,062 | |
Expense reductions | (132,710) | 1,280,352 |
Net investment income | 11,284,352 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 248,281 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (11,286,472) | |
Swap agreements | 84,128 | |
Total change in net unrealized appreciation (depreciation) | (11,202,344) | |
Net gain (loss) | (10,954,063) | |
Net increase (decrease) in net assets resulting from operations | $ 330,289 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Six months ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 11,284,352 | $ 22,204,435 |
Net realized gain (loss) | 248,281 | 3,038,896 |
Change in net unrealized appreciation (depreciation) | (11,202,344) | (1,411,938) |
Net increase (decrease) in net assets resulting | 330,289 | 23,831,393 |
Distributions to shareholders from net investment income | (11,319,704) | (22,267,575) |
Distributions to shareholders from net realized gain | (340,595) | (2,876,586) |
Total distributions | (11,660,299) | (25,144,161) |
Share transactions | 52,232,932 | 76,355,990 |
Reinvestment of distributions | 7,345,400 | 16,630,117 |
Cost of shares redeemed | (48,685,497) | (85,289,779) |
Net increase (decrease) in net assets resulting from share transactions | 10,892,835 | 7,696,328 |
Redemption fees | 421 | 1,406 |
Total increase (decrease) in net assets | (436,754) | 6,384,966 |
Net Assets | ||
Beginning of period | 571,869,082 | 565,484,116 |
End of period (including undistributed net investment income of $149,413 and undistributed net investment income of $194,601, respectively) | $ 571,432,328 | $ 571,869,082 |
Other Information Shares | ||
Sold | 4,446,288 | 6,468,719 |
Issued in reinvestment of distributions | 626,288 | 1,409,257 |
Redeemed | (4,156,864) | (7,243,857) |
Net increase (decrease) | 915,712 | 634,119 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended June 30, 2007 | Years ended December 31, | |||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 | 2002 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 11.82 | $ 11.84 | $ 12.11 | $ 12.22 | $ 12.04 | $ 11.47 |
Income from Investment Operations | ||||||
Net investment income D | .229 | .469 | .472 | .491 | .513 | .532 |
Net realized and unrealized gain (loss) | (.222) | .041 | (.155) | (.026) | .180 | .568 |
Total from investment operations | (.007) | .510 | .317 | .465 | .693 | 1.100 |
Distributions from net investment income | (.230) | (.470) | (.472) | (.490) | (.513) | (.530) |
Distributions from net realized gain | (.007) | (.060) | (.115) | (.085) | - | - |
Total distributions | (.237) | (.530) | (.587) | (.575) | (.513) | (.530) |
Redemption fees added to paid in capital D, F | - | - | - | - | - | - |
Net asset value, | $ 11.59 | $ 11.82 | $ 11.84 | $ 12.11 | $ 12.22 | $ 12.04 |
Total Return B, C | .05% | 4.41% | 2.67% | 3.90% | 5.87% | 9.78% |
Ratios to Average Net Assets E | ||||||
Expenses before reductions | .49% A | .49% | .49% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .49% A | .49% | .49% | .50% | .50% | .50% |
Expenses net of all reductions | .45% A | .44% | .45% | .48% | .49% | .48% |
Net investment income | 3.94% A | 3.98% | 3.94% | 4.05% | 4.22% | 4.51% |
Supplemental Data | ||||||
Net assets, | $ 571,432 | $ 571,869 | $ 565,484 | $ 559,883 | $ 561,394 | $ 572,242 |
Portfolio turnover rate | 18% A | 17% | 23% | 12% | 23% | 17% |
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 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.
Semiannual Report
Fidelity Michigan Municipal Money Market Fund
Investment Changes
Maturity Diversification | |||
Days | % of fund's investments 6/30/07 | % of fund's investments 12/31/06 | % of fund's investments 6/30/06 |
0 - 30 | 91.2 | 91.1 | 89.1 |
31 - 90 | 4.1 | 0.9 | 1.7 |
91 - 180 | 2.5 | 0.8 | 7.2 |
181 - 397 | 2.2 | 7.2 | 2.0 |
Weighted Average Maturity | |||
6/30/07 | 12/31/06 | 6/30/06 | |
Fidelity Michigan Municipal Money Market Fund | 18 Days | 26 Days | 21 Days |
All Tax-Free Money Market | 24 Days | 26 Days | 21 Days |
Asset Allocation (% of fund's net assets) | |||||||
As of June 30, 2007 | As of December 31, 2006 | ||||||
![]() | Variable Rate | ![]() | Variable Rate | ||||
![]() | Commercial Paper (including | ![]() | Commercial Paper (including | ||||
![]() | Tender Bonds 1.1% | ![]() | Tender Bonds 0.8% | ||||
![]() | Municipal Notes 1.8% | ![]() | Municipal Notes 4.0% | ||||
![]() | Fidelity Municipal | ![]() | Fidelity Municipal | ||||
![]() | Other Investments 4.4% | ![]() | Other Investments 3.8% | ||||
![]() | Net Other Assets 3.8% | ![]() | Net Other Assets 4.6% |
*Source: iMoneyNet, Inc.
Semiannual Report
Fidelity Michigan Municipal Money Market Fund
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Securities - 96.2% | |||
Principal Amount | Value | ||
Michigan - 96.2% | |||
Allen Park Pub. School District Participating VRDN Series ROC II R4007, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | $ 5,090,000 | $ 5,090,000 | |
Charlotte Hosp. Fin. Auth. Ltd. Oblig. Rev. (Hayes Green Beach Proj.) 3.78%, LOC Fifth Third Bank, Cincinnati, VRDN (a) | 13,675,000 | 13,675,000 | |
Clarkston Cmnty. Schools Participating VRDN Series ROC II R4519, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 6,055,000 | 6,055,000 | |
Dearborn School District Participating VRDN Series Merlots 07 C5, 3.79% (Liquidity Facility Bank of New York, New York) (a)(d) | 5,000,000 | 5,000,000 | |
Delta County Econ. Dev. Corp. Envir. Impt. Rev. Participating VRDN Series PT 2371, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | 3,080,000 | 3,080,000 | |
Detroit City School District Participating VRDN: | |||
ROC II R1033, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 2,300,000 | 2,300,000 | |
Series PA 997, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | 8,000,000 | 8,000,000 | |
Series PT 3126, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | 8,945,000 | 8,945,000 | |
Series ROC II R4004, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 1,995,000 | 1,995,000 | |
Series ROCS RR R 9015, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 3,470,000 | 3,470,000 | |
Detroit Econ. Dev. Corp. Resource Recovery Rev. Participating VRDN Series Merlots 01 A90, 3.87% (Liquidity Facility Wachovia Bank NA) (a)(b)(d) | 2,500,000 | 2,500,000 | |
Detroit Gen. Oblig. Bonds Series A, 5% 4/1/08 (FSA Insured) | 11,775,000 | 11,888,797 | |
Detroit Swr. Disp. Rev.: | |||
Bonds Series C, 5% 7/1/08 (MBIA Insured) | 1,015,000 | 1,027,796 | |
Participating VRDN: | |||
Series GS 06 100 TP, 3.78% (Liquidity Facility DEPFA BANK PLC) (a)(d) | 3,000,000 | 3,000,000 | |
Series MACN 02 G, 3.79% (Liquidity Facility Bank of America NA) (a)(d) | 8,520,000 | 8,520,000 | |
Series Merlots 00 I, 3.79% (Liquidity Facility Wachovia Bank NA) (a)(d) | 15,500,000 | 15,500,000 | |
Series Merlots 01 A103, 3.79% (Liquidity Facility Bank of New York, New York) (a)(d) | 9,965,000 | 9,965,000 | |
Series Merlots 06 B1, 3.79% (Liquidity Facility Wachovia Bank NA) (a)(d) | 5,475,000 | 5,475,000 | |
Series MT 324 3.78% (Liquidity Facility DEPFA BANK PLC) (a)(d) | 15,000,000 | 15,000,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Detroit Swr. Disp. Rev.: - continued | |||
Participating VRDN: | |||
Series PA 1183, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | $ 6,000,000 | $ 6,000,000 | |
Series Putters 3756, 3.78% (Liquidity Facility Dexia Cr. Local de France) (a)(d) | 1,000,000 | 1,000,000 | |
Series RBC I-2, 3.78% (Liquidity Facility Royal Bank of Canada) (a)(d) | 6,000,000 | 6,000,000 | |
Series ROC II R 719 PB, 3.8% (Liquidity Facility Deutsche Postbank AG) (a)(d) | 6,330,000 | 6,330,000 | |
Detroit Wtr. Supply Sys. Rev.: | |||
Bonds Series B, 5.1% 7/1/07 (MBIA Insured) | 1,000,000 | 1,000,000 | |
Participating VRDN: | |||
Series Merlots 00 D, 3.79% (Liquidity Facility Wachovia Bank NA) (a)(d) | 4,500,000 | 4,500,000 | |
Series PT 3903, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | 5,000,000 | 5,000,000 | |
Detroit Wtr. Sys. Rev. Participating VRDN Series EGL 99 2202, 3.79% (Liquidity Facility Bayerische Landesbank (UNGTD)) (a)(d) | 8,200,000 | 8,200,000 | |
East Lansing School District Gen. Oblig. Participating VRDN Series SGA 114, 3.79% (Liquidity Facility Societe Generale) (a)(d) | 6,000,000 | 6,000,000 | |
Fitzgerald Pub. School District Participating VRDN Series Putters 561, 3.79% (Liquidity Facility JPMorgan Chase Bank) (a)(d) | 2,975,000 | 2,975,000 | |
Fraser Pub. School District Participating VRDN Series AAB 05 39, 3.63% tender 12/6/07 (Liquidity Facility ABN-AMRO Bank NV) (a)(d)(e) | 1,515,000 | 1,515,000 | |
Grand Rapids Econ. Dev. Corp. (Cornerstone Univ. Proj.) 3.75%, LOC Nat'l. City Bank Cleveland, VRDN (a) | 1,700,000 | 1,700,000 | |
Grand Rapids San. Swr. Sys. Rev. Impt. Participating VRDN Series EGL 98 2201, 3.8% (Liquidity Facility Citibank NA) (a)(d) | 7,940,000 | 7,940,000 | |
Holland Charter Township Econ. Dev. Corp. Rev. (Chicago Mission Proj.) 3.89%, 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, 3.76%, VRDN (a) | 7,600,000 | 7,600,000 | |
L'Anse Creuse Pub. Schools Participating VRDN Series EGL 06 32 Class A, 3.8% (Liquidity Facility Citibank NA) (a)(d) | 3,750,000 | 3,750,000 | |
Lakeview School District Calhoun County: | |||
Participating VRDN Series PT 1624, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | 7,125,000 | 7,125,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Lakeview School District Calhoun County: - continued | |||
Series B, 3.75% (Michigan Gen. Oblig. Guaranteed), VRDN (a) | $ 6,850,000 | $ 6,850,000 | |
Michigan Bldg. Auth. Rev.: | |||
Bonds Series II, 5.5% 10/15/08 (Pre-Refunded to 10/15/07 @ 101) (c) | 10,000,000 | 10,154,777 | |
Participating VRDN: | |||
Series 06 156, 3.8% (Liquidity Facility Citibank NA) (a)(d) | 7,000,000 | 7,000,000 | |
Series AAB 05 33, 3.78% (Liquidity Facility ABN-AMRO Bank NV) (a)(d) | 5,995,000 | 5,995,000 | |
Series EGL 01 2202, 3.8% (Liquidity Facility Citibank NA) (a)(d) | 3,000,000 | 3,000,000 | |
Series EGL 06 0142, 3.8% (Liquidity Facility Citibank NA) (a)(d) | 7,900,000 | 7,900,000 | |
Series GS 07 34Z, 3.79% (Liquidity Facility Goldman Sachs Group, Inc.) (a)(d) | 6,325,000 | 6,325,000 | |
Series MS 00 481X, 3.79% (Liquidity Facility Morgan Stanley) (a)(d) | 2,670,000 | 2,670,000 | |
Series PT 1954, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | 8,495,000 | 8,495,000 | |
Series PT 2177, 3.78% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | 6,070,000 | 6,070,000 | |
Series PZ 140, 3.8% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | 9,430,000 | 9,430,000 | |
Series ROC II R2064, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 6,965,000 | 6,965,000 | |
Series ROC II R4057, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 2,200,000 | 2,200,000 | |
Series ROC II R4551, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 2,945,000 | 2,945,000 | |
Series ROC II R550, 3.79% (Liquidity Facility Citibank NA) (a)(d) | 1,990,000 | 1,990,000 | |
Series ROCS II R 2111, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 5,135,000 | 5,135,000 | |
Series ROCS RR R 7039, 3.8% (Liquidity Facility Citigroup, Inc.) (a)(d) | 10,305,000 | 10,305,000 | |
Series Solar 06 21, 3.75% (Liquidity Facility U.S. Bank NA, Minnesota) (a)(d) | 14,000,000 | 14,000,000 | |
Series 5, 3.77% 7/12/07, LOC Bank of New York, New York, LOC State Street Bank & Trust Co., Boston, CP | 15,000,000 | 15,000,000 | |
Michigan Comprehensive Trans. Rev. Bonds Series A, 5.25% 5/15/08 (FSA Insured) | 6,500,000 | 6,588,138 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Gen. Oblig.: | |||
Participating VRDN: | |||
Series PT 2021, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | $ 4,380,000 | $ 4,380,000 | |
Series PT 3760, 3.79% (Liquidity Facility Dexia Cr. Local de France) (a)(d) | 1,370,000 | 1,370,000 | |
TAN 4.25% 9/28/07, LOC DEPFA BANK PLC | 8,900,000 | 8,909,322 | |
Michigan Higher Ed. Student Ln. Auth. Rev.: | |||
Participating VRDN: | |||
Series LB 05 L20, 3.82% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(b)(d) | 6,475,000 | 6,475,000 | |
Series Merlots 07 C23, 3.84% (Liquidity Facility Bank of New York, New York) (a)(b)(d) | 4,900,000 | 4,900,000 | |
Series MS 1280, 3.82% (Liquidity Facility Morgan Stanley) (a)(b)(d) | 2,400,000 | 2,400,000 | |
Series PA 1064, 3.8% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(d) | 7,420,000 | 7,420,000 | |
Series XII B, 3.8% (AMBAC Insured), VRDN (a)(b) | 18,500,000 | 18,500,000 | |
Michigan Hosp. Fin. Auth. Rev.: | |||
Participating VRDN Series ROC II R 588 CE, 3.79% (Liquidity Facility Citibank NA) (a)(d) | 1,670,000 | 1,670,000 | |
(Health Care Equip. Ln. Prog.): | |||
Series B, 3.77%, LOC LaSalle Bank Midwest NA, VRDN (a) | 2,200,000 | 2,200,000 | |
Series C, 3.77%, LOC Fifth Third Bank, Cincinnati, VRDN (a) | 7,500,000 | 7,500,000 | |
(Hosp. Equip. Ln. Prog.) Series B, 3.77%, LOC LaSalle Bank Midwest NA, VRDN (a) | 3,600,000 | 3,600,000 | |
(Munising Memorial Hosp. Assoc. Proj.) 3.78%, LOC Banco Santander Central Hispano SA, VRDN (a) | 7,800,000 | 7,800,000 | |
(Trinity Health Sys. Proj.) Series 2000 E, 3.75% (AMBAC Insured), VRDN (a) | 4,150,000 | 4,150,000 | |
Michigan Hsg. Dev. Auth. Multi-family Hsg. Rev. (Hunt Club Apts. Proj.) 3.78%, LOC Fannie Mae, VRDN (a)(b) | 6,345,000 | 6,345,000 | |
Michigan Hsg. Dev. Auth. Rental Hsg. Rev.: | |||
Bonds Series 2007 A, 3.85%, tender 7/2/07 (FSA Insured) (a)(b) | 8,700,000 | 8,700,000 | |
Series 2000 A, 3.74% (MBIA Insured), VRDN (a)(b) | 3,080,000 | 3,080,000 | |
Series 2002 A, 3.75% (MBIA Insured), VRDN (a)(b) | 19,285,000 | 19,285,000 | |
Michigan Hsg. Dev. Auth. Single Family Mtg. Rev.: | |||
Series 1999 B2, 3.78% (MBIA Insured), VRDN (a)(b) | 3,400,000 | 3,400,000 | |
Series 2002 A, 3.78% (MBIA Insured), VRDN (a)(b) | 4,620,000 | 4,620,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Hsg. Dev. Auth. Single Family Mtg. Rev.: - continued | |||
Series B, 3.81% (Liquidity Facility DEPFA BANK PLC), VRDN (a)(b) | $ 7,200,000 | $ 7,200,000 | |
Series C, 3.76% (Liquidity Facility DEPFA BANK PLC), VRDN (a) | 9,750,000 | 9,750,000 | |
Michigan Muni. Bond Auth. Rev.: | |||
Bonds (State Revolving Fund Prog.) 5.125% 10/1/20 (Pre-Refunded to 10/1/07 @ 101) (c) | 10,000,000 | 10,136,476 | |
Participating VRDN: | |||
Series EGL 00 2201, 3.8% (Liquidity Facility Banco Bilbao Vizcaya Argentaria SA) (a)(d) | 3,500,000 | 3,500,000 | |
Series MS 718, 3.79% (Liquidity Facility Morgan Stanley) (a)(d) | 6,077,000 | 6,077,000 | |
Series MSTC 02 204, 3.78% (Liquidity Facility Bear Stearns Companies, Inc.) (a)(d) | 10,395,000 | 10,395,000 | |
Series MT 287, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(d) | 7,000,000 | 7,000,000 | |
RAN Series B2, 4.5% 8/20/07, LOC Bank of Nova Scotia, New York Agcy. | 7,600,000 | 7,608,232 | |
Michigan State Univ. Revs. Series 1998 A2, 3.75% (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, 4.03%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a) | 1,530,000 | 1,530,000 | |
Michigan Strategic Fund Ltd. Oblig. Rev.: | |||
Bonds (Dow Chemical Co. Proj.) Series A-1, 3.93% tender 7/19/07, CP mode (b) | 5,650,000 | 5,650,000 | |
Participating VRDN Series Putters 858Z, 3.83% (Liquidity Facility JPMorgan Chase Bank) (a)(b)(d) | 12,170,000 | 12,170,000 | |
(BC&C Proj.) 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 1,250,000 | 1,250,000 | |
(Biewer of Lansing LLC Proj.) Series 1999, 3.87%, LOC LaSalle Bank Midwest NA, VRDN (a)(b) | 690,000 | 690,000 | |
(Bosal Ind. Proj.) Series 1998, 3.81%, LOC Bank of New York, New York, VRDN (a)(b) | 7,500,000 | 7,500,000 | |
(CJS Properties LLC Proj.) 4.15%, LOC JPMorgan Chase Bank, VRDN (a)(b) | 1,500,000 | 1,500,000 | |
(Conti Properties LLC Proj.) Series 1997, 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 2,200,000 | 2,200,000 | |
(Doss Ind. Dev. Co. Proj.) 4.15%, LOC JPMorgan Chase Bank, VRDN (a)(b) | 1,100,000 | 1,100,000 | |
(Dow Chemical Co. Proj.) 3.93%, VRDN (a) | 2,000,000 | 2,000,000 | |
(Fintex LLC Proj.) Series 2000, 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 1,390,000 | 1,390,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Strategic Fund Ltd. Oblig. Rev.: - continued | |||
(Future Fence Co. Proj.) 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | $ 2,205,000 | $ 2,205,000 | |
(Holland Home Oblig. Group Proj.) 3.77%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a) | 1,000,000 | 1,000,000 | |
(Holland Plastics Corp. Proj.) 3.83%, LOC LaSalle Bank NA, VRDN (a)(b) | 3,680,000 | 3,680,000 | |
(John H. Dekker & Sons Proj.) Series 1998, 3.89%, LOC LaSalle Bank Midwest NA, VRDN (a)(b) | 845,000 | 845,000 | |
(K&M Engineering, Inc. Proj.) 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 1,295,000 | 1,295,000 | |
(LPB LLC Proj.) 4.15%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 2,000,000 | 2,000,000 | |
(Majestic Ind., Inc. Proj.) 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 1,515,000 | 1,515,000 | |
(MANS Proj.) Series A, 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 595,000 | 595,000 | |
(Mid-American Products, Inc. Proj.) Series 1998 3.83%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 1,105,000 | 1,105,000 | |
(PBL Enterprises, Inc. Proj.) Series 1997, 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 1,530,000 | 1,530,000 | |
(Pioneer Laboratories, Inc. Proj.) 3.87%, LOC JPMorgan Chase Bank, VRDN (a)(b) | 3,000,000 | 3,000,000 | |
(S&S LLC Proj.) Series 2000, 3.98%, LOC LaSalle Bank Midwest NA, VRDN (a)(b) | 1,950,000 | 1,950,000 | |
(SBC Ventures LLC Proj.) 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 3,855,000 | 3,855,000 | |
(TEI Invts. LLC Proj.) Series 1997, 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 500,000 | 500,000 | |
(Temperance Enterprise Proj.) Series 1996, 3.9%, LOC Nat'l. City Bank Cleveland, VRDN (a)(b) | 1,360,000 | 1,360,000 | |
(The Spiratex Co. Proj.) Series 1994, 4.3%, LOC JPMorgan Chase Bank, VRDN (a)(b) | 600,000 | 600,000 | |
(The Van Andel Research Institute Proj.) Series 1999, 3.8%, LOC LaSalle Bank Midwest NA, VRDN (a) | 5,000,000 | 5,000,000 | |
(Trilan LLC Proj.) 4.15%, LOC JPMorgan Chase Bank, VRDN (a)(b) | 3,400,000 | 3,400,000 | |
(W.H. Porter, Inc. Proj.) Series 2001, 3.83%, LOC LaSalle Bank Midwest NA, VRDN (a)(b) | 2,590,000 | 2,590,000 | |
(Windcrest Properties LLC Proj.) 3.9%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 3,500,000 | 3,500,000 | |
(YMCA Metropolitan Detroit Proj.) Series 2001, 3.78%, LOC JPMorgan Chase Bank, VRDN (a) | 11,975,000 | 11,975,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Strategic Fund Solid Waste Disp. Rev.: | |||
Participating VRDN Series LB 05 F11, 3.87% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(b)(d) | $ 5,000,000 | $ 5,000,000 | |
(Grayling Gen. Station Proj.) Series 1990, 3.74%, LOC Barclays Bank PLC, VRDN (a)(b) | 19,491,000 | 19,491,000 | |
Michigan Sumitomo Bank Participating VRDN Series BNY 02 3, 3.82% (Liquidity Facility Bank of New York, New York) (a)(b)(d) | 5,500,000 | 5,500,000 | |
Oakland County Econ. Dev. Corp. Ltd. Oblig. Rev.: | |||
(Osmic, Inc. Proj.) Series 2001 A, 3.87%, LOC JPMorgan Chase Bank, VRDN (a)(b) | 6,300,000 | 6,300,000 | |
(Progressive Metal Manufacturing Co. Proj.) 3.89%, LOC Comerica Bank, Detroit, VRDN (a)(b) | 3,800,000 | 3,800,000 | |
Plymouth-Canton Cmnty. School District Participating VRDN Series Putters 582, 3.78% (Liquidity Facility JPMorgan Chase & Co.) (a)(d) | 4,125,000 | 4,125,000 | |
Saint Clair County Econ. Dev. Corp. Poll. Cont. Rev. Participating VRDN Series MS 00 282, 3.79% (Liquidity Facility Morgan Stanley) (a)(d) | 11,895,000 | 11,895,000 | |
Saline Area Schools 3.75% (Michigan Gen. Oblig. Guaranteed), VRDN (a) | 16,000,000 | 16,000,000 | |
Sanilac County Econ. Dev. Corp. (Marlette Cmnty. Hosp. Proj.) Series 2001, 3.78%, LOC Comerica Bank, Detroit, VRDN (a) | 11,555,000 | 11,555,000 | |
Southfield Library Bldg. Auth. Participating VRDN Series ROC II R7521, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 2,640,000 | 2,640,000 | |
Univ. of Michigan Univ. Rev.: | |||
(Med. Svc. Plan Proj.) Series 1995 A, 3.75%, VRDN (a) | 7,400,000 | 7,400,000 | |
(Univ. of Michigan Hosp. Proj.) Series 1995 A, 3.75%, VRDN (a) | 22,680,000 | 22,680,000 | |
Series 1992 A, 3.9%, VRDN (a) | 6,450,000 | 6,450,000 | |
Series F, 3.73% 9/19/07, CP | 7,895,000 | 7,895,000 | |
Series G: | |||
3.75% 7/18/07, CP | 9,100,000 | 9,100,000 | |
3.76% 8/13/07, CP | 12,390,000 | 12,390,000 | |
Van Buren Township Local Dev. Fin. Auth. Participating VRDN Series ROC 4518, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 7,605,000 | 7,605,000 | |
Waterford Econ. Dev. Corp. Ltd. Oblig. Rev. (Canterbury Health Care, Inc. Proj.) 3.78%, LOC KBC Bank NV, VRDN (a) | 6,500,000 | 6,500,000 | |
Wayne County Arpt. Auth. Rev. Participating VRDN: | |||
Series EGL 06 16 Class A, 3.83% (Liquidity Facility Citibank NA) (a)(b)(d) | 4,950,000 | 4,950,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Wayne County Arpt. Auth. Rev. Participating VRDN: - continued | |||
Series EGL 07 0017, 3.81% (Liquidity Facility Bayerische Landesbank (UNGTD)) (a)(b)(d) | $ 8,600,000 | $ 8,600,000 | |
Series EGL 07 0083, 3.81% (Liquidity Facility Bayerische Landesbank (UNGTD)) (a)(b)(d) | 4,320,000 | 4,320,000 | |
Series EGL 720053029 Class A, 3.83% (Liquidity Facility Citibank NA) (a)(b)(d) | 6,600,000 | 6,600,000 | |
Series MACN 05 T, 3.82% (Liquidity Facility Bank of America NA) (a)(b)(d) | 3,640,000 | 3,640,000 | |
Series MT 115, 3.81% (Liquidity Facility Svenska Handelsbanken AB) (a)(b)(d) | 8,835,000 | 8,835,000 | |
Series MT 203, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(b)(d) | 6,500,000 | 6,500,000 | |
Series Putters 1081Z, 3.83% (Liquidity Facility JPMorgan Chase Bank) (a)(b)(d) | 4,750,000 | 4,750,000 | |
Series Putters 836, 3.83% (Liquidity Facility JPMorgan Chase & Co.) (a)(b)(d) | 6,055,000 | 6,055,000 | |
Series ROC II R 353, 3.82% (Liquidity Facility Citibank NA) (a)(b)(d) | 3,970,000 | 3,970,000 | |
Series ROC II R 9009, 3.82% (Liquidity Facility Citigroup, Inc.) (a)(b)(d) | 4,560,000 | 4,560,000 | |
Series ROC II R442, 3.82% (Liquidity Facility Citibank NA) (a)(b)(d) | 9,795,000 | 9,795,000 | |
Whitmore Lake Pub. School District Participating VRDN Series ROC II R4515, 3.79% (Liquidity Facility Citigroup, Inc.) (a)(d) | 3,840,000 | 3,840,000 | |
Zeeland Hosp. Fin. Auth. Rev. (Zeeland Cmnty. Hosp. Proj.) 3.89%, LOC Huntington Nat'l. Bank, Columbus, VRDN (a) | 15,410,000 | 15,410,000 | |
TOTAL INVESTMENT PORTFOLIO - 96.2% (Cost $890,321,538) | 890,321,538 | ||
NET OTHER ASSETS - 3.8% | 35,215,855 | ||
NET ASSETS - 100% | $ 925,537,393 |
Security Type Abbreviations |
CP - COMMERCIAL PAPER |
RAN - REVENUE ANTICIPATION NOTE |
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) 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. |
(d) Provides evidence of ownership in one or more underlying municipal bonds. |
(e) 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 | $ 142,957 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Michigan Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
June 30, 2007 (Unaudited) | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $890,321,538) | $ 890,321,538 | |
Cash | 43,665,269 | |
Receivable for fund shares sold | 13,071,017 | |
Interest receivable | 6,258,583 | |
Distributions receivable from Fidelity Central Funds | 39,585 | |
Prepaid expenses | 1,757 | |
Other receivables | 288,930 | |
Total assets | 953,646,679 | |
Liabilities | ||
Payable for investments purchased | $ 20,298,913 | |
Payable for fund shares redeemed | 7,110,979 | |
Distributions payable | 30,778 | |
Accrued management fee | 280,513 | |
Other affiliated payables | 364,712 | |
Other payables and accrued expenses | 23,391 | |
Total liabilities | 28,109,286 | |
Net Assets | $ 925,537,393 | |
Net Assets consist of: | ||
Paid in capital | $ 925,503,506 | |
Undistributed net investment income | 24,432 | |
Accumulated undistributed net realized gain (loss) on investments | 9,455 | |
Net Assets, for 924,978,462 shares outstanding | $ 925,537,393 | |
Net Asset Value, offering price and redemption price per share ($925,537,393 ÷ 924,978,462 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Michigan Municipal Money Market Fund
Financial Statements - continued
Statement of Operations
Six months ended June 30, 2007 (Unaudited) | ||
Investment Income | ||
Interest | $ 15,619,310 | |
Income from Fidelity Central Funds | 142,957 | |
Total income | 15,762,267 | |
Expenses | ||
Management fee | $ 1,615,084 | |
Transfer agent fees | 674,784 | |
Accounting fees and expenses | 53,825 | |
Custodian fees and expenses | 6,447 | |
Independent trustees' compensation | 1,348 | |
Registration fees | 13,866 | |
Audit | 21,056 | |
Legal | 3,485 | |
Miscellaneous | 3,098 | |
Total expenses before reductions | 2,392,993 | |
Expense reductions | (603,341) | 1,789,652 |
Net investment income | 13,972,615 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (21,254) | |
Net increase in net assets resulting from operations | $ 13,951,361 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Six months ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 13,972,615 | $ 22,253,879 |
Net realized gain (loss) | (21,254) | 41,831 |
Net increase in net assets resulting | 13,951,361 | 22,295,710 |
Distributions to shareholders from net investment income | (13,972,745) | (22,254,630) |
Share transactions at net asset value of $1.00 per share | 1,455,451,476 | 2,424,977,939 |
Reinvestment of distributions | 13,769,109 | 21,875,678 |
Cost of shares redeemed | (1,408,624,822) | (2,276,982,568) |
Net increase (decrease) in net assets and shares resulting from share transactions | 60,595,763 | 169,871,049 |
Total increase (decrease) in net assets | 60,574,379 | 169,912,129 |
Net Assets | ||
Beginning of period | 864,963,014 | 695,050,885 |
End of period (including undistributed net investment income of $24,432 and undistributed net investment income of $24,562, respectively) | $ 925,537,393 | $ 864,963,014 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended June 30, 2007 | Years ended December 31, | |||||
(Unaudited) | 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 | $ 1.00 |
Income from Investment Operations | ||||||
Net investment income | .016 | .030 | .020 | .007 | .006 | .010 |
Net realized and unrealized gain (loss) F | - | - | - | - | - | - |
Total from investment operations | .016 | .030 | .020 | .007 | .006 | .010 |
Distributions from net investment income | (.016) | (.030) | (.020) | (.007) | (.006) | (.010) |
Distributions from net realized gain | - | - | - F | - | - F | - |
Total distributions | (.016) | (.030) | (.020) | (.007) | (.006) | (.010) |
Net asset value, | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return B, C | 1.60% | 3.01% | 1.99% | .73% | .63% | 1.03% |
Ratios to Average Net Assets D, E | ||||||
Expenses before reductions | .55% A | .56% | .56% | .57% | .56% | .56% |
Expenses net of fee waivers, if any | .55% A | .55% | .55% | .57% | .56% | .56% |
Expenses net of all reductions | .41% A | .41% | .46% | .55% | .55% | .52% |
Net investment income | 3.20% A | 2.97% | 1.97% | .72% | .61% | 1.02% |
Supplemental Data | ||||||
Net assets, | $ 925,537 | $ 864,963 | $ 695,051 | $ 608,121 | $ 588,292 | $ 568,762 |
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 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.
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.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2007 (Unaudited)
1. Organization.
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 is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of Michigan.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. 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 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.
3. Significant Accounting Policies.
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 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
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.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day for the Income Fund and trades executed through the end of the current business day for the Money Market Fund. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds 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 Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
Semiannual Report
3. 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, Certain Funds claimed 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.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
Cost for Federal Income Tax | Unrealized | Unrealized | Net Unrealized | |
Fidelity Michigan Municipal Income Fund | $ 552,686,464 | $ 10,618,678 | $ (5,465,124) | $ 5,153,554 |
Fidelity Michigan Municipal Money Market Fund | 890,321,538 | - | - | - |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
New Accounting Pronouncement. 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.
4. Operating Policies.
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.
Swap Agreements. The Income Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.
Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact the Fund.
Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the Fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the Fund's Schedule of Investments under the caption "Swap Agreements."
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $60,119,875 and $52,108,033, respectively.
6. 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 annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual | Group | 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 annualized rates expressed as a percentage of average net assets:
Fidelity Michigan Municipal Income Fund | .08% | | |
Fidelity Michigan Municipal Money Market Fund | .15% |
7. 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 | $703 |
During the period, there were no borrowings on this line of credit.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. 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 Michigan Municipal Income Fund | $ 4,111 | $ 116,730 | $ 11,869 |
Fidelity Michigan Municipal Money | 6,447 | 595,658 | 1,236 |
9. 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.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Michigan Municipal Income Fund / Fidelity Michigan Municipal Money Market Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for each fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of the management fee and total expenses of each fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to each fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for each fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' portfolio managers and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of a fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether each fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured against (i) a broad-based securities market index (bond fund only, as money market funds are typically not compared against a market index), and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. For each fund, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark") (bond fund only), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Michigan Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the first quartile for the one- and five-year periods and the second quartile for the three-year period. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Semiannual Report
Fidelity Michigan Municipal Money Market Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the second quartile for all the periods shown.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 26% would mean that 74% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Michigan Municipal Income Fund
Semiannual Report
Fidelity Michigan Municipal Money Market Fund
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of each fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each fund compared to competitive fund median expenses. Each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each fund's total expenses ranked below its competitive median for 2006.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that each fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and determined that the amount of profit is a fair entrepreneurial profit for the management of each fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
Semiannual Report
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of each fund's management contract, the Board approved amendments to each fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Semiannual 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.
Semiannual 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
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1220 Roseville Parkway
Roseville, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
11943 El Camino Real
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
1200 Wilshire Boulevard
Santa Monica, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 Westview Road
Lone Tree, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
400 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
4671 Town Center Parkway
Jacksonville, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
Palm Beach Gardens, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1572 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
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
Semiannual Report
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
1524 South Lindbergh Blvd.
St. Louis, MO
Nevada
2225 Village Walk Drive
Henderson, NV
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
980 Madison Avenue
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
799 Central Park Avenue
Scarsdale, NY
North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
Durham, NC
Ohio
3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
7493 SW Bridgeport Road
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6560 Fannin Street
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
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
Semiannual Report
Semiannual Report
Semiannual 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
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
MIR-USAN-0807
1.787785.104
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Minnesota Municipal Income
Fund
Semiannual Report
June 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
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. | |
Board Approval of Investment Advisory Contracts and Management Fees | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://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 holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks are currently on pace to register their fifth-straight year of positive returns, although gains could be trimmed if the U.S. economy continues to slow. 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
Semiannual 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 (January 1, 2007 to June 30, 2007).
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.
Beginning | Ending | Expenses Paid | |
Actual | $ 1,000.00 | $ 1,000.90 | $ 2.48 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
* Expenses are equal to the Fund's annualized expense ratio of .50%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes
Top Five Sectors as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 31.2 | 32.9 |
Health Care | 18.9 | 18.8 |
Escrowed/Pre-Refunded | 18.2 | 17.4 |
Electric Utilities | 15.5 | 14.4 |
Transportation | 4.8 | 8.7 |
Weighted Average Maturity as of June 30, 2007 | ||
6 months ago | ||
Years | 5.6 | 5.6 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior period figure reflects this change. |
Duration as of June 30, 2007 | ||
6 months ago | ||
Years | 5.7 | 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 June 30, 2007 | As of December 31, 2006 | ||||||
![]() | AAA 55.2% | ![]() | AAA 60.1% | ||||
![]() | AA,A 34.8% | ![]() | AA,A 33.2% | ||||
![]() | BBB 5.2% | ![]() | BBB 4.7% | ||||
![]() | BB and Below 0.7% | ![]() | BB and Below 0.7% | ||||
![]() | Not Rated 1.4% | ![]() | 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. |
Semiannual Report
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 97.3% | ||||
Principal Amount | Value | |||
Guam - 0.4% | ||||
Guam Ed. Fing. Foundation Series A, 5% 10/1/23 | $ 1,000,000 | $ 1,020,700 | ||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35 | 425,000 | 449,387 | ||
1,470,087 | ||||
Minnesota - 94.7% | ||||
Anoka-Hennepin Independent School District #11: | ||||
Series 2004 B, 5% 2/1/20 | 1,880,000 | 1,941,138 | ||
Series A, 5.75% 2/1/20 (Pre-Refunded to 2/1/10 @ 100) (b) | 3,950,000 | 4,122,141 | ||
Brainerd Independent School District #181 Series A: | ||||
5.375% 2/1/16 (FGIC Insured) | 3,285,000 | 3,485,746 | ||
5.375% 2/1/17 (FGIC Insured) | 4,100,000 | 4,346,697 | ||
5.375% 2/1/19 (FGIC Insured) | 2,200,000 | 2,324,124 | ||
Brooklyn Ctr. Independent School District #286 5.1% 2/1/31 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) (b) | 6,000,000 | 6,252,840 | ||
Cambridge Independent School District #911 Gen. Oblig. (Minnesota School District Prog.) Series C, 5% 4/1/14 (MBIA Insured) | 1,200,000 | 1,266,576 | ||
Centennial Independent School District #12 Series A, 5% 2/1/19 (FSA Insured) (Pre-Refunded to 2/1/12 @ 100) (b) | 480,000 | 498,245 | ||
Chaska Elec. Rev. (Generating Facilities Proj.) Series A: | ||||
5.25% 10/1/20 | 2,000,000 | 2,113,440 | ||
5.25% 10/1/25 | 1,955,000 | 2,054,861 | ||
Duluth Econ. Dev. Auth. Health Care Facilities Rev. (Benedictine Health Sys. Saint Mary's) 5.25% 2/15/28 | 2,350,000 | 2,393,193 | ||
Elk River Independent School District #728 Series A, 5% 2/1/17 (FGIC Insured) (Pre-Refunded to 8/1/14 @ 100) (b) | 2,000,000 | 2,100,700 | ||
Hopkins Independent School District #270: | ||||
5% 2/1/16 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) (b) | 1,350,000 | 1,401,314 | ||
5.125% 2/1/17 (FGIC Insured) (Pre-Refunded to 2/1/12 @ 100) (b) | 1,015,000 | 1,058,828 | ||
Jackson County Central Independent School District #2895 5% 2/1/21 (Pre-Refunded to 2/1/12 @ 100) (b) | 1,220,000 | 1,266,372 | ||
Lake Superior Independent School District #381 Series A: | ||||
5% 4/1/15 (Pre-Refunded to 4/1/13 @ 100) (b) | 1,970,000 | 2,056,247 | ||
5% 4/1/16 (Pre-Refunded to 4/1/13 @ 100) (b) | 2,065,000 | 2,155,406 | ||
5% 4/1/17 (Pre-Refunded to 4/1/13 @ 100) (b) | 2,165,000 | 2,259,784 | ||
5% 4/1/18 (Pre-Refunded to 4/1/13 @ 100) (b) | 1,260,000 | 1,315,163 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Minnesota - continued | ||||
Lakeville Independent School District #194 Series A, 5% 2/1/22 (FGIC Insured) (Pre-Refunded to 2/1/13 @ 100) (b) | $ 1,000,000 | $ 1,042,640 | ||
Mankato Independent School District #77 Series A, 5% 2/1/12 (FSA Insured) | 1,000,000 | 1,016,280 | ||
Maple Grove Health Care Sys. Rev.: | ||||
5.25% 5/1/24 | 1,500,000 | 1,541,610 | ||
5.25% 5/1/25 | 2,000,000 | 2,050,780 | ||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.: | ||||
(HealthPartners Oblig. Group Proj.): | ||||
5.875% 12/1/29 | 800,000 | 836,584 | ||
6% 12/1/19 | 2,915,000 | 3,144,090 | ||
(HealthSpan Corp. Proj.) Series A, 4.75% 11/15/18 (AMBAC Insured) | 4,500,000 | 4,503,735 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Series 13, 5.25% 1/1/11 (a) | 2,840,000 | 2,913,840 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 2001 C, 5.5% 1/1/16 (Pre-Refunded to 1/1/11 @ 100) (b) | 2,500,000 | 2,626,800 | ||
Series 2005 C, 5% 1/1/31 (FGIC Insured) | 2,090,000 | 2,139,784 | ||
Series A, 5% 1/1/35 (AMBAC Insured) | 8,500,000 | 8,680,880 | ||
Series B: | ||||
5.25% 1/1/11 (AMBAC Insured) (a) | 3,475,000 | 3,529,036 | ||
5.4% 1/1/09 (FGIC Insured) (a) | 1,375,000 | 1,403,944 | ||
5.625% 1/1/13 (FGIC Insured) (a) | 1,000,000 | 1,030,630 | ||
Minneapolis Art Ctr. Facilities Rev. (Walker Art Ctr. Proj.) 5.125% 7/1/21 | 1,250,000 | 1,287,425 | ||
Minneapolis Cmnty. Dev. Agcy. Tax Increment Rev. (Cap. Appreciation) 0% 9/1/08 (MBIA Insured) | 4,600,000 | 4,402,706 | ||
Minneapolis Gen. Oblig. (Sports Arena Proj.) 5.125% 10/1/20 | 2,565,000 | 2,586,007 | ||
Minneapolis Health Care Sys. Rev.: | ||||
(Allina Health Sys. Proj.) Series 2002 A, 6% 11/15/18 | 2,655,000 | 2,854,444 | ||
(Fairview Health Care Sys. Proj.): | ||||
Series B, 5% 5/15/09 (MBIA Insured) | 3,180,000 | 3,243,218 | ||
Series D, 5% 11/15/34 (AMBAC Insured) | 5,120,000 | 5,253,376 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Minnesota - continued | ||||
Minneapolis Spl. School District #1: | ||||
Series A, 5% 2/1/17 (FSA Insured) | $ 2,000,000 | $ 2,092,160 | ||
5% 2/1/15 (MBIA Insured) | 1,020,000 | 1,060,474 | ||
Minneapolis Spl. School District #1 Ctfs. of Prtn. 5.5% 2/1/21 (MBIA Insured) (Pre-Refunded to 2/1/09 @ 100) (b) | 1,305,000 | 1,337,912 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Health Care Sys. Proj.) Series A, 6.375% 11/15/29 | 90,000 | 96,269 | ||
Minnesota Gen. Oblig.: | ||||
(Duluth Arpt. Proj.) Series B, 6.25% 8/1/14 (a) | 900,000 | 900,567 | ||
5% 8/1/16 | 3,500,000 | 3,650,990 | ||
5% 8/1/18 | 10,775,000 | 11,291,334 | ||
5% 11/1/24 | 9,155,000 | 9,529,989 | ||
5.25% 8/1/13 | 545,000 | 558,838 | ||
5.5% 6/1/17 | 2,150,000 | 2,242,343 | ||
Minnesota Higher Ed. Facilities Auth. Rev.: | ||||
(Hamline Univ. Proj.) Series 5B, 5.95% 10/1/19 | 600,000 | 619,056 | ||
(Macalester College Proj.) Series 6P: | ||||
5% 3/1/21 | 2,315,000 | 2,417,624 | ||
5% 3/1/22 | 2,535,000 | 2,641,293 | ||
(Saint John's Univ. Proj.) 5% 10/1/08 | 1,000,000 | 1,013,240 | ||
(Saint Olaf College Proj.) Series 6O, 5% 10/1/15 | 1,000,000 | 1,050,900 | ||
(Univ. of Saint Thomas Proj.) Series 6I, 5% 4/1/23 | 1,000,000 | 1,031,350 | ||
Minnesota Muni. Pwr. Agcy. Elec. Rev. 5.25% 10/1/21 | 8,450,000 | 8,911,455 | ||
Minnesota Retirement Sys. Bldg. Rev.: | ||||
5.55% 6/1/14 | 590,000 | 616,308 | ||
5.6% 6/1/15 | 615,000 | 642,060 | ||
5.65% 6/1/16 | 625,000 | 653,869 | ||
5.7% 6/1/17 | 900,000 | 941,040 | ||
5.75% 6/1/18 | 975,000 | 1,019,967 | ||
5.75% 6/1/19 | 1,050,000 | 1,098,132 | ||
5.8% 6/1/20 | 1,000,000 | 1,046,910 | ||
5.875% 6/1/22 | 2,425,000 | 2,543,025 | ||
Minnesota State Colleges & Univs. Board of Trustees Rev. Series A, 5% 10/1/18 (MBIA Insured) | 1,465,000 | 1,545,824 | ||
Mounds View Independent School District #621 | 3,000,000 | 3,135,960 | ||
North Saint Paul-Maplewood-Oakdale Independent School District 622 Series B: | ||||
5% 2/1/17 (FSA Insured) | 1,525,000 | 1,621,533 | ||
5% 8/1/17 (FSA Insured) | 1,575,000 | 1,674,698 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Minnesota - continued | ||||
Northeast Metropolitan Intermediate School District #916 Ctfs. of Prtn. 5% 1/1/13 | $ 1,000,000 | $ 1,037,360 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev.: | ||||
5.25% 1/1/13 (FSA Insured) | 1,000,000 | 1,037,040 | ||
5.375% 1/1/14 (FSA Insured) | 8,400,000 | 8,723,652 | ||
Northfield Hosp. Rev.: | ||||
5.375% 11/1/26 | 1,000,000 | 1,031,360 | ||
5.5% 11/1/16 | 1,025,000 | 1,078,423 | ||
Osseo Independent School District #279: | ||||
(School Bldg. Proj.): | ||||
Series 2000 A, 5.25% 2/1/21 (Pre-Refunded to 8/1/10 @ 100) (b) | 2,625,000 | 2,722,729 | ||
Series A: | ||||
5.75% 2/1/11 (Pre-Refunded to 8/1/10 @ 100) (b) | 2,420,000 | 2,545,501 | ||
5.75% 2/1/12 (Pre-Refunded to 8/1/10 @ 100) (b) | 3,100,000 | 3,257,108 | ||
Series A, 5.25% 2/1/14 (FSA Insured) | 2,100,000 | 2,209,536 | ||
Series B, 5% 2/1/13 | 2,000,000 | 2,045,920 | ||
Owatonna Pub. Utils. Commission Pub. Utils. Rev.: | ||||
5% 1/1/11 (AMBAC Insured) | 720,000 | 744,883 | ||
5% 1/1/13 (AMBAC Insured) | 800,000 | 838,272 | ||
5% 1/1/15 (AMBAC Insured) | 715,000 | 747,411 | ||
Prior Lake Independent School District #719 | 900,000 | 933,993 | ||
Ramsey County Gen. Oblig. Series A, 5% 2/1/18 | 1,530,000 | 1,602,583 | ||
Robbinsdale Independent School District #281: | ||||
5% 2/1/16 (FSA Insured) | 2,410,000 | 2,501,556 | ||
5% 2/1/16 (Pre-Refunded to 2/1/12 @ 100) (b) | 1,015,000 | 1,053,580 | ||
5% 2/1/17 (FSA Insured) | 2,535,000 | 2,624,891 | ||
5% 2/1/18 (FSA Insured) | 2,520,000 | 2,604,067 | ||
Rochester Elec. Util. Rev. Series 2007 C: | ||||
4.5% 12/1/23 (MBIA Insured) | 2,000,000 | 1,974,800 | ||
5% 12/1/30 | 2,000,000 | 2,071,260 | ||
Rochester Health Care Facilities Rev.: | ||||
(Mayo Foundation Proj.): | ||||
Series A, 5.5% 11/15/27 | 4,755,000 | 4,851,527 | ||
5% 11/15/36 | 2,000,000 | 2,016,980 | ||
(Mayo Foundation/Mayo Med. Ctr. Proj.) Series I, 5.9% 11/15/09 | 1,000,000 | 1,042,580 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Minnesota - continued | ||||
Roseville Independent School District #623 (School District Cr. Enhancement Prog.) Series A, 5% 2/1/15 (FSA Insured) | $ 400,000 | $ 412,912 | ||
Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A: | ||||
5.75% 5/1/26 (FSA Insured) | 7,020,000 | 7,380,196 | ||
5.875% 5/1/30 (FSA Insured) | 4,000,000 | 4,218,440 | ||
6.25% 5/1/20 (FSA Insured) | 2,760,000 | 2,941,056 | ||
Saint Cloud Hosp. Facilities Rev. (Saint Cloud Hosp. Proj.) Series B, 5% 7/1/20 (AMBAC Insured) | 1,000,000 | 1,005,870 | ||
Saint Louis Park Health Care Facilities Rev. (Park Nicollet Health Services Proj.) Series B, 5.5% 7/1/25 | 2,000,000 | 2,095,580 | ||
Saint Michael Independent School District #885 5% 2/1/27 (Pre-Refunded to 2/1/12 @ 100) (b) | 5,500,000 | 5,709,055 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev.: | ||||
(HealthPartners Oblig. Group Proj.): | ||||
5% 5/15/16 | 300,000 | 307,539 | ||
5.25% 5/15/17 | 325,000 | 338,393 | ||
5.25% 5/15/36 | 1,000,000 | 1,008,030 | ||
(Regions Hosp. Proj.) 5.3% 5/15/28 | 1,250,000 | 1,260,038 | ||
Saint Paul Hsg. & Redev. Auth. Hosp. Rev. (Healtheast Proj.) 6% 11/15/30 | 2,000,000 | 2,175,040 | ||
Saint Paul Independent School District #625: | ||||
Series 2000 A, 5.5% 2/1/21 (Pre-Refunded to 2/1/10 @ 100) (b) | 1,060,000 | 1,099,782 | ||
Series A, 5% 2/1/17 (FSA Insured) | 220,000 | 229,321 | ||
Series B: | ||||
5% 2/1/16 (FSA Insured) | 1,025,000 | 1,082,451 | ||
5% 2/1/17 (FSA Insured) | 1,300,000 | 1,367,678 | ||
5% 2/1/18 (FSA Insured) | 395,000 | 410,741 | ||
Series C, 5% 2/1/21 | 1,000,000 | 1,031,680 | ||
Saint Paul Port Auth. 5% 3/1/37 | 1,500,000 | 1,535,685 | ||
Saint Paul Port Auth. Lease Rev.: | ||||
(HealthEast Midway Campus Proj.) Series 2003 A, 5.75% 5/1/25 | 2,000,000 | 2,059,680 | ||
(Regions Hosp. Package Proj.) Series 1: | ||||
5% 8/1/12 | 410,000 | 414,740 | ||
5% 8/1/13 | 430,000 | 434,919 | ||
5% 8/1/14 | 455,000 | 460,660 | ||
5% 8/1/15 | 480,000 | 486,024 | ||
5% 8/1/16 | 500,000 | 506,165 | ||
Series 2003 11, 5.25% 12/1/20 | 3,000,000 | 3,154,560 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Minnesota - continued | ||||
Saint Paul Port Auth. Lease Rev.: - continued | ||||
Series 2003 12: | ||||
5.125% 12/1/27 | $ 5,000,000 | $ 5,174,850 | ||
5.25% 12/1/18 | 3,685,000 | 3,879,052 | ||
Shakopee Health Care Facilities Rev. (Saint Francis Reg'l. Med. Ctr. Proj.) 5.25% 9/1/34 | 2,520,000 | 2,578,640 | ||
South Washington County Independent School District #833 Series A: | ||||
5.4% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (b) | 3,925,000 | 4,063,749 | ||
5.5% 2/1/19 (Pre-Refunded to 2/1/10 @ 100) (b) | 1,000,000 | 1,037,530 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.: | ||||
(Cap. Appreciation): | ||||
Series 1994 A, 0% 1/1/21 (MBIA Insured) | 14,670,000 | 7,901,702 | ||
Series A, 0% 1/1/19 (MBIA Insured) | 5,210,000 | 3,100,158 | ||
Series 2002 A, 5% 1/1/12 (AMBAC Insured) | 2,660,000 | 2,772,731 | ||
Series A: | ||||
5.25% 1/1/15 (AMBAC Insured) | 1,000,000 | 1,073,510 | ||
5.25% 1/1/16 (AMBAC Insured) | 4,360,000 | 4,703,437 | ||
Spring Lake Park Independent School District #16: | ||||
Series A, 5% 2/1/29 (FSA Insured) | 4,000,000 | 4,137,920 | ||
Series B: | ||||
5% 2/1/15 (MBIA Insured) | 2,085,000 | 2,181,807 | ||
5% 2/1/16 (MBIA Insured) | 2,230,000 | 2,331,264 | ||
5% 2/1/17 (MBIA Insured) | 2,400,000 | 2,501,688 | ||
Suburban Hennepin Reg'l. Park District 5% 2/1/12 | 1,000,000 | 1,016,130 | ||
Univ. of Minnesota Spl. Purp. Rev. 5% 8/1/29 | 4,000,000 | 4,141,480 | ||
Virginia Hsg. & Redev. Auth. Health Care Facility Lease Rev. 5.25% 10/1/25 | 440,000 | 445,540 | ||
Washington County Gen. Oblig. 5.5% 2/1/21 (Pre-Refunded to 2/1/10 @ 100) (b) | 1,450,000 | 1,504,419 | ||
Watertown Independent School District #111 Series A, 5% 2/1/22 (FSA Insured) | 1,495,000 | 1,559,479 | ||
Wayzata Independent School District #284 Series B, 5% 2/1/16 (FSA Insured) | 1,005,000 | 1,061,330 | ||
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev. Series A: | ||||
5% 1/1/16 (FSA Insured) | 1,000,000 | 1,061,020 | ||
5% 1/1/30 (MBIA Insured) | 3,000,000 | 3,075,150 | ||
6.375% 1/1/16 (Escrowed to Maturity) (b) | 1,220,000 | 1,324,639 | ||
324,536,216 | ||||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Puerto Rico - 1.6% | ||||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A, 5.5% 10/1/40 (Escrowed to Maturity) (b) | $ 645,000 | $ 678,340 | ||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series HH, 5.25% 7/1/29 (Pre-Refunded to 7/1/10 @ 101) (b) | 3,700,000 | 3,879,006 | ||
Puerto Rico Govt. Dev. Bank Series B, 5% 12/1/12 | 1,000,000 | 1,034,380 | ||
5,591,726 | ||||
Virgin Islands - 0.6% | ||||
Virgin Islands Pub. Fin. Auth. Refinery Facilities Rev. 4.7% 7/1/22 (a) | 800,000 | 785,312 | ||
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys. Rev. Series A, 5% 7/1/25 | 1,250,000 | 1,264,700 | ||
2,050,012 |
TOTAL INVESTMENT PORTFOLIO - 97.3% (Cost $331,246,558) | 333,648,041 | ||
NET OTHER ASSETS - 2.7% | 9,090,434 | ||
NET ASSETS - 100% | $ 342,738,475 |
Legend |
(a) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(b) 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 | 31.2% |
Health Care | 18.9% |
Escrowed/Pre-Refunded | 18.2% |
Electric Utilities | 15.5% |
Others* (individually less than 5%) | 16.2% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
June 30, 2007 (Unaudited) | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $331,246,558) | $ 333,648,041 | |
Cash | 3,872,575 | |
Receivable for fund shares sold | 1,278,999 | |
Interest receivable | 5,223,060 | |
Prepaid expenses | 768 | |
Other receivables | 34,383 | |
Total assets | 344,057,826 | |
Liabilities | ||
Payable for fund shares redeemed | $ 792,811 | |
Distributions payable | 310,463 | |
Accrued management fee | 103,657 | |
Other affiliated payables | 86,999 | |
Other payables and accrued expenses | 25,421 | |
Total liabilities | 1,319,351 | |
Net Assets | $ 342,738,475 | |
Net Assets consist of: | ||
Paid in capital | $ 338,911,252 | |
Undistributed net investment income | 115,573 | |
Accumulated undistributed net realized gain (loss) on investments | 1,310,167 | |
Net unrealized appreciation (depreciation) on investments | 2,401,483 | |
Net Assets, for 30,734,933 shares outstanding | $ 342,738,475 | |
Net Asset Value, offering price and redemption price per share ($342,738,475 ÷ 30,734,933 shares) | $ 11.15 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Six months ended June 30, 2007 (Unaudited) | ||
Investment Income | ||
Interest | $ 7,410,781 | |
Expenses | ||
Management fee | $ 620,423 | |
Transfer agent fees | 127,111 | |
Accounting fees and expenses | 43,792 | |
Custodian fees and expenses | 2,440 | |
Independent trustees' compensation | 541 | |
Registration fees | 20,312 | |
Audit | 25,017 | |
Legal | 614 | |
Miscellaneous | 1,907 | |
Total expenses before reductions | 842,157 | |
Expense reductions | (75,880) | 766,277 |
Net investment income | 6,644,504 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,345,834 | |
Change in net unrealized appreciation (depreciation) on investment securities | (7,628,046) | |
Net gain (loss) | (6,282,212) | |
Net increase (decrease) in net assets resulting from operations | $ 362,292 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Six months ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 6,644,504 | $ 13,616,629 |
Net realized gain (loss) | 1,345,834 | 2,077,750 |
Change in net unrealized appreciation (depreciation) | (7,628,046) | (1,933,906) |
Net increase (decrease) in net assets resulting | 362,292 | 13,760,473 |
Distributions to shareholders from net investment income | (6,634,238) | (13,592,533) |
Distributions to shareholders from net realized gain | - | (1,917,084) |
Total distributions | (6,634,238) | (15,509,617) |
Share transactions | 35,360,513 | 39,438,182 |
Reinvestment of distributions | 4,782,613 | 11,156,135 |
Cost of shares redeemed | (27,088,715) | (55,909,894) |
Net increase (decrease) in net assets resulting from share transactions | 13,054,411 | (5,315,577) |
Redemption fees | 555 | 3,930 |
Total increase (decrease) in net assets | 6,783,020 | (7,060,791) |
Net Assets | ||
Beginning of period | 335,955,455 | 343,016,246 |
End of period (including undistributed net investment income of $115,573 and undistributed net investment income of $105,307, respectively) | $ 342,738,475 | $ 335,955,455 |
Other Information Shares | ||
Sold | 3,136,239 | 3,470,661 |
Issued in reinvestment of distributions | 423,807 | 981,407 |
Redeemed | (2,399,884) | (4,923,898) |
Net increase (decrease) | 1,160,162 | (471,830) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended June 30, 2007 | Years ended December 31, | |||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 | 2002 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 11.36 | $ 11.42 | $ 11.62 | $ 11.69 | $ 11.62 | $ 11.19 |
Income from Investment Operations | ||||||
Net investment income D | .222 | .459 | .460 | .458 | .467 | .509 |
Net realized and unrealized gain (loss) | (.210) | .004 | (.162) | (.012) | .133 | .431 |
Total from investment operations | .012 | .463 | .298 | .446 | .600 | .940 |
Distributions from net investment income | (.222) | (.458) | (.460) | (.459) | (.464) | (.510) |
Distributions from net realized gain | - | (.065) | (.038) | (.057) | (.066) | - |
Total distributions | (.222) | (.523) | (.498) | (.516) | (.530) | (.510) |
Redemption fees | - | - | - | - | - | - |
Net asset value, | $ 11.15 | $ 11.36 | $ 11.42 | $ 11.62 | $ 11.69 | $ 11.62 |
Total Return B, C | .09% | 4.15% | 2.61% | 3.92% | 5.27% | 8.57% |
Ratios to Average Net Assets E | ||||||
Expenses before reductions | .50% A | .50% | .51% | .51% | .51% | .51% |
Expenses net of fee waivers, if any | .50% A | .50% | .51% | .51% | .51% | .51% |
Expenses net of all reductions | .46% A | .47% | .48% | .49% | .49% | .49% |
Net investment income | 3.96% A | 4.04% | 3.99% | 3.95% | 4.00% | 4.45% |
Supplemental Data | ||||||
Net assets, | $ 342,738 | $ 335,955 | $ 343,016 | $ 355,461 | $ 343,880 | $ 344,435 |
Portfolio turnover rate | 12% A | 15% | 15% | 12% | 15% | 25% |
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 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.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2007 (Unaudited)
1. Organization.
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.
2. Significant Accounting Policies.
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
2. 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. The Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
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 claimed 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 federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 5,301,183 | |
Unrealized depreciation | (2,786,216) | |
Net unrealized appreciation (depreciation) | $ 2,514,967 | |
Cost for federal income tax purposes | $ 331,133,074 |
Semiannual Report
2. Significant Accounting Policies - continued
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 Pronouncement. 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.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $25,812,389 and $19,355,023, 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 annualized 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 annualized rate of .08% of average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - 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 $414 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 2,440 and $73,440, 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.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Minnesota Municipal Income Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Minnesota Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the second quartile for the one- and five-year periods and the third quartile for the three-year period. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Semiannual Report
Fidelity Minnesota Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of the fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the fund's total expenses ranked below its competitive median for 2006.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
Semiannual Report
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
Fidelity Investments Money
Management Inc.
Fidelity International
Investment Advisors
Fidelity International
Investment Advisors (U.K.) Limited
Fidelity Research & Analysis Company
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
MNF-USAN-0807
1.787786.104
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Municipal Income
Fund
Semiannual Report
June 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Note to Shareholders | An explanation of the changes to the fund. | |
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. | |
Board Approval of Investment Advisory Contracts and Management Fees | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://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 holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks are currently on pace to register their fifth-straight year of positive returns, although gains could be trimmed if the U.S. economy continues to slow. 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
Semiannual Report
Note to Shareholders:
On March 15, 2007, the Board of Trustees agreed to present a proposal to shareholders to merge Fidelity® Florida Municipal Income Fund into Fidelity Municipal Income Fund. Shareholders of Florida Municipal Income are expected to meet on September 19, 2007, to vote on the proposal. If approved, the merger is expected to be completed by the end of October 2007.
The note to shareholders is not a solicitation of any proxy. For a free copy of the Proxy Statement describing the Reorganization (and containing important information about fees, expenses and risk considerations) and the Prospectus for Fidelity Municipal Income Fund, please call 1-800-544-3198 after July 23, 2007. The Prospectus/Proxy Statement also will be available for free on the Securities and Exchange Commission's Web site (www.sec.gov).
Semiannual 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 (January 1, 2007 to June 30, 2007).
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Semiannual Report
Shareholder Expense Example - continued
Beginning | Ending | Expenses Paid | |
Actual | $ 1,000.00 | $ 999.60 | $ 2.33 |
Hypothetical (5% return per year before expenses) | $ 1,000.00 | $ 1,022.46 | $ 2.36 |
* Expenses are equal to the Fund's annualized expense ratio of .47%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Semiannual Report
Investment Changes
Top Five States as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
Illinois | 14.1 | 13.2 |
New York | 14.1 | 13.6 |
California | 13.9 | 13.0 |
Texas | 11.1 | 12.9 |
Massachusetts | 5.9 | 6.7 |
Top Five Sectors as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 38.0 | 37.6 |
Electric Utilities | 11.0 | 11.2 |
Special Tax | 9.8 | 9.7 |
Water & Sewer | 9.5 | 8.1 |
Transportation | 9.3 | 8.8 |
Weighted Average Maturity as of June 30, 2007 | ||
6 months ago | ||
Years | 6.8 | 6.6 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior period figure reflects this change. |
Duration as of June 30, 2007 | ||
6 months ago | ||
Years | 6.8 | 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 June 30, 2007 | As of December 31, 2006 | ||||||
![]() | AAA 67.7% | ![]() | AAA 67.0% | ||||
![]() | AA,A 26.1% | ![]() | AA,A 26.9% | ||||
![]() | BBB 5.0% | ![]() | BBB 6.1% | ||||
![]() | BB and Below 0.2% | ![]() | BB and Below 0.1% | ||||
![]() | Not Rated 1.0% | ![]() | Not Rated 0.6% | ||||
![]() | 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.
