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)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | December 31 |
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Date of reporting period: | December 31, 2014 |
Item 1. Reports to Stockholders
Fidelity®
Conservative Income Municipal Bond
Fund -
Fidelity Conservative Income Municipal Bond
Fund
Institutional Class
Annual Report
December 31, 2014
(Fidelity Cover Art)
Contents
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of the fund's holdings. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
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Trustees and Officers |
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Distributions |
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Board Approval of Investment Advisory Contracts and Management Fees |
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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/proxyvotingresults 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 LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2014 | Past 1 | Life of |
Fidelity Conservative Income Municipal Bond Fund | 0.36% | 0.48% |
Institutional Class | 0.46% | 0.58% |
A From October 15, 2013.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Conservative Income Municipal Bond Fund, a class of the fund, on October 15, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Barclays® Municipal 1 Year Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds posted a strong result for the 12 months ending December 31, 2014, driven by steady demand, tight supply and improving credit fundamentals. The Barclays® Municipal Bond Index returned 9.05%, significantly outperforming the U.S. investment-grade taxable bond market. Munis were driven, in part, by continued economic growth, declining long-term interest rates, and the relative attractiveness of U.S. markets amid global economic and political uncertainty. More specific to munis, prices rose as investors became more upbeat about the fundamental outlook of many state and local governments. Additionally, a steady stream of municipal bond cash flows - coupon payments, maturities and those due to early bond calls by issuers - fueled reinvestment. Meanwhile, investors took solace that the financial distress experienced by Puerto Rico, Detroit and a few California cities in bankruptcy did not expand to the broader market. Lastly, the tax advantages of munis had particular appeal due to the higher federal tax rates for top earners that took effect in 2013, as well as the new 3.8% Medicare tax on unearned, non-municipal investment income.
Comments from Douglas McGinley, Portfolio Manager of Fidelity® Conservative Income Municipal Bond Fund: For the year, the fund's Retail Class and Institutional Class shares returned 0.36% and 0.46%, respectively, compared with 0.35% for the Fidelity Conservative Income Municipal Bond Composite IndexSM, an equal weighted blend of the Barclays® Municipal 1 Year Bond Index and the iMoneyNetSM All Tax-Free National Retail Money Market Funds Average. In comparison, the Barclays® Municipal 1 Year Bond Index rose 0.58%. We had a lot of success finding attractively valued variable-rate securities. Anchoring the portfolio with this higher-yielding paper - which ranged from about 30% to around 60% of assets during the period - allowed us to buy higher-yielding, longer-term fixed-rate securities. Blending these investments with the short-term, variable-rate holdings allowed us to provide additional yield while simultaneously subduing interest-rate risk. Among fixed-rate alternatives, certain sectors provided good risk/reward opportunities, including select hospitals and airports.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2014 to December 31, 2014).
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. 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 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. 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.
Annual Report
| Annualized | Beginning | Ending | Expenses Paid |
Conservative Income Municipal Bond | .40% |
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|
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Actual |
| $ 1,000.00 | $ 1,000.90 | $ 2.02 |
Hypothetical A |
| $ 1,000.00 | $ 1,023.19 | $ 2.04 |
Institutional Class | .30% |
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|
|
Actual |
| $ 1,000.00 | $ 1,001.40 | $ 1.51 |
Hypothetical A |
| $ 1,000.00 | $ 1,023.69 | $ 1.53 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Effective Maturity Diversification as of December 31, 2014 | |||
Days | % of fund's | % of fund's investments | |
1 - 7 | 44.6 | 63.5 | |
8 - 30 | 0.3 | 0.7 | |
31 - 60 | 4.1 | 2.7 | |
61 - 90 | 0.4 | 1.5 | |
91 - 180 | 7.9 | 3.3 | |
> 180 | 42.7 | 28.3 |
The date shown for securities represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and permissible maturity shortening features other than interest rate resets. |
Top Five States as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
Illinois | 16.1 | 17.4 |
Texas | 15.8 | 13.0 |
Indiana | 8.0 | 3.3 |
Florida | 7.1 | 4.7 |
New Jersey | 5.0 | 2.3 |
Top Five Sectors as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
Health Care | 17.7 | 15.0 |
Industrial Development | 17.0 | 17.9 |
Electric Utilities | 16.1 | 9.4 |
General Obligations | 14.5 | 10.6 |
Transportation | 11.3 | 7.3 |
Weighted Average Maturity as of December 31, 2014 | ||
|
| 6 months ago |
Years | 0.9 | 0.6 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2014 | ||
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| 6 months ago |
Years | 0.8 | 0.6 |
Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | AAA 1.0% |
| ![]() | AAA 1.4% |
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![]() | AA,A 52.7% |
| ![]() | AA,A 33.8% |
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![]() | BBB 3.0% |
| ![]() | BBB 2.7% |
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![]() | BB and Below 0.1% |
| ![]() | BB and Below 0.0% |
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![]() | Not Rated 3.1% |
| ![]() | Not Rated 0.0% |
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![]() | Short-Term |
| ![]() | Short-Term |
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We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2014
Showing Percentage of Net Assets
Municipal Bonds - 59.7% | ||||
| Principal Amount | Value | ||
Alabama - 0.2% | ||||
Mobile Indl. Dev. Board Poll. Cont. Rev. Bonds Series 2009 E, 1.65%, tender 3/20/17 (b) | $ 350,000 | $ 354,949 | ||
Alaska - 0.2% | ||||
Anchorage Gen. Oblig.: | ||||
Series 2005 A, 4% 3/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 100,000 | 100,634 | ||
Series 2005 D, 5% 6/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 100,000 | 101,956 | ||
North Slope Borough Gen. Oblig. Series 2011 B: | ||||
4% 6/30/15 | 75,000 | 76,406 | ||
5% 6/30/15 | 40,000 | 40,939 | ||
| 319,935 | |||
Arizona - 1.4% | ||||
Arizona Board of Regents Arizona State Univ. Rev. Series 2011, 3% 8/1/17 | 125,000 | 131,260 | ||
Arizona Ctfs. of Prtn.: | ||||
Series 2008 A, 4% 9/1/17 (FSA Insured) | 125,000 | 134,826 | ||
Series 2010 A, 5% 10/1/17 (FSA Insured) | 150,000 | 166,067 | ||
Series 2013 A, 3% 10/1/17 | 100,000 | 104,366 | ||
Series 2013 B, 5% 10/1/16 | 235,000 | 252,446 | ||
Arizona Health Facilities Auth. Rev.: | ||||
(Scottsdale Lincoln Hospitals Proj.) Series 2014 A, 5% 12/1/17 | 400,000 | 443,956 | ||
Series 2008 D, 5% 1/1/17 | 125,000 | 135,246 | ||
Arizona School Facilities Board Ctfs. of Prtn.: | ||||
Series 2005 A1, 5% 9/1/17 (Pre-Refunded to 9/1/15 @ 100) | 60,000 | 61,890 | ||
Series 2008: | ||||
4.375% 9/1/16 | 55,000 | 58,334 | ||
5.5% 9/1/16 | 120,000 | 129,488 | ||
Series 2013 A2, 5% 9/1/17 | 100,000 | 110,695 | ||
Arizona School Facilities Board Rev. Series 2005, 5% 1/1/15 | 325,000 | 325,042 | ||
Arizona State Lottery Rev. Series 2010 A, 3% 7/1/16 (FSA Insured) | 175,000 | 181,655 | ||
Maricopa County Indl. Dev. Auth. Health Facilities Rev. Series 2007 A, 4.125% 7/1/15 | 270,000 | 275,079 | ||
Phoenix Gen. Oblig. Series 2007 A, 5% 7/1/15 | 70,000 | 71,653 | ||
Tucson Gen. Oblig. Series 2005 E, 3.75% 7/1/16 (FGIC Insured) | 55,000 | 55,891 | ||
| 2,637,894 | |||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
California - 0.9% | ||||
California Gen. Oblig.: | ||||
4.5% 3/1/15 | $ 100,000 | $ 100,721 | ||
5% 3/1/16 | 125,000 | 125,889 | ||
California Health Facilities Fing. Auth. Rev. Series 2011 A, 5% 3/1/16 | 325,000 | 342,176 | ||
California Statewide Cmntys. Dev. Auth. Poll. Cont. Rev. Bonds Series 2006 C, 4.25%, tender 11/1/16 (FGIC Insured) (b) | 175,000 | 186,177 | ||
California Statewide Cmntys. Dev. Auth. Rev.: | ||||
Series 2005 A: | ||||
5% 3/1/17 | 75,000 | 75,432 | ||
5% 3/1/18 | 350,000 | 352,139 | ||
Series 2007 F, 5.25% 7/1/16 (FSA Insured) | 100,000 | 107,040 | ||
5% 3/1/15 | 400,000 | 403,008 | ||
Los Angeles Dept. Arpt. Rev. Series 2009 D, 5% 5/15/15 | 60,000 | 61,040 | ||
Los Angeles Dept. of Wtr. & Pwr. Rev. Series 2011 A, 5% 7/1/15 | 45,000 | 46,062 | ||
| 1,799,684 | |||
Colorado - 1.2% | ||||
Colorado Health Facilities Auth. Rev.: | ||||
(Parkview Med. Ctr., Inc. Proj.) Series 2012, 4% 9/1/16 | 140,000 | 147,364 | ||
Bonds Series 2008 C2, 4%, tender 11/12/15 (b) | 100,000 | 103,182 | ||
Series 2008 D1, 5% 10/1/16 | 75,000 | 80,582 | ||
Series 2009 A: | ||||
4% 7/1/15 | 150,000 | 150,161 | ||
5% 7/1/15 | 330,000 | 337,428 | ||
5% 7/1/16 | 200,000 | 212,908 | ||
Series 2011 A: | ||||
3.5% 2/1/15 | 100,000 | 100,266 | ||
5% 2/1/16 | 125,000 | 131,061 | ||
5% 2/1/17 | 150,000 | 162,452 | ||
5% 2/1/18 | 70,000 | 77,970 | ||
4.125% 7/1/17 | 200,000 | 200,222 | ||
5.125% 10/1/17 | 50,000 | 55,423 | ||
5.125% 11/15/17 | 185,000 | 200,266 | ||
Denver City & County Arpt. Rev.: | ||||
Series 2005 A, 5% 11/15/17 (XL Cap. Assurance, Inc. Insured) | 75,000 | 77,860 | ||
Series 2011 A, 4% 11/15/17 (c) | 50,000 | 54,290 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Colorado - continued | ||||
Denver City & County Arpt. Rev.: - continued | ||||
Series 2012 A, 4% 11/15/17 (c) | $ 50,000 | $ 54,290 | ||
Univ. of Colorado Enterprise Sys. Rev. Series 2012 A1, 2% 6/1/15 | 75,000 | 75,562 | ||
| 2,221,287 | |||
Connecticut - 2.5% | ||||
Connecticut Gen. Oblig.: | ||||
Series 2007 B, 5% 5/1/15 | 245,000 | 248,832 | ||
Series 2009 A, 5% 2/15/15 | 200,000 | 201,162 | ||
Series 2009 B, 5% 3/1/15 | 250,000 | 251,990 | ||
0.81% 5/15/17 (b) | 3,000,000 | 3,033,090 | ||
Connecticut Health & Edl. Facilities Auth. Rev.: | ||||
Bonds (Ascension Health Cr. Group Proj.) Series 1998 B, 1.55%, tender 2/1/17 (b) | 280,000 | 284,707 | ||
Series 2012 D, 5% 7/1/18 | 225,000 | 250,756 | ||
Series N, 4% 7/1/17 | 90,000 | 95,994 | ||
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev. Series 2008 I, 3% 2/1/15 | 100,000 | 100,231 | ||
New Haven Gen. Oblig. Series 2013 B, 3% 9/1/16 (FSA Insured) | 200,000 | 206,672 | ||
| 4,673,434 | |||
Delaware - 0.0% | ||||
Delaware Gen. Oblig. Series 2009 B, 5% 1/1/15 | 85,000 | 85,012 | ||
Delaware, New Jersey - 0.6% | ||||
Delaware River & Bay Auth. Rev. Series 2014 C, 5% 1/1/18 | 1,000,000 | 1,114,570 | ||
District Of Columbia - 0.2% | ||||
District of Columbia Ctfs. of Prtn. 5.25% 1/1/17 (Pre-Refunded to 1/1/16 @ 100) | 60,000 | 62,959 | ||
District of Columbia Gen. Oblig. Series 1998 B, 6% 6/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 100,000 | 102,367 | ||
Metropolitan Washington DC Arpts. Auth. Sys. Rev. Series 2012 A, 5% 10/1/18 (c) | 200,000 | 226,976 | ||
| 392,302 | |||
Florida - 5.5% | ||||
Broward County Arpt. Sys. Rev. Series 2013 B, 3% 10/1/15 | 100,000 | 102,058 | ||
Broward County School Board Ctfs. of Prtn.: | ||||
Series 2004 C, 5.25% 7/1/15 (FSA Insured) | 75,000 | 76,799 | ||
Series 2006 A, 4.25% 7/1/16 (FSA Insured) | 60,000 | 63,217 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Florida - continued | ||||
Broward County School Board Ctfs. of Prtn.: - continued | ||||
Series 2008 A, 5% 7/1/16 (FSA Insured) | $ 75,000 | $ 79,852 | ||
Citizens Property Ins. Corp.: | ||||
Series 2007 A: | ||||
5% 3/1/16 (Escrowed to Maturity) | 85,000 | 89,411 | ||
5% 3/1/17 (Escrowed to Maturity) | 300,000 | 326,229 | ||
Series 2007 B, 5% 3/1/15 | 360,000 | 362,822 | ||
Series 2009 A1: | ||||
5.375% 6/1/16 | 90,000 | 95,941 | ||
5.5% 6/1/16 (Assured Guaranty Corp. Insured) | 110,000 | 117,581 | ||
5.5% 6/1/17 | 355,000 | 393,099 | ||
Series 2010 A1: | ||||
4% 6/1/17 (FSA Insured) | 150,000 | 160,545 | ||
4.25% 6/1/17 | 980,000 | 1,054,696 | ||
5% 6/1/15 | 255,000 | 259,957 | ||
5% 6/1/15 | 100,000 | 101,944 | ||
5% 6/1/15 (FSA Insured) | 360,000 | 366,998 | ||
5% 6/1/16 (FSA Insured) | 100,000 | 106,151 | ||
5% 6/1/17 (FSA Insured) | 325,000 | 355,865 | ||
5.25% 6/1/17 | 515,000 | 567,221 | ||
Series 2011 A1, 5% 6/1/18 | 530,000 | 596,568 | ||
Series 2012 A, 5% 6/1/15 | 260,000 | 265,054 | ||
Series 2012 A1, 5% 6/1/17 | 80,000 | 87,678 | ||
5.25% 6/1/17 (FSA Insured) | 410,000 | 451,574 | ||
Escambia County Solid Waste Disp. Rev. Bonds (Gulf Pwr. Co. Proj.) Series 2009, 1.35%, tender 6/2/15 (b) | 110,000 | 110,409 | ||
Florida Board of Ed. Lottery Rev. Series 2009 A, 5% 7/1/15 | 100,000 | 102,341 | ||
Florida Board of Ed. Pub. Ed. Cap. Outlay: | ||||
Series 2008 C, 5% 6/1/15 | 75,000 | 76,470 | ||
Series 2009 D, 5% 6/1/15 | 90,000 | 91,764 | ||
Series 2013 C, 5% 6/1/15 | 100,000 | 101,960 | ||
Florida Dept. of Envir. Protection Rev. Series 2010 A, 5% 7/1/15 | 100,000 | 102,326 | ||
Florida Higher Edl. Facilities Fing. Auth. (Rollins College Proj.) Series 2012 A, 4% 12/1/16 | 65,000 | 69,072 | ||
Greater Orlando Aviation Auth. Arpt. Facilities Rev.: | ||||
Series 2010 A, 4% 10/1/16 | 200,000 | 212,300 | ||
Series 2010 B, 4.25% 10/1/18 (c) | 70,000 | 77,750 | ||
6% 10/1/17 (c) | 50,000 | 57,008 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Florida - continued | ||||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt, Inc. Prog.) Series 2006 G, 5.125% 11/15/17 | $ 200,000 | $ 216,310 | ||
Indian River County School Board Ctfs. of Prtn. Series 2014, 5% 7/1/18 | 1,100,000 | 1,242,296 | ||
JEA Saint Johns River Pwr. Park Sys. Rev. Series 6, 5% 10/1/15 | 65,000 | 67,308 | ||
Lake County School Board Ctfs. of Prtn. Series 2014 A: | ||||
4% 6/1/18 (FSA Insured) | 75,000 | 81,850 | ||
5% 6/1/17 (FSA Insured) | 140,000 | 153,472 | ||
Miami-Dade County Aviation Rev.: | ||||
Series 2008 E, 5.375% 10/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (c) | 115,000 | 129,009 | ||
Series 2010 B, 5% 10/1/17 | 75,000 | 83,486 | ||
Miami-Dade County Expressway Auth. Series 2014 B: | ||||
5% 7/1/17 | 250,000 | 275,143 | ||
5% 7/1/18 | 500,000 | 565,780 | ||
Miami-Dade County School Board Ctfs. of Prtn.: | ||||
Series 2007 A, 5% 5/1/15 (FGIC Insured) | 100,000 | 101,457 | ||
Series 2008 B, 5% 5/1/17 | 75,000 | 81,788 | ||
Reedy Creek Impt. District Utils. Rev. Series 2013 1, 5% 10/1/17 | 100,000 | 110,998 | ||
Tampa Health Sys. Rev.: | ||||
(Baycare Health Sys. Proj.) Series 2010, 5% 11/15/17 | 55,000 | 61,299 | ||
Series 2010, 5% 11/15/15 | 60,000 | 62,485 | ||
| 10,315,341 | |||
Georgia - 0.9% | ||||
Atlanta Arpt. Rev. Series 2011 A: | ||||
5% 1/1/15 | 150,000 | 150,021 | ||
5% 1/1/17 | 225,000 | 244,143 | ||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds 1.375%, tender 4/4/17 (b) | 430,000 | 431,277 | ||
Georgia Muni. Elec. Auth. Pwr. Rev.: | ||||
(Proj. One) Series 2008 A, 5.25% 1/1/18 | 25,000 | 28,032 | ||
Series 2011 A, 5% 1/1/15 | 200,000 | 200,026 | ||
Series B, 6.25% 1/1/17 | 370,000 | 410,275 | ||
4.25% 1/1/18 | 100,000 | 109,167 | ||
5% 11/1/17 | 80,000 | 89,015 | ||
| 1,661,956 | |||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Hawaii - 0.6% | ||||
Hawaii Arpts. Sys. Rev. Series 2010 B, 5% 7/1/18 (c) | $ 155,000 | $ 175,107 | ||
Hawaii Gen. Oblig.: | ||||
Series 2010 DY, 4% 2/1/15 | 200,000 | 200,620 | ||
Series DR, 5% 6/1/15 | 75,000 | 76,467 | ||
Series DY, 5% 2/1/15 | 150,000 | 150,584 | ||
5.75% 2/1/15 | 110,000 | 110,494 | ||
State of Hawaii Dept. of Trans. Series 2013, 3% 8/1/16 (c) | 380,000 | 392,950 | ||
| 1,106,222 | |||
Illinois - 11.6% | ||||
Chicago Gen. Oblig.: | ||||
Series 1998, 5.5% 1/1/15 (Escrowed to Maturity) | 110,000 | 110,000 | ||
Series 2007 A, 5% 12/1/16 | 100,000 | 106,384 | ||
Series 2008 A, 5% 1/1/18 | 75,000 | 80,296 | ||
Series 2009 A, 4% 1/1/18 | 100,000 | 104,202 | ||
Series A: | ||||
4% 1/1/15 | 120,000 | 120,011 | ||
5% 1/1/17 (FSA Insured) | 55,000 | 57,137 | ||
4% 1/1/16 | 100,000 | 103,287 | ||
5% 1/1/18 | 205,000 | 219,475 | ||
Chicago Metropolitan Wtr. Reclamation District Greater Chicago Series A, 4% 12/1/15 | 75,000 | 77,555 | ||
Chicago Midway Arpt. Rev.: | ||||
Series 1998 C, 5.5% 1/1/15 | 250,000 | 250,035 | ||
Series 2004 A, 4.5% 1/1/18 (AMBAC Finl. Group, Inc. Insured) (c) | 50,000 | 50,122 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 2005 B: | ||||
5.25% 1/1/15 (FGIC Insured) | 275,000 | 275,039 | ||
5.25% 1/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 65,000 | 68,113 | ||
5.25% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 305,000 | 342,082 | ||
Series 2008 A, 5% 1/1/15 (FSA Insured) | 325,000 | 325,042 | ||
Series 2010 A, 5% 1/1/16 | 310,000 | 324,083 | ||
Series 2010 E, 4.5% 1/1/16 (c) | 400,000 | 415,800 | ||
Series 2011 B: | ||||
3% 1/1/15 | 250,000 | 250,020 | ||
4% 1/1/17 | 100,000 | 106,456 | ||
5% 1/1/17 | 360,000 | 390,330 | ||
5% 1/1/18 (c) | 60,000 | 66,575 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Illinois - continued | ||||
Chicago O'Hare Int'l. Arpt. Rev.: - continued | ||||
Series 2012 C, 4% 1/1/15 | $ 165,000 | $ 165,017 | ||
Series B, 5% 1/1/18 (FSA Insured) | 150,000 | 161,862 | ||
Chicago Park District Gen. Oblig.: | ||||
Series 2008 H, 5% 1/1/17 | 250,000 | 270,700 | ||
Series 2011 C, 4% 1/1/15 | 150,000 | 150,015 | ||
Series 2011 D: | ||||
4% 1/1/18 | 120,000 | 129,130 | ||
5% 1/1/17 | 200,000 | 216,560 | ||
Series 2014 D, 4% 1/1/18 | 500,000 | 537,280 | ||
Series H, 5% 1/1/15 | 100,000 | 100,013 | ||
5% 1/1/17 | 300,000 | 324,840 | ||
Chicago Wastewtr. Transmission Rev.: | ||||
Series 2004 B, 5.25% 1/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 50,000 | 52,349 | ||
Series 2006 B: | ||||
5% 1/1/15 (FGIC Insured) | 130,000 | 130,017 | ||
5% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 95,000 | 102,533 | ||
Series 2010 A: | ||||
3% 1/1/18 | 60,000 | 63,231 | ||
4% 1/1/16 | 1,000,000 | 1,033,980 | ||
5% 1/1/15 | 75,000 | 75,010 | ||
Series 2012: | ||||
3% 1/1/15 | 175,000 | 175,012 | ||
3% 1/1/16 | 425,000 | 435,268 | ||
5.5% 1/1/15 | 100,000 | 100,014 | ||
Chicago Wtr. Rev.: | ||||
Series 2006 A, 5% 11/1/16 (AMBAC Insured) | 560,000 | 601,972 | ||
Series 2008, 5% 11/1/15 (FSA Insured) | 300,000 | 311,379 | ||
Series 2012, 4% 11/1/16 | 255,000 | 269,517 | ||
5% 11/1/17 (FSA Insured) | 230,000 | 255,919 | ||
Cook County Gen. Oblig.: | ||||
Series 2009 A: | ||||
4% 11/15/16 | 95,000 | 100,669 | ||
5% 11/15/15 | 225,000 | 233,739 | ||
Series 2009 D, 5% 11/15/15 | 380,000 | 395,128 | ||
Series 2014 A: | ||||
5% 11/15/16 | 60,000 | 64,685 | ||
5% 11/15/17 | 400,000 | 441,268 | ||
Series B, 5% 11/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 700,000 | 772,219 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Illinois - continued | ||||
Illinois Edl. Facilities Auth. Rev. Bonds (Univ. of Chicago Proj.): | ||||
Series B1, 1.1%, tender 2/15/18 (b) | $ 250,000 | $ 247,750 | ||
Series B2, 1.875%, tender 2/12/15 (b) | 815,000 | 816,361 | ||
Illinois Fin. Auth. Gas Supply Rev. Bonds: | ||||
(Peoples Gas Lt. and Coke Co. Proj.) Series 2005 A, 4.3%, tender 6/1/16 (AMBAC Insured) (b) | 585,000 | 614,262 | ||
(The Peoples Gas Lt. and Coke Co. Proj.) Series 2010 B, 2.625%, tender 8/1/15 (b) | 225,000 | 227,689 | ||
Illinois Fin. Auth. Rev.: | ||||
Bonds Series 2012 E1, 5%, tender 5/1/15 (b) | 200,000 | 203,128 | ||
Series 2004, 5% 11/15/15 | 100,000 | 100,322 | ||
Series 2007, 5% 7/1/15 | 100,000 | 102,331 | ||
Series 2010 A, 5.5% 5/1/17 | 100,000 | 109,467 | ||
Series 2010, 5% 2/15/17 | 70,000 | 75,368 | ||
Series 2012 A: | ||||
4% 5/15/15 | 825,000 | 834,603 | ||
4% 5/15/16 | 265,000 | 274,818 | ||
5% 8/15/16 | 100,000 | 106,848 | ||
5% 5/15/18 | 105,000 | 117,027 | ||
Series 2012 C, 5% 8/15/15 | 320,000 | 329,334 | ||
5% 4/1/16 | 120,000 | 126,553 | ||
5% 8/15/17 | 100,000 | 110,272 | ||
Illinois Gen. Oblig.: | ||||
Series 2004 A, 5% 3/1/17 | 75,000 | 75,241 | ||
Series 2006, 5% 1/1/17 | 100,000 | 103,553 | ||
Series 2007 A, 5% 6/1/18 (FSA Insured) | 435,000 | 468,221 | ||
Series 2007 B: | ||||
5% 1/1/17 | 150,000 | 160,878 | ||
5.25% 1/1/18 | 275,000 | 302,885 | ||