Semiannual Report
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 100.0% | ||||
Principal Amount (000s) | Value | |||
Alabama - 0.2% | ||||
Alabama Pub. School & College Auth. Rev. Series 1999 C, 5.75% 7/1/18 | $ 2,000 | $ 2,096 | ||
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09 | 2,700 | 2,730 | ||
Jefferson County Ltd. Oblig. School Warrants Series A, 5.5% 1/1/22 | 5,500 | 5,841 | ||
10,667 | ||||
Alaska - 0.2% | ||||
Alaska Student Ln. Corp. Ed. Ln. Rev.: | ||||
Series A-2, 5% 6/1/12 (h) | 1,000 | 1,036 | ||
Series A-3: | ||||
5% 6/1/10 (h) | 3,500 | 3,583 | ||
5% 6/1/12 (h) | 5,000 | 5,180 | ||
9,799 | ||||
Arizona - 0.7% | ||||
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.): | ||||
Series A, 5% 1/1/21 | 2,000 | 2,053 | ||
Series B, 4.398% 1/1/37 (e) | 3,000 | 2,988 | ||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/15 (FSA Insured) | 1,815 | 1,913 | ||
Arizona Student Ln. Acquisition Auth. Student Ln. Rev. Sr. Series A1, 5.9% 5/1/24 (h) | 2,000 | 2,090 | ||
Chandler Indl. Dev. Auth. Indl. Dev. Rev. (Intel Corp. Proj.) 4.375%, tender 12/1/10 (e)(h) | 5,500 | 5,535 | ||
Maricopa County Indl. Dev. Auth. Hosp. Facilities Rev. (Samaritan Health Svcs. Proj.) Series A, 7% 12/1/16 (Escrowed to Maturity) (i) | 2,000 | 2,366 | ||
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.: | ||||
5% 7/1/20 (MBIA Insured) | 5,000 | 5,238 | ||
5% 7/1/29 (MBIA Insured) | 2,000 | 2,065 | ||
Scottsdale Indl. Dev. Auth. Hosp. Rev. (Scottsdale Health Care Proj.) 5.8% 12/1/31 (Pre-Refunded to 12/1/11 @ 101) (i) | 3,250 | 3,498 | ||
Tucson Gen. Oblig. Series 2002, 5% 7/1/10 | 2,585 | 2,662 | ||
Univ. of Arizona Univ. Revs. Series 2005 A: | ||||
5% 6/1/18 (AMBAC Insured) | 1,225 | 1,290 | ||
5% 6/1/31 (AMBAC Insured) | 2,025 | 2,094 | ||
33,792 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Arkansas - 0.2% | ||||
Little Rock School District Series 2001 C, 5.25% 2/1/33 (FSA Insured) | $ 6,500 | $ 6,687 | ||
North Little Rock Elec. Rev. Series A, 6.5% 7/1/10 (MBIA Insured) | 3,165 | 3,283 | ||
9,970 | ||||
California - 13.9% | ||||
ABC Unified School District 0% 8/1/28 (FGIC Insured) | 3,925 | 1,433 | ||
Cabrillo Unified School District Series A, 0% 8/1/20 (AMBAC Insured) | 4,275 | 2,362 | ||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A, 5.5% 5/1/15 (AMBAC Insured) | 8,800 | 9,438 | ||
California Econ. Recovery Series A, 5% 7/1/15 (MBIA Insured) | 11,700 | 12,350 | ||
California Edl. Facilities Auth. Rev. (Loyola Marymount Univ. Proj.): | ||||
0% 10/1/16 (MBIA Insured) | 2,140 | 1,439 | ||
0% 10/1/17 (MBIA Insured) | 2,050 | 1,308 | ||
0% 10/1/18 (MBIA Insured) | 1,675 | 1,017 | ||
0% 10/1/22 (MBIA Insured) | 5,000 | 2,467 | ||
California Gen. Oblig.: | ||||
Series 1999, 5.75% 12/1/12 (FGIC Insured) | 5,000 | 5,277 | ||
Series 2007: | ||||
5.625% 5/1/20 | 210 | 220 | ||
5.625% 5/1/20 (Pre-Refunded to 5/1/10 @ 101) (i) | 345 | 365 | ||
5% 3/1/15 | 7,000 | 7,368 | ||
5% 8/1/19 | 34,110 | 35,694 | ||
5% 8/1/20 | 15,000 | 15,637 | ||
5% 3/1/26 | 5,100 | 5,240 | ||
5% 6/1/27 (AMBAC Insured) | 4,100 | 4,230 | ||
5% 9/1/27 | 10,500 | 10,795 | ||
5% 2/1/31 (MBIA Insured) | 4,500 | 4,614 | ||
5% 9/1/31 | 24,500 | 25,095 | ||
5% 12/1/31 (MBIA Insured) | 5,595 | 5,749 | ||
5% 9/1/32 | 11,995 | 12,277 | ||
5% 8/1/33 | 9,725 | 9,923 | ||
5% 9/1/33 | 20,200 | 20,661 | ||
5% 8/1/35 | 17,750 | 18,092 | ||
5% 9/1/35 | 27,200 | 27,779 | ||
5.125% 9/1/12 | 2,000 | 2,065 | ||
5.125% 11/1/24 | 4,300 | 4,463 | ||
5.125% 2/1/26 | 2,500 | 2,587 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5.25% 2/1/15 | $ 10,000 | $ 10,590 | ||
5.25% 2/1/15 | 8,300 | 8,790 | ||
5.25% 2/1/16 | 4,300 | 4,542 | ||
5.25% 2/1/19 | 5,620 | 5,902 | ||
5.25% 2/1/20 | 2,000 | 2,101 | ||
5.25% 2/1/24 | 4,000 | 4,173 | ||
5.25% 2/1/27 (MBIA Insured) | 3,700 | 3,865 | ||
5.25% 2/1/28 | 8,500 | 8,844 | ||
5.25% 11/1/28 | 4,485 | 4,673 | ||
5.25% 2/1/33 | 16,300 | 16,863 | ||
5.25% 12/1/33 | 160 | 167 | ||
5.5% 4/1/28 | 10 | 11 | ||
5.5% 4/1/30 | 5 | 5 | ||
5.5% 4/1/30 (Pre-Refunded to 4/1/14 @ 100) (i) | 700 | 762 | ||
5.5% 11/1/33 | 39,600 | 42,113 | ||
California Health Facilities Fing. Auth. Rev. (Cedars-Sinai Med. Ctr. Proj.): | ||||
5% 11/15/09 | 400 | 409 | ||
5% 11/15/13 | 1,000 | 1,043 | ||
California Hsg. Fin. Agcy. Rev. Series 1983 A, 0% 2/1/15 | 187 | 102 | ||
California Poll. Cont. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A1, 4.7%, tender 4/1/12 (e)(h) | 1,000 | 1,001 | ||
California Pub. Works Board Lease Rev.: | ||||
(Butterfield State Office Complex Proj.) Series 2005 A, 5.25% 6/1/30 | 14,000 | 14,540 | ||
(Various California State Univ. Projs.) Series A, 5.25% 12/1/13 | 5,000 | 5,006 | ||
Series 2005 H: | ||||
5% 6/1/16 | 6,000 | 6,283 | ||
5% 6/1/17 | 5,000 | 5,219 | ||
5% 6/1/18 | 10,300 | 10,708 | ||
Series 2005 J, 5% 1/1/17 | 6,000 | 6,279 | ||
Series B: | ||||
5.25% 11/1/24 (XL Cap. Assurance, Inc. Insured) | 1,575 | 1,667 | ||
5.25% 11/1/26 (XL Cap. Assurance, Inc. Insured) | 2,860 | 3,022 | ||
California Statewide Communities Dev. Auth. Poll. Cont. Rev. (Southern California Edison Co.) 4.1%, tender 4/1/13 (XL Cap. Assurance, Inc. Insured) (e) | 5,000 | 4,995 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
California - continued | ||||
California Statewide Communities Dev. Auth. Rev. (Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (e) | $ 3,500 | $ 3,440 | ||
Clovis Pub. Fing. Auth. Wastewtr. Rev. 5% 8/1/35 (MBIA Insured) | 9,400 | 9,676 | ||
East Bay Muni. Util. District Wtr. Sys. Rev. Series 2005 A, 5% 6/1/35 (MBIA Insured) | 4,400 | 4,540 | ||
Encinitas Union School District: | ||||
0% 8/1/20 (MBIA Insured) | 3,500 | 1,934 | ||
0% 8/1/21 (MBIA Insured) | 2,810 | 1,474 | ||
Foothill/Eastern Trans. Corridor Agcy. Toll Road Rev.: | ||||
Series A, 5% 1/1/35 (MBIA Insured) | 5,070 | 5,140 | ||
0% 1/15/27 (a) | 2,500 | 2,330 | ||
5% 1/15/16 (MBIA Insured) | 2,800 | 2,897 | ||
5.75% 1/15/40 | 6,300 | 6,553 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | ||||
Series 2003 A1, 5% 6/1/21 (Pre-Refunded to 6/1/13 @ 100) (i) | 310 | 314 | ||
Series A, 5% 6/1/45 | 35,695 | 36,020 | ||
Series A1, 5% 6/1/33 | 3,005 | 2,912 | ||
Los Angeles Cmnty. Redev. Agcy. Lease Rev. (Vermont Manchester Social Svcs. Proj.): | ||||
5% 9/1/18 (AMBAC Insured) | 1,000 | 1,046 | ||
5% 9/1/19 (AMBAC Insured) | 2,545 | 2,654 | ||
Los Angeles Dept. of Wtr. & Pwr. Rev. Series A1, 5% 7/1/35 (FSA Insured) | 4,000 | 4,130 | ||
Los Angeles Dept. of Wtr. & Pwr. Wtrwks. Rev.: | ||||
Series 2001 A, 5.125% 7/1/41 | 5,000 | 5,089 | ||
Series A, 5.125% 7/1/41 (MBIA Insured) | 9,985 | 10,218 | ||
Los Angeles Unified School District: | ||||
Series A, 5.5% 7/1/15 (MBIA Insured) | 6,155 | 6,646 | ||
Series F, 5% 7/1/18 (FSA Insured) | 10,000 | 10,452 | ||
Metropolitan Wtr. District of Southern California Wtrwks. Rev. Series 2005 A, 5% 7/1/35 (FSA Insured) | 5,970 | 6,173 | ||
Modesto Irrigation District Elec. Rev. Series A, 9.625% 1/1/11 (Escrowed to Maturity) (i) | 2,240 | 2,482 | ||
Monrovia Unified School District Series B, 0% 8/1/29 (FGIC Insured) | 4,525 | 1,568 | ||
Monterey County Ctfs. of Prtn. 5% 8/1/19 (AMBAC Insured) | 2,320 | 2,457 | ||
North City West School Facilities Fing. Auth. Spl. Tax Subseries C, 5% 9/1/19 (AMBAC Insured) | 3,015 | 3,192 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
California - continued | ||||
Oxnard Fing. Auth. Wastewtr. Rev. (Redwood Trunk Swr. and Headworks Proj.) Series A, 5% 6/1/29 (FGIC Insured) | $ 2,795 | $ 2,884 | ||
Placer County Wtr. Agcy. Rev. (Middle Fork Proj.) Series A, 3.75% 7/1/12 | 3,340 | 3,341 | ||
Regents of the Univ. of California Rev.: | ||||
(Ltd. Proj.) Series B, 5% 5/15/20 (FSA Insured) | 2,200 | 2,301 | ||
(UCLA Med. Ctr. Proj.): | ||||
Series A: | ||||
5.5% 5/15/15 (AMBAC Insured) | 2,990 | 3,208 | ||
5.5% 5/15/16 (AMBAC Insured) | 3,155 | 3,392 | ||
5.5% 5/15/17 (AMBAC Insured) | 3,325 | 3,575 | ||
5.5% 5/15/19 (AMBAC Insured) | 3,700 | 3,961 | ||
5.5% 5/15/22 (AMBAC Insured) | 1,000 | 1,067 | ||
5.5% 5/15/23 (AMBAC Insured) | 1,025 | 1,093 | ||
Series B: | ||||
5.5% 5/15/15 (AMBAC Insured) | 5,105 | 5,570 | ||
5.5% 5/15/16 (AMBAC Insured) | 6,500 | 7,092 | ||
5.5% 5/15/17 (AMBAC Insured) | 6,860 | 7,485 | ||
Series K: | ||||
5% 5/15/17 (MBIA Insured) | 2,815 | 2,997 | ||
5% 5/15/19 (MBIA Insured) | 5,170 | 5,469 | ||
5% 5/15/20 (MBIA Insured) | 10,000 | 10,533 | ||
5% 5/15/22 | 1,000 | 1,044 | ||
San Diego Unified School District (Election of 1998 Proj.) Series E2, 5.5% 7/1/25 (FSA Insured) | 10,000 | 11,331 | ||
San Francisco City & County Pub. Util. Commission Wtr. Rev. Series A, 5% 11/1/32 (MBIA Insured) | 2,700 | 2,777 | ||
San Joaquin County Ctfs. of Prtn. (County Administration Bldg. Proj.) 5% 11/15/18 (MBIA Insured) | 3,495 | 3,692 | ||
San Mateo County Cmnty. College District Series A, 0% 9/1/26 (FGIC Insured) | 5,430 | 2,201 | ||
Torrance Ctfs. of Prtn. (Refing. & Pub. Impt. Proj.) Series B, 5.25% 6/1/34 (AMBAC Insured) | 4,475 | 4,697 | ||
Union Elementary School District: | ||||
Series A, 0% 9/1/19 (FGIC Insured) | 1,750 | 1,014 | ||
Series B, 0% 9/1/22 (FGIC Insured) | 1,500 | 743 | ||
Val Verde Unified School District Ctfs. of Prtn.: | ||||
5% 1/1/30 (FGIC Insured) | 1,495 | 1,540 | ||
5% 1/1/30 (Pre-Refunded to 1/1/15 @ 100) (i) | 705 | 751 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
California - continued | ||||
Washington Township Health Care District Rev. Series A: | ||||
5% 7/1/18 | $ 1,185 | $ 1,210 | ||
5% 7/1/27 | 1,840 | 1,850 | ||
653,775 | ||||
Colorado - 2.5% | ||||
Colorado Ctfs. of Prtn. (UCDHSC Fitzsimons Academic Proj.) Series B, 5% 11/1/17 (MBIA Insured) | 2,475 | 2,611 | ||
Colorado Health Facilities Auth. Retirement Hsg. Rev. (Liberty Heights Proj.) 0% 7/15/22 (Escrowed to Maturity) (i) | 32,610 | 16,343 | ||
Colorado Health Facilities Auth. Rev.: | ||||
(Volunteers of America Care Proj.) Series A, 5.3% 7/1/37 | 2,600 | 2,539 | ||
Series 2001: | ||||
6.5% 11/15/31 (Pre-Refunded to 11/15/11 @ 101) (i) | 5,040 | 5,592 | ||
6.625% 11/15/26 (Pre-Refunded to 11/15/11 @ 101) (i) | 2,700 | 3,009 | ||
Colorado Springs Arpt. Rev. Series C: | ||||
0% 1/1/09 (MBIA Insured) | 1,655 | 1,560 | ||
0% 1/1/10 (MBIA Insured) | 1,500 | 1,351 | ||
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 | 34,859 | ||
Dawson Ridge Metropolitan District #1: | ||||
Series 1992 A, 0% 10/1/22 (Escrowed to Maturity) (i) | 32,490 | 16,126 | ||
Series 1992 B, 0% 10/1/17 (Escrowed to Maturity) (i) | 7,900 | 5,019 | ||
Denver Health & Hosp. Auth. Healthcare Rev. Series A: | ||||
5% 12/1/13 | 3,005 | 3,076 | ||
6.25% 12/1/33 (Pre-Refunded to 12/1/14 @ 100) (i) | 2,000 | 2,271 | ||
Douglas and Elbert Counties School District #RE1: | ||||
5.75% 12/15/20 (FGIC Insured) | 1,500 | 1,644 | ||
5.75% 12/15/22 (FGIC Insured) | 1,000 | 1,093 | ||
E-470 Pub. Hwy. Auth. Rev.: | ||||
Series 2000 A, 5.75% 9/1/29 (Pre-Refunded to 9/1/10 @ 102) (i) | 10,000 | 10,718 | ||
Series B: | ||||
0% 9/1/15 (MBIA Insured) | 3,600 | 2,528 | ||
0% 9/1/20 (MBIA Insured) | 11,100 | 6,055 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Colorado - continued | ||||
Northwest Pkwy Pub. Hwy. Auth. Sr. Series A: | ||||
5.5% 6/15/15 (AMBAC Insured) | $ 1,000 | $ 1,071 | ||
5.5% 6/15/19 (AMBAC Insured) | 1,000 | 1,068 | ||
118,533 | ||||
District Of Columbia - 0.9% | ||||
District of Columbia Gen. Oblig.: | ||||
Series 2005 A, 5.25% 6/1/27 (MBIA Insured) | 13,200 | 13,434 | ||
Series B, 0% 6/1/12 (MBIA Insured) | 8,800 | 7,112 | ||
District of Columbia Rev. (George Washington Univ. Proj.) Series A, 5.75% 9/15/20 (MBIA Insured) | 12,600 | 13,163 | ||
District of Columbia Wtr. & Swr. Auth. Pub. Util. Rev. Series A, 5.5% 10/1/41 (FGIC Insured) | 8,835 | 9,591 | ||
43,300 | ||||
Florida - 2.5% | ||||
Boynton Beach Util. Sys. Rev. 5.5% 11/1/19 (FGIC Insured) | 3,300 | 3,672 | ||
Brevard County School Board Ctfs. of Prtn. Series B: | ||||
5% 7/1/24 (AMBAC Insured) | 1,365 | 1,406 | ||
5% 7/1/25 (AMBAC Insured) | 3,540 | 3,658 | ||
Broward County School Board Ctfs. of Prtn. Series A: | ||||
5% 7/1/17 (FGIC Insured) | 1,000 | 1,055 | ||
5% 7/1/19 (FGIC Insured) | 3,700 | 3,884 | ||
Escambia City Health Facilities Auth. Rev. (Ascension Health Cr. Group Proj.) Series 2002 C, 5.75% 11/15/32 | 4,200 | 4,472 | ||
Florida Board of Ed. Pub. Ed. Series B, 5.5% 6/1/15 (FGIC Insured) | 3,655 | 3,915 | ||
Florida Gen. Oblig. (Dept. of Trans. Right of Way Proj.) Series A, 5% 7/1/33 | 1,495 | 1,531 | ||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys. - Sunbelt Proj.): | ||||
Series A, 5% 11/15/17 | 1,200 | 1,230 | ||
Series G: | ||||
5% 11/15/16 | 1,050 | 1,086 | ||
5.125% 11/15/17 | 2,845 | 2,951 | ||
5.125% 11/15/18 | 1,000 | 1,035 | ||
3.95%, tender 9/1/12 (e) | 14,445 | 14,167 | ||
Jacksonville Elec. Auth. Rev. (Third Installment Proj.) Series 73, 6.8% 7/1/12 (Escrowed to Maturity) (i) | 2,140 | 2,274 | ||
JEA Elec. Sys. Rev. Series 3A, 5% 10/1/41 (FSA Insured) | 10,800 | 11,014 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Florida - continued | ||||
Marco Island Util. Sys. Rev. 5% 10/1/33 (MBIA Insured) | $ 2,200 | $ 2,248 | ||
Miami Health Facilities Auth. Sys. Rev. Series C, 5.125% 11/15/24 | 1,450 | 1,484 | ||
Miami-Dade County Aviation Rev. (Miami Int'l. Arpt. Proj.) Series B, 5% 10/1/37 (FGIC Insured) | 6,000 | 6,102 | ||
Miami-Dade County Expressway Auth. Series B, 5.25% 7/1/25 (FGIC Insured) | 2,200 | 2,330 | ||
Miami-Dade County Gen. Oblig. (Bldg. Better Communities Prog.) 5% 7/1/35 (FGIC Insured) | 1,565 | 1,605 | ||
Miami-Dade County School Board Ctfs. of Prtn.: | ||||
Series A: | ||||
5% 8/1/18 (AMBAC Insured) (d) | 4,000 | 4,144 | ||
5% 8/1/20 (AMBAC Insured) (d) | 2,500 | 2,572 | ||
5% 8/1/21 (AMBAC Insured) (d) | 5,095 | 5,229 | ||
5% 8/1/22 (AMBAC Insured) (d) | 3,325 | 3,410 | ||
Series B, 5%, tender 5/1/11 (MBIA Insured) (e) | 3,600 | 3,712 | ||
Miami-Dade County School District 5% 2/15/15 (MBIA Insured) | 8,790 | 9,267 | ||
Orange County Health Facilities Auth. Rev. (Adventist Health Sys. - Sunbelt Proj.) 5.625% 11/15/32 (Pre-Refunded to 11/15/12 @ 101) (i) | 2,000 | 2,162 | ||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev. 6% 4/1/09 (AMBAC Insured) (h) | 8,090 | 8,353 | ||
Seminole County School Board Ctfs. of Prtn. Series A: | ||||
5% 7/1/16 (MBIA Insured) | 1,645 | 1,729 | ||
5% 7/1/20 (MBIA Insured) | 1,745 | 1,812 | ||
Tallahassee Energy Sys. Rev. 5% 10/1/35 (MBIA Insured) | 3,065 | 3,146 | ||
Tampa Wtr. & Swr. Rev. 6% 10/1/17 (FSA Insured) | 1,000 | 1,147 | ||
Univ. of Central Florida Athletics Assoc., Inc. Ctfs. of Prtn. Series A, 5% 10/1/35 (FGIC Insured) | 1,000 | 1,021 | ||
118,823 | ||||
Georgia - 2.8% | ||||
Atlanta Wtr. & Wastewtr. Rev.: | ||||
5% 11/1/37 (FSA Insured) | 38,395 | 39,482 | ||
5% 11/1/43 (FSA Insured) | 57,750 | 59,097 | ||
Augusta Wtr. & Swr. Rev. 5.25% 10/1/39 (FSA Insured) | 12,100 | 12,662 | ||
Colquitt County Dev. Auth. Rev. Series C, 0% 12/1/21 (Escrowed to Maturity) (i) | 4,665 | 2,409 | ||
Fulton County Wtr. & Swr. Rev. 6.375% 1/1/14 (FGIC Insured) | 140 | 152 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Georgia - continued | ||||
Gainesville & Hall County Hosp. Auth. Rev. (Northeast Georgia Health Sys., Inc. Proj.) 5.5% 5/15/31 (Pre-Refunded to 5/1/11 @ 100) (i) | $ 4,500 | $ 4,739 | ||
Richmond County Dev. Auth. Rev.: | ||||
(Southern Care Corp. Facility Proj.) Series A, 0% 12/1/21 (Escrowed to Maturity) (i) | 5,615 | 2,900 | ||
Series C, 0% 12/1/21 (Escrowed to Maturity) (i) | 2,200 | 1,136 | ||
Savannah Econ. Dev. Auth. Rev. (Southern Care Corp. Proj.) Series C, 0% 12/1/21 (Escrowed to Maturity) (i) | 17,000 | 8,780 | ||
Valdosta & Lowndes County Hosp. (South Georgia Med. Ctr. Proj.) 5% 10/1/20 | 1,570 | 1,614 | ||
132,971 | ||||
Hawaii - 0.5% | ||||
Hawaii Arpt. Sys. Rev.: | ||||
Series 2000 A, 5.75% 7/1/21 (FGIC Insured) | 2,640 | 2,781 | ||
Series 2000 B, 8% 7/1/11 (FGIC Insured) (h) | 9,250 | 10,539 | ||
Honolulu City & County Board of Wtr. Supply Wtr. Sys. Rev. Series B: | ||||
5% 7/1/12 (MBIA Insured) (h) | 1,690 | 1,746 | ||
5% 7/1/13 (MBIA Insured) (h) | 1,000 | 1,037 | ||
5% 7/1/14 (MBIA Insured) (h) | 1,140 | 1,186 | ||
5% 7/1/15 (MBIA Insured) (h) | 1,430 | 1,490 | ||
5.25% 7/1/18 (MBIA Insured) (h) | 3,205 | 3,384 | ||
22,163 | ||||
Illinois - 14.1% | ||||
Boone & Winnebago County Cmnty. Unit School District 200: | ||||
0% 1/1/21 (FGIC Insured) | 1,810 | 966 | ||
0% 1/1/22 (FGIC Insured) | 1,950 | 988 | ||
Chicago Board of Ed. Series A, 0% 12/1/16 (FGIC Insured) | 3,200 | 2,119 | ||
Chicago Gen. Oblig.: | ||||
(City Colleges Proj.): | ||||
0% 1/1/14 (FGIC Insured) | 17,000 | 12,874 | ||
0% 1/1/15 (FGIC Insured) | 20,000 | 14,448 | ||
0% 1/1/26 (FGIC Insured) | 16,000 | 6,669 | ||
0% 1/1/30 (FGIC Insured) | 18,670 | 6,369 | ||
(Neighborhoods Alive 21 Prog.): | ||||
5% 1/1/28 (AMBAC Insured) | 2,000 | 2,049 | ||
5% 1/1/33 (AMBAC Insured) | 3,510 | 3,592 | ||
5% 1/1/43 (AMBAC Insured) | 4,855 | 4,933 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Illinois - continued | ||||
Chicago Gen. Oblig.: - continued | ||||
Series 2000 D, 5.5% 1/1/35 (FGIC Insured) | $ 15,000 | $ 15,584 | ||
Series 2004 A: | ||||
5% 1/1/34 (FSA Insured) | 24,025 | 24,586 | ||
5.25% 1/1/29 (FSA Insured) | 2,500 | 2,615 | ||
Series A: | ||||
5% 1/1/42 (AMBAC Insured) | 18,955 | 19,239 | ||
5.25% 1/1/22 (MBIA Insured) | 2,085 | 2,184 | ||
5.25% 1/1/33 (MBIA Insured) | 2,150 | 2,217 | ||
5.5% 1/1/38 (MBIA Insured) | 5,620 | 5,892 | ||
5.5% 1/1/38 (Pre-Refunded to 1/1/11 @ 101) (i) | 210 | 222 | ||
Series C: | ||||
5% 1/1/35 (MBIA Insured) | 5,700 | 5,827 | ||
5.7% 1/1/30 (FGIC Insured) | 5,760 | 6,051 | ||
5.5% 1/1/40 (FGIC Insured) | 5,520 | 5,762 | ||
Chicago Midway Arpt. Rev. Series B: | ||||
5.25% 1/1/13 (MBIA Insured) (h) | 2,910 | 2,942 | ||
5.25% 1/1/14 (MBIA Insured) (h) | 3,060 | 3,094 | ||
6% 1/1/08 (MBIA Insured) (h) | 2,170 | 2,194 | ||
6% 1/1/10 (MBIA Insured) (h) | 2,435 | 2,463 | ||
6.125% 1/1/11 (MBIA Insured) (h) | 2,580 | 2,610 | ||
Chicago Motor Fuel Tax Rev. Series A: | ||||
5% 1/1/33 (AMBAC Insured) | 3,810 | 3,883 | ||
5.25% 1/1/19 (AMBAC Insured) | 1,780 | 1,879 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 1999, 5.5% 1/1/11 (AMBAC Insured) (h) | 10,000 | 10,411 | ||
Series A: | ||||
5.5% 1/1/16 (AMBAC Insured) (h) | 10,770 | 10,969 | ||
5.6% 1/1/10 (AMBAC Insured) | 4,500 | 4,541 | ||
6.25% 1/1/09 (AMBAC Insured) (h) | 6,040 | 6,171 | ||
Series B: | ||||
5.25% 1/1/14 (FGIC Insured) | 2,000 | 2,118 | ||
5.75% 1/1/30 (AMBAC Insured) | 13,420 | 14,178 | ||
Chicago Park District Series A: | ||||
5.25% 1/1/18 (FGIC Insured) | 4,690 | 4,951 | ||
5.25% 1/1/19 (FGIC Insured) | 3,000 | 3,160 | ||
5.25% 1/1/20 (FGIC Insured) | 2,195 | 2,309 | ||
5.5% 1/1/19 (FGIC Insured) | 475 | 496 | ||
5.5% 1/1/20 (FGIC Insured) | 490 | 511 | ||
Chicago Spl. Trans. Rev. Series 2001: | ||||
5.25% 1/1/31 (Pre-Refunded to 1/1/27 @ 100) (i) | 11,670 | 12,242 | ||
5.5% 1/1/17 (Escrowed to Maturity) (i) | 1,135 | 1,189 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Illinois - continued | ||||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
5% 6/1/20 (AMBAC Insured) | $ 7,000 | $ 7,326 | ||
5% 6/1/21 (AMBAC Insured) | 2,600 | 2,715 | ||
Chicago Wtr. Rev. 0% 11/1/16 (AMBAC Insured) | 7,555 | 5,008 | ||
Cicero Gen. Oblig. 5.25% 12/1/26 (MBIA Insured) | 3,010 | 3,160 | ||
Cook County Gen. Oblig.: | ||||
Series B: | ||||
5% 11/15/15 (MBIA Insured) (d) | 2,500 | 2,643 | ||
5% 11/15/17 (MBIA Insured) (d) | 4,180 | 4,434 | ||
5% 11/15/19 (MBIA Insured) (d) | 2,600 | 2,736 | ||
5.25% 11/15/26 (MBIA Insured) | 2,500 | 2,640 | ||
5.25% 11/15/28 (MBIA Insured) | 1,400 | 1,477 | ||
Series C, 5% 11/15/25 (AMBAC Insured) | 8,400 | 8,650 | ||
DuPage County Forest Preserve District Rev. 0% 11/1/17 | 6,665 | 4,193 | ||
Evanston Gen. Oblig. Series C: | ||||
5.25% 1/1/16 | 1,000 | 1,050 | ||
5.25% 1/1/22 | 2,000 | 2,094 | ||
Franklin Park Village Cook County Gen. Oblig. Series B: | ||||
5% 7/1/17 (AMBAC Insured) | 1,380 | 1,441 | ||
5% 7/1/18 (AMBAC Insured) | 1,450 | 1,509 | ||
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 3.85%, tender 5/1/08 (e)(h) | 5,600 | 5,581 | ||
Hodgkins Tax Increment Rev. 5% 1/1/11 | 2,075 | 2,135 | ||
Illinois Dedicated Tax Rev. Series B, 0% 12/15/18 (AMBAC Insured) | 4,500 | 2,680 | ||
Illinois Dev. Fin. Auth. Retirement Hsg. Regency Park Rev. 0% 7/15/23 (Escrowed to Maturity) (i) | 24,975 | 11,677 | ||
Illinois Dev. Fin. Auth. Rev.: | ||||
(DePaul Univ. Proj.) Series 2004 C, 5.625% 10/1/17 | 2,800 | 3,003 | ||
(Revolving Fund-Master Trust Prog.): | ||||
5.5% 9/1/18 | 5,365 | 5,726 | ||
5.5% 9/1/19 | 4,405 | 4,701 | ||
Illinois Edl. Facilities Auth. Revs.: | ||||
(Northwestern Univ. Proj.) 5% 12/1/38 | 5,740 | 5,844 | ||
(Univ. of Chicago Proj.): | ||||
Series 2005 A: | ||||
5.25% 7/1/41 | 755 | 782 | ||
5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (i) | 305 | 322 | ||
Series A, 5.125% 7/1/38 | 1,585 | 1,609 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Illinois - continued | ||||
Illinois Fin. Auth. Gas Supply Rev. (Peoples Gas Lt. and Coke Co. Proj.) Series A, 4.3%, tender 6/1/16 (AMBAC Insured) (e) | $ 3,860 | $ 3,854 | ||
Illinois Fin. Auth. Rev. (Newman Foundation, Inc. Proj.) 5% 2/1/37 | 10,000 | 10,045 | ||
Illinois Gen. Oblig.: | ||||
First Series: | ||||
5.25% 12/1/17 (FSA Insured) | 2,260 | 2,375 | ||
5.25% 12/1/20 (FSA Insured) | 2,000 | 2,097 | ||
5.375% 12/1/14 (FSA Insured) | 5,000 | 5,319 | ||
5.375% 7/1/15 (MBIA Insured) | 3,700 | 3,909 | ||
5.5% 4/1/16 (FSA Insured) | 1,300 | 1,376 | ||
5.5% 8/1/16 (MBIA Insured) | 13,000 | 13,826 | ||
5.5% 8/1/17 (MBIA Insured) | 7,500 | 7,966 | ||
5.5% 2/1/18 (FGIC Insured) | 1,000 | 1,056 | ||
5.5% 8/1/18 (MBIA Insured) | 5,000 | 5,306 | ||
5.75% 12/1/18 (MBIA Insured) | 1,200 | 1,263 | ||
Series 2006, 5.5% 1/1/31 | 3,000 | 3,442 | ||
5.5% 4/1/17 (MBIA Insured) | 7,065 | 7,326 | ||
5.6% 4/1/21 (MBIA Insured) | 7,500 | 7,780 | ||
5.7% 4/1/16 (MBIA Insured) | 7,350 | 7,663 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Condell Med. Ctr. Proj.): | ||||
6.5% 5/15/30 | 9,000 | 9,428 | ||
7% 5/15/22 | 5,000 | 5,348 | ||
(Lake Forest Hosp. Proj.): | ||||
Series A, 6.25% 7/1/22 | 4,200 | 4,523 | ||
6% 7/1/33 | 3,775 | 3,970 | ||
(Lutheran Gen. Health Care Sys. Proj.) Series C: | ||||
6% 4/1/18 | 3,000 | 3,281 | ||
7% 4/1/14 | 1,500 | 1,709 | ||
(Riverside Health Sys. Proj.) 6.85% 11/15/29 (Pre-Refunded to 11/15/10 @ 101) (i) | 5,025 | 5,508 | ||
(Swedish American Hosp. Proj.) 6.875% 11/15/30 (Pre-Refunded to 5/15/10 @ 101) (i) | 6,965 | 7,499 | ||
6.75% 2/15/15 (Escrowed to Maturity) (i) | 1,000 | 1,073 | ||
Illinois Reg'l. Trans. Auth. Series A, 8% 6/1/17 (AMBAC Insured) | 4,500 | 5,765 | ||
Illinois Sales Tax Rev. 6% 6/15/20 | 4,600 | 4,837 | ||
Illinois Toll Hwy. Auth. Toll Hwy. Rev. Series 2006 A2, 5% 1/1/31 (FSA Insured) | 62,125 | 64,121 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Illinois - continued | ||||
Kane, McHenry, Cook & DeKalb Counties Unit School District #300, Carpentersville: | ||||
0% 12/1/17 (AMBAC Insured) | $ 3,700 | $ 2,324 | ||
0% 12/1/21 (AMBAC Insured) | 5,000 | 2,571 | ||
6.5% 1/1/20 (AMBAC Insured) | 7,865 | 9,456 | ||
Lake County Cmnty. High School District #117, Antioch Series B, 0% 12/1/18 (FGIC Insured) | 7,240 | 4,320 | ||
Lake County Forest Preservation District Series 2007 A, 3.941% 12/15/13 (e) | 2,200 | 2,200 | ||
Lake County Warren Township High School District #121, Gurnee Series C: | ||||
5.5% 3/1/24 (AMBAC Insured) | 2,945 | 3,184 | ||
5.625% 3/1/21 (AMBAC Insured) | 2,505 | 2,738 | ||
5.75% 3/1/19 (AMBAC Insured) | 2,240 | 2,480 | ||
Madison County Cmnty. United School District #007 Series A: | ||||
5% 12/1/14 (FSA Insured) (d) | 1,970 | 2,071 | ||
5% 12/1/16 (FSA Insured) (d) | 2,175 | 2,293 | ||
5% 12/1/17 (FSA Insured) (d) | 1,290 | 1,361 | ||
McHenry & Kane Counties Cmnty. Consolidated School District #158 0% 1/1/19 (FGIC Insured) | 3,000 | 1,779 | ||
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev.: | ||||
(McCormick Place Expansion Proj.): | ||||
Series 2002 A, 5.75% 6/15/41 (MBIA Insured) | 26,420 | 28,372 | ||
Series 2002 B, 0% 6/15/20 (MBIA Insured) (a) | 2,000 | 1,672 | ||
Series A: | ||||
0% 6/15/15 (FGIC Insured) | 15,000 | 10,623 | ||
0% 6/15/19 (FGIC Insured) | 3,225 | 1,880 | ||
0% 6/15/19 (MBIA Insured) | 2,935 | 1,711 | ||
0% 6/15/20 (FGIC Insured) | 3,470 | 1,928 | ||
5% 12/15/28 (MBIA Insured) | 2,000 | 2,045 | ||
5.25% 12/15/10 (AMBAC Insured) | 12,950 | 13,095 | ||
6.65% 6/15/12 (FGIC Insured) | 250 | 251 | ||
Series 2002: | ||||
0% 6/15/13 (Escrowed to Maturity) (i) | 4,155 | 3,238 | ||
0% 6/15/13 (FGIC Insured) | 5,575 | 4,342 | ||
Series A, 0% 12/15/19 (MBIA Insured) | 2,115 | 1,204 | ||
Moline Gen. Oblig. Series A, 5.5% 2/1/17 (FGIC Insured) | 1,000 | 1,063 | ||
Quincy Hosp. Rev.: | ||||
(Blessing Hosp. Proj.) 5% 11/15/16 | 1,200 | 1,232 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Illinois - continued | ||||
Quincy Hosp. Rev.: - continued | ||||
5% 11/15/14 | $ 1,000 | $ 1,027 | ||
5% 11/15/18 | 1,000 | 1,022 | ||
Univ. of Illinois Auxiliary Facilities Sys. Rev.: | ||||
Series A, 0% 4/1/21 (MBIA Insured) | 4,965 | 2,633 | ||
0% 4/1/17 (MBIA Insured) | 16,270 | 10,538 | ||
0% 4/1/20 (MBIA Insured) | 8,000 | 4,465 | ||
Will County Cmnty. Unit School District #365, Valley View 0% 11/1/17 (FSA Insured) | 3,200 | 2,017 | ||
665,433 | ||||
Indiana - 2.3% | ||||
Avon 2000 Cmnty. School Bldg. Corp. 5% 7/15/17 (FSA Insured) | 2,835 | 2,984 | ||
Clark-Pleasant 2004 School Bldg. Corp.: | ||||
5.25% 7/15/23 (FSA Insured) | 1,545 | 1,621 | ||
5.25% 7/15/25 (FSA Insured) | 1,720 | 1,801 | ||
Crown Point Multi-School Bldg. Corp. 0% 1/15/21 (MBIA Insured) | 7,480 | 3,964 | ||
Franklin Township Independent School Bldg. Corp., Marion County: | ||||
5% 7/15/24 (MBIA Insured) | 1,365 | 1,415 | ||
5.25% 7/15/17 (MBIA Insured) | 1,885 | 2,016 | ||
GCS School Bldg. Corp. One 5% 7/15/22 (FSA Insured) | 1,545 | 1,602 | ||
Hammond School Bldg. Corp. 5% 7/15/16 (MBIA Insured) | 1,845 | 1,937 | ||
Hobart Bldg. Corp. 6.5% 1/15/29 (FGIC Insured) | 17,800 | 21,428 | ||
Indiana Bond Bank Series B: | ||||
5% 2/1/19 (MBIA Insured) | 1,940 | 2,014 | ||
5% 2/1/20 (MBIA Insured) | 1,635 | 1,694 | ||
Indiana Dev. Fin. Auth. Rev. 5.95% 8/1/30 (h) | 7,350 | 7,590 | ||
Indiana Dev. Fin. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.7%, tender 10/1/15 (e)(h) | 3,000 | 2,980 | ||
Indiana Health & Edl. Facilities Fing. Auth. Hosp. Rev. Series B: | ||||
5% 2/15/14 | 1,060 | 1,091 | ||
5% 2/15/15 | 1,500 | 1,543 | ||
Indiana Health Facilities Fing. Auth. Hosp. Rev. (Columbus Reg'l. Hosp. Proj.) 7% 8/15/15 (FSA Insured) | 2,500 | 2,799 | ||
Indiana Health Facility Fing. Auth. Rev. (Ascension Health Proj.) Series A-1, 5% 5/1/13 | 3,000 | 3,118 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Indiana - continued | ||||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series A, 5% 1/1/32 (FGIC Insured) | $ 2,500 | $ 2,571 | ||
Indiana Trans. Fin. Auth. Hwy. Rev.: | ||||
Series 1993 A, 0% 6/1/18 (AMBAC Insured) | 1,700 | 1,037 | ||
Series A, 0% 6/1/16 (AMBAC Insured) | 6,470 | 4,361 | ||
Indianapolis Arpt. Auth. Rev. Series A, 5.6% 7/1/15 (FGIC Insured) | 1,000 | 1,011 | ||
Indianapolis Local Pub. Impt. Bond Bank (Indianapolis Arpt. Auth. Proj.) Series 2006 F: | ||||
5% 1/1/16 (AMBAC Insured) (h) | 1,525 | 1,589 | ||
5% 1/1/17 (AMBAC Insured) (h) | 1,700 | 1,769 | ||
5.25% 1/1/14 (AMBAC Insured) (h) | 2,675 | 2,818 | ||
Petersburg Poll. Cont. Rev. (Indianapolis Pwr. & Lt. Co. Proj.): | ||||
5.9% 12/1/24 (h) | 10,000 | 10,590 | ||
5.95% 12/1/29 (h) | 2,000 | 2,117 | ||
Rockport Poll. Cont. Rev. (AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (e) | 4,400 | 4,418 | ||
South Harrison School Bldg. Corp. Series A: | ||||
5.25% 7/15/22 (Pre-Refunded to 1/15/15 @ 100) (i) | 2,820 | 3,034 | ||
5.5% 7/15/21 (Pre-Refunded to 1/15/15 @ 100) (i) | 2,675 | 2,921 | ||
Southmont School Bldg. Corp. 5% 7/15/15 (FGIC Insured) | 2,000 | 2,085 | ||
Vigo County Hosp. Auth. Rev. (Union Hosp., Inc. Proj.): | ||||
5.7% 9/1/37 (c)(d) | 2,000 | 2,012 | ||
5.75% 9/1/42 (c)(d) | 1,000 | 1,005 | ||
Westfield Washington Multi-School Bldg. Corp. Series A: | ||||
5% 7/15/15 (FSA Insured) | 1,360 | 1,436 | ||
5% 7/15/18 (FSA Insured) | 1,500 | 1,565 | ||
Zionsville Cmnty. Schools Bldg. 5% 7/15/20 (FSA Insured) | 1,945 | 2,052 | ||
109,988 | ||||
Iowa - 0.4% | ||||
Iowa Fin. Auth. Hosp. Facilities Rev.: | ||||
6.625% 2/15/12 (Pre-Refunded to 2/15/10 @ 101) (i) | 2,000 | 2,149 | ||
6.75% 2/15/13 (Pre-Refunded to 2/15/10 @ 101) (i) | 1,000 | 1,078 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Iowa - continued | ||||
Iowa Fin. Auth. Hosp. Facilities Rev.: - continued | ||||
6.75% 2/15/14 (Pre-Refunded to 2/15/10 @ 101) (i) | $ 1,280 | $ 1,379 | ||
6.75% 2/15/15 (Pre-Refunded to 2/15/10 @ 101) (i) | 1,000 | 1,078 | ||
6.75% 2/15/17 (Pre-Refunded to 2/15/10 @ 101) (i) | 1,000 | 1,078 | ||
Tobacco Settlement Auth. Tobacco Settlement Rev. 5.3% 6/1/25 (Pre-Refunded to 6/1/11 @ 101) (i) | 10,000 | 10,477 | ||
17,239 | ||||
Kansas - 0.4% | ||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series A, 4.75%, tender 10/1/07 (e) | 7,800 | 7,813 | ||
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 | 4,805 | ||
Topeka Combined Util. Impt. Rev. Series 2005 A: | ||||
6% 8/1/20 (XL Cap. Assurance, Inc. Insured) | 1,200 | 1,368 | ||
6% 8/1/25 (XL Cap. Assurance, Inc. Insured) | 1,100 | 1,243 | ||
6% 8/1/27 (XL Cap. Assurance, Inc. Insured) | 1,235 | 1,392 | ||
16,621 | ||||
Kentucky - 0.7% | ||||
Jefferson County Cap. Projs. Corp. Rev. (Lease Prog.) Series A, 0% 8/15/11 | 5,250 | 4,369 | ||
Louisville & Jefferson County Metropolitan Swr. District Swr. & Drain Sys. Rev. Series A, 5.25% 5/15/37 (FGIC Insured) | 15,750 | 16,594 | ||
Louisville & Jefferson County Reg'l. Arpt. Auth. Arpt. Sys. Rev. Series 2001 A: | ||||
5.25% 7/1/09 (FSA Insured) (h) | 1,545 | 1,581 | ||
5.5% 7/1/10 (FSA Insured) (h) | 3,800 | 3,949 | ||
Owensboro Elec. Lt. & Pwr. Rev. Series B, 0% 1/1/10 (AMBAC Insured) | 7,440 | 6,707 | ||
33,200 | ||||
Louisiana - 1.2% | ||||
Louisiana Gas & Fuel Tax Rev. Series A, 5.375% 6/1/20 (AMBAC Insured) | 3,000 | 3,149 | ||
Louisiana Gen. Oblig. Series 2003 A, 5% 5/1/20 (FGIC Insured) | 1,500 | 1,549 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Louisiana - continued | ||||
Louisiana Pub. Facilities Auth. Rev.: | ||||
(Archdiocese of New Orleans Proj.): | ||||
5% 7/1/20 (CIFG North America Insured) | $ 1,000 | $ 1,037 | ||
5% 7/1/21 (CIFG North America Insured) | 1,000 | 1,034 | ||
(Nineteenth Judicial District Court Proj.): | ||||
5.375% 6/1/32 (FGIC Insured) | 1,900 | 2,014 | ||
5.5% 6/1/41 (FGIC Insured) | 10,000 | 10,767 | ||
Monroe-West Monroe Pub. Trust Fing. Auth. Mtg. Rev. Series C, 0% 8/20/14 | 8,625 | 6,109 | ||
New Orleans Gen. Oblig.: | ||||
0% 9/1/09 (AMBAC Insured) | 16,500 | 15,105 | ||
0% 9/1/11 (AMBAC Insured) | 3,080 | 2,567 | ||
0% 9/1/13 (AMBAC Insured) | 3,350 | 2,544 | ||
0% 9/1/14 (AMBAC Insured) | 3,165 | 2,294 | ||
5% 12/1/29 (MBIA Insured) | 4,690 | 4,810 | ||
Tobacco Settlement Fing. Corp. Series 2001 B, 5.875% 5/15/39 | 1,000 | 1,064 | ||
54,043 | ||||
Maine - 0.1% | ||||
Maine Tpk. Auth. Tpk. Rev. 5.25% 7/1/30 (FSA Insured) | 3,000 | 3,158 | ||
Maryland - 0.3% | ||||
Baltimore Convention Ctr. Hotel Rev. Series A, 5.25% 9/1/39 (XL Cap. Assurance, Inc. Insured) | 6,000 | 6,293 | ||
Maryland Econ. Dev. Corp. Student Hsg. Rev. (Univ. of Maryland, Baltimore County Student Hsg. Proj.): | ||||
5% 6/1/14 (CIFG North America Insured) | 1,020 | 1,075 | ||
5% 6/1/16 (CIFG North America Insured) | 1,000 | 1,061 | ||
5% 6/1/19 (CIFG North America Insured) | 1,500 | 1,577 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev.: | ||||
(Good Samaritan Hosp. Proj.): | ||||
5.75% 7/1/13 (Escrowed to Maturity) (i) | 1,605 | 1,704 | ||
5.75% 7/1/13 (Escrowed to Maturity) (i) | 995 | 1,057 | ||
(Johns Hopkins Health Sys. Proj.) Series B, 5% 5/15/35 | 2,700 | 2,770 | ||
15,537 | ||||
Massachusetts - 5.9% | ||||
Massachusetts Bay Trans. Auth.: | ||||
Series A, 5.25% 7/1/30 | 580 | 597 | ||
Series B, 6.2% 3/1/16 | 3,800 | 4,243 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Massachusetts - continued | ||||
Massachusetts Edl. Fing. Auth. Rev.: | ||||
Series A Issue E, 4.9% 7/1/13 (AMBAC Insured) (h) | $ 2,505 | $ 2,521 | ||
Series B Issue E: | ||||
5.95% 7/1/07 (AMBAC Insured) (h) | 325 | 325 | ||
6.05% 7/1/08 (AMBAC Insured) (h) | 340 | 341 | ||
6.15% 7/1/10 (AMBAC Insured) (h) | 140 | 140 | ||
6.25% 7/1/11 (AMBAC Insured) (h) | 80 | 80 | ||
6.3% 7/1/12 (AMBAC Insured) (h) | 80 | 80 | ||
Massachusetts Fed. Hwy. Series 2000 A: | ||||
5.75% 6/15/12 | 5,000 | 5,276 | ||
5.75% 6/15/13 | 5,000 | 5,287 | ||
Massachusetts Gen. Oblig.: | ||||
Series 2006 D, 5% 8/1/22 (Pre-Refunded to 8/1/16 @ 100) (i) | 1,465 | 1,562 | ||
Series A, 4.149% 5/1/37 (FGIC Insured) (e) | 7,000 | 6,993 | ||
Series E: | ||||
5% 11/1/22 (Pre-Refunded to 11/1/16 @ 100) (i) | 14,500 | 15,479 | ||
5% 11/1/23 (Pre-Refunded to 11/1/16 @ 100) (i) | 2,500 | 2,669 | ||
5% 11/1/24 (Pre-Refunded to 11/1/16 @ 100) (i) | 13,700 | 14,625 | ||
Massachusetts Health & Edl. Facilities Auth. Rev.: | ||||
(Blood Research Institute Proj.) Series A, 6.5% 2/1/22 (j) | 3,685 | 3,692 | ||
(Massachusetts Gen. Hosp. Proj.) Series F, 6.25% 7/1/12 (AMBAC Insured) | 1,770 | 1,856 | ||
(New England Med. Ctr. Hosp. Proj.) Series G, 5.375% 7/1/24 (MBIA Insured) | 3,800 | 3,803 | ||
(South Shore Hosp. Proj.) Series F, 5.75% 7/1/29 | 11,930 | 12,366 | ||
(Tufts Univ. Proj.) Series I, 5.5% 2/15/36 | 10,000 | 10,424 | ||
(Wellesley College Proj.) Series F, 5.125% 7/1/39 | 5,710 | 5,832 | ||
Massachusetts Indl. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series A2: | ||||
0% 8/1/08 | 5,000 | 4,796 | ||
0% 8/1/09 | 21,800 | 20,001 | ||
0% 8/1/10 | 2,000 | 1,757 | ||
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev. Series A, 5% 7/1/10 (Escrowed to Maturity) (i) | 3,010 | 3,009 | ||
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series A: | ||||
5.5% 1/1/12 (AMBAC Insured) (h) | 2,000 | 2,097 | ||
5.5% 1/1/14 (AMBAC Insured) (h) | 2,540 | 2,655 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Massachusetts - continued | ||||
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev. Series A: | ||||
4.5% 8/15/35 (AMBAC Insured) | $ 16,000 | $ 15,287 | ||
5% 8/15/23 (FSA Insured) | 29,965 | 31,241 | ||
5% 8/15/26 (FSA Insured) | 10,000 | 10,391 | ||
5% 8/15/30 (FSA Insured) | 30,000 | 31,070 | ||
5% 8/15/37 (AMBAC Insured) | 15,900 | 16,474 | ||
Massachusetts Tpk. Auth. Metropolitan Hwy. Sys. Rev.: | ||||
Series 1999 A, 5.25% 1/1/29 (AMBAC Insured) | 14,400 | 14,764 | ||
Sr. Series A, 5.125% 1/1/23 (MBIA Insured) | 7,950 | 8,082 | ||
Massachusetts Tpk. Auth. Western Tpk. Rev. Series A, 5.55% 1/1/17 (MBIA Insured) | 8,370 | 8,745 | ||
Massachusetts Wtr. Poll. Abatement Trust Wtr. Poll. Abatement Rev. (MWRA Ln. Prog.) Series A, 5.25% 8/1/13 | 90 | 92 | ||
Springfield Gen. Oblig. 5% 8/1/19 (MBIA Insured) | 7,015 | 7,332 | ||
275,984 | ||||
Michigan - 1.2% | ||||
Carman-Ainsworth Cmnty. School District 5% 5/1/18 (FSA Insured) | 2,175 | 2,277 | ||
Detroit Swr. Disp. Rev. Series B, 5% 7/1/36 (FGIC Insured) | 20,700 | 21,273 | ||
Detroit Wtr. Supply Sys. Rev.: | ||||
Series A, 5.25% 7/1/16 (MBIA Insured) | 1,685 | 1,818 | ||
5.25% 7/1/14 (MBIA Insured) | 1,600 | 1,711 | ||
5.25% 7/1/15 (MBIA Insured) | 2,380 | 2,556 | ||
Ferris State Univ. Rev. 5% 10/1/20 (MBIA Insured) | 3,165 | 3,277 | ||
Fowlerville Cmnty. School District 5.25% 5/1/17 (FGIC Insured) | 1,425 | 1,514 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
(Mercy Health Svcs. Proj.): | ||||
Series Q, 5.375% 8/15/26 (Escrowed to Maturity) (i) | 4,750 | 4,782 | ||
Series W, 5.25% 8/15/27 (Escrowed to Maturity) (i) | 4,000 | 4,046 | ||
(Sisters of Mercy Health Corp. Proj.) Series P, 5.375% 8/15/14 (Escrowed to Maturity) (i) | 420 | 437 | ||
(Trinity Health Sys. Proj.) Series 2000 A, 6% 12/1/27 | 2,000 | 2,129 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.): | ||||
Series M, 5.25% 11/15/31 (MBIA Insured) | 7,000 | 7,205 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Michigan - continued | ||||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.): - continued | ||||
6.25% 1/1/09 | $ 400 | $ 413 | ||
Troy School District 5% 5/1/17 (MBIA Insured) | 2,000 | 2,120 | ||
55,558 | ||||
Minnesota - 1.2% | ||||
Maple Grove Health Care Sys. Rev. 5.25% 5/1/28 | 3,500 | 3,583 | ||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.: | ||||
(Health Partners Oblig. Group Proj.) 6% 12/1/18 | 1,000 | 1,077 | ||
(HealthSpan Corp. Proj.) Series A, 4.75% 11/15/18 (AMBAC Insured) | 9,700 | 9,708 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev. Series A, 5% 1/1/35 (AMBAC Insured) | 4,500 | 4,596 | ||
Minneapolis Health Care Sys. Rev. (Allina Health Sys. Proj.) Series 2002 A, 6% 11/15/23 | 6,000 | 6,439 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Health Care Sys. Proj.) Series A, 6.375% 11/15/29 | 375 | 401 | ||
Saint Cloud Health Care Rev. (Saint Cloud Hosp. Group Oblig. Proj.) Series A, 5.875% 5/1/30 (FSA Insured) | 8,500 | 8,964 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (HealthPartners Oblig. Group Proj.): | ||||
5.25% 5/15/18 | 1,650 | 1,712 | ||
5.25% 5/15/23 | 2,000 | 2,063 | ||
5.25% 5/15/36 | 4,250 | 4,284 | ||
Saint Paul Hsg. & Redev. Auth. Hosp. Rev. (Healtheast Proj.) 6% 11/15/30 | 2,000 | 2,175 | ||
Saint Paul Port Auth. Lease Rev. Series 2003 11: | ||||
5.25% 12/1/18 | 1,710 | 1,800 | ||
5.25% 12/1/19 | 2,850 | 3,002 | ||
Spring Lake Park Independent School District #16 Series A, 5% 2/1/29 (FSA Insured) | 5,525 | 5,716 | ||
55,520 | ||||
Mississippi - 0.1% | ||||
Hinds County Rev. (Mississippi Methodist Hosp. & Rehabilitation Proj.) 5.6% 5/1/12 (AMBAC Insured) | 3,005 | 3,101 | ||
Mississippi Hosp. Equip. & Facilities Auth. (Mississippi Baptist Med. Ctr. Proj.) Series 2007 A, 5% 8/15/14 | 2,500 | 2,574 | ||
5,675 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Missouri - 0.6% | ||||
Missouri Dev. Fin. Board Infrastructure Facilities Rev. (City of Branson-Branson Landing Proj.) Series 2005 A, 6% 6/1/20 | $ 2,125 | $ 2,372 | ||
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 | 1,909 | ||
Series 2003 A: | ||||
5.125% 1/1/19 | 5,000 | 5,232 | ||
5.25% 1/1/18 | 1,280 | 1,351 | ||
Missouri Health & Edl. Facilities Auth. Edl. Facilities Rev. (Washington Univ. Proj.) Series A, 5% 1/15/37 | 12,100 | 12,536 | ||
Missouri Hsg. Dev. Commission Single Family Mtg. Rev. Series C, 5.5% 3/1/16 (h) | 65 | 65 | ||
Saint Louis Arpt. Rev. Series 2007 B, 5% 7/1/16 (FSA Insured) (h) | 3,500 | 3,641 | ||
27,106 | ||||
Montana - 0.4% | ||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (e) | 10,755 | 10,969 | ||
Montana Board of Invt. (Payroll Tax Workers Compensation Prog.) Series 1996: | ||||
6.875% 6/1/20 (Escrowed to Maturity) (i) | 2,005 | 2,046 | ||
6.875% 6/1/20 (Escrowed to Maturity) (i) | 1,255 | 1,281 | ||
6.875% 6/1/20 (Escrowed to Maturity) (i) | 3,870 | 3,949 | ||
Montana Board of Regents Higher Ed. Rev. (Montana State Univ. Proj.) 5% 11/15/34 (AMBAC Insured) | 2,000 | 2,063 | ||
20,308 | ||||
Nebraska - 0.6% | ||||
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.): | ||||
3.901% 12/1/10 (e) | 2,500 | 2,507 | ||
4.091% 12/1/17 (e) | 7,900 | 7,918 | ||
Omaha Pub. Pwr. District Elec. Rev. Series A: | ||||
5% 2/1/34 | 6,900 | 7,067 | ||
5% 2/1/46 | 10,000 | 10,173 | ||
27,665 | ||||
Nevada - 0.6% | ||||
Clark County Arpt. Rev. Series C: | ||||
5.375% 7/1/17 (AMBAC Insured) (h) | 4,310 | 4,518 | ||
5.375% 7/1/19 (AMBAC Insured) (h) | 1,100 | 1,148 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Nevada - continued | ||||
Clark County Arpt. Rev. Series C: - continued | ||||
5.375% 7/1/21 (AMBAC Insured) (h) | $ 1,600 | $ 1,665 | ||
Henderson Health Care Facilities Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08 | 2,700 | 2,726 | ||
Las Vegas Valley Wtr. District Series B, 5.25% 6/1/17 (MBIA Insured) | 6,285 | 6,623 | ||
Washoe County Gen. Oblig. (Reno Sparks Proj.) | ||||
0% 7/1/12 (FSA Insured) | 4,605 | 3,726 | ||
0% 7/1/13 (FSA Insured) | 4,590 | 3,545 | ||
0% 7/1/14 (FSA Insured) | 3,000 | 2,210 | ||
26,161 | ||||
New Hampshire - 0.1% | ||||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev. (United Illumination Co.) Series A, 3.65%, tender 2/1/10 (AMBAC Insured) (e)(h) | 6,100 | 5,994 | ||
New Jersey - 2.6% | ||||
Garden State Preservation Trust Open Space & Farmland Preservation Series 2005 A, 5.8% 11/1/19 (FSA Insured) | 5,100 | 5,664 | ||
New Jersey Econ. Dev. Auth. Rev.: | ||||
Series 2005 O: | ||||
5.125% 3/1/28 | 6,000 | 6,248 | ||
5.125% 3/1/30 | 5,000 | 5,190 | ||
5.25% 3/1/21 (MBIA Insured) | 2,800 | 2,964 | ||
5.25% 3/1/23 | 4,500 | 4,749 | ||
5.25% 3/1/25 | 9,900 | 10,428 | ||
5.25% 3/1/26 | 11,305 | 11,886 | ||
Series 2005 P, 5.125% 9/1/28 | 2,445 | 2,535 | ||
New Jersey Tobacco Settlement Fing. Corp.: | ||||
4.375% 6/1/19 (Pre-Refunded to 6/1/13 @ 100) (i) | 7,135 | 7,175 | ||
5.75% 6/1/32 (Pre-Refunded to 6/1/12 @ 100) (i) | 7,795 | 8,196 | ||
6.125% 6/1/24 (Pre-Refunded to 6/1/13 @ 100) (i) | 24,850 | 26,329 | ||
6.375% 6/1/32 (Pre-Refunded to 6/1/13 @ 100) (i) | 6,300 | 7,014 | ||
New Jersey Tpk. Auth. Tpk. Rev. Series A, 5% 1/1/25 (FSA Insured) | 6,200 | 6,427 | ||
New Jersey Trans. Trust Fund Auth. Series B, 5.5% 12/15/21 (MBIA Insured) | 5,000 | 5,583 | ||
North Hudson Swr. Auth. Wtr. & Swr. Rev. Series A: | ||||
5.25% 8/1/18 (FGIC Insured) | 3,235 | 3,404 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
New Jersey - continued | ||||
North Hudson Swr. Auth. Wtr. & Swr. Rev. Series A: - continued | ||||
5.25% 8/1/19 (FGIC Insured) | $ 2,735 | $ 2,876 | ||
Union County Impt. Auth. (Juvenile Detention Ctr. Facility Proj.) 5.5% 5/1/28 (FGIC Insured) | 5,560 | 5,987 | ||
122,655 | ||||
New Mexico - 0.4% | ||||
Albuquerque Arpt. Rev.: | ||||
6.7% 7/1/18 (AMBAC Insured) (h) | 2,500 | 2,556 | ||
6.75% 7/1/09 (AMBAC Insured) (h) | 1,150 | 1,205 | ||
6.75% 7/1/10 (AMBAC Insured) (h) | 1,700 | 1,814 | ||
6.75% 7/1/12 (AMBAC Insured) (h) | 1,935 | 2,129 | ||
New Mexico Edl. Assistance Foundation Sr. Series A3, 4.95% 3/1/09 (h) | 5,000 | 5,075 | ||
Univ. of New Mexico Univ. Revs. Series A, 6% 6/1/21 | 5,340 | 6,012 | ||
18,791 | ||||
New York - 14.1% | ||||
Buffalo Muni. Wtr. Fin. Auth. Series B: | ||||
5% 7/1/14 (FSA Insured) (d) | 1,810 | 1,885 | ||
5% 7/1/15 (FSA Insured) (d) | 2,295 | 2,397 | ||
Erie County Indl. Dev. Agcy. School Facility Rev.: | ||||
(Buffalo City School District Proj.): | ||||
Series 2004: | ||||
5.75% 5/1/21 (FSA Insured) | 3,845 | 4,214 | ||
5.75% 5/1/23 (FSA Insured) | 3,000 | 3,279 | ||
5.75% 5/1/24 (FSA Insured) | 3,000 | 3,275 | ||
5.75% 5/1/25 (FSA Insured) | 3,400 | 3,707 | ||
5.75% 5/1/26 (FSA Insured) | 5,200 | 5,664 | ||
5.75% 5/1/16 (FSA Insured) | 13,120 | 14,412 | ||
5.75% 5/1/18 (FSA Insured) | 14,720 | 16,152 | ||
5.75% 5/1/20 (FSA Insured) | 8,000 | 8,773 | ||
5.75% 5/1/22 (FSA Insured) | 1,000 | 1,094 | ||
(City of Buffalo Proj.): | ||||
Series 2003: | ||||
5.75% 5/1/21 (FSA Insured) | 1,575 | 1,689 | ||
5.75% 5/1/23 (FSA Insured) | 1,750 | 1,876 | ||
5.75% 5/1/15 (FSA Insured) | 7,870 | 8,549 | ||
5.75% 5/1/18 (FSA Insured) | 3,460 | 3,712 | ||
Hudson Yards Infrastructure Corp. Series A: | ||||
5% 2/15/47 | 22,600 | 23,031 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
New York - continued | ||||
Hudson Yards Infrastructure Corp. Series A: - continued | ||||
5% 2/15/47 (FGIC Insured) | $ 13,100 | $ 13,462 | ||
Long Island Pwr. Auth. Elec. Sys. Rev.: | ||||
Series A: | ||||
5% 12/1/25 (FGIC Insured) | 5,000 | 5,196 | ||
5% 12/1/26 (XL Cap. Assurance, Inc. Insured) | 2,600 | 2,689 | ||
Series B, 5% 12/1/35 | 2,000 | 2,046 | ||
Series C, 5% 9/1/35 | 4,000 | 4,094 | ||
Metropolitan Trans. Auth. Svc. Contract Rev.: | ||||
Series 2002 A, 5.75% 7/1/31 (AMBAC Insured) | 3,800 | 4,070 | ||
Series B, 5.5% 7/1/19 (MBIA Insured) | 2,000 | 2,132 | ||
New York City Gen. Oblig.: | ||||
Series 2000 A, 6.5% 5/15/11 | 420 | 452 | ||
Series 2002 C, 5.5% 8/1/13 | 5,000 | 5,340 | ||
Series 2003 A, 5.5% 8/1/20 (MBIA Insured) | 8,000 | 8,552 | ||
Series 2005 G: | ||||
5% 8/1/14 | 2,400 | 2,521 | ||
5% 8/1/15 | 1,500 | 1,579 | ||
5.25% 8/1/16 | 3,525 | 3,785 | ||
Series A, 5.25% 11/1/14 (MBIA Insured) | 1,850 | 1,958 | ||
Series B, 5.75% 8/1/14 | 2,000 | 2,148 | ||
Series J, 5.5% 6/1/19 | 5,195 | 5,545 | ||
Subseries 2005 F1, 5% 9/1/15 | 4,000 | 4,213 | ||
New York City Indl. Dev. Agcy. Indl. Dev. Rev. (Japan Airlines Co. Ltd. Proj.) Series 1991, 6% 11/1/15 (FSA Insured) (h) | 1,285 | 1,300 | ||
New York City Indl. Dev. Agcy. Rev.: | ||||
(Queens Baseball Stadium Proj.) 5% 1/1/19 (AMBAC Insured) | 3,900 | 4,117 | ||
(Yankee Stadium Proj.): | ||||
5% 3/1/31 (FGIC Insured) | 5,325 | 5,527 | ||
5% 3/1/36 (MBIA Insured) | 5,240 | 5,419 | ||
New York City Indl. Dev. Agcy. Spl. Facilities Rev. (Terminal One Group Assoc. Proj.) 5% 1/1/09 (h) | 3,100 | 3,135 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.: | ||||
Series 2002 A, 5.125% 6/15/34 (FSA Insured) | 3,300 | 3,411 | ||
Series 2005 D, 5% 6/15/37 | 2,800 | 2,876 | ||
Series A, 5.125% 6/15/34 (MBIA Insured) | 13,800 | 14,265 | ||
Series B, 5.125% 6/15/31 | 8,045 | 8,257 | ||
Series D: | ||||
5% 6/15/38 | 14,800 | 15,190 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
New York - continued | ||||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.: - continued | ||||
Series D: | ||||
5% 6/15/39 | $ 3,540 | $ 3,631 | ||
Series E, 5% 6/15/34 | 11,120 | 11,366 | ||
Series G, 5.125% 6/15/32 | 2,000 | 2,052 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 D, 5% 2/1/31 | 3,500 | 3,590 | ||
Series 2004 C, 5% 2/1/33 (FGIC Insured) | 5,000 | 5,164 | ||
Series A: | ||||
5.5% 11/1/26 (b) | 5,050 | 5,339 | ||
5.75% 2/15/16 (Pre-Refunded to 2/15/10 @ 101) (i) | 130 | 137 | ||
6% 11/1/28 (b) | 7,775 | 8,357 | ||
Series B: | ||||
5% 8/1/32 | 14,715 | 15,117 | ||
5.25% 8/1/19 | 2,000 | 2,117 | ||
5.25% 2/1/29 (b) | 13,000 | 13,518 | ||
New York City Trust Cultural Resources Rev. (Museum of Modern Art Proj.) Series 2001 D, 5.125% 7/1/31 (AMBAC Insured) | 6,000 | 6,209 | ||
New York Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.): | ||||
Series A: | ||||
5.75% 7/1/09 | 4,370 | 4,485 | ||
5.75% 7/1/13 | 8,750 | 9,311 | ||
Series C, 7.5% 7/1/10 (FGIC Insured) | 17,590 | 18,491 | ||
(New York Univ. Hosp. Ctr. Proj.) Series A: | ||||
5% 7/1/14 | 1,895 | 1,940 | ||
5% 7/1/16 | 1,000 | 1,022 | ||
(State Univ. Edl. Facilities Proj.) Series A: | ||||
5.25% 5/15/15 (MBIA Insured) | 12,400 | 13,268 | ||
5.875% 5/15/17 (FGIC Insured) | 6,865 | 7,791 | ||
(Suffolk County Judicial Facilities Proj.) Series A, 9.5% 4/15/14 (Escrowed to Maturity) (i) | 690 | 868 | ||
Series 2002 A, 5.75% 10/1/17 (MBIA Insured) | 3,000 | 3,244 | ||
Series A, 5% 7/1/15 | 3,000 | 3,069 | ||
New York Envir. Facilities Corp. Clean Wtr. & Drinking Wtr.: | ||||
(New York City Muni. Wtr. Fin. Proj.) 5% 6/15/34 | 3,800 | 3,919 | ||
Series F: | ||||
4.875% 6/15/18 | 4,205 | 4,276 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
New York - continued | ||||
New York Envir. Facilities Corp. Clean Wtr. & Drinking Wtr.: - continued | ||||
Series F: | ||||
4.875% 6/15/20 | $ 8,500 | $ 8,639 | ||
5% 6/15/15 | 3,015 | 3,078 | ||
New York Local Govt. Assistance Corp. Series C, 5.5% 4/1/17 | 22,015 | 24,114 | ||
New York Med. Care Facilities Fin. Agcy. Rev. (Homeowner Mtg. Prog.) Series E, 6.2% 2/15/15 | 1,140 | 1,142 | ||
New York Thruway Auth. Gen. Rev. Series 2005 G: | ||||
5% 1/1/32 (FSA Insured) | 2,900 | 2,996 | ||
5.25% 1/1/27 (FSA Insured) | 12,500 | 13,304 | ||
New York Urban Dev. Corp. Rev. Series 2004 A2, 5.5% 3/15/21 (MBIA Insured) | 14,360 | 16,081 | ||
Niagara Falls City Niagara County Pub. Impt.: | ||||
7.5% 3/1/18 (Escrowed to Maturity) (i) | 40 | 51 | ||
7.5% 3/1/18 (MBIA Insured) | 460 | 587 | ||
Sales Tax Asset Receivables Corp. Series A, 5.25% 10/15/27 (AMBAC Insured) | 10,500 | 11,157 | ||
Syracuse Indl. Dev. Auth. Pilot Rev. (Carousel Ctr. Co. Proj.) 5% 1/1/36 (XL Cap. Assurance, Inc. Insured) (h) | 19,765 | 20,154 | ||
Tobacco Settlement Asset Securitization Corp. Series 1, 5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (i) | 7,515 | 7,853 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series A1: | ||||
5.25% 6/1/21 (AMBAC Insured) | 5,645 | 5,916 | ||
5.25% 6/1/22 (AMBAC Insured) | 3,850 | 4,031 | ||
5.5% 6/1/14 | 7,500 | 7,697 | ||
5.5% 6/1/15 | 37,645 | 39,073 | ||
5.5% 6/1/17 | 4,100 | 4,296 | ||
5.5% 6/1/18 (MBIA Insured) | 2,000 | 2,122 | ||
5.5% 6/1/19 | 2,300 | 2,454 | ||
Series C1: | ||||
5.5% 6/1/14 | 9,900 | 10,160 | ||
5.5% 6/1/15 | 11,700 | 12,144 | ||
5.5% 6/1/16 | 3,820 | 4,004 | ||
5.5% 6/1/17 | 11,500 | 12,050 | ||
5.5% 6/1/18 | 12,000 | 12,701 | ||
5.5% 6/1/19 | 10,800 | 11,492 | ||
5.5% 6/1/20 | 2,700 | 2,867 | ||
5.5% 6/1/22 | 10,115 | 10,725 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
New York - continued | ||||
Triborough Bridge & Tunnel Auth. Revs.: | ||||
(Convention Ctr. Proj.) Series E, 7.25% 1/1/10 (XL Cap. Assurance, Inc. Insured) | $ 4,675 | $ 4,887 | ||
Series 2005 A, 5.125% 1/1/22 | 4,000 | 4,132 | ||
Series A, 5% 1/1/32 (MBIA Insured) | 470 | 482 | ||
Series B: | ||||
5.2% 1/1/27 (Pre-Refunded to 1/1/22 @ 100) (i) | 2,000 | 2,199 | ||
5.5% 1/1/30 (Pre-Refunded to 1/1/22 @ 100) (i) | 4,000 | 4,493 | ||
Series SR, 5.5% 1/1/12 (Escrowed to Maturity) (i) | 9,495 | 9,788 | ||
662,138 | ||||
New York & New Jersey - 0.3% | ||||
Port Auth. of New York & New Jersey 124th Series, 5% 8/1/13 (FGIC Insured) (h) | 3,400 | 3,459 | ||
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) (h) | 10,275 | 11,386 | ||
14,845 | ||||
North Carolina - 2.5% | ||||
Catawba County Ctfs. of Prtn. (Pub. School and Cmnty. College Proj.) 5.25% 6/1/20 (MBIA Insured) | 1,800 | 1,904 | ||
Dare County Ctfs. of Prtn.: | ||||
5.25% 6/1/17 (AMBAC Insured) | 1,620 | 1,717 | ||
5.25% 6/1/18 (AMBAC Insured) | 1,620 | 1,711 | ||
5.25% 6/1/19 (AMBAC Insured) | 1,540 | 1,627 | ||
5.25% 6/1/22 (AMBAC Insured) | 1,620 | 1,705 | ||
5.25% 6/1/23 (AMBAC Insured) | 1,620 | 1,696 | ||
North Carolina Cap. Facilities Fin. Agcy. Rev.: | ||||
(Duke Univ. Proj.) Series A: | ||||
5% 10/1/41 | 1,000 | 1,023 | ||
5.125% 10/1/41 | 1,195 | 1,221 | ||
Series 2006B, 4.75% 7/1/42 | 5,000 | 4,933 | ||
North Carolina Ctfs. of Prtn. (Repair and Renovation Proj.) Series B, 5.25% 6/1/17 | 3,600 | 3,822 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | ||||
Series A: | ||||
5.5% 1/1/11 | 8,700 | 9,066 | ||
5.75% 1/1/26 | 4,000 | 4,148 | ||
Series B, 7% 1/1/08 | 10,060 | 10,207 | ||
Series C, 5.25% 1/1/09 | 2,500 | 2,545 | ||
Series D: | ||||
5.375% 1/1/10 | 4,525 | 4,655 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
North Carolina - continued | ||||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: - continued | ||||
Series D: | ||||
6.7% 1/1/19 | $ 5,000 | $ 5,331 | ||
6.75% 1/1/26 | 7,000 | 7,469 | ||
North Carolina Infrastructure Fin. Corp. Ctfs. of Prtn. (North Carolina Correctional Facilities Proj.) Series A: | ||||
5% 2/1/19 | 2,945 | 3,045 | ||
5% 2/1/20 | 1,500 | 1,548 | ||
North Carolina Med. Care Cmnty. Health (Memorial Mission Hosp. Proj.): | ||||
5% 10/1/20 | 225 | 232 | ||
5% 10/1/21 | 5,690 | 5,836 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev. Series A: | ||||
5.125% 1/1/15 (MBIA Insured) | 6,860 | 7,004 | ||
5.125% 1/1/17 (MBIA Insured) | 15,350 | 15,671 | ||
5.125% 1/1/17 (MBIA Insured) | 16,000 | 16,405 | ||
Univ. of North Carolina at Chapel Hill Rev. Series A, 4.75% 12/1/34 | 5,000 | 4,992 | ||
119,513 | ||||
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 | 28,868 | ||
Ward County Health Care Facility Rev. (Trinity Med. Ctr. Proj.): | ||||
5.125% 7/1/19 | 2,765 | 2,822 | ||
5.25% 7/1/15 | 1,300 | 1,352 | ||
33,042 | ||||
Ohio - 0.8% | ||||
Cleveland Parking Facilities Rev. 5.25% 9/15/18 (FSA Insured) | 2,000 | 2,177 | ||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.) 5.5% 2/15/08 | 1,225 | 1,237 | ||
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series A: | ||||
6% 12/1/19 | 4,905 | 5,225 | ||
6% 12/1/19 (Escrowed to Maturity) (i) | 5,095 | 5,430 | ||
6% 12/1/26 (Escrowed to Maturity) (i) | 10,000 | 10,649 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Ohio - continued | ||||
Ohio Solid Waste Rev. (Waste Mgmt., Inc. Proj.) 4.85%, tender 11/1/07 (e)(h) | $ 5,000 | $ 5,008 | ||
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B: | ||||
6.375% 11/15/30 | 1,005 | 1,069 | ||
6.375% 11/15/30 (Pre-Refunded to 11/15/10 @ 101) (i) | 1,995 | 2,166 | ||
Univ. of Cincinnati Ctfs. of Prtn. 5.125% 6/1/28 (MBIA Insured) | 3,750 | 3,833 | ||
36,794 | ||||
Oklahoma - 1.0% | ||||
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (i) | 2,080 | 1,738 | ||
Oklahoma City Pub. Property Auth. Hotel Tax Rev.: | ||||
5.25% 10/1/29 (FGIC Insured) | 4,000 | 4,241 | ||
5.5% 10/1/22 (FGIC Insured) | 2,845 | 3,067 | ||
5.5% 10/1/23 (FGIC Insured) | 3,005 | 3,231 | ||
5.5% 10/1/24 (FGIC Insured) | 3,175 | 3,412 | ||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.): | ||||
5% 2/15/14 | 1,675 | 1,738 | ||
6% 2/15/29 | 15,000 | 15,518 | ||
Oklahoma Inds. Auth. Rev. (Health Sys. Oblig. Group Proj.) Series A, 5.75% 8/15/29 (MBIA Insured) | 11,420 | 11,897 | ||
Tulsa County Indl. Auth. Health Care Rev. 5% 12/15/19 | 1,680 | 1,744 | ||
46,586 | ||||
Oregon - 0.3% | ||||
Clackamas County School District #62C, Oregon City Series 2004, 5% 6/15/19 (FSA Insured) | 3,395 | 3,540 | ||
Clackamas County School District #7J: | ||||
5.25% 6/1/23 (FSA Insured) | 2,000 | 2,183 | ||
5.25% 6/1/24 (FSA Insured) | 2,605 | 2,847 | ||
Port Morrow Poll. Cont. Rev. (Pacific Northwest Proj.) Series A: | ||||
8% 7/15/07 | 430 | 430 | ||
8% 7/15/08 | 480 | 490 | ||
8% 7/15/09 | 540 | 550 | ||
8% 7/15/10 | 605 | 616 | ||
8% 7/15/11 | 385 | 392 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Oregon - continued | ||||
Washington County School District #15: | ||||
5.5% 6/15/20 (FSA Insured) | $ 1,770 | $ 1,977 | ||
5.5% 6/15/21 (FSA Insured) | 1,060 | 1,186 | ||
14,211 | ||||
Pennsylvania - 2.0% | ||||
Allegheny County Arpt. Auth. Rev. (Pittsburg Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (MBIA Insured) (h) | 3,000 | 3,116 | ||
Annville-Cleona School District: | ||||
5.5% 3/1/24 (FSA Insured) | 1,350 | 1,459 | ||
5.5% 3/1/25 (FSA Insured) | 1,400 | 1,511 | ||
Canon McMillan School District Series 2001 B, 5.75% 12/1/33 (FGIC Insured) | 3,000 | 3,148 | ||
Central Dauphin School District Gen. Oblig. 7% 2/1/27 (Pre-Refunded to 2/1/16 @ 100) (i) | 1,000 | 1,206 | ||
Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B, 5.25% 5/15/22 (AMBAC Insured) | 4,400 | 4,483 | ||
Easton Area School District Series 2006, 7.75% 4/1/25 (FSA Insured) | 4,800 | 5,995 | ||
Mifflin County School District 7.75% 9/1/30 (XL Cap. Assurance, Inc. Insured) (d) | 3,100 | 3,966 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A: | ||||
6% 6/1/22 (AMBAC Insured) | 2,000 | 2,316 | ||
6.1% 6/1/12 (AMBAC Insured) | 3,000 | 3,260 | ||
6.125% 6/1/14 (AMBAC Insured) | 5,230 | 5,834 | ||
Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/13 (Escrowed to Maturity) (i) | 11,455 | 8,819 | ||
Pennsylvania Convention Ctr. Auth. Rev. Series A, 6.7% 9/1/16 (Escrowed to Maturity) (i) | 2,000 | 2,236 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.: | ||||
(Amtrak Proj.) Series 2001 A, 6.375% 11/1/41 (h) | 8,700 | 9,248 | ||
(Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (e)(h) | 5,600 | 5,591 | ||
Pennsylvania Econ. Dev. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series 2004 A, 3.95%, tender 11/1/09 (e)(h) | 5,000 | 4,929 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev. (Univ. of Pennsylvania Health Systems Proj.) Series A, 5% 8/15/16 (AMBAC Insured) | 3,600 | 3,801 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Pennsylvania - continued | ||||
Pennsylvania Hsg. Fin. Agcy. Single Family Mortgage Rev. Series 54A, 5.375% 10/1/28 (h) | $ 140 | $ 141 | ||
Philadelphia Gas Works Rev.: | ||||
Fifth Series A1, 5% 9/1/33 (FSA Insured) | 4,695 | 4,814 | ||
Series 17, 5.375% 7/1/20 (FSA Insured) | 4,000 | 4,223 | ||
Seventh Series 1998, 5% 10/1/37 (AMBAC Insured) | 8,900 | 9,173 | ||
Philadelphia Gen. Oblig. Series 2003 A, 5% 2/15/12 (XL Cap. Assurance, Inc. Insured) | 1,000 | 1,039 | ||
Philadelphia Redev. Auth. Rev. (Philadelphia Neighborhood Transformation Initiative Proj.) Series 2005 C, 5% 4/15/31 (FGIC Insured) | 3,000 | 3,083 | ||
93,391 | ||||
Puerto Rico - 0.4% | ||||
Puerto Rico Commonwealth Hwy. & Trans. Auth. Trans. Rev.: | ||||
Series 1998, 5.75% 7/1/22 (CIFG North America Insured) | 2,300 | 2,492 | ||
5.75% 7/1/19 (FGIC Insured) | 3,240 | 3,523 | ||
Puerto Rico Commonwealth Infrastructure Fing. Auth.: | ||||
Series 2000 A, 5.5% 10/1/40 (Escrowed to Maturity) (i) | 545 | 573 | ||
Series C, 5.5% 7/1/21 (FGIC Insured) | 3,000 | 3,362 | ||
Puerto Rico Govt. Dev. Bank: | ||||
Series B, 5% 12/1/12 | 5,000 | 5,172 | ||
Series C, 5.25% 1/1/15 (h) | 5,000 | 5,220 | ||
20,342 | ||||
Rhode Island - 0.3% | ||||
Rhode Island Health & Edl. Bldg. Corp. Rev.: | ||||
(Lifespan Corp. Proj.) Series A: | ||||
5% 5/15/11 | 1,680 | 1,726 | ||
5% 5/15/13 (FSA Insured) | 4,000 | 4,175 | ||
(Univ. of Rhode Island Univ. Revs. Proj.) Series A: | ||||
5.25% 9/15/15 (AMBAC Insured) | 1,725 | 1,850 | ||
5.25% 9/15/16 (AMBAC Insured) | 1,815 | 1,940 | ||
5.25% 9/15/18 (AMBAC Insured) | 1,005 | 1,069 | ||
5.5% 9/15/24 (AMBAC Insured) | 3,400 | 3,665 | ||
14,425 | ||||
South Carolina - 0.9% | ||||
Greenville County School District Installment Purp. Rev. 5% 12/1/11 | 3,750 | 3,879 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
South Carolina - continued | ||||
Greenwood Fifty School Facilities Installment: | ||||
5% 12/1/18 | $ 3,930 | $ 4,132 | ||
5% 12/1/19 | 2,375 | 2,487 | ||
Lexington County Health Svcs. District, Inc. Hosp. Rev. 6% 11/1/18 | 3,500 | 3,788 | ||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5.25% 12/1/18 | 1,540 | 1,623 | ||
Richland County Hosp. Facilities Rev. (Cmnty. Provider Pooled Ln. Prog.) Series A, 7.125% 7/1/17 (Escrowed to Maturity) (i) | 1,365 | 1,526 | ||
Rock Hill Util. Sys. Rev. Series 2003 A: | ||||
5.375% 1/1/17 (FSA Insured) | 2,100 | 2,233 | ||
5.375% 1/1/23 (FSA Insured) | 1,025 | 1,082 | ||
South Carolina Jobs Econ. Dev. Auth. Health Facilities Rev. 5% 4/1/24 | 4,000 | 4,009 | ||
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) (i) | 4,000 | 4,499 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
(Santee Cooper Proj.) Series 2005 B, 5% 1/1/18 (MBIA Insured) | 2,200 | 2,312 | ||
Series 2005 B, 5% 1/1/19 (MBIA Insured) | 2,500 | 2,618 | ||
Series A, 5% 1/1/36 (MBIA Insured) | 5,000 | 5,157 | ||
Sumter Two School Facilities, Inc. Rev. 5% 12/1/19 | 2,080 | 2,169 | ||
York County Wtr. & Swr. Rev. 5.25% 12/1/30 (MBIA Insured) | 1,120 | 1,170 | ||
42,684 | ||||
South Dakota - 0.0% | ||||
South Dakota Lease Rev. Series A, 6.625% 9/1/12 (FSA Insured) | 1,000 | 1,115 | ||
Tennessee - 0.9% | ||||
Clarksville Natural Gas Acquisition Corp. Gas Rev.: | ||||
5% 12/15/12 | 4,500 | 4,671 | ||
5% 12/15/13 | 8,000 | 8,330 | ||
5% 12/15/14 | 3,870 | 4,038 | ||
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 | 3,527 | ||
5.75% 1/1/14 (MBIA Insured) | 2,000 | 2,183 | ||
7.25% 1/1/10 (MBIA Insured) | 2,660 | 2,858 | ||
Knox County Health Edl. & Hsg. Facilities Board Rev. (Univ. Health Sys. Proj.) 5% 4/1/15 | 5,245 | 5,359 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Tennessee - continued | ||||
Memphis-Shelby County Arpt. Auth. Arpt. Rev.: | ||||
Series A: | ||||
6.25% 2/15/09 (MBIA Insured) (h) | $ 1,500 | $ 1,554 | ||
6.25% 2/15/10 (MBIA Insured) (h) | 1,000 | 1,053 | ||
6.25% 2/15/11 (MBIA Insured) (h) | 1,415 | 1,513 | ||
Series B, 6.5% 2/15/09 (MBIA Insured) (h) | 500 | 520 | ||
Metropolitan Govt. Nashville & Davidson County Wtr. & Swr. Sys. Rev. 7.7% 1/1/12 (FGIC Insured) | 5,600 | 6,176 | ||
41,782 | ||||
Texas - 11.1% | ||||
Abilene Independent School District: | ||||
5% 2/15/16 | 2,035 | 2,152 | ||
5% 2/15/18 | 2,000 | 2,089 | ||
5% 2/15/23 | 3,205 | 3,311 | ||
Aledo Independent School District Series A, 5.125% 2/15/33 | 2,775 | 2,862 | ||
Argyle Independent School District 5.25% 8/15/40 (FSA Insured) | 1,745 | 1,821 | ||
Arlington Gen. Oblig. 5% 8/15/18 (FGIC Insured) | 1,215 | 1,260 | ||
Austin Cmnty. College District Rev. (Convention Ctr. Proj.) Series B, 0% 2/1/22 (AMBAC Insured) | 2,900 | 1,474 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B: | ||||
5.75% 1/1/24 | 1,405 | 1,455 | ||
5.75% 1/1/34 | 1,500 | 1,545 | ||
Austin Util. Sys. Rev.: | ||||
0% 5/15/10 (MBIA Insured) | 7,970 | 7,092 | ||
0% 5/15/17 (FGIC Insured) | 9,200 | 5,955 | ||
0% 5/15/18 (FGIC Insured) | 5,000 | 3,074 | ||
Austin Wtr. & Wastewtr. Sys. Rev. Series A, 5% 5/15/31 (AMBAC Insured) | 4,690 | 4,822 | ||
Bexar Metropolitan Wtr. District Wtrwks. Sys. Rev. 5.375% 5/1/20 (FSA Insured) | 220 | 231 | ||
Birdville Independent School District: | ||||
0% 2/15/11 | 8,665 | 7,457 | ||
0% 2/15/13 | 13,690 | 10,783 | ||
Boerne Independent School District 5.25% 2/1/35 | 11,000 | 11,430 | ||
Clint Independent School District: | ||||
5.5% 8/15/19 | 200 | 212 | ||
5.5% 8/15/19 (Pre-Refunded to 8/15/12 @ 100) (i) | 855 | 913 | ||
5.5% 8/15/20 | 210 | 222 | ||
5.5% 8/15/20 (Pre-Refunded to 8/15/12 @ 100) (i) | 900 | 961 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Texas - continued | ||||
Clint Independent School District: - continued | ||||
5.5% 8/15/21 | $ 220 | $ 233 | ||
5.5% 8/15/21 (Pre-Refunded to 8/15/12 @ 100) (i) | 955 | 1,020 | ||
Conroe Independent School District 0% 2/15/11 | 1,500 | 1,291 | ||
Coppell Independent School District 0% 8/15/20 | 2,000 | 1,089 | ||
Corpus Christi Util. Sys. Rev.: | ||||
5.25% 7/15/18 (FSA Insured) | 3,305 | 3,564 | ||
5.25% 7/15/19 (FSA Insured) | 4,000 | 4,297 | ||
Corsicana Independent School District 5.125% 2/15/34 | 3,325 | 3,427 | ||
Crowley Independent School District 5.25% 8/1/33 | 4,000 | 4,212 | ||
Cypress-Fairbanks Independent School District Series A: | ||||
0% 2/15/12 | 20,900 | 17,231 | ||
0% 2/15/13 | 6,425 | 5,061 | ||
0% 2/15/14 | 11,475 | 8,634 | ||
0% 2/15/16 | 9,700 | 6,640 | ||
Dallas Area Rapid Transit Sales Tax Rev. 5% 12/1/36 (AMBAC Insured) | 5,500 | 5,662 | ||
Dallas Fort Worth Int'l. Arpt. Rev. Series A: | ||||
5.25% 11/1/10 (MBIA Insured) (h) | 2,150 | 2,225 | ||
5.25% 11/1/12 (MBIA Insured) (h) | 5,820 | 6,097 | ||
Del Mar College District 5.25% 8/15/20 (FGIC Insured) | 2,960 | 3,113 | ||
Denton Independent School District 5% 8/15/33 | 11,120 | 11,330 | ||
DeSoto Independent School District 0% 8/15/20 | 3,335 | 1,811 | ||
Duncanville Independent School District 5.65% 2/15/28 | 30 | 32 | ||
El Paso Independent School District 5.25% 8/15/31 | 2,270 | 2,391 | ||
Frisco Independent School District: | ||||
Series C: | ||||
5% 8/15/22 | 2,000 | 2,076 | ||
5% 8/15/26 | 3,765 | 3,881 | ||
5.375% 8/15/17 | 2,715 | 2,865 | ||
Gainesville Independent School District 5.25% 2/15/36 | 1,900 | 1,994 | ||
Garland Wtr. & Swr. Rev. 5.25% 3/1/23 (AMBAC Insured) | 1,315 | 1,372 | ||
Grand Prairie Independent School District 0% 2/15/16 | 3,775 | 2,589 | ||
Guadalupe-Blanco River Auth. Contract Rev. (Western Canyon Reg'l. Wtr. Supply Proj.): | ||||
5.25% 4/15/15 (MBIA Insured) | 1,570 | 1,664 | ||
5.25% 4/15/16 (MBIA Insured) | 1,680 | 1,778 | ||
5.25% 4/15/17 (MBIA Insured) | 2,295 | 2,425 | ||
5.25% 4/15/18 (MBIA Insured) | 1,915 | 2,021 | ||
5.25% 4/15/19 (MBIA Insured) | 1,000 | 1,053 | ||
5.25% 4/15/20 (MBIA Insured) | 1,565 | 1,647 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Texas - continued | ||||
Harlandale Independent School District: | ||||
Series 2005, 5.7% 8/15/30 | $ 100 | $ 104 | ||
5.5% 8/15/35 | 45 | 47 | ||
6% 8/15/16 | 35 | 37 | ||
Harris County Gen. Oblig.: | ||||
0% 10/1/13 (MBIA Insured) | 5,550 | 4,269 | ||
0% 10/1/14 (MBIA Insured) | 11,000 | 8,084 | ||
0% 8/15/25 (MBIA Insured) | 3,000 | 1,275 | ||
0% 8/15/28 (MBIA Insured) | 5,000 | 1,826 | ||
Harris County Hosp. District Mtg. Rev.: | ||||
7.4% 2/15/10 (AMBAC Insured) | 880 | 925 | ||
7.4% 2/15/10 (Escrowed to Maturity) (i) | 295 | 307 | ||
Houston Area Wtr. Corp. Contract Rev. (Northeast Wtr. Purification Proj.) 5.5% 3/1/15 (Pre-Refunded to 3/1/12 @ 100) (i) | 1,985 | 2,108 | ||
Houston Arpt. Sys. Rev.: | ||||
Series A: | ||||
5.625% 7/1/20 (FSA Insured) (h) | 2,000 | 2,103 | ||
5.625% 7/1/21 (FSA Insured) (h) | 3,350 | 3,520 | ||
Series B, 5.5% 7/1/30 (FSA Insured) | 10,645 | 10,982 | ||
Houston Independent School District: | ||||
Series A, 0% 8/15/11 | 6,400 | 5,393 | ||
0% 8/15/13 | 9,835 | 7,583 | ||
Humble Independent School District: | ||||
Series 2005 B, 5.25% 2/15/22 (FGIC Insured) | 1,995 | 2,112 | ||
0% 2/15/16 | 3,000 | 2,062 | ||
0% 2/15/17 | 3,480 | 2,278 | ||
Hurst Euless Bedford Independent School District: | ||||
0% 8/15/11 | 3,620 | 3,050 | ||
0% 8/15/12 | 5,105 | 4,120 | ||
0% 8/15/13 | 3,610 | 2,784 | ||
Katy Independent School District: | ||||
Series A, 5% 2/15/16 | 2,500 | 2,599 | ||
0% 8/15/11 | 4,170 | 3,514 | ||
Keller Independent School District Series 1996 A, 0% 8/15/17 | 2,000 | 1,273 | ||
Kermit Independent School District 5.25% 12/15/37 | 4,130 | 4,350 | ||
Killeen Independent School District: | ||||
5.25% 2/15/17 | 2,105 | 2,200 | ||
5.25% 2/15/18 | 1,325 | 1,385 | ||
La Joya Independent School District 5.25% 2/15/23 | 2,940 | 3,094 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Texas - continued | ||||
Lamar Consolidated Independent School District 5% 2/15/18 | $ 2,000 | $ 2,108 | ||
Lampasas Independent School District (School Bldg. Proj.) 5.25% 2/15/32 (d) | 4,000 | 4,192 | ||
Lewisville Independent School District 5% 8/15/16 | 305 | 315 | ||
Liberty Hill Independent School District (School Bldg. Proj.) 5.25% 8/1/35 | 7,615 | 7,990 | ||
Little Elm Independent School District 5.5% 8/15/21 | 60 | 63 | ||
Lower Colorado River Auth. Rev.: | ||||
5% 5/15/31 (AMBAC Insured) | 1,565 | 1,595 | ||
5.25% 1/1/15 (Escrowed to Maturity) (i) | 6,260 | 6,720 | ||
5.25% 5/15/18 (AMBAC Insured) | 1,875 | 1,980 | ||
5.25% 5/15/18 (Pre-Refunded to 5/15/13 @ 100) (i) | 145 | 154 | ||
Lower Colorado River Auth. Transmission Contract Rev.: | ||||
(LCRA Transmission Svcs. Corp. Proj.) Series C: | ||||
5% 5/15/33 (AMBAC Insured) | 5,095 | 5,222 | ||
5.25% 5/15/18 (AMBAC Insured) | 1,000 | 1,056 | ||
5.25% 5/15/19 (AMBAC Insured) | 1,000 | 1,053 | ||
5.25% 5/15/20 (AMBAC Insured) | 2,000 | 2,106 | ||
Lubbock Gen. Oblig. (Wtrwks. Sys. Surplus Proj.) 5% 2/15/17 (FSA Insured) | 2,270 | 2,378 | ||
Mansfield Independent School District 5.5% 2/15/18 | 40 | 42 | ||
Mesquite Independent School District 5.375% 8/15/11 | 395 | 402 | ||
Midlothian Independent School District 0% 2/15/10 | 1,525 | 1,370 | ||
Midway Independent School District 0% 8/15/19 | 3,600 | 2,066 | ||
Montgomery County Gen. Oblig.: | ||||
Series A, 5.625% 3/1/20 (FSA Insured) | 495 | 524 | ||
Series B, 5%, tender 9/1/10 (FSA Insured) (e) | 3,700 | 3,803 | ||
Navasota Independent School District: | ||||
5.25% 8/15/34 (FGIC Insured) | 2,275 | 2,379 | ||
5.5% 8/15/25 (FGIC Insured) | 1,675 | 1,800 | ||
North Central Health Facilities Dev. Corp. Rev. Series 1997 B, 5.75% 2/15/14 (Escrowed to Maturity) (i) | 5,215 | 5,718 | ||
North Forest Independent School District: | ||||
Series A, 5% 8/15/17 | 2,020 | 2,132 | ||
Series B, 5% 8/15/18 (FSA Insured) | 1,470 | 1,546 | ||
North Texas Muni. Wtr. District Wtr. Sys. Rev. 5% 9/1/35 (MBIA Insured) | 4,000 | 4,115 | ||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series A, 5% 1/1/28 (AMBAC Insured) | 7,175 | 7,355 | ||
Pampa Independent School District 5% 8/15/36 | 1,190 | 1,222 | ||
Pflugerville Gen. Oblig. 5.5% 8/1/22 (AMBAC Insured) | 1,000 | 1,064 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Texas - continued | ||||
Prosper Independent School District: | ||||
5.125% 8/15/30 | $ 3,110 | $ 3,219 | ||
5.75% 8/15/29 | 1,250 | 1,332 | ||
Robstown Independent School District 5.25% 2/15/29 | 3,165 | 3,310 | ||
Rockwall Independent School District: | ||||
5.375% 2/15/19 | 25 | 26 | ||
5.375% 2/15/20 | 25 | 26 | ||
5.375% 2/15/21 | 30 | 31 | ||
Round Rock Independent School District 0% 8/15/11 (MBIA Insured) | 4,300 | 3,635 | ||
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series B, 5.75%, tender 11/1/11 (e)(h) | 16,000 | 16,329 | ||
San Antonio Elec. & Gas Sys. Rev. Series B, 0% 2/1/12 (Escrowed to Maturity) (i) | 7,000 | 5,783 | ||
San Antonio Gen. Oblig.: | ||||
5.5% 2/1/15 | 1,975 | 2,097 | ||
5.5% 2/1/15 (Pre-Refunded to 2/1/12 @ 100) (i) | 25 | 27 | ||
San Antonio Wtr. Sys. Rev.: | ||||
Series A, 5% 5/15/32 (FSA Insured) | 1,550 | 1,581 | ||
6.5% 5/15/10 (Escrowed to Maturity) (i) | 440 | 470 | ||
San Marcos Consolidated Independent School District: | ||||
5% 8/1/17 | 1,175 | 1,228 | ||
5% 8/1/19 | 1,450 | 1,507 | ||
5% 8/1/22 | 1,680 | 1,737 | ||
5% 8/1/23 | 1,760 | 1,815 | ||
Snyder Independent School District: | ||||
5.25% 2/15/21 (AMBAC Insured) | 1,035 | 1,101 | ||
5.25% 2/15/22 (AMBAC Insured) | 1,090 | 1,157 | ||
5.25% 2/15/30 (AMBAC Insured) | 1,800 | 1,892 | ||
Socorro Independent School District 5.375% 8/15/18 | 60 | 63 | ||
South San Antonio Independent School District: | ||||
5% 8/15/17 | 1,025 | 1,062 | ||
5% 8/15/35 | 2,000 | 2,047 | ||
Spring Branch Independent School District 5.375% 2/1/18 | 1,250 | 1,300 | ||
Texas Gen. Oblig.: | ||||
(College Student Ln. Prog.) 5% 8/1/12 (h) | 6,655 | 6,832 | ||
5.75% 8/1/26 | 3,320 | 3,512 | ||
Texas Muni. Pwr. Agcy. Rev. 0% 9/1/16 (MBIA Insured) | 5,365 | 3,589 | ||
Texas Pub. Fin. Auth. Bldg. Rev. Series 1990: | ||||
0% 2/1/12 (MBIA Insured) | 4,400 | 3,642 | ||
0% 2/1/14 (MBIA Insured) | 6,910 | 5,225 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Texas - continued | ||||
Texas Tpk. Auth. Central Texas Tpk. Sys. Rev.: | ||||
5.5% 8/15/39 (AMBAC Insured) | $ 37,550 | $ 39,596 | ||
5.75% 8/15/38 (AMBAC Insured) | 27,550 | 29,364 | ||
Texas Wtr. Dev. Board Rev. Series B: | ||||
5.375% 7/15/16 | 5,000 | 5,153 | ||
5.625% 7/15/21 | 5,900 | 6,101 | ||
Trinity River Auth. Rev. (Tarrant County Wtr. Proj.) 5% 2/1/17 (MBIA Insured) | 4,930 | 5,187 | ||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.): | ||||
5.75% 7/1/27 (Pre-Refunded to 7/1/13 @ 100) (i) | 1,000 | 1,086 | ||
6% 7/1/31 (Pre-Refunded to 7/1/12 @ 100) (i) | 6,225 | 6,757 | ||
Weatherford Independent School District: | ||||
Series 2000, 0% 2/15/25 (Pre-Refunded to 2/15/10 @ 36.782) (i) | 6,155 | 2,038 | ||
0% 2/15/22 (Pre-Refunded to 2/15/10 @ 45.084) (i) | 2,980 | 1,209 | ||
0% 2/15/26 (Pre-Refunded to 2/15/10 @ 34.41) (i) | 2,985 | 925 | ||
0% 2/15/33 | 6,985 | 2,002 | ||
White Settlement Independent School District: | ||||
5.75% 8/15/30 | 2,890 | 3,079 | ||
5.75% 8/15/34 | 3,000 | 3,196 | ||
Williamson County Gen. Oblig.: | ||||
5.5% 2/15/18 (FSA Insured) | 60 | 63 | ||
5.5% 2/15/20 (FSA Insured) | 65 | 68 | ||
Wylie Independent School District 0% 8/15/20 | 1,790 | 975 | ||
524,074 | ||||
Utah - 0.8% | ||||
Intermountain Pwr. Agcy.: | ||||
Series A: | ||||
6% 7/1/16 (AMBAC Insured) | 5,640 | 5,753 | ||
6% 7/1/16 (Escrowed to Maturity) (i) | 9,205 | 9,405 | ||
Series B, 5.75% 7/1/16 (MBIA Insured) | 11,230 | 11,455 | ||
Salt Lake City Hosp. Rev. (Intermountain Health Care Hosp., Inc. Proj.) Series A, 8.125% 5/15/15 (Escrowed to Maturity) (i) | 2,975 | 3,393 | ||
Utah Associated Muni. Pwr. Sys. Rev. (Payson Pwr. Proj.) Series A: | ||||
5.25% 4/1/16 (FSA Insured) | 3,590 | 3,791 | ||
5.25% 4/1/17 (FSA Insured) | 4,335 | 4,569 | ||
38,366 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Vermont - 0.4% | ||||
Vermont Edl. & Health Bldg. Fing. Agcy. Rev.: | ||||
(Fletcher Allen Health Care, Inc. Proj.) Series 2000 A: | ||||
5.75% 12/1/18 (AMBAC Insured) | $ 3,100 | $ 3,279 | ||
6.125% 12/1/27 (AMBAC Insured) | 8,600 | 9,189 | ||
(Middlebury College Proj. Series 2006 A, 5% 10/31/46 | 4,075 | 4,175 | ||
16,643 | ||||
Virginia - 0.3% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.05%, tender 4/1/08 (e)(h) | 3,900 | 3,894 | ||
Peninsula Ports Auth. Hosp. Facilities Rev. (Whittaker Memorial Hosp. Proj.) 8.7% 8/1/23 | 1,430 | 1,601 | ||
Virginia Beach Dev. Auth. Hosp. Facilities Rev. (Virginia Beach Gen. Hosp. Proj.): | ||||
6% 2/15/12 (AMBAC Insured) | 2,150 | 2,323 | ||
6% 2/15/13 (AMBAC Insured) | 1,460 | 1,597 | ||
Virginia Hsg. Dev. Auth. Multi-family Hsg. Rev. Series I, 5.95% 5/1/09 (h) | 1,890 | 1,898 | ||
11,313 | ||||
Washington - 4.8% | ||||
Central Puget Sound Reg'l. Trans. Auth. Sales & Use Tax Rev. Series 2007 A, 5% 11/1/27 (AMBAC Insured) | 3,500 | 3,609 | ||
Chelan County Pub. Util. District #1 Columbia River-Rock Island Hydro-Elec. Sys. Rev. Series A, 0% 6/1/17 (MBIA Insured) | 7,200 | 4,598 | ||
Chelan County Pub. Util. District #1 Rev. Series 2005 A, 5.125%, tender 7/1/15 (FGIC Insured) (e)(h) | 2,430 | 2,518 | ||
Chelan County School District #246, Wenatchee 5.5% 12/1/19 (FSA Insured) | 3,535 | 3,740 | ||
Clark County School District #37, Vancouver Series C, 0% 12/1/19 (FGIC Insured) | 2,030 | 1,151 | ||
Energy Northwest Elec. Rev.: | ||||
(#1 Proj.) Series 2006 A, 5% 7/1/15 | 8,000 | 8,436 | ||
(#3 Proj.) Series B, 6% 7/1/16 (AMBAC Insured) | 28,000 | 30,391 | ||
Grant County Pub. Util. District #2 Wanapum Hydro Elec. Rev. Series B: | ||||
5.25% 1/1/18 (FGIC Insured) (h) | 1,590 | 1,657 | ||
5.25% 1/1/20 (FGIC Insured) (h) | 1,760 | 1,819 | ||
5.25% 1/1/23 (FGIC Insured) (h) | 2,055 | 2,107 | ||
King County Swr. Rev. Series B, 5.125% 1/1/33 (FSA Insured) | 22,390 | 23,026 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Washington - continued | ||||
Mead School District #354, Spokane County 5.375% 12/1/19 (FSA Insured) | $ 2,575 | $ 2,750 | ||
Pierce County School District #10 Tacoma Series A, 5% 12/1/18 (FSA Insured) | 4,000 | 4,201 | ||
Port of Seattle Rev. Series D: | ||||
5.75% 11/1/13 (FGIC Insured) (h) | 1,500 | 1,603 | ||
5.75% 11/1/14 (FGIC Insured) (h) | 3,055 | 3,262 | ||
5.75% 11/1/16 (FGIC Insured) (h) | 2,250 | 2,396 | ||
Snohomish County School District #2, Everett 5.5% 12/1/16 (FSA Insured) | 1,650 | 1,757 | ||
Snohomish County School District #4, Lake Stevens 5.125% 12/1/19 (FGIC Insured) | 1,875 | 1,976 | ||
Spokane Pub. Facilities District Hotel/Motel Tax & Sales/Use Tax Rev.: | ||||
5.75% 12/1/19 (MBIA Insured) | 2,000 | 2,172 | ||
5.75% 12/1/21 (MBIA Insured) | 2,000 | 2,168 | ||
Thurston & Pierce Counties Cmnty. Schools 5.25% 12/1/17 (FSA Insured) | 2,000 | 2,111 | ||
Washington Gen. Oblig.: | ||||
Series 2001 C: | ||||
5.25% 1/1/16 | 7,070 | 7,329 | ||
5.25% 1/1/26 (FSA Insured) | 15,800 | 16,359 | ||
Series B, 5% 7/1/28 (FSA Insured) | 7,800 | 8,065 | ||
Series E, 5% 1/1/29 (MBIA Insured) | 3,090 | 3,181 | ||
Series R 97A: | ||||
0% 7/1/17 | 7,045 | 4,469 | ||
0% 7/1/19 (MBIA Insured) | 9,100 | 5,325 | ||
Washington Health Care Facilities Auth. Rev. (Providence Health Systems Proj.) Series A, 5.5% 10/1/12 (MBIA Insured) | 5,455 | 5,714 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #1 Rev. (Bonneville Pwr. Administration Proj.) Series B, 7% 7/1/08 | 1,000 | 1,031 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev.: | ||||
Series A, 0% 7/1/11 (Escrowed to Maturity) (i) | 1,350 | 1,148 | ||
5.4% 7/1/12 | 56,550 | 59,862 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev.: | ||||
Series A, 0% 7/1/12 (MBIA Insured) | 4,000 | 3,243 | ||
0% 7/1/10 (MBIA Insured) | 2,800 | 2,475 | ||
225,649 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value | |||
Wisconsin - 0.7% | ||||
Badger Tobacco Asset Securitization Corp. 6.125% 6/1/27 | $ 5,325 | $ 5,609 | ||
Douglas County Gen. Oblig. 5.5% 2/1/19 (FGIC Insured) | 1,035 | 1,092 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Marshfield Clinic Proj.) Series A, 5.375% 2/15/34 | 3,250 | 3,311 | ||
(Wheaton Franciscan Svcs., Inc. Proj.): | ||||
Series A: | ||||
5.5% 8/15/15 | 1,480 | 1,538 | ||
5.5% 8/15/16 | 1,545 | 1,602 | ||
5.75% 8/15/30 (Pre-Refunded to 2/15/12 @ 101) (i) | 14,250 | 15,384 | ||
6.25% 8/15/22 (Pre-Refunded to 2/15/12 @ 101) (i) | 4,300 | 4,732 | ||
33,268 | ||||
Wyoming - 0.1% | ||||
Gillette Spl. Purp. Wtr. & Swr. Utils. Sys. Rev. 7.7% 12/1/10 (Escrowed to Maturity) (i) | 4,830 | 5,315 | ||
TOTAL MUNICIPAL BONDS (Cost $4,656,332) | 4,705,925 | |||
Money Market Funds - 0.0% | ||||
Shares | ||||
Fidelity Municipal Cash Central Fund, 3.81% (f)(g) | 138,900 | 139 | ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $4,656,471) | 4,706,064 | |||
NET OTHER ASSETS - 0.0% | (35) | |||
NET ASSETS - 100% | $ 4,706,029 |
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 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 $3,017,000 or 0.1% of net assets. |
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(e) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
(f) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(g) 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. |
(h) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(i) Security collateralized by an amount sufficient to pay interest and principal. |
(j) 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 $3,692,000 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 | $ 3,474 |
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 | $ 3 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 38.0% |
Electric Utilities | 11.0% |
Special Tax | 9.8% |
Water & Sewer | 9.5% |
Transportation | 9.3% |
Escrowed/Pre-Refunded | 8.5% |
Health Care | 8.0% |
Others* (individually less than 5%) | 5.9% |
100.0% |
*Includes cash equivalents and net other assets |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | June 30, 2007 (Unaudited) | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $4,656,332) | $ 4,705,925 | |
Fidelity Central Funds (cost $139) | 139 | |
Total Investments (cost $4,656,471) | $ 4,706,064 | |
Cash | 4,822 | |
Receivable for fund shares sold | 1,910 | |
Interest receivable | 63,982 | |
Prepaid expenses | 10 | |
Other receivables | 216 | |
Total assets | 4,777,004 | |
Liabilities | ||
Payable for investments purchased | $ 8,581 | |
Delayed delivery | 47,453 | |
Payable for fund shares redeemed | 6,857 | |
Distributions payable | 5,482 | |
Accrued management fee | 1,442 | |
Other affiliated payables | 1,108 | |
Other payables and accrued expenses | 52 | |
Total liabilities | 70,975 | |
Net Assets | $ 4,706,029 | |
Net Assets consist of: | ||
Paid in capital | $ 4,639,155 | |
Undistributed net investment income | 2,428 | |
Accumulated undistributed net realized gain (loss) on investments | 14,853 | |
Net unrealized appreciation (depreciation) on investments | 49,593 | |
Net Assets, for 376,385 shares outstanding | $ 4,706,029 | |
Net Asset Value, offering price and redemption price per share ($4,706,029 ÷ 376,385 shares) | $ 12.50 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Six months ended June 30, 2007 (Unaudited) | |
Investment Income | ||
Interest | $ 106,783 | |
Income from Fidelity Central Funds | 3 | |
Total income | 106,786 | |
Expenses | ||
Management fee | $ 8,707 | |
Transfer agent fees | 1,846 | |
Accounting fees and expenses | 324 | |
Custodian fees and expenses | 34 | |
Independent trustees' compensation | 8 | |
Registration fees | 67 | |
Audit | 42 | |
Legal | 8 | |
Miscellaneous | 25 | |
Total expenses before reductions | 11,061 | |
Expense reductions | (520) | 10,541 |
Net investment income | 96,245 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 18,410 | |
Change in net unrealized appreciation (depreciation) on investment securities | (115,818) | |
Net gain (loss) | (97,408) | |
Net increase (decrease) in net assets resulting from operations | $ (1,163) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Amounts in thousands | Six months ended June 30, 2007 | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 96,245 | $ 190,305 |
Net realized gain (loss) | 18,410 | 41,962 |
Change in net unrealized appreciation (depreciation) | (115,818) | (22,071) |
Net increase (decrease) in net assets resulting | (1,163) | 210,196 |
Distributions to shareholders from net investment income | (95,989) | (189,630) |
Distributions to shareholders from net realized gain | (3,714) | (43,709) |
Total distributions | (99,703) | (233,339) |
Share transactions | 475,669 | 681,749 |
Reinvestment of distributions | 65,690 | 157,888 |
Cost of shares redeemed | (420,532) | (806,663) |
Net increase (decrease) in net assets resulting from share transactions | 120,827 | 32,974 |
Redemption fees | 14 | 18 |
Total increase (decrease) in net assets | 19,975 | 9,849 |
Net Assets | ||
Beginning of period | 4,686,054 | 4,676,205 |
End of period (including undistributed net investment income of $2,428 and undistributed net investment income of $3,035, respectively) | $ 4,706,029 | $ 4,686,054 |
Other Information Shares | ||
Sold | 37,491 | 53,337 |
Issued in reinvestment of distributions | 5,184 | 12,364 |
Redeemed | (33,219) | (63,411) |
Net increase (decrease) | 9,456 | 2,290 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended June 30,2007 | Years ended December 31, | |||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 | 2002 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 12.77 | $ 12.82 | $ 13.09 | $ 13.18 | $ 13.22 | $ 12.68 |
Income from Investment Operations | ||||||
Net investment | .257 | .529 | .549 | .571 | .585 | .603 |
Net realized and unrealized gain (loss) | (.260) | .068 | (.080) | .035 | .162 | .697 |
Total from investment operations | (.003) | .597 | .469 | .606 | .747 | 1.300 |
Distributions from net investment income | (.257) | (.527) | (.547) | (.571) | (.585) | (.600) |
Distributions from net realized gain | (.010) | (.120) | (.192) | (.125) | (.202) | (.160) |
Total distributions | (.267) | (.647) | (.739) | (.696) | (.787) | (.760) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, end of period | $ 12.50 | $ 12.77 | $ 12.82 | $ 13.09 | $ 13.18 | $ 13.22 |
Total Return B, C | (.04)% | 4.78% | 3.66% | 4.73% | 5.80% | 10.48% |
Ratios to Average Net Assets E, G | ||||||
Expenses before reductions | .47% A | .47% | .47% | .47% | .48% | .48% |
Expenses net of fee waivers, if any | .47%A | .47% | .47% | .47% | .48% | .48% |
Expenses net of all reductions | .45%A | .45% | .45% | .47% | .47% | .46% |
Net investment | 4.09%A | 4.15% | 4.22% | 4.36% | 4.42% | 4.62% |
Supplemental Data | ||||||
Net assets, end of period | $ 4,706 | $ 4,686 | $ 4,676 | $ 4,630 | $ 4,784 | $ 4,801 |
Portfolio turnover rate F | 27%A | 25% | 25% | 20% | 23% | 23% |
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 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G 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.
H Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2007 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. 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 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.
3. Significant Accounting Policies.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Security Valuation - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds 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 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. The Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
Semiannual Report
3. 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 claimed 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 federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 95,588 | |
Unrealized depreciation | (42,632) | |
Net unrealized appreciation (depreciation) | $ 52,956 | |
Cost for federal income tax purposes | $ 4,653,108 |
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 Pronouncement. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. 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 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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $728,157 and $646,476, respectively.
6. 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 annualized management fee rate was .37% of the Fund's average net assets.
Semiannual Report
6. 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. 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 annualized rate of .08% of average net assets.
7. 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 $6 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. 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 $34 and $486, respectively.
9. 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Proposed Reorganization.
On March 15, 2007, the Board of Trustees of the Fund approved an Agreement and Plan of Reorganization between the Fund and Fidelity Florida Municipal Income Fund. The agreement provides for the transfer of all the assets and the assumption of all the liabilities of Fidelity Florida Municipal Income Fund in exchange solely for the number of equivalent shares of the Fund having the same aggregate net asset value as the outstanding shares of Fidelity Florida Municipal Income Fund on the day the reorganization is effective. A meeting of shareholders of Fidelity Florida Municipal Income Fund is expected to be held on September 19, 2007 to vote on the reorganization. If approved by shareholders , the reorganization is expected to become effective on or about October 26, 2007. The reorganization is expected to qualify as a tax-free transaction with no gain or loss recognized by the Funds or their shareholders.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Municipal Income Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance, as well as the fund's relative investment performance measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the second quartile for the one-year period and the first quartile for the three- and five-year periods. The Board also stated that the relative investment performance of the fund was lower than its benchmark for the one- and three-year periods, although the fund's five-year cumulative total return compared favorably to its benchmark. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Semiannual Report
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Fidelity Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In its review of the fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of the fund compared to competitive fund median expenses. The fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the fund's total expenses ranked below its competitive median for 2006.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Semiannual Report
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
Fidelity Investments Money
Management, Inc.
Fidelity Research & Analysis Company
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
HIY-USAN-0807
1.787789.104
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Ohio Municipal Income Fund
and
Fidelity
Ohio Municipal Money Market
Fund
Semiannual Report
June 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
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. | |
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 | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://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.
Semiannual 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 holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks are currently on pace to register their fifth-straight year of positive returns, although gains could be trimmed if the U.S. economy continues to slow. 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
Semiannual 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 (January 1, 2007 to June 30, 2007).
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. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Semiannual Report
Shareholder Expense Example - continued
Beginning | Ending | Expenses Paid | |
Fidelity Ohio Municipal Income Fund | |||
Actual | $ 1,000.00 | $ 997.90 | $ 2.48 |
HypotheticalA | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Fidelity Ohio Municipal Money Market Fund | |||
Actual | $ 1,000.00 | $ 1,016.10 | $ 2.65 |
HypotheticalA | $ 1,000.00 | $ 1,022.17 | $ 2.66 |
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 181/365 (to reflect the one-half year period).