Series 2014, 4% 2/1/18 | 300,000 | 319,899 | ||
Illinois Sales Tax Rev.: | ||||
Series 2005, 5% 6/15/15 | 65,000 | 66,394 | ||
Series 2013, 5% 6/15/17 | 75,000 | 82,640 | ||
Illinois Unemployment Ins. Fund Bldg. Receipts: | ||||
Series 2012 A: | ||||
5% 6/15/16 | 140,000 | 149,101 | ||
5% 12/15/16 | 50,000 | 54,261 | ||
Series 2012 B, 5% 6/15/18 | 165,000 | 178,591 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Illinois - continued | ||||
Metropolitan Pier & Exposition: | ||||
(McCormick Place Expansion Proj.) Series 1996 A: | ||||
0% 12/15/16 (Nat'l. Pub. Fin. Guarantee Corp. | $ 65,000 | $ 63,287 | ||
0% 12/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 75,000 | 71,273 | ||
0% 6/15/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 150,000 | 147,626 | ||
0% 6/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 55,000 | 53,068 | ||
0% 6/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 105,000 | 98,923 | ||
Quincy Hosp. Rev. Series 2007, 5% 11/15/16 | 115,000 | 123,182 | ||
Railsplitter Tobacco Settlement Auth. Rev. Series 2010: | ||||
5% 6/1/15 | 790,000 | 804,702 | ||
5% 6/1/17 | 175,000 | 191,314 | ||
5% 6/1/18 | 535,000 | 601,056 | ||
Univ. of Illinois Board of Trustees Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 10/1/16 (FSA Insured) (Pre-Refunded to 10/1/16 @ 100) | 135,000 | 145,022 | ||
Series 2009 A, 4% 10/1/15 | 275,000 | 282,579 | ||
Univ. of Illinois Ctfs. of Prtn. Series 2014 A, 5% 10/1/18 | 500,000 | 564,705 | ||
Univ. of Illinois Rev.: | ||||
Series 2001 A, 5.5% 4/1/16 (AMBAC Insured) | 65,000 | 69,008 | ||
Series 2006: | ||||
4.5% 4/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 75,000 | 75,761 | ||
5% 4/1/16 | 250,000 | 263,875 | ||
5% 4/1/17 (Nat'l. Reinsurance Co. Insured) | 300,000 | 316,305 | ||
5% 4/1/17 | 80,000 | 80,890 | ||
| 21,821,743 | |||
Indiana - 1.6% | ||||
Indiana Fin. Auth. Health Sys. Rev. Series 2008 C, 5.5% 11/1/17 | 100,000 | 112,151 | ||
Indiana Fin. Auth. Hosp. Rev.: | ||||
Series 2011 N: | ||||
5% 3/1/16 | 75,000 | 78,919 | ||
5% 3/1/17 | 50,000 | 54,507 | ||
Series 2013 A, 5% 8/15/16 | 100,000 | 106,631 | ||
Indiana Fin. Auth. Rev.: | ||||
(l-69 Section 5 Proj.) Series 2014, 4% 3/1/17 (c) | 800,000 | 843,560 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Indiana - continued | ||||
Indiana Fin. Auth. Rev.: - continued | ||||
4% 3/1/15 | $ 100,000 | $ 100,515 | ||
Indiana Health & Edl. Facilities Fing. Auth. Hosp. Rev. Series 2006 B, 5% 2/15/17 | 350,000 | 366,583 | ||
Indiana Health & Edl. Facilities Fing. Auth. Rev. Bonds: | ||||
(Ascension Health Sr. Cr. Group Proj.) Series 2006 B1, 4.1%, tender 11/3/16 (b) | 50,000 | 53,304 | ||
Series 2006 B8, 4.1%, tender 11/3/16 (b) | 745,000 | 794,222 | ||
Indiana Health Facility Fing. Auth. Rev. Bonds (Ascension Health Cr. Group Proj.) Series 2001 A2, 1.6%, tender 2/1/17 (b) | 65,000 | 66,038 | ||
Indianapolis Arpt. Auth. Rev. Series 2010 A, 4% 1/1/15 | 145,000 | 145,016 | ||
Indianapolis Gas Util. Sys. Rev. 3.5% 6/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 100,000 | 105,504 | ||
Indianapolis Local Pub. Impt. Bond Bank (Indianapolis Arpt. Auth. Proj.) Series 2006 F: | ||||
5% 1/1/16 (AMBAC Insured) (c) | 70,000 | 73,151 | ||
5% 1/1/17 (AMBAC Insured) (c) | 50,000 | 53,073 | ||
Purdue Univ. Rev. Series A, 5% 7/1/15 | 75,000 | 76,775 | ||
| 3,029,949 | |||
Kansas - 0.2% | ||||
Wyandotte County/Kansas City Unified Govt. Util. Sys. Rev.: | ||||
Series 2012 A, 4% 9/1/17 | 175,000 | 188,564 | ||
Series 2014 A, 4% 9/1/16 | 100,000 | 105,634 | ||
| 294,198 | |||
Kentucky - 0.7% | ||||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev. (Baptist Healthcare Sys. Proj.) Series A: | ||||
5% 8/15/15 | 100,000 | 102,617 | ||
5% 8/15/17 | 450,000 | 491,949 | ||
Louisville/Jefferson County Metropolitan Govt. Poll. Cont. Rev. Bonds (Louisville Gas and Elec. Co. Proj.): | ||||
Series 2001 B, 1.35%, tender 5/1/18 (b)(c) | 500,000 | 496,935 | ||
Series 2003 A, 1.65%, tender 4/3/17 (b) | 170,000 | 172,443 | ||
| 1,263,944 | |||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Louisiana - 0.1% | ||||
Louisiana Pub. Facilities Auth. Hosp. Rev. (Franciscan Missionaries of Our Lady Health Sys. Proj.) Series 1998 B, 5% 7/1/16 | $ 140,000 | $ 148,905 | ||
Louisiana Pub. Facilities Auth. Rev. Series 2009 A, 5% 7/1/17 | 125,000 | 136,891 | ||
| 285,796 | |||
Maryland - 0.3% | ||||
Maryland Dept. of Trans. Consolidated Trans. Rev. Series 2008, 5% 2/15/15 | 175,000 | 176,012 | ||
Maryland Gen. Oblig.: | ||||
Series 2007, 5% 3/15/15 | 60,000 | 60,584 | ||
Series 2012 B, 5% 3/15/15 | 50,000 | 50,486 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev.: | ||||
Series 2013 A, 3% 8/15/16 | 185,000 | 191,732 | ||
0% 7/1/15 | 50,000 | 49,932 | ||
| 528,746 | |||
Massachusetts - 2.9% | ||||
Berkshire Wind Pwr. Coop. Corp. (Wind Proj.): | ||||
Series 1, 5% 7/1/16 | 250,000 | 266,288 | ||
Series 2010 1, 5% 7/1/15 | 100,000 | 102,266 | ||
Boston Gen. Oblig. Series 2011 D, 4% 4/1/15 | 100,000 | 100,920 | ||
Cambridge Gen. Oblig. Series 2013, 3% 2/15/15 | 100,000 | 100,343 | ||
Massachusetts Bay Trans. Auth. 5.875% 3/1/15 | 330,000 | 333,046 | ||
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev. Series 2010 B, 5% 1/1/18 | 100,000 | 111,551 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
Bonds 0.59%, tender 1/30/18 (b) | 1,990,000 | 1,997,502 | ||
Series 2011 H, 5% 7/1/15 | 175,000 | 178,154 | ||
Series 2011 K6, 5% 7/1/15 | 75,000 | 76,767 | ||
Series 2013 F, 3% 7/1/15 | 200,000 | 202,512 | ||
Massachusetts Dev. Fin. Agcy. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2002, 1.6%, tender 5/1/17 (b)(c) | 150,000 | 151,403 | ||
Massachusetts Gen. Oblig. Series 2002 C, 5.5% 11/1/15 | 75,000 | 78,278 | ||
Massachusetts Health & Edl. Facilities Auth. Rev.: | ||||
(Partners HealthCare Sys., Inc. Proj.) Series 2007 G, 5% 7/1/18 | 100,000 | 110,632 | ||
Series 2004 D, 5% 11/15/16 | 275,000 | 296,101 | ||
Series 2008 D, 4.5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 175,000 | 178,498 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Massachusetts - continued | ||||
Massachusetts Health & Edl. Facilities Auth. Rev.: - continued | ||||
Series 2008 E2: | ||||
5% 7/1/15 | $ 85,000 | $ 86,906 | ||
5% 7/1/17 | 120,000 | 131,726 | ||
Series 2010 H, 5% 7/1/16 | 125,000 | 132,243 | ||
Series 2010 J2, 5% 7/1/15 | 75,000 | 76,767 | ||
Massachusetts Muni. Wholesale Elec. Co. Pwr. Supply Sys. Rev.: | ||||
(Nuclear Proj. #5) Series 2012 A, 5% 7/1/15 | 140,000 | 143,270 | ||
(Nuclear Proj. 3) Series 2011, 5% 7/1/15 | 300,000 | 307,008 | ||
4% 7/1/16 | 200,000 | 210,444 | ||
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev. Series 2009 A, 5% 5/15/15 | 60,000 | 61,046 | ||
Medford Gen. Oblig. Series 2011 B, 5% 3/1/15 | 80,000 | 80,618 | ||
| 5,514,289 | |||
Michigan - 3.0% | ||||
Forest Hills Pub. Schools 4% 5/1/17 (a) | 580,000 | 618,686 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | ||||
Bonds (Spectrum Health Sys. Proj.) Series 2008 A, 5.5%, tender 1/15/15 (b) | 50,000 | 50,067 | ||
Series 2011 A, 5% 11/15/15 | 60,000 | 62,330 | ||
Michigan Fin. Auth. Rev. Series 2014, 4% 6/1/18 | 300,000 | 326,349 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
Bonds: | ||||
(Ascension Health Cr. Group Proj.) 1.5%, tender 3/15/17 (b) | 800,000 | 813,016 | ||
Series 2010 F3, 1.4%, tender 6/29/18 (b) | 775,000 | 780,270 | ||
Series 2008 A, 5.25% 5/15/17 | 165,000 | 180,208 | ||
Series 2012 A, 5% 6/1/15 | 150,000 | 152,916 | ||
Oakland Univ. Rev.: | ||||
Series 2012: | ||||
2.5% 3/1/15 | 420,000 | 421,436 | ||
3% 3/1/16 | 110,000 | 113,260 | ||
4% 3/1/17 | 270,000 | 288,222 | ||
4% 3/1/18 | 80,000 | 86,961 | ||
Series 2013 A, 4% 3/1/18 | 375,000 | 407,629 | ||
Roseville Cmnty. Schools Series 2014, 5% 5/1/18 | 350,000 | 390,481 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. Series 2014 D: | ||||
5% 9/1/17 | 150,000 | 164,961 | ||
5% 9/1/18 | 200,000 | 224,788 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Wayne County Arpt. Auth. Rev. 5% 12/1/15 (FGIC Insured) | $ 100,000 | $ 104,020 | ||
Wayne-Westland Cmnty. Schools Series 2014, 5% 5/1/18 | 250,000 | 279,088 | ||
Western Michigan Univ. Rev.: | ||||
Series 2013, 4% 11/15/16 | 100,000 | 106,216 | ||
Series 2014, 5% 11/15/17 | 100,000 | 111,213 | ||
| 5,682,117 | |||
Minnesota - 1.7% | ||||
Anoka-Hennepin Independent School District #11 (Minnesota School District Cr. Enhancement Prog.) Series 2011 A, 4% 2/1/15 | 970,000 | 973,007 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 2014 B, 5% 1/1/18 (c) | 600,000 | 667,056 | ||
5% 1/1/16 (c) | 265,000 | 265,000 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev. Series 2009 A, 5% 1/1/15 (Assured Guaranty Corp. Insured) | 150,000 | 150,020 | ||
Shakopee Health Care Facilities Rev. Series 2014: | ||||
4% 9/1/16 | 295,000 | 311,370 | ||
5% 9/1/17 | 450,000 | 497,750 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.: | ||||
Series 2002 A: | ||||
5.25% 1/1/15 | 90,000 | 90,013 | ||
5.25% 1/1/17 | 10,000 | 10,886 | ||
0% 1/1/18 (AMBAC Insured) | 110,000 | 106,108 | ||
Univ. of Minnesota Gen. Oblig. Series 2010 C, 3% 2/1/15 | 70,000 | 70,161 | ||
| 3,141,371 | |||
Mississippi - 0.0% | ||||
Mississippi Gen. Oblig. (Cap. Impts. Proj.) Series 2012 D, 0.57% 9/1/17 (b) | 90,000 | 90,459 | ||
Missouri - 0.6% | ||||
Saint Louis Arpt. Rev. Series 2007 B, 5% 7/1/16 (FSA Insured) (c) | 1,000,000 | 1,063,310 | ||
Nebraska - 0.3% | ||||
Nebraska Pub. Pwr. District Rev.: | ||||
Series 2007 B, 4% 1/1/15 (FSA Insured) | 55,000 | 55,006 | ||
Series 2012 A, 4% 1/1/15 | 380,000 | 380,038 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Nebraska - continued | ||||
Nebraska Pub. Pwr. District Rev.: - continued | ||||
Series 2013 A, 3% 1/1/15 | $ 60,000 | $ 60,004 | ||
Omaha Pub. Pwr. District Elec. Rev. Series 2007 A, 4% 2/1/18 (Pre-Refunded to 2/1/17 @ 100) | 65,000 | 69,552 | ||
| 564,600 | |||
Nevada - 3.1% | ||||
Clark County Arpt. Rev.: | ||||
Series 2008 E, 5% 7/1/15 | 75,000 | 76,741 | ||
Series 2013 C1, 2.5% 7/1/15 (c) | 1,350,000 | 1,364,013 | ||
5% 7/1/17 (AMBAC Insured) (c) | 100,000 | 109,461 | ||
Clark County Fuel Tax Series 2009 A, 3% 12/1/16 | 75,000 | 78,415 | ||
Clark County School District: | ||||
Series 1998 A, 5.5% 6/15/15 | 150,000 | 153,542 | ||
Series 2005 A: | ||||
5% 6/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 115,000 | 118,464 | ||
5% 6/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,150,000 | 1,184,592 | ||
5.25% 6/15/15 | 50,000 | 51,126 | ||
Series 2005 B: | ||||
5% 6/15/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 210,000 | 214,494 | ||
5% 6/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 200,000 | 206,078 | ||
Series 2005 C, 5% 6/15/16 (FSA Insured) | 75,000 | 78,305 | ||
Series 2006 B, 5% 6/15/15 | 60,000 | 61,284 | ||
Series 2007 A, 4.5% 6/15/17 (FGIC Insured) | 515,000 | 559,414 | ||
Series 2007 B, 5% 6/15/15 | 125,000 | 127,675 | ||
Series 2007 C, 5% 6/15/18 | 175,000 | 195,458 | ||
Series 2008 A, 5% 6/15/17 | 100,000 | 110,084 | ||
Series 2012 A, 5% 6/15/15 | 250,000 | 255,350 | ||
Series 2014 A, 5.5% 6/15/17 | 75,000 | 83,448 | ||
Las Vegas Valley Wtr. District Wtr. Impt. Gen. Oblig.: | ||||
Series 2005 A, 5% 6/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 100,000 | 101,894 | ||
Series 2010 B, 4% 3/1/17 | 55,000 | 58,822 | ||
Series 2012 B, 5% 6/1/18 | 70,000 | 79,017 | ||
Nevada Gen. Oblig.: | ||||
Series 2010 C, 5% 6/1/15 | 75,000 | 76,467 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Nevada - continued | ||||
Nevada Gen. Oblig.: - continued | ||||
5% 2/1/15 | $ 75,000 | $ 75,290 | ||
Nevada Lease Rev. Ctfs. Prtn. (Bldg. 1 Proj.) Series 2013, 5% 4/1/17 | 350,000 | 379,575 | ||
| 5,799,009 | |||
New Hampshire - 0.0% | ||||
New Hampshire Health & Ed. Facilities Auth. Rev. 4% 7/1/15 | 60,000 | 60,844 | ||
New Jersey - 3.4% | ||||
New Jersey Ctfs. of Prtn.: | ||||
Series 2009 A, 5% 6/15/16 | 50,000 | 53,034 | ||
5% 6/15/15 | 50,000 | 51,201 | ||
New Jersey Econ. Dev. Auth. Rev.: | ||||
Series 2003 A, 0% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 70,000 | 69,651 | ||
Series 2011 EE, 5% 9/1/18 | 165,000 | 184,450 | ||
Series 2012, 5% 6/15/17 | 500,000 | 545,960 | ||
5.25% 12/15/15 | 70,000 | 73,099 | ||
5.25% 12/15/15 (Escrowed to Maturity) | 45,000 | 47,133 | ||
New Jersey Edl. Facilities Auth. Rev.: | ||||
Series 2005 D, 5% 7/1/15 | 100,000 | 102,266 | ||
Series 2011 C, 4% 7/1/15 | 250,000 | 254,453 | ||
Series 2013 A, 5% 7/1/17 | 50,000 | 54,925 | ||
New Jersey Health Care Facilities Fing. Auth. Rev.: | ||||
(Virtua Health Proj.) Series A, 5.25% 7/1/17 (Assured Guaranty Corp. Insured) | 75,000 | 82,730 | ||
Series 2009 A, 5.25% 7/1/16 | 125,000 | 133,355 | ||
Series 2011: | ||||
4% 7/1/15 | 100,000 | 101,618 | ||
4% 7/1/16 | 250,000 | 261,758 | ||
5% 7/1/15 | 200,000 | 204,582 | ||
5% 7/1/16 | 1,150,000 | 1,221,392 | ||
5% 7/1/17 | 75,000 | 82,212 | ||
Series 2013 A, 3% 7/1/16 | 115,000 | 118,229 | ||
4% 7/1/17 | 150,000 | 160,410 | ||
4.25% 1/1/15 | 100,000 | 100,010 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series 2011 B, 5% 6/15/18 | 130,000 | 144,557 | ||
Series 2012 AA, 4% 6/15/18 | 970,000 | 1,046,291 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series 2014 A, 5% 9/15/17 | 1,000,000 | 1,094,470 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
New Jersey - continued | ||||
Rutgers State Univ. Rev.: | ||||
Series 2009 F, 4% 5/1/15 | $ 100,000 | $ 101,226 | ||
Series 2010 I, 5% 5/1/15 | 75,000 | 76,159 | ||
| 6,365,171 | |||
New Mexico - 2.8% | ||||
Farmington Poll. Cont. Rev. Bonds: | ||||
(Southern Cal. Edison Co. Four Corners Proj.) Series 2005 A, 2.875%, tender 4/1/15 (b) | 2,980,000 | 2,996,390 | ||
(Southern California Edison Co. Four Corners Proj.) Series 2005 B, 2.875%, tender 4/1/15 (b) | 2,100,000 | 2,111,550 | ||
New Mexico Severance Tax Rev. Series 2009 A, 5% 7/1/15 | 95,000 | 97,243 | ||
| 5,205,183 | |||
New York - 1.4% | ||||
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A, 5.25% 11/15/16 | 100,000 | 107,113 | ||
Hempstead Town Gen. Oblig. Series 2008 A, 5% 8/15/15 | 80,000 | 82,363 | ||
New York City Gen. Oblig.: | ||||
Series 2005 G, 5% 8/1/15 | 50,000 | 51,389 | ||
Series 2009 H1, 5% 3/1/15 | 95,000 | 95,746 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev. Series 2006 BB, 4% 6/15/17 (Pre-Refunded to 6/15/16 @ 100) | 75,000 | 78,889 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2011 D1, 5% 2/1/15 | 105,000 | 105,413 | ||
Series 2011 E, 5% 11/1/15 | 50,000 | 51,981 | ||
Series 2012 F1, 1.5% 5/1/15 | 100,000 | 100,441 | ||
New York Dorm. Auth. Mental Health Svcs. Facilities Impt. Rev. 5% 2/15/15 | 50,000 | 50,278 | ||
New York Dorm. Auth. Personal Income Tax Rev.: | ||||
Series 2009 G, 5% 3/15/15 | 105,000 | 106,013 | ||
5% 3/15/15 (FSA Insured) | 75,000 | 75,725 | ||
New York Dorm. Auth. Revs.: | ||||
Series 2008 B, 5% 7/1/15 | 100,000 | 102,341 | ||
Series 2011 A: | ||||
4% 5/1/15 | 100,000 | 101,161 | ||
5% 7/1/15 | 100,000 | 102,222 | ||
New York Local Govt. Assistance Corp. Series 2008 C, 5% 4/1/15 | 175,000 | 177,023 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
New York - continued | ||||
New York State Envir. Facilities Corp. Rev. Series 2013 B, 3% 5/15/15 | $ 115,000 | $ 116,190 | ||
New York State Gen. Oblig.: | ||||
Series 2007 A, 4% 3/1/15 | 50,000 | 50,321 | ||
Series 2008 A, 4% 3/1/15 | 80,000 | 80,513 | ||
Series 2009 C, 3% 2/1/15 | 200,000 | 200,470 | ||
Series 2011 C, 4% 9/1/15 | 60,000 | 61,507 | ||
Series C 5% 4/15/15 | 145,000 | 146,949 | ||
New York Thruway Auth. Gen. Rev. Series 2007 H, 4% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 65,000 | 70,482 | ||
New York Thruway Auth. Personal Income Tax Rev. Series 2012 A, 4% 3/15/15 | 135,000 | 136,041 | ||
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund: | ||||
Series 2008 B, 5% 4/1/15 | 80,000 | 80,927 | ||
Series 2010 A, 5% 4/1/15 | 75,000 | 75,869 | ||
New York Thruway Auth. Svc. Contract Rev. Series 2008, 3.2% 4/1/15 | 75,000 | 75,551 | ||
Triborough Bridge & Tunnel Auth. Revs. Series 2002 B, 5.25% 11/15/15 | 100,000 | 104,328 | ||
| 2,587,246 | |||
North Carolina - 1.4% | ||||
Charlotte Int'l. Arpt. Rev.: | ||||
Series 2009 B, 5% 7/1/15 | 105,000 | 107,511 | ||
Series 2011 A, 2.5% 7/1/16 | 100,000 | 103,124 | ||
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series 2009 A, 4% 1/15/17 | 150,000 | 159,623 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev.: | ||||
Series 1991 A, 6.5% 1/1/18 (Assured Guaranty Corp. Insured) | 50,000 | 57,337 | ||
Series 2005 A, 5% 1/1/16 (AMBAC Insured) | 100,000 | 104,451 | ||
Series 2009 A, 5% 1/1/18 | 100,000 | 110,678 | ||
Series 2009 B, 5% 1/1/17 | 260,000 | 280,241 | ||
Series 2010 A, 5% 1/1/15 | 425,000 | 425,055 | ||
Series 2012 B: | ||||
5% 1/1/15 | 150,000 | 150,020 | ||
5% 1/1/16 | 75,000 | 78,338 | ||
Series A, 5% 1/1/15 | 340,000 | 340,044 | ||
North Carolina Gen. Oblig. Series 2005 B, 5% 4/1/15 | 50,000 | 50,578 | ||
North Carolina Med. Care Commission Health Care Facilities Rev. 4% 12/1/15 | 50,000 | 51,639 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
North Carolina - continued | ||||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | ||||
Series 1998 A, 5.5% 1/1/15 | $ 20,000 | $ 20,003 | ||
Series 2008 A: | ||||
5.25% 1/1/15 | 85,000 | 85,012 | ||
5.25% 1/1/16 | 100,000 | 104,799 | ||
5.25% 1/1/17 | 235,000 | 255,614 | ||
Series 2012 A, 4% 1/1/18 | 190,000 | 206,258 | ||
| 2,690,325 | |||
Ohio - 2.0% | ||||
Cleveland Ctfs. of Prtn. (Cleveland Stadium Proj.) Series 2010 A, 5% 11/15/17 | 200,000 | 218,862 | ||
Cleveland Wtr. Rev.: | ||||
Series 2009 C, 4% 1/1/15 | 220,000 | 220,024 | ||
Series 2011 W, 5% 1/1/15 | 235,000 | 235,031 | ||
Franklin County Hosp. Rev. Bonds Series 2011 D, 4%, tender 8/1/16 (b) | 895,000 | 938,569 | ||
Hamilton County Health Care Facilities Rev. 5% 6/1/17 | 65,000 | 70,929 | ||
Hamilton County Hosp. Facilities Rev. Series 2014 S, 3% 5/15/15 | 100,000 | 101,028 | ||
Hamilton County Student Hsg. Rev. (Stratford Heights Proj.) Series 2010, 5% 6/1/15 (FSA Insured) | 100,000 | 101,861 | ||
Kent State Univ. Revs.: | ||||
Series 2009 B, 5% 5/1/17 (Assured Guaranty Corp. Insured) | 60,000 | 65,474 | ||
Series 2012 A, 5% 5/1/15 | 75,000 | 76,159 | ||
Montgomery County Rev. Series 2009 A, 4% 5/1/16 | 100,000 | 100,107 | ||
Ohio Bldg. Auth. (Juvenille Correctional Bldg. Fund Projs.) Series 2007 A, 5.5% 4/1/16 (FSA Insured) | 75,000 | 79,769 | ||
Ohio Gen. Oblig. Series 2012 L, 2% 2/1/15 | 150,000 | 150,224 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Univ. of Dayton 2009 Proj.) 5% 12/1/17 | 155,000 | 171,236 | ||
Series 2010 A, 3.5% 1/15/16 | 50,000 | 51,574 | ||
Ohio Hosp. Rev. Series 2012 A, 4% 1/15/15 | 140,000 | 140,190 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2010 A, 3.375%, tender 7/1/15 (b) | 850,000 | 860,761 | ||
Ohio Wtr. Dev. Auth. Wtr. Poll. Cont. Rev. Series 2011 A, 5% 6/1/15 | 100,000 | 101,964 | ||
Univ. of Cincinnati Gen. Receipts Series 2011 A, 5% 6/1/15 | 140,000 | 142,722 | ||
| 3,826,484 | |||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Oklahoma - 0.1% | ||||
Oklahoma Dev. Fin. Auth. Health Sys. Rev. Series 2008 C, 5% 8/15/16 | $ 200,000 | $ 214,030 | ||
Oregon - 0.3% | ||||
Clackamas County Hosp. Facility Auth. Series 2009 A, 4% 7/15/15 | 160,000 | 163,120 | ||
Oregon Gen. Oblig. Series 2009 A, 3% 4/1/15 | 250,000 | 251,705 | ||
Port of Portland Arpt. Rev. 5% 7/1/18 (c) | 80,000 | 89,998 | ||
Portland Wtr. Sys. Rev. Series 2012 A, 5% 4/1/15 | 75,000 | 75,867 | ||
| 580,690 | |||
Pennsylvania - 2.5% | ||||
Allegheny County Arpt. Auth. Rev.: | ||||
Series 2007 A, 5% 1/1/16 (FSA Insured) (c) | 415,000 | 433,472 | ||
Series 2007 B: | ||||
5% 1/1/17 (FSA Insured) | 140,000 | 151,418 | ||
5% 1/1/18 (FSA Insured) | 485,000 | 539,655 | ||
4.5% 1/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (c) | 65,000 | 65,007 | ||
Allegheny County Hosp. Dev. Auth. Rev.: | ||||
Series 2008 A, 5% 9/1/17 | 95,000 | 105,187 | ||
Series 2010 A: | ||||
5% 5/15/15 | 100,000 | 101,737 | ||
5% 5/15/18 | 100,000 | 112,717 | ||
Bucks Co. Indl. Dev. Auth. Solid Waste Rev. Bonds 1.375%, tender 2/1/17 (b) | 350,000 | 352,751 | ||
Econ. Dev. Fin. Auth. Unemployment Compensation Rev. Series 2012 A, 4% 7/1/15 | 75,000 | 76,410 | ||
Indiana County Hosp. Auth. Series 2014 A, 4% 6/1/15 | 100,000 | 101,222 | ||
Monroeville Fin. Auth. UPMC Rev. Series 2012: | ||||
4% 2/15/17 | 75,000 | 80,105 | ||
4% 2/15/18 | 100,000 | 108,965 | ||
Montgomery County Indl. Dev. 4% 10/1/17 | 200,000 | 216,830 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev.: | ||||
(Abington Memorial Hosp. Proj.) Series 2009 A, 5% 6/1/17 | 75,000 | 81,860 | ||
Series 2009 A, 5% 6/1/18 | 130,000 | 145,360 | ||
Pennsylvania Gen. Oblig.: | ||||
Series 2005 1, 5% 7/1/15 | 200,000 | 204,782 | ||
Series 2010 3A, 5% 7/15/15 | 60,000 | 61,549 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Univ. of Pennsylvania Health Sys. Proj.) Series 2005 A, 5% 8/15/15 | $ 220,000 | $ 226,457 | ||
Series 2006 1, 5% 4/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 175,000 | 184,310 | ||
Series 2010 1, 5% 4/1/18 | 200,000 | 224,048 | ||
Series 2010 E, 5% 5/15/18 | 100,000 | 112,717 | ||
Series 2012 1, 4% 4/1/16 | 60,000 | 62,455 | ||
5% 4/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 115,000 | 121,059 | ||
Philadelphia Arpt. Rev. Series 2010 C, 5% 6/15/18 (c) | 270,000 | 304,196 | ||
Philadelphia Gas Works Rev.: | ||||
Eighth Series A, 5% 8/1/16 | 100,000 | 106,748 | ||
Tenth Series 1998, 5% 7/1/15 | 150,000 | 152,814 | ||
Philadelphia Wtr. & Wastewtr. Rev. Series 2010 A, 5% 6/15/16 | 205,000 | 218,327 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2010, 4% 3/1/17 | 105,000 | 111,901 | ||
| 4,764,059 | |||
South Carolina - 0.6% | ||||
Richland County Gen. Oblig. Series 2007 C, 4% 3/1/15 | 100,000 | 100,623 | ||
South Carolina Gen. Oblig. Series 2011 A, 5% 3/1/15 | 50,000 | 50,388 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2006 A, 5% 1/1/15 (Escrowed to Maturity) | 140,000 | 140,000 | ||
Series 2006 C, 5% 1/1/18 (FSA Insured) | 125,000 | 134,963 | ||
Series 2007 A, 5% 1/1/18 (Pre-Refunded to 1/1/17 @ 100) | 50,000 | 54,348 | ||
Series 2007 B, 5% 1/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 100,000 | 100,013 | ||
Series 2009 E: | ||||
3.25% 1/1/15 (Escrowed to Maturity) | 150,000 | 150,000 | ||
5% 1/1/15 (Escrowed to Maturity) | 160,000 | 160,000 | ||
Series 2010 B: | ||||
4% 1/1/15 | 100,000 | 100,011 | ||
5% 1/1/18 | 75,000 | 83,687 | ||
5% 1/1/15 (Escrowed to Maturity) | 90,000 | 90,000 | ||
5% 1/1/15 (FSA Insured) | 20,000 | 20,003 | ||
| 1,184,036 | |||
Tennessee - 0.4% | ||||
Jackson Hosp. Rev. (Jackson-Madison County Gen. Hosp. Proj.) Series 2008, 5.5% 4/1/16 | 190,000 | 201,594 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Tennessee - continued | ||||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series 2011 A1, 5% 7/1/17 (c) | $ 30,000 | $ 32,846 | ||
Shelby County Health Edl. & Hsg. Facilities Board Rev. Series 2004 A, 5% 9/1/15 | 475,000 | 489,321 | ||
| 723,761 | |||
Texas - 2.4% | ||||
Cypress-Fairbanks Independent School District Series 2008, 5% 2/15/15 | 150,000 | 150,855 | ||
Dallas Fort Worth Int'l. Arpt. Rev.: | ||||
Series 2009 A, 5% 11/1/16 | 85,000 | 91,580 | ||
Series 2013 E, 5% 11/1/17 (c) | 100,000 | 111,121 | ||
Series 2014 A: | ||||
3% 11/1/16 (c) | 180,000 | 187,438 | ||
3% 11/1/17 (c) | 185,000 | 195,260 | ||
Harris County Cultural Ed. Facilities Fin. Corp. Rev. Series 2013 A, 4% 12/1/16 | 200,000 | 212,648 | ||
Harris County Health Facilities Dev. Corp. Hosp. Rev. (Memorial Hermann Hosp. Sys. Proj.) Series 1998, 5.5% 6/1/15 (FSA Insured) | 225,000 | 229,734 | ||
Harris County Health Facilities Dev. Corp. Rev. Series 2005 A6, 5% 7/1/16 (FSA Insured) | 100,000 | 106,361 | ||
Houston Arpt. Sys. Rev. Series 2012 A, 5% 7/1/18 (c) | 90,000 | 101,150 | ||
Houston Cmnty. College Sys. Rev. Series 2011, 5% 2/15/18 | 65,000 | 72,937 | ||
Houston Gen. Oblig.: | ||||
Series 2007 A: | ||||
4% 3/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 100,000 | 100,632 | ||
5% 3/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 125,000 | 125,995 | ||
Series 2009 A, 4.25% 3/1/15 | 175,000 | 176,178 | ||
Lower Colorado River Auth. Rev.: | ||||
Series 2012, 3.5% 5/15/16 | 65,000 | 67,699 | ||
Series 2013, 4% 5/15/15 | 225,000 | 228,143 | ||
5% 5/15/15 | 285,000 | 290,002 | ||
Lower Colorado River Auth. Transmission Contract Rev.: | ||||
(LCRA Transmission Corp. Proj.) Series 2011 A, 5% 5/15/15 | 515,000 | 523,925 | ||
(LCRA Transmission Svcs. Corp. Proj.) Series 2008, 5% 5/15/15 (Berkshire Hathaway Assurance Corp. Insured) | 100,000 | 101,733 | ||
5% 5/15/17 | 140,000 | 153,052 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Texas - continued | ||||
San Antonio Elec. & Gas Sys. Rev.: | ||||
Series 2002, 5.375% 2/1/15 | $ 355,000 | $ 356,509 | ||
Series 2006 A, 5% 2/1/15 | 175,000 | 175,691 | ||
Series 2006 B, 5% 2/1/18 | 60,000 | 65,369 | ||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) Series 2009, 5% 10/1/17 | 60,000 | 66,650 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev. (Baylor Health Care Sys. Proj.) Series 2011 A, 5% 11/15/15 | 70,000 | 72,719 | ||
Tarrant Reg'l. Wtr. District Wtr. Rev. Series 2012, 5% 3/1/15 | 125,000 | 125,998 | ||
Texas A&M Univ. Rev.: | ||||
Series 2005 B, 5% 5/15/15 | 115,000 | 117,014 | ||
Series 2009 A, 5% 5/15/15 | 100,000 | 101,751 | ||
Series 2010 A, 4% 5/15/15 | 100,000 | 101,393 | ||
Texas Trans. Commission State Hwy. Fund Rev. Series 2007, 5% 4/1/15 | 80,000 | 80,925 | ||
| 4,490,462 | |||
Utah - 0.0% | ||||
Intermountain Pwr. Agcy. Pwr. Supply Rev. Series 2009 A, 5% 7/1/15 | 90,000 | 92,107 | ||
Virginia - 0.0% | ||||
Wise County Indl. Dev. Auth. Waste & Sewage Rev. Bonds (Virginia Elec. and Pwr. Co. Proj.) Series 2010 A, 2.375%, tender 11/1/15 (b) | 75,000 | 76,154 | ||
Washington - 1.3% | ||||
Chelan County Pub. Util. District #1 Rev. Series 2011 B, 5% 7/1/18 (c) | 100,000 | 111,989 | ||
Clark County Pub. Util. District #1 Generating Sys. Rev. Series 2010, 5% 1/1/16 | 65,000 | 67,999 | ||
Energy Northwest Elec. Rev.: | ||||
(Proj. #3) Series 2007 A, 5% 7/1/15 | 55,000 | 56,282 | ||
(Proj. 1) Series 2010 A, 3% 7/1/15 | 110,000 | 111,496 | ||
(Proj. 3) Series 2005 A, 5% 7/1/15 | 50,000 | 51,166 | ||
Series 2007 C, 5% 7/1/15 | 100,000 | 102,331 | ||
Series 2008 A, 5% 7/1/15 | 60,000 | 61,399 | ||
Series 2011 A, 4% 7/1/15 | 120,000 | 122,214 | ||
Port of Seattle Rev.: | ||||
Series 2005 A, 5% 3/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 100,000 | 100,659 | ||
Series 2010 B, 4% 6/1/15 | 130,000 | 131,950 | ||
Series 2012 B, 4% 8/1/17 (c) | 115,000 | 123,547 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Washington - continued | ||||
Seattle Muni. Lt. & Pwr. Rev.: | ||||
Series 2008, 5.25% 4/1/15 | $ 100,000 | $ 101,211 | ||
Series 2011 A, 5% 2/1/15 | 305,000 | 306,202 | ||
Washington Ctfs. of Prtn.: | ||||
Series 2003 B, 5% 4/1/15 | 300,000 | 303,456 | ||
Series 2013 D, 4% 7/1/17 | 70,000 | 75,377 | ||
Washington Gen. Oblig.: | ||||
Series 2006 RA, 5% 7/1/15 | 100,000 | 102,361 | ||
Series 2007 RA, 5% 1/1/15 (AMBAC Insured) | 70,000 | 70,010 | ||
Series 2008 C, 5% 1/1/15 | 70,000 | 70,010 | ||
Series 2011 A, 5% 1/1/15 | 65,000 | 65,009 | ||
Series 2011 CR, 4% 7/1/15 | 75,000 | 76,421 | ||
Washington Health Care Facilities Auth. Rev. Series 2014, 5% 3/1/18 | 225,000 | 248,643 | ||
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #3 Rev. Series 1993 C, 0% 7/1/18 | 100,000 | 95,517 | ||
| 2,555,249 | |||
Wisconsin - 0.8% | ||||
Milwaukee County Arpt. Rev. Series 2007 A, 5% 12/1/17 (c) | 200,000 | 215,750 | ||
Milwaukee Gen. Oblig. 5% 2/15/15 (FSA Insured) | 75,000 | 75,436 | ||
Wisconsin Gen. Oblig.: | ||||
Series 2005 1, 5% 5/1/15 | 145,000 | 147,255 | ||
Series 2008 A, 5% 5/1/15 | 100,000 | 101,555 | ||
Wisconsin Health & Edl. Facilities Bonds Series 2013 B, 4%, tender 3/1/18 (b) | 550,000 | 597,498 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Aurora Health Care, Inc. Proj.) Series 2010 A, 5% 4/15/17 | 55,000 | 59,585 | ||
Series 2012 B: | ||||
4% 8/15/15 | 130,000 | 133,002 | ||
5% 8/15/16 | 75,000 | 80,211 | ||
5.625% 2/15/15 (AMBAC Insured) | 90,000 | 90,582 | ||
| 1,500,874 | |||
TOTAL MUNICIPAL BONDS (Cost $112,565,690) |
|
Municipal Notes - 42.1% | |||
Principal Amount | Value | ||
California - 0.5% | |||
San Francisco City & County Arpts. Commission Int'l. Arpt. Rev. Participating VRDN Series Putters 4478Z, 0.24% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (b)(c)(d) | $ 1,000,000 | $ 1,000,000 | |
District Of Columbia - 0.5% | |||
District of Columbia Rev. Series 2007, 0.22% 1/7/15, LOC SunTrust Banks, Inc., VRDN (b) | 1,000,000 | 1,000,000 | |
Florida - 1.6% | |||
Florida Hsg. Fin. Corp. Rev.: | |||
(Stuart Pointe Apts. Proj.) Series B1, 0.25% 1/7/15, LOC SunTrust Banks, Inc., VRDN (b)(c) | 1,480,000 | 1,480,000 | |
Series 2005 B3, 0.25% 1/7/15, LOC SunTrust Banks, Inc., VRDN (b)(c) | 50,000 | 50,000 | |
Orange County Indl. Dev. Auth. Indl. Dev. Rev. (Central Florida Kidney Centers, Inc. Proj.) Series 2000, 0.22% 1/7/15, LOC SunTrust Banks, Inc., VRDN (b) | 1,000,000 | 1,000,000 | |
Tampa Edl. Facilities Rev. (Academy of The Holy Names Proj.) Series 2001, 0.22% 1/7/15, LOC SunTrust Banks, Inc., VRDN (b) | 510,000 | 510,000 | |
| 3,040,000 | ||
Georgia - 0.4% | |||
Cherokee County Dev. Auth. Rev. (Goodwill of North Georgia, Inc. Proj.) Series 2008, 0.22% 1/7/15, LOC SunTrust Banks, Inc., VRDN (b) | 600,000 | 600,000 | |
Fulton County Dev. Auth. Edl. Fa (The Donnollen School, Inc. Proj.) Series 2000, 0.14% 1/7/15, LOC Bank of New York, New York, VRDN (b) | 100,000 | 100,000 | |
| 700,000 | ||
Illinois - 4.5% | |||
Chicago Sales Tax Rev. Series 2002, 0.16% 1/2/15 (Liquidity Facility JPMorgan Chase Bank), VRDN (b) | 800,000 | 800,000 | |
Deutsche Bank Spears/Lifers Trust Participating VRDN Series DB 308, 0.27% 1/7/15 (Liquidity Facility Deutsche Bank AG) (b)(d) | 2,800,000 | 2,800,000 | |
Illinois Toll Hwy. Auth. Toll Hwy. Rev. Series 1998 B: | |||
0.23% 1/2/15 (FSA Insured), VRDN (b) | 2,600,000 | 2,600,000 | |
0.23% 1/7/15 (FSA Insured), VRDN (b) | 2,350,000 | 2,350,000 | |
| 8,550,000 | ||
Indiana - 6.4% | |||
Indiana Dev. Fin. Auth. Envir. Rev. (PSI Energy Proj.): | |||
Series 2003 A, 0.35% 1/7/15, VRDN (b)(c) | 1,600,000 | 1,600,000 | |
Municipal Notes - continued | |||
Principal Amount | Value | ||
Indiana - continued | |||
Indiana Dev. Fin. Auth. Envir. Rev. (PSI Energy Proj.): - continued | |||
Series 2003 B, 0.25% 1/7/15, VRDN (b)(c) | $ 9,580,000 | $ 9,579,972 | |
Indiana Health Facility Fing. Auth. Rev. (Pathfinder Svcs., Inc. Proj.) Series 1996, 0.14% 1/7/15, LOC Wells Fargo Bank NA, VRDN (b) | 845,000 | 845,000 | |
| 12,024,972 | ||
Kentucky - 0.2% | |||
Kentucky Pub. Trans. BAN Series 2013 A, 5% 7/1/17 | 300,000 | 328,848 | |
Louisiana - 3.8% | |||
Saint James Parish Gen. Oblig. (Nucor Steel Louisiana LLC Proj.): | |||
Series 2010 A1, 0.22% 1/7/15, VRDN (b) | 4,000,000 | 4,000,000 | |
Series 2010 B1, 0.2% 1/7/15, VRDN (b) | 3,100,000 | 3,100,000 | |
| 7,100,000 | ||
Maryland - 1.5% | |||
Maryland Health & Higher Edl. Facilities Auth. Rev. Series 1995, 0.19% 1/7/15 (Liquidity Facility Manufacturers & Traders Trust Co.), VRDN (b) | 2,750,000 | 2,750,000 | |
Montgomery County Econ. Dev. Rev. 0.14% 1/7/15, LOC Wells Fargo Bank NA, VRDN (b) | 100,000 | 100,000 | |
| 2,850,000 | ||
Massachusetts - 0.0% | |||
Massachusetts Indl. Fin. Agcy. Poll. Cont. Rev. (New England Pwr. Co. Proj.) Series 1993 B, 0.46% tender 1/7/15, CP mode | 100,000 | 100,000 | |
Michigan - 0.2% | |||
Lowell Mich Ltd. Oblig. Indl. Dev. (Litehouse, Inc. Proj.) Series 2003, 0.44% 1/7/15, LOC Fifth Third Bank, Cincinnati, VRDN (b)(c) | 100,000 | 100,000 | |
Michigan Strategic Fund Ltd. Oblig. Rev.: | |||
(Crest Industries, Inc. Proj.) Series 2000 A, 0.51% 1/7/15, LOC JPMorgan Chase Bank, VRDN (b)(c) | 35,000 | 35,000 | |
(Kay Screen Printing, Inc. Proj.) Series 2000, 0.31% 1/7/15, LOC JPMorgan Chase Bank, VRDN (b)(c) | 200,000 | 200,000 | |
(Press-Way, Inc. Proj.) Series 1998, 0.43% 1/7/15, LOC JPMorgan Chase Bank, VRDN (b)(c) | 100,000 | 100,000 | |
| 435,000 | ||
Municipal Notes - continued | |||
Principal Amount | Value | ||
Mississippi - 0.5% | |||
Mississippi Bus. Fin. Corp. Rev. (Utils. Optimization LLC Proj.) Series 2002 A, 0.24% 1/7/15, LOC Cap. One Bank, VRDN (b)(c) | $ 900,000 | $ 900,000 | |
New Hampshire - 1.3% | |||
New Hampshire Bus. Fin. Auth. Rev. Series 2008, 0.16% 1/2/15, LOC RBS Citizens NA, VRDN (b) | 2,440,000 | 2,440,000 | |
New Jersey - 1.6% | |||
New Jersey Edl. Facilities Auth. Rev. Series 2008 F, 0.25% 1/7/15, LOC RBS Citizens NA, VRDN (b) | 1,200,000 | 1,200,000 | |
New Jersey Health Care Facilities Fing. Auth. Rev. Participating VRDN Series Floaters 3018, 0.43% 1/7/15 (Liquidity Facility Deutsche Bank AG New York Branch) (b)(d) | 1,750,725 | 1,750,725 | |
| 2,950,725 | ||
New York - 0.4% | |||
Rockland County Gen. Oblig. TAN Series 2014, 2% 3/17/15 | 350,000 | 350,903 | |
Ulster County Indl. Dev. Agcy. I (Selux Corp. Proj.) Series A, 0.29% 1/7/15, LOC Manufacturers & Traders Trust Co., VRDN (b)(c) | 365,000 | 365,000 | |
| 715,903 | ||
North Carolina - 0.2% | |||
North Carolina Cap. Facilities Fin. Agcy. Edl. Facilities Rev. Series 2003, 0.14% 1/7/15, LOC Branch Banking & Trust Co., VRDN (b) | 400,000 | 400,000 | |
Ohio - 0.0% | |||
Franklin County Indl. Dev. Rev. (Girl Scout Council Proj.) 0.43% 1/7/15, LOC PNC Bank NA, VRDN (b) | 90,000 | 90,000 | |
Pennsylvania - 0.8% | |||
Butler County Hosp. Auth. Hosp. Rev. Series 2012 A, 0.24% 1/7/15, LOC Citizens Bank of Pennsylvania, VRDN (b) | 300,000 | 300,000 | |
Luzerne County Series A, 0.65% 1/7/15 (FSA Insured), VRDN (b) | 1,150,000 | 1,150,000 | |
| 1,450,000 | ||
Puerto Rico - 1.9% | |||
Puttable Floating Option Tax Receipts Participating VRDN: | |||
Series DB 284, 0.57% 1/7/15 (Liquidity Facility Deutsche Bank AG) (b)(d) | 255,000 | 255,000 | |
Municipal Notes - continued | |||
Principal Amount | Value | ||
Puerto Rico - continued | |||
Puttable Floating Option Tax Receipts Participating VRDN: - continued | |||
Series DB 285, 0.57% 1/7/15 (Liquidity Facility Deutsche Bank AG) (b)(d) | $ 2,955,000 | $ 2,955,000 | |
Series DB 352, 0.57% 1/7/15 (Liquidity Facility Deutsche Bank AG) (b)(d) | 330,000 | 330,000 | |
| 3,540,000 | ||
Rhode Island - 0.9% | |||
Rhode Island Health & Ed. Bldg. Corp. Rev. Series 2007, 0.25% 1/7/15, LOC RBS Citizens NA, VRDN (b) | 720,000 | 720,000 | |
Rhode Island Health & Edl. Bldg. Corp. Higher Ed. Facilities Rev. Series 2005 A: | |||
0.17% 1/2/15, LOC RBS Citizens NA, VRDN (b) | 590,000 | 590,000 | |
0.2% 1/2/15, LOC RBS Citizens NA, VRDN (b) | 315,000 | 315,000 | |
| 1,625,000 | ||
Tennessee - 0.3% | |||
Nashville Metropolitan Govt. Edl. Facilites Rev. (Univ. School Proj.) Series 2002, 0.22% 1/7/15, LOC SunTrust Banks, Inc., VRDN (b) | 540,000 | 540,000 | |
Texas - 13.4% | |||
Port Arthur Navigation District Envir. Facilities Rev. (Motiva Enterprises LLC Proj.): | |||
Series 2001 A, 0.2% 1/2/15, VRDN (b) | 940,000 | 940,000 | |
Series 2009 A, 0.2% 1/2/15, VRDN (b) | 3,200,000 | 3,200,000 | |
Series 2009 C, 0.2% 1/2/15, VRDN (b) | 4,305,000 | 4,305,000 | |
Series 2010 B, 0.2% 1/2/15, VRDN (b) | 2,980,000 | 2,980,000 | |
Series 2010 C, 0.2% 1/2/15, VRDN (b) | 1,780,000 | 1,780,000 | |
Series 2010 D, 0.2% 1/2/15, VRDN (b) | 9,400,000 | 9,400,000 | |
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev. Participating VRDN Series 2974, 0.24% 1/7/15 (Liquidity Facility Cr. Suisse AG) (b)(d) | 2,700,000 | 2,700,000 | |
| 25,305,000 | ||
Utah - 0.1% | |||
Sanpete County School Facilities Rev. 0.14% 1/7/15, LOC U.S. Bank NA, Cincinnati, VRDN (b) | 165,000 | 165,000 | |
Municipal Notes - continued | |||
Principal Amount | Value | ||
Virginia - 0.2% | |||
Arlington County Indl. Rev. (Nat'l. Science Teachers Assoc. Proj.) Series 2000 A, 0.22% 1/7/15, LOC SunTrust Banks, Inc., VRDN (b) | $ 310,000 | $ 310,000 | |
Lynchburg Indl. Dev. Auth. Recreational (Young Men's Christian Assoc. of Central Virginia Proj.) Series 2001, 0.14% 1/7/15, LOC Wells Fargo Bank NA, VRDN (b) | 120,000 | 120,000 | |
| 430,000 | ||
Washington - 0.4% | |||
Washington Health Care Facilities Auth. Rev. Participating VRDN Series MS 3354, 0.21% 1/7/15 (Liquidity Facility Morgan Stanley Bank, West Valley City Utah) (b)(d) | 700,000 | 700,000 | |
Wisconsin - 0.1% | |||
Kimberly Dev. Rev. (Fox Cities YMCA Proj.) Series 2002, 0.43% 1/7/15, LOC BMO Harris Bank NA, VRDN (b) | 200,000 | 200,000 | |
Wyoming - 0.4% | |||
Converse County Envir. Impt. Rev. Series 1995, 0.28% 1/7/15, VRDN (b)(c) | 800,000 | 800,000 | |
TOTAL MUNICIPAL NOTES (Cost $79,372,372) |
| ||
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $191,938,062) | 192,059,240 | ||
NET OTHER ASSETS (LIABILITIES) - (1.8)% | (3,461,540) | ||
NET ASSETS - 100% | $ 188,597,700 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
CP | - | COMMERCIAL PAPER |
TAN | - | TAX ANTICIPATION NOTE |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect 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 | $ 35 |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
Health Care | 17.7% |
Industrial Development | 17.0% |
Electric Utilities | 16.1% |
General Obligations | 14.5% |
Transportation | 11.3% |
Synthetics | 6.6% |
Education | 6.3% |
Special Tax | 5.4% |
Others* (Individually Less Than 5%) | 5.1% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
| December 31, 2014 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $191,938,062) |
| $ 192,059,240 |
Cash |
| 53,242 |
Receivable for investments sold | 8 | |
Receivable for fund shares sold | 3,007,700 | |
Interest receivable | 1,327,484 | |
Receivable from investment adviser for expense reductions | 4,903 | |
Other receivables | 16 | |
Total assets | 196,452,593 | |
|
|
|
Liabilities | ||
Payable for investments purchased | $ 1,577,668 | |
Delayed delivery | 618,819 | |
Payable for fund shares redeemed | 5,587,005 | |
Distributions payable | 7,555 | |
Accrued management fee | 45,315 | |
Other affiliated payables | 18,531 | |
Total liabilities | 7,854,893 | |
|
|
|
Net Assets | $ 188,597,700 | |
Net Assets consist of: |
| |
Paid in capital | $ 188,476,622 | |
Distributions in excess of net investment income | (100) | |
Net unrealized appreciation (depreciation) on investments | 121,178 | |
Net Assets | $ 188,597,700 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
| December 31, 2014 | |
Conservative Income Municipal Bond: | $ 10.04 | |
|
|
|
Institutional Class: | $ 10.04 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended December 31, 2014 | |
Investment Income |
|
|
Interest |
| $ 679,178 |
Income from Fidelity Central Funds |
| 35 |
Total income |
| 679,213 |
|
|
|
Expenses | ||
Management fee | $ 367,333 | |
Transfer agent fees | 80,692 | |
Independent trustees' compensation | 482 | |
Miscellaneous | 416 | |
Total expenses before reductions | 448,923 | |
Expense reductions | (41,830) | 407,093 |
Net investment income (loss) | 272,120 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 14,750 |
Change in net unrealized appreciation (depreciation) on investment securities | 89,733 | |
Net gain (loss) | 104,483 | |
Net increase (decrease) in net assets resulting from operations | $ 376,603 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended | For the period |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 272,120 | $ 8,926 |
Net realized gain (loss) | 14,750 | 918 |
Change in net unrealized appreciation (depreciation) | 89,733 | 31,445 |
Net increase (decrease) in net assets resulting from operations | 376,603 | 41,289 |
Distributions to shareholders from net investment income | (272,095) | (9,091) |
Distributions to shareholders from net realized gain | (19,173) | - |
Total distributions | (291,268) | (9,091) |
Share transactions - net increase (decrease) | 138,343,926 | 50,136,241 |
Total increase (decrease) in net assets | 138,429,261 | 50,168,439 |
|
|
|
Net Assets | ||
Beginning of period | 50,168,439 | - |
End of period (including distributions in excess of net investment income of $100 and distributions in excess of net investment income of $165, respectively) | $ 188,597,700 | $ 50,168,439 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Conservative Income Municipal Bond
Years ended December 31, | 2014 | 2013H |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 10.02 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .015 | .002 |
Net realized and unrealized gain (loss) | .021 | .020 |
Total from investment operations | .036 | .022 |
Distributions from net investment income | (.015) | (.002) |
Distributions from net realized gain | (.001) | - |
Total distributions | (.016) | (.002) |
Net asset value, end of period | $ 10.04 | $ 10.02 |
Total ReturnB, C | .36% | .22% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions | .40% | .40%A |
Expenses net of fee waivers, if any | .40% | .40%A |
Expenses net of all reductions | .40% | .40%A |
Net investment income (loss) | .15% | .11%A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 45,107 | $ 22,205 |
Portfolio turnover rateF | 51% | -%G, J |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any 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 Amount represents less than 1%.