Annualized | |
Fidelity Ohio Municipal Income Fund | .50% |
Fidelity Ohio Municipal Money Market Fund | .53% |
Semiannual Report
Fidelity Ohio Municipal Income Fund
Investment Changes
Top Five Sectors as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 39.8 | 38.3 |
Water & Sewer | 13.0 | 11.7 |
Education | 12.7 | 14.2 |
Escrowed/Pre-Refunded | 12.8 | 12.6 |
Health Care | 7.2 | 6.8 |
Weighted Average Maturity as of June 30, 2007 | ||
6 months ago | ||
Years | 7.2 | 6.7 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior period figure reflects this change. |
Duration as of June 30, 2007 | ||
6 months ago | ||
Years | 6.6 | 6.4 |
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 June 30, 2007 | As of December 31, 2006 | ||||||
![]() | AAA 67.4% | ![]() | AAA 64.8% | ||||
![]() | AA,A 29.3% | ![]() | AA,A 31.8% | ||||
![]() | BBB 2.6% | ![]() | BBB 2.5% | ||||
![]() | 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. |
Semiannual Report
Fidelity Ohio Municipal Income Fund
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 99.4% | ||||
Principal Amount | Value | |||
Guam - 0.4% | ||||
Guam Ed. Fing. Foundation Series A, 5% 10/1/23 | $ 1,000,000 | $ 1,020,700 | ||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35 | 470,000 | 496,969 | ||
1,517,669 | ||||
Ohio - 96.8% | ||||
Adams County Valley Local School District | 2,000,000 | 2,012,240 | ||
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A: | ||||
5% 1/1/14 | 1,500,000 | 1,546,050 | ||
5% 1/1/15 | 1,300,000 | 1,339,260 | ||
Akron City Non-tax Rev. Econ. Dev. Series 1997, 6% 12/1/12 (MBIA Insured) | 1,250,000 | 1,340,850 | ||
Akron Ctfs. of Prtn. 5% 12/1/15 | 1,475,000 | 1,555,653 | ||
Akron Wtrwks. Rev. 5.25% 12/1/19 (MBIA Insured) | 1,630,000 | 1,721,606 | ||
Avon Lake City School District 5% 12/1/14 (MBIA Insured) | 1,205,000 | 1,278,360 | ||
Brookville Local School District: | ||||
5% 12/1/31 (Pre-Refunded to 12/1/13 @ 100) (c) | 1,000,000 | 1,055,400 | ||
5.25% 12/1/20 (Pre-Refunded to 12/1/13 @ 100) (c) | 1,875,000 | 2,005,125 | ||
Buckeye Valley Local School District Delaware County Series A, 6.85% 12/1/15 (MBIA Insured) | 2,305,000 | 2,543,083 | ||
Bucyrus City School District 5% 12/1/30 (FSA Insured) | 5,120,000 | 5,310,362 | ||
Butler County Gen. Oblig. 5.25% 12/1/16 (Pre-Refunded to 12/1/13 @ 100) (c) | 1,820,000 | 1,946,308 | ||
Butler County Sales Tax (Govt. Svcs. Ctr. Proj.) Series A, 5% 12/15/16 (AMBAC Insured) | 2,455,000 | 2,581,359 | ||
Butler County Trans. Impt. District 5% 12/1/18 (XL Cap. Assurance, Inc. Insured) | 1,015,000 | 1,071,444 | ||
Canal Winchester Local School District: | ||||
5% 12/1/18 (MBIA Insured) | 1,030,000 | 1,082,788 | ||
5% 12/1/18 (Pre-Refunded to 6/1/15 @ 100) (c) | 1,005,000 | 1,067,601 | ||
Chagrin Falls Exempted Village School District 5.25% 12/1/19 (MBIA Insured) | 1,915,000 | 2,031,758 | ||
Cincinnati City School District: | ||||
5.25% 6/1/16 (FSA Insured) | 1,500,000 | 1,586,550 | ||
5.25% 12/1/17 (Pre-Refunded to 12/1/13 @ 100) (c) | 2,000,000 | 2,138,800 | ||
5.25% 12/1/18 (FGIC Insured) | 3,000,000 | 3,268,830 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Cincinnati City School District Ctfs. Prtn. (School Impt. Proj.) 5% 12/15/28 (FSA Insured) | $ 1,000,000 | $ 1,035,760 | ||
Cincinnati Gen. Oblig. 5.375% 12/1/20 | 2,000,000 | 2,080,200 | ||
Cincinnati Student Ln. Fdg. Corp. Student Ln. Rev. | 4,000,000 | 4,009,400 | ||
Cincinnati Wtr. Sys. Rev. Series B, 5% 12/1/32 | 2,500,000 | 2,592,325 | ||
Cleveland Arpt. Sys. Rev. Series C, 5% 1/1/20 | 3,500,000 | 3,661,455 | ||
Cleveland Gen. Oblig. Series C: | ||||
5.25% 11/15/20 (FGIC Insured) | 1,100,000 | 1,202,960 | ||
5.25% 11/15/21 (FGIC Insured) | 1,145,000 | 1,254,141 | ||
5.25% 11/15/22 (FGIC Insured) | 1,210,000 | 1,319,650 | ||
5.25% 11/15/23 (FGIC Insured) | 1,885,000 | 2,056,535 | ||
Cleveland Muni. School District: | ||||
5.25% 12/1/17 (FSA Insured) | 2,215,000 | 2,361,279 | ||
5.25% 12/1/19 (FSA Insured) | 1,045,000 | 1,112,079 | ||
Cleveland Parking Facilities Rev. 5.25% 9/15/17 | 4,480,000 | 4,851,078 | ||
Cleveland Pub. Pwr. Sys. Rev.: | ||||
Series A: | ||||
0% 11/15/10 (MBIA Insured) | 1,435,000 | 1,249,124 | ||
0% 11/15/11 (MBIA Insured) | 2,395,000 | 1,997,071 | ||
0% 11/15/10 (Escrowed to Maturity) (c) | 1,250,000 | 1,092,763 | ||
0% 11/15/11 (Escrowed to Maturity) (c) | 245,000 | 205,433 | ||
Cleveland State Univ. Gen. Receipts: | ||||
Series 2003 A, 5% 6/1/18 (FGIC Insured) | 2,490,000 | 2,582,578 | ||
Series A, 4.5% 6/1/25 (FGIC Insured) | 450,000 | 439,169 | ||
5% 6/1/34 (FGIC Insured) | 5,000,000 | 5,131,850 | ||
Cleveland Wtrwks. Rev.: | ||||
(First Mtg. Prog.): | ||||
Series G, 5.5% 1/1/13 (MBIA Insured) | 2,450,000 | 2,556,967 | ||
Series H, 5.75% 1/1/16 (MBIA Insured) | 45,000 | 45,442 | ||
Series I, 5% 1/1/28 (Pre-Refunded to 1/1/08 @ 101) (c) | 25,000 | 25,398 | ||
Columbus City School District: | ||||
(School Facilities Construction and Impt. Proj.) 5% 12/1/18 (FSA Insured) | 5,000,000 | 5,296,000 | ||
5.25% 12/1/25 (Pre-Refunded to 12/1/14 @ 100) (c) | 3,780,000 | 4,070,077 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Cuyahoga County Gen. Oblig.: | ||||
Series A: | ||||
0% 10/1/11 (MBIA Insured) | $ 2,400,000 | $ 2,019,840 | ||
0% 10/1/12 (MBIA Insured) | 1,405,000 | 1,133,554 | ||
5% 12/1/19 | 3,000,000 | 3,170,550 | ||
Dayton School District (School Facility Contruction & Impt. Proj.) Series A, 5% 12/1/31 (FGIC Insured) | 5,000,000 | 5,149,100 | ||
Delaware County Sanitation Swr. Sys. 4% 12/1/20 | 625,000 | 582,281 | ||
Erie County Gen. Oblig. 5.5% 12/1/18 (FSA Insured) | 1,265,000 | 1,364,214 | ||
Fairfield City School District 7.45% 12/1/14 (FGIC Insured) | 1,000,000 | 1,154,850 | ||
Fairless Local School District 5% 12/1/32 (FSA Insured) | 3,300,000 | 3,406,986 | ||
Fairview Park City School District Gen. Oblig. 5% 12/1/33 (MBIA Insured) | 4,350,000 | 4,496,073 | ||
Fairview Park Gen. Oblig. 5% 12/1/30 (MBIA Insured) | 5,955,000 | 6,156,994 | ||
Franklin County Convention Facilities Auth. Tax & Lease Rev. 5.25% 12/1/19 (AMBAC Insured) | 4,000,000 | 4,212,920 | ||
Franklin County Hosp. Rev. 5.5% 5/1/13 (Pre-Refunded to 5/1/11 @ 101) (c) | 1,130,000 | 1,199,167 | ||
Franklin County Rev. (OCLC Online Computer Library Ctr., Inc. Proj.) 5% 4/15/12 | 2,505,000 | 2,560,310 | ||
Gallia County Hosp. Facilities Rev. (Holzer Med. Ctr. Proj.) 5.125% 10/1/13 (AMBAC Insured) | 3,000,000 | 3,071,340 | ||
Gallia County Local School District (School Impt. Proj.) 5% 12/1/33 (FSA Insured) | 3,000,000 | 3,111,180 | ||
Greene County Swr. Sys. Rev. 0% 12/1/09 (AMBAC Insured) | 775,000 | 704,243 | ||
Hamilton City School District 5% 12/1/34 (FSA Insured) | 2,000,000 | 2,071,040 | ||
Hamilton County Convention Facilities Auth. Rev.: | ||||
5% 12/1/17 (FGIC Insured) | 1,985,000 | 2,081,689 | ||
5% 12/1/18 (FGIC Insured) | 1,075,000 | 1,124,085 | ||
5% 12/1/19 (FGIC Insured) | 2,190,000 | 2,283,316 | ||
5% 12/1/19 (FGIC Insured) | 1,130,000 | 1,178,149 | ||
Hamilton County Econ. Dev. Rev. (King Highland Cmnty. Urban Redev. Corp. Proj.) Series A, 5% 6/1/17 (MBIA Insured) | 1,070,000 | 1,126,507 | ||
Hamilton County Hosp. Facilities Rev. (Childrens Hosp. Med. Ctr. Proj.) Series J: | ||||
5.25% 5/15/15 (FGIC Insured) | 1,835,000 | 1,949,853 | ||
5.25% 5/15/17 (FGIC Insured) | 2,585,000 | 2,734,155 | ||
5.25% 5/15/18 (FGIC Insured) | 2,720,000 | 2,867,016 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Hamilton County Sales Tax Rev. Series B, 5.25% 12/1/32 (AMBAC Insured) | $ 960,000 | $ 991,642 | ||
Hamilton County Swr. Sys. Rev. Series 06A, 5% 12/1/17 (MBIA Insured) | 2,050,000 | 2,171,360 | ||
Hamilton Wtrwks. Rev. 5% 10/15/16 (MBIA Insured) | 1,000,000 | 1,047,620 | ||
Hilliard Gen. Oblig. 5% 12/1/18 (MBIA Insured) | 1,000,000 | 1,046,750 | ||
Hilliard School District 0% 12/1/11 (FGIC Insured) | 3,720,000 | 3,109,585 | ||
Huber Heights Wtr. Sys. Rev. 5% 12/1/30 (MBIA Insured) | 2,285,000 | 2,370,619 | ||
Kent City School District Series 2004, 5% 12/1/20 (FGIC Insured) | 1,400,000 | 1,458,828 | ||
Kettering City School District 5.25% 12/1/31 (FSA Insured) | 4,250,000 | 4,665,650 | ||
Kings Local School District 5% 12/1/19 (MBIA Insured) | 1,365,000 | 1,428,814 | ||
Lakewood City School District: | ||||
0% 12/1/14 (FSA Insured) | 495,000 | 361,746 | ||
0% 12/1/15 (FSA Insured) | 1,500,000 | 1,044,720 | ||
0% 12/1/16 (FSA Insured) | 1,200,000 | 796,164 | ||
5.25% 12/1/15 (Pre-Refunded to 12/1/14 @ 100) (c) | 1,000,000 | 1,076,740 | ||
Lakewood Hosp. Impt. Rev. (Lakewood Hosp. Assoc. Proj.): | ||||
5.5% 2/15/10 | 1,000,000 | 1,027,300 | ||
5.5% 2/15/11 | 1,875,000 | 1,938,656 | ||
5.5% 2/15/12 | 1,000,000 | 1,043,290 | ||
Licking Heights Local School District: | ||||
(Facilities Construction & Impt. Proj.) Series A, 5% 12/1/32 (MBIA Insured) | 3,860,000 | 3,971,515 | ||
5% 12/1/28 (FGIC Insured) | 5,135,000 | 5,291,874 | ||
Lorain County Gen. Oblig. 5.5% 12/1/22 (FGIC Insured) | 2,985,000 | 3,178,219 | ||
Lucas County Hosp. Rev. (Promedia Health Care Oblig. Group Proj.): | ||||
5.375% 11/15/23 (AMBAC Insured) | 5,000,000 | 5,173,500 | ||
5.625% 11/15/12 (AMBAC Insured) | 2,000,000 | 2,091,100 | ||
5.625% 11/15/13 (AMBAC Insured) | 1,200,000 | 1,254,384 | ||
Marysville Village School District 5% 12/1/29 | 4,000,000 | 4,158,400 | ||
Marysville Wastewtr. Treatment Sys. Rev.: | ||||
4% 12/1/20 (XL Cap. Assurance, Inc. Insured) | 320,000 | 303,706 | ||
4.125% 12/1/21 (XL Cap. Assurance, Inc. Insured) | 250,000 | 238,853 | ||
4.15% 12/1/22 (XL Cap. Assurance, Inc. Insured) | 370,000 | 352,540 | ||
4.75% 12/1/47 (XL Cap. Assurance, Inc. Insured) | 1,000,000 | 970,250 | ||
Middletown City School District: | ||||
5% 12/1/17 (Pre-Refunded to 12/1/13 @ 100) (c) | 1,175,000 | 1,240,095 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Middletown City School District: - continued | ||||
5% 12/1/19 (Pre-Refunded to 12/1/13 @ 100) (c) | $ 1,110,000 | $ 1,171,494 | ||
Montgomery County Gen. Oblig. 5.5% 12/1/25 | 2,235,000 | 2,348,516 | ||
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series A: | ||||
6% 12/1/19 | 1,470,000 | 1,565,844 | ||
6% 12/1/19 (Escrowed to Maturity) (c) | 1,530,000 | 1,630,628 | ||
6% 12/1/26 (Escrowed to Maturity) (c) | 3,000,000 | 3,194,760 | ||
Montgomery County Wtr. Sys. Rev. Series 2002, 5.375% 11/15/16 (AMBAC Insured) | 2,200,000 | 2,341,284 | ||
North Olmsted Gen. Oblig. Series D, 5.25% 12/1/20 (AMBAC Insured) | 2,075,000 | 2,224,442 | ||
Northeast Ohio Reg'l. Swr. District Wastewtr. Rev. 4.25% 11/15/20 (MBIA Insured) | 1,000,000 | 974,070 | ||
Ohio Bldg. Auth.: | ||||
(Adult Correctional Bldg. Fund Prog.) Series 2001 A, 5.5% 10/1/12 (FSA Insured) | 1,000,000 | 1,059,490 | ||
(Juvenile Correctional Bldg. Fund Prog.): | ||||
Series A, 5.5% 4/1/12 (Pre-Refunded to 4/1/11 @ 100) (c) | 2,960,000 | 3,119,929 | ||
5% 4/1/17 (MBIA Insured) | 2,485,000 | 2,582,710 | ||
Ohio Gen. Oblig.: | ||||
(College Savings Prog.): | ||||
0% 8/1/10 | 1,000,000 | 887,040 | ||
0% 8/1/14 | 1,375,000 | 1,006,514 | ||
(Higher Ed. Cap. Facilities Proj.) Series A, 5.375% 8/1/16 | 5,980,000 | 6,307,525 | ||
(Mental Health Cap. Facilities Proj.) Series IIA, 5.25% 6/1/17 (Pre-Refunded to 6/1/12 @ 100) (c) | 2,670,000 | 2,818,452 | ||
Series 2002 B, 5.25% 11/1/20 | 2,520,000 | 2,657,164 | ||
Series A, 5.5% 9/15/16 | 11,060,000 | 11,728,902 | ||
Series D, 5% 3/1/24 | 3,415,000 | 3,535,891 | ||
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 | 2,139,420 | ||
6.5% 10/1/20 | 2,335,000 | 2,767,442 | ||
6.125% 10/1/15 | 2,000,000 | 2,261,180 | ||
6.25% 10/1/16 | 2,500,000 | 2,884,775 | ||
(John Carroll Univ. Proj.) 5% 4/1/17 | 1,000,000 | 1,037,930 | ||
(Univ. Hosp. Health Sys. Proj.) Series A, 4.75% 1/15/46 | 1,950,000 | 1,844,778 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Ohio Higher Edl. Facility Commission Rev.: - continued | ||||
(Univ. of Dayton Proj.) 5% 12/1/17 (AMBAC Insured) | $ 2,170,000 | $ 2,282,254 | ||
Ohio Muni. Elec. Gen. Agcy. (Belleville Hydroelectric Proj.) 5% 2/15/17 (AMBAC Insured) | 1,215,000 | 1,271,984 | ||
Ohio Poll. Cont. Rev. (Standard Oil Co. Proj.) 6.75% 12/1/15 | 3,100,000 | 3,642,810 | ||
Ohio Solid Waste Rev. (Waste Mgmt., Inc. Proj.) 4.85%, tender 11/1/07 (a)(b) | 3,020,000 | 3,024,923 | ||
Ohio State Univ. Gen. Receipts: | ||||
Series 2002 A, 5.125% 12/1/31 | 5,000,000 | 5,174,950 | ||
Series B, 5.25% 6/1/16 | 5,000,000 | 5,306,750 | ||
Ohio Tpk. Commission Tpk. Rev. 5.5% 2/15/26 | 3,700,000 | 3,859,433 | ||
Ohio Univ. Gen. Receipts Athens: | ||||
Subseries B, 5% 12/1/31 (FSA Insured) | 3,540,000 | 3,682,627 | ||
5% 12/1/18 (MBIA Insured) | 1,980,000 | 2,064,368 | ||
Ohio Wtr. Dev. Auth. Rev.: | ||||
(Drinking Wtr. Fund Prog.) Series 2005: | ||||
5.25% 6/1/18 | 2,610,000 | 2,842,943 | ||
5.25% 12/1/18 | 2,610,000 | 2,848,815 | ||
(Fresh Wtr. Impt. Proj.): | ||||
Series B, 5.5% 6/1/16 (FSA Insured) | 1,560,000 | 1,717,841 | ||
5% 12/1/34 (Pre-Refunded to 6/1/14 @ 100) (c) | 6,300,000 | 6,661,053 | ||
5.25% 12/1/15 | 2,200,000 | 2,361,546 | ||
5.5% 6/1/17 | 3,960,000 | 4,383,641 | ||
(Pure Wtr. Proj.) Series I, 6% 12/1/16 (Escrowed to Maturity) (c) | 1,685,000 | 1,831,376 | ||
5% 12/1/17 | 3,765,000 | 3,948,393 | ||
5.25% 6/1/13 (MBIA Insured) | 1,295,000 | 1,375,148 | ||
5.25% 12/1/13 (MBIA Insured) | 1,305,000 | 1,391,769 | ||
5.25% 6/1/14 (MBIA Insured) | 1,250,000 | 1,336,425 | ||
5.25% 12/1/14 (MBIA Insured) | 1,260,000 | 1,352,522 | ||
5.25% 12/1/15 (MBIA Insured) | 1,180,000 | 1,272,134 | ||
5.25% 6/1/17 (MBIA Insured) | 1,160,000 | 1,259,783 | ||
Ohio Wtr. Dev. Auth. Solid Waste Disp. Rev. (North Star BHP Steel/Cargill Proj.) 6.3% 9/1/20 (b) | 6,350,000 | 6,374,765 | ||
Ohio Wtr. Dev. Auth. Wtr. Poll. Cont. Rev.: | ||||
5% 6/1/18 | 2,000,000 | 2,092,540 | ||
5.25% 12/1/19 | 1,975,000 | 2,161,815 | ||
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 | 1,146,975 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Olentangy Local School District: - continued | ||||
5% 12/1/30 (FSA Insured) | $ 5,345,000 | $ 5,543,727 | ||
Otsego Local School District Wood, Henry & Lucas Counties 5.375% 12/1/32 (Pre-Refunded to 12/1/14 @ 100) (c) | 1,000,000 | 1,084,670 | ||
Penta Career Ctr. Ctfs. of Prtn.: | ||||
(Ohio School Facilities Proj.) 5.25% 4/1/17 (FGIC Insured) | 1,755,000 | 1,859,949 | ||
(Wood, Lucas, Sandusky, Fulton, Ottawa, Henry and Hancock Counties, Ohio School Facilities Proj.) 5.25% 4/1/19 (FGIC Insured) | 1,940,000 | 2,054,848 | ||
Plain Local School District 6% 12/1/25 (FGIC Insured) | 990,000 | 1,054,261 | ||
Richland County Hosp. Facilities (MedCentral Health Sys. Proj.) Series B: | ||||
6.375% 11/15/22 | 500,000 | 533,215 | ||
6.375% 11/15/22 (Pre-Refunded to 11/15/10 @ 101) (c) | 1,000,000 | 1,085,650 | ||
6.375% 11/15/30 | 330,000 | 350,965 | ||
6.375% 11/15/30 (Pre-Refunded to 11/15/10 @ 101) (c) | 670,000 | 727,386 | ||
RiverSouth Auth. Rev. Series 2005 A, 5.25% 12/1/15 | 1,000,000 | 1,074,410 | ||
Rocky River Gen. Oblig. 5% 12/1/19 (AMBAC Insured) | 2,125,000 | 2,217,034 | ||
Scioto County Marine Term. Facilities Rev. (Norfolk Southern Corp. Proj.) 5.3% 8/15/13 | 3,000,000 | 3,068,160 | ||
Sharonville Gen. Oblig. 5.25% 6/1/16 (FGIC Insured) | 1,410,000 | 1,494,233 | ||
Springboro Cmnty. City School District: | ||||
5.25% 12/1/20 (FSA Insured) | 2,780,000 | 3,034,982 | ||
5.25% 12/1/21 (Pre-Refunded to 6/1/14 @ 100) (c) | 3,440,000 | 3,688,506 | ||
Sugarcreek Local School District (School Impt. Proj.): | ||||
5% 12/1/17 (Pre-Refunded to 12/1/13 @ 100) (c) | 1,030,000 | 1,087,062 | ||
5% 12/1/31 (Pre-Refunded to 12/1/13 @ 100) (c) | 300,000 | 316,620 | ||
Summit County Gen. Oblig.: | ||||
5.25% 12/1/20 | 1,645,000 | 1,748,651 | ||
5.25% 12/1/21 | 1,740,000 | 1,846,627 | ||
Tallmadge School District Gen. Oblig. 5% 12/1/31 | 4,000,000 | 4,139,720 | ||
Toledo Wtrwks. Rev.: | ||||
5% 11/15/16 (AMBAC Insured) | 1,110,000 | 1,163,480 | ||
5% 11/15/30 (MBIA Insured) | 3,500,000 | 3,618,160 | ||
Univ. of Akron Gen. Receipts Series B, 5% 1/1/27 (FGIC Insured) | 1,405,000 | 1,451,337 | ||
Univ. of Cincinnati Ctfs. of Prtn.: | ||||
5.5% 6/1/11 (MBIA Insured) | 1,045,000 | 1,097,459 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Ohio - continued | ||||
Univ. of Cincinnati Ctfs. of Prtn.: - continued | ||||
5.5% 6/1/12 (MBIA Insured) | $ 1,315,000 | $ 1,380,158 | ||
5.5% 6/1/15 (MBIA Insured) | 1,000,000 | 1,048,250 | ||
Univ. of Cincinnati Gen. Receipts Series 2004 A: | ||||
5% 6/1/18 (AMBAC Insured) | 1,445,000 | 1,510,979 | ||
5% 6/1/19 (AMBAC Insured) | 1,520,000 | 1,584,767 | ||
Warren County Gen. Oblig.: | ||||
6.1% 12/1/12 | 440,000 | 461,938 | ||
6.65% 12/1/11 | 280,000 | 295,492 | ||
West Muskingum Local School District School Facilities Construction and Impt. 5% 12/1/30 (FGIC Insured) | 1,060,000 | 1,091,546 | ||
Wright State Univ. Gen. Receipts: | ||||
5% 5/1/17 (MBIA Insured) | 1,375,000 | 1,441,248 | ||
5% 5/1/18 (MBIA Insured) | 1,440,000 | 1,505,030 | ||
5% 5/1/19 (MBIA Insured) | 1,515,000 | 1,580,675 | ||
403,426,451 | ||||
Puerto Rico - 1.3% | ||||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Series 2000 A, 5.5% 10/1/40 (Escrowed to Maturity) (c) | 2,725,000 | 2,865,855 | ||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Series QQ, 5.5% 7/1/17 (XL Cap. Assurance, Inc. Insured) | 1,300,000 | 1,435,603 | ||
Puerto Rico Pub. Bldg. Auth. Rev. Series G, 5.25% 7/1/13 | 1,000,000 | 1,044,070 | ||
5,345,528 | ||||
Virgin Islands - 0.9% | ||||
Virgin Islands Pub. Fin. Auth. Refinery Facilities Rev. 4.7% 7/1/22 (b) | 1,100,000 | 1,079,804 | ||
Virgin Islands Pub. Fin. Auth. Rev. Series A, 5% 10/1/09 | 500,000 | 509,395 | ||
Virgin Islands Wtr. & Pwr. Auth. Elec. Sys. Rev. Series A, 5% 7/1/22 | 2,000,000 | 2,033,020 | ||
3,622,219 |
TOTAL INVESTMENT PORTFOLIO - 99.4% (Cost $412,208,852) | 413,911,867 | ||
NET OTHER ASSETS - 0.6% | 2,621,781 | ||
NET ASSETS - 100% | $ 416,533,648 |
Swap Agreements | |||||
Expiration Date | Notional Amount | Value | |||
Interest Rate Swaps | |||||
Receive quarterly a floating rate based on BMA Municipal Swap Index and pay quarterly a fixed rate equal to 4.125% with Citibank | August 2037 | $ 1,500,000 | $ 36,055 |
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 | 39.8% |
Water & Sewer | 13.0% |
Education | 12.7% |
Escrowed/Pre-Refunded | 12.8% |
Health Care | 7.2% |
Others* (individually less than 5%) | 14.5% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Ohio Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
June 30, 2007 (Unaudited) | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $412,208,852) | $ 413,911,867 | |
Cash | 717,714 | |
Receivable for investments sold | 37,934 | |
Receivable for fund shares sold | 239,520 | |
Interest receivable | 3,021,343 | |
Swap agreements, at value | 36,055 | |
Prepaid expenses | 939 | |
Other receivables | 34,685 | |
Total assets | 418,000,057 | |
Liabilities | ||
Payable for fund shares redeemed | $ 818,694 | |
Distributions payable | 385,052 | |
Accrued management fee | 127,533 | |
Transfer agent fee payable | 80,670 | |
Other affiliated payables | 28,697 | |
Other payables and accrued expenses | 25,763 | |
Total liabilities | 1,466,409 | |
Net Assets | $ 416,533,648 | |
Net Assets consist of: | ||
Paid in capital | $ 414,146,608 | |
Undistributed net investment income | 103,317 | |
Accumulated undistributed net realized gain (loss) on investments | 544,653 | |
Net unrealized appreciation (depreciation) on investments | 1,739,070 | |
Net Assets, for 36,755,608 shares outstanding | $ 416,533,648 | |
Net Asset Value, offering price and redemption price per share ($416,533,648 ÷ 36,755,608 shares) | $ 11.33 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Ohio Municipal Income Fund
Financial Statements - continued
Statement of Operations
Six months ended June 30, 2007 (Unaudited) | ||
Investment Income | ||
Interest | $ 9,123,477 | |
Expenses | ||
Management fee | $ 774,482 | |
Transfer agent fees | 160,798 | |
Accounting fees and expenses | 54,669 | |
Custodian fees and expenses | 3,039 | |
Independent trustees' compensation | 682 | |
Registration fees | 14,463 | |
Audit | 25,219 | |
Legal | 1,310 | |
Miscellaneous | 2,311 | |
Total expenses before reductions | 1,036,973 | |
Expense reductions | (51,503) | 985,470 |
Net investment income | 8,138,007 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 763,193 | |
Futures contracts | (23,060) | |
Total net realized gain (loss) | 740,133 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (9,649,440) | |
Futures contracts | 205 | |
Swap agreements | 36,055 | |
Total change in net unrealized appreciation (depreciation) | (9,613,180) | |
Net gain (loss) | (8,873,047) | |
Net increase (decrease) in net assets resulting from operations | $ (735,040) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Six months ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 8,138,007 | $ 16,563,469 |
Net realized gain (loss) | 740,133 | 5,031,324 |
Change in net unrealized appreciation (depreciation) | (9,613,180) | (3,467,937) |
Net increase (decrease) in net assets resulting | (735,040) | 18,126,856 |
Distributions to shareholders from net investment income | (8,137,266) | (16,558,868) |
Distributions to shareholders from net realized gain | (907,060) | (3,971,411) |
Total distributions | (9,044,326) | (20,530,279) |
Share transactions | 28,538,892 | 44,437,006 |
Reinvestment of distributions | 6,503,127 | 14,914,786 |
Cost of shares redeemed | (30,607,269) | (59,920,439) |
Net increase (decrease) in net assets resulting from share transactions | 4,434,750 | (568,647) |
Redemption fees | 275 | 906 |
Total increase (decrease) in net assets | (5,344,341) | (2,971,164) |
Net Assets | ||
Beginning of period | 421,877,989 | 424,849,153 |
End of period (including undistributed net investment income of $103,317 and undistributed net investment income of $175,678, respectively) | $ 416,533,648 | $ 421,877,989 |
Other Information Shares | ||
Sold | 2,479,869 | 3,827,254 |
Issued in reinvestment of distributions | 566,002 | 1,285,302 |
Redeemed | (2,667,249) | (5,176,446) |
Net increase (decrease) | 378,622 | (63,890) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended June 30, 2007 | Years ended December 31, | |||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 | 2002 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 11.60 | $ 11.66 | $ 11.98 | $ 12.10 | $ 12.03 | $ 11.54 |
Income from Investment Operations | ||||||
Net investment income D | .222 | .459 | .476 | .496 | .507 | .527 |
Net realized and unrealized gain (loss) | (.245) | .050 | (.135) | .026 | .166 | .568 |
Total from investment operations | (.023) | .509 | .341 | .522 | .673 | 1.095 |
Distributions from net investment income | (.222) | (.459) | (.476) | (.497) | (.508) | (.525) |
Distributions from net realized gain | (.025) | (.110) | (.185) | (.145) | (.095) | (.080) |
Total distributions | (.247) | (.569) | (.661) | (.642) | (.603) | (.605) |
Redemption fees added to paid in capital D, F | - | - | - | - | - | - |
Net asset value, | $ 11.33 | $ 11.60 | $ 11.66 | $ 11.98 | $ 12.10 | $ 12.03 |
Total Return B, C | (.21)% | 4.47% | 2.90% | 4.44% | 5.72% | 9.68% |
Ratios to Average Net Assets E | ||||||
Expenses before reductions | .50% A | .49% | .50% | .50% | .51% | .51% |
Expenses net of fee waivers, if any | .50% A | .49% | .50% | .50% | .51% | .51% |
Expenses net of all reductions | .47% A | .45% | .47% | .49% | .50% | .49% |
Net investment income | 3.89% A | 3.96% | 4.00% | 4.13% | 4.20% | 4.45% |
Supplemental Data | ||||||
Net assets, | $ 416,534 | $ 421,878 | $ 424,849 | $ 423,597 | $ 431,039 | $ 435,057 |
Portfolio turnover rate | 25% A | 19% | 23% | 26% | 22% | 19% |
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 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.
Semiannual Report
Fidelity Ohio Municipal Money Market Fund
Investment Changes
Maturity Diversification | |||
Days | % of fund's investments 6/30/07 | % of fund's investments 12/31/06 | % of fund's investments 6/30/06 |
0 - 30 | 83.9 | 85.7 | 87.4 |
31 - 90 | 4.8 | 2.3 | 5.8 |
91 - 180 | 3.7 | 2.7 | 3.7 |
181 - 397 | 7.6 | 9.3 | 3.1 |
Weighted Average Maturity | |||
6/30/07 | 12/31/06 | 6/30/06 | |
Fidelity Ohio Municipal Money | 35 Days | 38 Days | 24 Days |
Ohio Tax-Free Money Market | 36 Days | 39 Days | 32 Days |
Asset Allocation (% of fund's net assets) | |||||||
As of June 30, 2007 | As of December 31, 2006 | ||||||
![]() | Variable Rate | ![]() | Variable Rate | ||||
![]() | Commercial Paper (including CP Mode) 1.0% | ![]() | Commercial Paper (including CP Mode) 0.5% | ||||
![]() | Tender Bonds 0.8% | ![]() | Tender Bonds 0.9% | ||||
![]() | Municipal Notes 13.5% | ![]() | Municipal Notes 11.4% | ||||
![]() | Fidelity Municipal | ![]() | Fidelity Municipal | ||||
![]() | Other Investments 0.2% | ![]() | Other Investments 1.2% | ||||
![]() | Net Other Assets 3.4% | ![]() | Net Other Assets 2.9% |
*Source: iMoneyNet, Inc.
Semiannual Report
Fidelity Ohio Municipal Money Market Fund
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Securities - 96.6% | |||
Principal Amount | Value | ||
Ohio - 96.2% | |||
Akron Income Tax Rev. Participating VRDN Series ROC II R2137, 3.79% (Liquidity Facility Citigroup, Inc.) (b)(d) | $ 3,160,000 | $ 3,160,000 | |
American Muni. Pwr. Bonds (Omega Joint Venture 6 Proj.) 3.78%, tender 8/15/07 (b) | 7,980,000 | 7,980,000 | |
Ashtabula County Indl. Dev. Rev. (Plasticolors, Inc. Proj.) | 1,530,000 | 1,530,000 | |
Avon Local School District BAN (School Construction Proj.) 4.125% 1/11/08 | 1,510,000 | 1,513,828 | |
Bellefontaine Hosp. Facilities Rev. (Mary Rutan Hosp. Proj.) 3.78%, LOC Nat'l. City Bank Cleveland, VRDN (b) | 7,350,000 | 7,350,000 | |
Butler County Hosp. Facilities Rev. Participating VRDN | 6,665,000 | 6,665,000 | |
Cambridge Hosp. Facilities Rev. (Southeastern Reg'l. Med. Ctr. Proj.) 3.9%, LOC Nat'l. City Bank Cleveland, VRDN (b) | 3,350,000 | 3,350,000 | |
Cincinnati City School District Participating VRDN Series Putters 1177, 3.79% (Liquidity Facility Deutsche Postbank AG) (b)(d) | 13,630,000 | 13,630,000 | |
Cincinnati School Dev. Participating VRDN Series ROC II RR 9033 3.79% (Liquidity Facility Citigroup, Inc.) (b)(d) | 2,290,000 | 2,290,000 | |
Cincinnati Wtr. Sys. Rev. Participating VRDN Series ROC II R7528, 3.79% (Liquidity Facility Citigroup, Inc.) (b)(d) | 2,610,000 | 2,610,000 | |
Clark County Gen. Oblig. BAN: | |||
3.83% 11/14/07 | 3,000,000 | 3,002,482 | |
4% 5/8/08 | 1,000,000 | 1,002,293 | |
Clermont County Indl. Dev. Rev. (American Micro Products Proj.) 3.87%, LOC KeyBank NA, VRDN (b)(c) | 1,315,000 | 1,315,000 | |
Cleveland Arpt. Sys. Rev. Participating VRDN: | |||
Series PT 3731, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 15,000,000 | 15,000,000 | |
Series PT 799, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 1,500,000 | 1,500,000 | |
Series Stars 06 149, 3.81% (Liquidity Facility BNP Paribas SA) (b)(c)(d) | 7,885,000 | 7,885,000 | |
Cleveland-Cuyahoga County Port Auth. Rev.: | |||
(Carnegie/96th Research Bldg., LLC Proj.) Series 2003, 3.8%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 11,575,000 | 11,575,000 | |
(Euclid/93rd Garage & Office LLC Proj.) Series 2003, 3.8%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 6,000,000 | 6,000,000 | |
Clinton Massie Local School District BAN (School Construction Proj.) 4% 11/21/07 | 2,180,000 | 2,183,049 | |
Columbus City School District Participating VRDN Series 1488, 3.79% (Liquidity Facility JPMorgan Chase Bank) (b)(d) | 3,330,000 | 3,330,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Columbus Gen. Oblig.: | |||
Bonds 5.25% 1/1/08 | $ 1,000,000 | $ 1,008,660 | |
Participating VRDN Series Putters 162, 3.8% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 5,130,000 | 5,130,000 | |
Crawford County Hosp. Facilities Rev. (Galion Cmnty. Hosp. Proj.) 3.85%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b) | 5,000,000 | 5,000,000 | |
Cuyahoga County Arpt. Facilities Rev. (Corporate Wings-Cleveland LLC Proj.) 3.85%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 3,440,000 | 3,440,000 | |
Cuyahoga County Civic Facilities Rev. (Fairfax Dev. Corp. Proj.) 3.8%, LOC KeyBank NA, VRDN (b) | 4,255,000 | 4,255,000 | |
Cuyahoga County Cultural Facilities Rev. (Maltz Museum of Jewish Heritage Proj.) 3.78%, LOC Bank of New York, New York, VRDN (b) | 6,300,000 | 6,300,000 | |
Cuyahoga County Health Care Facilities Rev. (Altenheim Proj.) 3.78%, LOC U.S. Bank NA, Minnesota, VRDN (b) | 5,965,000 | 5,965,000 | |
Cuyahoga County Hosp. Rev. Participating VRDN Series MT 264, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 2,890,000 | 2,890,000 | |
Cuyahoga County Indl. Dev. Rev.: | |||
(Progressive Plastics, Inc. Proj.) 4.15%, LOC JPMorgan Chase Bank, VRDN (b)(c) | 990,000 | 990,000 | |
(Pubco Corp. Proj.) Series 2001, 3.85%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 2,140,000 | 2,140,000 | |
(The Great Lakes Brewing Co. Proj.) 4%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(c) | 4,300,000 | 4,300,000 | |
Cuyahoga County Rev. (Cleveland Clinic Health Sys. Obligated Group Prog.) Subseries B3, 3.91%, VRDN (b) | 2,600,000 | 2,600,000 | |
Darke County Health Care Facilities Rev. (Brethren Retirement Cmnty. Proj.) 3.81%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 7,015,000 | 7,015,000 | |
Dayton Montgomery County Port Auth. Spl. Arpt. Facilities Rev. (Wilmington Air Park, Inc. Proj.): | |||
Series 2007 A, 3.91% (Deutsche Post AG Guaranteed), VRDN (b)(c) | 10,000,000 | 10,000,000 | |
Series 2007 B, 3.91% (Deutsche Post AG Guaranteed), VRDN (b)(c) | 10,000,000 | 10,000,000 | |
Series 2007 C, 3.91% (Deutsche Post AG Guaranteed), VRDN (b)(c) | 10,000,000 | 10,000,000 | |
Delaware County Health Care Facilities (Willow Brook Christian Cmnty. Proj.) Series 1999, 3.85%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b) | 3,425,000 | 3,425,000 | |
Delaware Gen. Oblig. BAN 4% 5/8/08 | 9,900,000 | 9,926,826 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Elyria Gen. Oblig. BAN Series A, 4.5% 7/19/07 | $ 4,500,000 | $ 4,501,502 | |
Erie County Gen. Oblig. BAN: | |||
4.25% 9/27/07 | 5,000,000 | 5,006,471 | |
4.25% 9/27/07 | 7,500,000 | 7,509,706 | |
4.5% 9/27/07 | 700,000 | 701,319 | |
Erie County Hosp. Facilities Rev. Participating VRDN Series MT 253, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 7,490,000 | 7,490,000 | |
Erie County Multi-family Hsg. Rev. (Providence Residential Cmnty. Corp. Proj.) Series 1999 A, 3.78%, LOC JPMorgan Chase Bank, VRDN (b) | 8,025,000 | 8,025,000 | |
Euclid Gen. Oblig. BAN (Waterline Impt. Proj.) 4% 10/30/07 | 3,000,000 | 3,003,352 | |
Fairfield County Gen. Oblig. BAN 4% 12/6/07 | 2,200,000 | 2,203,762 | |
Franklin County Health Care Facilities Rev. (Willow Brook Christian Village Proj.) 3.8%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 10,790,000 | 10,790,000 | |
Franklin County Multi-family Rev. (Hanover Ridge Apts. Proj. 3.8%, LOC Fannie Mae, VRDN (b)(c) | 4,350,000 | 4,350,000 | |
Greene County Gen. Oblig. BAN Series E, 4.25% 11/20/07 | 4,505,000 | 4,515,094 | |
Grove City Gen. Oblig. BAN 4% 3/14/08 | 9,530,240 | 9,556,679 | |
Hamilton City School District Participating VRDN Series Putters 1766, 3.8% (Liquidity Facility JPMorgan Chase Bank) (b)(d) | 4,245,000 | 4,245,000 | |
Hamilton County Health Care Facilities Rev. 3.77%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 3,950,000 | 3,950,000 | |
Hamilton County Sales Tax Rev. Participating VRDN: | |||
Series MS 06 1839, 3.79% (Liquidity Facility Morgan Stanley) (b)(d) | 8,150,000 | 8,150,000 | |
Series Putters 1875, 3.79% (Liquidity Facility JPMorgan Chase Bank) (b)(d) | 5,260,000 | 5,260,000 | |
Hamilton Gen. Oblig. BAN 4.5% 9/14/07 | 11,210,000 | 11,227,762 | |
Hancock County Gen. Oblig. BAN 4.5% 11/8/07 | 4,000,000 | 4,010,880 | |
Jackson Local School District Stark & Summit Counties Participating VRDN Series PT 2334, 3.78% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 7,890,000 | 7,890,000 | |
Kettering Indl. Dev. Rev. (Millat Inds. Corp. Proj.) 3.9%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 2,510,000 | 2,510,000 | |
Lake County Indl. Dev. Rev.: | |||
(American Bus. Co. Proj.) 4.03%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(c) | 660,000 | 660,000 | |
(Norshar Co. Proj.) 4.15%, LOC JPMorgan Chase Bank, VRDN (b)(c) | 2,720,000 | 2,720,000 | |
Lebanon Gen. Oblig. BAN 4.25% 5/30/08 | 5,270,000 | 5,296,475 | |
Lima Hosp. Rev. (Lima Memorial Hosp. Proj.) 3.83%, LOC JPMorgan Chase Bank, VRDN (b) | 4,500,000 | 4,500,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Lorain County Gen. Oblig. BAN (Swr. Systems Impt. Proj.) Series C, 4.5% 11/14/07 | $ 1,850,000 | $ 1,856,055 | |
Lucas County Multi-family Rev. (Lakewoods Proj.) 3.87%, LOC KeyBank NA, VRDN (b)(c) | 4,000,000 | 4,000,000 | |
Marysville Gen. Oblig. BAN 4.125% 6/5/08 | 7,670,000 | 7,700,579 | |
Mason Gen. Oblig. BAN 4.25% 3/13/08 | 2,600,000 | 2,610,522 | |
Mason Indl. Dev. Rev. (Crane Plastics Co. Proj.) 3.83%, LOC U.S. Bank NA, Minnesota, VRDN (b)(c) | 4,000,000 | 4,000,000 | |
Medina County Indl. Dev. Rev. (Rembond Proj.) Series 1996, 4.15%, LOC JPMorgan Chase Bank, VRDN (b)(c) | 1,445,000 | 1,445,000 | |
Middletown Hosp. Facilities Rev. Participating VRDN Series MT 239, 3.82% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 8,000,000 | 8,000,000 | |
Montgomery County Health Care Facilities Rev.: | |||
(Eastway Corp. & Property Resource Proj.) Series 1997, 4.03%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b)(c) | 2,415,000 | 2,415,000 | |
(Kettering Affiliated Proj.) 3.83%, LOC JPMorgan Chase Bank, VRDN (b) | 6,775,000 | 6,775,000 | |
Montgomery County Multi-family Hsg. Dev. Rev. (Pedcor Invts.-Lyons Gate Proj.) 3.8%, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (b)(c) | 4,287,000 | 4,287,000 | |
New Albany Gen. Oblig. BAN 4.25% 12/13/07 | 2,800,000 | 2,807,409 | |
Northeast Ohio Reg'l. Swr. District Wastewtr. Rev. Participating VRDN Series Putters 1887, 3.79% (Liquidity Facility JPMorgan Chase Bank) (b)(d) | 5,585,000 | 5,585,000 | |
Ohio Air Quality Participating VRDN Series LB 06 47, 3.82% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (b)(c)(d) | 9,990,000 | 9,990,000 | |
Ohio Air Quality Dev. Auth. Rev.: | |||
Participating VRDN Series PA 1415 R, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 11,500,000 | 11,500,000 | |
(AK Steel Corp. Proj.) Series A, 3.81%, LOC ABN-AMRO Bank NV, VRDN (b)(c) | 23,500,000 | 23,500,000 | |
(Cincinnati Gas & Elec. Co. Proj.) Series A: | |||
3.94%, LOC Cr. Lyonnais SA, VRDN (b)(c) | 12,100,000 | 12,100,000 | |
3.98%, VRDN (b) | 7,800,000 | 7,800,000 | |
(FirstEnergy Corp. Proj.) Series A, 3.76%, LOC Wachovia Bank NA, VRDN (b)(c) | 20,100,000 | 20,100,000 | |
Ohio Bldg. Auth. Participating VRDN: | |||
Series Putters 790, 3.8% (Liquidity Facility JPMorgan Chase Bank) (b)(d) | 5,340,000 | 5,340,000 | |
Series Putters 793, 3.8% (Liquidity Facility JPMorgan Chase & Co.) (b)(d) | 2,060,000 | 2,060,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Consolidated Pub. Impt. Participating VRDN Series EC 1139, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | $ 19,900,000 | $ 19,900,000 | |
Ohio Gen. Oblig.: | |||
Bonds (Hwy. Cap. Improvements Buckeye Savers Prog.) Series K, 4% 5/1/08 | 1,450,000 | 1,453,876 | |
Participating VRDN: | |||
Series EC 1073, 3.8% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 1,440,000 | 1,440,000 | |
Series EC 1074, 3.8% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 6,800,000 | 6,800,000 | |
Series Putters 1295, 3.79% (Liquidity Facility JPMorgan Chase Bank) (b)(d) | 2,990,000 | 2,990,000 | |
Series Putters 1394, 3.8% (Liquidity Facility JPMorgan Chase Bank) (b)(d) | 5,140,000 | 5,140,000 | |
Ohio Higher Ed. Participating VRDN Series ROC II R 11009, 3.79% (Liquidity Facility Citibank NA) (b)(d) | 7,875,000 | 7,875,000 | |
Ohio Higher Edl. Facility Commission Rev.: | |||
Participating VRDN: | |||
Series EGL 07 0041, 3.79% (Liquidity Facility Landesbank Hessen-Thuringen) (b)(d) | 9,700,000 | 9,700,000 | |
Series EGL 7053020 Class A, 3.79% (Liquidity Facility Landesbank Hessen-Thuringen) (b)(d) | 25,020,000 | 25,019,997 | |
Series PT 3877, 3.82% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 4,970,000 | 4,970,000 | |
(Ashland Univ. Proj.) 3.78%, LOC KeyBank NA, VRDN (b) | 16,670,000 | 16,670,000 | |
(Pooled Fing. Prog.): | |||
Series 1996, 3.83%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 1,300,000 | 1,300,000 | |
Series 1997, 3.83%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 3,600,000 | 3,600,000 | |
Series 1998, 3.83%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 8,805,000 | 8,805,000 | |
Series 1999, 3.83%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 8,080,000 | 8,080,000 | |
Series A, 3.8%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 1,160,000 | 1,160,000 | |
(Univ. of Northwestern Ohio Proj.) 3.85%, LOC Huntington Nat'l. Bank, Columbus, VRDN (b) | 9,750,000 | 9,750,000 | |
3.72% 8/10/07 (Liquidity Facility JPMorgan Chase Bank), CP | 9,900,000 | 9,900,000 | |
Ohio Hsg. Participating VRDN Series Clipper 06 8, 3.82% (Liquidity Facility State Street Bank & Trust Co., Boston) (b)(c)(d) | 6,720,000 | 6,720,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Hsg. Fin. Agcy. Mtg. Rev.: | |||
Participating VRDN: | |||
Series BA 01 I, 3.82% (Liquidity Facility Bank of America NA) (b)(c)(d) | $ 2,700,000 | $ 2,700,000 | |
Series BA 98 B, 3.82% (Liquidity Facility Bank of America NA) (b)(c)(d) | 12,470,000 | 12,470,000 | |
Series BA 98 Q, 3.88% (Liquidity Facility Bank of America NA) (b)(c)(d) | 4,505,000 | 4,505,000 | |
Series BS 3055, 3.81% (Liquidity Facility Bear Stearns Companies, Inc.) (b)(c)(d) | 9,995,000 | 9,995,000 | |
Series BS 7050, 3.81% (Liquidity Facility Bear Stearns Companies, Inc.) (b)(c)(d) | 7,500,000 | 7,500,000 | |
Series LB 03 L46J, 3.82% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (b)(c)(d) | 4,680,000 | 4,680,000 | |
Series Merlots 00 A1, 3.84% (Liquidity Facility Wachovia Bank NA) (b)(c)(d) | 2,580,000 | 2,580,000 | |
Series Merlots 01 A78, 3.84% (Liquidity Facility Wachovia Bank NA) (b)(c)(d) | 1,315,000 | 1,315,000 | |
Series Merlots 02 A34, 3.84% (Liquidity Facility Wachovia Bank NA) (b)(c)(d) | 1,065,000 | 1,065,000 | |
Series Merlots 05 A16, 3.84% (Liquidity Facility Bank of New York, New York) (b)(c)(d) | 4,570,000 | 4,570,000 | |
Series Merlots 06 A2, 3.84% (Liquidity Facility Bank of New York, New York) (b)(c)(d) | 8,530,000 | 8,530,000 | |
Series PT 228, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 2,905,000 | 2,905,000 | |
Series PT 567, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(c)(d) | 40,000 | 40,000 | |
Series PT 582, 3.79% (Liquidity Facility Svenska Handelsbanken AB) (b)(c)(d) | 4,930,000 | 4,930,000 | |
Series Putters 1334, 3.83% (Liquidity Facility JPMorgan Chase & Co.) (b)(c)(d) | 9,850,000 | 9,850,000 | |
(Mortgage-Backed Securities Prog.) Series 2005 B2, 3.79% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(c) | 7,530,000 | 7,530,000 | |
Series B, 3.78% (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (b)(c) | 11,990,000 | 11,990,000 | |
Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.: | |||
(Club at Spring Valley Apts. Proj.) Series 1996 A, 3.78%, LOC Charter One Bank NA, VRDN (b)(c) | 5,700,000 | 5,700,000 | |
(Pedcor Invts. Willow Lake Apts. Proj.): | |||
Series A, 3.8%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(c) | 2,835,000 | 2,835,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.: - continued | |||
(Pedcor Invts. Willow Lake Apts. Proj.): | |||
Series B, 3.9%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(c) | $ 465,000 | $ 465,000 | |
Series C, 3.9%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(c) | 360,000 | 360,000 | |
Series D, 3.9%, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (b)(c) | 360,000 | 360,000 | |
(Pine Crossing Apts. Proj.) 3.79%, LOC LaSalle Bank NA, VRDN (b)(c) | 5,670,000 | 5,670,000 | |
(Shannon Glenn Apts. Proj.) 3.81%, LOC Fannie Mae, VRDN (b)(c) | 11,800,000 | 11,800,000 | |
(Wingate at Belle Meadows Proj.) 3.81%, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (b)(c) | 8,750,000 | 8,750,000 | |
Ohio Hsg. Fin. Agcy. Residential Mtg. Rev.: | |||
Participating VRDN Series Putters 1549, 3.83% (Liquidity Facility JPMorgan Chase Bank) (b)(c)(d) | 7,530,000 | 7,530,000 | |
Series 06N, 3.79% (Liquidity Facility State Street Bank & Trust Co., Boston), VRDN (b)(c) | 20,000,000 | 20,000,000 | |
Ohio Solid Waste Rev.: | |||
(BP Exploration & Oil, Inc. Proj.) Series 1998, 3.95%, VRDN (b)(c) | 8,975,000 | 8,975,000 | |
(BP Products NA, Inc. Proj.) 3.95% (BP PLC Guaranteed), VRDN (b)(c) | 3,000,000 | 3,000,000 | |
(Republic Svcs., Inc. Proj.) 4%, VRDN (b)(c) | 7,700,000 | 7,700,000 | |
Ohio State Hsg. Fin. Agcy. Residential Mtg. Participating VRDN Series LB 06 K 25, 3.82% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (b)(c)(d) | 4,000,000 | 4,000,000 | |
Ohio Tpk. Commission Tpk. Rev. Participating VRDN Series EC 1140, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 21,770,000 | 21,770,000 | |
Ohio Wtr. Dev. Auth. (Waste Mgmt., Inc. Proj.) Series B, 3.8%, LOC Bank of America NA, VRDN (b)(c) | 4,700,000 | 4,700,000 | |
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev.: | |||
Participating VRDN Series Putters 558, 3.8% (Liquidity Facility JPMorgan Chase & Co.) (b)(d) | 4,530,000 | 4,530,000 | |
(FirstEnergy Corp. Proj.): | |||
Series A, 3.77%, LOC Barclays Bank PLC, VRDN (b)(c) | 19,000,000 | 19,000,000 | |
3.78%, LOC Wachovia Bank NA, VRDN (b)(c) | 11,200,000 | 11,200,000 | |
Series A, 3.79%, LOC Barclays Bank PLC, VRDN (b)(c) | 11,600,000 | 11,600,000 | |
Perrysburg Gen. Oblig. BAN: | |||
(Library Impt. Proj.) 4.25% 11/8/07 | 1,000,000 | 1,002,129 | |
4.25% 11/8/07 | 2,393,000 | 2,398,094 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Port of Greater Cincinnati Dev. Auth. Rev. (Nat'l. Underground Railroad Freedom Ctr., Inc. Proj.) Series 2003 A, 3.8%, LOC JPMorgan Chase Bank, LOC Fifth Third Bank, Cincinnati, VRDN (b) | $ 300,000 | $ 300,000 | |
Portage County Indl. Dev. Rev. (Mantaline Corp. Proj.) 3.9%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 1,685,000 | 1,685,000 | |
Powell Gen. Oblig. BAN 4.5% 4/24/08 | 3,400,000 | 3,422,964 | |
Princeton City School District Participating VRDN Series ROC II RR 9059, 3.79% (Liquidity Facility Citigroup, Inc.) (b)(d) | 5,430,000 | 5,430,000 | |
Richland County Health Care Facilities Rev. (Mansfield Memorial Homes Proj.) Series 2002, 3.83%, LOC KeyBank NA, VRDN (b) | 4,520,000 | 4,520,000 | |
Richland County Indl. Dev. Rev. (Sabin Robbins Paper Co. Proj.) Series 1997, 3.87%, LOC LaSalle Bank Midwest NA, VRDN (b)(c) | 1,400,000 | 1,400,000 | |
Rickenbacker Port Auth. Indl. Dev. (Micro Inds. Corp. Proj.) Series 2000, 4.15%, LOC JPMorgan Chase Bank, VRDN (b)(c) | 2,260,000 | 2,260,000 | |
Solon Gen. Oblig. BAN 4% 11/21/07 | 1,000,000 | 1,001,512 | |
Stark County Indl. Dev. Rev. (H-P Products, Inc. Proj.) 3.87%, LOC KeyBank NA, VRDN (b)(c) | 1,860,000 | 1,860,000 | |
Summit County Civic Facilities Rev. (YMCA of Akron Proj.) 3.8%, LOC KeyBank NA, VRDN (b) | 4,515,000 | 4,515,000 | |
Summit County Indl. Dev. Rev.: | |||
(Commercial Alloys Corp. Proj.): | |||
3.85%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 1,875,000 | 1,875,000 | |
3.9%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 1,200,000 | 1,200,000 | |
(Kaiser Dev. Proj.) 4.3%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 540,000 | 540,000 | |
(Keltec, Inc. Proj.) Series 1987, 4.3%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 40,000 | 40,000 | |
(Mannix Co. Proj.) Series 1987, 4.3%, LOC JPMorgan Chase Bank, VRDN (b)(c) | 220,000 | 220,000 | |
(Sigma Properties Proj.) Series 2000 B, 3.9%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 1,485,000 | 1,485,000 | |
(Triumph Hldgs. Proj.) 3.9%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 1,110,000 | 1,110,000 | |
Sylvania Gen. Oblig. BAN 4% 4/17/08 | 4,500,000 | 4,512,773 | |
Toledo City School District Participating VRDN Series Putters 655, 3.8% (Liquidity Facility JPMorgan Chase Bank) (b)(d) | 1,695,000 | 1,695,000 | |
Trumbull County BAN 4% 3/27/08 | 7,300,000 | 7,315,435 | |
Tuscarawas County Hosp. Facilities Rev. Participating VRDN Series MT 103, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (b)(d) | 2,945,000 | 2,945,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Univ. of Cincinnati Gen. Receipts BAN: | |||
3.73% 10/1/07 | $ 8,300,000 | $ 8,300,000 | |
4.5% 1/24/08 (a) | 10,000,000 | 10,041,200 | |
Upper Arlington BAN 4.25% 1/7/08 | 3,972,000 | 3,983,946 | |
Village of Indian Hill Econ. Dev. Rev. (Cincinnati Country Day School Proj.) Series 1999, 3.8%, LOC Nat'l. City Bank Cleveland, VRDN (b) | 4,545,000 | 4,545,000 | |
Warren County Health Care Facilities Rev. (Otterbein Homes Proj.) Series 1998 B, 3.76%, LOC Fifth Third Bank, Cincinnati, VRDN (b) | 6,724,000 | 6,724,000 | |
West Chester Township Gen. Oblig. BAN 4.125% 4/2/08 | 5,000,000 | 5,018,743 | |
Westerville Gen. Oblig. BAN (Electic Sys. Impt. Proj.) 4.5% 9/20/07 | 1,575,000 | 1,578,035 | |
Wood County Indl. Dev. Rev.: | |||
(CMC Group Proj.) Series 2001, 3.9%, LOC Nat'l. City Bank Cleveland, VRDN (b)(c) | 1,845,000 | 1,845,000 | |
(Dowa THT America, Inc. Proj.) Series 1999, 3.81%, LOC Comerica Bank, Detroit, VRDN (b)(c) | 3,585,000 | 3,585,000 | |
Zanesville-Muskingum Port Auth. Indl. Dev. Rev. (Almana II LLC Proj.) Series 2000, 3.9%, LOC JPMorgan Chase Bank, VRDN (b)(c) | 4,600,000 | 4,600,000 | |
980,529,409 | |||
Puerto Rico - 0.4% | |||
Puerto Rico Commonwealth Infrastructure Fing. Auth. Participating VRDN Series TOC 05 Z6, 3.79% (Liquidity Facility Goldman Sachs Group, Inc.) (b)(d) | 3,518,000 | 3,518,000 | |
TOTAL INVESTMENT PORTFOLIO - 96.6% (Cost $984,047,409) | 984,047,409 | ||
NET OTHER ASSETS - 3.4% | 34,863,858 | ||
NET ASSETS - 100% | $ 1,018,911,267 |
Security Type Abbreviations |
BAN - BOND ANTICIPATION NOTE |
CP - COMMERCIAL PAPER |
VRDN - VARIABLE RATE DEMAND NOTE |
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) 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 | $ 2,345 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Ohio Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
June 30, 2007 (Unaudited) | ||
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $984,047,409) | $ 984,047,409 | |
Cash | 4,032,503 | |
Receivable for investments sold | 37,475,904 | |
Receivable for fund shares sold | 8,805,327 | |
Interest receivable | 7,481,137 | |
Prepaid expenses | 1,710 | |
Other receivables | 295,662 | |
Total assets | 1,042,139,652 | |
Liabilities | ||
Payable for investments purchased | $ 10,301,227 | |
Payable for fund shares redeemed | 7,158,869 | |
Distributions payable | 124,476 | |
Accrued management fee | 319,258 | |
Other affiliated payables | 369,160 | |
Other payables and accrued expenses | 4,955,395 | |
Total liabilities | 23,228,385 | |
Net Assets | $ 1,018,911,267 | |
Net Assets consist of: | ||
Paid in capital | $ 1,018,831,704 | |
Undistributed net investment income | 105,353 | |
Accumulated undistributed net realized gain (loss) on investments | (25,790) | |
Net Assets, for 1,018,819,526 shares outstanding | $ 1,018,911,267 | |
Net Asset Value, offering price and redemption price per share ($1,018,911,267 ÷ 1,018,819,526 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended June 30, 2007 (Unaudited) | ||
Investment Income | ||
Interest | $ 17,864,277 | |
Income from Fidelity Central Funds | 2,345 | |
Total income | 17,866,622 | |
Expenses | ||
Management fee | $ 1,821,034 | |
Transfer agent fees | 677,140 | |
Accounting fees and expenses | 58,203 | |
Custodian fees and expenses | 7,785 | |
Independent trustees' compensation | 1,525 | |
Registration fees | 14,998 | |
Audit | 21,308 | |
Legal | 2,937 | |
Miscellaneous | 3,588 | |
Total expenses before reductions | 2,608,518 | |
Expense reductions | (619,123) | 1,989,395 |
Net investment income | 15,877,227 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (32,217) | |
Net increase in net assets resulting from operations | $ 15,845,010 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Ohio Municipal Money Market Fund
Financial Statements - continued
Statement of Changes in Net Assets
Six months ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 15,877,227 | $ 25,274,135 |
Net realized gain (loss) | (32,217) | 17,473 |
Net increase in net assets resulting | 15,845,010 | 25,291,608 |
Distributions to shareholders from net investment income | (15,853,031) | (25,274,018) |
Share transactions at net asset value of $1.00 per share | 1,415,184,803 | 2,254,001,151 |
Reinvestment of distributions | 15,591,476 | 25,013,218 |
Cost of shares redeemed | (1,368,307,263) | (2,124,486,464) |
Net increase (decrease) in net assets and shares resulting from share transactions | 62,469,016 | 154,527,905 |
Total increase (decrease) in net assets | 62,460,995 | 154,545,495 |
Net Assets | ||
Beginning of period | 956,450,272 | 801,904,777 |
End of period (including undistributed net investment income of $105,353 and undistributed net investment income of $81,157, respectively) | $ 1,018,911,267 | $ 956,450,272 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended June 30, 2007 | Years ended December 31, | |||||
(Unaudited) | 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 | $ 1.00 |
Income from Investment Operations | ||||||
Net investment income | .016 | .030 | .020 | .008 | .006 | .011 |
Distributions from net investment income | (.016) | (.030) | (.020) | (.008) | (.006) | (.011) |
Net asset value, | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return B, C | 1.61% | 3.01% | 1.99% | .76% | .64% | 1.13% |
Ratios to Average Net Assets D, E | ||||||
Expenses before reductions | .53% A | .54% | .54% | .54% | .54% | .54% |
Expenses net of fee waivers, if any | .53% A | .54% | .54% | .54% | .54% | .54% |
Expenses net of all reductions | .40% A | .40% | .43% | .53% | .53% | .51% |
Net investment income | 3.23% A | 2.98% | 1.98% | .77% | .64% | 1.12% |
Supplemental Data | ||||||
Net assets, | $ 1,018,911 | $ 956,450 | $ 801,905 | $ 770,058 | $ 687,760 | $ 652,072 |
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 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.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2007 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. 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 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.
3. Significant Accounting Policies.
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 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
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation - continued
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.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day for the Income Fund and trades executed through the end of the current business day for the Money Market Fund. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. 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 Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. 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 Funds claimed 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.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
Cost for Federal | Unrealized | Unrealized | Net Unrealized | |
Fidelity Ohio Municipal Income Fund | $ 412,202,770 | $ 6,012,479 | $ (4,303,382) | $ 1,709,097 |
Fidelity Ohio Municipal Money Market Fund | 984,047,409 | - | - | - |
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.
Semiannual Report
3. Significant Accounting Policies - continued
New Accounting Pronouncement. 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.
4. 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.
Swap Agreements. The Income Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.
Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact the Fund.
Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the Fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
Swap Agreements - continued
Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the Fund's Schedule of Investments under the caption "Swap Agreements."
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $56,564,130 and $51,441,796, respectively.
6. 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 annualized management fee rate expressed as a percentage of each Fund's average net assets was as follows:
Individual Rate | Group Rate | Total | |
Fidelity Ohio Municipal Income Fund | .25% | .12% | .37% |
Fidelity Ohio 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 annualized rates expressed as a percentage of average net assets:
Fidelity Ohio Municipal Income Fund | .08% | | |
Fidelity Ohio Municipal Money Market Fund | .14% |
Semiannual Report
7. 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 | $ 519 |
During the period, there were no borrowings on this line of credit.
8. 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 | $ 3,039 | $ 48,464 | $ - |
Fidelity Ohio Municipal Money | 7,668 | 601,060 | 10,395 |
9. 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.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Ohio Municipal Income Fund / Fidelity Ohio Municipal Money Market Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for each fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of the management fee and total expenses of each fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to each fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for each fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Semiannual Report
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' portfolio managers and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of a fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether each fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured against (i) a broad-based securities market index (bond fund only, as money market funds are typically not compared against a market index), and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. For each fund, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark") (bond fund only), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Semiannual Report
Fidelity Ohio Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the first quartile for all the periods shown. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ohio Municipal Money Market Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the second quartile for all the periods shown.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 26% would mean that 74% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.
Semiannual Report
Fidelity Ohio Municipal Income Fund
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Ohio Municipal Money Market Fund
The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of each fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each fund compared to competitive fund median expenses. Each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each fund's total expenses ranked below its competitive median for 2006.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that each fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Semiannual Report
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and determined that the amount of profit is a fair entrepreneurial profit for the management of each fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of each fund's management contract, the Board approved amendments to each fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Semiannual 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.
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
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Maine
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Maryland
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Semiannual Report
Michigan
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North Carolina
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Ohio
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Oregon
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Pennsylvania
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Utah
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Virginia
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Washington
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Washington, DC
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Wisconsin
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Semiannual Report
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100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
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Semiannual Report
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Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
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Management, Inc.
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www.fidelity.com
Fidelity®
Pennsylvania Municipal
Income Fund
and
Fidelity
Pennsylvania Municipal
Money Market Fund
Semiannual Report
June 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders | |
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 and one year. | |
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 | |
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://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.
Semiannual 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 holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks are currently on pace to register their fifth-straight year of positive returns, although gains could be trimmed if the U.S. economy continues to slow. 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
Semiannual 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 (January 1, 2007 to June 30, 2007).
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. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Semiannual Report
Shareholder Expense Example - continued
Beginning | Ending | Expenses Paid | |
Fidelity Pennsylvania Municipal Income Fund | |||
Actual | $ 1,000.00 | $ 1,002.80 | $ 2.48 |
HypotheticalA | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Fidelity Pennsylvania Municipal Money Market Fund | |||
Actual | $ 1,000.00 | $ 1,016.20 | $ 2.50 |
HypotheticalA | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
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 181/365 (to reflect the one-half year period).
Annualized | |
Fidelity Pennsylvania Municipal Income Fund | .50% |
Fidelity Pennsylvania Municipal Money Market Fund | .50% |
Semiannual Report
Fidelity Pennsylvania Municipal Income Fund
Investment Changes
Top Five Sectors as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 30.8 | 32.8 |
Escrowed/Pre-Refunded | 14.6 | 12.8 |
Transportation | 13.0 | 14.4 |
Education | 12.7 | 9.8 |
Health Care | 11.7 | 11.5 |
Weighted Average Maturity as of June 30, 2007 | ||
6 months ago | ||
Years | 5.9 | 5.6 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior period figure reflects this change. |
Duration as of June 30, 2007 | ||
6 months ago | ||
Years | 5.9 | 5.4 |
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 June 30, 2007 | As of December 31, 2006 | ||||||
![]() | AAA 73.9% | ![]() | AAA 74.6% | ||||
![]() | AA,A 24.1% | ![]() | AA,A 17.8% | ||||
![]() | BBB 3.8% | ![]() | BBB 4.9% | ||||
![]() | BB and Below 1.9% | ![]() | BB and Below 0.1% | ||||
![]() | Not Rated 0.0% | ![]() | Not Rated 1.1% | ||||
![]() | 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. |
*Short-Term Investments and Net Other Assets are not included in the pie chart.