H For the period October 15, 2013 (commencement of operations) to December 31, 2013.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from 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 not annualized.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2014 | 2013H |
Selected Per-Share Data |
|
|
Net asset value, beginning of period | $ 10.02 | $ 10.00 |
Income from Investment Operations |
|
|
Net investment income (loss) D | .025 | .004 |
Net realized and unrealized gain (loss) | .021 | .020 |
Total from investment operations | .046 | .024 |
Distributions from net investment income | (.025) | (.004) |
Distributions from net realized gain | (.001) | - |
Total distributions | (.026) | (.004) |
Net asset value, end of period | $ 10.04 | $ 10.02 |
Total ReturnB, C | .46% | .24% |
Ratios to Average Net Assets E, I |
|
|
Expenses before reductions | .35% | .35%A |
Expenses net of fee waivers, if any | .30% | .30%A |
Expenses net of all reductions | .30% | .30%A |
Net investment income (loss) | .25% | .22%A |
Supplemental Data |
|
|
Net assets, end of period (000 omitted) | $ 143,491 | $ 27,963 |
Portfolio turnover rateF | 51% | -%G, J |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Calculated based on average shares outstanding during the period.
E Fees and expenses of any 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 Amount represents less than 1%.
H For the period October 15, 2013 (commencement of operations) to December 31, 2013.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from 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 not annualized.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2014
1. Organization.
Fidelity Conservative Income Municipal Bond 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 Conservative Income Municipal Bond 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, 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.
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from
Annual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Municipal securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and net asset value (NAV) include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income - continued
4:00 p.m. Eastern time and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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 fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. During the period, the Fund incurred a corporate tax liability on undistributed short-term capital gain which is included in Miscellaneous expense on the Statement of Operations. As of December 31, 2014, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount.
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 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 207,632 |
Gross unrealized depreciation | (86,373) |
Net unrealized appreciation (depreciation) on securities | $ 121,259 |
|
|
Tax Cost | $ 191,937,981 |
The tax-based components of distributable earnings as of period end were as follows:
Net unrealized appreciation (depreciation) on securities and other investments | $ 121,259 |
The tax character of distributions paid was as follows:
| December 31, 2014 | December 31, 2013 |
Tax-exempt Income | $ 272,095 | $ 9,091 |
Ordinary Income | 19,173 | - |
Total | $ 291,268 | $ 9,091 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in 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. 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
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $100,321,616 and $25,891,993, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .30% of the Fund's average net assets. Under the management contract, the investment adviser pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense, including commitment fees.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent, and servicing agent for each class of the Fund. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, with respect to all classes of the Fund to perform the transfer agency, dividend disbursing, and shareholder servicing functions. FIIOC receives asset-based fees of .10% and .05% of average net assets for Conservative Income Municipal Bond and Institutional Class, respectively. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC pays for
Annual Report
5. 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, transfer agent fees for each class were as follows:
| Amount |
Conservative Income Municipal Bond | $ 38,882 |
Institutional Class | 41,810 |
| $ 80,692 |
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, under which FSC maintains the Fund's accounting records. The fee is paid to Citibank and is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 $95 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. This reimbursement will remain in place through February 29, 2016. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense | Reimbursement |
| ||
Institutional Class | .30% | $ 41,627 |
Annual Report
Notes to Financial Statements - continued
7. Expense Reductions - continued
In addition, through arrangements with the Fund's custodian, 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 expenses by $203.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2014 | 2013 A |
From net investment income |
|
|
Conservative Income Municipal Bond | $ 58,697 | $ 3,085 |
Institutional Class | 213,398 | 6,006 |
Total | $ 272,095 | $ 9,091 |
From net realized gain |
|
|
Conservative Income Municipal Bond | $ 4,693 | $ - |
Institutional Class | 14,480 | - |
Total | $ 19,173 | $ - |
A For the period October 15, 2013 (commencement of operations) to December 31, 2013.
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars | ||
Years ended December 31, | 2014 | 2013 A | 2014 | 2013 A |
Conservative Income Municipal Bond |
|
|
| |
Shares sold | 5,731,977 | 2,244,269 | $ 57,532,962 | $ 22,469,344 |
Reinvestment of distributions | 5,099 | 282 | 51,191 | 2,830 |
Shares redeemed | (3,459,068) | (28,155) | (34,727,886) | (281,931) |
Net increase (decrease) | 2,278,008 | 2,216,396 | $ 22,856,267 | $ 22,190,243 |
Institutional Class |
|
|
|
|
Shares sold | 15,995,878 | 2,790,456 | $ 160,570,529 | $ 27,940,330 |
Reinvestment of distributions | 19,610 | 576 | 196,896 | 5,768 |
Shares redeemed | (4,509,814) | (10) | (45,279,766) | (100) |
Net increase (decrease) | 11,505,674 | 2,791,022 | $ 115,487,659 | $ 27,945,998 |
A For the period October 15, 2013 (commencement of operations) to December 31, 2013.
Annual Report
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Conservative Income Municipal Bond Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Conservative Income Municipal Bond Fund (a fund of Fidelity Municipal Trust) at December 31, 2014, the results of its operations for the year then ended, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Conservative Income Municipal Bond Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 24, 2015
Annual Report
Trustees and Officers
The Trustees and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Elizabeth Acton, James C. Curvey, and John Engler, each of the Trustees oversees 233 funds. Ms. Acton and Mr. Engler each oversee 215 funds. Mr. Curvey oversees 407 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statements of Additional Information (SAIs) include more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
James C. Curvey (1935) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), and a Director of FMR Co., Inc. (2007-2014). |
Abigail P. Johnson (1961) | |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees | |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC, President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
Year of Election or Appointment: 2013 Trustee | |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
John Engler (1948) | |
Year of Election or Appointment: 2014 Trustee | |
| Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association. |
Albert R. Gamper, Jr. (1942) | |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees | |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
Year of Election or Appointment: 2010 Trustee | |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
Year of Election or Appointment: 2008 Trustee | |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
Year of Election or Appointment: 2009 Trustee | |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees | |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation | |
Elizabeth Paige Baumann (1968) | |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer | |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Robert P. Brown (1963) | |
Year of Election or Appointment: 2012 Vice President of Fidelity's Bond Funds | |
| Mr. Brown also serves as Vice President of other funds. Mr. Brown serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director, Research of Fidelity Management & Research (U.K.) Inc. (2008-present), and is an employee of Fidelity Investments. Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's Money Market Funds (2010-2012). |
Marc Bryant (1966) | |
Year of Election or Appointment: 2013 Assistant Secretary | |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) | |
Year of Election or Appointment: 2013 President and Treasurer | |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) | |
Year of Election or Appointment: 2014 Chief Financial Officer | |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) | |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) | |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Limited (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Chris Maher (1972) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) | |
Year of Election or Appointment: 2014 Vice President | |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) | |
Year of Election or Appointment: 2009 Assistant Treasurer | |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) | |
Year of Election or Appointment: 2008 Chief Compliance Officer | |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (2014-present), FMR (2014-present), Fidelity Investments Money Management, Inc. (2014-present), and is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
Year of Election or Appointment: 2011 Deputy Treasurer | |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2014, $2,347, or, if subsequently determined to be different, the net capital gain of such year.
During fiscal year ended 2014, 100% of the fund's income dividends was free from federal income tax, and 11.67% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Conservative Income Municipal Bond Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the 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 relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by 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. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2014 meeting, the Board, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. 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 fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and 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. In connection with a separate internal corporate reorganization involving Fidelity Management & Research (Japan) Inc. (FMR Japan), the Board approved certain non-material amendments to the fund's sub-advisory agreement with FMR Japan to reflect that, after this reorganization, Fidelity Management & Research (Japan) Limited will carry on the business of FMR Japan. The Board noted that no changes to the portfolio managers or to the foreign research or investment advisory services provided to the fund were expected in connection with reorganization and that the same personnel and resources would continue to be available to the fund at the new entity.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. 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 to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, the Investment Advisers), and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the 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 over time 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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
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 a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing a new Fidelity adviser, Fidelity SelectCo, LLC, to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. As the fund recently commenced operations, the Board did not believe that it was appropriate to assign significant weight to its limited investment performance.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. The Board considered two proprietary management fee comparisons for the period of the fund's operations 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG % is in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the chart and considered by the Board. Because the vast majority of competitor funds' management fees do not cover non-management expenses, for a more meaningful comparison of management fees, the fund is compared on the basis of a hypothetical "net management fee," which is derived by subtracting payments made by FMR for "fund-level" non-management expenses (including pricing and bookkeeping fees and fees paid to non-affiliated custodians) from the fund's management fee. In this regard, the Board considered that net management fees can vary from year to year because of differences in "fund-level" non-management expenses. The Board noted, however, that FMR does not pay transfer agent fees or other "class-level" expenses under the fund's management contract.
Annual Report
Fidelity Conservative Income Municipal Bond Fund
The Board noted that the fund's hypothetical net management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for the period.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, the Board considered the fund's hypothetical net management fee as well as the fund's gross management fee. The Board also considered other "fund-level" expenses, such as pricing and bookkeeping fees and custodial, legal, and audit fees. The Board also considered other "class-level" expenses, such as transfer agent fees. The Board also noted that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund. As part of its review, the Board also considered the current total expense ratios 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.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board noted that the total expense ratio of each class ranked below its competitive median for the period.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients. The Board noted the findings of the 2013 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was 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 servicing the fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. 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 Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Annual Report
The Board also reviewed Fidelity's non-fund businesses and 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 was satisfied that the profitability was not excessive.
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 as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
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 certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) the methodology with respect to competitive fund data and peer group classifications; (viii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (ix) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Annual 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 factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments
Money Management, Inc.
Fidelity Management & Research
(Japan) Limited
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
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®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
CMB-UANN-0215 1.967791.101
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Limited Term
Municipal Income Fund
- Class A, Class T, Class B and
Class C
Annual Report
December 31, 2014
(Fidelity Cover Art)
Class A, Class T, Class B,
and Class C are classes of
Fidelity® Limited Term
Municipal Income Fund
Contents
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
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/proxyvotingresults 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 LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or www.401k.com as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow. Returns reflect the conversion of Class B shares to Class A shares after a maximum of four years.
Average Annual Total Returns
Periods ended December 31, 2014 | Past 1 | Past 5 | Past 10 |
Class A (incl. 2.75% sales charge) | -0.93% | 1.31% | 2.29% |
Class T (incl. 2.75% sales charge) | -0.89% | 1.32% | 2.28% |
Class B (incl. contingent deferred sales charge) A | -1.67% | 1.33% | 2.28% |
Class C (incl. contingent deferred sales charge) B | 0.11% | 1.10% | 1.78% |
A Class B shares' contingent deferred sales charges included in the past one year, past five years, and past ten years total return figures are 3%, 0%, and 0%, respectively.
B Class C shares' contingent deferred sales charge included in the past one year, past five years, and past ten years total return figures are 1%, 0%, and 0%, respectively.
See accompanying notes which are an integral part of the financial statements.
Annual Report
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Limited Term Municipal Income Fund - Class A on December 31, 2004, and the current 2.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Barclays® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds posted a strong result for the 12 months ending December 31, 2014, driven by steady demand, tight supply and improving credit fundamentals. The Barclays® Municipal Bond Index returned 9.05%, significantly outperforming the U.S. investment-grade taxable bond market. Munis were driven, in part, by continued economic growth, declining long-term interest rates, and the relative attractiveness of U.S. markets amid global economic and political uncertainty. More specific to munis, prices rose as investors became more upbeat about the fundamental outlook of many state and local governments. Additionally, a steady stream of municipal bond cash flows - coupon payments, maturities and those due to early bond calls by issuers - fueled reinvestment. Meanwhile, investors took solace that the financial distress experienced by Puerto Rico, Detroit and a few California cities in bankruptcy did not expand to the broader market. Lastly, the tax advantages of munis had particular appeal due to the higher federal tax rates for top earners that took effect in 2013, as well as the new 3.8% Medicare tax on unearned, non-municipal investment income.
Comments from Mark Sommer, Lead Portfolio Manager of Fidelity Advisor® Limited Term Municipal Income Fund: For the year, the fund's Class A, Class T, Class B and Class C shares returned 1.87%, 1.91%, 1.33% and 1.11%, respectively (excluding sales charges). Meanwhile, the Barclays® 1-6 Year Municipal Bond Index returned 1.78%. I kept the fund's interest rate sensitivity in line with the benchmark, and evaluated bonds based on their yields as well as their potential for price appreciation. The fund's yield-curve positioning was helpful to performance. We owned more bonds with maturities of five to 10 years compared with the index, and had less exposure to two- to three-year bonds. Longer-term bonds outperformed, driven in large measure by investors' appetite for more yield. My decision to overweight the health care sector was rewarded, as investors' appetite for yield helped it outperform higher-quality sectors. We also benefited from an overweighting in investment-grade bonds rated A and below, due to strong demand for their marginally higher yields. There weren't any major disappointments. That said, the fund's underweighting to bonds issued by Citizen's Property Insurance Corporation modestly detracted from results, reflecting the strong performance of these securities due to strong demand.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2014 to December 31, 2014).
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. 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 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. 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.
Annual Report
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,003.80 | $ 3.99 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.22 | $ 4.02 |
Class T | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,003.90 | $ 3.79 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.42 | $ 3.82 |
Class B | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.70 | $ 7.06 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class C | 1.53% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.00 | $ 7.71 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.49 | $ 7.78 |
Limited Term Municipal Income | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.40 | $ 2.43 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Institutional Class | .54% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,005.00 | $ 2.73 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.48 | $ 2.75 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five States as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
New York | 10.6 | 11.9 |
Florida | 9.0 | 8.0 |
Illinois | 8.6 | 10.2 |
California | 8.6 | 9.3 |
Texas | 7.3 | 7.2 |
Top Five Sectors as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
General Obligations | 38.1 | 35.8 |
Electric Utilities | 12.5 | 12.8 |
Transportation | 9.9 | 10.8 |
Special Tax | 9.4 | 11.3 |
Health Care | 8.7 | 8.4 |
Weighted Average Maturity as of December 31, 2014 | ||
|
| 6 months ago |
Years | 3.3 | 3.2 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2014 | ||
|
| 6 months ago |
Years | 2.7 | 2.7 |
Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | AAA 9.2% |
| ![]() | AAA 8.2% |
| ||
![]() | AA,A 76.0% |
| ![]() | AA,A 77.4% |
| ||
![]() | BBB 6.4% |
| ![]() | BBB 5.9% |
| ||
![]() | BB and Below 0.0% |
| ![]() | BB and Below 0.1% |
| ||
![]() | Not Rated 1.6% |
| ![]() | Not Rated 2.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2014
Showing Percentage of Net Assets
Municipal Bonds - 93.2% | ||||
| Principal Amount (000s) | Value (000s) | ||
Alaska - 0.6% | ||||
Anchorage Gen. Oblig.: | ||||
Series A: | ||||
5% 9/1/20 | $ 1,090 | $ 1,288 | ||
5% 9/1/22 | 1,200 | 1,455 | ||
Series B: | ||||
5% 9/1/18 | 3,685 | 4,198 | ||
5% 9/1/20 | 2,000 | 2,364 | ||
5% 9/1/22 | 1,425 | 1,728 | ||
Series C: | ||||
5% 9/1/18 | 1,000 | 1,139 | ||
5% 9/1/19 | 2,150 | 2,500 | ||
5% 9/1/20 | 1,260 | 1,489 | ||
5% 9/1/22 | 1,000 | 1,213 | ||
Series D: | ||||
5% 9/1/19 | 3,895 | 4,528 | ||
5% 9/1/20 | 2,000 | 2,364 | ||
| 24,266 | |||
Arizona - 2.5% | ||||
Arizona Ctfs. of Prtn. Series 2010 A, 5% 10/1/16 (FSA Insured) | 13,000 | 13,965 | ||
Arizona Health Facilities Auth. Rev. (Scottsdale Lincoln Hospitals Proj.) Series 2014 A: | ||||
5% 12/1/18 | 500 | 565 | ||
5% 12/1/19 | 600 | 689 | ||
5% 12/1/20 | 820 | 952 | ||
5% 12/1/21 | 1,105 | 1,294 | ||
5% 12/1/22 | 800 | 941 | ||
5% 12/1/23 | 1,000 | 1,184 | ||
5% 12/1/24 | 1,500 | 1,787 | ||
Arizona School Facilities Board Ctfs. of Prtn.: | ||||
Series 2005 A2, 5% 9/1/16 (Pre-Refunded to 9/1/15 @ 100) | 11,000 | 11,347 | ||
Series 2008, 5.5% 9/1/16 | 1,385 | 1,495 | ||
Arizona Wtr. Infrastructure Fin. Auth. Rev. Series 2009 A: | ||||
5% 10/1/18 | 1,000 | 1,144 | ||
5% 10/1/20 (Pre-Refunded to 10/1/19 @ 100) | 5,180 | 6,078 | ||
Maricopa County School District #28 Kyrene Elementary Series 2010 B: | ||||
1% 7/1/19 (a) | 900 | 955 | ||
1% 7/1/20 (a) | 1,360 | 1,444 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Arizona - continued | ||||
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.: | ||||
Series 2009 A, 5% 7/1/15 | $ 5,835 | $ 5,972 | ||
Series 2009 B, 5% 7/1/16 | 5,090 | 5,432 | ||
Phoenix Indl. Solid Waste Disp. Rev. Bonds (Republic Svc., Inc. Proj.) Series 2013, 0.4%, tender 2/2/15 (d)(e) | 17,350 | 17,350 | ||
Pima County Ctfs. of Prtn. Series 2014: | ||||
5% 12/1/21 | 2,210 | 2,580 | ||
5% 12/1/22 | 2,470 | 2,910 | ||
5% 12/1/23 | 3,425 | 4,071 | ||
Pima County Swr. Sys. Rev.: | ||||
Series 2011 B, 5% 7/1/19 | 3,225 | 3,722 | ||
Series 2012 A: | ||||
5% 7/1/18 | 825 | 934 | ||
5% 7/1/19 | 1,550 | 1,796 | ||
Tucson Gen. Oblig. Series 2005, 5% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,250 | 1,278 | ||
Univ. Med. Ctr. Corp. Hosp. Rev. Series 2011: | ||||
5% 7/1/16 | 3,055 | 3,224 | ||
5% 7/1/17 | 3,315 | 3,595 | ||
5% 7/1/18 | 3,365 | 3,732 | ||
| 100,436 | |||
California - 8.6% | ||||
Alameda Corridor Trans. Auth. Rev.: | ||||
Series 2004 A, 0% 10/1/19 | 3,600 | 3,244 | ||
Series 2013 A, 5% 10/1/22 | 2,190 | 2,633 | ||
Bay Area Toll Auth. San Francisco Bay Toll Bridge Rev. Bonds 1.5%, tender 4/2/18 | 5,200 | 5,242 | ||
California Gen. Oblig.: | ||||
Bonds 3%, tender 12/1/19 (d) | 15,600 | 16,673 | ||
5% 9/1/18 | 7,500 | 8,547 | ||
5% 9/1/19 | 20,000 | 23,301 | ||
5% 9/1/20 | 20,000 | 23,661 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.) Series 2008 H, 5.125% 7/1/22 (Pre-Refunded to 7/1/15 @ 100) | 1,005 | 1,029 | ||
Bonds (Children's Hosp. of Orange County Proj.) Series 2012 A, 1.84%, tender 7/1/17 (d) | 4,000 | 4,060 | ||
California Infra Eco Dev. Bank Rev. Bonds Series 2013 A1: | ||||
0.32%, tender 4/1/16 (d) | 17,000 | 17,000 | ||
0.32%, tender 4/1/16 (d) | 30,000 | 30,000 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Pub. Works Board Lease Rev.: | ||||
(Dept. of Corrections & Rehab. Proj.) Series 2011 C, 5% 10/1/18 | $ 1,750 | $ 1,991 | ||
(Riverside Campus Proj.) Series 2012 H, 5% 4/1/22 | 1,000 | 1,199 | ||
(Univ. Proj.) Series 2011 B: | ||||
5% 10/1/18 | 2,740 | 3,124 | ||
5% 10/1/19 | 1,490 | 1,735 | ||
(Various Cap. Projs.): | ||||
Series 2011 A: | ||||
5% 10/1/18 | 6,475 | 7,366 | ||
5% 10/1/19 | 5,000 | 5,805 | ||
5% 10/1/20 | 2,525 | 2,980 | ||
Series 2012 A, 5% 4/1/21 | 1,000 | 1,189 | ||
Series 2012 G, 5% 11/1/22 | 1,250 | 1,508 | ||
(Various Judicial Council Projects) Series 2011 D, 5% 12/1/19 | 4,100 | 4,776 | ||
Series 2009 J, 5% 11/1/17 | 2,300 | 2,561 | ||
Series 2010 A: | ||||
5% 3/1/16 | 2,000 | 2,109 | ||
5% 3/1/17 | 5,405 | 5,891 | ||
California Statewide Cmntys. Dev. Auth. Rev. Bonds: | ||||
Series 2002 C, 5%, tender 5/1/17 (d) | 4,000 | 4,389 | ||
Series 2009 E2, 5%, tender 5/1/17 (d) | 2,000 | 2,195 | ||
Contra Costa Trans. Auth. Sales Tax Rev. Bonds Series 2012 A, 0.474%, tender 12/12/15 (d) | 12,500 | 12,505 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev. Series 2013 A, 4% 6/1/21 | 3,500 | 3,975 | ||
Los Angeles County Metropolitan Trans. Auth. Sales Tax Rev. Series 2013 A: | ||||
5% 7/1/18 | 9,750 | 11,112 | ||
5% 7/1/19 | 4,400 | 5,130 | ||
Los Angeles County Pub. Works Fing. Auth. Lease Rev. Series 2010 A, 5% 8/1/17 | 5,000 | 5,511 | ||
Los Angeles Gen. Oblig. Series 2011 B, 5% 9/1/18 | 20,960 | 23,984 | ||
Los Angeles Muni. Impt. Corp. Lease Rev. Series 2012 C: | ||||
4.625% 3/1/18 | 1,500 | 1,669 | ||
5% 3/1/19 | 2,935 | 3,375 | ||
Los Angeles Unified School District Ctfs. of Prtn. (Multiple Properties Proj.) Series 2010 A: | ||||
5% 12/1/16 | 2,025 | 2,190 | ||
5% 12/1/17 | 9,790 | 10,931 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Metropolitan Wtr. District of Southern California Wtr. Rev. Bonds Series 2011 A2, 0.19%, tender 5/1/15 (d) | $ 18,000 | $ 18,000 | ||
Monterey County Pub. Impt. Corp. Ctfs. of Prtn. (Refing. Proj.) Series 2009, 5% 8/1/17 (FSA Insured) | 2,130 | 2,349 | ||
Northern California Pwr. Agcy. Rev.: | ||||
(Geothermal #3 Proj.) Series 2009 A, 5% 7/1/15 | 2,170 | 2,221 | ||
(Hydroelectric #1 Proj.) Series 2010 A: | ||||
4% 7/1/15 | 2,000 | 2,037 | ||
5% 7/1/18 | 2,000 | 2,264 | ||
Oakland Unified School District Alameda County Series 2013, 5.5% 8/1/23 | 1,000 | 1,206 | ||
Port of Oakland Rev. Series 2012 P, 5% 5/1/21 (e) | 2,500 | 2,938 | ||
Rancho Cucamonga Redev. Agcy. (Rancho Redev. Proj.): | ||||
5% 9/1/23 (FSA Insured) | 1,350 | 1,631 | ||
5% 9/1/24 (FSA Insured) | 2,300 | 2,788 | ||
Riverside County Asset Leasing Rev. (Riverside Cap. Proj.) Series 2012 A: | ||||
4% 6/1/17 | 1,750 | 1,867 | ||
5% 6/1/17 | 3,700 | 4,034 | ||
5% 6/1/18 | 6,470 | 7,225 | ||
Sacramento Muni. Util. District Elec. Rev. Series 2011 X, 5% 8/15/21 | 4,000 | 4,816 | ||
Sacramento Pwr. Auth. Cogeneration Proj. Rev. Series 2005 A, 5% 7/1/18 (AMBAC Insured) | 2,890 | 2,943 | ||
San Bernardino County Ctfs. of Prtn. (Arrowhead Proj.) Series 2009 A: | ||||
5% 8/1/16 | 5,450 | 5,752 | ||
5% 8/1/18 | 8,000 | 8,902 | ||
San Diego Cmnty. College District Series 2007, 0% 8/1/16 (FSA Insured) | 1,160 | 1,147 | ||
San Diego Pub. Facilities Fing. Auth. Swr. Rev. Series 2009 A, 5% 5/15/15 | 1,845 | 1,877 | ||
San Pablo Calif Redev. Agcy. Series 2014 A, 5% 6/15/24 (FSA Insured) | 1,380 | 1,658 | ||
Stockton Unified School District Gen. Oblig. 5% 7/1/18 (FSA Insured) | 1,035 | 1,159 | ||
| 341,404 | |||
Colorado - 0.2% | ||||
Colorado Health Facilities Auth. Rev. Bonds (Catholic Health Initiatives Proj.) Series 2008 C4, 4%, tender 11/12/15 (d) | 4,200 | 4,334 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Colorado - continued | ||||
Colorado Reg'l. Trans. District Ctfs. of Prtn. Series 2014 A, 5% 6/1/23 | $ 3,860 | $ 4,633 | ||
Univ. of Colorado Enterprise Sys. Rev. Series 2009 A, 5% 6/1/17 | 500 | 551 | ||
| 9,518 | |||
Connecticut - 2.4% | ||||
Connecticut Dev. Auth. Poll. Cont. Rev. Bonds Series 2011 A, 1.55%, tender 4/1/15 (d)(e) | 4,300 | 4,312 | ||
Connecticut Gen. Oblig.: | ||||
(Econ. Recovery Proj.) Series 2009 A: | ||||
5% 1/1/15 | 10,500 | 10,500 | ||
5% 1/1/16 | 2,700 | 2,828 | ||
Series 2012 C, 5% 6/1/21 | 23,420 | 27,870 | ||
Series 2012 D, 0.33% 9/15/15 (d) | 6,000 | 6,011 | ||
Series 2013 A: | ||||
0.18% 3/1/15 (d) | 2,800 | 2,801 | ||
0.27% 3/1/16 (d) | 1,100 | 1,102 | ||
0.38% 3/1/17 (d) | 1,400 | 1,402 | ||
Series 2014 C, 5% 12/15/16 | 16,070 | 17,456 | ||
Series 2014 D, 2% 6/15/16 | 3,400 | 3,477 | ||
Connecticut Health & Edl. Facilities Auth. Rev. Bonds (Ascension Health Cr. Group Proj.) Series 1998 B, 1.55%, tender 2/1/17 (d) | 2,860 | 2,908 | ||
Connecticut Hsg. Fin. Auth. Series 2013 B2, 4% 11/15/32 | 7,700 | 8,341 | ||
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev. Series 2011 A, 5% 12/1/18 | 5,575 | 6,376 | ||
New Haven Gen. Oblig. Series 2013 A, 5% 8/1/15 | 1,000 | 1,025 | ||
| 96,409 | |||
Delaware, New Jersey - 0.1% | ||||
Delaware River & Bay Auth. Rev. Series 2014 C: | ||||
5% 1/1/20 | 2,500 | 2,888 | ||
5% 1/1/21 | 2,000 | 2,339 | ||
| 5,227 | |||
District Of Columbia - 0.4% | ||||
District of Columbia Gen. Oblig. Series 2007 B, 5% 6/1/16 (AMBAC Insured) | 3,555 | 3,782 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
District Of Columbia - continued | ||||
District of Columbia Rev. (Medlantic/Helix Proj.) Series 1998 C, 5% 8/15/15 (FSA Insured) | $ 1,500 | $ 1,543 | ||
District of Columbia Univ. Rev. Bonds (Georgetown Univ. Proj.) Series 2001 B, 4.7%, tender 4/1/18 (d) | 8,500 | 9,308 | ||
| 14,633 | |||
Florida - 9.0% | ||||
Alachua County Health Facilities Auth. Health Facilities Rev. (Shands Teaching Hospitals & Clinics, Inc. Proj.) Series 2010 B, 5% 12/1/15 | 4,395 | 4,555 | ||
Brevard County School Board Ctfs. of Prtn. Series 2014, 5% 7/1/21 | 1,000 | 1,182 | ||
Broward County Arpt. Sys. Rev. Series 2012 Q1, 5% 10/1/21 | 1,000 | 1,193 | ||
Broward County School Board Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 7/1/15 (FSA Insured) | 5,495 | 5,620 | ||
Series 2012 A: | ||||
5% 7/1/19 | 7,000 | 8,085 | ||
5% 7/1/20 | 15,070 | 17,604 | ||
Citizens Property Ins. Corp. Series 2010 A1, 5% 6/1/15 (FSA Insured) | 14,005 | 14,277 | ||
Clay County Infrastructure Sales Surtax Rev. 5% 10/1/15 (Assured Guaranty Corp. Insured) | 7,745 | 8,019 | ||
Clearwater Wtr. and Swr. Rev. Series 2011: | ||||
4% 12/1/16 | 1,265 | 1,348 | ||
5% 12/1/17 | 1,685 | 1,877 | ||
5% 12/1/18 | 685 | 784 | ||
5% 12/1/19 | 1,820 | 2,124 | ||
5% 12/1/20 | 1,000 | 1,178 | ||
Collier County Indl. Dev. Auth. Healthcare Facilities Rev. (NCH Healthcare Sys. Proj.) Series 2011: | ||||
5% 10/1/16 | 1,530 | 1,630 | ||
5% 10/1/17 | 1,455 | 1,586 | ||
Escambia County Solid Waste Disp. Rev. Bonds (Gulf Pwr. Co. Proj.) Series 2009, 1.35%, tender 6/2/15 (d) | 1,900 | 1,907 | ||
Florida Board of Ed. Series 2005 B, 5% 1/1/18 | 21,080 | 21,291 | ||
Florida Board of Ed. Lottery Rev. Series 2011 A, 5% 7/1/20 | 8,600 | 10,081 | ||
Florida Board of Ed. Pub. Ed. Cap. Outlay: | ||||
Series 2009 C: | ||||
5% 6/1/16 | 3,000 | 3,194 | ||
5% 6/1/20 | 3,625 | 4,243 | ||
Series 2012 C, 5% 6/1/16 | 3,585 | 3,816 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Florida Dept. of Envir. Protection Rev. Series 2012 A, 5% 7/1/19 | $ 15,800 | $ 18,287 | ||
Florida Dev. Fin. Corp. Healthcare Facility Rev. (Univ. Health Proj.) Series 2013 A: | ||||
5% 2/1/17 | 700 | 742 | ||
5% 2/1/18 | 1,790 | 1,932 | ||
5% 2/1/19 | 1,450 | 1,586 | ||
5% 2/1/20 | 2,025 | 2,234 | ||
Florida Hurricane Catastrophe Fund Fin. Corp. Rev. Series 2010 A, 5% 7/1/15 (Escrowed to Maturity) | 20,010 | 20,479 | ||
Florida Muni. Pwr. Agcy. Rev. (Stanton II Proj.) Series 2012 A, 5% 10/1/18 | 2,850 | 3,227 | ||
Greater Orlando Aviation Auth. Arpt. Facilities Rev. Series 2011 C: | ||||
5% 10/1/19 | 1,705 | 1,998 | ||
5% 10/1/20 | 1,000 | 1,190 | ||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt, Inc. Prog.) Series 2009 E, 5% 11/15/15 | 2,345 | 2,442 | ||
Indian River County School Board Ctfs. of Prtn. Series 2014: | ||||
5% 7/1/20 | 935 | 1,086 | ||
5% 7/1/22 | 2,000 | 2,357 | ||
5% 7/1/23 | 2,000 | 2,368 | ||
Indian River County Wtr. & Swr. Rev.: | ||||
5% 9/1/15 | 1,000 | 1,027 | ||
5% 9/1/17 | 1,000 | 1,085 | ||
JEA Wtr. & Swr. Sys. Rev. Series 2010 D, 5% 10/1/21 | 1,945 | 2,263 | ||
Kissimmee Util. Auth. Elec. Sys. Rev. Series 2003, 5.25% 10/1/15 | 3,525 | 3,653 | ||
Manatee County Rev. Series 2013: | ||||
5% 10/1/19 | 1,250 | 1,456 | ||
5% 10/1/20 | 2,000 | 2,362 | ||
5% 10/1/21 | 2,000 | 2,394 | ||
5% 10/1/22 | 1,000 | 1,204 | ||
Miami Beach Health Facilities Auth. Hosp. Rev. (Mount Sinai Med. Ctr. of Florida Proj.) Series 2012: | ||||
5% 11/15/21 | 1,000 | 1,173 | ||
5% 11/15/22 | 485 | 572 | ||
Miami-Dade County Expressway Auth.: | ||||
(Waste Mgmt., Inc. of Florida Proj.): | ||||
Series 2013, 5% 7/1/19 | 2,000 | 2,310 | ||
5% 7/1/20 | 1,000 | 1,166 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Miami-Dade County Expressway Auth.: - continued | ||||
(Waste Mgmt., Inc. of Florida Proj.): - continued | ||||
5% 7/1/21 | $ 2,000 | $ 2,358 | ||
5% 7/1/22 | 2,000 | 2,375 | ||
5% 7/1/23 | 2,000 | 2,348 | ||
Series 2014 A, 5% 7/1/24 | 625 | 753 | ||
Series 2014 B: | ||||
5% 7/1/22 | 1,500 | 1,782 | ||
5% 7/1/23 | 3,250 | 3,884 | ||
Miami-Dade County Pub. Facilities Rev. (Jackson Health Sys. Proj.) Series 2005 B, 5% 6/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,875 | 3,942 | ||
Miami-Dade County School Board Ctfs. of Prtn.: | ||||
Series 2014 D: | ||||
5% 11/1/20 | 4,875 | 5,666 | ||
5% 11/1/21 | 6,275 | 7,351 | ||
5% 11/1/22 | 2,915 | 3,436 | ||
5% 11/1/23 | 7,650 | 9,095 | ||
Series 2015 A: | ||||
5% 5/1/19 (c) | 1,000 | 1,148 | ||
5% 5/1/20 (c) | 2,095 | 2,429 | ||
5% 5/1/21 (c) | 4,000 | 4,691 | ||
5% 5/1/22 (c) | 3,720 | 4,379 | ||
5% 5/1/23 (c) | 6,500 | 7,681 | ||
Miami-Dade County Transit Sales Surtax Rev. Series 2012, 5% 7/1/19 | 1,250 | 1,445 | ||
Orange County Health Facilities Auth.: | ||||
(Orlando Health, Inc.) Series 2009: | ||||
5% 10/1/15 | 2,210 | 2,284 | ||
5% 10/1/16 | 1,325 | 1,422 | ||
Series 2009, 5.25% 10/1/19 | 1,245 | 1,428 | ||
Orange County Health Facilities Auth. Rev. (Orlando Reg'l. Healthcare Sys. Proj.) Series 2008 A, 5% 11/1/15 (FSA Insured) | 1,825 | 1,892 | ||
Orlando & Orange County Expressway Auth. Rev.: | ||||
Series 2010 B, 5% 7/1/15 (FSA Insured) | 1,430 | 1,462 | ||
Series 2012, 5% 7/1/19 | 1,000 | 1,152 | ||
Orlando Utils. Commission Util. Sys. Rev.: | ||||
Series 2009 C, 5% 10/1/17 | 1,500 | 1,667 | ||
Series 2010 C, 5% 10/1/17 | 1,895 | 2,106 | ||
Series 2011 B: | ||||
5% 10/1/18 | 2,250 | 2,569 | ||
5% 10/1/19 | 2,325 | 2,711 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Palm Beach County Health Facilities Auth. Hosp. Rev. Series 2014: | ||||
4% 12/1/19 | $ 1,000 | $ 1,099 | ||
5% 12/1/20 | 880 | 1,014 | ||
5% 12/1/21 | 1,100 | 1,264 | ||
Palm Beach County School Board Ctfs. of Prtn.: | ||||
Series 2014 B: | ||||
4% 8/1/19 | 4,000 | 4,433 | ||
4% 8/1/21 | 4,040 | 4,511 | ||
5% 8/1/19 | 3,000 | 3,471 | ||
5% 8/1/21 | 4,000 | 4,762 | ||
Series 2015 B: | ||||
5% 8/1/19 (c) | 2,735 | 3,164 | ||
5% 8/1/20 (c) | 1,750 | 2,054 | ||
Pasco County School District Sales Tax Rev. Series 2013: | ||||
5% 10/1/18 | 1,250 | 1,419 | ||
5% 10/1/19 | 1,100 | 1,268 | ||
5% 10/1/20 | 1,000 | 1,164 | ||
5% 10/1/21 | 1,000 | 1,178 | ||
5% 10/1/22 | 1,000 | 1,190 | ||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev.: | ||||
Series 2011: | ||||
5% 10/1/17 (e) | 4,465 | 4,913 | ||
5% 10/1/19 (e) | 2,025 | 2,323 | ||
5% 10/1/18 (e) | 2,745 | 3,093 | ||
Tampa Bay Wtr. Reg'l. Wtr. Supply Auth. Util. Sys. Rev.: | ||||
Series 2011 B, 5% 10/1/18 | 4,700 | 5,375 | ||
Series 2011, 5% 10/1/19 | 5,590 | 6,531 | ||
Tampa Health Sys. Rev. (Baycare Health Sys. Proj.) Series 2010: | ||||
5% 11/15/16 | 2,500 | 2,704 | ||
5% 11/15/17 | 1,515 | 1,689 | ||
Tampa Solid Waste Sys. Rev. Series 2010: | ||||
5% 10/1/15 (FSA Insured) (e) | 2,920 | 3,019 | ||
5% 10/1/16 (FSA Insured) (e) | 6,000 | 6,435 | ||
5% 10/1/17 (FSA Insured) (e) | 5,000 | 5,494 | ||
Tampa Tax Allocation (H. Lee Moffitt Cancer Ctr. Proj.) Series 2012 A, 5% 9/1/20 | 1,800 | 2,098 | ||
Titusville Wtr. & Swr. Rev. Series 2010, 5% 10/1/17 (Assured Guaranty Corp. Insured) | 1,135 | 1,247 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Volusia County School Board Ctfs. of Prtn. (Master Lease Prog.) Series 2014 B: | ||||
5% 8/1/18 | $ 300 | $ 341 | ||
5% 8/1/19 | 310 | 359 | ||
| 357,255 | |||
Georgia - 3.0% | ||||
Atlanta Arpt. Rev.: | ||||
5% 1/1/22 | 1,000 | 1,192 | ||
5% 1/1/23 | 1,000 | 1,198 | ||
5% 1/1/24 | 1,150 | 1,386 | ||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: | ||||
(Oglethorpe Pwr. Corp. Vogtle Proj.) Series 2013 A, 2.4%, tender 4/1/20 (d) | 12,500 | 12,641 | ||
2.2%, tender 4/2/19 (d) | 9,700 | 9,818 | ||
Fulton County Wtr. & Swr. Rev. Series 2011: | ||||
5% 1/1/19 | 4,000 | 4,573 | ||
5% 1/1/20 | 4,000 | 4,664 | ||
Georgia Gen. Oblig. Series 2014 D, 5% 7/1/16 | 23,900 | 25,531 | ||
Georgia Muni. Elec. Auth. Pwr. Rev.: | ||||
(Combined Cycle Proj.) Series A, 5% 11/1/18 | 2,000 | 2,282 | ||
(Proj. One): | ||||
Series 2008 A, 5.25% 1/1/17 (Berkshire Hathaway Assurance Corp. Insured) | 7,925 | 8,627 | ||
Series 2008 D: | ||||
5.75% 1/1/19 | 14,890 | 17,307 | ||
5.75% 1/1/20 | 3,555 | 4,135 | ||
Series B, 5% 1/1/17 | 2,750 | 2,982 | ||
Series GG: | ||||
5% 1/1/16 | 680 | 711 | ||
5% 1/1/20 | 675 | 787 | ||
5% 1/1/21 | 1,670 | 1,976 | ||
Georgia Muni. Gas Auth. Rev.: | ||||
(Gas Portfolio III Proj.) Series R, 5% 10/1/21 | 5,000 | 5,821 | ||
(Gas Portfolio lll Proj.) Series 2014 U: | ||||
5% 10/1/19 | 1,500 | 1,734 | ||
5% 10/1/22 | 1,000 | 1,191 | ||
5% 10/1/23 | 2,420 | 2,907 | ||
Private Colleges & Univs. Auth. Rev. (The Savannah College of Arts and Design Projs.) Series 2014, 5% 4/1/21 | 2,000 | 2,288 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Georgia - continued | ||||
Richmond County Hosp. Auth. (Univ. Health Svcs., Inc. Proj.) Series 2009: | ||||
5% 1/1/15 | $ 1,040 | $ 1,040 | ||
5% 1/1/16 | 2,415 | 2,525 | ||
5% 1/1/18 | 1,530 | 1,624 | ||
| 118,940 | |||
Hawaii - 0.5% | ||||
Hawaii Arpts. Sys. Rev.: | ||||
Series 2010 B, 5% 7/1/15 (e) | 3,900 | 3,992 | ||
Series 2011, 5% 7/1/19 (e) | 4,000 | 4,607 | ||
Hawaii Gen. Oblig. Series DR, 5% 6/1/16 (Escrowed to Maturity) | 2,895 | 3,078 | ||
State of Hawaii Dept. of Trans. Series 2013: | ||||
5% 8/1/19 (e) | 1,400 | 1,610 | ||
5% 8/1/20 (e) | 3,050 | 3,561 | ||
5% 8/1/21 (e) | 550 | 649 | ||
5% 8/1/22 (e) | 2,075 | 2,461 | ||
5% 8/1/23 (e) | 1,435 | 1,713 | ||
| 21,671 | |||
Illinois - 8.6% | ||||
Chicago Board of Ed.: | ||||
Series 1998 B1, 0% 12/1/21 (FGIC Insured) | 10,000 | 7,727 | ||
Series 2009 D: | ||||
5% 12/1/17 (Assured Guaranty Corp. Insured) | 4,115 | 4,516 | ||
5% 12/1/18 (Assured Guaranty Corp. Insured) | 2,335 | 2,601 | ||
Chicago Gen. Oblig.: | ||||
(City Colleges Proj.) Series 1999: | ||||
0% 1/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,200 | 7,017 | ||
0% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 2,844 | ||
0% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,805 | 8,990 | ||
0% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 14,755 | 12,965 | ||
Series 2009 A, 5% 1/1/22 | 2,500 | 2,703 | ||
Series 2012 B, 5.125% 1/1/15 (Escrowed to Maturity) | 2,060 | 2,060 | ||
Series 2012 C, 5% 1/1/23 | 885 | 953 | ||
Series A, 5% 1/1/17 (FSA Insured) | 3,465 | 3,600 | ||
Series B, 5% 1/1/17 (FSA Insured) | 5,115 | 5,235 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Chicago Gen. Oblig.: - continued | ||||
4.5% 1/1/20 | $ 1,150 | $ 1,205 | ||
5% 1/1/21 | 4,875 | 5,305 | ||
5% 1/1/21 | 1,500 | 1,614 | ||
5% 1/1/23 | 1,000 | 1,086 | ||
Chicago Midway Arpt. Rev.: | ||||
Bonds Series 2010 B, 5%, tender 1/1/15 (d) | 5,000 | 5,000 | ||
Series 2014 B: | ||||
5% 1/1/20 | 625 | 723 | ||
5% 1/1/21 | 400 | 467 | ||
5% 1/1/23 | 2,500 | 2,974 | ||
5% 1/1/22 | 5,000 | 5,881 | ||
5% 1/1/23 | 5,900 | 7,018 | ||
Chicago Motor Fuel Tax Rev. Series 2013: | ||||
5% 1/1/19 | 250 | 280 | ||
5% 1/1/20 | 300 | 339 | ||
5% 1/1/21 | 400 | 454 | ||
5% 1/1/22 | 300 | 344 | ||
5% 1/1/23 | 535 | 615 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 2010 D, 5.25% 1/1/17 (e) | 1,000 | 1,085 | ||
Series 2010 E: | ||||
5% 1/1/15 (e) | 4,000 | 4,001 | ||
5% 1/1/16 (e) | 1,500 | 1,567 | ||
Series 2011 B, 5% 1/1/18 | 6,500 | 7,239 | ||
Series 2012 A, 5% 1/1/21 | 1,400 | 1,648 | ||
Series 2012 B, 5% 1/1/21 (e) | 4,605 | 5,316 | ||
Series 2013 B, 5% 1/1/22 | 4,000 | 4,747 | ||
Series 2013 D, 5% 1/1/22 | 3,220 | 3,822 | ||
Chicago Park District Gen. Oblig. Series 2014 D: | ||||
4% 1/1/17 | 1,050 | 1,113 | ||
4% 1/1/18 | 2,255 | 2,423 | ||
Chicago Sales Tax Rev. Series 1998, 5.5% 1/1/16 (FGIC Insured) (FSA Insured) | 1,710 | 1,790 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
5% 6/1/19 (Assured Guaranty Corp. Insured) | 2,085 | 2,233 | ||
5% 6/1/19 (Pre-Refunded to 12/1/16 @ 100) | 415 | 450 | ||
Chicago Wastewtr. Transmission Rev. Series 2012: | ||||
5% 1/1/19 | 1,310 | 1,486 | ||
5% 1/1/23 | 1,200 | 1,395 | ||
Cook County Gen. Oblig.: | ||||
Series 2009 C, 5% 11/15/21 | 8,575 | 9,646 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Cook County Gen. Oblig.: - continued | ||||
Series 2010 A, 5.25% 11/15/22 | $ 4,960 | $ 5,752 | ||
Series 2011 A, 5.25% 11/15/22 | 1,000 | 1,172 | ||
Series 2012 C: | ||||
5% 11/15/19 | 3,200 | 3,645 | ||
5% 11/15/20 | 7,210 | 8,288 | ||
5% 11/15/21 | 4,970 | 5,745 | ||
5% 11/15/22 | 1,250 | 1,457 | ||
Series 2014 A: | ||||
5% 11/15/20 | 1,000 | 1,150 | ||
5% 11/15/21 | 500 | 578 | ||
5% 11/15/22 | 1,000 | 1,167 | ||
Cook County Thorton Township High School District #205 5.5% 12/1/16 (Assured Guaranty Corp. Insured) | 2,500 | 2,722 | ||
Illinois Fin. Auth. Gas Supply Rev. Bonds (The Peoples Gas Lt. and Coke Co. Proj.) Series 2010 B, 2.625%, tender 8/1/15 (d) | 9,500 | 9,614 | ||
Illinois Fin. Auth. Hosp. Rev. (KishHealth Sys. Proj.) Series 2008, 5.25% 10/1/15 | 2,220 | 2,274 | ||
Illinois Fin. Auth. Rev.: | ||||
(Advocate Health Care Proj.) Series 2010 D, 5% 4/1/15 | 550 | 556 | ||
(Northwest Cmnty. Hosp. Proj.) Series 2008 A, 5% 7/1/15 | 1,000 | 1,018 | ||
(Palos Cmnty. Hosp. Proj.) Series 2010 C: | ||||
5% 5/15/16 | 2,060 | 2,173 | ||
5% 5/15/17 | 3,520 | 3,847 | ||
(Provena Health Proj.) Series 2010 A, 5.75% 5/1/19 | 2,650 | 3,082 | ||
(Rush Univ. Med. Ctr. Proj.) Series 2006 B: | ||||
5% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,075 | 3,177 | ||
5% 11/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,700 | 1,822 | ||
Series 2012 A, 5% 5/15/23 | 1,300 | 1,503 | ||
Series 2012: | ||||
5% 9/1/18 | 1,160 | 1,290 | ||
5% 9/1/19 | 1,115 | 1,258 | ||
5% 9/1/20 | 1,470 | 1,672 | ||
5% 9/1/21 | 1,645 | 1,876 | ||
5% 9/1/22 | 3,530 | 4,041 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Gen. Oblig.: | ||||
Series 2002, 5.5% 8/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,495 | $ 1,537 | ||
Series 2004, 5% 11/1/16 | 11,000 | 11,779 | ||
Series 2005, 5% 4/1/17 (AMBAC Insured) | 8,050 | 8,127 | ||
Series 2007 A, 5.5% 6/1/15 | 1,000 | 1,020 | ||
Series 2007 B, 5% 1/1/17 | 9,835 | 10,548 | ||
Series 2010: | ||||
5% 1/1/15 (FSA Insured) | 20,000 | 20,003 | ||
5% 1/1/21 (FSA Insured) | 1,600 | 1,778 | ||
Series 2012: | ||||
5% 3/1/19 | 5,500 | 6,103 | ||
5% 8/1/19 | 2,660 | 2,967 | ||
5% 8/1/20 | 6,900 | 7,780 | ||
5% 8/1/21 | 1,400 | 1,576 | ||
5% 8/1/22 | 5,800 | 6,509 | ||
Series 2013, 5% 7/1/22 | 1,265 | 1,419 | ||
Series 2014, 5% 2/1/22 | 3,000 | 3,361 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Delnor-Cmnty. Hosp. Proj.) Series 2003 A: | ||||
5% 5/15/15 (FSA Insured) | 2,250 | 2,280 | ||
5% 5/15/16 (FSA Insured) | 2,325 | 2,435 | ||
Series 2003 A, 5% 5/15/17 (FSA Insured) | 2,150 | 2,309 | ||
Illinois Sales Tax Rev.: | ||||
Series 2009 B: | ||||
4.5% 6/15/16 | 5,000 | 5,286 | ||
4.5% 6/15/17 | 6,075 | 6,611 | ||
Series 2010, 5% 6/15/15 | 8,800 | 8,989 | ||
Illinois Toll Hwy. Auth. Toll Hwy. Rev. Series 2006 A2, 5% 1/1/31 (Pre-Refunded to 7/1/16 @ 100) | 2,100 | 2,242 | ||
Lake County Cmnty. Consolidated School District #73 Gen. Oblig.: | ||||
0% 12/1/15 (Escrowed to Maturity) | 580 | 578 | ||
0% 12/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,520 | 1,510 | ||
McHenry County Conservation District Gen. Oblig.: | ||||
Series 2014: | ||||
5% 2/1/19 | 2,285 | 2,612 | ||
5% 2/1/20 | 2,275 | 2,648 | ||
Series 2014. 5% 2/1/23 | 2,225 | 2,667 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Will County Cmnty. Unit School District #365-U: | ||||
0% 11/1/16 (Escrowed to Maturity) | $ 740 | $ 733 | ||
0% 11/1/16 (FSA Insured) | 2,235 | 2,193 | ||
| 342,956 | |||
Indiana - 2.0% | ||||
Indiana Fin. Auth. Econ. Dev. Rev. Bonds (Republic Svcs., Inc. Proj.): | ||||
Series 2012, 0.4%, tender 3/2/15 (d)(e) | 3,250 | 3,250 | ||
Series A, 0.4%, tender 3/2/15 (d)(e) | 1,950 | 1,950 | ||
Indiana Fin. Auth. Hosp. Rev.: | ||||
(Parkview Health Sys. Oblig. Group Proj.) Series 2009 A, 5% 5/1/15 | 6,420 | 6,517 | ||
Series 2013: | ||||
5% 8/15/22 | 700 | 819 | ||
5% 8/15/23 | 1,000 | 1,180 | ||
Indiana Fin. Auth. Rev.: | ||||
(Trinity Health Cr. Group Proj.) Series 2009 A, 5% 12/1/15 | 2,135 | 2,228 | ||
(Wabash Valley Correctional Facilities Proj.) Series 2009 A, 5% 7/1/15 | 8,025 | 8,214 | ||
Series 2010 A, 5% 2/1/17 | 2,800 | 3,042 | ||
Series 2012: | ||||
5% 3/1/20 | 650 | 734 | ||
5% 3/1/21 | 1,225 | 1,400 | ||