Semiannual Report
Fidelity Pennsylvania Municipal Income Fund
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 103.7% | ||||
Principal Amount | Value | |||
Guam - 0.1% | ||||
Guam Wtrwks. Auth. Wtr. and Wastewtr. Sys. Rev. 5.875% 7/1/35 | $ 325,000 | $ 343,649 | ||
New Jersey/Pennsylvania - 1.7% | ||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5.25% 7/1/19 (Pre-Refunded to 7/1/13 @ 100) (e) | 1,000,000 | 1,064,340 | ||
Delaware River Port Auth. Pennsylvania & New Jersey Rev.: | ||||
(Port District Proj.) Series A, 5.5% 1/1/18 (FSA Insured) | 3,000,000 | 3,185,760 | ||
Series 1999, 6% 1/1/18 (FSA Insured) | 700,000 | 734,202 | ||
4,984,302 | ||||
Pennsylvania - 100.9% | ||||
Allegheny County Series C55, 5.375% 11/1/15 (MBIA Insured) | 3,535,000 | 3,762,230 | ||
Allegheny County Arpt. Auth. Rev. (Pittsburg Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (MBIA Insured) (d) | 2,545,000 | 2,643,059 | ||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.): | ||||
Series A1: | ||||
5.75% 1/1/11 (MBIA Insured) (d) | 2,000,000 | 2,101,620 | ||
5.75% 1/1/12 (MBIA Insured) (d) | 3,000,000 | 3,183,390 | ||
5.75% 1/1/14 (MBIA Insured) (d) | 3,000,000 | 3,226,440 | ||
5.75% 1/1/09 (MBIA Insured) (d) | 3,000,000 | 3,076,020 | ||
Allegheny County Higher Ed. Bldg. Auth. Univ. Rev.: | ||||
(Carnegie Mellon Univ. Proj.): | ||||
5.125% 3/1/32 | 1,700,000 | 1,747,668 | ||
5.25% 3/1/32 | 2,000,000 | 2,070,740 | ||
(Duquesne Univ. Proj.) 6.5% 3/1/10 (AMBAC Insured) | 260,000 | 276,406 | ||
Allegheny County Hosp. Dev. Auth. Rev.: | ||||
(Health Ctr.-UPMC Health Sys. Proj.) Series A: | ||||
4.625% 8/1/12 (MBIA Insured) | 1,000,000 | 1,010,500 | ||
4.625% 8/1/14 (MBIA Insured) | 3,560,000 | 3,593,144 | ||
(Jefferson Reg'l. Med. Ctr. Proj.) Series B: | ||||
4.05% 5/1/08 | 1,425,000 | 1,422,150 | ||
5% 5/1/09 | 1,475,000 | 1,492,051 | ||
(West Penn Allegheny Health Sys. Proj.) Series A, 5% 11/15/09 | 1,750,000 | 1,763,055 | ||
Allegheny County Indl. Dev. Auth. Rev. (Watson Institute Ed. Ctr. Proj.) 3.375%, tender 5/1/08, LOC PNC Bank NA, Pittsburgh (c) | 3,000,000 | 2,980,560 | ||
Allegheny County San. Auth. Swr. Rev.: | ||||
0% 12/1/12 (Escrowed to Maturity) (e) | 2,260,000 | 1,806,169 | ||
5.5% 12/1/30 (MBIA Insured) | 305,000 | 320,195 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Pennsylvania - continued | ||||
Annville-Cleona School District: | ||||
6% 3/1/28 (FSA Insured) | $ 1,500,000 | $ 1,679,280 | ||
6% 3/1/31 (FSA Insured) | 1,975,000 | 2,206,924 | ||
Bristol Borough School District: | ||||
5.25% 3/1/25 (Pre-Refunded to 9/1/15 @ 100) (e) | 2,400,000 | 2,594,736 | ||
5.25% 3/1/31 (Pre-Refunded to 9/1/15 @ 100) (e) | 5,495,000 | 5,940,864 | ||
Bucks County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania Suburban Wtr. Co. Proj.) Series 2002, 5.55% 9/1/32 (FGIC Insured) (d) | 1,870,000 | 1,951,532 | ||
Canon McMillan School District: | ||||
Series 2001 B, 5.75% 12/1/33 (FGIC Insured) (b) | 8,995,000 | 9,438,543 | ||
Series 2002 B, 5.75% 12/1/35 (FGIC Insured) | 2,500,000 | 2,679,300 | ||
Central Dauphin School District Gen. Oblig. 7.5% 2/1/30 (Pre-Refunded to 2/1/16 @ 100) (e) | 5,000,000 | 6,209,900 | ||
Chambersburg Area School District: | ||||
5.25% 3/1/26 (Fgic Corp. Insured) (a) | 2,000,000 | 2,120,940 | ||
5.25% 3/1/27 (Fgic Corp. Insured) (a) | 2,000,000 | 2,119,540 | ||
5.25% 3/1/29 (Fgic Corp. Insured) (a) | 3,600,000 | 3,807,576 | ||
Chester County Health & Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series B, 5.25% 5/15/22 (AMBAC Insured) | 1,450,000 | 1,477,405 | ||
Delaware County Auth. College Rev. (Haverford College Proj.): | ||||
5.75% 11/15/29 | 5,000,000 | 5,290,250 | ||
6% 11/15/30 | 3,620,000 | 3,868,803 | ||
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.): | ||||
Series A: | ||||
5% 12/15/09 | 865,000 | 876,885 | ||
5% 12/15/10 | 905,000 | 922,448 | ||
Series B: | ||||
4% 12/15/07 | 305,000 | 304,576 | ||
5% 12/15/08 | 800,000 | 806,960 | ||
Delaware County Indl. Dev. Auth. Rev. (Philadelphia Suburban Wtr. Co. Proj.) 6% 6/1/29 (FGIC Insured) (d) | 2,500,000 | 2,606,900 | ||
Delaware County Reg'l. Wtr. Quality Cont. Auth. Swr. Rev. Series 2001, 5.25% 5/1/12 (FGIC Insured) | 2,165,000 | 2,273,077 | ||
East Stroudsburg Area School District: | ||||
6.5% 9/1/18 (FSA Insured) | 1,280,000 | 1,495,411 | ||
7.5% 9/1/22 (FSA Insured) | 1,500,000 | 1,860,000 | ||
7.75% 9/1/28 (FSA Insured) | 2,750,000 | 3,459,198 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Pennsylvania - continued | ||||
Easton Area School District Series 2006, 7.5% 4/1/22 (FSA Insured) | $ 2,700,000 | $ 3,339,171 | ||
Harrisburg Auth. Dauphin County School Rev. (Harrisburg School District Rfdg. Proj.) 5.5% 4/1/14 (FGIC Insured) | 1,655,000 | 1,761,086 | ||
Harrisburg Auth. Wtr. Rev. 5.75% 7/15/12 (FGIC Insured) | 1,115,000 | 1,184,777 | ||
Kennett Consolidated School District Series A: | ||||
5.25% 2/15/15 (FGIC Insured) | 705,000 | 745,968 | ||
5.25% 2/15/15 (Pre-Refunded to 2/15/13 @ 100) (e) | 605,000 | 642,335 | ||
Lancaster County Hosp. Auth. Rev.: | ||||
(Lancaster Gen. Hosp. Proj.) Series A: | ||||
5% 3/15/19 | 1,195,000 | 1,237,650 | ||
5% 3/15/20 | 1,255,000 | 1,294,821 | ||
5% 11/1/20 | 1,065,000 | 1,089,633 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(d) | 2,000,000 | 1,970,060 | ||
Mifflin County School District: | ||||
7.5% 9/1/26 (XL Cap. Assurance, Inc. Insured) (a) | 1,125,000 | 1,417,556 | ||
7.75% 9/1/30 (XL Cap. Assurance, Inc. Insured) (a) | 1,175,000 | 1,503,401 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series A: | ||||
6% 6/1/09 (AMBAC Insured) | 2,365,000 | 2,453,924 | ||
6% 6/1/16 (AMBAC Insured) | 1,000,000 | 1,127,000 | ||
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 | 1,013,660 | ||
Montgomery County Indl. Dev. Auth. Poll. Cont. Rev. (Retirement Cmnty. Proj.) 5% 11/15/09 | 1,300,000 | 1,319,864 | ||
Muhlenberg School District Series AA, 5.375% 9/1/15 (FGIC Insured) | 1,055,000 | 1,124,957 | ||
Northumberland County Auth. Commonwealth Lease Rev. (State Correctional Facilities Proj.) 0% 10/15/10 (Escrowed to Maturity) (e) | 1,000,000 | 877,130 | ||
Owen J. Roberts School District 5.5% 8/15/19 (Pre-Refunded to 8/15/12 @ 100) (e) | 1,525,000 | 1,630,454 | ||
Oxford Area School District 5.375% 2/1/27 (FGIC Insured) | 1,790,000 | 1,911,201 | ||
Pennsbury School District 5.5% 1/15/17 (Pre-Refunded to 7/15/12 @ 100) (e) | 2,160,000 | 2,299,126 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Pennsylvania - continued | ||||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.: | ||||
(Amtrak Proj.) Series 2001 A: | ||||
6.25% 11/1/31 (d) | $ 3,300,000 | $ 3,497,274 | ||
6.375% 11/1/41 (d) | 1,300,000 | 1,381,926 | ||
(Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(d) | 3,500,000 | 3,494,190 | ||
Pennsylvania Gen. Oblig. First Series: | ||||
5% 7/1/19 | 2,500,000 | 2,622,425 | ||
5.25% 2/1/14 | 125,000 | 131,360 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Drexel Univ. Proj.) Series A: | ||||
5% 5/1/16 (MBIA Insured) | 1,135,000 | 1,200,365 | ||
5% 5/1/18 (MBIA Insured) | 1,220,000 | 1,281,939 | ||
(Lafayette College Proj.) 6% 5/1/30 | 2,500,000 | 2,627,250 | ||
(Slippery Rock Univ. Proj.) 5% 7/1/39 (XL Cap. Assurance, Inc. Insured) | 2,500,000 | 2,575,325 | ||
(Trustees of the Univ. of Pennsylvania Proj.) Series B, 5.25% 9/1/15 | 1,000,000 | 1,080,420 | ||
(Univ. of Pennsylvania Health Systems Proj.) Series A, 5% 8/15/17 (AMBAC Insured) | 3,000,000 | 3,157,080 | ||
(UPMC Health Sys. Proj.): | ||||
Series 1999 A: | ||||
5.25% 8/1/10 (FSA Insured) | 1,000,000 | 1,035,020 | ||
5.25% 8/1/11 (FSA Insured) | 1,000,000 | 1,034,410 | ||
Series 2001 A: | ||||
6% 1/15/22 | 400,000 | 424,800 | ||
6% 1/15/31 | 1,000,000 | 1,061,660 | ||
Series 2000 S, 5.5% 6/15/15 (AMBAC Insured) | 500,000 | 521,190 | ||
Pennsylvania Hsg. Fin. Agcy. Single Family Mortgage Rev. Series 54A, 5.375% 10/1/28 (d) | 135,000 | 135,967 | ||
Pennsylvania Indl. Dev. Auth. Rev. 5.5% 7/1/16 (AMBAC Insured) | 1,080,000 | 1,162,490 | ||
Pennsylvania Pub. School Bldg. Auth. School Rev.: | ||||
(Northwestern School District Proj.) Series E, 5.75% 1/15/19 (FGIC Insured) | 500,000 | 514,185 | ||
(Philadelphia School District Proj.) 5% 6/1/33 (Pre-Refunded to 6/1/13 @ 100) (e) | 3,210,000 | 3,375,508 | ||
Pennsylvania State Univ.: | ||||
Series 2007 B, 5.25% 8/15/21 | 3,095,000 | 3,389,737 | ||
Series B: | ||||
5.25% 8/15/17 | 1,150,000 | 1,251,568 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Pennsylvania - continued | ||||
Pennsylvania State Univ.: - continued | ||||
Series B: | ||||
5.25% 8/15/18 | $ 1,360,000 | $ 1,476,878 | ||
5% 9/1/29 | 1,550,000 | 1,605,537 | ||
5% 9/1/35 | 4,485,000 | 4,627,130 | ||
Pennsylvania Tpk. Commission Tpk. Rev.: | ||||
Series A: | ||||
5% 12/1/25 (AMBAC Insured) | 7,345,000 | 7,639,094 | ||
5% 12/1/26 (AMBAC Insured) | 2,000,000 | 2,078,580 | ||
Series S, 5.625% 6/1/12 (FGIC Insured) | 2,000,000 | 2,138,740 | ||
Philadelphia Arpt. Rev. 5.375% 6/15/11 (FGIC Insured) (d) | 3,770,000 | 3,885,852 | ||
Philadelphia Gas Works Rev.: | ||||
(1998 Gen. Ordinance Proj.) 4th Series, 5.25% 8/1/17 (FSA Insured) | 2,290,000 | 2,413,866 | ||
Fifth Series A1, 5% 9/1/33 (FSA Insured) | 2,800,000 | 2,870,896 | ||
Series 17, 5.375% 7/1/20 (FSA Insured) | 2,700,000 | 2,850,336 | ||
Series 18: | ||||
5.25% 8/1/17 | 1,500,000 | 1,584,180 | ||
5.25% 8/1/19 | 1,000,000 | 1,049,910 | ||
5.25% 8/1/20 | 1,000,000 | 1,048,050 | ||
Series A1, 5.25% 9/1/18 (Assured Guaranty Ltd. Insured) | 3,340,000 | 3,518,757 | ||
Seventh Series 1998, 5% 10/1/37 (AMBAC Insured) | 2,000,000 | 2,061,300 | ||
Philadelphia Gen. Oblig. 5.25% 9/15/12 (FSA Insured) | 2,455,000 | 2,555,851 | ||
Philadelphia Hosp. & Higher Ed. Facilities Auth. Health Sys. Rev. (Jefferson Health Sys. Proj.) Series A: | ||||
5% 5/15/09 | 1,000,000 | 1,017,890 | ||
5.5% 5/15/08 | 1,000,000 | 1,013,790 | ||
Philadelphia Muni. Auth. Rev.: | ||||
(Muni. Svcs. Bldg. Lease Prog.) 0% 3/15/11 (FSA Insured) | 1,000,000 | 856,100 | ||
Series B, 5.25% 11/15/11 (FSA Insured) | 2,000,000 | 2,095,780 | ||
Philadelphia Redev. Auth. Rev. (Philadelphia Neighborhood Transformation Initiative Proj.) Series 2005 C, 5% 4/15/31 (FGIC Insured) | 1,000,000 | 1,027,810 | ||
Philadelphia School District: | ||||
Series 2002 A, 5.5% 2/1/26 (Pre-Refunded to 2/1/12 @ 100) (e) | 1,565,000 | 1,662,828 | ||
Series 2004 D, 5.25% 6/1/34 (Pre-Refunded to 6/1/14 @ 100) (e) | 2,785,000 | 2,986,188 | ||
Series 2005 D: | ||||
5.5% 6/1/16 (FSA Insured) | 2,030,000 | 2,221,145 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Pennsylvania - continued | ||||
Philadelphia School District: - continued | ||||
Series 2005 D: | ||||
5.5% 6/1/17 (FSA Insured) | $ 2,125,000 | $ 2,334,228 | ||
Series D, 5.125% 6/1/34 (Pre-Refunded to 6/1/14 @ 100) (e) | 1,800,000 | 1,916,604 | ||
Philadelphia Wtr. & Wastewtr. Rev.: | ||||
Series 14, 0% 10/1/08 (MBIA Insured) | 5,300,000 | 5,052,384 | ||
Series A: | ||||
5% 11/1/31 (FGIC Insured) | 1,120,000 | 1,147,765 | ||
5% 7/1/35 (FSA Insured) | 2,130,000 | 2,192,153 | ||
5.375% 11/1/19 (FGIC Insured) | 3,000,000 | 3,181,050 | ||
Pittsburgh Gen. Oblig.: | ||||
Series A: | ||||
5% 9/1/11 (MBIA Insured) | 5,020,000 | 5,212,115 | ||
5.5% 9/1/16 (AMBAC Insured) | 2,565,000 | 2,713,411 | ||
5.5% 9/1/16 (Pre-Refunded to 3/1/12 @ 100) (e) | 2,435,000 | 2,589,671 | ||
Series B: | ||||
5.25% 9/1/15 (FSA Insured) | 2,000,000 | 2,153,660 | ||
5.25% 9/1/16 (FSA Insured) | 3,000,000 | 3,241,950 | ||
Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. Series A, 6.5% 9/1/13 (FGIC Insured) | 10,000,000 | 11,065,395 | ||
Scranton-Lackawanna Health & Welfare Auth. Rev. (Cmnty. Med. Ctr. Proj.) 5.5% 7/1/12 (MBIA Insured) | 3,375,000 | 3,459,038 | ||
Spring-Ford Area School District: | ||||
5.375% 4/1/16 (FSA Insured) | 790,000 | 837,116 | ||
5.375% 4/1/17 (FSA Insured) | 830,000 | 876,198 | ||
5.375% 4/1/18 (FSA Insured) | 875,000 | 923,318 | ||
Upper Saint Clair Township School District 5.375% 7/15/16 (FSA Insured) | 1,855,000 | 1,971,846 | ||
West Allegheny School District Series B, 5.25% 2/1/12 (FGIC Insured) | 1,850,000 | 1,948,069 | ||
Westmoreland County Gen. Oblig.: | ||||
0% 8/1/15 (Escrowed to Maturity) (e) | 4,290,000 | 3,050,276 | ||
0% 8/1/16 (Escrowed to Maturity) (e) | 2,955,000 | 2,005,204 | ||
Westmoreland County Indl. Dev. Auth. Rev. (Nat'l. Waste & Energy Corp./Valley Landfill Expansion Proj.) 5.1%, tender 5/1/09 (c)(d) | 2,700,000 | 2,723,166 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev.: | ||||
Series A: | ||||
0% 8/15/19 (FGIC Insured) | 5,000,000 | 2,872,200 | ||
0% 8/15/20 (FGIC Insured) | 2,500,000 | 1,366,600 | ||
Series C, 0% 8/15/17 (Escrowed to Maturity) (e) | 2,500,000 | 1,608,400 | ||
Municipal Bonds - continued | ||||
Principal Amount | Value | |||
Pennsylvania - continued | ||||
Wilson School District 5.25% 6/1/25 (XL Cap. Assurance, Inc. Insured) (a) | $ 5,740,000 | $ 6,079,464 | ||
York City Swr. Auth. Swr. Rev. 0% 12/1/12 (MBIA Insured) | 3,235,000 | 2,578,554 | ||
York County School of Technology Auth. Lease Rev. 5.375% 2/15/18 (Pre-Refunded to 2/15/13 @ 100) (e) | 1,000,000 | 1,067,930 | ||
301,820,561 | ||||
Puerto Rico - 1.0% | ||||
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.: | ||||
Series II, 5.375% 7/1/16 (MBIA Insured) | 1,000,000 | 1,069,830 | ||
Series QQ, 5.25% 7/1/13 (XL Cap. Assurance, Inc. Insured) | 500,000 | 531,895 | ||
Puerto Rico Govt. Dev. Bank Series B, 5% 12/1/10 | 1,500,000 | 1,538,130 | ||
3,139,855 |
TOTAL INVESTMENT PORTFOLIO - 103.7% (Cost $306,929,221) | 310,288,367 | ||
NET OTHER ASSETS - (3.7)% | (11,191,048) | ||
NET ASSETS - 100% | $ 299,097,319 |
Futures Contracts | |||||
Expiration Date | Underlying Face Amount at Value | Unrealized Appreciation/ | |||
Sold | |||||
Equity Index Contracts | |||||
40 U.S. Treasury 20-Year Bond Contracts | Sept. 2007 | $ 4,310,000 | $ (68,910) |
The face value of futures sold as a percentage of net assets - 1.4% |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $68,205. |
(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. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 30.8% |
Escrowed/Pre-Refunded | 14.6% |
Transportation | 13.0% |
Education | 12.7% |
Health Care | 11.7% |
Water & Sewer | 9.9% |
Electric Utilities | 8.7% |
Others* (individually less than 5%) | (1.4)% |
100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Pennsylvania Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
June 30, 2007 (Unaudited) | ||
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $306,929,221) | $ 310,288,367 | |
Cash | 1,816,285 | |
Receivable for investments sold | 152,332 | |
Receivable for fund shares sold | 828,226 | |
Interest receivable | 3,868,877 | |
Prepaid expenses | 697 | |
Other receivables | 18,184 | |
Total assets | 316,972,968 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 16,972,291 | |
Payable for fund shares redeemed | 349,995 | |
Distributions payable | 318,653 | |
Accrued management fee | 91,535 | |
Payable for daily variation on futures contracts | 38,750 | |
Other affiliated payables | 79,132 | |
Other payables and accrued expenses | 25,293 | |
Total liabilities | 17,875,649 | |
Net Assets | $ 299,097,319 | |
Net Assets consist of: | ||
Paid in capital | $ 295,377,362 | |
Undistributed net investment income | 24,973 | |
Accumulated undistributed net realized gain (loss) on investments | 404,748 | |
Net unrealized appreciation (depreciation) on investments | 3,290,236 | |
Net Assets, for 28,273,161 shares outstanding | $ 299,097,319 | |
Net Asset Value, offering price and redemption price per share ($299,097,319 ÷ 28,273,161 shares) | $ 10.58 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended June 30, 2007 (Unaudited) | ||
Investment Income | ||
Interest | $ 6,701,394 | |
Expenses | ||
Management fee | $ 557,629 | |
Transfer agent fees | 117,062 | |
Accounting fees and expenses | 39,360 | |
Custodian fees and expenses | 2,269 | |
Independent trustees' compensation | 488 | |
Registration fees | 16,084 | |
Audit | 24,939 | |
Legal | 558 | |
Miscellaneous | 1,668 | |
Total expenses before reductions | 760,057 | |
Expense reductions | (49,513) | 710,544 |
Net investment income | 5,990,850 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 937,223 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (6,183,024) | |
Futures contracts | (68,910) | |
Total change in net unrealized appreciation (depreciation) | (6,251,934) | |
Net gain (loss) | (5,314,711) | |
Net increase (decrease) in net assets resulting from operations | $ 676,139 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Pennsylvania Municipal Income Fund
Financial Statements - continued
Statement of Changes in Net Assets
Six months ended June 30, 2007 | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 5,990,850 | $ 12,342,025 |
Net realized gain (loss) | 937,223 | 1,278,730 |
Change in net unrealized appreciation (depreciation) | (6,251,934) | (1,344,663) |
Net increase (decrease) in net assets resulting | 676,139 | 12,276,092 |
Distributions to shareholders from net investment income | (5,982,151) | (12,336,853) |
Distributions to shareholders from net realized gain | (564,246) | (310,486) |
Total distributions | (6,546,397) | (12,647,339) |
Share transactions | 25,152,272 | 37,832,845 |
Reinvestment of distributions | 4,505,475 | 8,726,545 |
Cost of shares redeemed | (30,365,692) | (47,247,313) |
Net increase (decrease) in net assets resulting from share transactions | (707,945) | (687,923) |
Redemption fees | 2,568 | 142 |
Total increase (decrease) in net assets | (6,575,635) | (1,059,028) |
Net Assets | ||
Beginning of period | 305,672,954 | 306,731,982 |
End of period (including undistributed net investment income of $24,973 and undistributed net investment income of $16,649, respectively) | $ 299,097,319 | $ 305,672,954 |
Other Information Shares | ||
Sold | 2,346,521 | 3,522,178 |
Issued in reinvestment of distributions | 420,936 | 811,737 |
Redeemed | (2,837,250) | (4,399,396) |
Net increase (decrease) | (69,793) | (65,481) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended | Years ended December 31, | |||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 | 2002 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 10.78 | $ 10.80 | $ 11.02 | $ 11.06 | $ 11.07 | $ 10.64 |
Income from Investment Operations | ||||||
Net investment income D | .211 | .433 | .440 | .454 | .463 | .482 |
Net realized and unrealized gain (loss) | (.180) | (.009) | (.148) | .006 | .091 | .471 |
Total from investment operations | .031 | .424 | .292 | .460 | .554 | .953 |
Distributions from net investment income | (.211) | (.433) | (.439) | (.452) | (.462) | (.482) |
Distributions from net realized gain | (.020) | (.011) | (.073) | (.048) | (.102) | (.041) |
Total distributions | (.231) | (.444) | (.512) | (.500) | (.564) | (.523) |
Redemption fees added to paid in capitalD,F | - | - | - | - | - | - |
Net asset value, end of period | $ 10.58 | $ 10.78 | $ 10.80 | $ 11.02 | $ 11.06 | $ 11.07 |
Total Return B, C | .28% | 4.02% | 2.70% | 4.28% | 5.11% | 9.14% |
Ratios to Average Net Assets E | ||||||
Expenses before reductions | .50% A | .50% | .50% | .50% | .51% | .51% |
Expenses net of fee waivers, if any | .50% A | .50% | .50% | .50% | .51% | .51% |
Expenses net of all reductions | .47% A | .42% | .45% | .49% | .50% | .49% |
Net investment | 3.97% A | 4.03% | 4.02% | 4.14% | 4.18% | 4.42% |
Supplemental Data | ||||||
Net assets, | $ 299,097 | $ 305,673 | $ 306,732 | $ 297,621 | $ 292,019 | $ 300,026 |
Portfolio turnover rate | 21% A | 19% | 26% | 14% | 18% | 9% |
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 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.
Semiannual Report
Fidelity Pennsylvania Municipal Money Market Fund
Investment Changes
Maturity Diversification | |||
Days | % of fund's investments 6/30/07 | % of fund's investments 12/31/06 | % of fund's investments 6/30/06 |
0 - 30 | 93.7 | 93.0 | 95.5 |
31 - 90 | 0.4 | 1.0 | 0.8 |
91 - 180 | 0.8 | 2.6 | 0.0 |
181 - 397 | 5.1 | 3.4 | 3.7 |
Weighted Average Maturity | |||
6/30/07 | 12/31/06 | 6/30/06 | |
Fidelity Pennsylvania Municipal Money Market Fund | 25 Days | 19 Days | 19 Days |
Pennsylvania Tax-Free Money Market Funds Average* | 26 Days | 25 Days | 18 Days |
Asset Allocation (% of fund's net assets) | |||||||
As of June 30, 2007 | As of December 31, 2006 | ||||||
![]() | Variable Rate | ![]() | Variable Rate | ||||
![]() | Commercial Paper (including CP Mode) 0.4% | ![]() | Commercial Paper (including CP Mode) 0.5% | ||||
![]() | Tender Bonds 2.2% | ![]() | Tender Bonds 1.9% | ||||
![]() | Municipal Notes 2.3% | ![]() | Municipal Notes 3.2% | ||||
![]() | Fidelity Municipal | ![]() | Fidelity Municipal | ||||
![]() | Other Investments 2.3% | ![]() | Other Investments 1.2% | ||||
![]() | Net Other Assets 2.1% | ![]() | Net Other Assets 2.5% |
*Source: iMoneyNet, Inc.
Semiannual Report
Fidelity Pennsylvania Municipal Money Market Fund
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Securities - 97.9% | |||
Principal Amount | Value | ||
Pennsylvania - 95.6% | |||
Adams County Indl. Dev. Auth. Rev. (Gettysburg Foundation Proj.) Series A, 3.78%, LOC Manufacturers & Traders Trust Co., VRDN (c) | $ 5,300,000 | $ 5,300,000 | |
Allegheny County Arpt. Auth. Arpt. Rev. Participating VRDN: | |||
Series Clipper 06 13, 3.8% (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(c)(f)(h) | 10,050,000 | 10,050,000 | |
Series PT 3965, 3.81% (Liquidity Facility Dexia Cr. Local de France) (c)(f)(h) | 4,000,000 | 4,000,000 | |
Allegheny County Arpt. Auth. Rev. Participating VRDN: | |||
Series PT 3891, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f)(h) | 5,700,000 | 5,700,000 | |
Series Putters 3743, 3.81% (Liquidity Facility Dexia Cr. Local de France) (c)(f)(h) | 3,195,000 | 3,195,000 | |
Allegheny County Arpt. Rev. Participating VRDN Series PA 567, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f)(h) | 1,510,000 | 1,510,000 | |
Allegheny County Hosp. Dev. Auth. Rev.: | |||
Bonds (South Hills Health Sys. Proj.) Series 2000 A, 3.7%, tender 6/1/08, LOC PNC Bank NA, Pittsburgh (c) | 6,200,000 | 6,200,000 | |
(Childrens Institute Pittsburgh Proj.) Series A, 3.74%, LOC Citizens Bank of Pennsylvania, VRDN (c) | 7,350,000 | 7,350,000 | |
Allegheny County Indl. Dev. Auth. Econ. Dev. Rev. (Glassport Realty Ltd. Proj.) 4%, LOC Huntington Nat'l. Bank, Columbus, VRDN (c)(f) | 1,480,000 | 1,480,000 | |
Allegheny County Indl. Dev. Auth. Rev.: | |||
Bonds (Animal Friends, Inc. Proj.) 3.85%, tender 7/2/07, LOC PNC Bank NA, Pittsburgh (c) | 2,375,000 | 2,375,000 | |
(Doren, Inc. Proj.) Series 1997 C, 3.9%, LOC Nat'l. City Bank Cleveland, VRDN (c)(f) | 1,100,000 | 1,100,000 | |
(R.I. Lampus Co. Proj.) Series 1997 A, 3.85%, LOC Nat'l. City Bank Cleveland, VRDN (c)(f) | 2,030,000 | 2,030,000 | |
(Union Elec. Steel Co. Proj.) Series 1996 A, 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 3,120,000 | 3,120,000 | |
Berks County Indl. Dev. Auth. Rev. (Fleetwood Industries Bus. Trust Proj.) 3.83%, LOC First Tennessee Bank NA, Memphis, VRDN (c)(f) | 2,275,000 | 2,275,000 | |
Blair County Indl. Dev. Auth. Rev. (Homewood at Martinsburg Proj.) 3.78%, LOC Manufacturers & Traders Trust Co., VRDN (c) | 3,200,000 | 3,200,000 | |
Bucks County Indl. Dev. Auth. Rev.: | |||
(Double H Plastics, Inc. Proj.) Series 1993, 3.84%, LOC Wachovia Bank NA, VRDN (c)(f) | 1,400,000 | 1,400,000 | |
(Snowball Real Estate LP Proj.) 3.89%, LOC Wachovia Bank NA, VRDN (c)(f) | 2,105,000 | 2,105,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Bucks County Indl. Dev. Auth. Wtr. Facilities Rev. Participating VRDN Series PA 1139, 3.79% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f)(h) | $ 6,000,000 | $ 6,000,000 | |
Butler County Indl. Dev. Auth. Rev. (Armco, Inc. Proj.) Series 1996 A, 3.8%, LOC Fifth Third Bank, Cincinnati, VRDN (c)(f) | 1,500,000 | 1,500,000 | |
Cambria County Ind. Dev. Auth. (Cambria Cogen Co. Proj.): | |||
Series 1998 A1, 3.98%, LOC Bayerische Hypo-und Vereinsbank AG, VRDN (c)(f) | 11,725,000 | 11,725,000 | |
Series 1998 A2, 3.86%, LOC Bayerische Hypo-und Vereinsbank AG, VRDN (c)(f) | 3,300,000 | 3,300,000 | |
Central Bucks School District Series 2000 A, 3.78% (FGIC Insured), VRDN (c) | 3,725,000 | 3,725,000 | |
Chester County Inter Unit 3.78%, LOC PNC Bank NA, Pittsburgh, VRDN (c) | 1,630,000 | 1,630,000 | |
Crawford County Indl. Dev. Auth. Rev. (Greenleaf Corp. Proj.) 3.85%, LOC Nat'l. City Bank Cleveland, VRDN (c)(f) | 5,900,000 | 5,900,000 | |
Cumberland County Muni. Auth. College Rev. Bonds (Dickinson College Proj.) Series 2000 B, 3.63%, tender 11/1/07 (AMBAC Insured) (c) | 5,405,000 | 5,405,000 | |
Delaware County Indl. Dev. Auth. Rev. Participating VRDN Series Merlots 06 F2, 3.79% (Liquidity Facility Bank of New York, New York) (c)(h) | 5,400,000 | 5,400,000 | |
Geisinger Auth. Health Sys. Rev. Participating VRDN Series ROC II R 11013, 3.79% (Liquidity Facility Citibank NA) (c)(h) | 4,375,000 | 4,375,000 | |
Gen. Auth. of South Central (Lutheran Social Svc. Proj.) 3.78%, LOC Manufacturers & Traders Trust Co., VRDN (c) | 4,475,000 | 4,475,000 | |
Lawrence County Indl. Dev. Auth. Indl. Dev. Rev. (Atlantic States Materials Proj.) Series 1999, 3.84%, LOC Wachovia Bank NA, VRDN (c)(f) | 1,000,000 | 1,000,000 | |
Lehigh County Gen. Purp. Auth. Participating VRDN Series PT 3909, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(h) | 5,900,000 | 5,900,000 | |
Lehigh Gen. Oblig. Participating VRDN Series MT 385, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(h) | 5,700,000 | 5,700,000 | |
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. Participating VRDN Series MS 1170X, 3.82% (Liquidity Facility Morgan Stanley) (c)(f)(h) | 2,000,000 | 2,000,000 | |
Lycoming County Indl. Dev. Auth. (FXD-Brodart Co. Proj.): | |||
Series A, 3.88%, LOC Manufacturers & Traders Trust Co., VRDN (c)(f) | 1,905,000 | 1,905,000 | |
Series C, 3.88%, LOC Manufacturers & Traders Trust Co., VRDN (c)(f) | 1,000,000 | 1,000,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Northampton County Indl. Dev. Auth. Rev.: | |||
Bonds (American Wtr. Cap. Corp. Proj.) Series 1991, 3.92% tender 9/4/07, CP mode (f) | $ 2,500,000 | $ 2,500,000 | |
(Binney & Smith, Inc. Proj.) Series 1997 A, 3.84%, LOC JPMorgan Chase Bank, VRDN (c)(f) | 2,350,000 | 2,350,000 | |
Northampton Indl. Dev. Auth. Rev. (Ultra-Poly Corp./Portland Ind. Park Proj.) 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 2,200,000 | 2,200,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev.: | |||
(Amtrak Proj.) Series B, 3.81%, LOC JPMorgan Chase Bank, VRDN (c)(f) | 27,910,000 | 27,910,000 | |
(FirstEnergy Corp. Proj.) Series A, 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 13,000,000 | 13,000,000 | |
(Merck & Co. Proj.) Series 2000, 3.8%, VRDN (c)(f) | 11,000,000 | 11,000,000 | |
(Shippingport Proj.) Series A, 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 6,100,000 | 6,100,000 | |
(York Wtr. Co. Proj.) Series B, 3.8% (XL Cap. Assurance, Inc. Insured), VRDN (c)(f) | 10,275,000 | 10,275,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Indl. Dev. Rev.: | |||
(AMC Delancey Trad Hrshy Lp Proj.) 3.79%, LOC Citizens Bank of Pennsylvania, VRDN (c)(f) | 6,000,000 | 6,000,000 | |
(Westrum Hanover, LP Proj.) 3.79%, LOC Fed. Home Ln. Bank Pittsburg, VRDN (c)(f) | 7,400,000 | 7,400,000 | |
(Westrum Harleysville II, LP Proj.) 3.79%, LOC Fed. Home Ln. Bank Pittsburg, VRDN (c)(f) | 11,535,000 | 11,535,000 | |
Series 1999 C4, 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 700,000 | 700,000 | |
Series 2002 B6, 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 800,000 | 800,000 | |
Series 2004 D2, 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 2,100,000 | 2,100,000 | |
Series 2004 D6, 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 2,500,000 | 2,500,000 | |
Series B3, 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 1,100,000 | 1,100,000 | |
Series B5, 3.8%, LOC PNC Bank NA, Pittsburgh, VRDN (c)(f) | 900,000 | 900,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4%, VRDN (c)(f) | 4,200,000 | 4,200,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Wastewtr. Treatment Rev. (Sunoco, Inc. (R&M) Proj.): | |||
Series A, 3.955%, VRDN (c)(f) | 1,600,000 | 1,600,000 | |
Series B, 3.95% (Sunoco, Inc. Guaranteed), VRDN (c)(f) | 1,600,000 | 1,600,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Pennsylvania Gen. Oblig. Participating VRDN: | |||
Series EC 1064, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(h) | $ 5,040,000 | $ 5,040,000 | |
Series EC 1142, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(h) | 6,000,000 | 6,000,000 | |
Series Putters 1382, 3.79% (Liquidity Facility JPMorgan Chase Bank) (c)(h) | 3,540,000 | 3,540,000 | |
Series ROC II R 11056, 3.79% (Liquidity Facility Citibank NA) (c)(h) | 3,700,000 | 3,700,000 | |
Pennsylvania Health Sys. Rev. Catholic Health East Participating VRDN Series PA 1483, 3.8% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(h) | 5,700,000 | 5,700,000 | |
Pennsylvania Higher Ed. Assistance Agcy. Student Ln. Rev.: | |||
Series 1988 A, 3.77% (AMBAC Insured), VRDN (c)(f) | 17,500,000 | 17,500,000 | |
Series 1988 B, 3.77% (AMBAC Insured), VRDN (c)(f) | 13,700,000 | 13,700,000 | |
Series 1988 C, 3.77% (AMBAC Insured), VRDN (c)(f) | 36,900,000 | 36,900,000 | |
Series 1988 E, 3.77% (AMBAC Insured), VRDN (c)(f) | 20,100,000 | 20,100,000 | |
Series 1997 A, 3.8% (AMBAC Insured), VRDN (c)(f) | 2,900,000 | 2,900,000 | |
Series 1999 A, 3.79% (AMBAC Insured), VRDN (c)(f) | 10,900,000 | 10,900,000 | |
Series 2000 A, 3.8% (AMBAC Insured), VRDN (c)(f) | 4,000,000 | 4,000,000 | |
Series 2001 B, 3.8% (FSA Insured), VRDN (c)(f) | 800,000 | 800,000 | |
Series 2002 B, 3.8% (FSA Insured), VRDN (c)(f) | 2,800,000 | 2,800,000 | |
Series A: | |||
3.79% (AMBAC Insured), VRDN (c)(f) | 5,000,000 | 5,000,000 | |
3.8% (AMBAC Insured), VRDN (c)(f) | 2,500,000 | 2,500,000 | |
3.8% (FSA Insured), VRDN (c)(f) | 20,500,000 | 20,500,000 | |
Series A1, 3.8% (AMBAC Insured), VRDN (c)(f) | 5,600,000 | 5,600,000 | |
Pennsylvania Higher Edl. Facilities Auth. (Washington & Jefferson Dev. Corp. Proj.) Series A, 3.76%, LOC Unicredito Italiano SpA, VRDN (c) | 3,500,000 | 3,500,000 | |
Pennsylvania Higher Edl. Facilities Auth. Hosp. Rev. Participating VRDN Series MT 42, 3.79% (Liquidity Facility Lloyds TSB Bank PLC) (c)(h) | 8,590,000 | 8,590,000 | |
Pennsylvania Higher Edl. Facilities Auth. Rev.: | |||
Participating VRDN Series MS 00 1412, 3.79% (Liquidity Facility Morgan Stanley) (c)(h) | 4,600,000 | 4,600,000 | |
(King's College Proj.) Series 2002 J3, 3.74%, LOC PNC Bank NA, Pittsburgh, VRDN (c) | 2,400,000 | 2,400,000 | |
Pennsylvania Hsg. Fin. Agcy. Participating VRDN: | |||
Series LB 06 K 57, 3.85% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (c)(f)(h) | 2,500,000 | 2,500,000 | |
Series LB 06 P35, 3.85% (Liquidity Facility Lehman Brothers Hldgs., Inc.) (c)(f)(h) | 2,095,000 | 2,095,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Pennsylvania Hsg. Fin. Agcy. Single Family Mortgage Rev.: | |||
Participating VRDN: | |||
Series Merlots 06 B15, 3.84% (Liquidity Facility Wachovia Bank NA) (c)(f)(h) | $ 5,215,000 | $ 5,215,000 | |
Series Merlots 07 C50, 3.84% (Liquidity Facility Bank of New York, New York) (c)(f)(h) | 6,065,000 | 6,065,000 | |
Series MT 163, 3.8% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f)(h) | 2,285,000 | 2,285,000 | |
Series PT 890, 3.8% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f)(h) | 270,000 | 270,000 | |
Series Putters 1213 B, 3.83% (Liquidity Facility JPMorgan Chase & Co.) (c)(f)(h) | 1,925,000 | 1,925,000 | |
Series Putters 152, 3.83% (Liquidity Facility JPMorgan Chase Bank) (c)(f)(h) | 6,130,000 | 6,130,000 | |
Series Putters 1593, 3.83% (Liquidity Facility JPMorgan Chase Bank) (c)(f)(h) | 3,400,000 | 3,400,000 | |
Series 2004 82B, 3.79% (Liquidity Facility Landesbank Hessen-Thuringen), VRDN (c)(f) | 12,000,000 | 12,000,000 | |
Pennsylvania Pub. School Bldg. Auth. Philadelphia School Lease Rev. Participating VRDN Series EGL 06 161, 3.8% (Liquidity Facility Citibank NA) (c)(h) | 5,300,000 | 5,300,000 | |
Pennsylvania Pub. School Bldg. Auth. School Rev. Participating VRDN Series MS 958, 3.79% (Liquidity Facility Morgan Stanley) (c)(h) | 2,129,000 | 2,129,000 | |
Pennsylvania Tpk. Commission Tpk. Rev. Series 2002 A3, 3.78% (Liquidity Facility Bayerische Landesbank Girozentrale), VRDN (c) | 9,700,000 | 9,700,000 | |
Philadelphia Arpt. Rev.: | |||
Participating VRDN: | |||
Series PT 3077, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f)(h) | 1,970,000 | 1,970,000 | |
Series SG 118, 3.81% (Liquidity Facility Societe Generale) (c)(f)(h) | 5,600,000 | 5,600,000 | |
Series 2005 C, 3.83% (MBIA Insured), VRDN (c)(f) | 11,200,000 | 11,200,000 | |
Philadelphia Auth. for Indl. Dev. Arpt. Rev. Participating VRDN: | |||
Series MT 342, 3.81% (Liquidity Facility Bayerische Landesbank (UNGTD)) (c)(f)(h) | 5,700,000 | 5,700,000 | |
Series PA 882, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(f)(h) | 2,200,000 | 2,200,000 | |
Series Putters 217, 3.83% (Liquidity Facility JPMorgan Chase Bank) (c)(f)(h) | 7,715,000 | 7,715,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Philadelphia Auth. for Indl. Dev. Rev.: | |||
Participating VRDN Series MT 340, 3.81% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(h) | $ 4,905,000 | $ 4,905,000 | |
(New Courtland Elder Services Proj.) 3.78%, LOC PNC Bank NA, Pittsburgh, VRDN (c) | 2,200,000 | 2,200,000 | |
Philadelphia Gas Works Rev.: | |||
Bonds: | |||
(1975 Gen. Ordinance Proj.) 17th Series, 5% 7/1/07 (FSA Insured) | 4,000,000 | 4,000,000 | |
First Series B, 5% 7/1/28 (Pre-Refunded to 7/1/08 @ 100) (g) | 5,500,000 | 5,567,222 | |
Participating VRDN Series PT 1144, 3.78% (Liquidity Facility Merrill Lynch & Co., Inc.) (c)(h) | 5,000,000 | 5,000,000 | |
Philadelphia Muni. Auth. Rev. Bonds Series A, 5% 5/15/08 (FSA Insured) | 5,000,000 | 5,055,482 | |
Philadelphia Redev. Auth. Rev. Participating VRDN Series DB 134, 3.79% (Liquidity Facility Deutsche Bank AG) (c)(f)(h) | 3,370,000 | 3,370,000 | |
Philadelphia School District TRAN Series A, 4.5% 6/27/08, LOC Bank of America NA (b) | 9,000,000 | 9,066,240 | |
Philadelphia Wtr. & Wastewtr. Rev. Participating VRDN Series EGL 7050050 Class A, 3.8% (Liquidity Facility Citibank NA) (c)(h) | 2,300,000 | 2,300,000 | |
Pittsburgh Urban Redev. Auth. Single Family Mortgage Rev. Participating VRDN Series PT 996, 3.8% (Liquidity Facility Landesbank Hessen-Thuringen) (c)(f)(h) | 5,685,000 | 5,685,000 | |
Sayre Health Care Facilities Auth. Rev. Participating VRDN Series ROC II R 11029 CE, 3.79% (Liquidity Facility Citibank NA) (c)(h) | 9,000,000 | 9,000,000 | |
Schuylkill County Indl. Dev. Auth. Resource Recovery Rev. (Northeastern Pwr. Co. Proj.) Series 1997 B, 3.94%, LOC Dexia Cr. Local de France, VRDN (c)(f) | 7,080,000 | 7,080,000 | |
Southcentral Pennsylvania Gen. Auth. Rev.: | |||
Participating VRDN Series ROC II R 604, 3.8% (Liquidity Facility Citibank NA) (c)(h) | 2,355,000 | 2,355,000 | |
(Hanover Lutheran Village Proj.) 3.78%, LOC Manufacturers & Traders Trust Co., VRDN (c) | 3,615,000 | 3,615,000 | |
Swarthmore Borough Auth. College Rev. Participating VRDN Series ROC II R 9068, 3.79% (Liquidity Facility Citigroup, Inc.) (c)(h) | 4,995,000 | 4,995,000 | |
Municipal Securities - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Temple Univ. of the Commonwealth Sys. of Higher Ed. BAN 4.25% 4/24/08 | $ 5,900,000 | $ 5,929,191 | |
West Cornwall Township Muni. Auth. (Lebanon Valley Brethren Home Proj.) 3.76%, LOC PNC Bank NA, Pittsburgh, VRDN (c) | 4,000,000 | 4,000,000 | |
612,892,135 | |||
Puerto Rico - 1.3% | |||
Puerto Rico Commonwealth Aqueduct & Swr. Auth. Participating VRDN Series ROC II R 10001 CE, 3.79% (Liquidity Facility Citigroup, Inc.) (c)(h) | 8,500,000 | 8,500,000 | |
Other - 1.0% | |||
Shares | |||
Fidelity Municipal Cash Central Fund, 3.81% (d)(e) | 6,498,300 | 6,498,300 | |
TOTAL INVESTMENT PORTFOLIO - 97.9% (Cost $627,890,435) | 627,890,435 | ||
NET OTHER ASSETS - 2.1% | 13,142,772 | ||
NET ASSETS - 100% | $ 641,033,207 |
Security Type Abbreviations |
BAN - BOND ANTICIPATION NOTE |
CP - COMMERCIAL PAPER |
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 $10,050,000 or 1.6% of net assets. |
(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) 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. |
(f) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(g) Security collateralized by an amount sufficient to pay interest and principal. |
(h) 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 | $ 26,299 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
June 30, 2007 (Unaudited) | ||
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $621,392,135) | $ 621,392,135 | |
Fidelity Central Funds (cost $6,498,300) | 6,498,300 | |
Total Investments (cost $627,890,435) | $ 627,890,435 | |
Cash | 13,651,562 | |
Receivable for investments sold | 6,484,023 | |
Receivable for fund shares sold | 7,563,214 | |
Interest receivable | 3,793,255 | |
Distributions receivable from Fidelity Central Funds | 10,940 | |
Other receivables | 162,355 | |
Total assets | 659,555,784 | |
Liabilities | ||
Payable for investments purchased | $ 2,375,251 | |
Delayed delivery | 9,066,240 | |
Payable for fund shares redeemed | 6,787,553 | |
Distributions payable | 28,997 | |
Accrued management fee | 263,797 | |
Other affiliated payables | 739 | |
Total liabilities | 18,522,577 | |
Net Assets | $ 641,033,207 | |
Net Assets consist of: | ||
Paid in capital | $ 640,950,834 | |
Undistributed net investment income | 78,542 | |
Accumulated undistributed net realized gain (loss) on investments | 3,831 | |
Net Assets, for 640,917,844 shares outstanding | $ 641,033,207 | |
Net Asset Value, offering price and redemption price per share ($641,033,207 ÷ 640,917,844 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements - continued
Statement of Operations
Six months ended June 30, 2007 (Unaudited) | ||
Investment Income | ||
Interest | $ 10,706,240 | |
Income from Fidelity Central Funds | 26,299 | |
Total income | 10,732,539 | |
Expenses | ||
Management fee | $ 1,482,411 | |
Independent trustees' compensation | 899 | |
Total expenses before reductions | 1,483,310 | |
Expense reductions | (327,121) | 1,156,189 |
Net investment income | 9,576,350 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (2,739) | |
Net increase in net assets resulting from operations | $ 9,573,611 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
Six months ended June 30, 2007 | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 9,576,350 | $ 13,880,659 |
Net realized gain (loss) | (2,739) | 13,270 |
Net increase in net assets resulting | 9,573,611 | 13,893,929 |
Distributions to shareholders from net investment income | (9,575,970) | (13,880,912) |
Share transactions at net asset value of $1.00 per share | 1,067,141,658 | 1,357,859,696 |
Reinvestment of distributions | 9,434,635 | 13,678,174 |
Cost of shares redeemed | (974,777,322) | (1,258,701,495) |
Net increase (decrease) in net assets and shares resulting from share transactions | 101,798,971 | 112,836,375 |
Total increase (decrease) in net assets | 101,796,612 | 112,849,392 |
Net Assets | ||
Beginning of period | 539,236,595 | 426,387,203 |
End of period (including undistributed net investment income of $78,542 and undistributed net investment income of $78,162, respectively) | $ 641,033,207 | $ 539,236,595 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights
Six months ended | Years ended December 31, | |||||
(Unaudited) | 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 | $ 1.00 |
Income from Investment Operations | ||||||
Net investment | .016 | .030 | .020 | .008 | .006 | .011 |
Distributions from net investment income | (.016) | (.030) | (.020) | (.008) | (.006) | (.011) |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return B, C | 1.62% | 3.05% | 2.02% | .81% | .65% | 1.09% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .50%A | .50% | .50% | .50% | .50% | .50% |
Expenses net of all reductions | .39%A | .38% | .41% | .48% | .49% | .46% |
Net investment | 3.25%A | 3.02% | 2.02% | .80% | .66% | 1.09% |
Supplemental Data | ||||||
Net assets, | $ 641,033 | $ 539,237 | $ 426,387 | $ 331,836 | $ 294,312 | $ 278,322 |
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 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.
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.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2007 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. 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 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.
3. Significant Accounting Policies.
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 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation - continued
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.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day for the Income Fund and trades executed through the end of the current business day for the Money Market Fund. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds 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 Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
Semiannual Report
3. 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, Certain Funds claimed 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.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
Cost for Federal | Unrealized | Unrealized | Net Unrealized | |
Fidelity Pennsylvania Municipal Income Fund | $ 306,839,885 | $ 5,846,185 | $ (2,397,703) | $ 3,448,482 |
Fidelity Pennsylvania Municipal Money Market Fund | 627,890,435 | - | - | - |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
New Accounting Pronouncement. 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.
4. 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.
Semiannual Report
4. Operating Policies - continued
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. 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.
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $47,015,440 and $32,176,535, respectively.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. 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 annualized 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 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 annualized rates expressed as a percentage of average net assets:
Fidelity Pennsylvania Municipal Income Fund | .08% | | |
Semiannual Report
7. 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 | $ 377 |
During the period, there were no borrowings on this line of credit.
8. 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 Agent | |
Fidelity Pennsylvania Municipal Income Fund | $ 2,269 | $ 47,244 |
In addition, through an arrangement with the Money Market Fund's custodian and transfer agent, $327,121 of credits realized as a result of uninvested cash balances were used to reduce the Fund's management fee.
9. 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.
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Pennsylvania Municipal Income Fund / Fidelity Pennsylvania Municipal Money Market Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for each fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of the management fee and total expenses of each fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with each fund; (iv) the extent to which economies of scale would be realized as each fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to each fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for each fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.
Semiannual Report
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the funds' portfolio managers and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for each fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, each fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of a fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether each fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured against (i) a broad-based securities market index (bond fund only , as money market funds are typically not compared against a market index), and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. For each fund, the following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, the fund's cumulative total returns, the cumulative total returns of a broad-based securities market index ("benchmark") (bond fund only), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of the fund.
Semiannual Report
Fidelity Pennsylvania Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the third quartile for the one- and three-year periods and the second quartile for the five-year period. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board discussed with FMR actions to be taken by FMR to improve the fund's more recent disappointing performance. The Board will continue to closely monitor the performance of the fund in the coming year.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Pennsylvania Municipal Money Market Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of the fund was in the second quartile for all the periods shown.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 19% would mean that 81% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board. For a more meaningful comparison of management fees, Fidelity Pennsylvania Municipal Money Market Fund is compared on the basis of a hypothetical "net management fee," which is derived by subtracting payments made by FMR for non-management expenses (including transfer agent fees, pricing and bookkeeping fees, and custody fees) from the fund's all-inclusive fee. In this regard, the Board realizes that net management fees can vary from year to year because of differences in non-management expenses.
Semiannual Report
Fidelity Pennsylvania Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Pennsylvania Municipal Money Market Fund
The Board noted that the fund's hypothetical net management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.
Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of Fidelity Pennsylvania Municipal Income Fund's total expenses, the Board considered the fund's management fee as well as other fund expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses.
In its review of Fidelity Pennsylvania Municipal Money Market Fund's total expenses, the Board considered the fund's hypothetical net management fee as well as the fund's all-inclusive fee. The Board also considered other expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees, paid by FMR under the all-inclusive arrangement. The Board also noted the effects of any waivers and reimbursements on fees and expenses.
As part of its review, the Board also considered current and historical total expenses of each fund compared to competitive fund median expenses. Each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that each fund's total expenses ranked below its competitive median for 2006.
Semiannual Report
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that each fund's total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for each fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the funds' business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and determined that the amount of profit is a fair entrepreneurial profit for the management of each fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including (Fidelity Pennsylvania Municipal Income Fund only) reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board recognized that Fidelity Pennsylvania Municipal Income Fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Semiannual 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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Sub-Adviser
Fidelity Research & Analysis Company
Fidelity Investments Money
Management, 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
PFR-USAN-0807
1.787788.104
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
Fidelity®
Short-Intermediate
Municipal Income Fund
Semiannual Report
June 30, 2007
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
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. | |
Board Approval of Investment Advisory Contracts and Management Fees | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://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 holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks are currently on pace to register their fifth-straight year of positive returns, although gains could be trimmed if the U.S. economy continues to slow. 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
Semiannual 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 (January 1, 2007 to June 30, 2007).
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Semiannual Report
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,007.70 | $ 3.48** |
HypotheticalA | $ 1,000.00 | $ 1,021.32 | $ 3.51** |
Class T | |||
Actual | $ 1,000.00 | $ 1,008.40 | $ 3.78 |
HypotheticalA | $ 1,000.00 | $ 1,021.03 | $ 3.81 |
Class B | |||
Actual | $ 1,000.00 | $ 1,005.10 | $ 7.11 |
HypotheticalA | $ 1,000.00 | $ 1,017.70 | $ 7.15 |
Class C | |||
Actual | $ 1,000.00 | $ 1,004.60 | $ 7.60 |
HypotheticalA | $ 1,000.00 | $ 1,017.21 | $ 7.65 |
Short-Intermediate Municipal Income | |||
Actual | $ 1,000.00 | $ 1,009.70 | $ 2.49 |
HypotheticalA | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,008.50 | $ 2.64 |
HypotheticalA | $ 1,000.00 | $ 1,022.17 | $ 2.66 |
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 181/365 (to reflect the one-half year period).
Annualized | |
Class A | .70%** |
Class T | .76% |
Class B | 1.43% |
Class C | 1.53% |
Short-Intermediate Municipal Income | .50% |
Institutional Class | .53% |
** 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 .75% and the expenses paid in the actual and hypothetical examples above would have been $3.73 and $3.76, respectively.
Semiannual Report
Investment Changes
Top Five States as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
New York | 16.1 | 17.0 |
Texas | 11.2 | 11.3 |
Illinois | 9.0 | 9.9 |
California | 8.5 | 7.0 |
New Jersey | 6.6 | 6.2 |
Top Five Sectors as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 40.3 | 41.0 |
Escrowed/Pre-Refunded | 14.7 | 13.4 |
Special Tax | 9.1 | 9.7 |
Electric Utilities | 9.0 | 8.6 |
Health Care | 6.3 | 6.8 |
Weighted Average Maturity as of June 30, 2007 | ||
6 months ago | ||
Years | 3.6 | 3.9 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior figure reflects this change. |
Duration as of June 30, 2007 | ||
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 June 30, 2007 | As of December 31, 2006 | ||||||
![]() | AAA 51.8% | ![]() | AAA 54.6% | ||||
![]() | AA,A 37.8% | ![]() | AA,A 35.9% | ||||
![]() | BBB 6.1% | ![]() | BBB 6.8% | ||||
![]() | BB and Below 0.4% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 3.6% | ![]() | Not Rated 1.7% | ||||
![]() | 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. |
Semiannual Report
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 97.7% | ||||
Principal Amount (000s) | Value (000s) | |||
Alabama - 1.9% | ||||
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09 | $ 1,100 | $ 1,112 | ||
Daphne Spl. Care Facilities Fing. Auth. Rev. Series A, 0% 8/15/28 (Pre-Refunded to 8/15/08 @ 100) (g) | 10,000 | 9,575 | ||
Health Care Auth. for Baptist Health Series 2006 D: | ||||
5% 11/15/08 | 1,475 | 1,489 | ||
5% 11/15/11 | 1,000 | 1,027 | ||
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev.: | ||||
5.25% 10/1/08 (MBIA Insured) (f) | 2,900 | 2,947 | ||
5.75% 10/1/09 (MBIA Insured) (f) | 4,000 | 4,133 | ||
Jefferson County Swr. Rev.: | ||||
Series A, 5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (g) | 3,900 | 4,129 | ||
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (g) | 2,070 | 2,158 | ||
Pell City Spl. Care Facilities Rev. (Noland Health Services, Inc. Proj.) Series A: | ||||
5% 12/1/08 | 400 | 405 | ||
5% 12/1/09 | 500 | 507 | ||
5% 12/1/10 | 855 | 872 | ||
5% 12/1/12 | 750 | 767 | ||
29,121 | ||||
Alaska - 0.6% | ||||
Alaska Student Ln. Corp. Student Ln. Rev. Series A, 5.85% 7/1/13 (AMBAC Insured) (f) | 3,285 | 3,439 | ||
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 (Pre-Refunded to 12/1/10 @ 100) (g) | 2,500 | 2,647 | ||
North Slope Borough Gen. Oblig. Series B, 0% 6/30/08 (MBIA Insured) | 4,240 | 4,083 | ||
10,169 | ||||
Arizona - 1.3% | ||||
Arizona Ctfs. of Prtn. Series B, 5.5% 9/1/10 (FSA Insured) | 9,025 | 9,433 | ||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured) | 1,115 | 1,141 | ||
Maricopa County Unified School District #48 Scottsdale 7.4% 7/1/10 | 3,750 | 4,109 | ||
Nogales Rev. Oblig. (Wastewtr. Systems Proj.) Series 06A, 3.75%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | 3,000 | 2,958 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (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 | $ 663 | ||
Tucson Wtr. Rev. Series A, 5% 7/1/11 (FGIC Insured) | 1,500 | 1,552 | ||
19,856 | ||||
California - 8.5% | ||||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A, 5.25% 5/1/12 (MBIA Insured) | 6,000 | 6,334 | ||
California Econ. Recovery Series A: | ||||
5.25% 1/1/11 | 6,500 | 6,781 | ||
5.25% 7/1/13 | 2,400 | 2,556 | ||
5.25% 7/1/13 (MBIA Insured) | 2,900 | 3,096 | ||
California Gen. Oblig.: | ||||
5% 2/1/09 | 1,640 | 1,672 | ||
5% 2/1/10 | 2,000 | 2,055 | ||
5% 2/1/11 | 4,000 | 4,137 | ||
5% 2/1/11 | 2,525 | 2,612 | ||
5% 10/1/11 | 1,650 | 1,716 | ||
5% 2/1/12 | 1,650 | 1,716 | ||
5% 3/1/12 | 15,000 | 15,611 | ||
5% 9/1/12 | 1,700 | 1,776 | ||
5% 10/1/12 | 12,600 | 13,171 | ||
5.125% 9/1/12 | 1,000 | 1,033 | ||
5.25% 9/1/10 | 18,550 | 19,308 | ||
5.25% 2/1/11 | 6,775 | 7,063 | ||
5.5% 3/1/11 (FGIC Insured) | 3,210 | 3,388 | ||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,525 | 3,714 | ||
5.75% 10/1/08 | 1,085 | 1,112 | ||
6.4% 9/1/08 | 3,075 | 3,169 | ||
6.5% 9/1/10 | 1,760 | 1,894 | ||
California Health Facilities Fing. Auth. Rev. (Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/10 | 1,000 | 1,030 | ||
California State Univ. Rev. 5% 11/1/13 (FSA Insured) (b) | 1,335 | 1,410 | ||
California Statewide Communities Dev. Auth. Rev. (Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c) | 1,400 | 1,376 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev. Series A1, 5% 6/1/12 | 2,570 | 2,639 | ||
Northern California Gas Auth. #1 Gas Proj. Rev. Series A, 5% 7/1/11 | 2,200 | 2,280 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Regents of the Univ. of California Rev.: | ||||
(UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (i) | $ 8,607 | $ 8,653 | ||
Series K: | ||||
5% 5/15/09 | 1,000 | 1,022 | ||
5% 5/15/10 | 4,955 | 5,115 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured) | 3,600 | 2,989 | ||
Western Placer Unified School District Ctfs. of Prtn. (School Facilities Proj.) Series B, 3.625%, tender 12/1/09 (FSA Insured) (c) | 3,170 | 3,145 | ||
133,573 | ||||
Colorado - 0.6% | ||||
Colorado Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.): | ||||
Series E, 5% 11/15/11 | 2,230 | 2,292 | ||
Series F, 5% 11/15/12 | 1,225 | 1,264 | ||
(Volunteers of America Care Proj.) Series A, 5% 7/1/10 | 615 | 617 | ||
Denver City & County Arpt. Rev. Series E, 5% 11/15/08 (XL Cap. Assurance, Inc. Insured) (f) | 5,000 | 5,071 | ||
9,244 | ||||
Connecticut - 1.9% | ||||
Connecticut Gen. Oblig.: | ||||
Series 2001 D, 5.125% 11/15/18 (Pre-Refunded to 11/15/11 @ 100) (g) | 5,000 | 5,233 | ||
Series F, 5% 12/1/11 | 23,100 | 24,062 | ||
29,295 | ||||
District Of Columbia - 0.7% | ||||
District of Columbia Ctfs. of Prtn. 5.25% 1/1/08 (AMBAC Insured) | 935 | 942 | ||
District of Columbia Gen. Oblig.: | ||||
Series A, 5.25% 6/1/09 (FSA Insured) | 1,000 | 1,025 | ||
Series B, 0% 6/1/12 (MBIA Insured) | 3,600 | 2,909 | ||
Metropolitan Washington DC Arpts. Auth. Sys. Rev. Series B, 5.5% 10/1/08 (FGIC Insured) (f) | 6,460 | 6,548 | ||
11,424 | ||||
Florida - 5.4% | ||||
Brevard County School Board Ctfs. of Prtn. Series A, 5.5% 7/1/09 (AMBAC Insured) | 2,775 | 2,859 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Florida - continued | ||||
Citizens Property Ins. Corp. Series 2007 A, 5% 3/1/11 (MBIA Insured) | $ 4,025 | $ 4,159 | ||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys. - Sunbelt Proj.): | ||||
Series A, 5% 11/15/10 | 1,000 | 1,024 | ||
Series B, 5% 11/15/08 | 800 | 812 | ||
Series G: | ||||
5% 11/15/08 | 420 | 426 | ||
5% 11/15/09 | 435 | 443 | ||
5% 11/15/10 | 400 | 410 | ||
5% 11/15/11 | 700 | 720 | ||
Series I, 5%, tender 11/16/09 (c) | 4,700 | 4,785 | ||
3.95%, tender 9/1/12 (c) | 7,550 | 7,405 | ||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.): | ||||
4%, tender 8/1/07 (c) | 11,000 | 10,996 | ||
4.25%, tender 8/1/07 (c)(f) | 6,000 | 5,999 | ||
Lakeland Hosp. Sys. Rev. (Reg'l. Health Systems Proj.) 5% 11/15/11 | 2,545 | 2,614 | ||
Lee County Solid Waste Sys. Rev. 5.25% 10/1/09 (MBIA Insured) (f) | 1,000 | 1,025 | ||
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured) | 1,980 | 2,119 | ||
Miami-Dade County School Board Ctfs. of Prtn. Series B, 5%, tender 5/1/11 (MBIA Insured) (c) | 1,500 | 1,547 | ||
Orange County School Board Ctfs. of Prtn. Series A, 5.375% 8/1/22 (Pre-Refunded to 8/1/07 @ 101) (g) | 3,855 | 3,898 | ||
Orlando Utils. Commission Util. Sys. Rev. 5.25% 7/1/09 | 6,000 | 6,157 | ||
Palm Beach County School Board Ctfs. of Prtn. Series A, 6% 8/1/22 (Pre-Refunded to 8/1/10 @ 101) (g) | 7,020 | 7,486 | ||
Polk County Cap. Impt. Rev.: | ||||
Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c) | 9,000 | 9,405 | ||
5.5% 12/1/11 (FGIC Insured) | 3,470 | 3,680 | ||
Seminole County School Board Ctfs. of Prtn. Series A, 4.5% 7/1/08 (MBIA Insured) | 1,250 | 1,259 | ||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001: | ||||
2.8%, tender 10/1/08, LOC SunTrust Banks, Inc. (c) | 2,000 | 1,974 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Florida - continued | ||||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001: - continued | ||||
3%, tender 10/1/09, LOC SunTrust Banks, Inc. (c) | $ 1,000 | $ 976 | ||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 5% 8/1/08 (FSA Insured) | 1,625 | 1,646 | ||
83,824 | ||||
Georgia - 1.2% | ||||
Carroll County School District 5% 4/1/11 | 8,000 | 8,289 | ||
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1992 B, 8.25% 1/1/11 (MBIA Insured) | 4,105 | 4,659 | ||
Walton County: | ||||
5% 1/1/10 (FGIC Insured) | 2,000 | 2,053 | ||
5% 1/1/11 (FGIC Insured) | 3,000 | 3,106 | ||
18,107 | ||||
Hawaii - 2.4% | ||||
Hawaii Arpt. Sys. Rev. Series 2000 B, 8% 7/1/10 (FGIC Insured) (f) | 3,850 | 4,269 | ||
Hawaii Gen. Oblig. Series CU: | ||||
5.75% 10/1/11 (MBIA Insured) | 3,040 | 3,207 | ||
5.75% 10/1/11 (Pre-Refunded to 10/1/10 @ 100) (g) | 170 | 180 | ||
Honolulu City & County Gen. Oblig. Series B, 8% 10/1/09 | 26,940 | 29,229 | ||
36,885 | ||||
Illinois - 9.0% | ||||
Chicago Board of Ed. (Chicago School Reform Proj.) 6.75% 12/1/10 (AMBAC Insured) | 4,160 | 4,530 | ||
Chicago Gen. Oblig. Series A, 5.25% 1/1/12 (FSA Insured) | 1,000 | 1,050 | ||
Chicago Midway Arpt. Rev. Series B: | ||||
5% 1/1/10 (AMBAC Insured) | 1,225 | 1,255 | ||
5% 1/1/11 (AMBAC Insured) | 3,625 | 3,740 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series A: | ||||
5% 1/1/12 (MBIA Insured) | 1,165 | 1,208 | ||
5.5% 1/1/08 (AMBAC Insured) | 5,000 | 5,043 | ||
5.5% 1/1/10 (AMBAC Insured) (f) | 2,900 | 2,999 | ||
5.5% 1/1/10 (Escrowed to Maturity) (f)(g) | 2,100 | 2,170 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Illinois - continued | ||||
Chicago Park District: | ||||
Series B, 5% 1/1/11 (AMBAC Insured) | $ 5,750 | $ 5,939 | ||
Series C, 5% 1/1/11 (AMBAC Insured) | 2,515 | 2,598 | ||
Chicago Tax Increment Rev. Series 2000 A, 0% 12/1/08 (AMBAC Insured) | 10,000 | 9,470 | ||
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 | 5,008 | ||
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 3.85%, tender 5/1/08 (c)(f) | 2,200 | 2,193 | ||
Hodgkins Tax Increment Rev. 5% 1/1/09 | 1,805 | 1,829 | ||
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 | 6,059 | ||
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) Series 2004 C, 5.5% 10/1/10 | 1,900 | 1,976 | ||
Illinois Edl. Facilities Auth. Revs.: | ||||
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c) | 12,800 | 12,585 | ||
(Field Museum of Natural History Proj.) 4.05%, tender 11/1/11 (c) | 3,250 | 3,224 | ||
(Univ. of Chicago Proj.): | ||||
Series A, 5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (g) | 2,640 | 2,785 | ||
Series B: | ||||
3.1%, tender 7/1/07 (c)(g) | 5 | 5 | ||
3.1%, tender 7/1/07 (c) | 3,995 | 3,995 | ||
4.05%, tender 7/1/09 (c) | 7,000 | 7,013 | ||
Illinois Fin. Auth. Rev. (DePaul Univ. Proj.) Series A: | ||||
5% 10/1/07 | 1,225 | 1,227 | ||
5% 10/1/08 | 1,000 | 1,012 | ||
5% 10/1/11 | 1,165 | 1,198 | ||
Illinois Gen. Oblig.: | ||||
First Series 2001, 5.25% 5/1/11 (FSA Insured) | 1,475 | 1,542 | ||
First Series: | ||||
5.375% 7/1/11 (MBIA Insured) | 6,745 | 7,094 | ||
5.5% 8/1/10 | 1,460 | 1,524 | ||
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (g) | 7,075 | 7,421 | ||
Series A, 5% 10/1/09 | 2,600 | 2,659 | ||
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (g) | 1,000 | 1,047 | ||
Illinois Health Facilities Auth. Rev. (Condell Med. Ctr. Proj.) 5% 5/15/08 | 700 | 703 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Illinois - continued | ||||
Kane & DeKalb Counties Cmnty. Unit School District #301 0% 12/1/10 (AMBAC Insured) | $ 2,000 | $ 1,741 | ||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 (FSA Insured) | 2,270 | 2,407 | ||
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) (g) | 1,600 | 1,713 | ||
Kane, McHenry, Cook & DeKalb Counties Unit School District #300, Carpentersville 5.5% 12/1/13 (Pre-Refunded to 12/1/11 @ 100) (g) | 5,000 | 5,308 | ||
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11 | 2,365 | 2,441 | ||
Madison County Cmnty. United School District #007 Series A, 5% 12/1/11 (FSA Insured) (b) | 2,965 | 3,072 | ||
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev. Series 2002, 0% 6/15/10 (Escrowed to Maturity) (g) | 5,000 | 4,441 | ||
Quincy Hosp. Rev. (Blessing Hosp. Proj.) 5% 11/15/10 | 1,285 | 1,310 | ||
Rosemont Gen. Oblig.: | ||||
Series 3, 0% 12/1/07 (FGIC Insured) | 625 | 615 | ||
Series A, 0% 12/1/11 (FGIC Insured) | 3,695 | 3,089 | ||
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Proj.) 5% 8/15/11 (AMBAC Insured) | 1,360 | 1,409 | ||
Will County School District #122 Series B, 0% 11/1/08 (FSA Insured) | 1,280 | 1,217 | ||
140,864 | ||||
Indiana - 3.3% | ||||
Carmel High School Bldg. Corp. 5% 1/10/11 (FSA Insured) | 1,000 | 1,033 | ||
Ctr. Grove 2000 Bldg. Corp.: | ||||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,785 | 1,888 | ||
5.5% 7/15/18 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,885 | 1,994 | ||
Hamilton Southeastern Consolidated School Bldg. Corp.: | ||||
Series A: | ||||
5% 1/10/10 (FSA Insured) | 1,750 | 1,795 | ||
5.25% 7/10/11 (FSA Insured) | 2,295 | 2,401 | ||
5.25% 1/10/12 (FSA Insured) | 1,355 | 1,423 | ||
5% 1/15/10 (FSA Insured) | 1,835 | 1,882 | ||
5% 1/15/11 (FSA Insured) | 1,910 | 1,974 | ||
5% 1/15/12 (FSA Insured) | 1,990 | 2,070 | ||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,855 | 1,962 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Indiana - continued | ||||
Indiana Univ. Student Fee Revs. Series H, 0% 8/1/09 (AMBAC Insured) | $ 3,875 | $ 3,573 | ||
Indianapolis Resource Recovery Rev. (Ogden Martin Sys., Inc. Proj.) 6.75% 12/1/07 (AMBAC Insured) | 3,000 | 3,029 | ||
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured) | 1,405 | 1,435 | ||
Logansport High School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,000 | 1,038 | ||
5.25% 7/15/11 (MBIA Insured) | 1,020 | 1,064 | ||
5.25% 1/15/12 (MBIA Insured) | 1,045 | 1,093 | ||
5.25% 7/15/12 (MBIA Insured) | 1,075 | 1,129 | ||
Mount Vernon of Hancock County Multi-School Corp. Series B: | ||||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,605 | 1,698 | ||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,695 | 1,793 | ||
Muncie School Bldg. Corp. 5.25% 7/10/12 (MBIA Insured) | 1,585 | 1,672 | ||
New Albany Floyd County Independent School Bldg. Corp. 5% 1/15/11 (FSA Insured) | 1,000 | 1,033 | ||
Rockport Poll. Cont. Rev. (AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (c) | 1,600 | 1,606 | ||
Saint Joseph County Ind. Edl. Facilities Rev. (Univ. of Notre Dame Du Lac Proj.) 2.5%, tender 12/3/07 (c) | 10,000 | 9,934 | ||
West Clark 2000 School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,065 | 1,107 | ||
5.25% 7/15/11 (MBIA Insured) | 1,125 | 1,175 | ||
5.25% 1/15/12 (MBIA Insured) | 1,150 | 1,206 | ||
52,007 | ||||
Kansas - 0.2% | ||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series A, 4.75%, tender 10/1/07 (c) | 2,400 | 2,404 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L: | ||||
5.25% 11/15/10 | 545 | 562 | ||
5.25% 11/15/12 | 680 | 709 | ||
3,675 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Kentucky - 0.2% | ||||
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (f) | $ 1,185 | $ 1,205 | ||
Owensboro Elec. Lt. & Pwr. Rev. Series B, 0% 1/1/09 (AMBAC Insured) | 2,000 | 1,885 | ||
3,090 | ||||
Louisiana - 0.5% | ||||
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. | 1,000 | 1,040 | ||
Ernest N. Morial-New Orleans Exhibit Hall Auth. Spl. Tax Series A, 5.25% 7/15/11 (AMBAC Insured) | 2,060 | 2,146 | ||
Louisiana Military Dept. Custody Receipts 5% 8/1/10 | 1,530 | 1,559 | ||
Louisiana Offshore Term. Auth. Deepwater Port Rev. (LOOP LLC Proj.) Series 2003 D, 4%, tender 9/1/08 (c) | 2,700 | 2,700 | ||
7,445 | ||||
Maryland - 0.3% | ||||
Baltimore Proj. Rev. Wtr. & Swr. Rev. Series D: | ||||
5% 7/1/10 (AMBAC Insured) | 690 | 711 | ||
5% 7/1/11 (AMBAC Insured) | 1,985 | 2,061 | ||
Howard County Retirement Cmnty. Rev. (Vantage House Proj.) Series A, 4.5% 4/1/09 | 605 | 604 | ||
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured) | 1,535 | 1,588 | ||
4,964 | ||||
Massachusetts - 5.2% | ||||
Massachusetts Bay Trans. Auth. Series A, 7% 3/1/09 | 6,880 | 7,218 | ||
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. Series A, 5% 1/1/11 | 1,000 | 1,027 | ||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C, 5.875% 8/1/08 | 1,630 | 1,655 | ||
Massachusetts Fed. Hwy.: | ||||
Series 2000 A, 5.75% 6/15/13 | 3,000 | 3,172 | ||
Series B, 5.125% 12/15/14 (Pre-Refunded to 12/15/08 @ 101) (g) | 2,775 | 2,850 | ||
Massachusetts Gen. Oblig.: | ||||
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (g) | 2,570 | 2,685 | ||
Series 2000 A: | ||||
5.8% 2/1/17 (Pre-Refunded to 2/1/10 @ 101) (g) | 5,000 | 5,277 | ||
6% 2/1/10 | 2,500 | 2,624 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Massachusetts - continued | ||||
Massachusetts Gen. Oblig.: - continued | ||||
Series 2000 B, 5.7% 6/1/19 (Pre-Refunded to 6/1/10 @ 100) (g) | $ 6,280 | $ 6,589 | ||
Series 2001 A, 5.5% 1/1/11 | 5,000 | 5,244 | ||
Series 2003 C, 5.5% 10/1/10 (MBIA Insured) | 1,130 | 1,184 | ||
Series C: | ||||
5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (g) | 2,495 | 2,636 | ||
5.5% 11/1/10 (FSA Insured) | 10,000 | 10,490 | ||
Massachusetts Health & Edl. Facilities Auth. Rev. (Berkshire Health Sys., Inc. Proj.) Series F, 5% 10/1/08 | 2,720 | 2,753 | ||
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series A, 5.5% 1/1/12 (AMBAC Insured) (f) | 1,000 | 1,048 | ||
Massachusetts Wtr. Resources Auth. Series A: | ||||
5.75% 8/1/30 (FGIC Insured) (Pre-Refunded to 8/1/10 @ 101) (g) | 19,000 | 20,171 | ||
5.75% 8/1/39 (Pre-Refunded to 8/1/10 @ 101) (g) | 5,000 | 5,308 | ||
81,931 | ||||
Michigan - 1.7% | ||||
Detroit City School District Series A, 5.5% 5/1/11 (FSA Insured) | 1,200 | 1,265 | ||
Detroit Gen. Oblig. 5% 4/1/09 (MBIA Insured) | 10,620 | 10,835 | ||
Detroit Swr. Disp. Rev.: | ||||
Series A, 5.75% 7/1/26 (Pre-Refunded to 1/1/10 @ 101) (g) | 2,000 | 2,103 | ||
4.184% 7/1/32 (FSA Insured) (c) | 4,200 | 4,200 | ||
Michigan Bldg. Auth. Rev. (Facilities Prog.) Series I, 5.5% 10/15/09 | 2,705 | 2,796 | ||
Michigan Hosp. Fin. Auth. Rev. (Oakwood Hosp. Proj.) Series A, 5% 7/15/11 | 2,500 | 2,567 | ||
Troy School District 5% 5/1/11 (MBIA Insured) | 1,000 | 1,037 | ||
Wayne County Cmnty. College (College Facilities Impt. Proj.) 5.25% 7/1/09 (FGIC Insured) | 1,220 | 1,253 | ||
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured) | 1,225 | 1,261 | ||
27,317 | ||||
Minnesota - 0.2% | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): | ||||
5.25% 12/1/08 | 1,200 | 1,217 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Minnesota - continued | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): - - continued | ||||
5.25% 12/1/10 | $ 500 | $ 516 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.): | ||||
5% 5/15/09 | 250 | 253 | ||
5% 5/15/10 | 200 | 204 | ||
5% 5/15/11 | 300 | 307 | ||
Saint Paul Port Auth. Lease Rev. (HealthEast Midway Campus Proj.) Series 2003 A, 5% 5/1/10 | 480 | 479 | ||
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured) | 940 | 974 | ||
3,950 | ||||
Mississippi - 0.4% | ||||
Mississippi Bus. Fin. Corp. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.4%, tender 3/1/11 (c)(f) | 1,100 | 1,091 | ||
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (f) | 1,190 | 1,204 | ||
Mississippi Hosp. Equip. & Facilities Auth.: | ||||
(Mississippi Baptist Med. Ctr. Proj.) Series 2007 A: | ||||
5% 8/15/09 | 1,000 | 1,015 | ||
5% 8/15/11 | 1,000 | 1,025 | ||
(South Central Reg'l. Med. Ctr. Proj.) 5% 12/1/10 | 1,240 | 1,264 | ||
5,599 | ||||
Missouri - 0.9% | ||||
Bi-State Dev. Agcy. Rev. 3.95%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | 6,600 | 6,590 | ||
Fenton Tax Increment Rev. (Gravois Bluffs Redev. Proj.) 5% 4/1/11 | 1,430 | 1,457 | ||
Kansas City School District Bldg. Corp. Rev. (School District Elementary School Proj.) Series B, 5% 2/1/11 (FGIC Insured) | 1,850 | 1,915 | ||
Lees Summit Indl. Dev. Auth. Sr. Living Facilities Rev. (John Knox Village Proj.) Series A, 5% 8/15/11 | 1,485 | 1,509 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Missouri - continued | ||||
Saint Louis County Indl. Dev. Auth. Sr. Living Facilities Rev. (Friendship Village West County Proj.) Series A, 5% 9/1/11 (b) | $ 1,000 | $ 1,013 | ||
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) (g) | 1,050 | 1,127 | ||
13,611 | ||||
Montana - 0.3% | ||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (c) | 4,000 | 4,080 | ||
Nebraska - 0.4% | ||||
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.) Series A, 5% 12/1/11 | 6,500 | 6,720 | ||
Nevada - 2.4% | ||||
Clark County Arpt. Rev. Series C: | ||||
5% 7/1/08 (AMBAC Insured) (f) | 2,215 | 2,239 | ||
5% 7/1/09 (AMBAC Insured) (f) | 2,700 | 2,747 | ||
5% 7/1/10 (AMBAC Insured) (f) | 1,225 | 1,254 | ||
5% 7/1/11 (AMBAC Insured) (f) | 1,790 | 1,841 | ||
Clark County Hwy. Impt. Rev. (Motor Vehicle Fuel Tax) 5% 7/1/11 (AMBAC Insured) | 3,230 | 3,349 | ||
Clark County School District: | ||||
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (g) | 1,600 | 1,681 | ||
Series C, 5% 6/15/10 (MBIA Insured) | 1,075 | 1,107 | ||
Series D, 5% 6/15/09 (MBIA Insured) | 13,890 | 14,189 | ||
Series F, 5.375% 6/15/11 (FSA Insured) | 4,090 | 4,295 | ||
Henderson Health Care Facilities Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08 | 1,100 | 1,111 | ||
Lyon Co. School District Gen. Oblig. 5% 6/1/09 | 695 | 710 | ||
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured) | 2,410 | 2,480 | ||
37,003 | ||||
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)(f) | 2,500 | 2,457 | ||
3.5%, tender 2/1/09 (c)(f) | 2,000 | 1,979 | ||
4,436 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
New Jersey - 5.6% | ||||
Camden County Impt. Auth. Rev. (Cooper Health Sys. Obligated Group Proj.) Series B, 5.25% 2/15/09 | $ 1,250 | $ 1,264 | ||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev. 5% 1/1/09 (AMBAC Insured) | 1,000 | 1,016 | ||
Elizabeth Gen. Oblig. 5.25% 8/15/09 (MBIA Insured) | 1,225 | 1,260 | ||
Garden State Preservation Trust Open Space & Farmland Preservation Series B: | ||||
6.25% 11/1/09 (MBIA Insured) | 4,000 | 4,211 | ||
6.375% 11/1/11 (MBIA Insured) | 7,470 | 8,167 | ||
New Jersey Tobacco Settlement Fing. Corp. 4.375% 6/1/19 (Pre-Refunded to 6/1/13 @ 100) (g) | 2,075 | 2,087 | ||
New Jersey Tpk. Auth. Tpk. Rev. Series A: | ||||
5.75% 1/1/18 (Pre-Refunded to 1/1/10 @ 100) (g) | 3,215 | 3,356 | ||
6% 1/1/11 (MBIA Insured) | 21,785 | 23,227 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series B: | ||||
5.25% 12/15/10 (FGIC Insured) | 4,550 | 4,742 | ||
6.5% 6/15/11 (MBIA Insured) | 5,000 | 5,456 | ||
Series C, 5.5% 12/15/10 (FSA Insured) | 25,000 | 26,252 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (g) | 7,000 | 7,307 | ||
88,345 | ||||
New Jersey/Pennsylvania - 0.3% | ||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5% 7/1/09 | 5,170 | 5,268 | ||
New Mexico - 0.1% | ||||
Farmington Poll. Cont. Rev. Series B, 3.55%, tender 4/1/10 (FGIC Insured) (c) | 1,900 | 1,876 | ||
New York - 16.1% | ||||
Grand Central District Mgmt. Assoc., Inc.: | ||||
5% 1/1/10 | 1,200 | 1,227 | ||
5% 1/1/12 | 1,175 | 1,217 | ||
Metropolitan Trans. Auth. Commuter Facilities Rev. | 3,635 | 3,744 | ||
New York City Gen. Oblig.: | ||||
Series 1996 B, 6.5% 8/15/09 | 3,425 | 3,600 | ||
Series 1997 H, 6% 8/1/12 (FGIC Insured) | 1,300 | 1,418 | ||
Series 2000 A, 6.5% 5/15/11 | 155 | 167 | ||
Series 2002 G, 5.5% 8/1/10 | 2,720 | 2,838 | ||
Series 2003 F, 5.5% 12/15/11 | 8,315 | 8,808 | ||
Series 2004 G, 5% 8/1/09 | 8,000 | 8,170 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
New York - continued | ||||
New York City Gen. Oblig.: - continued | ||||
Series 2005 C, 5% 8/1/12 | $ 19,770 | $ 20,595 | ||
Series 2005 D, 5% 8/1/12 | 4,925 | 5,131 | ||
Series 2005 G, 5.625% 8/1/13 (MBIA Insured) | 5,075 | 5,440 | ||
Series 2005 K: | ||||
5% 8/1/11 | 7,120 | 7,377 | ||
5% 8/1/12 | 4,360 | 4,542 | ||
Series 2005 O, 5% 6/1/12 | 7,500 | 7,804 | ||
Series A, 5.25% 11/1/14 (MBIA Insured) | 600 | 635 | ||
Series B, 5.75% 8/1/14 | 1,000 | 1,074 | ||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 1,000 | 1,051 | ||
Subseries 2005 F1, 5% 9/1/15 | 3,560 | 3,750 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. 6% 6/15/33 (MBIA Insured) (Pre-Refunded to 6/15/10 @ 101) (g) | 10,000 | 10,636 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 E, 5% 2/1/09 | 2,035 | 2,072 | ||
Series A: | ||||
5.5% 11/1/26 (a) | 3,500 | 3,701 | ||
6% 11/1/28 (a) | 44,300 | 47,615 | ||
Series B, 5.25% 2/1/29 (a) | 3,100 | 3,224 | ||
New York Counties Tobacco Trust I Series B, 6.5% 6/1/35 (Pre-Refunded to 6/1/10 @ 101) (g) | 5,900 | 6,380 | ||
New York Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.): | ||||
Series A: | ||||
5.75% 7/1/13 | 3,500 | 3,724 | ||
5.75% 7/1/13 (AMBAC Insured) | 1,000 | 1,066 | ||
Series C, 7.5% 7/1/10 | 12,985 | 13,641 | ||
Series B, 5.25%, tender 5/15/12 (c) | 13,000 | 13,641 | ||
New York Metropolitan Transit Auth. Rev. Series 2005 C: | ||||
5% 11/15/10 | 2,000 | 2,064 | ||
5% 11/15/11 | 2,750 | 2,856 | ||
New York Urban Dev. Corp. Rev. 5% 1/1/12 | 5,000 | 5,199 | ||
Tobacco Settlement Asset Securitization Corp. Series 1: | ||||
5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (g) | 6,760 | 7,064 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (g) | 1,200 | 1,261 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (g) | 2,490 | 2,617 | ||
6% 7/15/20 (Pre-Refunded to 7/15/09 @ 101) (g) | 2,280 | 2,396 | ||
6% 7/15/21 (Pre-Refunded to 7/15/09 @ 101) (g) | 2,310 | 2,428 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2004 B1, 5% 6/1/09 | 3,800 | 3,884 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
New York - continued | ||||
Tobacco Settlement Fing. Corp.: - continued | ||||
Series A1: | ||||
5% 6/1/10 | $ 1,875 | $ 1,927 | ||
5.25% 6/1/12 | 150 | 150 | ||
5.25% 6/1/13 | 17,500 | 17,683 | ||
5.5% 6/1/14 | 2,700 | 2,771 | ||
Series C1: | ||||
5.5% 6/1/15 | 1,300 | 1,349 | ||
5.5% 6/1/17 | 4,200 | 4,401 | ||
252,338 | ||||
New York & New Jersey - 0.6% | ||||
Port Auth. of New York & New Jersey: | ||||
124th Series, 5% 8/1/13 (FGIC Insured) (f) | 1,200 | 1,221 | ||
127th Series, 5% 12/15/08 (AMBAC Insured) (f) | 3,510 | 3,567 | ||
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) (f) | 4,100 | 4,543 | ||
9,331 | ||||
North Carolina - 0.6% | ||||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | ||||
Series 1993 B, 7% 1/1/08 (MBIA Insured) | 600 | 609 | ||
Series A, 5.5% 1/1/10 | 3,000 | 3,095 | ||
Series C, 5% 1/1/08 | 1,190 | 1,196 | ||
Series D, 5.375% 1/1/10 | 3,730 | 3,837 | ||
8,737 | ||||
North Dakota - 0.1% | ||||
Ward County Health Care Facility Rev. 5% 7/1/10 | 1,595 | 1,622 | ||
Ohio - 1.1% | ||||
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A, 5% 1/1/11 | 1,000 | 1,021 | ||
Cleveland Pub. Pwr. Sys. Rev.: | ||||
Series A, 0% 11/15/09 (MBIA Insured) | 1,200 | 1,091 | ||
0% 11/15/09 (Escrowed to Maturity) (g) | 1,050 | 958 | ||
Ohio Gen. Oblig. Series 2003 D, 2.45%, tender 9/14/07 (c) | 12,300 | 12,261 | ||
Univ. of Cincinnati Gen. Receipts Series A, 5.5% 6/1/09 (FGIC Insured) | 2,000 | 2,061 | ||
17,392 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Oklahoma - 1.2% | ||||
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (g) | $ 1,000 | $ 836 | ||
Grand River Dam Auth. Rev. 6.25% 6/1/11 (AMBAC Insured) | 8,940 | 9,664 | ||
Norman Reg'l. Hosp. Auth. Hosp. Rev. 5% 9/1/12 (Radian Asset Assurance, Inc. Insured) | 1,035 | 1,069 | ||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 5% 2/15/13 | 1,150 | 1,192 | ||
Tulsa County Indl. Auth. Cap. Impts. Rev. Series B, 5.25% 1/1/09 (FSA Insured) | 5,245 | 5,349 | ||
18,110 | ||||
Oregon - 0.5% | ||||
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured) | 1,210 | 1,247 | ||
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B: | ||||
5% 5/1/09 (FSA Insured) | 600 | 612 | ||
5% 5/1/11 (FSA Insured) | 1,000 | 1,037 | ||
Tri-County Metropolitan Trans. District Rev. 5% 5/1/11 (MBIA Insured) | 5,000 | 5,186 | ||
8,082 | ||||
Pennsylvania - 2.9% | ||||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (MBIA Insured) (f) | 1,300 | 1,379 | ||
Allegheny County Hosp. Dev. Auth. Rev. (West Penn Allegheny Health Sys. Proj.) Series A, 5% 11/15/10 | 2,765 | 2,788 | ||
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 | 4,471 | ||
Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured) | 1,495 | 1,607 | ||
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.) Series B: | ||||
5% 12/15/09 | 2,565 | 2,600 | ||
5% 12/15/11 | 2,835 | 2,897 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(f) | 10,000 | 9,850 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(f) | 2,100 | 2,097 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Pennsylvania Health Sys. Proj.) Series A, 5% 8/15/08 | 2,000 | 2,024 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Pennsylvania - continued | ||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: - continued | ||||
(UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09 | $ 1,750 | $ 1,796 | ||
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured) | 2,750 | 2,855 | ||
Philadelphia Muni. Auth. Rev. Series B, 5.25% 11/15/11 (FSA Insured) | 3,400 | 3,563 | ||
Philadelphia School District: | ||||
Series 2005 D, 5.25% 6/1/12 (FSA Insured) | 1,465 | 1,540 | ||
Series B, 5% 4/1/11 (AMBAC Insured) | 2,160 | 2,235 | ||
Pittsburgh School District Series A, 5% 9/1/09 (MBIA Insured) | 1,600 | 1,634 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) (g) | 2,355 | 1,915 | ||
45,251 | ||||
Puerto Rico - 1.4% | ||||
Puerto Rico Convention Ctr. District Auth. Hotel Occupancy Tax Rev. Series 2006 A, 5% 7/1/10 | 2,000 | 2,046 | ||
Puerto Rico Govt. Dev. Bank Series B: | ||||
5% 12/1/10 | 8,000 | 8,203 | ||
5% 12/1/12 | 1,000 | 1,034 | ||
Univ. of Puerto Rico: | ||||
Series 06P, 5% 6/1/11 | 5,760 | 5,926 | ||
Series Q, 5% 6/1/11 | 4,825 | 4,964 | ||
22,173 | ||||
Rhode Island - 0.2% | ||||
Providence Spl. Oblig. Series 2005 E: | ||||
4% 6/1/08 (Radian Asset Assurance, Inc. Insured) | 1,000 | 1,001 | ||
5% 6/1/09 (Radian Asset Assurance, Inc. Insured) | 1,315 | 1,337 | ||
5% 6/1/10 (Radian Asset Assurance, Inc. Insured) | 1,180 | 1,206 | ||
3,544 | ||||
South Carolina - 1.1% | ||||
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A: | ||||
5% 8/15/07 | 1,700 | 1,702 | ||
5% 8/15/08 | 1,690 | 1,702 | ||
Greenville County Pub. Facilities Corp. Ctfs. of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 (AMBAC Insured) | 1,450 | 1,492 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
South Carolina - continued | ||||
Greenville County School District Installment Purp. Rev. 5% 12/1/10 | $ 1,455 | $ 1,496 | ||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5% 12/1/09 | 550 | 562 | ||
Piedmont Muni. Pwr. Agcy. Elec. Rev. 5.6% 1/1/09 (MBIA Insured) | 2,345 | 2,404 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2005 B, 5% 1/1/10 (MBIA Insured) | 3,000 | 3,076 | ||
Series A, 5.5% 1/1/11 (MBIA Insured) | 3,000 | 3,136 | ||
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured) | 1,000 | 1,021 | ||
16,591 | ||||
Tennessee - 1.2% | ||||
Clarksville Natural Gas Acquisition Corp. Gas Rev. 5% 12/15/09 | 7,500 | 7,673 | ||
Elizabethton Health & Edl. Facilities Board Rev. (First Mtg. Prog.) 6% 7/1/11 (MBIA Insured) | 2,005 | 2,145 | ||
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured) | 2,000 | 2,058 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A, 4.5% 9/1/09 (MBIA Insured) | 1,685 | 1,706 | ||
Metropolitan Govt. Nashville & Series A, 5.25% 10/15/09 | 3,795 | 3,908 | ||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured) | 1,200 | 1,226 | ||
18,716 | ||||
Texas - 10.2% | ||||
Alief Independent School District Series 2004 B, 5% 2/15/10 | 1,500 | 1,539 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B: | ||||
6% 1/1/12 | 500 | 522 | ||
6% 1/1/13 | 1,270 | 1,335 | ||
6% 1/1/14 | 1,420 | 1,501 | ||
Austin Elec. Util. Sys. Rev.: | ||||
5% 11/15/10 (FSA Insured) (b) | 3,000 | 3,092 | ||
5% 11/15/11 (FSA Insured) (b) | 4,000 | 4,148 | ||
Austin Util. Sys. Rev. Series 1992 A: | ||||
0% 11/15/09 (MBIA Insured) | 5,130 | 4,664 | ||
0% 11/15/10 (MBIA Insured) | 5,300 | 4,621 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Texas - continued | ||||
Bexar County Series A: | ||||
5% 6/15/09 (FSA Insured) | $ 2,615 | $ 2,671 | ||
5% 6/15/10 (FSA Insured) | 1,000 | 1,029 | ||
Birdville Independent School District 5% 2/15/10 | 1,300 | 1,334 | ||
Brownsville Independent School District 5% 8/15/11 | 1,430 | 1,483 | ||
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured) | 1,500 | 1,583 | ||
College Station Independent School District 5% 2/15/10 | 1,000 | 1,026 | ||
Denton County Gen. Oblig. 5% 7/15/11 (FSA Insured) | 3,065 | 3,177 | ||
Fort Bend Independent School District 5%, tender 8/15/09 (c) | 5,000 | 5,094 | ||
Fort Worth Independent School District 5% 2/15/12 | 1,500 | 1,559 | ||
Frisco Gen. Oblig. Series 2003 A, 5% 2/15/10 (FSA Insured) | 1,710 | 1,754 | ||
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A, 5.5% 2/15/09 | 3,710 | 3,799 | ||
Houston Cmnty. College Sys. Rev.: | ||||
5.25% 4/15/11 (FSA Insured) | 3,030 | 3,162 | ||
5.25% 4/15/12 (FSA Insured) | 2,000 | 2,105 | ||
Houston Util. Sys. Rev. Series A: | ||||
5.25% 5/15/10 (MBIA Insured) | 2,835 | 2,935 | ||
5.25% 11/15/11 (FSA Insured) | 4,430 | 4,651 | ||
Katy Independent School District Series A, 5.25% 2/15/12 | 2,000 | 2,099 | ||
Lower Colorado River Auth. Rev.: | ||||
0% 1/1/09 (Escrowed to Maturity) (g) | 3,000 | 2,830 | ||
5.25% 1/1/15 (Pre-Refunded to 1/1/11 @ 100) (g) | 5,000 | 5,205 | ||
Lubbock Gen. Oblig.: | ||||
(Wtrwks. Sys. Surplus Proj.) 5% 2/15/11 (FSA Insured) | 2,465 | 2,546 | ||
5% 2/15/10 (MBIA Insured) | 1,845 | 1,893 | ||
Lubbock Health Facilities Dev. Corp. Rev. (Carillon, Inc. Proj.) Series A, 6.5% 7/1/29 (Pre-Refunded to 7/1/09 @ 102) (g) | 4,800 | 5,130 | ||
Magnolia Independent School District 8% 8/15/11 (FGIC Insured) | 1,210 | 1,389 | ||
Montgomery County Gen. Oblig. Series B, 5%, tender 9/1/10 (FSA Insured) (c) | 1,300 | 1,336 | ||
North East Texas Independent School District 7% 2/1/11 (Pre-Refunded to 2/1/10 @ 100) (g) | 3,600 | 3,869 | ||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C, 5%, tender 7/1/08 (c)(g) | 45 | 46 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Texas - continued | ||||
Northside Independent School District Series A, 3.78%, tender 6/1/09 (c) | $ 5,000 | $ 4,998 | ||
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series A, 5.5%, tender 11/1/11 (c) | 1,000 | 1,016 | ||
San Angelo Wtrwks. & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured) | 1,630 | 1,675 | ||
San Antonio Elec. & Gas Sys. Rev.: | ||||
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (g) | 5,000 | 5,219 | ||
Series B: | ||||
0% 2/1/09 (Escrowed to Maturity) (g) | 2,500 | 2,351 | ||
0% 2/1/10 (Escrowed to Maturity) (g) | 14,000 | 12,622 | ||
San Antonio Muni. Drainage Util. Sys. Rev. 5.25% 2/1/12 (MBIA Insured) | 1,545 | 1,624 | ||
San Antonio Wtr. Sys. Rev. 5% 5/15/10 (FGIC Insured) | 1,020 | 1,049 | ||
Socorro Independent School District 5% 8/15/09 | 2,070 | 2,115 | ||
Spring Branch Independent School District: | ||||
5.375% 2/1/14 | 1,090 | 1,138 | ||
5.375% 2/1/14 (Pre-Refunded to 2/1/11 @ 100) (g) | 1,700 | 1,779 | ||
Texas Gen. Oblig.: | ||||
(College Student Ln. Prog.) 5% 8/1/11 (f) | 3,000 | 3,054 | ||
Series C, 0% 4/1/09 (Escrowed to Maturity) (g) | 2,320 | 2,167 | ||
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Proj.) Series A, 5% 2/1/10 (AMBAC Insured) | 1,055 | 1,083 | ||
Texas Tech Univ. Revs. Ninth Series, 5% 2/15/11 (AMBAC Insured) | 1,250 | 1,292 | ||
Texas Wtr. Dev. Board Rev. Series B, 5% 7/15/11 | 2,780 | 2,882 | ||
Travis County Gen. Oblig. 5.25% 3/1/12 | 4,125 | 4,336 | ||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.) 5% 7/1/07 | 1,000 | 1,000 | ||
Univ. of Texas Univ. Revs.: | ||||
(Fing. Sys. Proj.) Series A, 5.5% 8/15/09 | 1,115 | 1,151 | ||
Series B: | ||||
5% 8/15/09 | 11,255 | 11,505 | ||
5.25% 8/15/11 | 5,025 | 5,261 | ||
Wichita Falls Independent School District 0% 2/1/10 | 2,325 | 2,091 | ||
Ysleta Independent School District 0% 8/15/09 | 4,065 | 3,730 | ||
160,265 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Utah - 1.3% | ||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | ||||
0% 10/1/11 (AMBAC Insured) | $ 3,800 | $ 3,178 | ||
0% 10/1/12 (AMBAC Insured) | 3,800 | 3,038 | ||
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 | 1,763 | ||
Utah Gen. Oblig. Series 2006 B, 5.375% 7/1/10 | 9,475 | 9,868 | ||
20,718 | ||||
Virginia - 0.1% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.05%, tender 4/1/08 (c)(f) | 1,600 | 1,598 | ||
Washington - 2.4% | ||||
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured) | 1,190 | 1,234 | ||
Clark County Pub. Util. District #1 Elec. Rev.: | ||||
5% 1/1/11 (MBIA Insured) | 1,680 | 1,735 | ||
5.25% 1/1/11 (FSA Insured) | 1,935 | 2,014 | ||
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured) | 1,740 | 1,803 | ||
Pierce County Gen. Oblig. 5.75% 8/1/13 (Pre-Refunded to 8/1/10 @ 100) (g) | 1,155 | 1,215 | ||
Port of Seattle Rev. Series D, 5.75% 11/1/15 | 3,640 | 3,880 | ||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/09 (FGIC Insured) | 1,000 | 1,012 | ||
Snohomish County School District #2, Everett: | ||||
5% 6/1/09 (FSA Insured) | 1,045 | 1,067 | ||
5% 6/1/10 (FSA Insured) | 1,000 | 1,029 | ||
Vancouver Wtr. & Swr. Rev. 5.25% 6/1/11 | 1,000 | 1,045 | ||
Washington Gen. Oblig. Series A: | ||||
5% 7/1/11 (FGIC Insured) | 1,000 | 1,038 | ||
5.5% 7/1/11 (Pre-Refunded to 7/1/10 @ 100) (g) | 3,500 | 3,653 | ||
5.625% 7/1/25 (Pre-Refunded to 7/1/10 @ 100) (g) | 13,000 | 13,619 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev. Series A, 5.75% 7/1/08 | 3,000 | 3,056 | ||
37,400 | ||||
Wisconsin - 0.9% | ||||
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured) | 3,370 | 2,923 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Wisconsin - continued | ||||
Wisconsin Gen. Oblig. Series 1, 5% 5/1/10 | $ 2,500 | $ 2,571 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Marshfield Clinic Proj.): | ||||
Series 2006 A, 5% 2/15/13 | 875 | 893 | ||
Series B, 6.25% 2/15/10 | 1,015 | 1,062 | ||
(Wheaton Franciscan Services Proj.): | ||||
5% 8/15/11 | 1,315 | 1,338 | ||
5.75% 8/15/11 | 1,000 | 1,050 | ||
(Wheaton Franciscan Svcs., Inc. Proj.) Series A: | ||||
5% 8/15/09 | 1,765 | 1,783 | ||
5% 8/15/10 | 1,870 | 1,897 | ||
13,517 | ||||
TOTAL MUNICIPAL BONDS (Cost $1,544,212) | 1,529,064 | |||
Municipal Notes - 2.0% | ||||
New Jersey - 1.0% | ||||
New Jersey Tpk. Auth. Tpk. Rev. Participating VRDN | 16,000 | 16,000 | ||
Texas - 1.0% | ||||
San Antonio Elec. & Gas Sys. Rev. Participating VRDN | 16,000 | 16,000 | ||
TOTAL MUNICIPAL NOTES (Cost $31,992) | 32,000 | |||
Money Market Funds - 0.3% | ||||
Shares | ||||
Fidelity Municipal Cash Central Fund, 3.81% (d)(e) | 4,869,900 | 4,870 | ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $1,581,074) | 1,565,934 | |||
NET OTHER ASSETS - 0.0% | (746) | |||
NET ASSETS - 100% | $ 1,565,188 |
Swap Agreements | |||||
Expiration Date | Notional Amount (000s) | Value (000s) | |||
Interest Rate Swaps | |||||
Receive quarterly a fixed rate equal to 3.4% and pay quarterly a floating rate based on BMA Municipal Swap Index with Merrill Lynch, Inc. | June 2012 | $ 44,000 | $ (599) | ||
Receive quarterly a floating rate based on BMA Municipal Swap Index and pay quarterly a fixed rate equal to 3.737% with Citibank | June 2018 | 20,000 | 477 | ||
$ 64,000 | $ (122) |
Security Type Abbreviation |
VRDN | - | VARIABLE RATE DEMAND NOTE |
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) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(e) 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. |
(f) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(g) Security collateralized by an amount sufficient to pay interest and principal. |
(h) Provides evidence of ownership in one or more underlying municipal bonds. |
(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 $8,653,000 or 0.6% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Regents of the Univ. of California Rev. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 8,607 |
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 | $ 9 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 40.3% |
Escrowed/Pre-Refunded | 14.7% |
Special Tax | 9.1% |
Electric Utilities | 9.0% |
Health Care | 6.3% |
Transportation | 6.2% |
Education | 5.7% |
Others* (individually less than 5%) | 8.7% |
100.0% |
* Includes cash equivalents and net |
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.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | June 30, 2007 (Unaudited) | |
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $1,576,204) | $ 1,561,064 | |
Fidelity Central Funds (cost $4,870) | 4,870 | |
Total Investments (cost $1,581,074) | $ 1,565,934 | |
Cash | 49 | |
Receivable for fund shares sold | 1,161 | |
Interest receivable | 21,219 | |
Distributions receivable from Fidelity Central Funds | 9 | |
Prepaid expenses | 4 | |
Other receivables | 309 | |
Total assets | 1,588,685 | |
Liabilities | ||
Payable for investments purchased | $ 7,000 | |
Delayed delivery | 12,829 | |
Payable for fund shares redeemed | 1,207 | |
Distributions payable | 1,390 | |
Swap agreements, at value | 122 | |
Accrued management fee | 475 | |
Distribution fees payable | 10 | |
Other affiliated payables | 433 | |
Other payables and accrued expenses | 31 | |
Total liabilities | 23,497 | |
Net Assets | $ 1,565,188 | |
Net Assets consist of: | ||
Paid in capital | $ 1,588,361 | |
Distributions in excess of net investment income | (9) | |
Accumulated undistributed net realized gain (loss) on investments | (7,902) | |
Net unrealized appreciation (depreciation) on investments | (15,262) | |
Net Assets | $ 1,565,188 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | June 30, 2007 (Unaudited) | |
Calculation of Maximum Offering Price | $ 10.14 | |
Maximum offering price per share (100/97.25 of $10.14) | $ 10.43 | |
Class T: | $ 10.13 | |
Maximum offering price per share (100/97.25 of $10.13) | $ 10.42 | |
Class B: | $ 10.14 | |
Class C: | $ 10.13 | |
Short-Intermediate Municipal Income: | $ 10.13 | |
Institutional Class: | $ 10.13 |
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.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended June 30, 2007 (Unaudited) | |
Investment Income | ||
Interest | $ 27,361 | |
Income from Fidelity Central Funds | 9 | |
Total income | 27,370 | |
Expenses | ||
Management fee | $ 2,834 | |
Transfer agent fees | 710 | |
Distribution fees | 63 | |
Accounting fees and expenses | 146 | |
Custodian fees and expenses | 11 | |
Independent trustees' compensation | 2 | |
Registration fees | 82 | |
Audit | 29 | |
Legal | 5 | |
Miscellaneous | 9 | |
Total expenses before reductions | 3,891 | |
Expense reductions | (507) | 3,384 |
Net investment income | 23,986 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (1,813) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (8,144) | |
Swap agreements | (122) | |
Total change in net unrealized appreciation (depreciation) | (8,266) | |
Net gain (loss) | (10,079) | |
Net increase (decrease) in net assets resulting from operations | $ 13,907 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 23,986 | $ 48,409 |
Net realized gain (loss) | (1,813) | (4,249) |
Change in net unrealized appreciation (depreciation) | (8,266) | 1,984 |
Net increase (decrease) in net assets resulting | 13,907 | 46,144 |
Distributions to shareholders from net investment income | (23,993) | (48,409) |
Share transactions - net increase (decrease) | 55,343 | (188,103) |
Redemption fees | 16 | 13 |
Total increase (decrease) in net assets | 45,273 | (190,355) |
Net Assets | ||
Beginning of period | 1,519,915 | 1,710,270 |
End of period (including distributions in excess of net investment income of $9 and distributions in excess of net investment income of $2, respectively) | $ 1,565,188 | $ 1,519,915 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.21 | $ 10.21 | $ 10.39 | $ 10.50 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .149 | .292 | .268 | .250 | .115 |
Net realized and unrealized gain (loss) | (.071) | (.001) | (.177) | (.090) | .071 |
Total from investment operations | .078 | .291 | .091 | .160 | .186 |
Distributions from net investment income | (.148) | (.291) | (.268) | (.251) | (.111) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.148) | (.291) | (.271) | (.270) | (.176) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, | $ 10.14 | $ 10.21 | $ 10.21 | $ 10.39 | $ 10.50 |
Total Return B, C, D | .77% | 2.89% | .89% | 1.55% | 1.78% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | .70% A | .65% | .65% | .65% | .65% A |
Expenses net of fee waivers, if any | .70% A | .65% | .65% | .65% | .65% A |
Expenses net of all reductions | .63% A | .56% | .58% | .64% | .64% A |
Net investment income | 2.94% A | 2.86% | 2.61% | 2.41% | 2.52% A |
Supplemental Data | |||||
Net assets, end of period | $ 9 | $ 10 | $ 14 | $ 12 | $ 9 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.19 | $ 10.20 | $ 10.37 | $ 10.48 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .146 | .281 | .257 | .238 | .110 |
Net realized and unrealized gain (loss) | (.060) | (.011) | (.167) | (.089) | .050 |
Total from investment operations | .086 | .270 | .090 | .149 | .160 |
Distributions from net investment income | (.146) | (.280) | (.257) | (.240) | (.105) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.146) | (.280) | (.260) | (.259) | (.170) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 10.19 | $ 10.20 | $ 10.37 | $ 10.48 |
Total Return B, C, D | .84% | 2.69% | .88% | 1.44% | 1.54% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | .76% A | .75% | .76% | .76% | .77% A |
Expenses net of fee waivers, if any | .76% A | .75% | .76% | .76% | .77% A |
Expenses net of all reductions | .69% A | .66% | .69% | .75% | .76% A |
Net investment income | 2.88% A | 2.76% | 2.50% | 2.30% | 2.41% A |
Supplemental Data | |||||
Net assets, end of period | $ 9 | $ 13 | $ 15 | $ 20 | $ 12 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.20 | $ 10.21 | $ 10.39 | $ 10.49 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .112 | .215 | .190 | .172 | .081 |
Net realized and unrealized gain (loss) | (.060) | (.012) | (.177) | (.080) | .059 |
Total from investment operations | .052 | .203 | .013 | .092 | .140 |
Distributions from net investment income | (.112) | (.213) | (.190) | (.173) | (.075) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.112) | (.213) | (.193) | (.192) | (.140) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, end of period | $ 10.14 | $ 10.20 | $ 10.21 | $ 10.39 | $ 10.49 |
Total Return B, C, D | .51% | 2.02% | .13% | .89% | 1.34% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | 1.43% A | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of fee waivers, if any | 1.43% A | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of all reductions | 1.36% A | 1.31% | 1.34% | 1.39% | 1.39% A |
Net investment income | 2.21% A | 2.11% | 1.85% | 1.65% | 1.78% A |
Supplemental Data | |||||
Net assets, end of period | $ 2 | $ 2 | $ 3 | $ 4 | $ 2 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .107 | .204 | .178 | .159 | .077 |
Net realized and unrealized gain (loss) | (.060) | (.011) | (.176) | (.080) | .048 |
Total from investment operations | .047 | .193 | .002 | .079 | .125 |
Distributions from net investment income | (.107) | (.203) | (.179) | (.160) | (.070) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.107) | (.203) | (.182) | (.179) | (.135) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 |
Total Return B, C, D | .46% | 1.92% | .02% | .77% | 1.20% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | 1.53% A | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of fee waivers, if any | 1.53% A | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of all reductions | 1.46% A | 1.41% | 1.45% | 1.51% | 1.49% A |
Net investment income | 2.11% A | 2.01% | 1.74% | 1.53% | 1.67% A |
Supplemental Data | |||||
Net assets, end of period | $ 5 | $ 7 | $ 10 | $ 11 | $ 8 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Short-Intermediate Municipal Income
Six months ended June 30, 2007 | Years ended December 31, | |||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 | 2002 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 | $ 10.27 |
Income from Investment Operations | ||||||
Net investment income D | .158 | .307 | .284 | .268 | .283 | .336 |
Net realized and unrealized gain (loss) | (.060) | (.010) | (.177) | (.080) | .030 | .317 |
Total from investment operations | .098 | .297 | .107 | .188 | .313 | .653 |
Distributions from net investment income | (.158) | (.307) | (.284) | (.269) | (.283) | (.339) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.070) | (.064) |
Total distributions | (.158) | (.307) | (.287) | (.288) | (.353) | (.403) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, | $ 10.13 | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 |
Total Return B, C | .97% | 2.95% | 1.06% | 1.82% | 3.01% | 6.47% |
Ratios to Average Net Assets E, G | ||||||
Expenses before reductions | .50% A | .49% | .49% | .49% | .49% | .49% |
Expenses net of fee waivers, if any | .50% A | .49% | .49% | .48% | .49% | .49% |
Expenses net of all reductions | .43% A | .41% | .42% | .47% | .47% | .45% |
Net investment income | 3.14% A | 3.01% | 2.77% | 2.57% | 2.69% | 3.23% |
Supplemental Data | ||||||
Net assets, end of | $ 1,536 | $ 1,485 | $ 1,665 | $ 1,841 | $ 1,843 | $ 1,683 |
Portfolio turnover rate F | 26% A | 28% | 27% | 45% | 34% | 38% |
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 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
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. 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.
Semiannual Report
Financial Highlights - Institutional Class
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 G | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.20 | $ 10.20 | $ 10.38 | $ 10.49 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income D | .157 | .306 | .283 | .265 | .125 |
Net realized and unrealized gain (loss) | (.070) | - | (.176) | (.088) | .059 |
Total from investment operations | .087 | .306 | .107 | .177 | .184 |
Distributions from net investment income | (.157) | (.306) | (.284) | (.268) | (.119) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.157) | (.306) | (.287) | (.287) | (.184) |
Redemption fees added to paid in capital D, I | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 10.20 | $ 10.20 | $ 10.38 | $ 10.49 |
Total Return B, C | .85% | 3.05% | 1.05% | 1.71% | 1.77% |
Ratios to Average Net Assets E, H | |||||
Expenses before reductions | .53% A | .50% | .49% | .49% | .48% A |
Expenses net of fee waivers, if any | .53% A | .50% | .49% | .49% | .48% A |
Expenses net of all reductions | .47% A | .41% | .42% | .48% | .47% A |
Net investment income | 3.11% A | 3.01% | 2.77% | 2.57% | 2.69% A |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 3,255 | $ 3,357 | $ 2,625 | $ 1,253 | $ 414 |
Portfolio turnover rate F | 26% A | 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 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
H 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.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2007 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. 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 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies.
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, 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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds 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 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. The Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
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 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 federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 2,491 | |
Unrealized depreciation | (17,631) | |
Net unrealized appreciation (depreciation) | $ (15,140) | |
Cost for federal income tax purposes | $ 1,581,074 |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
New Accounting Pronouncement. 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.
4. 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 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.
Swap Agreements. The Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.
Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.
Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are
Semiannual Report
4. Operating Policies - continued
Swap Agreements - continued
realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the Fund's Schedule of Investments under the caption "Swap Agreements."
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $233,582 and $195,478, respectively.
6. 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 annualized 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, 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 | 0% | .25% | $ 9 | $ - |
Class T | 0% | .25% | 14 | - |
Class B | .65% | .25% | 10 | 7 |
Class C | .75% | .25% | 30 | 4 |
$ 63 | $ 11 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
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 2.75% for selling Class A and Class T shares (3.75% for Class A shares prior to April 1, 2007), 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 and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 1 |
Class T | - |
Class B* | 2 |
Class C* | 3 |
$ 6 |
* 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.
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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
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 | $ 4 | .09 |
Class T | 5 | .10 |
Class B | 1 | .11 |
Class C | 3 | .11 |
Short-Intermediate Municipal Income | 695 | .09 |
Institutional Class | 2 | .12 |
$ 710 |
* Annualized
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.
7. 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 $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. 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 $11 and $146, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | ||
Class A | $ 2 | |
Class T | 2 | |
Class B | 1 | |
Class C | 1 | |
Short-Intermediate Municipal Income | 340 | |
Institutional Class | 1 | |
$ 347 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. 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.
In September 2006, FIIOC, the Fund's transfer agent, 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. In March 2007, FIIOC converted the relevant Class B shares to Class A shares and recorded the conversion in the books and records of the Fund which did not result in a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. FIIOC has reimbursed the Fund for related audit and legal expenses and, beginning in June 2007, remediated affected shareholders.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income | ||
Class A | $ 139 | $ 317 |
Class T | 162 | 388 |
Class B | 24 | 63 |
Class C | 62 | 157 |
Short-Intermediate Municipal Income | 23,552 | 47,385 |
Institutional Class | 54 | 99 |
Total | $ 23,993 | $ 48,409 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 47 | 246 | $ 478 | $ 2,516 |
Reinvestment of distributions | 11 | 25 | 115 | 253 |
Shares redeemed | (162) | (701) | (1,655) | (7,154) |
Net increase (decrease) | (104) | (430) | $ (1,062) | $ (4,385) |
Class T | ||||
Shares sold | 183 | 302 | $ 1,869 | $ 3,071 |
Reinvestment of distributions | 13 | 30 | 131 | 307 |
Shares redeemed | (512) | (564) | (5,213) | (5,739) |
Net increase (decrease) | (316) | (232) | $ (3,213) | $ (2,361) |
Class B | ||||
Shares sold | 46 | 27 | $ 472 | $ 268 |
Reinvestment of distributions | 2 | 4 | 16 | 45 |
Shares redeemed | (63) | (138) | (645) | (1,399) |
Net increase (decrease) | (15) | (107) | $ (157) | $ (1,086) |
Class C | ||||
Shares sold | 50 | 162 | $ 520 | $ 1,641 |
Reinvestment of distributions | 4 | 9 | 39 | 96 |
Shares redeemed | (164) | (536) | (1,671) | (5,451) |
Net increase (decrease) | (110) | (365) | $ (1,112) | $ (3,714) |
Short-Intermediate Municipal Income | ||||
Shares sold | 22,742 | 38,594 | $ 231,480 | $ 392,661 |
Reinvestment of distributions | 1,568 | 3,345 | 15,946 | 34,020 |
Shares redeemed | (18,324) | (59,417) | (186,459) | (603,968) |
Net increase (decrease) | 5,986 | (17,478) | $ 60,967 | $ (177,287) |
Institutional Class | ||||
Shares sold | 99 | 258 | $ 1,001 | $ 2,623 |
Reinvestment of distributions | 2 | 5 | 22 | 47 |
Shares redeemed | (109) | (191) | (1,103) | (1,940) |
Net increase (decrease) | (8) | 72 | $ (80) | $ 730 |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Short-Intermediate Municipal Income Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, as available, the cumulative total returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Semiannual Report
Fidelity Short-Intermediate Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Short-Intermediate Municipal Income (retail class) was in the second quartile for the one- and three-year periods and the third quartile for the five-year period. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 17% means that 83% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Fidelity Short-Intermediate Municipal Income Fund
Semiannual Report
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expenses of each of Class A, Class T, Class B, Fidelity Short-Intermediate Municipal Income (retail class), and Institutional Class ranked below its competitive median for 2006, and the total expenses of Class C ranked above its competitive median for 2006. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Semiannual Report
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual 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.
Semiannual 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
Semiannual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
15445 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
123 South Lake Avenue
Pasadena, CA
16995 Bernardo Ctr. Drive
Rancho Bernardo, CA
1220 Roseville Parkway
Roseville, CA
1740 Arden Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
11943 El Camino Real
San Diego, CA
8 Montgomery Street
San Francisco, CA
3793 State Street
Santa Barbara, CA
1200 Wilshire Boulevard
Santa Monica, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 Westview Road
Lone Tree, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
400 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
4671 Town Center Parkway
Jacksonville, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
Palm Beach Gardens, FL
3550 Tamiami Trail, South
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
2465 State Road 7
Wellington, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
875 North Michigan Ave.
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1572 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7315 Wisconsin Avenue
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
Semiannual Report
Michigan
500 E. Eisenhower Pkwy.
Ann Arbor, MI
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
1524 South Lindbergh Blvd.
St. Louis, MO
Nevada
2225 Village Walk Drive
Henderson, NV
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
396 Route 17, North
Paramus, NJ
3518 Route 1 North
Princeton, NJ
530 Broad Street
Shrewsbury, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
980 Madison Avenue
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
200 Fifth Avenue
New York, NY
733 Third Avenue
New York, NY
11 Penn Plaza
New York, NY
2070 Broadway
New York, NY
1075 Northern Blvd.
Roslyn, NY
799 Central Park Avenue
Scarsdale, NY
North Carolina
4611 Sharon Road
Charlotte, NC
7011 Fayetteville Road
Durham, NC
Ohio
3805 Edwards Road
Cincinnati, OH
1324 Polaris Parkway
Columbus, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
7493 SW Bridgeport Road
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4001 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
6560 Fannin Street
Houston, TX
6500 N. MacArthur Blvd.
Irving, TX
6005 West Park Boulevard
Plano, TX
14100 San Pedro
San Antonio, TX
1576 East Southlake Blvd.
Southlake, TX
19740 IH 45 North
Spring, TX
Utah
279 West South Temple
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
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
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
Fidelity Investments Money
Management, Inc.
Fidelity Research & Analysis Company
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-USAN-0807
1.787790.104
(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
Semiannual Report
June 30, 2007
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. | |
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. | |
Board Approval of Investment Advisory Contracts and Management Fees | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://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.
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 holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks are currently on pace to register their fifth-straight year of positive returns, although gains could be trimmed if the U.S. economy continues to slow. 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
Semiannual 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 (January 1, 2007 to June 30, 2007).
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Semiannual Report
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,007.70 | $ 3.48** |
HypotheticalA | $ 1,000.00 | $ 1,021.32 | $ 3.51** |
Class T | |||
Actual | $ 1,000.00 | $ 1,008.40 | $ 3.78 |
HypotheticalA | $ 1,000.00 | $ 1,021.03 | $ 3.81 |
Class B | |||
Actual | $ 1,000.00 | $ 1,005.10 | $ 7.11 |
HypotheticalA | $ 1,000.00 | $ 1,017.70 | $ 7.15 |
Class C | |||
Actual | $ 1,000.00 | $ 1,004.60 | $ 7.60 |
HypotheticalA | $ 1,000.00 | $ 1,017.21 | $ 7.65 |
Short-Intermediate Municipal Income | |||
Actual | $ 1,000.00 | $ 1,009.70 | $ 2.49 |
HypotheticalA | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,008.50 | $ 2.64 |
HypotheticalA | $ 1,000.00 | $ 1,022.17 | $ 2.66 |
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 181/365 (to reflect the one-half year period).
Annualized | |
Class A | .70%** |
Class T | .76% |
Class B | 1.43% |
Class C | 1.53% |
Short-Intermediate Municipal Income | .50% |
Institutional Class | .53% |
** 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 .75% and the expenses paid in the actual and hypothetical examples above would have been $3.73 and $3.76, respectively.