Indiana Health & Edl. Facilities Fing. Auth. Rev. Bonds (Ascension Health Sr. Cr. Group Proj.) Series 2006 B1, 4.1%, tender 11/3/16 (d) | 4,000 | 4,264 | ||
Indiana Health Facility Fing. Auth. Rev. Bonds (Ascension Health Cr. Group Proj.) Series 2001 A2, 1.6%, tender 2/1/17 (d) | 2,200 | 2,235 | ||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2011 A: | ||||
5% 1/1/19 | 1,470 | 1,681 | ||
5% 1/1/20 | 1,250 | 1,456 | ||
Indiana State Fin. Auth. Wastewtr. Util. Rev. (CWA Auth. Proj.): | ||||
Series 2012 A: | ||||
5% 10/1/20 | 825 | 975 | ||
5% 10/1/22 | 1,600 | 1,921 | ||
Series 2014 A: | ||||
5% 10/1/20 | 375 | 438 | ||
5% 10/1/21 | 380 | 449 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Indiana State Fin. Auth. Wastewtr. Util. Rev. (CWA Auth. Proj.): - continued | ||||
5% 10/1/22 | $ 675 | $ 811 | ||
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.) Series F, 5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 515 | 527 | ||
Indianapolis Thermal Energy Sys. Series 2010 B: | ||||
5% 10/1/16 | 5,000 | 5,364 | ||
5% 10/1/17 | 5,000 | 5,523 | ||
Lake Central Multi-District School Bldg. Corp. Series 2012 B: | ||||
4% 1/15/19 | 1,000 | 1,098 | ||
4% 1/15/20 | 1,345 | 1,495 | ||
4% 1/15/21 | 1,250 | 1,392 | ||
5% 7/15/19 | 1,680 | 1,938 | ||
5% 7/15/20 | 1,170 | 1,374 | ||
5% 7/15/21 | 1,000 | 1,187 | ||
Purdue Univ. Rev.: | ||||
(Student Facilities Sys. Proj.) Series 2009 B: | ||||
4% 7/1/17 | 500 | 540 | ||
5% 7/1/15 | 315 | 322 | ||
5% 7/1/16 | 500 | 534 | ||
Series Z-1: | ||||
5% 7/1/16 | 1,215 | 1,297 | ||
5% 7/1/17 | 1,000 | 1,106 | ||
5% 7/1/18 | 1,500 | 1,706 | ||
Rockport Poll. Cont. Rev. Bonds (Indiana Michigan Pwr. Co. Proj. Series 2009 B, 1.75%, tender 6/1/18 (d) | 8,500 | 8,534 | ||
Univ. of Southern Indiana Rev. Series J: | ||||
5% 10/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,035 | ||
5% 10/1/16 (Assured Guaranty Corp. Insured) | 1,165 | 1,253 | ||
| 79,789 | |||
Iowa - 0.0% | ||||
Iowa Fin. Auth. Health Facilities Rev. Series 2005 A, 5% 2/15/16 (Assured Guaranty Corp. Insured) | 1,700 | 1,787 | ||
Kansas - 0.6% | ||||
Kansas Dev. Fin. Agcy. (Adventist Health Sys./Sunbelt Obligated Group Proj.) Series 2009 D: | ||||
5% 11/15/15 | 625 | 651 | ||
5% 11/15/16 | 875 | 946 | ||
Overland Park Sales Tax Spl. Oblig. Rev. Series 2012, 4.375% 12/15/23 | 3,100 | 3,141 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Kansas - continued | ||||
Wichita Hosp. Facilities Rev.: | ||||
(Via Christi Health Sys., Inc. Proj.) Series 2009 III A: | ||||
5% 11/15/15 (Escrowed to Maturity) | $ 6,245 | $ 6,501 | ||
5% 11/15/16 (Escrowed to Maturity) | 5,410 | 5,863 | ||
Series 2011 IV A: | ||||
5% 11/15/18 (Escrowed to Maturity) | 2,250 | 2,584 | ||
5% 11/15/20 (Escrowed to Maturity) | 2,745 | 3,282 | ||
| 22,968 | |||
Kentucky - 0.9% | ||||
Ashland Med. Ctr. Rev. (Ashland Hosp. Corp. d/b/a King's Daughters Med. Ctr. Proj.) Series 2010 B, 4% 2/1/15 | 1,495 | 1,499 | ||
Kentucky Econ. Dev. Fin. Auth. Bonds Series 2009 B, 2.7%, tender 11/10/21 (d) | 9,000 | 9,002 | ||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev. (Baptist Healthcare Sys. Proj.) Series A, 5% 8/15/15 | 4,000 | 4,105 | ||
Kentucky State Property & Buildings Commission Rev. (#82 Proj.) 5.25% 10/1/17 (FSA Insured) | 2,450 | 2,743 | ||
Louisville/Jefferson County Metropolitan Govt. Poll. Cont. Rev. Bonds (Louisville Gas and Elec. Co. Proj.): | ||||
Series 2003 A, 1.65%, tender 4/3/17 (d) | 6,000 | 6,086 | ||
Series 2007 B: | ||||
1.15%, tender 6/1/17 (d) | 2,600 | 2,590 | ||
1.6%, tender 6/1/17 (d) | 8,000 | 8,053 | ||
| 34,078 | |||
Louisiana - 1.1% | ||||
Louisiana Gas & Fuel Tax Rev. Bonds Series 2013 B, 0.579%, tender 5/1/17 (d) | 25,000 | 25,156 | ||
Louisiana Pub. Facilities Auth. Rev.: | ||||
(Christus Health Proj.) Series 2009 A, 5% 7/1/16 | 2,000 | 2,129 | ||
(Entergy Gulf States Louisiana LLC Proj.) Series 2010 B, 2.875% 11/1/15 | 3,000 | 3,058 | ||
Louisiana Stadium and Exposition District Series 2013 A: | ||||
5% 7/1/21 | 1,500 | 1,771 | ||
5% 7/1/22 | 1,000 | 1,192 | ||
New Orleans Gen. Oblig. Series 2012, 5% 12/1/20 | 2,800 | 3,195 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Louisiana - continued | ||||
Reg'l. Transit Auth. Louisiana Sales Tax Rev. 4% 12/1/16 (FSA Insured) | $ 1,000 | $ 1,056 | ||
Tobacco Settlement Fing. Corp. Series 2013 A, 5% 5/15/23 | 4,500 | 5,295 | ||
| 42,852 | |||
Maryland - 1.6% | ||||
Maryland Gen. Oblig.: | ||||
Series 2008 2, 5% 7/15/22 (Pre-Refunded to 7/15/18 @ 100) | 5,500 | 6,268 | ||
Series 2012 B, 5% 8/1/16 | 6,400 | 6,859 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev. Bonds: | ||||
(Johns Hopkins Health Sys. Obligated Group Proj.) Series 2008 B, 5%, tender 5/15/15 (d) | 2,225 | 2,264 | ||
Series 2012 D, 0.9339%, tender 11/15/17 (d) | 14,000 | 14,137 | ||
Series 2013 A: | ||||
0.684%, tender 5/15/18 (d) | 4,800 | 4,832 | ||
0.705%, tender 5/15/18 (d) | 7,100 | 7,152 | ||
Montgomery County Gen. Oblig.: | ||||
(Dept. of Liquor Cont. Proj.) Series 2009 A, 5% 4/1/15 | 1,725 | 1,745 | ||
Series 2011 A, 5% 7/1/20 | 16,000 | 18,671 | ||
| 61,928 | |||
Massachusetts - 1.7% | ||||
Braintree Gen. Oblig. Series 2009, 5% 5/15/16 | 4,400 | 4,677 | ||
Massachusetts Bay Trans. Auth. Sales Tax Rev. Series 2006 B, 5.25% 7/1/18 | 2,300 | 2,630 | ||
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev. Series 2010 B, 5% 1/1/15 | 12,400 | 12,402 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
(Boston College Proj.): | ||||
Series Q1: | ||||
4% 7/1/15 | 1,500 | 1,528 | ||
4% 7/1/16 | 1,000 | 1,053 | ||
Series Q2: | ||||
4% 7/1/15 | 1,170 | 1,192 | ||
4% 7/1/16 | 1,000 | 1,053 | ||
5% 7/1/17 | 1,370 | 1,513 | ||
(Tufts Med. Ctr. Proj.) Series I, 5% 1/1/16 | 1,300 | 1,352 | ||
Bonds Series 2013 U-6E, 0.59%, tender 9/30/16 (d) | 5,900 | 5,912 | ||
4.5% 11/15/18 (b) | 5,500 | 5,514 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Massachusetts - continued | ||||
Massachusetts Edl. Fing. Auth. Rev. Series 2013, 5% 7/1/19 (e) | $ 4,725 | $ 5,256 | ||
Massachusetts Gen. Oblig.: | ||||
Series 2004 B, 5.25% 8/1/20 | 12,700 | 15,183 | ||
Series 2006 D, 5% 8/1/22 (Pre-Refunded to 8/1/16 @ 100) | 4,500 | 4,822 | ||
Medford Gen. Oblig. Series 2011 B, 4% 3/1/19 | 3,570 | 3,892 | ||
| 67,979 | |||
Michigan - 3.5% | ||||
Detroit School District Series 2012 A: | ||||
5% 5/1/19 | 2,000 | 2,255 | ||
5% 5/1/20 | 2,000 | 2,286 | ||
5% 5/1/21 | 1,810 | 2,095 | ||
Detroit Swr. Disp. Rev. Series 2006 D, 0.757% 7/1/32 (d) | 4,070 | 3,432 | ||
Grand Blanc Cmnty. Schools Series 2013: | ||||
5% 5/1/19 | 1,225 | 1,396 | ||
5% 5/1/20 | 2,635 | 3,059 | ||
5% 5/1/21 | 2,150 | 2,527 | ||
5% 5/1/22 | 1,850 | 2,178 | ||
Grand Valley Michigan State Univ. Rev. Series 2009, 5% 12/1/16 | 1,320 | 1,428 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. (Spectrum Health Sys. Proj.) Series 2011 A: | ||||
5% 11/15/18 | 1,250 | 1,415 | ||
5% 11/15/19 | 1,000 | 1,147 | ||
Michigan Fin. Auth. Rev.: | ||||
Series 2008 B2, 5% 6/1/15 | 1,090 | 1,107 | ||
Series 2012 A: | ||||
5% 6/1/16 | 2,290 | 2,412 | ||
5% 6/1/17 | 1,410 | 1,532 | ||
5% 6/1/18 | 2,430 | 2,701 | ||
Michigan Hosp. Fin. Auth. Rev. Bonds: | ||||
Series 1999 B3, 0.3%, tender 11/15/33 | 25,000 | 24,997 | ||
Series 2005 A4, 1.625%, tender 11/1/19 (d) | 9,215 | 9,213 | ||
Series 2010 F3, 1.4%, tender 6/29/18 (d) | 1,900 | 1,913 | ||
Series 2010 F4, 1.95%, tender 4/1/20 (d) | 6,545 | 6,577 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Clean Wtr. Pooled Proj.) Series 2010: | ||||
5% 10/1/15 | 1,750 | 1,812 | ||
5% 10/1/15 | 3,250 | 3,366 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Michigan Muni. Bond Auth. Rev.: - continued | ||||
(Local Govt. Ln. Prog.) Series 2009 C: | ||||
5% 5/1/15 | $ 1,845 | $ 1,872 | ||
5% 5/1/16 | 1,865 | 1,958 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev.: | ||||
(William Beaumont Hosp. Oblig. Group Proj.) Series 2009 W, 5% 8/1/15 | 2,070 | 2,126 | ||
Series 2014 D: | ||||
5% 9/1/21 | 1,500 | 1,754 | ||
5% 9/1/23 | 500 | 593 | ||
Spring Lake Pub. Schools: | ||||
Series 2014, 5% 5/1/19 | 2,300 | 2,636 | ||
5% 11/1/19 | 2,775 | 3,209 | ||
5% 5/1/20 | 3,630 | 4,231 | ||
5% 11/1/20 | 1,745 | 2,060 | ||
5% 5/1/21 | 4,110 | 4,846 | ||
Univ. of Michigan Rev. Bonds 0.24%, tender 4/1/15 (d) | 30,870 | 30,872 | ||
West Bloomfield School District 5% 5/1/15 (Assured Guaranty Corp. Insured) | 1,400 | 1,421 | ||
Western Michigan Univ. Rev. 5.25% 11/15/15 (Assured Guaranty Corp. Insured) | 3,275 | 3,414 | ||
| 139,840 | |||
Minnesota - 0.4% | ||||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 2014 A: | ||||
5% 1/1/22 | 1,000 | 1,198 | ||
5% 1/1/23 | 1,000 | 1,210 | ||
Series 2014 B: | ||||
5% 1/1/21 (e) | 2,290 | 2,672 | ||
5% 1/1/22 (e) | 2,000 | 2,354 | ||
5% 1/1/23 (e) | 1,000 | 1,182 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Essentia Health Obligated Group Proj.) Series 2008 C1: | ||||
5% 2/15/15 (Assured Guaranty Corp. Insured) | 1,335 | 1,341 | ||
5% 2/15/16 (Assured Guaranty Corp. Insured) | 565 | 590 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev. Series 2009 A, 5% 1/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,000 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2009 A, 5% 1/1/16 | 1,000 | 1,046 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Minnesota - continued | ||||
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev. Series 2014 A: | ||||
5% 1/1/22 | $ 1,000 | $ 1,200 | ||
5% 1/1/23 | 1,500 | 1,816 | ||
5% 1/1/24 | 1,000 | 1,224 | ||
| 16,833 | |||
Mississippi - 0.5% | ||||
Mississippi Bus. Fin. Corp. Rev. Bonds (Pwr. Co. Proj.) Series 2010, 1.625%, tender 1/12/18 (d) | 12,400 | 12,496 | ||
Mississippi Gen. Oblig. (Cap. Impts. Proj.) Series 2012 D, 0.57% 9/1/17 (d) | 3,295 | 3,312 | ||
Mississippi Hsg. Fin. Corp. Single Family Mtg. Rev. Series 1983, 0% 6/1/15 (Escrowed to Maturity) | 4,000 | 3,996 | ||
| 19,804 | |||
Missouri - 0.0% | ||||
Saint Louis Arpt. Rev. Series 2013, 5% 7/1/18 | 765 | 861 | ||
Nebraska - 0.2% | ||||
Nebraska Pub. Pwr. District Rev.: | ||||
Series 2012 C, 5% 1/1/22 (Pre-Refunded to 1/1/18 @ 100) | 1,100 | 1,233 | ||
Series C: | ||||
4% 1/1/15 | 2,360 | 2,360 | ||
4% 1/1/16 | 2,195 | 2,274 | ||
| 5,867 | |||
Nevada - 2.7% | ||||
Clark County Arpt. Rev.: | ||||
Series 2008 E, 5% 7/1/15 | 3,500 | 3,581 | ||
Series 2013 C1, 2.5% 7/1/15 (e) | 12,400 | 12,529 | ||
Clark County School District: | ||||
Series 2005 A, 5% 6/15/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 21,215 | 21,858 | ||
Series 2012 A, 5% 6/15/19 | 24,610 | 28,355 | ||
Series 2014 A, 5.5% 6/15/16 | 2,700 | 2,895 | ||
Nevada Gen. Oblig.: | ||||
Series 2010 C, 5% 6/1/19 | 12,140 | 14,022 | ||
Series 2012 B, 5% 8/1/20 | 2,230 | 2,635 | ||
Series 2013 D1: | ||||
5% 3/1/22 | 11,250 | 13,538 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nevada - continued | ||||
Nevada Gen. Oblig.: - continued | ||||
5% 3/1/23 | $ 4,500 | $ 5,458 | ||
5% 3/1/24 | 2,700 | 3,228 | ||
| 108,099 | |||
New Hampshire - 0.3% | ||||
New Hampshire Health & Ed. Facilities Auth. Rev. Series 2012: | ||||
4% 7/1/20 | 2,705 | 2,856 | ||
4% 7/1/21 | 1,520 | 1,606 | ||
New Hampshire Tpk. Sys. Rev. Series 2012 B: | ||||
5% 2/1/17 | 3,000 | 3,258 | ||
5% 2/1/18 | 2,500 | 2,786 | ||
| 10,506 | |||
New Jersey - 6.2% | ||||
Camden County Impt. Auth. Health Care Redev. Rev. Series 2014 A: | ||||
5% 2/15/20 | 3,000 | 3,446 | ||
5% 2/15/21 | 2,500 | 2,900 | ||
5% 2/15/22 | 2,500 | 2,917 | ||
5% 2/15/23 | 2,750 | 3,221 | ||
New Jersey Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 6/15/15 | 750 | 765 | ||
Series 2009 A: | ||||
5% 6/15/15 | 11,285 | 11,513 | ||
5% 6/15/16 | 6,500 | 6,894 | ||
New Jersey Econ. Dev. Auth. Rev.: | ||||
Series 2005 K, 5.5% 12/15/19 | 8,030 | 9,301 | ||
Series 2005 O, 5% 3/1/20 (Pre-Refunded to 3/1/15 @ 100) | 6,350 | 6,397 | ||
Series 2008 W, 5% 3/1/15 (Escrowed to Maturity) | 10,400 | 10,477 | ||
Series 2009 BB, 5% 9/1/15 (Escrowed to Maturity) | 3,390 | 3,497 | ||
Series 2011 EE, 5% 9/1/20 | 5,000 | 5,689 | ||
Series 2012 II, 5% 3/1/21 | 6,800 | 7,722 | ||
Series 2012, 5% 6/15/18 | 10,600 | 11,863 | ||
Series 2013 NN, 5% 3/1/19 | 8,165 | 9,143 | ||
Series 2014 PP, 5% 6/15/19 | 17,000 | 19,126 | ||
New Jersey Edl. Facility Series 2014: | ||||
5% 6/15/20 | 11,000 | 12,355 | ||
5% 6/15/21 | 11,000 | 12,431 | ||
New Jersey Gen. Oblig. Series O, 5.25% 8/1/22 | 3,930 | 4,731 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New Jersey - continued | ||||
New Jersey Higher Ed. Student Assistance Auth. Student Ln. Rev.: | ||||
Series 2010 1A, 5% 12/1/15 | $ 4,500 | $ 4,683 | ||
Series 2013: | ||||
5% 12/1/18 (e) | 6,000 | 6,684 | ||
5% 12/1/19 (e) | 3,850 | 4,301 | ||
New Jersey Tpk. Auth. Tpk. Rev.: | ||||
Bonds Series 2013 D, 0.57%, tender 1/1/16 (d) | 5,000 | 5,008 | ||
Series 1991 C, 6.5% 1/1/16 (Escrowed to Maturity) | 1,500 | 1,518 | ||
Series 2013 A, 5% 1/1/24 | 4,345 | 5,144 | ||
Series 2013 C, 0.52% 1/1/17 (d) | 16,000 | 16,072 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series 2003 A, 5.5% 12/15/16 (FSA Insured) | 5,000 | 5,448 | ||
Series 2003 B, 5.25% 12/15/19 | 3,870 | 4,445 | ||
Series 2003 B. 5.25% 12/15/19 | 5,500 | 6,317 | ||
Series 2012 AA, 5% 6/15/19 | 1,500 | 1,692 | ||
Series 2013 A: | ||||
5% 12/15/19 | 6,455 | 7,339 | ||
5% 6/15/20 | 18,000 | 20,462 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series 2014 A: | ||||
5% 9/15/15 | 5,250 | 5,417 | ||
5% 9/15/21 | 4,900 | 5,670 | ||
| 244,588 | |||
New Mexico - 1.2% | ||||
Farmington Poll. Cont. Rev. Bonds (Southern California Edison Co. Four Corners Proj.) Series 2005 B, 2.875%, tender 4/1/15 (d) | 22,325 | 22,448 | ||
New Mexico Edl. Assistance Foundation: | ||||
Series 2009 B, 4% 9/1/16 | 7,000 | 7,391 | ||
Series 2010 A1: | ||||
4% 12/1/15 | 3,700 | 3,823 | ||
4% 12/1/16 | 6,750 | 7,185 | ||
Rio Rancho Wtr. & Wastewtr. Sys. Rev. Series 2009, 5% 5/15/17 (FSA Insured) | 4,480 | 4,868 | ||
| 45,715 | |||
New York - 9.9% | ||||
Dutchess County Local Dev. Corp. Rev. (Health Quest Systems, Inc. Proj.) Series 2010 A: | ||||
5% 7/1/18 (Assured Guaranty Corp. Insured) (FSA Insured) | 1,100 | 1,218 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
Dutchess County Local Dev. Corp. Rev. (Health Quest Systems, Inc. Proj.) Series 2010 A: - continued | ||||
5% 7/1/19 (Assured Guaranty Corp. Insured) (FSA Insured) | $ 640 | $ 717 | ||
Metropolitan Trans. Auth. Svc. Contract Rev. Series 2002 A, 5.5% 7/1/17 | 5,000 | 5,572 | ||
New York City Gen. Oblig.: | ||||
Series 2005 F1, 5% 9/1/15 | 3,560 | 3,673 | ||
Series 2014 J, 3% 8/1/16 | 5,600 | 5,817 | ||
Series 2014 K, 3% 8/1/16 | 3,900 | 4,051 | ||
Series J8, 0.42% 8/1/21 (d) | 7,500 | 7,501 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 B, 5% 2/1/20 | 3,000 | 3,509 | ||
Series 2010 B: | ||||
5% 11/1/17 | 11,740 | 13,087 | ||
5% 11/1/17 (Escrowed to Maturity) | 18,260 | 20,377 | ||
5% 11/1/20 | 5,950 | 6,930 | ||
Series 2010 D: | ||||
5% 11/1/15 (Escrowed to Maturity) | 890 | 925 | ||
5% 11/1/17 | 8,015 | 8,935 | ||
5% 11/1/17 (Escrowed to Maturity) | 2,100 | 2,350 | ||
Series 2012 A: | ||||
5% 11/1/17 | 6,180 | 6,889 | ||
5% 11/1/17 (Escrowed to Maturity) | 820 | 918 | ||
5% 11/1/20 | 4,500 | 5,330 | ||
New York Dorm. Auth. Mental Health Svcs. Facilities Impt. Rev.: | ||||
(State Univ. Proj.) Series 2012 A, 5% 5/15/20 | 4,000 | 4,691 | ||
Series 2012 A, 4% 5/15/20 | 8,000 | 8,973 | ||
New York Dorm. Auth. Personal Income Tax Rev.: | ||||
(Ed. Proj.) Series 2009 A, 5% 3/15/15 | 4,000 | 4,039 | ||
Series 2009 D, 5% 6/15/15 | 16,075 | 16,420 | ||
Series 2012 A, 5% 12/15/20 | 8,500 | 10,095 | ||
Series A: | ||||
5% 2/15/15 | 8,775 | 8,825 | ||
5% 2/15/15 (Escrowed to Maturity) | 5 | 5 | ||
New York Dorm. Auth. Revs.: | ||||
(Mental Health Svcs. Facilities Proj.) Series 2009 A1, 5% 2/15/15 | 9,000 | 9,052 | ||
Series 2008 B, 5% 7/1/15 | 30,000 | 30,702 | ||
Series 2008 D, 5.25% 8/15/17 (FSA Insured) | 7,000 | 7,775 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Dorm. Auth. Revs.: - continued | ||||
Series 2009 A: | ||||
5% 7/1/15 | $ 12,850 | $ 13,145 | ||
5% 7/1/16 | 8,390 | 8,959 | ||
New York Local Govt. Assistance Corp. Series 2003 A, 5% 4/1/18 | 12,400 | 13,980 | ||
New York Metropolitan Trans. Auth. Dedicated Tax Fund Rev. Series B, 5% 11/15/15 | 2,325 | 2,421 | ||
New York Metropolitan Trans. Auth. Rev.: | ||||
Bonds Series 2012 G2, 0.634%, tender 11/1/15 (d) | 13,300 | 13,315 | ||
Series 2003 B, 5.25% 11/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,200 | 6,089 | ||
Series 2008 B2: | ||||
5% 11/15/19 | 6,185 | 7,170 | ||
5% 11/15/20 | 5,500 | 6,478 | ||
5% 11/15/21 | 4,000 | 4,765 | ||
Series 2012 B, 5% 11/15/22 | 2,000 | 2,392 | ||
Series 2012 D, 5% 11/15/18 | 2,515 | 2,872 | ||
Series 2012 E: | ||||
4% 11/15/19 | 4,000 | 4,451 | ||
5% 11/15/21 | 2,435 | 2,901 | ||
Series 2012 F, 5% 11/15/19 | 5,000 | 5,797 | ||
New York Thruway Auth. Gen. Rev. Series 2013 A, 5% 5/1/19 | 20,400 | 23,347 | ||
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund: | ||||
Series 2010 A, 5% 4/1/17 | 1,000 | 1,094 | ||
Series 2011 A1: | ||||
5% 4/1/17 | 1,500 | 1,641 | ||
5% 4/1/18 | 3,500 | 3,936 | ||
New York Urban Dev. Corp. Rev.: | ||||
Series 2009 C, 5% 12/15/16 | 17,000 | 18,476 | ||
Series 2011 A, 5% 3/15/21 | 18,425 | 21,996 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2011, 5% 6/1/16 | 20,000 | 21,294 | ||
Series 2013 B, 5% 6/1/21 | 3,400 | 3,601 | ||
Triborough Bridge & Tunnel Auth. Revs. Series Y, 5.5% 1/1/17 (Escrowed to Maturity) | 3,830 | 4,044 | ||
| 392,540 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
North Carolina - 2.1% | ||||
Dare County Ctfs. of Prtn. Series 2012 B: | ||||
4% 6/1/17 | $ 1,000 | $ 1,073 | ||
4% 6/1/18 | 1,280 | 1,399 | ||
4% 6/1/20 | 1,000 | 1,118 | ||
5% 6/1/19 | 1,305 | 1,500 | ||
Mecklenburg County Pub. Facilities Corp. Series 2009: | ||||
5% 3/1/16 | 5,870 | 6,190 | ||
5% 3/1/18 | 1,500 | 1,683 | ||
Nash Health Care Sys. Health Care Facilities Rev. Series 2003, 5% 11/1/15 (FSA Insured) | 1,600 | 1,642 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev. Series 2010 A: | ||||
5% 1/1/15 | 4,000 | 4,001 | ||
5% 1/1/16 | 6,035 | 6,304 | ||
North Carolina Gen. Oblig. Series 2014 A, 5% 6/1/16 | 8,095 | 8,619 | ||
North Carolina Grant Anticipation Rev. Series 2009, 5% 3/1/15 | 1,250 | 1,260 | ||
North Carolina Med. Care Commission Hosp. Rev. (North Carolina Baptist Hosp. Proj.) Series 2010: | ||||
5% 6/1/15 | 1,500 | 1,528 | ||
5% 6/1/16 | 1,000 | 1,060 | ||
5% 6/1/17 | 3,220 | 3,521 | ||
5% 6/1/18 | 3,820 | 4,274 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | ||||
Series 1998 A, 5.5% 1/1/15 | 3,675 | 3,676 | ||
Series 2008 A, 5.25% 1/1/20 | 2,000 | 2,247 | ||
Series 2012 A, 5% 1/1/18 | 18,705 | 20,860 | ||
Univ. of North Carolina at Chapel Hill Rev. Bonds Series 2012 A, 0.5539%, tender 12/1/15 (d) | 11,500 | 11,507 | ||
| 83,462 | |||
North Dakota - 0.0% | ||||
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.) Series 2005, 5% 12/1/15 (Assured Guaranty Corp. Insured) | 1,825 | 1,887 | ||
Ohio - 3.6% | ||||
American Muni. Pwr., Inc. Rev. Bonds Series B, 5%, tender 8/15/20 (c)(d) | 35,000 | 40,129 | ||
Buckeye Tobacco Settlement Fing. Auth. Series 2007 A1: | ||||
5% 6/1/16 | 3,035 | 3,210 | ||
5% 6/1/17 | 3,500 | 3,817 | ||
Cincinnati City School District 5.25% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,555 | 4,070 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Ohio - continued | ||||
Columbus City School District (School Facilities Construction and Impt. Proj.) Series 2009 B, 4% 12/1/16 | $ 1,000 | $ 1,066 | ||
Fairfield County Hosp. Facilities Rev. (Fairfield Med. Ctr. Proj.) Series 2013: | ||||
5% 6/15/22 | 2,145 | 2,438 | ||
5% 6/15/23 | 1,855 | 2,114 | ||
Hamilton County Convention Facilities Auth. Rev. Series 2014: | ||||
5% 12/1/19 | 1,910 | 2,187 | ||
5% 12/1/20 | 2,205 | 2,554 | ||
5% 12/1/21 | 2,045 | 2,380 | ||
Hamilton County Student Hsg. Rev. (Stratford Heights Proj.) Series 2010: | ||||
5% 6/1/15 (FSA Insured) | 760 | 774 | ||
5% 6/1/16 (FSA Insured) | 1,105 | 1,172 | ||
5% 6/1/17 (FSA Insured) | 1,160 | 1,233 | ||
Ohio Air Quality Dev. Auth. Rev.: | ||||
Bonds (First Energy Nuclear Generation Proj.) Series 2006 A, 3.75%, tender 12/3/18 (d) | 13,300 | 14,052 | ||
Series 2009 C, 5.625% 6/1/18 | 1,395 | 1,553 | ||
Ohio Bldg. Auth.: | ||||
(Administrative Bldg. Fund Proj.): | ||||
Series 2009 B, 5% 10/1/15 | 6,505 | 6,736 | ||
Series 2010 C: | ||||
4% 10/1/15 | 3,200 | 3,290 | ||
5% 10/1/16 | 1,250 | 1,347 | ||
(Adult Correctional Bldg. Fund Proj.): | ||||
Series 2009 B, 5% 10/1/15 | 4,535 | 4,696 | ||
Series 2010 A, 5% 10/1/15 | 1,185 | 1,227 | ||
Ohio Gen. Oblig.: | ||||
(Common Schools Proj.) Series 2010 A, 5% 9/15/17 | 2,600 | 2,889 | ||
(Higher Ed. Proj.) Series 2010 A, 5% 8/1/17 | 3,290 | 3,642 | ||
Series 2011 A, 5% 8/1/17 | 3,070 | 3,398 | ||
Series 2012 C, 5% 9/15/21 | 4,350 | 5,236 | ||
Series 2013 B, 4% 6/15/16 | 2,200 | 2,313 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Cleveland Clinic Foundation Proj.) Series 2008 A, 5% 1/1/15 | 2,000 | 2,000 | ||
(Univ. Hosp. Health Sys. Proj.) Series 2010 A: | ||||
5% 1/15/15 | 500 | 501 | ||
5% 1/15/17 | 1,000 | 1,082 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Ohio - continued | ||||
Ohio Higher Edl. Facility Commission Rev.: - continued | ||||
Series 2013 A2, 0.24% 1/1/15 (d) | $ 1,430 | $ 1,430 | ||
Ohio State Univ. Gen. Receipts Series 2010 A: | ||||
5% 12/1/16 | 4,720 | 5,120 | ||
5% 12/1/16 (Escrowed to Maturity) | 280 | 304 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds: | ||||
(FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (d) | 10,225 | 10,867 | ||
(FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 B, 3.375%, tender 7/1/15 (d) | 5,000 | 5,063 | ||
| 143,890 | |||
Oklahoma - 0.3% | ||||
Oklahoma Dev. Fin. Auth. Rev.: | ||||
(Saint John Health Sys. Proj.) Series 2012, 5% 2/15/23 | 2,600 | 3,036 | ||
Series 2004 A, 2.375% 12/1/21 | 1,350 | 1,374 | ||
Series 2012, 5% 2/15/21 | 1,600 | 1,868 | ||
Tulsa County Indl. Auth. Edl. Facilities Lease Rev. (Jenks Pub. Schools Proj.) Series 2009, 5.5% 9/1/18 | 5,215 | 5,988 | ||
| 12,266 | |||
Oregon - 0.1% | ||||
Oregon Facilities Auth. Rev. (Legacy Health Sys. Proj.) Series 2009 A: | ||||
5% 3/15/15 | 2,500 | 2,523 | ||
5% 3/15/16 | 1,750 | 1,843 | ||
| 4,366 | |||
Pennsylvania - 5.1% | ||||
Allegheny County Arpt. Auth. Rev. Series A: | ||||
5% 1/1/15 (FSA Insured) (e) | 1,000 | 1,000 | ||
5% 1/1/16 (FSA Insured) (e) | 1,000 | 1,045 | ||
Allegheny County Hosp. Dev. Auth. Rev. (Univ. of Pittsburgh Med. Ctr. Proj.) Series 2009 A, 4% 8/15/15 | 1,385 | 1,417 | ||
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.): | ||||
Series 2005 A, 3.375%, tender 7/1/15 (d) | 2,000 | 2,025 | ||
Series 2006 A, 3.5%, tender 6/1/20 (d) | 5,250 | 5,406 | ||
Series 2006 B, 3.5%, tender 6/1/20 (d) | 6,000 | 6,179 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Econ. Dev. Fin. Auth. Unemployment Compensation Rev. Series 2012 B: | ||||
5% 1/1/22 | $ 5,000 | $ 5,512 | ||
5% 7/1/22 | 5,200 | 5,543 | ||
5% 1/1/23 | 3,000 | 3,137 | ||
5% 7/1/23 | 1,650 | 1,689 | ||
Franklin County Indl. Dev. Auth. (The Chambersburg Hosp. Proj.) Series 2010: | ||||
5% 7/1/16 | 1,000 | 1,064 | ||
5% 7/1/17 | 1,255 | 1,376 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series 2009 A, 5% 6/1/17 | 2,200 | 2,401 | ||
Montgomery County Higher Ed. & Health Auth. Rev. Series 2014 A: | ||||
4% 10/1/18 | 1,000 | 1,082 | ||
4% 10/1/19 | 660 | 717 | ||
5% 10/1/20 | 1,260 | 1,431 | ||
Pennsylvania Econ. Dev. Auth. Governmental Lease (Forum Place Proj.) Series 2012: | ||||
5% 3/1/18 | 2,455 | 2,707 | ||
5% 3/1/19 | 2,310 | 2,589 | ||
5% 3/1/20 | 2,140 | 2,434 | ||
Pennsylvania Gen. Oblig.: | ||||
Series 2006 1, 5% 10/1/19 (Pre-Refunded to 10/1/16 @ 100) | 7,000 | 7,554 | ||
Series 2010 A3, 5% 7/15/16 | 3,900 | 4,170 | ||
Series 2011, 5% 7/1/21 | 1,900 | 2,264 | ||
Series 2013 1, 5% 4/1/16 | 2,655 | 2,807 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev. Series 2014: | ||||
5% 12/1/19 | 340 | 396 | ||
5% 12/1/21 | 275 | 327 | ||
5% 12/1/22 | 855 | 1,030 | ||
Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev. (City of Philadelphia Fdg. Prog.) Series 2009, 5% 6/15/15 | 10,600 | 10,828 | ||
Pennsylvania Tpk. Commission Tpk. Rev.: | ||||
Series 2009 B, 5% 12/1/17 | 12,500 | 13,942 | ||
Series 2013 A, 0.64% 12/1/17 (d) | 6,400 | 6,437 | ||
Philadelphia Gas Works Rev.: | ||||
(1998 Gen. Ordinance Proj.) Eighth Series A, 5% 8/1/15 | 2,100 | 2,146 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Philadelphia Gas Works Rev.: - continued | ||||
Eighth Series A, 5% 8/1/16 | $ 1,000 | $ 1,067 | ||
Seventeenth Series: | ||||
5.375% 7/1/15 (FSA Insured) | 2,000 | 2,044 | ||
5.375% 7/1/16 (FSA Insured) | 2,300 | 2,437 | ||
Philadelphia Gen. Oblig.: | ||||
Series 2008 A: | ||||
5% 12/15/15 (FSA Insured) | 5,000 | 5,217 | ||
5% 12/15/16 (FSA Insured) | 7,275 | 7,871 | ||
Series 2011: | ||||
5.25% 8/1/17 | 6,165 | 6,800 | ||
5.25% 8/1/18 | 5,515 | 6,237 | ||
Philadelphia Muni. Auth. Rev. Series 2013 A: | ||||
5% 11/15/17 | 6,635 | 7,339 | ||
5% 11/15/18 | 3,430 | 3,877 | ||
Philadelphia School District Series 2010 C, 5% 9/1/16 | 13,610 | 14,565 | ||
Philadelphia Wtr. & Wastewtr. Rev. Series 2010 A: | ||||
5% 6/15/15 | 15,000 | 15,314 | ||
5% 6/15/16 | 6,000 | 6,390 | ||
Pittsburgh & Allegheny County Sports & Exhibition Auth. Series 2010: | ||||
5% 2/1/15 (FSA Insured) | 4,580 | 4,597 | ||
5% 2/1/16 (FSA Insured) | 5,620 | 5,891 | ||
Pittsburgh School District Series 2010 A: | ||||
4% 9/1/15 | 1,405 | 1,439 | ||
4% 9/1/15 (Escrowed to Maturity) | 45 | 46 | ||
5% 9/1/16 (FSA Insured) | 1,685 | 1,807 | ||
Saint Mary Hosp. Auth. Health Sys. Rev. (Catholic Health East Proj.) Series 2010 B, 5% 11/15/15 | 2,420 | 2,520 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2011: | ||||
5% 6/1/18 | 1,000 | 1,119 | ||
5% 6/1/19 | 200 | 228 | ||
State Pub. School Bldg. Auth. Lease Rev. (Philadelphia School District Proj.) Series 2012: | ||||
5% 4/1/19 | 1,305 | 1,453 | ||
5% 4/1/20 | 1,250 | 1,410 | ||
5% 4/1/21 | 1,000 | 1,140 | ||
Unionville-Chadds Ford School District Gen. Oblig. Series 2009, 5% 6/1/20 | 1,190 | 1,374 | ||
| 202,837 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Rhode Island - 0.3% | ||||
Rhode Island Econ. Dev. Corp. Rev. (Dept. of Trans. Proj.) Series 2009 A: | ||||
5% 6/15/15 (Assured Guaranty Corp. Insured) | $ 2,010 | $ 2,049 | ||
5% 6/15/16 (Assured Guaranty Corp. Insured) | 6,625 | 7,017 | ||
Rhode Island Health & Edl. Bldg. Corp. Higher Ed. Facilities Rev. Series 2013 A: | ||||
5% 5/15/18 | 1,000 | 1,099 | ||
5% 5/15/19 | 1,500 | 1,670 | ||
| 11,835 | |||
South Carolina - 0.6% | ||||
Lexington County Health Svcs. District, Inc. Hosp. Rev. Series 2011, 5% 11/1/19 | 1,190 | 1,358 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2012 B: | ||||
5% 12/1/17 | 2,000 | 2,232 | ||
5% 12/1/20 | 1,000 | 1,177 | ||
Series 2012 C, 5% 12/1/17 | 10,535 | 11,757 | ||
Series 2014 C: | ||||
5% 12/1/22 | 1,100 | 1,318 | ||
5% 12/1/23 | 5,000 | 6,041 | ||
| 23,883 | |||
South Dakota - 0.2% | ||||
South Dakota Health & Edl. Facilities Auth. Rev.: | ||||
(Reg'l. Health Proj.) Series 2010: | ||||
5% 9/1/15 | 680 | 700 | ||
5% 9/1/16 | 500 | 534 | ||
5% 9/1/17 | 490 | 539 | ||
Series 2011: | ||||
5% 9/1/17 | 1,100 | 1,210 | ||
5% 9/1/18 | 1,200 | 1,351 | ||
5% 9/1/19 | 1,255 | 1,436 | ||
Series 2014 B: | ||||
4% 11/1/19 | 400 | 444 | ||
4% 11/1/20 | 625 | 696 | ||
4% 11/1/21 | 500 | 558 | ||
5% 11/1/22 | 375 | 445 | ||
| 7,913 | |||
Tennessee - 0.4% | ||||
Knox County Health Edl. & Hsg. Facilities Series 2012 A: | ||||
5% 1/1/19 | 1,925 | 2,178 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Tennessee - continued | ||||
Knox County Health Edl. & Hsg. Facilities Series 2012 A: - continued | ||||
5% 1/1/20 | $ 2,500 | $ 2,875 | ||
5% 1/1/21 | 2,500 | 2,913 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series 2010 B, 5% 7/1/16 (e) | 1,730 | 1,839 | ||
Metropolitan Nashville Arpt. Auth. Rev. Series 2010 A: | ||||
5% 7/1/16 | 1,815 | 1,936 | ||
5% 7/1/17 | 1,100 | 1,213 | ||
Shelby County Health Edl. & Hsg. Facilities Board Rev. Series 2004 A, 5% 9/1/15 | 3,125 | 3,219 | ||
| 16,173 | |||
Texas - 7.3% | ||||
Austin Cmnty. College District Pub. Facilities Lease Rev. (Round Rock Campus Proj.) Series 2008, 5.25% 8/1/15 | 2,585 | 2,660 | ||
Austin Elec. Util. Sys. Rev.: | ||||
Series A, 5% 11/15/15 | 1,000 | 1,040 | ||
0% 5/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,500 | 4,313 | ||
Austin Independent School District Series 2004, 5% 8/1/17 | 1,450 | 1,607 | ||
Austin Wtr. & Wastewtr. Sys. Rev. Series 2009 A, 5% 11/15/15 | 2,250 | 2,343 | ||
Brownsville Util. Sys. Rev. Series 2008 A, 5% 9/1/15 (FSA Insured) | 2,665 | 2,746 | ||
Carroll Independent School District Series 2009 C, 5.25% 2/15/19 | 1,000 | 1,151 | ||
Dallas Fort Worth Int'l. Arpt. Rev.: | ||||
Series 2009 A, 5% 11/1/15 | 5,000 | 5,194 | ||
Series 2013 F: | ||||
5% 11/1/19 | 2,000 | 2,323 | ||
5% 11/1/20 | 1,500 | 1,770 | ||
5% 11/1/21 | 3,000 | 3,582 | ||
5% 11/1/22 | 5,000 | 6,001 | ||
Dallas Independent School District Series 2014 A, 4% 8/15/16 | 9,280 | 9,806 | ||
Dallas Wtrwks. & Swr. Sys. Rev. Series 2011, 5% 10/1/18 | 1,600 | 1,826 | ||
Fort Worth Independent School District Series 2009, 5% 2/15/16 | 3,690 | 3,883 | ||
Grapevine Gen. Oblig. Series 2009, 5% 2/15/16 | 1,375 | 1,447 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Harris County Cultural Ed. Facilities Fin. Corp. Rev. (Memorial Hermann Health Sys. Proj.) Series 2013 B: | ||||
0.34% 6/1/15 (d) | $ 1,465 | $ 1,465 | ||
0.44% 6/1/16 (d) | 1,590 | 1,592 | ||
Harris County Cultural Ed. Facilities Fin. Corp. Thermal Util. Rev. (TECO Proj.) Series 2009 A, 5% 11/15/16 | 500 | 535 | ||
Harris County Gen. Oblig.: | ||||
Bonds Series 2012 B, 0.63%, tender 8/15/15 (d) | 10,470 | 10,473 | ||
Series 2012 A, 0.47% 8/15/15 (d) | 1,300 | 1,302 | ||
Houston Arpt. Sys. Rev.: | ||||
Series 2011 A, 5% 7/1/17 (e) | 7,380 | 8,090 | ||
Series 2012 A, 5% 7/1/23 (e) | 2,000 | 2,353 | ||
Series A: | ||||
5% 7/1/15 | 2,070 | 2,119 | ||
5% 7/1/16 | 1,080 | 1,154 | ||
Houston Independent School District Series 2005 A, 0% 2/15/16 | 4,500 | 4,482 | ||
Houston Util. Sys. Rev.: | ||||
Bonds Series 2012 C, 0.64%, tender 8/1/16 (d) | 9,200 | 9,230 | ||
5% 5/15/22 | 5,000 | 6,041 | ||
5% 5/15/23 | 7,000 | 8,549 | ||
Klein Independent School District Series 2009 A, 5% 8/1/16 | 2,195 | 2,350 | ||
Lewisville Independent School District Series 2009, 5% 8/15/17 | 1,170 | 1,296 | ||
Lone Star College Sys. Gen. Oblig. Series 2010 A, 5% 8/15/22 | 2,500 | 2,508 | ||
Lower Colorado River Auth. Rev.: | ||||
Series 2010, 5% 5/15/17 | 2,805 | 3,078 | ||
5% 5/15/15 | 2,120 | 2,157 | ||
5% 5/15/15 (Escrowed to Maturity) | 5 | 5 | ||
5% 5/15/16 | 2,355 | 2,500 | ||
5% 5/15/16 (Escrowed to Maturity) | 5 | 5 | ||
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Svcs. Corp. Proj.) Series 2010, 5% 5/15/18 | 3,140 | 3,518 | ||
Lubbock Health Facilities Dev. Corp. Rev. (St. Joseph Health Sys. Proj.) Series 2008 B: | ||||
5% 7/1/17 | 2,800 | 3,076 | ||
5% 7/1/18 | 3,030 | 3,413 | ||
Mansfield Independent School District Series 2009, 4% 2/15/17 | 1,840 | 1,956 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
North Harris County Reg'l. Wtr. Auth. Series 2013, 4% 12/15/22 | $ 1,580 | $ 1,755 | ||
North Texas Tollway Auth. Rev. Bonds Series 2012 C, 1.95%, tender 1/1/19 (d) | 8,500 | 8,621 | ||
Northside Independent School District Bonds: | ||||
Series 2011 A, 2%, tender 6/1/19 (d) | 6,500 | 6,585 | ||
1%, tender 6/1/16 (d) | 20,000 | 20,134 | ||
1.2%, tender 8/1/17 (d) | 29,415 | 29,519 | ||
Sam Rayburn Muni. Pwr. Agcy. Series 2012, 5% 10/1/20 | 1,000 | 1,168 | ||
San Antonio Elec. & Gas Sys. Rev. Series 2006 A, 5% 2/1/25 (Pre-Refunded to 2/1/16 @ 100) | 3,400 | 3,573 | ||
San Antonio Pub. Facilities Corp. and Rfdg. Lease (Convention Ctr. Proj.) Series 2012: | ||||
5% 9/15/20 | 1,000 | 1,164 | ||
5% 9/15/21 | 1,000 | 1,179 | ||
5% 9/15/22 | 3,440 | 4,070 | ||
San Antonio Wtr. Sys. Rev. Series 2012: | ||||
4% 5/15/19 | 1,500 | 1,670 | ||
5% 5/15/20 | 6,000 | 7,067 | ||
5% 5/15/21 | 5,000 | 5,960 | ||
San Jacinto Cmnty. College District Series 2009: | ||||
5% 2/15/15 | 2,220 | 2,233 | ||
5% 2/15/15 (Escrowed to Maturity) | 280 | 281 | ||
5% 2/15/16 | 2,000 | 2,104 | ||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) Series 2009, 5% 10/1/16 | 5,795 | 6,241 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev.: | ||||
(Scott & White Healthcare Proj.) Series 2013 A: | ||||
5% 8/15/21 | 750 | 884 | ||
5% 8/15/23 | 1,000 | 1,187 | ||
Series 2013: | ||||
4% 9/1/18 | 400 | 435 | ||
5% 9/1/19 | 655 | 748 | ||
5% 9/1/20 | 915 | 1,060 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Rev.: | ||||
5.75% 7/1/18 | 2,600 | 2,872 | ||
5.75% 7/1/18 (Pre-Refunded to 7/1/16 @ 100) | 810 | 833 | ||
Texas Gen. Oblig.: | ||||
Series 2006, 5% 4/1/27 (Pre-Refunded to 4/1/16 @ 100) | 3,700 | 3,920 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Texas Gen. Oblig.: - continued | ||||
Series 2009 A, 5% 10/1/16 | $ 3,400 | $ 3,665 | ||
Series 2014, 5% 10/1/16 | 10,645 | 11,474 | ||
Texas Muni. Pwr. Agcy. Rev. Series 2010: | ||||
5% 9/1/15 | 835 | 860 | ||
5% 9/1/16 | 750 | 803 | ||
Texas Pub. Fin. Auth. Rev. Series 2014 B: | ||||
4% 7/1/17 | 2,100 | 2,243 | ||
4% 7/1/18 | 2,200 | 2,277 | ||
Texas Trans. Commission Central Texas Tpk. Sys. Rev. Bonds Series 2012 B, 1.25%, tender 2/15/15 (d) | 6,300 | 6,306 | ||
Texas Trans. Commission State Hwy. Fund Rev. Series 2007, 5% 4/1/25 | 2,200 | 2,394 | ||
Tomball Independent School District 5% 2/15/17 (Assured Guaranty Corp. Insured) | 1,105 | 1,192 | ||
Univ. of Texas Board of Regents Sys. Rev.: | ||||
Series 2006 B, 5% 8/15/24 (Pre-Refunded to 8/15/16 @ 100) | 5,975 | 6,403 | ||
Series 2010 B, 5% 8/15/21 | 1,800 | 2,170 | ||
| 289,989 | |||
Utah - 0.2% | ||||
Utah Associated Muni. Pwr. Sys. Rev. (Payson Pwr. Proj.) 5% 9/1/17 | 1,090 | 1,194 | ||
Utah Gen. Oblig. Series 2009 C, 5% 7/1/16 | 5,555 | 5,931 | ||
| 7,125 | |||
Vermont - 0.1% | ||||
Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Fletcher Allen Health Care Proj.) Series 2004 B, 5% 12/1/15 (FSA Insured) | 2,225 | 2,310 | ||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Series 2009 B, 5% 10/1/15 | 5,000 | 5,144 | ||
Virginia - 0.4% | ||||
Chesapeake Trans. Sys. Toll Road Rev. Series 2012 A: | ||||
4% 7/15/20 | 605 | 669 | ||
5% 7/15/21 | 400 | 458 | ||
Fredericksburg Econ. Dev. Auth. Rev. Series 2014, 5% 6/15/24 | 2,340 | 2,729 | ||
Virginia Commonwealth Trans. Board Rev. (U.S. Route 58 Corridor Dev. Prog.) Series 2014 B, 5% 5/15/16 | 2,100 | 2,231 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Virginia - continued | ||||
Virginia Pub. School Auth.: | ||||
Series ll, 5% 4/15/16 | $ 2,600 | $ 2,754 | ||
Series Xll, 5% 4/15/16 | 3,940 | 4,173 | ||
York County Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. and Pwr. Co. Proj.) Series 2009 A, 1.875%, tender 5/16/19 (d) | 2,500 | 2,544 | ||
| 15,558 | |||
Washington - 2.8% | ||||
Energy Northwest Elec. Rev. Series 2012 A, 5% 7/1/19 | 40,000 | 46,278 | ||
Grant County Pub. Util. District #2 Series 2012 A: | ||||
5% 1/1/20 | 1,375 | 1,608 | ||
5% 1/1/21 | 1,865 | 2,219 | ||
King County Highline School District # 401 Series 2009: | ||||
5% 12/1/16 | 6,350 | 6,880 | ||
5% 12/1/17 | 2,950 | 3,290 | ||
Port of Seattle Passenger Facilities Charge Rev. Series 2010 B, 5% 12/1/16 (e) | 2,500 | 2,699 | ||
Port of Seattle Rev. Series 2010 C: | ||||
5% 2/1/16 (e) | 2,000 | 2,097 | ||
5% 2/1/17 (e) | 2,500 | 2,705 | ||
Seattle Muni. Lt. & Pwr. Rev. Series 2010 B, 5% 2/1/17 | 2,000 | 2,175 | ||
Spokane County Wastewtr. Sys. Rev. Series 2009 A, 5% 12/1/15 | 1,710 | 1,784 | ||
Tacoma Elec. Sys. Rev. Series 2013 A: | ||||
4% 1/1/20 | 5,000 | 5,586 | ||
4% 1/1/21 | 2,000 | 2,251 | ||
5% 1/1/20 | 3,000 | 3,503 | ||
5% 1/1/21 | 1,770 | 2,098 | ||
Washington Gen. Oblig.: | ||||
Series 2012 AR, 5% 7/1/18 | 5,000 | 5,665 | ||
Series 2015 AR, 5% 7/1/18 | 18,720 | 21,210 | ||
| 112,048 | |||
West Virginia - 0.2% | ||||
West Virginia Econ. Dev. Auth. Solid Waste Disp. Facilities Rev. Bonds Series 2011 A, 2.25%, tender 9/1/16 (d)(e) | 7,000 | 7,108 | ||
Wisconsin - 0.7% | ||||
Madison Gen. Oblig. Series 2014 A, 5% 10/1/21 | 3,215 | 3,872 | ||
Milwaukee County Arpt. Rev.: | ||||
Series 2010 B, 5% 12/1/15 (e) | 1,720 | 1,793 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Wisconsin - continued | ||||
Milwaukee County Arpt. Rev.: - continued | ||||
Series 2013 A: | ||||
5% 12/1/20 (e) | $ 1,330 | $ 1,545 | ||
5% 12/1/22 (e) | 1,470 | 1,724 | ||
5.25% 12/1/23 (e) | 1,540 | 1,850 | ||
Wisconsin Gen. Oblig.: | ||||
Series 2005 D, 5% 5/1/19 (Pre-Refunded to 5/1/16 @ 100) | 2,260 | 2,399 | ||
Series 2014 B, 5% 5/1/16 | 2,600 | 2,757 | ||
Wisconsin Health & Edl. Facilities Series 2014: | ||||
4% 5/1/18 | 375 | 402 | ||
4% 5/1/19 | 285 | 306 | ||
5% 5/1/20 | 410 | 460 | ||
5% 5/1/21 | 640 | 719 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Agnesian HealthCare, Inc. Proj.) Series 2010, 5% 7/1/16 | 1,175 | 1,243 | ||
(Aurora Health Care, Inc. Proj.) Series 2010 A, 5% 4/15/17 | 1,500 | 1,625 | ||
(Thedacare, Inc. Proj.) Series 2010: | ||||
5% 12/15/15 | 1,105 | 1,154 | ||
5% 12/15/16 | 1,440 | 1,557 | ||
5% 12/15/17 | 1,540 | 1,712 | ||
Series 2012, 5% 10/1/21 | 1,400 | 1,644 | ||
| 26,762 | |||
TOTAL MUNICIPAL BONDS (Cost $3,621,419) |
|
Municipal Notes - 2.2% | |||
|
|
|
|
Connecticut - 0.4% | |||
Hartford Gen. Oblig. BAN 2% 10/27/15 | 14,200 | 14,383 | |
Louisiana - 1.0% | |||
Saint James Parish Gen. Oblig. (Nucor Steel Louisiana LLC Proj.): | |||
Series 2010 A1, 0.22% 1/7/15, VRDN (d) | 4,300 | 4,300 | |
Series 2010 B1, 0.2% 1/7/15, VRDN (d) | 35,600 | 35,600 | |
| 39,900 | ||
New York - 0.7% | |||
Monroe County Gen. Oblig. BAN Series 2014, 1% 7/1/15 | 17,700 | 17,738 | |
Municipal Notes - continued | |||
Principal Amount (000s) | Value (000s) | ||
New York - continued | |||
Oyster Bay Gen. Oblig. TAN Series 2014, 1% 3/27/15 | $ 8,300 | $ 8,309 | |
Rockland County Gen. Oblig. TAN Series 2014, 2% 3/17/15 | 1,900 | 1,905 | |
| 27,952 | ||
North Carolina - 0.1% | |||
Hertford County Indl. Facilities Poll. Cont. Fing. Auth. (Nucor Corp. Proj.) Series 2000 A, 0.22% 1/7/15, VRDN (d)(e) | 5,900 | 5,900 | |
TOTAL MUNICIPAL NOTES (Cost $88,129) |
| ||
TOTAL INVESTMENT PORTFOLIO - 95.4% (Cost $3,709,548) | 3,791,440 | ||
NET OTHER ASSETS (LIABILITIES) - 4.6% | 184,752 | ||
NET ASSETS - 100% | $ 3,976,192 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
TAN | - | TAX ANTICIPATION NOTE |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
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 exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $5,514,000 or 0.1% of net assets. |
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
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 |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 38.1% |
Electric Utilities | 12.5% |
Transportation | 9.9% |
Special Tax | 9.4% |
Health Care | 8.7% |
Others* (Individually Less Than 5%) | 21.4% |
| 100.0% |
* Includes net other assets
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | December 31, 2014 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $3,709,548) |
| $ 3,791,440 |
Cash |
| 220,509 |
Receivable for fund shares sold | 6,616 | |
Interest receivable | 39,359 | |
Prepaid expenses | 8 | |
Other receivables | 19 | |
Total assets | 4,057,951 | |
|
|
|
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 65,719 | |
Payable for fund shares redeemed | 12,548 | |
Distributions payable | 1,295 | |
Accrued management fee | 1,195 | |
Distribution and service plan fees payable | 142 | |
Other affiliated payables | 809 | |
Other payables and accrued expenses | 51 | |
Total liabilities | 81,759 | |
|
|
|
Net Assets | $ 3,976,192 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,893,079 | |
Undistributed net investment income | 112 | |
Accumulated undistributed net realized gain (loss) on investments | 1,109 | |
Net unrealized appreciation (depreciation) on investments | 81,892 | |
Net Assets | $ 3,976,192 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2014 | |
Calculation of Maximum Offering Price Class A: | $ 10.71 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.71) | $ 11.01 | |
Class T: | $ 10.69 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.69) | $ 10.99 | |
Class B: | $ 10.71 | |
|
|
|
Class C: | $ 10.69 | |
|
|
|
Limited Term Municipal Income: | $ 10.69 | |
|
|
|
Institutional Class: | $ 10.70 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended December 31, 2014 | |
Investment Income |
|
|
Interest |
| $ 85,036 |
Income from Fidelity Central Funds |
| 2 |
Total income |
| 85,038 |
|
|
|
Expenses | ||
Management fee | $ 13,872 | |
Transfer agent fees | 4,054 | |
Distribution and service plan fees | 1,555 | |
Accounting fees and expenses | 611 | |
Custodian fees and expenses | 48 | |
Independent trustees' compensation | 17 | |
Registration fees | 184 | |
Audit | 59 | |
Legal | 9 | |
Miscellaneous | 30 | |
Total expenses before reductions | 20,439 | |
Expense reductions | (60) | 20,379 |
Net investment income (loss) | 64,659 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 4,731 |
Change in net unrealized appreciation (depreciation) on investment securities | 12,153 | |
Net gain (loss) | 16,884 | |
Net increase (decrease) in net assets resulting from operations | $ 81,543 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 64,659 | $ 71,632 |
Net realized gain (loss) | 4,731 | 5,964 |
Change in net unrealized appreciation (depreciation) | 12,153 | (76,421) |
Net increase (decrease) in net assets resulting | 81,543 | 1,175 |
Distributions to shareholders from net investment income | (64,660) | (71,638) |
Distributions to shareholders from net realized gain | (5,775) | (3,714) |
Total distributions | (70,435) | (75,352) |
Share transactions - net increase (decrease) | 176,760 | (480,013) |
Redemption fees | 43 | 46 |
Total increase (decrease) in net assets | 187,911 | (554,144) |
|
|
|
Net Assets | ||
Beginning of period | 3,788,281 | 4,342,425 |
End of period (including undistributed net investment income of $112 and undistributed net investment income of $50, respectively) | $ 3,976,192 | $ 3,788,281 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.68 | $ 10.86 | $ 10.83 | $ 10.62 | $ 10.64 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .153 | .158 | .164 | .198 | .209 |
Net realized and unrealized gain (loss) | .046 | (.170) | .034 | .225 | (.016) |
Total from investment operations | .199 | (.012) | .198 | .423 | .193 |
Distributions from net investment income | (.153) | (.158) | (.156) | (.205) | (.209) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.169) | (.168) | (.168) | (.213) | (.213) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.71 | $ 10.68 | $ 10.86 | $ 10.83 | $ 10.62 |
Total Return A, B | 1.87% | (.11)% | 1.84% | 4.03% | 1.81% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | .79% | .78% | .79% | .77% | .78% |
Expenses net of fee waivers, if any | .79% | .78% | .79% | .77% | .78% |
Expenses net of all reductions | .79% | .78% | .78% | .77% | .77% |
Net investment income (loss) | 1.42% | 1.47% | 1.51% | 1.85% | 1.95% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 397 | $ 318 | $ 394 | $ 336 | $ 200 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 | $ 10.63 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .157 | .162 | .166 | .199 | .211 |
Net realized and unrealized gain (loss) | .046 | (.180) | .044 | .226 | (.026) |
Total from investment operations | .203 | (.018) | .210 | .425 | .185 |
Distributions from net investment income | (.157) | (.162) | (.158) | (.207) | (.211) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.173) | (.172) | (.170) | (.215) | (.215) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.69 | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 |
Total Return A, B | 1.91% | (.17)% | 1.95% | 4.05% | 1.74% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | .76% | .75% | .77% | .76% | .76% |
Expenses net of fee waivers, if any | .76% | .75% | .77% | .76% | .76% |
Expenses net of all reductions | .75% | .75% | .76% | .76% | .75% |
Net investment income (loss) | 1.46% | 1.50% | 1.52% | 1.86% | 1.97% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 25 | $ 24 | $ 25 | $ 26 | $ 24 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.67 | $ 10.86 | $ 10.82 | $ 10.61 | $ 10.64 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .086 | .089 | .093 | .128 | .139 |
Net realized and unrealized gain (loss) | .056 | (.180) | .045 | .226 | (.026) |
Total from investment operations | .142 | (.091) | .138 | .354 | .113 |
Distributions from net investment income | (.086) | (.089) | (.086) | (.136) | (.139) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.102) | (.099) | (.098) | (.144) | (.143) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.71 | $ 10.67 | $ 10.86 | $ 10.82 | $ 10.61 |
Total Return A, B | 1.33% | (.84)% | 1.27% | 3.36% | 1.06% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | 1.42% | 1.43% | 1.44% | 1.43% | 1.44% |
Expenses net of fee waivers, if any | 1.42% | 1.43% | 1.44% | 1.42% | 1.43% |
Expenses net of all reductions | 1.42% | 1.43% | 1.43% | 1.42% | 1.42% |
Net investment income (loss) | .80% | .82% | .85% | 1.19% | 1.30% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ - | $ 1 | $ 1 | $ 2 | $ 2 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.66 | $ 10.84 | $ 10.81 | $ 10.60 | $ 10.63 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .072 | .077 | .082 | .117 | .129 |
Net realized and unrealized gain (loss) | .046 | (.169) | .035 | .226 | (.026) |
Total from investment operations | .118 | (.092) | .117 | .343 | .103 |
Distributions from net investment income | (.072) | (.078) | (.075) | (.125) | (.129) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.088) | (.088) | (.087) | (.133) | (.133) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.69 | $ 10.66 | $ 10.84 | $ 10.81 | $ 10.60 |
Total Return A, B | 1.11% | (.86)% | 1.08% | 3.25% | .96% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | 1.54% | 1.54% | 1.53% | 1.53% | 1.52% |
Expenses net of fee waivers, if any | 1.54% | 1.54% | 1.53% | 1.53% | 1.52% |
Expenses net of all reductions | 1.54% | 1.53% | 1.53% | 1.52% | 1.52% |
Net investment income (loss) | .67% | .72% | .76% | 1.09% | 1.20% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 65 | $ 71 | $ 92 | $ 79 | $ 77 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Limited Term Municipal Income
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 | $ 10.63 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .186 | .191 | .197 | .228 | .240 |
Net realized and unrealized gain (loss) | .046 | (.180) | .045 | .227 | (.026) |
Total from investment operations | .232 | .011 | .242 | .455 | .214 |
Distributions from net investment income | (.186) | (.191) | (.190) | (.237) | (.240) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.202) | (.201) | (.202) | (.245) | (.244) |
Redemption fees added to paid in capital B, F | - | - | - | - | - |