Semiannual Report
Investment Changes
Top Five States as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
New York | 16.1 | 17.0 |
Texas | 11.2 | 11.3 |
Illinois | 9.0 | 9.9 |
California | 8.5 | 7.0 |
New Jersey | 6.6 | 6.2 |
Top Five Sectors as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 40.3 | 41.0 |
Escrowed/Pre-Refunded | 14.7 | 13.4 |
Special Tax | 9.1 | 9.7 |
Electric Utilities | 9.0 | 8.6 |
Health Care | 6.3 | 6.8 |
Weighted Average Maturity as of June 30, 2007 | ||
6 months ago | ||
Years | 3.6 | 3.9 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior figure reflects this change. |
Duration as of June 30, 2007 | ||
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 June 30, 2007 | As of December 31, 2006 | ||||||
![]() | AAA 51.8% | ![]() | AAA 54.6% | ||||
![]() | AA,A 37.8% | ![]() | AA,A 35.9% | ||||
![]() | BBB 6.1% | ![]() | BBB 6.8% | ||||
![]() | BB and Below 0.4% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 3.6% | ![]() | Not Rated 1.7% | ||||
![]() | 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. |
Semiannual Report
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 97.7% | ||||
Principal Amount (000s) | Value (000s) | |||
Alabama - 1.9% | ||||
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09 | $ 1,100 | $ 1,112 | ||
Daphne Spl. Care Facilities Fing. Auth. Rev. Series A, 0% 8/15/28 (Pre-Refunded to 8/15/08 @ 100) (g) | 10,000 | 9,575 | ||
Health Care Auth. for Baptist Health Series 2006 D: | ||||
5% 11/15/08 | 1,475 | 1,489 | ||
5% 11/15/11 | 1,000 | 1,027 | ||
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev.: | ||||
5.25% 10/1/08 (MBIA Insured) (f) | 2,900 | 2,947 | ||
5.75% 10/1/09 (MBIA Insured) (f) | 4,000 | 4,133 | ||
Jefferson County Swr. Rev.: | ||||
Series A, 5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (g) | 3,900 | 4,129 | ||
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (g) | 2,070 | 2,158 | ||
Pell City Spl. Care Facilities Rev. (Noland Health Services, Inc. Proj.) Series A: | ||||
5% 12/1/08 | 400 | 405 | ||
5% 12/1/09 | 500 | 507 | ||
5% 12/1/10 | 855 | 872 | ||
5% 12/1/12 | 750 | 767 | ||
29,121 | ||||
Alaska - 0.6% | ||||
Alaska Student Ln. Corp. Student Ln. Rev. Series A, 5.85% 7/1/13 (AMBAC Insured) (f) | 3,285 | 3,439 | ||
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 (Pre-Refunded to 12/1/10 @ 100) (g) | 2,500 | 2,647 | ||
North Slope Borough Gen. Oblig. Series B, 0% 6/30/08 (MBIA Insured) | 4,240 | 4,083 | ||
10,169 | ||||
Arizona - 1.3% | ||||
Arizona Ctfs. of Prtn. Series B, 5.5% 9/1/10 (FSA Insured) | 9,025 | 9,433 | ||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured) | 1,115 | 1,141 | ||
Maricopa County Unified School District #48 Scottsdale 7.4% 7/1/10 | 3,750 | 4,109 | ||
Nogales Rev. Oblig. (Wastewtr. Systems Proj.) Series 06A, 3.75%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | 3,000 | 2,958 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (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 | $ 663 | ||
Tucson Wtr. Rev. Series A, 5% 7/1/11 (FGIC Insured) | 1,500 | 1,552 | ||
19,856 | ||||
California - 8.5% | ||||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A, 5.25% 5/1/12 (MBIA Insured) | 6,000 | 6,334 | ||
California Econ. Recovery Series A: | ||||
5.25% 1/1/11 | 6,500 | 6,781 | ||
5.25% 7/1/13 | 2,400 | 2,556 | ||
5.25% 7/1/13 (MBIA Insured) | 2,900 | 3,096 | ||
California Gen. Oblig.: | ||||
5% 2/1/09 | 1,640 | 1,672 | ||
5% 2/1/10 | 2,000 | 2,055 | ||
5% 2/1/11 | 4,000 | 4,137 | ||
5% 2/1/11 | 2,525 | 2,612 | ||
5% 10/1/11 | 1,650 | 1,716 | ||
5% 2/1/12 | 1,650 | 1,716 | ||
5% 3/1/12 | 15,000 | 15,611 | ||
5% 9/1/12 | 1,700 | 1,776 | ||
5% 10/1/12 | 12,600 | 13,171 | ||
5.125% 9/1/12 | 1,000 | 1,033 | ||
5.25% 9/1/10 | 18,550 | 19,308 | ||
5.25% 2/1/11 | 6,775 | 7,063 | ||
5.5% 3/1/11 (FGIC Insured) | 3,210 | 3,388 | ||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,525 | 3,714 | ||
5.75% 10/1/08 | 1,085 | 1,112 | ||
6.4% 9/1/08 | 3,075 | 3,169 | ||
6.5% 9/1/10 | 1,760 | 1,894 | ||
California Health Facilities Fing. Auth. Rev. (Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/10 | 1,000 | 1,030 | ||
California State Univ. Rev. 5% 11/1/13 (FSA Insured) (b) | 1,335 | 1,410 | ||
California Statewide Communities Dev. Auth. Rev. (Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c) | 1,400 | 1,376 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev. Series A1, 5% 6/1/12 | 2,570 | 2,639 | ||
Northern California Gas Auth. #1 Gas Proj. Rev. Series A, 5% 7/1/11 | 2,200 | 2,280 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Regents of the Univ. of California Rev.: | ||||
(UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (i) | $ 8,607 | $ 8,653 | ||
Series K: | ||||
5% 5/15/09 | 1,000 | 1,022 | ||
5% 5/15/10 | 4,955 | 5,115 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured) | 3,600 | 2,989 | ||
Western Placer Unified School District Ctfs. of Prtn. (School Facilities Proj.) Series B, 3.625%, tender 12/1/09 (FSA Insured) (c) | 3,170 | 3,145 | ||
133,573 | ||||
Colorado - 0.6% | ||||
Colorado Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.): | ||||
Series E, 5% 11/15/11 | 2,230 | 2,292 | ||
Series F, 5% 11/15/12 | 1,225 | 1,264 | ||
(Volunteers of America Care Proj.) Series A, 5% 7/1/10 | 615 | 617 | ||
Denver City & County Arpt. Rev. Series E, 5% 11/15/08 (XL Cap. Assurance, Inc. Insured) (f) | 5,000 | 5,071 | ||
9,244 | ||||
Connecticut - 1.9% | ||||
Connecticut Gen. Oblig.: | ||||
Series 2001 D, 5.125% 11/15/18 (Pre-Refunded to 11/15/11 @ 100) (g) | 5,000 | 5,233 | ||
Series F, 5% 12/1/11 | 23,100 | 24,062 | ||
29,295 | ||||
District Of Columbia - 0.7% | ||||
District of Columbia Ctfs. of Prtn. 5.25% 1/1/08 (AMBAC Insured) | 935 | 942 | ||
District of Columbia Gen. Oblig.: | ||||
Series A, 5.25% 6/1/09 (FSA Insured) | 1,000 | 1,025 | ||
Series B, 0% 6/1/12 (MBIA Insured) | 3,600 | 2,909 | ||
Metropolitan Washington DC Arpts. Auth. Sys. Rev. Series B, 5.5% 10/1/08 (FGIC Insured) (f) | 6,460 | 6,548 | ||
11,424 | ||||
Florida - 5.4% | ||||
Brevard County School Board Ctfs. of Prtn. Series A, 5.5% 7/1/09 (AMBAC Insured) | 2,775 | 2,859 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Florida - continued | ||||
Citizens Property Ins. Corp. Series 2007 A, 5% 3/1/11 (MBIA Insured) | $ 4,025 | $ 4,159 | ||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys. - Sunbelt Proj.): | ||||
Series A, 5% 11/15/10 | 1,000 | 1,024 | ||
Series B, 5% 11/15/08 | 800 | 812 | ||
Series G: | ||||
5% 11/15/08 | 420 | 426 | ||
5% 11/15/09 | 435 | 443 | ||
5% 11/15/10 | 400 | 410 | ||
5% 11/15/11 | 700 | 720 | ||
Series I, 5%, tender 11/16/09 (c) | 4,700 | 4,785 | ||
3.95%, tender 9/1/12 (c) | 7,550 | 7,405 | ||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.): | ||||
4%, tender 8/1/07 (c) | 11,000 | 10,996 | ||
4.25%, tender 8/1/07 (c)(f) | 6,000 | 5,999 | ||
Lakeland Hosp. Sys. Rev. (Reg'l. Health Systems Proj.) 5% 11/15/11 | 2,545 | 2,614 | ||
Lee County Solid Waste Sys. Rev. 5.25% 10/1/09 (MBIA Insured) (f) | 1,000 | 1,025 | ||
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured) | 1,980 | 2,119 | ||
Miami-Dade County School Board Ctfs. of Prtn. Series B, 5%, tender 5/1/11 (MBIA Insured) (c) | 1,500 | 1,547 | ||
Orange County School Board Ctfs. of Prtn. Series A, 5.375% 8/1/22 (Pre-Refunded to 8/1/07 @ 101) (g) | 3,855 | 3,898 | ||
Orlando Utils. Commission Util. Sys. Rev. 5.25% 7/1/09 | 6,000 | 6,157 | ||
Palm Beach County School Board Ctfs. of Prtn. Series A, 6% 8/1/22 (Pre-Refunded to 8/1/10 @ 101) (g) | 7,020 | 7,486 | ||
Polk County Cap. Impt. Rev.: | ||||
Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c) | 9,000 | 9,405 | ||
5.5% 12/1/11 (FGIC Insured) | 3,470 | 3,680 | ||
Seminole County School Board Ctfs. of Prtn. Series A, 4.5% 7/1/08 (MBIA Insured) | 1,250 | 1,259 | ||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001: | ||||
2.8%, tender 10/1/08, LOC SunTrust Banks, Inc. (c) | 2,000 | 1,974 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Florida - continued | ||||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001: - continued | ||||
3%, tender 10/1/09, LOC SunTrust Banks, Inc. (c) | $ 1,000 | $ 976 | ||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 5% 8/1/08 (FSA Insured) | 1,625 | 1,646 | ||
83,824 | ||||
Georgia - 1.2% | ||||
Carroll County School District 5% 4/1/11 | 8,000 | 8,289 | ||
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1992 B, 8.25% 1/1/11 (MBIA Insured) | 4,105 | 4,659 | ||
Walton County: | ||||
5% 1/1/10 (FGIC Insured) | 2,000 | 2,053 | ||
5% 1/1/11 (FGIC Insured) | 3,000 | 3,106 | ||
18,107 | ||||
Hawaii - 2.4% | ||||
Hawaii Arpt. Sys. Rev. Series 2000 B, 8% 7/1/10 (FGIC Insured) (f) | 3,850 | 4,269 | ||
Hawaii Gen. Oblig. Series CU: | ||||
5.75% 10/1/11 (MBIA Insured) | 3,040 | 3,207 | ||
5.75% 10/1/11 (Pre-Refunded to 10/1/10 @ 100) (g) | 170 | 180 | ||
Honolulu City & County Gen. Oblig. Series B, 8% 10/1/09 | 26,940 | 29,229 | ||
36,885 | ||||
Illinois - 9.0% | ||||
Chicago Board of Ed. (Chicago School Reform Proj.) 6.75% 12/1/10 (AMBAC Insured) | 4,160 | 4,530 | ||
Chicago Gen. Oblig. Series A, 5.25% 1/1/12 (FSA Insured) | 1,000 | 1,050 | ||
Chicago Midway Arpt. Rev. Series B: | ||||
5% 1/1/10 (AMBAC Insured) | 1,225 | 1,255 | ||
5% 1/1/11 (AMBAC Insured) | 3,625 | 3,740 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series A: | ||||
5% 1/1/12 (MBIA Insured) | 1,165 | 1,208 | ||
5.5% 1/1/08 (AMBAC Insured) | 5,000 | 5,043 | ||
5.5% 1/1/10 (AMBAC Insured) (f) | 2,900 | 2,999 | ||
5.5% 1/1/10 (Escrowed to Maturity) (f)(g) | 2,100 | 2,170 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Illinois - continued | ||||
Chicago Park District: | ||||
Series B, 5% 1/1/11 (AMBAC Insured) | $ 5,750 | $ 5,939 | ||
Series C, 5% 1/1/11 (AMBAC Insured) | 2,515 | 2,598 | ||
Chicago Tax Increment Rev. Series 2000 A, 0% 12/1/08 (AMBAC Insured) | 10,000 | 9,470 | ||
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 | 5,008 | ||
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 3.85%, tender 5/1/08 (c)(f) | 2,200 | 2,193 | ||
Hodgkins Tax Increment Rev. 5% 1/1/09 | 1,805 | 1,829 | ||
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 | 6,059 | ||
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) Series 2004 C, 5.5% 10/1/10 | 1,900 | 1,976 | ||
Illinois Edl. Facilities Auth. Revs.: | ||||
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c) | 12,800 | 12,585 | ||
(Field Museum of Natural History Proj.) 4.05%, tender 11/1/11 (c) | 3,250 | 3,224 | ||
(Univ. of Chicago Proj.): | ||||
Series A, 5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (g) | 2,640 | 2,785 | ||
Series B: | ||||
3.1%, tender 7/1/07 (c)(g) | 5 | 5 | ||
3.1%, tender 7/1/07 (c) | 3,995 | 3,995 | ||
4.05%, tender 7/1/09 (c) | 7,000 | 7,013 | ||
Illinois Fin. Auth. Rev. (DePaul Univ. Proj.) Series A: | ||||
5% 10/1/07 | 1,225 | 1,227 | ||
5% 10/1/08 | 1,000 | 1,012 | ||
5% 10/1/11 | 1,165 | 1,198 | ||
Illinois Gen. Oblig.: | ||||
First Series 2001, 5.25% 5/1/11 (FSA Insured) | 1,475 | 1,542 | ||
First Series: | ||||
5.375% 7/1/11 (MBIA Insured) | 6,745 | 7,094 | ||
5.5% 8/1/10 | 1,460 | 1,524 | ||
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (g) | 7,075 | 7,421 | ||
Series A, 5% 10/1/09 | 2,600 | 2,659 | ||
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (g) | 1,000 | 1,047 | ||
Illinois Health Facilities Auth. Rev. (Condell Med. Ctr. Proj.) 5% 5/15/08 | 700 | 703 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Illinois - continued | ||||
Kane & DeKalb Counties Cmnty. Unit School District #301 0% 12/1/10 (AMBAC Insured) | $ 2,000 | $ 1,741 | ||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 (FSA Insured) | 2,270 | 2,407 | ||
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) (g) | 1,600 | 1,713 | ||
Kane, McHenry, Cook & DeKalb Counties Unit School District #300, Carpentersville 5.5% 12/1/13 (Pre-Refunded to 12/1/11 @ 100) (g) | 5,000 | 5,308 | ||
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11 | 2,365 | 2,441 | ||
Madison County Cmnty. United School District #007 Series A, 5% 12/1/11 (FSA Insured) (b) | 2,965 | 3,072 | ||
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev. Series 2002, 0% 6/15/10 (Escrowed to Maturity) (g) | 5,000 | 4,441 | ||
Quincy Hosp. Rev. (Blessing Hosp. Proj.) 5% 11/15/10 | 1,285 | 1,310 | ||
Rosemont Gen. Oblig.: | ||||
Series 3, 0% 12/1/07 (FGIC Insured) | 625 | 615 | ||
Series A, 0% 12/1/11 (FGIC Insured) | 3,695 | 3,089 | ||
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Proj.) 5% 8/15/11 (AMBAC Insured) | 1,360 | 1,409 | ||
Will County School District #122 Series B, 0% 11/1/08 (FSA Insured) | 1,280 | 1,217 | ||
140,864 | ||||
Indiana - 3.3% | ||||
Carmel High School Bldg. Corp. 5% 1/10/11 (FSA Insured) | 1,000 | 1,033 | ||
Ctr. Grove 2000 Bldg. Corp.: | ||||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,785 | 1,888 | ||
5.5% 7/15/18 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,885 | 1,994 | ||
Hamilton Southeastern Consolidated School Bldg. Corp.: | ||||
Series A: | ||||
5% 1/10/10 (FSA Insured) | 1,750 | 1,795 | ||
5.25% 7/10/11 (FSA Insured) | 2,295 | 2,401 | ||
5.25% 1/10/12 (FSA Insured) | 1,355 | 1,423 | ||
5% 1/15/10 (FSA Insured) | 1,835 | 1,882 | ||
5% 1/15/11 (FSA Insured) | 1,910 | 1,974 | ||
5% 1/15/12 (FSA Insured) | 1,990 | 2,070 | ||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,855 | 1,962 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Indiana - continued | ||||
Indiana Univ. Student Fee Revs. Series H, 0% 8/1/09 (AMBAC Insured) | $ 3,875 | $ 3,573 | ||
Indianapolis Resource Recovery Rev. (Ogden Martin Sys., Inc. Proj.) 6.75% 12/1/07 (AMBAC Insured) | 3,000 | 3,029 | ||
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured) | 1,405 | 1,435 | ||
Logansport High School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,000 | 1,038 | ||
5.25% 7/15/11 (MBIA Insured) | 1,020 | 1,064 | ||
5.25% 1/15/12 (MBIA Insured) | 1,045 | 1,093 | ||
5.25% 7/15/12 (MBIA Insured) | 1,075 | 1,129 | ||
Mount Vernon of Hancock County Multi-School Corp. Series B: | ||||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,605 | 1,698 | ||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,695 | 1,793 | ||
Muncie School Bldg. Corp. 5.25% 7/10/12 (MBIA Insured) | 1,585 | 1,672 | ||
New Albany Floyd County Independent School Bldg. Corp. 5% 1/15/11 (FSA Insured) | 1,000 | 1,033 | ||
Rockport Poll. Cont. Rev. (AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (c) | 1,600 | 1,606 | ||
Saint Joseph County Ind. Edl. Facilities Rev. (Univ. of Notre Dame Du Lac Proj.) 2.5%, tender 12/3/07 (c) | 10,000 | 9,934 | ||
West Clark 2000 School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,065 | 1,107 | ||
5.25% 7/15/11 (MBIA Insured) | 1,125 | 1,175 | ||
5.25% 1/15/12 (MBIA Insured) | 1,150 | 1,206 | ||
52,007 | ||||
Kansas - 0.2% | ||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series A, 4.75%, tender 10/1/07 (c) | 2,400 | 2,404 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L: | ||||
5.25% 11/15/10 | 545 | 562 | ||
5.25% 11/15/12 | 680 | 709 | ||
3,675 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Kentucky - 0.2% | ||||
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (f) | $ 1,185 | $ 1,205 | ||
Owensboro Elec. Lt. & Pwr. Rev. Series B, 0% 1/1/09 (AMBAC Insured) | 2,000 | 1,885 | ||
3,090 | ||||
Louisiana - 0.5% | ||||
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. | 1,000 | 1,040 | ||
Ernest N. Morial-New Orleans Exhibit Hall Auth. Spl. Tax Series A, 5.25% 7/15/11 (AMBAC Insured) | 2,060 | 2,146 | ||
Louisiana Military Dept. Custody Receipts 5% 8/1/10 | 1,530 | 1,559 | ||
Louisiana Offshore Term. Auth. Deepwater Port Rev. (LOOP LLC Proj.) Series 2003 D, 4%, tender 9/1/08 (c) | 2,700 | 2,700 | ||
7,445 | ||||
Maryland - 0.3% | ||||
Baltimore Proj. Rev. Wtr. & Swr. Rev. Series D: | ||||
5% 7/1/10 (AMBAC Insured) | 690 | 711 | ||
5% 7/1/11 (AMBAC Insured) | 1,985 | 2,061 | ||
Howard County Retirement Cmnty. Rev. (Vantage House Proj.) Series A, 4.5% 4/1/09 | 605 | 604 | ||
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured) | 1,535 | 1,588 | ||
4,964 | ||||
Massachusetts - 5.2% | ||||
Massachusetts Bay Trans. Auth. Series A, 7% 3/1/09 | 6,880 | 7,218 | ||
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. Series A, 5% 1/1/11 | 1,000 | 1,027 | ||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C, 5.875% 8/1/08 | 1,630 | 1,655 | ||
Massachusetts Fed. Hwy.: | ||||
Series 2000 A, 5.75% 6/15/13 | 3,000 | 3,172 | ||
Series B, 5.125% 12/15/14 (Pre-Refunded to 12/15/08 @ 101) (g) | 2,775 | 2,850 | ||
Massachusetts Gen. Oblig.: | ||||
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (g) | 2,570 | 2,685 | ||
Series 2000 A: | ||||
5.8% 2/1/17 (Pre-Refunded to 2/1/10 @ 101) (g) | 5,000 | 5,277 | ||
6% 2/1/10 | 2,500 | 2,624 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Massachusetts - continued | ||||
Massachusetts Gen. Oblig.: - continued | ||||
Series 2000 B, 5.7% 6/1/19 (Pre-Refunded to 6/1/10 @ 100) (g) | $ 6,280 | $ 6,589 | ||
Series 2001 A, 5.5% 1/1/11 | 5,000 | 5,244 | ||
Series 2003 C, 5.5% 10/1/10 (MBIA Insured) | 1,130 | 1,184 | ||
Series C: | ||||
5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (g) | 2,495 | 2,636 | ||
5.5% 11/1/10 (FSA Insured) | 10,000 | 10,490 | ||
Massachusetts Health & Edl. Facilities Auth. Rev. (Berkshire Health Sys., Inc. Proj.) Series F, 5% 10/1/08 | 2,720 | 2,753 | ||
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series A, 5.5% 1/1/12 (AMBAC Insured) (f) | 1,000 | 1,048 | ||
Massachusetts Wtr. Resources Auth. Series A: | ||||
5.75% 8/1/30 (FGIC Insured) (Pre-Refunded to 8/1/10 @ 101) (g) | 19,000 | 20,171 | ||
5.75% 8/1/39 (Pre-Refunded to 8/1/10 @ 101) (g) | 5,000 | 5,308 | ||
81,931 | ||||
Michigan - 1.7% | ||||
Detroit City School District Series A, 5.5% 5/1/11 (FSA Insured) | 1,200 | 1,265 | ||
Detroit Gen. Oblig. 5% 4/1/09 (MBIA Insured) | 10,620 | 10,835 | ||
Detroit Swr. Disp. Rev.: | ||||
Series A, 5.75% 7/1/26 (Pre-Refunded to 1/1/10 @ 101) (g) | 2,000 | 2,103 | ||
4.184% 7/1/32 (FSA Insured) (c) | 4,200 | 4,200 | ||
Michigan Bldg. Auth. Rev. (Facilities Prog.) Series I, 5.5% 10/15/09 | 2,705 | 2,796 | ||
Michigan Hosp. Fin. Auth. Rev. (Oakwood Hosp. Proj.) Series A, 5% 7/15/11 | 2,500 | 2,567 | ||
Troy School District 5% 5/1/11 (MBIA Insured) | 1,000 | 1,037 | ||
Wayne County Cmnty. College (College Facilities Impt. Proj.) 5.25% 7/1/09 (FGIC Insured) | 1,220 | 1,253 | ||
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured) | 1,225 | 1,261 | ||
27,317 | ||||
Minnesota - 0.2% | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): | ||||
5.25% 12/1/08 | 1,200 | 1,217 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Minnesota - continued | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): - - continued | ||||
5.25% 12/1/10 | $ 500 | $ 516 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.): | ||||
5% 5/15/09 | 250 | 253 | ||
5% 5/15/10 | 200 | 204 | ||
5% 5/15/11 | 300 | 307 | ||
Saint Paul Port Auth. Lease Rev. (HealthEast Midway Campus Proj.) Series 2003 A, 5% 5/1/10 | 480 | 479 | ||
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured) | 940 | 974 | ||
3,950 | ||||
Mississippi - 0.4% | ||||
Mississippi Bus. Fin. Corp. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.4%, tender 3/1/11 (c)(f) | 1,100 | 1,091 | ||
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (f) | 1,190 | 1,204 | ||
Mississippi Hosp. Equip. & Facilities Auth.: | ||||
(Mississippi Baptist Med. Ctr. Proj.) Series 2007 A: | ||||
5% 8/15/09 | 1,000 | 1,015 | ||
5% 8/15/11 | 1,000 | 1,025 | ||
(South Central Reg'l. Med. Ctr. Proj.) 5% 12/1/10 | 1,240 | 1,264 | ||
5,599 | ||||
Missouri - 0.9% | ||||
Bi-State Dev. Agcy. Rev. 3.95%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | 6,600 | 6,590 | ||
Fenton Tax Increment Rev. (Gravois Bluffs Redev. Proj.) 5% 4/1/11 | 1,430 | 1,457 | ||
Kansas City School District Bldg. Corp. Rev. (School District Elementary School Proj.) Series B, 5% 2/1/11 (FGIC Insured) | 1,850 | 1,915 | ||
Lees Summit Indl. Dev. Auth. Sr. Living Facilities Rev. (John Knox Village Proj.) Series A, 5% 8/15/11 | 1,485 | 1,509 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Missouri - continued | ||||
Saint Louis County Indl. Dev. Auth. Sr. Living Facilities Rev. (Friendship Village West County Proj.) Series A, 5% 9/1/11 (b) | $ 1,000 | $ 1,013 | ||
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) (g) | 1,050 | 1,127 | ||
13,611 | ||||
Montana - 0.3% | ||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (c) | 4,000 | 4,080 | ||
Nebraska - 0.4% | ||||
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.) Series A, 5% 12/1/11 | 6,500 | 6,720 | ||
Nevada - 2.4% | ||||
Clark County Arpt. Rev. Series C: | ||||
5% 7/1/08 (AMBAC Insured) (f) | 2,215 | 2,239 | ||
5% 7/1/09 (AMBAC Insured) (f) | 2,700 | 2,747 | ||
5% 7/1/10 (AMBAC Insured) (f) | 1,225 | 1,254 | ||
5% 7/1/11 (AMBAC Insured) (f) | 1,790 | 1,841 | ||
Clark County Hwy. Impt. Rev. (Motor Vehicle Fuel Tax) 5% 7/1/11 (AMBAC Insured) | 3,230 | 3,349 | ||
Clark County School District: | ||||
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (g) | 1,600 | 1,681 | ||
Series C, 5% 6/15/10 (MBIA Insured) | 1,075 | 1,107 | ||
Series D, 5% 6/15/09 (MBIA Insured) | 13,890 | 14,189 | ||
Series F, 5.375% 6/15/11 (FSA Insured) | 4,090 | 4,295 | ||
Henderson Health Care Facilities Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08 | 1,100 | 1,111 | ||
Lyon Co. School District Gen. Oblig. 5% 6/1/09 | 695 | 710 | ||
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured) | 2,410 | 2,480 | ||
37,003 | ||||
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)(f) | 2,500 | 2,457 | ||
3.5%, tender 2/1/09 (c)(f) | 2,000 | 1,979 | ||
4,436 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
New Jersey - 5.6% | ||||
Camden County Impt. Auth. Rev. (Cooper Health Sys. Obligated Group Proj.) Series B, 5.25% 2/15/09 | $ 1,250 | $ 1,264 | ||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev. 5% 1/1/09 (AMBAC Insured) | 1,000 | 1,016 | ||
Elizabeth Gen. Oblig. 5.25% 8/15/09 (MBIA Insured) | 1,225 | 1,260 | ||
Garden State Preservation Trust Open Space & Farmland Preservation Series B: | ||||
6.25% 11/1/09 (MBIA Insured) | 4,000 | 4,211 | ||
6.375% 11/1/11 (MBIA Insured) | 7,470 | 8,167 | ||
New Jersey Tobacco Settlement Fing. Corp. 4.375% 6/1/19 (Pre-Refunded to 6/1/13 @ 100) (g) | 2,075 | 2,087 | ||
New Jersey Tpk. Auth. Tpk. Rev. Series A: | ||||
5.75% 1/1/18 (Pre-Refunded to 1/1/10 @ 100) (g) | 3,215 | 3,356 | ||
6% 1/1/11 (MBIA Insured) | 21,785 | 23,227 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series B: | ||||
5.25% 12/15/10 (FGIC Insured) | 4,550 | 4,742 | ||
6.5% 6/15/11 (MBIA Insured) | 5,000 | 5,456 | ||
Series C, 5.5% 12/15/10 (FSA Insured) | 25,000 | 26,252 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (g) | 7,000 | 7,307 | ||
88,345 | ||||
New Jersey/Pennsylvania - 0.3% | ||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5% 7/1/09 | 5,170 | 5,268 | ||
New Mexico - 0.1% | ||||
Farmington Poll. Cont. Rev. Series B, 3.55%, tender 4/1/10 (FGIC Insured) (c) | 1,900 | 1,876 | ||
New York - 16.1% | ||||
Grand Central District Mgmt. Assoc., Inc.: | ||||
5% 1/1/10 | 1,200 | 1,227 | ||
5% 1/1/12 | 1,175 | 1,217 | ||
Metropolitan Trans. Auth. Commuter Facilities Rev. | 3,635 | 3,744 | ||
New York City Gen. Oblig.: | ||||
Series 1996 B, 6.5% 8/15/09 | 3,425 | 3,600 | ||
Series 1997 H, 6% 8/1/12 (FGIC Insured) | 1,300 | 1,418 | ||
Series 2000 A, 6.5% 5/15/11 | 155 | 167 | ||
Series 2002 G, 5.5% 8/1/10 | 2,720 | 2,838 | ||
Series 2003 F, 5.5% 12/15/11 | 8,315 | 8,808 | ||
Series 2004 G, 5% 8/1/09 | 8,000 | 8,170 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
New York - continued | ||||
New York City Gen. Oblig.: - continued | ||||
Series 2005 C, 5% 8/1/12 | $ 19,770 | $ 20,595 | ||
Series 2005 D, 5% 8/1/12 | 4,925 | 5,131 | ||
Series 2005 G, 5.625% 8/1/13 (MBIA Insured) | 5,075 | 5,440 | ||
Series 2005 K: | ||||
5% 8/1/11 | 7,120 | 7,377 | ||
5% 8/1/12 | 4,360 | 4,542 | ||
Series 2005 O, 5% 6/1/12 | 7,500 | 7,804 | ||
Series A, 5.25% 11/1/14 (MBIA Insured) | 600 | 635 | ||
Series B, 5.75% 8/1/14 | 1,000 | 1,074 | ||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 1,000 | 1,051 | ||
Subseries 2005 F1, 5% 9/1/15 | 3,560 | 3,750 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. 6% 6/15/33 (MBIA Insured) (Pre-Refunded to 6/15/10 @ 101) (g) | 10,000 | 10,636 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 E, 5% 2/1/09 | 2,035 | 2,072 | ||
Series A: | ||||
5.5% 11/1/26 (a) | 3,500 | 3,701 | ||
6% 11/1/28 (a) | 44,300 | 47,615 | ||
Series B, 5.25% 2/1/29 (a) | 3,100 | 3,224 | ||
New York Counties Tobacco Trust I Series B, 6.5% 6/1/35 (Pre-Refunded to 6/1/10 @ 101) (g) | 5,900 | 6,380 | ||
New York Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.): | ||||
Series A: | ||||
5.75% 7/1/13 | 3,500 | 3,724 | ||
5.75% 7/1/13 (AMBAC Insured) | 1,000 | 1,066 | ||
Series C, 7.5% 7/1/10 | 12,985 | 13,641 | ||
Series B, 5.25%, tender 5/15/12 (c) | 13,000 | 13,641 | ||
New York Metropolitan Transit Auth. Rev. Series 2005 C: | ||||
5% 11/15/10 | 2,000 | 2,064 | ||
5% 11/15/11 | 2,750 | 2,856 | ||
New York Urban Dev. Corp. Rev. 5% 1/1/12 | 5,000 | 5,199 | ||
Tobacco Settlement Asset Securitization Corp. Series 1: | ||||
5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (g) | 6,760 | 7,064 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (g) | 1,200 | 1,261 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (g) | 2,490 | 2,617 | ||
6% 7/15/20 (Pre-Refunded to 7/15/09 @ 101) (g) | 2,280 | 2,396 | ||
6% 7/15/21 (Pre-Refunded to 7/15/09 @ 101) (g) | 2,310 | 2,428 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2004 B1, 5% 6/1/09 | 3,800 | 3,884 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
New York - continued | ||||
Tobacco Settlement Fing. Corp.: - continued | ||||
Series A1: | ||||
5% 6/1/10 | $ 1,875 | $ 1,927 | ||
5.25% 6/1/12 | 150 | 150 | ||
5.25% 6/1/13 | 17,500 | 17,683 | ||
5.5% 6/1/14 | 2,700 | 2,771 | ||
Series C1: | ||||
5.5% 6/1/15 | 1,300 | 1,349 | ||
5.5% 6/1/17 | 4,200 | 4,401 | ||
252,338 | ||||
New York & New Jersey - 0.6% | ||||
Port Auth. of New York & New Jersey: | ||||
124th Series, 5% 8/1/13 (FGIC Insured) (f) | 1,200 | 1,221 | ||
127th Series, 5% 12/15/08 (AMBAC Insured) (f) | 3,510 | 3,567 | ||
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) (f) | 4,100 | 4,543 | ||
9,331 | ||||
North Carolina - 0.6% | ||||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | ||||
Series 1993 B, 7% 1/1/08 (MBIA Insured) | 600 | 609 | ||
Series A, 5.5% 1/1/10 | 3,000 | 3,095 | ||
Series C, 5% 1/1/08 | 1,190 | 1,196 | ||
Series D, 5.375% 1/1/10 | 3,730 | 3,837 | ||
8,737 | ||||
North Dakota - 0.1% | ||||
Ward County Health Care Facility Rev. 5% 7/1/10 | 1,595 | 1,622 | ||
Ohio - 1.1% | ||||
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A, 5% 1/1/11 | 1,000 | 1,021 | ||
Cleveland Pub. Pwr. Sys. Rev.: | ||||
Series A, 0% 11/15/09 (MBIA Insured) | 1,200 | 1,091 | ||
0% 11/15/09 (Escrowed to Maturity) (g) | 1,050 | 958 | ||
Ohio Gen. Oblig. Series 2003 D, 2.45%, tender 9/14/07 (c) | 12,300 | 12,261 | ||
Univ. of Cincinnati Gen. Receipts Series A, 5.5% 6/1/09 (FGIC Insured) | 2,000 | 2,061 | ||
17,392 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Oklahoma - 1.2% | ||||
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (g) | $ 1,000 | $ 836 | ||
Grand River Dam Auth. Rev. 6.25% 6/1/11 (AMBAC Insured) | 8,940 | 9,664 | ||
Norman Reg'l. Hosp. Auth. Hosp. Rev. 5% 9/1/12 (Radian Asset Assurance, Inc. Insured) | 1,035 | 1,069 | ||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 5% 2/15/13 | 1,150 | 1,192 | ||
Tulsa County Indl. Auth. Cap. Impts. Rev. Series B, 5.25% 1/1/09 (FSA Insured) | 5,245 | 5,349 | ||
18,110 | ||||
Oregon - 0.5% | ||||
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured) | 1,210 | 1,247 | ||
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B: | ||||
5% 5/1/09 (FSA Insured) | 600 | 612 | ||
5% 5/1/11 (FSA Insured) | 1,000 | 1,037 | ||
Tri-County Metropolitan Trans. District Rev. 5% 5/1/11 (MBIA Insured) | 5,000 | 5,186 | ||
8,082 | ||||
Pennsylvania - 2.9% | ||||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (MBIA Insured) (f) | 1,300 | 1,379 | ||
Allegheny County Hosp. Dev. Auth. Rev. (West Penn Allegheny Health Sys. Proj.) Series A, 5% 11/15/10 | 2,765 | 2,788 | ||
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 | 4,471 | ||
Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured) | 1,495 | 1,607 | ||
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.) Series B: | ||||
5% 12/15/09 | 2,565 | 2,600 | ||
5% 12/15/11 | 2,835 | 2,897 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(f) | 10,000 | 9,850 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(f) | 2,100 | 2,097 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Pennsylvania Health Sys. Proj.) Series A, 5% 8/15/08 | 2,000 | 2,024 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Pennsylvania - continued | ||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: - continued | ||||
(UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09 | $ 1,750 | $ 1,796 | ||
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured) | 2,750 | 2,855 | ||
Philadelphia Muni. Auth. Rev. Series B, 5.25% 11/15/11 (FSA Insured) | 3,400 | 3,563 | ||
Philadelphia School District: | ||||
Series 2005 D, 5.25% 6/1/12 (FSA Insured) | 1,465 | 1,540 | ||
Series B, 5% 4/1/11 (AMBAC Insured) | 2,160 | 2,235 | ||
Pittsburgh School District Series A, 5% 9/1/09 (MBIA Insured) | 1,600 | 1,634 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) (g) | 2,355 | 1,915 | ||
45,251 | ||||
Puerto Rico - 1.4% | ||||
Puerto Rico Convention Ctr. District Auth. Hotel Occupancy Tax Rev. Series 2006 A, 5% 7/1/10 | 2,000 | 2,046 | ||
Puerto Rico Govt. Dev. Bank Series B: | ||||
5% 12/1/10 | 8,000 | 8,203 | ||
5% 12/1/12 | 1,000 | 1,034 | ||
Univ. of Puerto Rico: | ||||
Series 06P, 5% 6/1/11 | 5,760 | 5,926 | ||
Series Q, 5% 6/1/11 | 4,825 | 4,964 | ||
22,173 | ||||
Rhode Island - 0.2% | ||||
Providence Spl. Oblig. Series 2005 E: | ||||
4% 6/1/08 (Radian Asset Assurance, Inc. Insured) | 1,000 | 1,001 | ||
5% 6/1/09 (Radian Asset Assurance, Inc. Insured) | 1,315 | 1,337 | ||
5% 6/1/10 (Radian Asset Assurance, Inc. Insured) | 1,180 | 1,206 | ||
3,544 | ||||
South Carolina - 1.1% | ||||
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A: | ||||
5% 8/15/07 | 1,700 | 1,702 | ||
5% 8/15/08 | 1,690 | 1,702 | ||
Greenville County Pub. Facilities Corp. Ctfs. of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 (AMBAC Insured) | 1,450 | 1,492 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
South Carolina - continued | ||||
Greenville County School District Installment Purp. Rev. 5% 12/1/10 | $ 1,455 | $ 1,496 | ||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5% 12/1/09 | 550 | 562 | ||
Piedmont Muni. Pwr. Agcy. Elec. Rev. 5.6% 1/1/09 (MBIA Insured) | 2,345 | 2,404 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2005 B, 5% 1/1/10 (MBIA Insured) | 3,000 | 3,076 | ||
Series A, 5.5% 1/1/11 (MBIA Insured) | 3,000 | 3,136 | ||
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured) | 1,000 | 1,021 | ||
16,591 | ||||
Tennessee - 1.2% | ||||
Clarksville Natural Gas Acquisition Corp. Gas Rev. 5% 12/15/09 | 7,500 | 7,673 | ||
Elizabethton Health & Edl. Facilities Board Rev. (First Mtg. Prog.) 6% 7/1/11 (MBIA Insured) | 2,005 | 2,145 | ||
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured) | 2,000 | 2,058 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A, 4.5% 9/1/09 (MBIA Insured) | 1,685 | 1,706 | ||
Metropolitan Govt. Nashville & Series A, 5.25% 10/15/09 | 3,795 | 3,908 | ||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured) | 1,200 | 1,226 | ||
18,716 | ||||
Texas - 10.2% | ||||
Alief Independent School District Series 2004 B, 5% 2/15/10 | 1,500 | 1,539 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B: | ||||
6% 1/1/12 | 500 | 522 | ||
6% 1/1/13 | 1,270 | 1,335 | ||
6% 1/1/14 | 1,420 | 1,501 | ||
Austin Elec. Util. Sys. Rev.: | ||||
5% 11/15/10 (FSA Insured) (b) | 3,000 | 3,092 | ||
5% 11/15/11 (FSA Insured) (b) | 4,000 | 4,148 | ||
Austin Util. Sys. Rev. Series 1992 A: | ||||
0% 11/15/09 (MBIA Insured) | 5,130 | 4,664 | ||
0% 11/15/10 (MBIA Insured) | 5,300 | 4,621 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Texas - continued | ||||
Bexar County Series A: | ||||
5% 6/15/09 (FSA Insured) | $ 2,615 | $ 2,671 | ||
5% 6/15/10 (FSA Insured) | 1,000 | 1,029 | ||
Birdville Independent School District 5% 2/15/10 | 1,300 | 1,334 | ||
Brownsville Independent School District 5% 8/15/11 | 1,430 | 1,483 | ||
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured) | 1,500 | 1,583 | ||
College Station Independent School District 5% 2/15/10 | 1,000 | 1,026 | ||
Denton County Gen. Oblig. 5% 7/15/11 (FSA Insured) | 3,065 | 3,177 | ||
Fort Bend Independent School District 5%, tender 8/15/09 (c) | 5,000 | 5,094 | ||
Fort Worth Independent School District 5% 2/15/12 | 1,500 | 1,559 | ||
Frisco Gen. Oblig. Series 2003 A, 5% 2/15/10 (FSA Insured) | 1,710 | 1,754 | ||
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A, 5.5% 2/15/09 | 3,710 | 3,799 | ||
Houston Cmnty. College Sys. Rev.: | ||||
5.25% 4/15/11 (FSA Insured) | 3,030 | 3,162 | ||
5.25% 4/15/12 (FSA Insured) | 2,000 | 2,105 | ||
Houston Util. Sys. Rev. Series A: | ||||
5.25% 5/15/10 (MBIA Insured) | 2,835 | 2,935 | ||
5.25% 11/15/11 (FSA Insured) | 4,430 | 4,651 | ||
Katy Independent School District Series A, 5.25% 2/15/12 | 2,000 | 2,099 | ||
Lower Colorado River Auth. Rev.: | ||||
0% 1/1/09 (Escrowed to Maturity) (g) | 3,000 | 2,830 | ||
5.25% 1/1/15 (Pre-Refunded to 1/1/11 @ 100) (g) | 5,000 | 5,205 | ||
Lubbock Gen. Oblig.: | ||||
(Wtrwks. Sys. Surplus Proj.) 5% 2/15/11 (FSA Insured) | 2,465 | 2,546 | ||
5% 2/15/10 (MBIA Insured) | 1,845 | 1,893 | ||
Lubbock Health Facilities Dev. Corp. Rev. (Carillon, Inc. Proj.) Series A, 6.5% 7/1/29 (Pre-Refunded to 7/1/09 @ 102) (g) | 4,800 | 5,130 | ||
Magnolia Independent School District 8% 8/15/11 (FGIC Insured) | 1,210 | 1,389 | ||
Montgomery County Gen. Oblig. Series B, 5%, tender 9/1/10 (FSA Insured) (c) | 1,300 | 1,336 | ||
North East Texas Independent School District 7% 2/1/11 (Pre-Refunded to 2/1/10 @ 100) (g) | 3,600 | 3,869 | ||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C, 5%, tender 7/1/08 (c)(g) | 45 | 46 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Texas - continued | ||||
Northside Independent School District Series A, 3.78%, tender 6/1/09 (c) | $ 5,000 | $ 4,998 | ||
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series A, 5.5%, tender 11/1/11 (c) | 1,000 | 1,016 | ||
San Angelo Wtrwks. & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured) | 1,630 | 1,675 | ||
San Antonio Elec. & Gas Sys. Rev.: | ||||
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (g) | 5,000 | 5,219 | ||
Series B: | ||||
0% 2/1/09 (Escrowed to Maturity) (g) | 2,500 | 2,351 | ||
0% 2/1/10 (Escrowed to Maturity) (g) | 14,000 | 12,622 | ||
San Antonio Muni. Drainage Util. Sys. Rev. 5.25% 2/1/12 (MBIA Insured) | 1,545 | 1,624 | ||
San Antonio Wtr. Sys. Rev. 5% 5/15/10 (FGIC Insured) | 1,020 | 1,049 | ||
Socorro Independent School District 5% 8/15/09 | 2,070 | 2,115 | ||
Spring Branch Independent School District: | ||||
5.375% 2/1/14 | 1,090 | 1,138 | ||
5.375% 2/1/14 (Pre-Refunded to 2/1/11 @ 100) (g) | 1,700 | 1,779 | ||
Texas Gen. Oblig.: | ||||
(College Student Ln. Prog.) 5% 8/1/11 (f) | 3,000 | 3,054 | ||
Series C, 0% 4/1/09 (Escrowed to Maturity) (g) | 2,320 | 2,167 | ||
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Proj.) Series A, 5% 2/1/10 (AMBAC Insured) | 1,055 | 1,083 | ||
Texas Tech Univ. Revs. Ninth Series, 5% 2/15/11 (AMBAC Insured) | 1,250 | 1,292 | ||
Texas Wtr. Dev. Board Rev. Series B, 5% 7/15/11 | 2,780 | 2,882 | ||
Travis County Gen. Oblig. 5.25% 3/1/12 | 4,125 | 4,336 | ||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.) 5% 7/1/07 | 1,000 | 1,000 | ||
Univ. of Texas Univ. Revs.: | ||||
(Fing. Sys. Proj.) Series A, 5.5% 8/15/09 | 1,115 | 1,151 | ||
Series B: | ||||
5% 8/15/09 | 11,255 | 11,505 | ||
5.25% 8/15/11 | 5,025 | 5,261 | ||
Wichita Falls Independent School District 0% 2/1/10 | 2,325 | 2,091 | ||
Ysleta Independent School District 0% 8/15/09 | 4,065 | 3,730 | ||
160,265 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Utah - 1.3% | ||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | ||||
0% 10/1/11 (AMBAC Insured) | $ 3,800 | $ 3,178 | ||
0% 10/1/12 (AMBAC Insured) | 3,800 | 3,038 | ||
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 | 1,763 | ||
Utah Gen. Oblig. Series 2006 B, 5.375% 7/1/10 | 9,475 | 9,868 | ||
20,718 | ||||
Virginia - 0.1% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.05%, tender 4/1/08 (c)(f) | 1,600 | 1,598 | ||
Washington - 2.4% | ||||
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured) | 1,190 | 1,234 | ||
Clark County Pub. Util. District #1 Elec. Rev.: | ||||
5% 1/1/11 (MBIA Insured) | 1,680 | 1,735 | ||
5.25% 1/1/11 (FSA Insured) | 1,935 | 2,014 | ||
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured) | 1,740 | 1,803 | ||
Pierce County Gen. Oblig. 5.75% 8/1/13 (Pre-Refunded to 8/1/10 @ 100) (g) | 1,155 | 1,215 | ||
Port of Seattle Rev. Series D, 5.75% 11/1/15 | 3,640 | 3,880 | ||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/09 (FGIC Insured) | 1,000 | 1,012 | ||
Snohomish County School District #2, Everett: | ||||
5% 6/1/09 (FSA Insured) | 1,045 | 1,067 | ||
5% 6/1/10 (FSA Insured) | 1,000 | 1,029 | ||
Vancouver Wtr. & Swr. Rev. 5.25% 6/1/11 | 1,000 | 1,045 | ||
Washington Gen. Oblig. Series A: | ||||
5% 7/1/11 (FGIC Insured) | 1,000 | 1,038 | ||
5.5% 7/1/11 (Pre-Refunded to 7/1/10 @ 100) (g) | 3,500 | 3,653 | ||
5.625% 7/1/25 (Pre-Refunded to 7/1/10 @ 100) (g) | 13,000 | 13,619 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev. Series A, 5.75% 7/1/08 | 3,000 | 3,056 | ||
37,400 | ||||
Wisconsin - 0.9% | ||||
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured) | 3,370 | 2,923 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Wisconsin - continued | ||||
Wisconsin Gen. Oblig. Series 1, 5% 5/1/10 | $ 2,500 | $ 2,571 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Marshfield Clinic Proj.): | ||||
Series 2006 A, 5% 2/15/13 | 875 | 893 | ||
Series B, 6.25% 2/15/10 | 1,015 | 1,062 | ||
(Wheaton Franciscan Services Proj.): | ||||
5% 8/15/11 | 1,315 | 1,338 | ||
5.75% 8/15/11 | 1,000 | 1,050 | ||
(Wheaton Franciscan Svcs., Inc. Proj.) Series A: | ||||
5% 8/15/09 | 1,765 | 1,783 | ||
5% 8/15/10 | 1,870 | 1,897 | ||
13,517 | ||||
TOTAL MUNICIPAL BONDS (Cost $1,544,212) | 1,529,064 | |||
Municipal Notes - 2.0% | ||||
New Jersey - 1.0% | ||||
New Jersey Tpk. Auth. Tpk. Rev. Participating VRDN | 16,000 | 16,000 | ||
Texas - 1.0% | ||||
San Antonio Elec. & Gas Sys. Rev. Participating VRDN | 16,000 | 16,000 | ||
TOTAL MUNICIPAL NOTES (Cost $31,992) | 32,000 | |||
Money Market Funds - 0.3% | ||||
Shares | ||||
Fidelity Municipal Cash Central Fund, 3.81% (d)(e) | 4,869,900 | 4,870 | ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $1,581,074) | 1,565,934 | |||
NET OTHER ASSETS - 0.0% | (746) | |||
NET ASSETS - 100% | $ 1,565,188 |
Swap Agreements | |||||
Expiration Date | Notional Amount (000s) | Value (000s) | |||
Interest Rate Swaps | |||||
Receive quarterly a fixed rate equal to 3.4% and pay quarterly a floating rate based on BMA Municipal Swap Index with Merrill Lynch, Inc. | June 2012 | $ 44,000 | $ (599) | ||
Receive quarterly a floating rate based on BMA Municipal Swap Index and pay quarterly a fixed rate equal to 3.737% with Citibank | June 2018 | 20,000 | 477 | ||
$ 64,000 | $ (122) |
Security Type Abbreviation |
VRDN | - | VARIABLE RATE DEMAND NOTE |
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) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(e) 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. |
(f) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(g) Security collateralized by an amount sufficient to pay interest and principal. |
(h) Provides evidence of ownership in one or more underlying municipal bonds. |
(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 $8,653,000 or 0.6% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Regents of the Univ. of California Rev. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 8,607 |
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 | $ 9 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 40.3% |
Escrowed/Pre-Refunded | 14.7% |
Special Tax | 9.1% |
Electric Utilities | 9.0% |
Health Care | 6.3% |
Transportation | 6.2% |
Education | 5.7% |
Others* (individually less than 5%) | 8.7% |
100.0% |
* Includes cash equivalents and net |
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.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | June 30, 2007 (Unaudited) | |
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $1,576,204) | $ 1,561,064 | |
Fidelity Central Funds (cost $4,870) | 4,870 | |
Total Investments (cost $1,581,074) | $ 1,565,934 | |
Cash | 49 | |
Receivable for fund shares sold | 1,161 | |
Interest receivable | 21,219 | |
Distributions receivable from Fidelity Central Funds | 9 | |
Prepaid expenses | 4 | |
Other receivables | 309 | |
Total assets | 1,588,685 | |
Liabilities | ||
Payable for investments purchased | $ 7,000 | |
Delayed delivery | 12,829 | |
Payable for fund shares redeemed | 1,207 | |
Distributions payable | 1,390 | |
Swap agreements, at value | 122 | |
Accrued management fee | 475 | |
Distribution fees payable | 10 | |
Other affiliated payables | 433 | |
Other payables and accrued expenses | 31 | |
Total liabilities | 23,497 | |
Net Assets | $ 1,565,188 | |
Net Assets consist of: | ||
Paid in capital | $ 1,588,361 | |
Distributions in excess of net investment income | (9) | |
Accumulated undistributed net realized gain (loss) on investments | (7,902) | |
Net unrealized appreciation (depreciation) on investments | (15,262) | |
Net Assets | $ 1,565,188 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | June 30, 2007 (Unaudited) | |
Calculation of Maximum Offering Price | $ 10.14 | |
Maximum offering price per share (100/97.25 of $10.14) | $ 10.43 | |
Class T: | $ 10.13 | |
Maximum offering price per share (100/97.25 of $10.13) | $ 10.42 | |
Class B: | $ 10.14 | |
Class C: | $ 10.13 | |
Short-Intermediate Municipal Income: | $ 10.13 | |
Institutional Class: | $ 10.13 |
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.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended June 30, 2007 (Unaudited) | |
Investment Income | ||
Interest | $ 27,361 | |
Income from Fidelity Central Funds | 9 | |
Total income | 27,370 | |
Expenses | ||
Management fee | $ 2,834 | |
Transfer agent fees | 710 | |
Distribution fees | 63 | |
Accounting fees and expenses | 146 | |
Custodian fees and expenses | 11 | |
Independent trustees' compensation | 2 | |
Registration fees | 82 | |
Audit | 29 | |
Legal | 5 | |
Miscellaneous | 9 | |
Total expenses before reductions | 3,891 | |
Expense reductions | (507) | 3,384 |
Net investment income | 23,986 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (1,813) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (8,144) | |
Swap agreements | (122) | |
Total change in net unrealized appreciation (depreciation) | (8,266) | |
Net gain (loss) | (10,079) | |
Net increase (decrease) in net assets resulting from operations | $ 13,907 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 23,986 | $ 48,409 |
Net realized gain (loss) | (1,813) | (4,249) |
Change in net unrealized appreciation (depreciation) | (8,266) | 1,984 |
Net increase (decrease) in net assets resulting | 13,907 | 46,144 |
Distributions to shareholders from net investment income | (23,993) | (48,409) |
Share transactions - net increase (decrease) | 55,343 | (188,103) |
Redemption fees | 16 | 13 |
Total increase (decrease) in net assets | 45,273 | (190,355) |
Net Assets | ||
Beginning of period | 1,519,915 | 1,710,270 |
End of period (including distributions in excess of net investment income of $9 and distributions in excess of net investment income of $2, respectively) | $ 1,565,188 | $ 1,519,915 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.21 | $ 10.21 | $ 10.39 | $ 10.50 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .149 | .292 | .268 | .250 | .115 |
Net realized and unrealized gain (loss) | (.071) | (.001) | (.177) | (.090) | .071 |
Total from investment operations | .078 | .291 | .091 | .160 | .186 |
Distributions from net investment income | (.148) | (.291) | (.268) | (.251) | (.111) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.148) | (.291) | (.271) | (.270) | (.176) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, | $ 10.14 | $ 10.21 | $ 10.21 | $ 10.39 | $ 10.50 |
Total Return B, C, D | .77% | 2.89% | .89% | 1.55% | 1.78% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | .70% A | .65% | .65% | .65% | .65% A |
Expenses net of fee waivers, if any | .70% A | .65% | .65% | .65% | .65% A |
Expenses net of all reductions | .63% A | .56% | .58% | .64% | .64% A |
Net investment income | 2.94% A | 2.86% | 2.61% | 2.41% | 2.52% A |
Supplemental Data | |||||
Net assets, end of period | $ 9 | $ 10 | $ 14 | $ 12 | $ 9 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.19 | $ 10.20 | $ 10.37 | $ 10.48 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .146 | .281 | .257 | .238 | .110 |
Net realized and unrealized gain (loss) | (.060) | (.011) | (.167) | (.089) | .050 |
Total from investment operations | .086 | .270 | .090 | .149 | .160 |
Distributions from net investment income | (.146) | (.280) | (.257) | (.240) | (.105) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.146) | (.280) | (.260) | (.259) | (.170) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 10.19 | $ 10.20 | $ 10.37 | $ 10.48 |
Total Return B, C, D | .84% | 2.69% | .88% | 1.44% | 1.54% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | .76% A | .75% | .76% | .76% | .77% A |
Expenses net of fee waivers, if any | .76% A | .75% | .76% | .76% | .77% A |
Expenses net of all reductions | .69% A | .66% | .69% | .75% | .76% A |
Net investment income | 2.88% A | 2.76% | 2.50% | 2.30% | 2.41% A |
Supplemental Data | |||||
Net assets, end of period | $ 9 | $ 13 | $ 15 | $ 20 | $ 12 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.20 | $ 10.21 | $ 10.39 | $ 10.49 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .112 | .215 | .190 | .172 | .081 |
Net realized and unrealized gain (loss) | (.060) | (.012) | (.177) | (.080) | .059 |
Total from investment operations | .052 | .203 | .013 | .092 | .140 |
Distributions from net investment income | (.112) | (.213) | (.190) | (.173) | (.075) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.112) | (.213) | (.193) | (.192) | (.140) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, end of period | $ 10.14 | $ 10.20 | $ 10.21 | $ 10.39 | $ 10.49 |
Total Return B, C, D | .51% | 2.02% | .13% | .89% | 1.34% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | 1.43% A | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of fee waivers, if any | 1.43% A | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of all reductions | 1.36% A | 1.31% | 1.34% | 1.39% | 1.39% A |
Net investment income | 2.21% A | 2.11% | 1.85% | 1.65% | 1.78% A |
Supplemental Data | |||||
Net assets, end of period | $ 2 | $ 2 | $ 3 | $ 4 | $ 2 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .107 | .204 | .178 | .159 | .077 |
Net realized and unrealized gain (loss) | (.060) | (.011) | (.176) | (.080) | .048 |
Total from investment operations | .047 | .193 | .002 | .079 | .125 |
Distributions from net investment income | (.107) | (.203) | (.179) | (.160) | (.070) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.107) | (.203) | (.182) | (.179) | (.135) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 |
Total Return B, C, D | .46% | 1.92% | .02% | .77% | 1.20% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | 1.53% A | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of fee waivers, if any | 1.53% A | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of all reductions | 1.46% A | 1.41% | 1.45% | 1.51% | 1.49% A |
Net investment income | 2.11% A | 2.01% | 1.74% | 1.53% | 1.67% A |
Supplemental Data | |||||
Net assets, end of period | $ 5 | $ 7 | $ 10 | $ 11 | $ 8 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Short-Intermediate Municipal Income
Six months ended June 30, 2007 | Years ended December 31, | |||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 | 2002 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 | $ 10.27 |
Income from Investment Operations | ||||||
Net investment income D | .158 | .307 | .284 | .268 | .283 | .336 |
Net realized and unrealized gain (loss) | (.060) | (.010) | (.177) | (.080) | .030 | .317 |
Total from investment operations | .098 | .297 | .107 | .188 | .313 | .653 |
Distributions from net investment income | (.158) | (.307) | (.284) | (.269) | (.283) | (.339) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.070) | (.064) |
Total distributions | (.158) | (.307) | (.287) | (.288) | (.353) | (.403) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, | $ 10.13 | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 |
Total Return B, C | .97% | 2.95% | 1.06% | 1.82% | 3.01% | 6.47% |
Ratios to Average Net Assets E, G | ||||||
Expenses before reductions | .50% A | .49% | .49% | .49% | .49% | .49% |
Expenses net of fee waivers, if any | .50% A | .49% | .49% | .48% | .49% | .49% |
Expenses net of all reductions | .43% A | .41% | .42% | .47% | .47% | .45% |
Net investment income | 3.14% A | 3.01% | 2.77% | 2.57% | 2.69% | 3.23% |
Supplemental Data | ||||||
Net assets, end of | $ 1,536 | $ 1,485 | $ 1,665 | $ 1,841 | $ 1,843 | $ 1,683 |
Portfolio turnover rate F | 26% A | 28% | 27% | 45% | 34% | 38% |
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 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
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. 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.
Semiannual Report
Financial Highlights - Institutional Class
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 G | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.20 | $ 10.20 | $ 10.38 | $ 10.49 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income D | .157 | .306 | .283 | .265 | .125 |
Net realized and unrealized gain (loss) | (.070) | - | (.176) | (.088) | .059 |
Total from investment operations | .087 | .306 | .107 | .177 | .184 |
Distributions from net investment income | (.157) | (.306) | (.284) | (.268) | (.119) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.157) | (.306) | (.287) | (.287) | (.184) |
Redemption fees added to paid in capital D, I | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 10.20 | $ 10.20 | $ 10.38 | $ 10.49 |
Total Return B, C | .85% | 3.05% | 1.05% | 1.71% | 1.77% |
Ratios to Average Net Assets E, H | |||||
Expenses before reductions | .53% A | .50% | .49% | .49% | .48% A |
Expenses net of fee waivers, if any | .53% A | .50% | .49% | .49% | .48% A |
Expenses net of all reductions | .47% A | .41% | .42% | .48% | .47% A |
Net investment income | 3.11% A | 3.01% | 2.77% | 2.57% | 2.69% A |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 3,255 | $ 3,357 | $ 2,625 | $ 1,253 | $ 414 |
Portfolio turnover rate F | 26% A | 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 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
H 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.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2007 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. 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 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies.
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, 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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds 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 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. The Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
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 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 federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 2,491 | |
Unrealized depreciation | (17,631) | |
Net unrealized appreciation (depreciation) | $ (15,140) | |
Cost for federal income tax purposes | $ 1,581,074 |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
New Accounting Pronouncement. 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.
4. 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 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.
Swap Agreements. The Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.
Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.
Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are
Semiannual Report
4. Operating Policies - continued
Swap Agreements - continued
realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the Fund's Schedule of Investments under the caption "Swap Agreements."
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $233,582 and $195,478, respectively.
6. 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 annualized 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, 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 | 0% | .25% | $ 9 | $ - |
Class T | 0% | .25% | 14 | - |
Class B | .65% | .25% | 10 | 7 |
Class C | .75% | .25% | 30 | 4 |
$ 63 | $ 11 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
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 2.75% for selling Class A and Class T shares (3.75% for Class A shares prior to April 1, 2007), 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 and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 1 |
Class T | - |
Class B* | 2 |
Class C* | 3 |
$ 6 |
* 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.
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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
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 | $ 4 | .09 |
Class T | 5 | .10 |
Class B | 1 | .11 |
Class C | 3 | .11 |
Short-Intermediate Municipal Income | 695 | .09 |
Institutional Class | 2 | .12 |
$ 710 |
* Annualized
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.
7. 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 $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. 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 $11 and $146, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | ||
Class A | $ 2 | |
Class T | 2 | |
Class B | 1 | |
Class C | 1 | |
Short-Intermediate Municipal Income | 340 | |
Institutional Class | 1 | |
$ 347 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. 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.
In September 2006, FIIOC, the Fund's transfer agent, 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. In March 2007, FIIOC converted the relevant Class B shares to Class A shares and recorded the conversion in the books and records of the Fund which did not result in a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. FIIOC has reimbursed the Fund for related audit and legal expenses and, beginning in June 2007, remediated affected shareholders.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income | ||
Class A | $ 139 | $ 317 |
Class T | 162 | 388 |
Class B | 24 | 63 |
Class C | 62 | 157 |
Short-Intermediate Municipal Income | 23,552 | 47,385 |
Institutional Class | 54 | 99 |
Total | $ 23,993 | $ 48,409 |
Semiannual Report
11. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 47 | 246 | $ 478 | $ 2,516 |
Reinvestment of distributions | 11 | 25 | 115 | 253 |
Shares redeemed | (162) | (701) | (1,655) | (7,154) |
Net increase (decrease) | (104) | (430) | $ (1,062) | $ (4,385) |
Class T | ||||
Shares sold | 183 | 302 | $ 1,869 | $ 3,071 |
Reinvestment of distributions | 13 | 30 | 131 | 307 |
Shares redeemed | (512) | (564) | (5,213) | (5,739) |
Net increase (decrease) | (316) | (232) | $ (3,213) | $ (2,361) |
Class B | ||||
Shares sold | 46 | 27 | $ 472 | $ 268 |
Reinvestment of distributions | 2 | 4 | 16 | 45 |
Shares redeemed | (63) | (138) | (645) | (1,399) |
Net increase (decrease) | (15) | (107) | $ (157) | $ (1,086) |
Class C | ||||
Shares sold | 50 | 162 | $ 520 | $ 1,641 |
Reinvestment of distributions | 4 | 9 | 39 | 96 |
Shares redeemed | (164) | (536) | (1,671) | (5,451) |
Net increase (decrease) | (110) | (365) | $ (1,112) | $ (3,714) |
Short-Intermediate Municipal Income | ||||
Shares sold | 22,742 | 38,594 | $ 231,480 | $ 392,661 |
Reinvestment of distributions | 1,568 | 3,345 | 15,946 | 34,020 |
Shares redeemed | (18,324) | (59,417) | (186,459) | (603,968) |
Net increase (decrease) | 5,986 | (17,478) | $ 60,967 | $ (177,287) |
Institutional Class | ||||
Shares sold | 99 | 258 | $ 1,001 | $ 2,623 |
Reinvestment of distributions | 2 | 5 | 22 | 47 |
Shares redeemed | (109) | (191) | (1,103) | (1,940) |
Net increase (decrease) | (8) | 72 | $ (80) | $ 730 |
Semiannual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Short-Intermediate Municipal Income Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Semiannual Report
Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, as available, the cumulative total returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Semiannual Report
Fidelity Short-Intermediate Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Short-Intermediate Municipal Income (retail class) was in the second quartile for the one- and three-year periods and the third quartile for the five-year period. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 17% means that 83% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Fidelity Short-Intermediate Municipal Income Fund
Semiannual Report
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expenses of each of Class A, Class T, Class B, Fidelity Short-Intermediate Municipal Income (retail class), and Institutional Class ranked below its competitive median for 2006, and the total expenses of Class C ranked above its competitive median for 2006. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
Semiannual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Semiannual Report
The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Semiannual Report
Semiannual Report
Semiannual 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
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-USAN-0807
1.803547.103
(Fidelity Investment logo)(registered trademark)
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
Short-Intermediate
Municipal Income
Fund - Institutional Class
Semiannual Report
June 30, 2007
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. | |
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. | |
Board Approval of Investment Advisory Contracts and Management Fees | ||
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://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.
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 holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Stocks are currently on pace to register their fifth-straight year of positive returns, although gains could be trimmed if the U.S. economy continues to slow. 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
Semiannual 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 (January 1, 2007 to June 30, 2007).
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
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.
Semiannual Report
Beginning | Ending | Expenses Paid | |
Class A | |||
Actual | $ 1,000.00 | $ 1,007.70 | $ 3.48** |
HypotheticalA | $ 1,000.00 | $ 1,021.32 | $ 3.51** |
Class T | |||
Actual | $ 1,000.00 | $ 1,008.40 | $ 3.78 |
HypotheticalA | $ 1,000.00 | $ 1,021.03 | $ 3.81 |
Class B | |||
Actual | $ 1,000.00 | $ 1,005.10 | $ 7.11 |
HypotheticalA | $ 1,000.00 | $ 1,017.70 | $ 7.15 |
Class C | |||
Actual | $ 1,000.00 | $ 1,004.60 | $ 7.60 |
HypotheticalA | $ 1,000.00 | $ 1,017.21 | $ 7.65 |
Short-Intermediate Municipal Income | |||
Actual | $ 1,000.00 | $ 1,009.70 | $ 2.49 |
HypotheticalA | $ 1,000.00 | $ 1,022.32 | $ 2.51 |
Institutional Class | |||
Actual | $ 1,000.00 | $ 1,008.50 | $ 2.64 |
HypotheticalA | $ 1,000.00 | $ 1,022.17 | $ 2.66 |
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 181/365 (to reflect the one-half year period).
Annualized | |
Class A | .70%** |
Class T | .76% |
Class B | 1.43% |
Class C | 1.53% |
Short-Intermediate Municipal Income | .50% |
Institutional Class | .53% |
** 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 .75% and the expenses paid in the actual and hypothetical examples above would have been $3.73 and $3.76, respectively.
Semiannual Report
Investment Changes
Top Five States as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
New York | 16.1 | 17.0 |
Texas | 11.2 | 11.3 |
Illinois | 9.0 | 9.9 |
California | 8.5 | 7.0 |
New Jersey | 6.6 | 6.2 |
Top Five Sectors as of June 30, 2007 | ||
% of fund's | % of fund's net assets | |
General Obligations | 40.3 | 41.0 |
Escrowed/Pre-Refunded | 14.7 | 13.4 |
Special Tax | 9.1 | 9.7 |
Electric Utilities | 9.0 | 8.6 |
Health Care | 6.3 | 6.8 |
Weighted Average Maturity as of June 30, 2007 | ||
6 months ago | ||
Years | 3.6 | 3.9 |
The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity. Effective May 2007, the calculation was modified taking into account any maturity shortening feature such as a call, refunding or redemption provision. The prior figure reflects this change. |
Duration as of June 30, 2007 | ||
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 June 30, 2007 | As of December 31, 2006 | ||||||
![]() | AAA 51.8% | ![]() | AAA 54.6% | ||||
![]() | AA,A 37.8% | ![]() | AA,A 35.9% | ||||
![]() | BBB 6.1% | ![]() | BBB 6.8% | ||||
![]() | BB and Below 0.4% | ![]() | BB and Below 0.3% | ||||
![]() | Not Rated 3.6% | ![]() | Not Rated 1.7% | ||||
![]() | 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. |
Semiannual Report
Investments June 30, 2007 (Unaudited)
Showing Percentage of Net Assets
Municipal Bonds - 97.7% | ||||
Principal Amount (000s) | Value (000s) | |||
Alabama - 1.9% | ||||
Birmingham Baptist Med. Ctrs. Spl. Care Facilities Fing. Auth. Rev. (Baptist Health Sys., Inc. Proj.) Series A, 5% 11/15/09 | $ 1,100 | $ 1,112 | ||
Daphne Spl. Care Facilities Fing. Auth. Rev. Series A, 0% 8/15/28 (Pre-Refunded to 8/15/08 @ 100) (g) | 10,000 | 9,575 | ||
Health Care Auth. for Baptist Health Series 2006 D: | ||||
5% 11/15/08 | 1,475 | 1,489 | ||
5% 11/15/11 | 1,000 | 1,027 | ||
Huntsville Solid Waste Disp. Auth. & Resource Recovery Rev.: | ||||
5.25% 10/1/08 (MBIA Insured) (f) | 2,900 | 2,947 | ||
5.75% 10/1/09 (MBIA Insured) (f) | 4,000 | 4,133 | ||
Jefferson County Swr. Rev.: | ||||
Series A, 5.5% 2/1/40 (Pre-Refunded to 2/1/11 @ 101) (g) | 3,900 | 4,129 | ||
5% 2/1/41 (Pre-Refunded to 8/1/12 @ 100) (g) | 2,070 | 2,158 | ||
Pell City Spl. Care Facilities Rev. (Noland Health Services, Inc. Proj.) Series A: | ||||
5% 12/1/08 | 400 | 405 | ||
5% 12/1/09 | 500 | 507 | ||
5% 12/1/10 | 855 | 872 | ||
5% 12/1/12 | 750 | 767 | ||
29,121 | ||||
Alaska - 0.6% | ||||
Alaska Student Ln. Corp. Student Ln. Rev. Series A, 5.85% 7/1/13 (AMBAC Insured) (f) | 3,285 | 3,439 | ||
Anchorage Gen. Oblig. Series B, 5.75% 12/1/11 (Pre-Refunded to 12/1/10 @ 100) (g) | 2,500 | 2,647 | ||
North Slope Borough Gen. Oblig. Series B, 0% 6/30/08 (MBIA Insured) | 4,240 | 4,083 | ||
10,169 | ||||
Arizona - 1.3% | ||||
Arizona Ctfs. of Prtn. Series B, 5.5% 9/1/10 (FSA Insured) | 9,025 | 9,433 | ||
Arizona School Facilities Board Ctfs. of Prtn. Series C, 5% 9/1/09 (FSA Insured) | 1,115 | 1,141 | ||
Maricopa County Unified School District #48 Scottsdale 7.4% 7/1/10 | 3,750 | 4,109 | ||
Nogales Rev. Oblig. (Wastewtr. Systems Proj.) Series 06A, 3.75%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | 3,000 | 2,958 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (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 | $ 663 | ||
Tucson Wtr. Rev. Series A, 5% 7/1/11 (FGIC Insured) | 1,500 | 1,552 | ||
19,856 | ||||
California - 8.5% | ||||
California Dept. of Wtr. Resources Pwr. Supply Rev. Series A, 5.25% 5/1/12 (MBIA Insured) | 6,000 | 6,334 | ||
California Econ. Recovery Series A: | ||||
5.25% 1/1/11 | 6,500 | 6,781 | ||
5.25% 7/1/13 | 2,400 | 2,556 | ||
5.25% 7/1/13 (MBIA Insured) | 2,900 | 3,096 | ||
California Gen. Oblig.: | ||||
5% 2/1/09 | 1,640 | 1,672 | ||
5% 2/1/10 | 2,000 | 2,055 | ||
5% 2/1/11 | 4,000 | 4,137 | ||
5% 2/1/11 | 2,525 | 2,612 | ||
5% 10/1/11 | 1,650 | 1,716 | ||
5% 2/1/12 | 1,650 | 1,716 | ||
5% 3/1/12 | 15,000 | 15,611 | ||
5% 9/1/12 | 1,700 | 1,776 | ||
5% 10/1/12 | 12,600 | 13,171 | ||
5.125% 9/1/12 | 1,000 | 1,033 | ||
5.25% 9/1/10 | 18,550 | 19,308 | ||
5.25% 2/1/11 | 6,775 | 7,063 | ||
5.5% 3/1/11 (FGIC Insured) | 3,210 | 3,388 | ||
5.5% 3/1/11 (XL Cap. Assurance, Inc. Insured) | 3,525 | 3,714 | ||
5.75% 10/1/08 | 1,085 | 1,112 | ||
6.4% 9/1/08 | 3,075 | 3,169 | ||
6.5% 9/1/10 | 1,760 | 1,894 | ||
California Health Facilities Fing. Auth. Rev. (Cedars-Sinai Med. Ctr. Proj.) 5% 11/15/10 | 1,000 | 1,030 | ||
California State Univ. Rev. 5% 11/1/13 (FSA Insured) (b) | 1,335 | 1,410 | ||
California Statewide Communities Dev. Auth. Rev. (Kaiser Fund Hosp./Health Place, Inc. Proj.) Series 2002 C, 3.85%, tender 6/1/12 (c) | 1,400 | 1,376 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev. Series A1, 5% 6/1/12 | 2,570 | 2,639 | ||
Northern California Gas Auth. #1 Gas Proj. Rev. Series A, 5% 7/1/11 | 2,200 | 2,280 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
California - continued | ||||
Regents of the Univ. of California Rev.: | ||||
(UCLA Med. Ctr. Proj.) 4.55% 12/1/09 (i) | $ 8,607 | $ 8,653 | ||
Series K: | ||||
5% 5/15/09 | 1,000 | 1,022 | ||
5% 5/15/10 | 4,955 | 5,115 | ||
San Joaquin Hills Trans. Corridor Agcy. Toll Road Rev. Series A, 0% 1/15/12 (MBIA Insured) | 3,600 | 2,989 | ||
Western Placer Unified School District Ctfs. of Prtn. (School Facilities Proj.) Series B, 3.625%, tender 12/1/09 (FSA Insured) (c) | 3,170 | 3,145 | ||
133,573 | ||||
Colorado - 0.6% | ||||
Colorado Health Facilities Auth. Rev.: | ||||
(Adventist Health Sys. - Sunbelt Proj.): | ||||
Series E, 5% 11/15/11 | 2,230 | 2,292 | ||
Series F, 5% 11/15/12 | 1,225 | 1,264 | ||
(Volunteers of America Care Proj.) Series A, 5% 7/1/10 | 615 | 617 | ||
Denver City & County Arpt. Rev. Series E, 5% 11/15/08 (XL Cap. Assurance, Inc. Insured) (f) | 5,000 | 5,071 | ||
9,244 | ||||
Connecticut - 1.9% | ||||
Connecticut Gen. Oblig.: | ||||
Series 2001 D, 5.125% 11/15/18 (Pre-Refunded to 11/15/11 @ 100) (g) | 5,000 | 5,233 | ||
Series F, 5% 12/1/11 | 23,100 | 24,062 | ||
29,295 | ||||
District Of Columbia - 0.7% | ||||
District of Columbia Ctfs. of Prtn. 5.25% 1/1/08 (AMBAC Insured) | 935 | 942 | ||
District of Columbia Gen. Oblig.: | ||||
Series A, 5.25% 6/1/09 (FSA Insured) | 1,000 | 1,025 | ||
Series B, 0% 6/1/12 (MBIA Insured) | 3,600 | 2,909 | ||
Metropolitan Washington DC Arpts. Auth. Sys. Rev. Series B, 5.5% 10/1/08 (FGIC Insured) (f) | 6,460 | 6,548 | ||
11,424 | ||||
Florida - 5.4% | ||||
Brevard County School Board Ctfs. of Prtn. Series A, 5.5% 7/1/09 (AMBAC Insured) | 2,775 | 2,859 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Florida - continued | ||||
Citizens Property Ins. Corp. Series 2007 A, 5% 3/1/11 (MBIA Insured) | $ 4,025 | $ 4,159 | ||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys. - Sunbelt Proj.): | ||||
Series A, 5% 11/15/10 | 1,000 | 1,024 | ||
Series B, 5% 11/15/08 | 800 | 812 | ||
Series G: | ||||
5% 11/15/08 | 420 | 426 | ||
5% 11/15/09 | 435 | 443 | ||
5% 11/15/10 | 400 | 410 | ||
5% 11/15/11 | 700 | 720 | ||
Series I, 5%, tender 11/16/09 (c) | 4,700 | 4,785 | ||
3.95%, tender 9/1/12 (c) | 7,550 | 7,405 | ||
Hillsborough County Indl. Dev. Auth. Poll. Cont. Rev. (Tampa Elec. Co. Proj.): | ||||
4%, tender 8/1/07 (c) | 11,000 | 10,996 | ||
4.25%, tender 8/1/07 (c)(f) | 6,000 | 5,999 | ||
Lakeland Hosp. Sys. Rev. (Reg'l. Health Systems Proj.) 5% 11/15/11 | 2,545 | 2,614 | ||
Lee County Solid Waste Sys. Rev. 5.25% 10/1/09 (MBIA Insured) (f) | 1,000 | 1,025 | ||
Lee Memorial Health Sys. Board of Directors Hosp. Rev. Series A, 5.75% 4/1/12 (FSA Insured) | 1,980 | 2,119 | ||
Miami-Dade County School Board Ctfs. of Prtn. Series B, 5%, tender 5/1/11 (MBIA Insured) (c) | 1,500 | 1,547 | ||
Orange County School Board Ctfs. of Prtn. Series A, 5.375% 8/1/22 (Pre-Refunded to 8/1/07 @ 101) (g) | 3,855 | 3,898 | ||
Orlando Utils. Commission Util. Sys. Rev. 5.25% 7/1/09 | 6,000 | 6,157 | ||
Palm Beach County School Board Ctfs. of Prtn. Series A, 6% 8/1/22 (Pre-Refunded to 8/1/10 @ 101) (g) | 7,020 | 7,486 | ||
Polk County Cap. Impt. Rev.: | ||||
Series 2004, 5.5%, tender 12/1/10 (FSA Insured) (c) | 9,000 | 9,405 | ||
5.5% 12/1/11 (FGIC Insured) | 3,470 | 3,680 | ||
Seminole County School Board Ctfs. of Prtn. Series A, 4.5% 7/1/08 (MBIA Insured) | 1,250 | 1,259 | ||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001: | ||||
2.8%, tender 10/1/08, LOC SunTrust Banks, Inc. (c) | 2,000 | 1,974 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Florida - continued | ||||
Univ. Athletic Assoc., Inc. Athletic Prog. Rev. Series 2001: - continued | ||||
3%, tender 10/1/09, LOC SunTrust Banks, Inc. (c) | $ 1,000 | $ 976 | ||
Volusia County School Board Ctfs. of Prtn. (School Board of Volusia County Master Lease Prog.) 5% 8/1/08 (FSA Insured) | 1,625 | 1,646 | ||
83,824 | ||||
Georgia - 1.2% | ||||
Carroll County School District 5% 4/1/11 | 8,000 | 8,289 | ||
Georgia Muni. Elec. Auth. Pwr. Rev. Series 1992 B, 8.25% 1/1/11 (MBIA Insured) | 4,105 | 4,659 | ||
Walton County: | ||||
5% 1/1/10 (FGIC Insured) | 2,000 | 2,053 | ||
5% 1/1/11 (FGIC Insured) | 3,000 | 3,106 | ||
18,107 | ||||
Hawaii - 2.4% | ||||
Hawaii Arpt. Sys. Rev. Series 2000 B, 8% 7/1/10 (FGIC Insured) (f) | 3,850 | 4,269 | ||
Hawaii Gen. Oblig. Series CU: | ||||
5.75% 10/1/11 (MBIA Insured) | 3,040 | 3,207 | ||
5.75% 10/1/11 (Pre-Refunded to 10/1/10 @ 100) (g) | 170 | 180 | ||
Honolulu City & County Gen. Oblig. Series B, 8% 10/1/09 | 26,940 | 29,229 | ||
36,885 | ||||
Illinois - 9.0% | ||||
Chicago Board of Ed. (Chicago School Reform Proj.) 6.75% 12/1/10 (AMBAC Insured) | 4,160 | 4,530 | ||
Chicago Gen. Oblig. Series A, 5.25% 1/1/12 (FSA Insured) | 1,000 | 1,050 | ||
Chicago Midway Arpt. Rev. Series B: | ||||
5% 1/1/10 (AMBAC Insured) | 1,225 | 1,255 | ||
5% 1/1/11 (AMBAC Insured) | 3,625 | 3,740 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series A: | ||||
5% 1/1/12 (MBIA Insured) | 1,165 | 1,208 | ||
5.5% 1/1/08 (AMBAC Insured) | 5,000 | 5,043 | ||
5.5% 1/1/10 (AMBAC Insured) (f) | 2,900 | 2,999 | ||
5.5% 1/1/10 (Escrowed to Maturity) (f)(g) | 2,100 | 2,170 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Illinois - continued | ||||
Chicago Park District: | ||||
Series B, 5% 1/1/11 (AMBAC Insured) | $ 5,750 | $ 5,939 | ||
Series C, 5% 1/1/11 (AMBAC Insured) | 2,515 | 2,598 | ||
Chicago Tax Increment Rev. Series 2000 A, 0% 12/1/08 (AMBAC Insured) | 10,000 | 9,470 | ||
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 | 5,008 | ||
Granite City Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 3.85%, tender 5/1/08 (c)(f) | 2,200 | 2,193 | ||
Hodgkins Tax Increment Rev. 5% 1/1/09 | 1,805 | 1,829 | ||
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 | 6,059 | ||
Illinois Dev. Fin. Auth. Rev. (DePaul Univ. Proj.) Series 2004 C, 5.5% 10/1/10 | 1,900 | 1,976 | ||
Illinois Edl. Facilities Auth. Revs.: | ||||
(Art Institute of Chicago Proj.) Series 2003, 3.85%, tender 3/1/11 (c) | 12,800 | 12,585 | ||
(Field Museum of Natural History Proj.) 4.05%, tender 11/1/11 (c) | 3,250 | 3,224 | ||
(Univ. of Chicago Proj.): | ||||
Series A, 5.25% 7/1/41 (Pre-Refunded to 7/1/11 @ 101) (g) | 2,640 | 2,785 | ||
Series B: | ||||
3.1%, tender 7/1/07 (c)(g) | 5 | 5 | ||
3.1%, tender 7/1/07 (c) | 3,995 | 3,995 | ||
4.05%, tender 7/1/09 (c) | 7,000 | 7,013 | ||
Illinois Fin. Auth. Rev. (DePaul Univ. Proj.) Series A: | ||||
5% 10/1/07 | 1,225 | 1,227 | ||
5% 10/1/08 | 1,000 | 1,012 | ||
5% 10/1/11 | 1,165 | 1,198 | ||
Illinois Gen. Oblig.: | ||||
First Series 2001, 5.25% 5/1/11 (FSA Insured) | 1,475 | 1,542 | ||
First Series: | ||||
5.375% 7/1/11 (MBIA Insured) | 6,745 | 7,094 | ||
5.5% 8/1/10 | 1,460 | 1,524 | ||
6% 1/1/11 (Pre-Refunded to 1/1/10 @ 100) (g) | 7,075 | 7,421 | ||
Series A, 5% 10/1/09 | 2,600 | 2,659 | ||
5.75% 4/1/12 (Pre-Refunded to 4/1/10 @ 100) (g) | 1,000 | 1,047 | ||
Illinois Health Facilities Auth. Rev. (Condell Med. Ctr. Proj.) 5% 5/15/08 | 700 | 703 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Illinois - continued | ||||
Kane & DeKalb Counties Cmnty. Unit School District #301 0% 12/1/10 (AMBAC Insured) | $ 2,000 | $ 1,741 | ||
Kane & DuPage Counties Cmnty. Unit School District #303, Saint Charles Series A, 5.5% 1/1/12 (FSA Insured) | 2,270 | 2,407 | ||
Kane County School District #129, Aurora West Side Series A, 5.75% 2/1/14 (Pre-Refunded to 2/1/12 @ 100) (g) | 1,600 | 1,713 | ||
Kane, McHenry, Cook & DeKalb Counties Unit School District #300, Carpentersville 5.5% 12/1/13 (Pre-Refunded to 12/1/11 @ 100) (g) | 5,000 | 5,308 | ||
Lake County Cmnty. High School District #128, Libertyville Series 2004, 5% 1/1/11 | 2,365 | 2,441 | ||
Madison County Cmnty. United School District #007 Series A, 5% 12/1/11 (FSA Insured) (b) | 2,965 | 3,072 | ||
Metropolitan Pier & Exposition Auth. Dedicated State Tax Rev. Series 2002, 0% 6/15/10 (Escrowed to Maturity) (g) | 5,000 | 4,441 | ||
Quincy Hosp. Rev. (Blessing Hosp. Proj.) 5% 11/15/10 | 1,285 | 1,310 | ||
Rosemont Gen. Oblig.: | ||||
Series 3, 0% 12/1/07 (FGIC Insured) | 625 | 615 | ||
Series A, 0% 12/1/11 (FGIC Insured) | 3,695 | 3,089 | ||
Univ. of Illinois Ctfs. of Prtn. (Util. Infrastructure Proj.) 5% 8/15/11 (AMBAC Insured) | 1,360 | 1,409 | ||
Will County School District #122 Series B, 0% 11/1/08 (FSA Insured) | 1,280 | 1,217 | ||
140,864 | ||||
Indiana - 3.3% | ||||
Carmel High School Bldg. Corp. 5% 1/10/11 (FSA Insured) | 1,000 | 1,033 | ||
Ctr. Grove 2000 Bldg. Corp.: | ||||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,785 | 1,888 | ||
5.5% 7/15/18 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,885 | 1,994 | ||
Hamilton Southeastern Consolidated School Bldg. Corp.: | ||||
Series A: | ||||
5% 1/10/10 (FSA Insured) | 1,750 | 1,795 | ||
5.25% 7/10/11 (FSA Insured) | 2,295 | 2,401 | ||
5.25% 1/10/12 (FSA Insured) | 1,355 | 1,423 | ||
5% 1/15/10 (FSA Insured) | 1,835 | 1,882 | ||
5% 1/15/11 (FSA Insured) | 1,910 | 1,974 | ||
5% 1/15/12 (FSA Insured) | 1,990 | 2,070 | ||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,855 | 1,962 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Indiana - continued | ||||
Indiana Univ. Student Fee Revs. Series H, 0% 8/1/09 (AMBAC Insured) | $ 3,875 | $ 3,573 | ||
Indianapolis Resource Recovery Rev. (Ogden Martin Sys., Inc. Proj.) 6.75% 12/1/07 (AMBAC Insured) | 3,000 | 3,029 | ||
Ivy Tech State College Series I, 5% 7/1/09 (AMBAC Insured) | 1,405 | 1,435 | ||
Logansport High School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,000 | 1,038 | ||
5.25% 7/15/11 (MBIA Insured) | 1,020 | 1,064 | ||
5.25% 1/15/12 (MBIA Insured) | 1,045 | 1,093 | ||
5.25% 7/15/12 (MBIA Insured) | 1,075 | 1,129 | ||
Mount Vernon of Hancock County Multi-School Corp. Series B: | ||||
5.5% 7/15/16 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,605 | 1,698 | ||
5.5% 7/15/17 (Pre-Refunded to 7/15/11 @ 100) (g) | 1,695 | 1,793 | ||
Muncie School Bldg. Corp. 5.25% 7/10/12 (MBIA Insured) | 1,585 | 1,672 | ||
New Albany Floyd County Independent School Bldg. Corp. 5% 1/15/11 (FSA Insured) | 1,000 | 1,033 | ||
Rockport Poll. Cont. Rev. (AEP Generating Co. Proj.) Series 1995 A, 4.15%, tender 7/15/11 (AMBAC Insured) (c) | 1,600 | 1,606 | ||
Saint Joseph County Ind. Edl. Facilities Rev. (Univ. of Notre Dame Du Lac Proj.) 2.5%, tender 12/3/07 (c) | 10,000 | 9,934 | ||
West Clark 2000 School Bldg. Corp.: | ||||
5.25% 1/15/11 (MBIA Insured) | 1,065 | 1,107 | ||
5.25% 7/15/11 (MBIA Insured) | 1,125 | 1,175 | ||
5.25% 1/15/12 (MBIA Insured) | 1,150 | 1,206 | ||
52,007 | ||||
Kansas - 0.2% | ||||
Burlington Envir. Impt. Rev. (Kansas City Pwr. & Lt. Co. Proj.) Series A, 4.75%, tender 10/1/07 (c) | 2,400 | 2,404 | ||
Kansas Dev. Fin. Auth. Health Facilities Rev. (Hays Med. Ctr. Proj.) Series 2005 L: | ||||
5.25% 11/15/10 | 545 | 562 | ||
5.25% 11/15/12 | 680 | 709 | ||
3,675 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Kentucky - 0.2% | ||||
Kenton County Arpt. Board Arpt. Rev. Series B, 5% 3/1/09 (MBIA Insured) (f) | $ 1,185 | $ 1,205 | ||
Owensboro Elec. Lt. & Pwr. Rev. Series B, 0% 1/1/09 (AMBAC Insured) | 2,000 | 1,885 | ||
3,090 | ||||
Louisiana - 0.5% | ||||
East Baton Rouge Parish Pub. Impt. Sales Tax Rev. | 1,000 | 1,040 | ||
Ernest N. Morial-New Orleans Exhibit Hall Auth. Spl. Tax Series A, 5.25% 7/15/11 (AMBAC Insured) | 2,060 | 2,146 | ||
Louisiana Military Dept. Custody Receipts 5% 8/1/10 | 1,530 | 1,559 | ||
Louisiana Offshore Term. Auth. Deepwater Port Rev. (LOOP LLC Proj.) Series 2003 D, 4%, tender 9/1/08 (c) | 2,700 | 2,700 | ||
7,445 | ||||
Maryland - 0.3% | ||||
Baltimore Proj. Rev. Wtr. & Swr. Rev. Series D: | ||||
5% 7/1/10 (AMBAC Insured) | 690 | 711 | ||
5% 7/1/11 (AMBAC Insured) | 1,985 | 2,061 | ||
Howard County Retirement Cmnty. Rev. (Vantage House Proj.) Series A, 4.5% 4/1/09 | 605 | 604 | ||
Prince Georges County Ctfs. of Prtn. (Equip. Acquisition Prog.) 5.25% 5/15/10 (MBIA Insured) | 1,535 | 1,588 | ||
4,964 | ||||
Massachusetts - 5.2% | ||||
Massachusetts Bay Trans. Auth. Series A, 7% 3/1/09 | 6,880 | 7,218 | ||
Massachusetts Dept. of Agricultural Resources Higher Ed. Rev. Series A, 5% 1/1/11 | 1,000 | 1,027 | ||
Massachusetts Dev. Fin. Agcy. Rev. (Massachusetts Biomedical Research Corp. Proj.) Series C, 5.875% 8/1/08 | 1,630 | 1,655 | ||
Massachusetts Fed. Hwy.: | ||||
Series 2000 A, 5.75% 6/15/13 | 3,000 | 3,172 | ||
Series B, 5.125% 12/15/14 (Pre-Refunded to 12/15/08 @ 101) (g) | 2,775 | 2,850 | ||
Massachusetts Gen. Oblig.: | ||||
Series 1999 C, 5.625% 9/1/12 (Pre-Refunded to 9/1/09 @ 101) (g) | 2,570 | 2,685 | ||
Series 2000 A: | ||||
5.8% 2/1/17 (Pre-Refunded to 2/1/10 @ 101) (g) | 5,000 | 5,277 | ||
6% 2/1/10 | 2,500 | 2,624 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Massachusetts - continued | ||||
Massachusetts Gen. Oblig.: - continued | ||||
Series 2000 B, 5.7% 6/1/19 (Pre-Refunded to 6/1/10 @ 100) (g) | $ 6,280 | $ 6,589 | ||
Series 2001 A, 5.5% 1/1/11 | 5,000 | 5,244 | ||
Series 2003 C, 5.5% 10/1/10 (MBIA Insured) | 1,130 | 1,184 | ||
Series C: | ||||
5.25% 11/1/30 (Pre-Refunded to 11/1/12 @ 100) (g) | 2,495 | 2,636 | ||
5.5% 11/1/10 (FSA Insured) | 10,000 | 10,490 | ||
Massachusetts Health & Edl. Facilities Auth. Rev. (Berkshire Health Sys., Inc. Proj.) Series F, 5% 10/1/08 | 2,720 | 2,753 | ||
Massachusetts Port Auth. Spl. Facilities Rev. (Delta Air Lines, Inc. Proj.) Series A, 5.5% 1/1/12 (AMBAC Insured) (f) | 1,000 | 1,048 | ||
Massachusetts Wtr. Resources Auth. Series A: | ||||
5.75% 8/1/30 (FGIC Insured) (Pre-Refunded to 8/1/10 @ 101) (g) | 19,000 | 20,171 | ||
5.75% 8/1/39 (Pre-Refunded to 8/1/10 @ 101) (g) | 5,000 | 5,308 | ||
81,931 | ||||
Michigan - 1.7% | ||||
Detroit City School District Series A, 5.5% 5/1/11 (FSA Insured) | 1,200 | 1,265 | ||
Detroit Gen. Oblig. 5% 4/1/09 (MBIA Insured) | 10,620 | 10,835 | ||
Detroit Swr. Disp. Rev.: | ||||
Series A, 5.75% 7/1/26 (Pre-Refunded to 1/1/10 @ 101) (g) | 2,000 | 2,103 | ||
4.184% 7/1/32 (FSA Insured) (c) | 4,200 | 4,200 | ||
Michigan Bldg. Auth. Rev. (Facilities Prog.) Series I, 5.5% 10/15/09 | 2,705 | 2,796 | ||
Michigan Hosp. Fin. Auth. Rev. (Oakwood Hosp. Proj.) Series A, 5% 7/15/11 | 2,500 | 2,567 | ||
Troy School District 5% 5/1/11 (MBIA Insured) | 1,000 | 1,037 | ||
Wayne County Cmnty. College (College Facilities Impt. Proj.) 5.25% 7/1/09 (FGIC Insured) | 1,220 | 1,253 | ||
Wayne-Westland Cmnty. Schools 5% 5/1/10 (FSA Insured) | 1,225 | 1,261 | ||
27,317 | ||||
Minnesota - 0.2% | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): | ||||
5.25% 12/1/08 | 1,200 | 1,217 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Minnesota - continued | ||||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev. (Health Partners Oblig. Group Proj.): - - continued | ||||
5.25% 12/1/10 | $ 500 | $ 516 | ||
Saint Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (Healthpartners Oblig. Group Proj.): | ||||
5% 5/15/09 | 250 | 253 | ||
5% 5/15/10 | 200 | 204 | ||
5% 5/15/11 | 300 | 307 | ||
Saint Paul Port Auth. Lease Rev. (HealthEast Midway Campus Proj.) Series 2003 A, 5% 5/1/10 | 480 | 479 | ||
Waconia Independent School District #110 Series A, 5% 2/1/11 (FSA Insured) | 940 | 974 | ||
3,950 | ||||
Mississippi - 0.4% | ||||
Mississippi Bus. Fin. Corp. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.4%, tender 3/1/11 (c)(f) | 1,100 | 1,091 | ||
Mississippi Higher Ed. Student Ln. Series 2000 B3, 5.3% 9/1/08 (f) | 1,190 | 1,204 | ||
Mississippi Hosp. Equip. & Facilities Auth.: | ||||
(Mississippi Baptist Med. Ctr. Proj.) Series 2007 A: | ||||
5% 8/15/09 | 1,000 | 1,015 | ||
5% 8/15/11 | 1,000 | 1,025 | ||
(South Central Reg'l. Med. Ctr. Proj.) 5% 12/1/10 | 1,240 | 1,264 | ||
5,599 | ||||
Missouri - 0.9% | ||||
Bi-State Dev. Agcy. Rev. 3.95%, tender 10/1/09, LOC JPMorgan Chase Bank (c) | 6,600 | 6,590 | ||
Fenton Tax Increment Rev. (Gravois Bluffs Redev. Proj.) 5% 4/1/11 | 1,430 | 1,457 | ||
Kansas City School District Bldg. Corp. Rev. (School District Elementary School Proj.) Series B, 5% 2/1/11 (FGIC Insured) | 1,850 | 1,915 | ||
Lees Summit Indl. Dev. Auth. Sr. Living Facilities Rev. (John Knox Village Proj.) Series A, 5% 8/15/11 | 1,485 | 1,509 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Missouri - continued | ||||
Saint Louis County Indl. Dev. Auth. Sr. Living Facilities Rev. (Friendship Village West County Proj.) Series A, 5% 9/1/11 (b) | $ 1,000 | $ 1,013 | ||
Saint Louis Muni. Fin. Corp. Leasehold Rev. (Callahan Courthouse Proj.) Series A, 5.75% 2/15/14 (Pre-Refunded to 2/15/12 @ 100) (g) | 1,050 | 1,127 | ||
13,611 | ||||
Montana - 0.3% | ||||
Forsyth Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series A, 5.2%, tender 5/1/09 (c) | 4,000 | 4,080 | ||
Nebraska - 0.4% | ||||
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.) Series A, 5% 12/1/11 | 6,500 | 6,720 | ||
Nevada - 2.4% | ||||
Clark County Arpt. Rev. Series C: | ||||
5% 7/1/08 (AMBAC Insured) (f) | 2,215 | 2,239 | ||
5% 7/1/09 (AMBAC Insured) (f) | 2,700 | 2,747 | ||
5% 7/1/10 (AMBAC Insured) (f) | 1,225 | 1,254 | ||
5% 7/1/11 (AMBAC Insured) (f) | 1,790 | 1,841 | ||
Clark County Hwy. Impt. Rev. (Motor Vehicle Fuel Tax) 5% 7/1/11 (AMBAC Insured) | 3,230 | 3,349 | ||
Clark County School District: | ||||
Series 2000 A, 5.75% 6/15/17 (Pre-Refunded to 6/15/10 @ 100) (g) | 1,600 | 1,681 | ||
Series C, 5% 6/15/10 (MBIA Insured) | 1,075 | 1,107 | ||
Series D, 5% 6/15/09 (MBIA Insured) | 13,890 | 14,189 | ||
Series F, 5.375% 6/15/11 (FSA Insured) | 4,090 | 4,295 | ||
Henderson Health Care Facilities Rev. (Catholic Healthcare West Proj.) Series 2005 B, 5% 7/1/08 | 1,100 | 1,111 | ||
Lyon Co. School District Gen. Oblig. 5% 6/1/09 | 695 | 710 | ||
Washoe County School District Gen. Oblig. Series D, 5% 6/1/10 (MBIA Insured) | 2,410 | 2,480 | ||
37,003 | ||||
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)(f) | 2,500 | 2,457 | ||
3.5%, tender 2/1/09 (c)(f) | 2,000 | 1,979 | ||
4,436 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
New Jersey - 5.6% | ||||
Camden County Impt. Auth. Rev. (Cooper Health Sys. Obligated Group Proj.) Series B, 5.25% 2/15/09 | $ 1,250 | $ 1,264 | ||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev. 5% 1/1/09 (AMBAC Insured) | 1,000 | 1,016 | ||
Elizabeth Gen. Oblig. 5.25% 8/15/09 (MBIA Insured) | 1,225 | 1,260 | ||
Garden State Preservation Trust Open Space & Farmland Preservation Series B: | ||||
6.25% 11/1/09 (MBIA Insured) | 4,000 | 4,211 | ||
6.375% 11/1/11 (MBIA Insured) | 7,470 | 8,167 | ||
New Jersey Tobacco Settlement Fing. Corp. 4.375% 6/1/19 (Pre-Refunded to 6/1/13 @ 100) (g) | 2,075 | 2,087 | ||
New Jersey Tpk. Auth. Tpk. Rev. Series A: | ||||
5.75% 1/1/18 (Pre-Refunded to 1/1/10 @ 100) (g) | 3,215 | 3,356 | ||
6% 1/1/11 (MBIA Insured) | 21,785 | 23,227 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series B: | ||||
5.25% 12/15/10 (FGIC Insured) | 4,550 | 4,742 | ||
6.5% 6/15/11 (MBIA Insured) | 5,000 | 5,456 | ||
Series C, 5.5% 12/15/10 (FSA Insured) | 25,000 | 26,252 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series A, 6% 9/15/13 (Pre-Refunded to 9/15/09 @ 100) (g) | 7,000 | 7,307 | ||
88,345 | ||||
New Jersey/Pennsylvania - 0.3% | ||||
Delaware River Joint Toll Bridge Commission Bridge Rev. 5% 7/1/09 | 5,170 | 5,268 | ||
New Mexico - 0.1% | ||||
Farmington Poll. Cont. Rev. Series B, 3.55%, tender 4/1/10 (FGIC Insured) (c) | 1,900 | 1,876 | ||
New York - 16.1% | ||||
Grand Central District Mgmt. Assoc., Inc.: | ||||
5% 1/1/10 | 1,200 | 1,227 | ||
5% 1/1/12 | 1,175 | 1,217 | ||
Metropolitan Trans. Auth. Commuter Facilities Rev. | 3,635 | 3,744 | ||
New York City Gen. Oblig.: | ||||
Series 1996 B, 6.5% 8/15/09 | 3,425 | 3,600 | ||
Series 1997 H, 6% 8/1/12 (FGIC Insured) | 1,300 | 1,418 | ||
Series 2000 A, 6.5% 5/15/11 | 155 | 167 | ||
Series 2002 G, 5.5% 8/1/10 | 2,720 | 2,838 | ||
Series 2003 F, 5.5% 12/15/11 | 8,315 | 8,808 | ||
Series 2004 G, 5% 8/1/09 | 8,000 | 8,170 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
New York - continued | ||||
New York City Gen. Oblig.: - continued | ||||
Series 2005 C, 5% 8/1/12 | $ 19,770 | $ 20,595 | ||
Series 2005 D, 5% 8/1/12 | 4,925 | 5,131 | ||
Series 2005 G, 5.625% 8/1/13 (MBIA Insured) | 5,075 | 5,440 | ||
Series 2005 K: | ||||
5% 8/1/11 | 7,120 | 7,377 | ||
5% 8/1/12 | 4,360 | 4,542 | ||
Series 2005 O, 5% 6/1/12 | 7,500 | 7,804 | ||
Series A, 5.25% 11/1/14 (MBIA Insured) | 600 | 635 | ||
Series B, 5.75% 8/1/14 | 1,000 | 1,074 | ||
Series G, 5.25% 8/1/14 (AMBAC Insured) | 1,000 | 1,051 | ||
Subseries 2005 F1, 5% 9/1/15 | 3,560 | 3,750 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. 6% 6/15/33 (MBIA Insured) (Pre-Refunded to 6/15/10 @ 101) (g) | 10,000 | 10,636 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 E, 5% 2/1/09 | 2,035 | 2,072 | ||
Series A: | ||||
5.5% 11/1/26 (a) | 3,500 | 3,701 | ||
6% 11/1/28 (a) | 44,300 | 47,615 | ||
Series B, 5.25% 2/1/29 (a) | 3,100 | 3,224 | ||
New York Counties Tobacco Trust I Series B, 6.5% 6/1/35 (Pre-Refunded to 6/1/10 @ 101) (g) | 5,900 | 6,380 | ||
New York Dorm. Auth. Revs.: | ||||
(City Univ. Sys. Consolidation Proj.): | ||||
Series A: | ||||
5.75% 7/1/13 | 3,500 | 3,724 | ||
5.75% 7/1/13 (AMBAC Insured) | 1,000 | 1,066 | ||
Series C, 7.5% 7/1/10 | 12,985 | 13,641 | ||
Series B, 5.25%, tender 5/15/12 (c) | 13,000 | 13,641 | ||
New York Metropolitan Transit Auth. Rev. Series 2005 C: | ||||
5% 11/15/10 | 2,000 | 2,064 | ||
5% 11/15/11 | 2,750 | 2,856 | ||
New York Urban Dev. Corp. Rev. 5% 1/1/12 | 5,000 | 5,199 | ||
Tobacco Settlement Asset Securitization Corp. Series 1: | ||||
5.5% 7/15/24 (Pre-Refunded to 7/15/12 @ 100) (g) | 6,760 | 7,064 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (g) | 1,200 | 1,261 | ||
6% 7/15/18 (Pre-Refunded to 7/15/09 @ 101) (g) | 2,490 | 2,617 | ||
6% 7/15/20 (Pre-Refunded to 7/15/09 @ 101) (g) | 2,280 | 2,396 | ||
6% 7/15/21 (Pre-Refunded to 7/15/09 @ 101) (g) | 2,310 | 2,428 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2004 B1, 5% 6/1/09 | 3,800 | 3,884 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
New York - continued | ||||
Tobacco Settlement Fing. Corp.: - continued | ||||
Series A1: | ||||
5% 6/1/10 | $ 1,875 | $ 1,927 | ||
5.25% 6/1/12 | 150 | 150 | ||
5.25% 6/1/13 | 17,500 | 17,683 | ||
5.5% 6/1/14 | 2,700 | 2,771 | ||
Series C1: | ||||
5.5% 6/1/15 | 1,300 | 1,349 | ||
5.5% 6/1/17 | 4,200 | 4,401 | ||
252,338 | ||||
New York & New Jersey - 0.6% | ||||
Port Auth. of New York & New Jersey: | ||||
124th Series, 5% 8/1/13 (FGIC Insured) (f) | 1,200 | 1,221 | ||
127th Series, 5% 12/15/08 (AMBAC Insured) (f) | 3,510 | 3,567 | ||
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) (f) | 4,100 | 4,543 | ||
9,331 | ||||
North Carolina - 0.6% | ||||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | ||||
Series 1993 B, 7% 1/1/08 (MBIA Insured) | 600 | 609 | ||
Series A, 5.5% 1/1/10 | 3,000 | 3,095 | ||
Series C, 5% 1/1/08 | 1,190 | 1,196 | ||
Series D, 5.375% 1/1/10 | 3,730 | 3,837 | ||
8,737 | ||||
North Dakota - 0.1% | ||||
Ward County Health Care Facility Rev. 5% 7/1/10 | 1,595 | 1,622 | ||
Ohio - 1.1% | ||||
Akron Bath Copley Hosp. District Rev. (Akron Gen. Health Systems Proj.) Series A, 5% 1/1/11 | 1,000 | 1,021 | ||
Cleveland Pub. Pwr. Sys. Rev.: | ||||
Series A, 0% 11/15/09 (MBIA Insured) | 1,200 | 1,091 | ||
0% 11/15/09 (Escrowed to Maturity) (g) | 1,050 | 958 | ||
Ohio Gen. Oblig. Series 2003 D, 2.45%, tender 9/14/07 (c) | 12,300 | 12,261 | ||
Univ. of Cincinnati Gen. Receipts Series A, 5.5% 6/1/09 (FGIC Insured) | 2,000 | 2,061 | ||
17,392 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Oklahoma - 1.2% | ||||
Cherokee County Econ. Dev. Auth. Series A, 0% 11/1/11 (Escrowed to Maturity) (g) | $ 1,000 | $ 836 | ||
Grand River Dam Auth. Rev. 6.25% 6/1/11 (AMBAC Insured) | 8,940 | 9,664 | ||
Norman Reg'l. Hosp. Auth. Hosp. Rev. 5% 9/1/12 (Radian Asset Assurance, Inc. Insured) | 1,035 | 1,069 | ||
Oklahoma Dev. Fin. Auth. Rev. (Saint John Health Sys. Proj.) 5% 2/15/13 | 1,150 | 1,192 | ||
Tulsa County Indl. Auth. Cap. Impts. Rev. Series B, 5.25% 1/1/09 (FSA Insured) | 5,245 | 5,349 | ||
18,110 | ||||
Oregon - 0.5% | ||||
Beaverton Wtr. Rev. Series B, 5% 6/1/10 (FSA Insured) | 1,210 | 1,247 | ||
Oregon Dept. Administrative Svcs. Ctfs. of Prtn. Series B: | ||||
5% 5/1/09 (FSA Insured) | 600 | 612 | ||
5% 5/1/11 (FSA Insured) | 1,000 | 1,037 | ||
Tri-County Metropolitan Trans. District Rev. 5% 5/1/11 (MBIA Insured) | 5,000 | 5,186 | ||
8,082 | ||||
Pennsylvania - 2.9% | ||||
Allegheny County Arpt. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series A1, 5.75% 1/1/12 (MBIA Insured) (f) | 1,300 | 1,379 | ||
Allegheny County Hosp. Dev. Auth. Rev. (West Penn Allegheny Health Sys. Proj.) Series A, 5% 11/15/10 | 2,765 | 2,788 | ||
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 | 4,471 | ||
Allegheny County San. Auth. Swr. Rev. 6% 12/1/11 (MBIA Insured) | 1,495 | 1,607 | ||
Delaware County Auth. Hosp. Rev. (Crozer Keystone Oblig. Group Proj.) Series B: | ||||
5% 12/15/09 | 2,565 | 2,600 | ||
5% 12/15/11 | 2,835 | 2,897 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) 3.6%, tender 12/1/09 (AMBAC Insured) (c)(f) | 10,000 | 9,850 | ||
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series A, 4.35%, tender 6/1/10 (c)(f) | 2,100 | 2,097 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Pennsylvania Health Sys. Proj.) Series A, 5% 8/15/08 | 2,000 | 2,024 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Pennsylvania - continued | ||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: - continued | ||||
(UPMC Health Sys. Proj.) Series 2001 A, 5.75% 1/15/09 | $ 1,750 | $ 1,796 | ||
Pennsylvania Indl. Dev. Auth. Rev. 5.25% 7/1/10 (AMBAC Insured) | 2,750 | 2,855 | ||
Philadelphia Muni. Auth. Rev. Series B, 5.25% 11/15/11 (FSA Insured) | 3,400 | 3,563 | ||
Philadelphia School District: | ||||
Series 2005 D, 5.25% 6/1/12 (FSA Insured) | 1,465 | 1,540 | ||
Series B, 5% 4/1/11 (AMBAC Insured) | 2,160 | 2,235 | ||
Pittsburgh School District Series A, 5% 9/1/09 (MBIA Insured) | 1,600 | 1,634 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series K, 0% 7/1/12 (Escrowed to Maturity) (g) | 2,355 | 1,915 | ||
45,251 | ||||
Puerto Rico - 1.4% | ||||
Puerto Rico Convention Ctr. District Auth. Hotel Occupancy Tax Rev. Series 2006 A, 5% 7/1/10 | 2,000 | 2,046 | ||
Puerto Rico Govt. Dev. Bank Series B: | ||||
5% 12/1/10 | 8,000 | 8,203 | ||
5% 12/1/12 | 1,000 | 1,034 | ||
Univ. of Puerto Rico: | ||||
Series 06P, 5% 6/1/11 | 5,760 | 5,926 | ||
Series Q, 5% 6/1/11 | 4,825 | 4,964 | ||
22,173 | ||||
Rhode Island - 0.2% | ||||
Providence Spl. Oblig. Series 2005 E: | ||||
4% 6/1/08 (Radian Asset Assurance, Inc. Insured) | 1,000 | 1,001 | ||
5% 6/1/09 (Radian Asset Assurance, Inc. Insured) | 1,315 | 1,337 | ||
5% 6/1/10 (Radian Asset Assurance, Inc. Insured) | 1,180 | 1,206 | ||
3,544 | ||||
South Carolina - 1.1% | ||||
Charleston County Hosp. Facilities (Care Alliance Health Services Proj.) Series A: | ||||
5% 8/15/07 | 1,700 | 1,702 | ||
5% 8/15/08 | 1,690 | 1,702 | ||
Greenville County Pub. Facilities Corp. Ctfs. of Prtn. (Courthouse and Detention Proj.) 5% 4/1/10 (AMBAC Insured) | 1,450 | 1,492 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
South Carolina - continued | ||||
Greenville County School District Installment Purp. Rev. 5% 12/1/10 | $ 1,455 | $ 1,496 | ||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5% 12/1/09 | 550 | 562 | ||
Piedmont Muni. Pwr. Agcy. Elec. Rev. 5.6% 1/1/09 (MBIA Insured) | 2,345 | 2,404 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2005 B, 5% 1/1/10 (MBIA Insured) | 3,000 | 3,076 | ||
Series A, 5.5% 1/1/11 (MBIA Insured) | 3,000 | 3,136 | ||
Spartanburg County School District #5 Pub. Facilities Corp. Ctfs. of Prtn. 5% 7/1/09 (FSA Insured) | 1,000 | 1,021 | ||
16,591 | ||||
Tennessee - 1.2% | ||||
Clarksville Natural Gas Acquisition Corp. Gas Rev. 5% 12/15/09 | 7,500 | 7,673 | ||
Elizabethton Health & Edl. Facilities Board Rev. (First Mtg. Prog.) 6% 7/1/11 (MBIA Insured) | 2,005 | 2,145 | ||
Maury County Gen. Oblig. Series 2004 B, 5% 4/1/10 (MBIA Insured) | 2,000 | 2,058 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series A, 4.5% 9/1/09 (MBIA Insured) | 1,685 | 1,706 | ||
Metropolitan Govt. Nashville & Series A, 5.25% 10/15/09 | 3,795 | 3,908 | ||
Shelby County Health Edl. & Hsg. Facility Board Hosp. Rev. (Methodist Health Care Proj.) 5.5% 4/1/09 (MBIA Insured) | 1,200 | 1,226 | ||
18,716 | ||||
Texas - 10.2% | ||||
Alief Independent School District Series 2004 B, 5% 2/15/10 | 1,500 | 1,539 | ||
Austin Convention Enterprises, Inc. (Convention Ctr. Proj.) Series B: | ||||
6% 1/1/12 | 500 | 522 | ||
6% 1/1/13 | 1,270 | 1,335 | ||
6% 1/1/14 | 1,420 | 1,501 | ||
Austin Elec. Util. Sys. Rev.: | ||||
5% 11/15/10 (FSA Insured) (b) | 3,000 | 3,092 | ||
5% 11/15/11 (FSA Insured) (b) | 4,000 | 4,148 | ||
Austin Util. Sys. Rev. Series 1992 A: | ||||
0% 11/15/09 (MBIA Insured) | 5,130 | 4,664 | ||
0% 11/15/10 (MBIA Insured) | 5,300 | 4,621 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Texas - continued | ||||
Bexar County Series A: | ||||
5% 6/15/09 (FSA Insured) | $ 2,615 | $ 2,671 | ||
5% 6/15/10 (FSA Insured) | 1,000 | 1,029 | ||
Birdville Independent School District 5% 2/15/10 | 1,300 | 1,334 | ||
Brownsville Independent School District 5% 8/15/11 | 1,430 | 1,483 | ||
Bryan Wtrwks. & Swr. Sys. Rev. 5.5% 7/1/11 (FSA Insured) | 1,500 | 1,583 | ||
College Station Independent School District 5% 2/15/10 | 1,000 | 1,026 | ||
Denton County Gen. Oblig. 5% 7/15/11 (FSA Insured) | 3,065 | 3,177 | ||
Fort Bend Independent School District 5%, tender 8/15/09 (c) | 5,000 | 5,094 | ||
Fort Worth Independent School District 5% 2/15/12 | 1,500 | 1,559 | ||
Frisco Gen. Oblig. Series 2003 A, 5% 2/15/10 (FSA Insured) | 1,710 | 1,754 | ||
Harris County Health Facilities Dev. Corp. Rev. (Saint Luke's Episcopal Hosp. Proj.) Series 2001 A, 5.5% 2/15/09 | 3,710 | 3,799 | ||
Houston Cmnty. College Sys. Rev.: | ||||
5.25% 4/15/11 (FSA Insured) | 3,030 | 3,162 | ||
5.25% 4/15/12 (FSA Insured) | 2,000 | 2,105 | ||
Houston Util. Sys. Rev. Series A: | ||||
5.25% 5/15/10 (MBIA Insured) | 2,835 | 2,935 | ||
5.25% 11/15/11 (FSA Insured) | 4,430 | 4,651 | ||
Katy Independent School District Series A, 5.25% 2/15/12 | 2,000 | 2,099 | ||
Lower Colorado River Auth. Rev.: | ||||
0% 1/1/09 (Escrowed to Maturity) (g) | 3,000 | 2,830 | ||
5.25% 1/1/15 (Pre-Refunded to 1/1/11 @ 100) (g) | 5,000 | 5,205 | ||
Lubbock Gen. Oblig.: | ||||
(Wtrwks. Sys. Surplus Proj.) 5% 2/15/11 (FSA Insured) | 2,465 | 2,546 | ||
5% 2/15/10 (MBIA Insured) | 1,845 | 1,893 | ||
Lubbock Health Facilities Dev. Corp. Rev. (Carillon, Inc. Proj.) Series A, 6.5% 7/1/29 (Pre-Refunded to 7/1/09 @ 102) (g) | 4,800 | 5,130 | ||
Magnolia Independent School District 8% 8/15/11 (FGIC Insured) | 1,210 | 1,389 | ||
Montgomery County Gen. Oblig. Series B, 5%, tender 9/1/10 (FSA Insured) (c) | 1,300 | 1,336 | ||
North East Texas Independent School District 7% 2/1/11 (Pre-Refunded to 2/1/10 @ 100) (g) | 3,600 | 3,869 | ||
North Texas Tollway Auth. Dallas North Tollway Sys. Rev. Series C, 5%, tender 7/1/08 (c)(g) | 45 | 46 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Texas - continued | ||||
Northside Independent School District Series A, 3.78%, tender 6/1/09 (c) | $ 5,000 | $ 4,998 | ||
Sabine River Auth. Poll. Cont. Rev. (Texas Utils. Elec. Co. Proj.) Series A, 5.5%, tender 11/1/11 (c) | 1,000 | 1,016 | ||
San Angelo Wtrwks. & Swr. Sys. Impt. and Rfdg. Rev. 5% 4/1/10 (FSA Insured) | 1,630 | 1,675 | ||
San Antonio Elec. & Gas Sys. Rev.: | ||||
Series 2000 A, 5.75% 2/1/15 (Pre-Refunded to 2/1/10 @ 100) (g) | 5,000 | 5,219 | ||
Series B: | ||||
0% 2/1/09 (Escrowed to Maturity) (g) | 2,500 | 2,351 | ||
0% 2/1/10 (Escrowed to Maturity) (g) | 14,000 | 12,622 | ||
San Antonio Muni. Drainage Util. Sys. Rev. 5.25% 2/1/12 (MBIA Insured) | 1,545 | 1,624 | ||
San Antonio Wtr. Sys. Rev. 5% 5/15/10 (FGIC Insured) | 1,020 | 1,049 | ||
Socorro Independent School District 5% 8/15/09 | 2,070 | 2,115 | ||
Spring Branch Independent School District: | ||||
5.375% 2/1/14 | 1,090 | 1,138 | ||
5.375% 2/1/14 (Pre-Refunded to 2/1/11 @ 100) (g) | 1,700 | 1,779 | ||
Texas Gen. Oblig.: | ||||
(College Student Ln. Prog.) 5% 8/1/11 (f) | 3,000 | 3,054 | ||
Series C, 0% 4/1/09 (Escrowed to Maturity) (g) | 2,320 | 2,167 | ||
Texas Pub. Fin. Auth. Rev. (Bldg. and Procurement Commission Proj.) Series A, 5% 2/1/10 (AMBAC Insured) | 1,055 | 1,083 | ||
Texas Tech Univ. Revs. Ninth Series, 5% 2/15/11 (AMBAC Insured) | 1,250 | 1,292 | ||
Texas Wtr. Dev. Board Rev. Series B, 5% 7/15/11 | 2,780 | 2,882 | ||
Travis County Gen. Oblig. 5.25% 3/1/12 | 4,125 | 4,336 | ||
Tyler Health Facilities Dev. Corp. Hosp. Rev. (Mother Frances Hosp. Reg'l. Health Care Ctr. Proj.) 5% 7/1/07 | 1,000 | 1,000 | ||
Univ. of Texas Univ. Revs.: | ||||
(Fing. Sys. Proj.) Series A, 5.5% 8/15/09 | 1,115 | 1,151 | ||
Series B: | ||||
5% 8/15/09 | 11,255 | 11,505 | ||
5.25% 8/15/11 | 5,025 | 5,261 | ||
Wichita Falls Independent School District 0% 2/1/10 | 2,325 | 2,091 | ||
Ysleta Independent School District 0% 8/15/09 | 4,065 | 3,730 | ||
160,265 | ||||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Utah - 1.3% | ||||
Salt Lake County Wtr. Conservancy District Rev. Series A: | ||||
0% 10/1/11 (AMBAC Insured) | $ 3,800 | $ 3,178 | ||
0% 10/1/12 (AMBAC Insured) | 3,800 | 3,038 | ||
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 | 1,763 | ||
Utah Gen. Oblig. Series 2006 B, 5.375% 7/1/10 | 9,475 | 9,868 | ||
20,718 | ||||
Virginia - 0.1% | ||||
Amelia County Indl. Dev. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) 4.05%, tender 4/1/08 (c)(f) | 1,600 | 1,598 | ||
Washington - 2.4% | ||||
Chelan County Pub. Util. District #1 Rev. Series B, 5% 7/1/11 (FGIC Insured) | 1,190 | 1,234 | ||
Clark County Pub. Util. District #1 Elec. Rev.: | ||||
5% 1/1/11 (MBIA Insured) | 1,680 | 1,735 | ||
5.25% 1/1/11 (FSA Insured) | 1,935 | 2,014 | ||
King County School District #409, Tahoma 5% 6/1/11 (FSA Insured) | 1,740 | 1,803 | ||
Pierce County Gen. Oblig. 5.75% 8/1/13 (Pre-Refunded to 8/1/10 @ 100) (g) | 1,155 | 1,215 | ||
Port of Seattle Rev. Series D, 5.75% 11/1/15 | 3,640 | 3,880 | ||
Snohomish County Pub. Hosp. District #2 (Stevens Health Care Proj.) 4.5% 12/1/09 (FGIC Insured) | 1,000 | 1,012 | ||
Snohomish County School District #2, Everett: | ||||
5% 6/1/09 (FSA Insured) | 1,045 | 1,067 | ||
5% 6/1/10 (FSA Insured) | 1,000 | 1,029 | ||
Vancouver Wtr. & Swr. Rev. 5.25% 6/1/11 | 1,000 | 1,045 | ||
Washington Gen. Oblig. Series A: | ||||
5% 7/1/11 (FGIC Insured) | 1,000 | 1,038 | ||
5.5% 7/1/11 (Pre-Refunded to 7/1/10 @ 100) (g) | 3,500 | 3,653 | ||
5.625% 7/1/25 (Pre-Refunded to 7/1/10 @ 100) (g) | 13,000 | 13,619 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2 Rev. Series A, 5.75% 7/1/08 | 3,000 | 3,056 | ||
37,400 | ||||
Wisconsin - 0.9% | ||||
Milwaukee County Gen. Oblig. Series A, 0% 12/1/10 (FGIC Insured) | 3,370 | 2,923 | ||
Municipal Bonds - continued | ||||
Principal Amount (000s) | Value (000s) | |||
Wisconsin - continued | ||||
Wisconsin Gen. Oblig. Series 1, 5% 5/1/10 | $ 2,500 | $ 2,571 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Marshfield Clinic Proj.): | ||||
Series 2006 A, 5% 2/15/13 | 875 | 893 | ||
Series B, 6.25% 2/15/10 | 1,015 | 1,062 | ||
(Wheaton Franciscan Services Proj.): | ||||
5% 8/15/11 | 1,315 | 1,338 | ||
5.75% 8/15/11 | 1,000 | 1,050 | ||
(Wheaton Franciscan Svcs., Inc. Proj.) Series A: | ||||
5% 8/15/09 | 1,765 | 1,783 | ||
5% 8/15/10 | 1,870 | 1,897 | ||
13,517 | ||||
TOTAL MUNICIPAL BONDS (Cost $1,544,212) | 1,529,064 | |||
Municipal Notes - 2.0% | ||||
New Jersey - 1.0% | ||||
New Jersey Tpk. Auth. Tpk. Rev. Participating VRDN | 16,000 | 16,000 | ||
Texas - 1.0% | ||||
San Antonio Elec. & Gas Sys. Rev. Participating VRDN | 16,000 | 16,000 | ||
TOTAL MUNICIPAL NOTES (Cost $31,992) | 32,000 | |||
Money Market Funds - 0.3% | ||||
Shares | ||||
Fidelity Municipal Cash Central Fund, 3.81% (d)(e) | 4,869,900 | 4,870 | ||
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $1,581,074) | 1,565,934 | |||
NET OTHER ASSETS - 0.0% | (746) | |||
NET ASSETS - 100% | $ 1,565,188 |
Swap Agreements | |||||
Expiration Date | Notional Amount (000s) | Value (000s) | |||
Interest Rate Swaps | |||||
Receive quarterly a fixed rate equal to 3.4% and pay quarterly a floating rate based on BMA Municipal Swap Index with Merrill Lynch, Inc. | June 2012 | $ 44,000 | $ (599) | ||
Receive quarterly a floating rate based on BMA Municipal Swap Index and pay quarterly a fixed rate equal to 3.737% with Citibank | June 2018 | 20,000 | 477 | ||
$ 64,000 | $ (122) |
Security Type Abbreviation |
VRDN | - | VARIABLE RATE DEMAND NOTE |
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) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(e) 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. |
(f) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(g) Security collateralized by an amount sufficient to pay interest and principal. |
(h) Provides evidence of ownership in one or more underlying municipal bonds. |
(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 $8,653,000 or 0.6% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
Regents of the Univ. of California Rev. (UCLA Med. Ctr. Proj.) 4.55% 12/1/09 | 3/6/02 | $ 8,607 |
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 | $ 9 |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows: |
General Obligations | 40.3% |
Escrowed/Pre-Refunded | 14.7% |
Special Tax | 9.1% |
Electric Utilities | 9.0% |
Health Care | 6.3% |
Transportation | 6.2% |
Education | 5.7% |
Others* (individually less than 5%) | 8.7% |
100.0% |
* Includes cash equivalents and net |
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.
Semiannual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | June 30, 2007 (Unaudited) | |
Assets | ||
Investment in securities, at value - Unaffiliated issuers (cost $1,576,204) | $ 1,561,064 | |
Fidelity Central Funds (cost $4,870) | 4,870 | |
Total Investments (cost $1,581,074) | $ 1,565,934 | |
Cash | 49 | |
Receivable for fund shares sold | 1,161 | |
Interest receivable | 21,219 | |
Distributions receivable from Fidelity Central Funds | 9 | |
Prepaid expenses | 4 | |
Other receivables | 309 | |
Total assets | 1,588,685 | |
Liabilities | ||
Payable for investments purchased | $ 7,000 | |
Delayed delivery | 12,829 | |
Payable for fund shares redeemed | 1,207 | |
Distributions payable | 1,390 | |
Swap agreements, at value | 122 | |
Accrued management fee | 475 | |
Distribution fees payable | 10 | |
Other affiliated payables | 433 | |
Other payables and accrued expenses | 31 | |
Total liabilities | 23,497 | |
Net Assets | $ 1,565,188 | |
Net Assets consist of: | ||
Paid in capital | $ 1,588,361 | |
Distributions in excess of net investment income | (9) | |
Accumulated undistributed net realized gain (loss) on investments | (7,902) | |
Net unrealized appreciation (depreciation) on investments | (15,262) | |
Net Assets | $ 1,565,188 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | June 30, 2007 (Unaudited) | |
Calculation of Maximum Offering Price | $ 10.14 | |
Maximum offering price per share (100/97.25 of $10.14) | $ 10.43 | |
Class T: | $ 10.13 | |
Maximum offering price per share (100/97.25 of $10.13) | $ 10.42 | |
Class B: | $ 10.14 | |
Class C: | $ 10.13 | |
Short-Intermediate Municipal Income: | $ 10.13 | |
Institutional Class: | $ 10.13 |
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.
Semiannual Report
Statement of Operations
Amounts in thousands | Six months ended June 30, 2007 (Unaudited) | |
Investment Income | ||
Interest | $ 27,361 | |
Income from Fidelity Central Funds | 9 | |
Total income | 27,370 | |
Expenses | ||
Management fee | $ 2,834 | |
Transfer agent fees | 710 | |
Distribution fees | 63 | |
Accounting fees and expenses | 146 | |
Custodian fees and expenses | 11 | |
Independent trustees' compensation | 2 | |
Registration fees | 82 | |
Audit | 29 | |
Legal | 5 | |
Miscellaneous | 9 | |
Total expenses before reductions | 3,891 | |
Expense reductions | (507) | 3,384 |
Net investment income | 23,986 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (1,813) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (8,144) | |
Swap agreements | (122) | |
Total change in net unrealized appreciation (depreciation) | (8,266) | |
Net gain (loss) | (10,079) | |
Net increase (decrease) in net assets resulting from operations | $ 13,907 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
Amounts in thousands | Six months ended | Year ended |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income | $ 23,986 | $ 48,409 |
Net realized gain (loss) | (1,813) | (4,249) |
Change in net unrealized appreciation (depreciation) | (8,266) | 1,984 |
Net increase (decrease) in net assets resulting | 13,907 | 46,144 |
Distributions to shareholders from net investment income | (23,993) | (48,409) |
Share transactions - net increase (decrease) | 55,343 | (188,103) |
Redemption fees | 16 | 13 |
Total increase (decrease) in net assets | 45,273 | (190,355) |
Net Assets | ||
Beginning of period | 1,519,915 | 1,710,270 |
End of period (including distributions in excess of net investment income of $9 and distributions in excess of net investment income of $2, respectively) | $ 1,565,188 | $ 1,519,915 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.21 | $ 10.21 | $ 10.39 | $ 10.50 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .149 | .292 | .268 | .250 | .115 |
Net realized and unrealized gain (loss) | (.071) | (.001) | (.177) | (.090) | .071 |
Total from investment operations | .078 | .291 | .091 | .160 | .186 |
Distributions from net investment income | (.148) | (.291) | (.268) | (.251) | (.111) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.148) | (.291) | (.271) | (.270) | (.176) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, | $ 10.14 | $ 10.21 | $ 10.21 | $ 10.39 | $ 10.50 |
Total Return B, C, D | .77% | 2.89% | .89% | 1.55% | 1.78% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | .70% A | .65% | .65% | .65% | .65% A |
Expenses net of fee waivers, if any | .70% A | .65% | .65% | .65% | .65% A |
Expenses net of all reductions | .63% A | .56% | .58% | .64% | .64% A |
Net investment income | 2.94% A | 2.86% | 2.61% | 2.41% | 2.52% A |
Supplemental Data | |||||
Net assets, end of period | $ 9 | $ 10 | $ 14 | $ 12 | $ 9 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.19 | $ 10.20 | $ 10.37 | $ 10.48 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .146 | .281 | .257 | .238 | .110 |
Net realized and unrealized gain (loss) | (.060) | (.011) | (.167) | (.089) | .050 |
Total from investment operations | .086 | .270 | .090 | .149 | .160 |
Distributions from net investment income | (.146) | (.280) | (.257) | (.240) | (.105) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.146) | (.280) | (.260) | (.259) | (.170) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 10.19 | $ 10.20 | $ 10.37 | $ 10.48 |
Total Return B, C, D | .84% | 2.69% | .88% | 1.44% | 1.54% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | .76% A | .75% | .76% | .76% | .77% A |
Expenses net of fee waivers, if any | .76% A | .75% | .76% | .76% | .77% A |
Expenses net of all reductions | .69% A | .66% | .69% | .75% | .76% A |
Net investment income | 2.88% A | 2.76% | 2.50% | 2.30% | 2.41% A |
Supplemental Data | |||||
Net assets, end of period | $ 9 | $ 13 | $ 15 | $ 20 | $ 12 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.20 | $ 10.21 | $ 10.39 | $ 10.49 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .112 | .215 | .190 | .172 | .081 |
Net realized and unrealized gain (loss) | (.060) | (.012) | (.177) | (.080) | .059 |
Total from investment operations | .052 | .203 | .013 | .092 | .140 |
Distributions from net investment income | (.112) | (.213) | (.190) | (.173) | (.075) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.112) | (.213) | (.193) | (.192) | (.140) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, end of period | $ 10.14 | $ 10.20 | $ 10.21 | $ 10.39 | $ 10.49 |
Total Return B, C, D | .51% | 2.02% | .13% | .89% | 1.34% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | 1.43% A | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of fee waivers, if any | 1.43% A | 1.41% | 1.41% | 1.40% | 1.40% A |
Expenses net of all reductions | 1.36% A | 1.31% | 1.34% | 1.39% | 1.39% A |
Net investment income | 2.21% A | 2.11% | 1.85% | 1.65% | 1.78% A |
Supplemental Data | |||||
Net assets, end of period | $ 2 | $ 2 | $ 3 | $ 4 | $ 2 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 H | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income E | .107 | .204 | .178 | .159 | .077 |
Net realized and unrealized gain (loss) | (.060) | (.011) | (.176) | (.080) | .048 |
Total from investment operations | .047 | .193 | .002 | .079 | .125 |
Distributions from net investment income | (.107) | (.203) | (.179) | (.160) | (.070) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.107) | (.203) | (.182) | (.179) | (.135) |
Redemption fees added to paid in capital E, J | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 |
Total Return B, C, D | .46% | 1.92% | .02% | .77% | 1.20% |
Ratios to Average Net Assets F, I | |||||
Expenses before reductions | 1.53% A | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of fee waivers, if any | 1.53% A | 1.51% | 1.52% | 1.52% | 1.50% A |
Expenses net of all reductions | 1.46% A | 1.41% | 1.45% | 1.51% | 1.49% A |
Net investment income | 2.11% A | 2.01% | 1.74% | 1.53% | 1.67% A |
Supplemental Data | |||||
Net assets, end of period | $ 5 | $ 7 | $ 10 | $ 11 | $ 8 |
Portfolio turnover rate G | 26% A | 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
I 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.
J Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Short-Intermediate Municipal Income
Six months ended June 30, 2007 | Years ended December 31, | |||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 | 2002 | |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 | $ 10.27 |
Income from Investment Operations | ||||||
Net investment income D | .158 | .307 | .284 | .268 | .283 | .336 |
Net realized and unrealized gain (loss) | (.060) | (.010) | (.177) | (.080) | .030 | .317 |
Total from investment operations | .098 | .297 | .107 | .188 | .313 | .653 |
Distributions from net investment income | (.158) | (.307) | (.284) | (.269) | (.283) | (.339) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.070) | (.064) |
Total distributions | (.158) | (.307) | (.287) | (.288) | (.353) | (.403) |
Redemption fees added to paid in capital D, H | - | - | - | - | - | - |
Net asset value, | $ 10.13 | $ 10.19 | $ 10.20 | $ 10.38 | $ 10.48 | $ 10.52 |
Total Return B, C | .97% | 2.95% | 1.06% | 1.82% | 3.01% | 6.47% |
Ratios to Average Net Assets E, G | ||||||
Expenses before reductions | .50% A | .49% | .49% | .49% | .49% | .49% |
Expenses net of fee waivers, if any | .50% A | .49% | .49% | .48% | .49% | .49% |
Expenses net of all reductions | .43% A | .41% | .42% | .47% | .47% | .45% |
Net investment income | 3.14% A | 3.01% | 2.77% | 2.57% | 2.69% | 3.23% |
Supplemental Data | ||||||
Net assets, end of | $ 1,536 | $ 1,485 | $ 1,665 | $ 1,841 | $ 1,843 | $ 1,683 |
Portfolio turnover rate F | 26% A | 28% | 27% | 45% | 34% | 38% |
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 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
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. 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.
Semiannual Report
Financial Highlights - Institutional Class
Six months ended June 30, 2007 | Years ended December 31, | ||||
(Unaudited) | 2006 | 2005 | 2004 | 2003 G | |
Selected Per-Share Data | |||||
Net asset value, | $ 10.20 | $ 10.20 | $ 10.38 | $ 10.49 | $ 10.49 |
Income from Investment Operations | |||||
Net investment income D | .157 | .306 | .283 | .265 | .125 |
Net realized and unrealized gain (loss) | (.070) | - | (.176) | (.088) | .059 |
Total from investment operations | .087 | .306 | .107 | .177 | .184 |
Distributions from net investment income | (.157) | (.306) | (.284) | (.268) | (.119) |
Distributions from net realized gain | - | - | (.003) | (.019) | (.065) |
Total distributions | (.157) | (.306) | (.287) | (.287) | (.184) |
Redemption fees added to paid in capital D, I | - | - | - | - | - |
Net asset value, end of period | $ 10.13 | $ 10.20 | $ 10.20 | $ 10.38 | $ 10.49 |
Total Return B, C | .85% | 3.05% | 1.05% | 1.71% | 1.77% |
Ratios to Average Net Assets E, H | |||||
Expenses before reductions | .53% A | .50% | .49% | .49% | .48% A |
Expenses net of fee waivers, if any | .53% A | .50% | .49% | .49% | .48% A |
Expenses net of all reductions | .47% A | .41% | .42% | .48% | .47% A |
Net investment income | 3.11% A | 3.01% | 2.77% | 2.57% | 2.69% A |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 3,255 | $ 3,357 | $ 2,625 | $ 1,253 | $ 414 |
Portfolio turnover rate F | 26% A | 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 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period July 23, 2003 (commencement of sale of shares) to December 31, 2003.
H 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.
I Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2007 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. 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 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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies.
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, 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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned, with any distributions receivable as of period end included in Distributions receivable from Fidelity Central Funds 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 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. The Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.
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 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 federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 2,491 | |
Unrealized depreciation | (17,631) | |
Net unrealized appreciation (depreciation) | $ (15,140) | |
Cost for federal income tax purposes | $ 1,581,074 |
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
New Accounting Pronouncement. 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.
4. 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 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.
Swap Agreements. The Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.
Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.
Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are
Semiannual Report
4. Operating Policies - continued
Swap Agreements - continued
realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the Fund's Schedule of Investments under the caption "Swap Agreements."
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $233,582 and $195,478, respectively.
6. 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 annualized 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, 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 | 0% | .25% | $ 9 | $ - |
Class T | 0% | .25% | 14 | - |
Class B | .65% | .25% | 10 | 7 |
Class C | .75% | .25% | 30 | 4 |
$ 63 | $ 11 |
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Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
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 2.75% for selling Class A and Class T shares (3.75% for Class A shares prior to April 1, 2007), 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 and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained | |
Class A | $ 1 |
Class T | - |
Class B* | 2 |
Class C* | 3 |
$ 6 |
* 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.
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
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6. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees - continued
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 | $ 4 | .09 |
Class T | 5 | .10 |
Class B | 1 | .11 |
Class C | 3 | .11 |
Short-Intermediate Municipal Income | 695 | .09 |
Institutional Class | 2 | .12 |
$ 710 |
* Annualized
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.
7. 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 $2 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. 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 $11 and $146, respectively. During the period, credits reduced each class' transfer agent expense as noted in the table below.
Transfer Agent | ||
Class A | $ 2 | |
Class T | 2 | |
Class B | 1 | |
Class C | 1 | |
Short-Intermediate Municipal Income | 340 | |
Institutional Class | 1 | |
$ 347 |
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Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
9. 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.
In September 2006, FIIOC, the Fund's transfer agent, 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. In March 2007, FIIOC converted the relevant Class B shares to Class A shares and recorded the conversion in the books and records of the Fund which did not result in a material impact to the Fund's reported net assets or results of operations in the accompanying financial statements. FIIOC has reimbursed the Fund for related audit and legal expenses and, beginning in June 2007, remediated affected shareholders.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended | Year ended | |
From net investment income | ||
Class A | $ 139 | $ 317 |
Class T | 162 | 388 |
Class B | 24 | 63 |
Class C | 62 | 157 |
Short-Intermediate Municipal Income | 23,552 | 47,385 |
Institutional Class | 54 | 99 |
Total | $ 23,993 | $ 48,409 |
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11. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
Six months ended | Year ended | Six months ended | Year ended | |
Class A | ||||
Shares sold | 47 | 246 | $ 478 | $ 2,516 |
Reinvestment of distributions | 11 | 25 | 115 | 253 |
Shares redeemed | (162) | (701) | (1,655) | (7,154) |
Net increase (decrease) | (104) | (430) | $ (1,062) | $ (4,385) |
Class T | ||||
Shares sold | 183 | 302 | $ 1,869 | $ 3,071 |
Reinvestment of distributions | 13 | 30 | 131 | 307 |
Shares redeemed | (512) | (564) | (5,213) | (5,739) |
Net increase (decrease) | (316) | (232) | $ (3,213) | $ (2,361) |
Class B | ||||
Shares sold | 46 | 27 | $ 472 | $ 268 |
Reinvestment of distributions | 2 | 4 | 16 | 45 |
Shares redeemed | (63) | (138) | (645) | (1,399) |
Net increase (decrease) | (15) | (107) | $ (157) | $ (1,086) |
Class C | ||||
Shares sold | 50 | 162 | $ 520 | $ 1,641 |
Reinvestment of distributions | 4 | 9 | 39 | 96 |
Shares redeemed | (164) | (536) | (1,671) | (5,451) |
Net increase (decrease) | (110) | (365) | $ (1,112) | $ (3,714) |
Short-Intermediate Municipal Income | ||||
Shares sold | 22,742 | 38,594 | $ 231,480 | $ 392,661 |
Reinvestment of distributions | 1,568 | 3,345 | 15,946 | 34,020 |
Shares redeemed | (18,324) | (59,417) | (186,459) | (603,968) |
Net increase (decrease) | 5,986 | (17,478) | $ 60,967 | $ (177,287) |
Institutional Class | ||||
Shares sold | 99 | 258 | $ 1,001 | $ 2,623 |
Reinvestment of distributions | 2 | 5 | 22 | 47 |
Shares redeemed | (109) | (191) | (1,103) | (1,940) |
Net increase (decrease) | (8) | 72 | $ (80) | $ 730 |
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Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Short-Intermediate Municipal Income Fund
Each year, typically in June, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.
The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Fixed-Income Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.
At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.
In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
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Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers. In addition, the Board considered the trading resources that are an integrated part of the fixed-income portfolio management investment process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.
The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.
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Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that, since the last Advisory Contract renewals in June 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.
Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, as available, the cumulative total returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of Fidelity Short-Intermediate Municipal Income (retail class) and Class C show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
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Fidelity Short-Intermediate Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Short-Intermediate Municipal Income (retail class) was in the second quartile for the one- and three-year periods and the third quartile for the five-year period. The Board also stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to be taken by FMR to improve the fund's below-benchmark performance.
Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.
Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
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Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 17% means that 83% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Fidelity Short-Intermediate Municipal Income Fund
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The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.
In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expenses of each of Class A, Class T, Class B, Fidelity Short-Intermediate Municipal Income (retail class), and Institutional Class ranked below its competitive median for 2006, and the total expenses of Class C ranked above its competitive median for 2006. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.
Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
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Board Approval of Investment Advisory Contracts and
Management Fees - continued
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions, including reductions that occur through operation of the transfer agent agreement. The transfer agent fee varies in part based on the number of accounts in the fund. If the number of accounts decreases or the average account size increases, the overall transfer agent fee rate decreases.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
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The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.
Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
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Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Research & Analysis Company
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-USAN-0807
1.803550.103
(Fidelity Investment logo)(registered trademark)
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
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 Fidelity Municipal 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 Fidelity Municipal Trust's (the "Trust") 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) | Not applicable. |
(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: | August 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: | August 16, 2007 |
By: | /s/Joseph B. Hollis |
Joseph B. Hollis | |
Chief Financial Officer | |
Date: | August 16, 2007 |