Net asset value, end of period | $ 10.69 | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 |
Total Return A | 2.19% | .10% | 2.25% | 4.34% | 2.02% |
Ratios to Average Net Assets C, E |
|
|
|
|
|
Expenses before reductions | .48% | .48% | .48% | .48% | .48% |
Expenses net of fee waivers, if any | .48% | .48% | .48% | .48% | .48% |
Expenses net of all reductions | .48% | .48% | .47% | .48% | .48% |
Net investment income (loss) | 1.73% | 1.78% | 1.81% | 2.14% | 2.24% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,225 | $ 3,168 | $ 3,624 | $ 3,523 | $ 3,456 |
Portfolio turnover rate D | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.67 | $ 10.85 | $ 10.81 | $ 10.61 | $ 10.63 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .179 | .184 | .191 | .224 | .235 |
Net realized and unrealized gain (loss) | .046 | (.169) | .045 | .216 | (.015) |
Total from investment operations | .225 | .015 | .236 | .440 | .220 |
Distributions from net investment income | (.179) | (.185) | (.184) | (.232) | (.236) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.195) | (.195) | (.196) | (.240) | (.240) |
Redemption fees added to paid in capital B, F | - | - | - | - | - |
Net asset value, end of period | $ 10.70 | $ 10.67 | $ 10.85 | $ 10.81 | $ 10.61 |
Total Return A | 2.12% | .14% | 2.19% | 4.19% | 2.07% |
Ratios to Average Net Assets C, E |
|
|
|
| |
Expenses before reductions | .55% | .54% | .54% | .52% | .53% |
Expenses net of fee waivers, if any | .55% | .54% | .54% | .52% | .53% |
Expenses net of all reductions | .54% | .54% | .53% | .52% | .52% |
Net investment income (loss) | 1.67% | 1.71% | 1.76% | 2.09% | 2.20% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 263 | $ 207 | $ 206 | $ 152 | $ 142 |
Portfolio turnover rate D | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2014
(Amounts in thousands except percentages)
1. Organization.
Fidelity Limited Term 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 C, Limited Term Municipal Income and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, 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.
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Municipal securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Annual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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 may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of December 31, 2014, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and 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 GAAP. 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to wash sales and 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 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 85,896 |
Gross unrealized depreciation | (3,990) |
Net unrealized appreciation (depreciation) on securities | $ 81,906 |
|
|
Tax Cost | $ 3,709,534 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed tax-exempt income | $ 90 |
Undistributed long-term capital gain | $ 1,118 |
Net unrealized appreciation (depreciation) on securities and other investments | $ 81,906 |
The tax character of distributions paid was as follows:
| December 31, 2014 | December 31, 2013 |
Tax-exempt Income | $ 64,660 | $ 71,638 |
Long-term Capital Gains | 5,775 | 3,714 |
Total | $ 70,435 | $ 75,352 |
Annual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in 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. 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $882,192 and $775,695, respectively.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .36% of the Fund's average net assets.
Distribution and Service Plan Fees. 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 the investment adviser, 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, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 824 | $ 7 |
Class T | -% | .25% | 59 | -* |
Class B | .65% | .25% | 4 | 3 |
Class C | .75% | .25% | 668 | 82 |
|
|
| $ 1,555 | $ 92 |
* Amount represents one hundred ninety dollars.
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 3.00% to 1.00% for Class B shares, 1.00% for Class C shares, .75% or .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Annual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained | |||
Class A | $ 19 | |||
Class T | 8 | |||
Class B* | 1 | |||
Class C* | 6 | |||
| $ 34 |
* 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 servicing agent for the Fund's Class A, Class T, Class B, Class C, Limited Term Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, with respect to all classes of the Fund, to perform the transfer agency, dividend disbursing, and shareholder servicing functions. FIIOC receives 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 pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 515 | .16 |
Class T | 28 | .12 |
Class B | 1 | .13 |
Class C | 104 | .16 |
Limited Term Municipal Income | 3,049 | .10 |
Institutional Class | 357 | .16 |
| $ 4,054 |
|
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, under which FSC maintains the Fund's accounting records. The fee is paid to Citibank and is based on the level of average net assets for each month.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, 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 $40 and $20, respectively.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2014 | 2013 |
From net investment income |
|
|
Class A | $ 4,673 | $ 5,745 |
Class T | 347 | 389 |
Class B | 3 | 7 |
Class C | 452 | 585 |
Limited Term Municipal Income | 55,470 | 61,526 |
Institutional Class | 3,715 | 3,386 |
Total | $ 64,660 | $ 71,638 |
From net realized gain |
|
|
Class A | $ 518 | $ 329 |
Class T | 36 | 24 |
Class B | 1 | 1 |
Class C | 101 | 71 |
Limited Term Municipal Income | 4,778 | 3,097 |
Institutional Class | 341 | 192 |
Total | $ 5,775 | $ 3,714 |
Annual Report
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars | ||
Years ended December 31, | 2014 | 2013 | 2014 | 2013 |
Class A |
|
|
|
|
Shares sold | 21,930 | 17,258 | $ 235,729 | $ 186,600 |
Reinvestment of distributions | 419 | 453 | 4,497 | 4,871 |
Shares redeemed | (15,005) | (24,258) | (161,198) | (260,966) |
Net increase (decrease) | 7,344 | (6,547) | $ 79,028 | $ (69,495) |
Class T |
|
|
|
|
Shares sold | 936 | 1,844 | $ 10,041 | $ 19,947 |
Reinvestment of distributions | 34 | 36 | 360 | 384 |
Shares redeemed | (932) | (1,872) | (9,993) | (20,208) |
Net increase (decrease) | 38 | 8 | $ 408 | $ 123 |
Class B |
|
|
|
|
Shares sold | 5 | 16 | $ 58 | $ 168 |
Reinvestment of distributions | -* | 1 | 4 | 6 |
Shares redeemed | (17) | (69) | (183) | (740) |
Net increase (decrease) | (12) | (52) | $ (121) | $ (566) |
Class C |
|
|
|
|
Shares sold | 1,064 | 1,589 | $ 11,413 | $ 17,079 |
Reinvestment of distributions | 42 | 49 | 454 | 522 |
Shares redeemed | (1,668) | (3,466) | (17,881) | (37,229) |
Net increase (decrease) | (562) | (1,828) | $ (6,014) | $ (19,628) |
Limited Term Municipal Income |
|
|
|
|
Shares sold | 76,270 | 84,688 | $ 818,051 | $ 911,728 |
Reinvestment of distributions | 4,133 | 4,446 | 44,337 | 47,763 |
Shares redeemed | (75,997) | (126,146) | (815,047) | (1,354,126) |
Net increase (decrease) | 4,406 | (37,012) | $ 47,341 | $ (394,635) |
Institutional Class |
|
|
|
|
Shares sold | 13,740 | 12,901 | $ 147,453 | $ 138,587 |
Reinvestment of distributions | 270 | 212 | 2,893 | 2,276 |
Shares redeemed | (8,783) | (12,706) | (94,228) | (136,675) |
Net increase (decrease) | 5,227 | 407 | $ 56,118 | $ 4,188 |
* Amount represents three hundred sixty-two shares.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Limited Term Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Limited Term Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Limited Term Municipal Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 19, 2015
Annual Report
Trustees and Officers
The Trustees and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Elizabeth S. Acton, James C. Curvey, and John Engler, each of the Trustees oversees 233 funds. Ms. Acton and Mr. Engler each oversees 215 funds. Mr. Curvey oversees 407 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
James C. Curvey (1935) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), and a Director of FMR Co., Inc. (2007-2014). |
Abigail P. Johnson (1961) | |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees | |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC, President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
Year of Election or Appointment: 2013 Trustee | |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present).] |
John Engler (1948) | |
Year of Election or Appointment: 2014 Trustee | |
| Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association.] |
Albert R. Gamper, Jr. (1942) | |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees | |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
Year of Election or Appointment: 2010 Trustee | |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
Year of Election or Appointment: 2008 Trustee | |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
Year of Election or Appointment: 2009 Trustee | |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees | |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation | |
Elizabeth Paige Baumann (1968) | |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer | |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Robert P. Brown (1963) | |
Year of Election or Appointment: 2012 Vice President of Fidelity's Bond Funds | |
| Mr. Brown also serves as Vice President of other funds. Mr. Brown serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director, Research of Fidelity Management & Research (U.K.) Inc. (2008-present), and is an employee of Fidelity Investments. Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's Money Market Funds (2010-2012). |
Marc Bryant (1966) | |
Year of Election or Appointment: 2013 Assistant Secretary | |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) | |
Year of Election or Appointment: 2013 President and Treasurer | |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) | |
Year of Election or Appointment: 2014 Chief Financial Officer | |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) | |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) | |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Limited (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Chris Maher (1972) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) | |
Year of Election or Appointment: 2014 Vice President | |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) | |
Year of Election or Appointment: 2009 Assistant Treasurer | |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) | |
Year of Election or Appointment: 2008 Chief Compliance Officer | |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (2014-present), FMR (2014-present), Fidelity Investments Money Management, Inc. (2014-present), and is an employee of Fidelity Invest-ments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
Year of Election or Appointment: 2011 Deputy Treasurer | |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of Limited Term Municipal Income Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
| Pay Date | Record Date | Capital Gains |
Class A | 02/09/15 | 02/06/15 | $0.004 |
Class T | 02/09/15 | 02/06/15 | $0.004 |
Class B | 02/09/15 | 02/06/15 | $0.004 |
Class C | 02/09/15 | 02/06/15 | $0.004 |
During fiscal year ended 2014, 100% of the fund's income dividends was free from federal income tax, and 4.93% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2014, $4,486,196, or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Limited Term Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the 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 relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by 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. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2014 meeting, the Board, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. 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 fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and 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. In connection with separate internal corporate reorganizations involving Fidelity Management & Research (U.K.) Inc. (FMR U.K.) and Fidelity Management & Research (Japan) Inc. (FMR Japan), the Board approved certain non-material amendments to the fund's sub-advisory agreements with FMR U.K. and FMR Japan to reflect that, after these reorganizations, FMR Investment Management (UK) Limited and Fidelity Management & Research (Japan) Limited will carry on the business of FMR U.K. and FMR Japan, respectively. The Board noted that no changes to the portfolio managers or to the foreign research or investment advisory services provided to the fund were expected in connection with either reorganization and that the same personnel and resources would continue to be available to the fund at the new entities.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. 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 to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, 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 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 over time 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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
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 a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing a new Fidelity adviser, Fidelity SelectCo, LLC, to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Annual Report
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG %s are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the chart and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Limited Term Municipal Income Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2013.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, 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 that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund. As part of its review, the Board also considered the current and historical total expense ratios 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 expense ratio of the retail class ranked below its competitive median for 2013, the total expense ratio of Class B ranked equal to its competitive median for 2013, and the total expense ratio of each of Class A, Class T, Class C, and Institutional Class ranked above its competitive median for 2013. The Board considered that, in general, various factors can affect total expense ratios. The Board noted that the total expense ratio of Class T was above the competitive median primarily because of higher 12b-1 fees on Class T as compared to most competitor funds. Class T has a higher 12b-1 fee, but a lower front-end sales charge, than traditionally priced front-end sales charge classes. The Board considered that Class T is primarily sold load-waived in the retirement plan market, where its 0.50% 12b-1 fee is comparable to competing no-load, higher 12b-1 fee classes designed specifically for retirement plans. The Board noted the total expense ratio of Class C was above the competitive median primarily because of higher 12b-1 fees compared to most competitor funds with Class C. 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 expense ratios 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.
Annual Report
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients. The Board noted the findings of the 2013 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable, although in some cases 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 servicing the fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. 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 Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board also reviewed Fidelity's non-fund businesses and 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 was satisfied that the profitability was not excessive.
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 as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under FMR's management plus sector fund assets previously under FMR's management and currently managed by Fidelity SelectCo, LLC). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity 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 benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Annual Report
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
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 certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) the methodology with respect to competitive fund data and peer group classifications; (viii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (ix) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
ASTM-UANN-0215 1.796655.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Limited Term
Municipal Income Fund
- Institutional Class
Annual Report
December 31, 2014
(Fidelity Cover Art)
Institutional Class is a class of
Fidelity® Limited Term
Municipal Income Fund
Contents
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
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/proxyvotingresults 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 LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2014 | Past 1 | Past 5 | Past 10 |
Institutional Class | 2.12% | 2.13% | 2.81% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® Limited Term Municipal Income Fund - Institutional Class on December 31, 2004. The chart shows how the value of your investment would have changed, and also shows how the Barclays® Municipal Bond Index performed over the same period.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds posted a strong result for the 12 months ending December 31, 2014, driven by steady demand, tight supply and improving credit fundamentals. The Barclays® Municipal Bond Index returned 9.05%, significantly outperforming the U.S. investment-grade taxable bond market. Munis were driven, in part, by continued economic growth, declining long-term interest rates, and the relative attractiveness of U.S. markets amid global economic and political uncertainty. More specific to munis, prices rose as investors became more upbeat about the fundamental outlook of many state and local governments. Additionally, a steady stream of municipal bond cash flows - coupon payments, maturities and those due to early bond calls by issuers - fueled reinvestment. Meanwhile, investors took solace that the financial distress experienced by Puerto Rico, Detroit and a few California cities in bankruptcy did not expand to the broader market. Lastly, the tax advantages of munis had particular appeal due to the higher federal tax rates for top earners that took effect in 2013, as well as the new 3.8% Medicare tax on unearned, non-municipal investment income.
Comments from Mark Sommer, Lead Portfolio Manager of Fidelity Advisor® Limited Term Municipal Income Fund: For the year, the fund's Institutional Class shares returned 2.12%, while the Barclays® 1-6 Year Municipal Bond Index returned 1.78%. I kept the fund's interest rate sensitivity in line with the benchmark, and evaluated bonds based on their yields as well as their potential for price appreciation. The fund's yield-curve positioning was helpful to performance. We owned more bonds with maturities of five to 10 years compared with the index, and had less exposure to two- to three-year bonds. Longer-term bonds outperformed, driven in large measure by investors' appetite for more yield. My decision to overweight the health care sector was rewarded, as investors' appetite for yield helped it outperform higher-quality sectors. We also benefited from an overweighting in investment-grade bonds rated A and below, due to strong demand for their marginally higher yields. There weren't any major disappointments. That said, the fund's underweighting to bonds issued by Citizen's Property Insurance Corporation modestly detracted from results, reflecting the strong performance of these securities due to strong demand.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2014 to December 31, 2014).
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. 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 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. 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.
Annual Report
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,003.80 | $ 3.99 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.22 | $ 4.02 |
Class T | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,003.90 | $ 3.79 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.42 | $ 3.82 |
Class B | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.70 | $ 7.06 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class C | 1.53% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.00 | $ 7.71 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.49 | $ 7.78 |
Limited Term Municipal Income | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.40 | $ 2.43 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Institutional Class | .54% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,005.00 | $ 2.73 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.48 | $ 2.75 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five States as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
New York | 10.6 | 11.9 |
Florida | 9.0 | 8.0 |
Illinois | 8.6 | 10.2 |
California | 8.6 | 9.3 |
Texas | 7.3 | 7.2 |
Top Five Sectors as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
General Obligations | 38.1 | 35.8 |
Electric Utilities | 12.5 | 12.8 |
Transportation | 9.9 | 10.8 |
Special Tax | 9.4 | 11.3 |
Health Care | 8.7 | 8.4 |
Weighted Average Maturity as of December 31, 2014 | ||
|
| 6 months ago |
Years | 3.3 | 3.2 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2014 | ||
|
| 6 months ago |
Years | 2.7 | 2.7 |
Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | AAA 9.2% |
| ![]() | AAA 8.2% |
| ||
![]() | AA,A 76.0% |
| ![]() | AA,A 77.4% |
| ||
![]() | BBB 6.4% |
| ![]() | BBB 5.9% |
| ||
![]() | BB and Below 0.0% |
| ![]() | BB and Below 0.1% |
| ||
![]() | Not Rated 1.6% |
| ![]() | Not Rated 2.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2014
Showing Percentage of Net Assets
Municipal Bonds - 93.2% | ||||
| Principal Amount (000s) | Value (000s) | ||
Alaska - 0.6% | ||||
Anchorage Gen. Oblig.: | ||||
Series A: | ||||
5% 9/1/20 | $ 1,090 | $ 1,288 | ||
5% 9/1/22 | 1,200 | 1,455 | ||
Series B: | ||||
5% 9/1/18 | 3,685 | 4,198 | ||
5% 9/1/20 | 2,000 | 2,364 | ||
5% 9/1/22 | 1,425 | 1,728 | ||
Series C: | ||||
5% 9/1/18 | 1,000 | 1,139 | ||
5% 9/1/19 | 2,150 | 2,500 | ||
5% 9/1/20 | 1,260 | 1,489 | ||
5% 9/1/22 | 1,000 | 1,213 | ||
Series D: | ||||
5% 9/1/19 | 3,895 | 4,528 | ||
5% 9/1/20 | 2,000 | 2,364 | ||
| 24,266 | |||
Arizona - 2.5% | ||||
Arizona Ctfs. of Prtn. Series 2010 A, 5% 10/1/16 (FSA Insured) | 13,000 | 13,965 | ||
Arizona Health Facilities Auth. Rev. (Scottsdale Lincoln Hospitals Proj.) Series 2014 A: | ||||
5% 12/1/18 | 500 | 565 | ||
5% 12/1/19 | 600 | 689 | ||
5% 12/1/20 | 820 | 952 | ||
5% 12/1/21 | 1,105 | 1,294 | ||
5% 12/1/22 | 800 | 941 | ||
5% 12/1/23 | 1,000 | 1,184 | ||
5% 12/1/24 | 1,500 | 1,787 | ||
Arizona School Facilities Board Ctfs. of Prtn.: | ||||
Series 2005 A2, 5% 9/1/16 (Pre-Refunded to 9/1/15 @ 100) | 11,000 | 11,347 | ||
Series 2008, 5.5% 9/1/16 | 1,385 | 1,495 | ||
Arizona Wtr. Infrastructure Fin. Auth. Rev. Series 2009 A: | ||||
5% 10/1/18 | 1,000 | 1,144 | ||
5% 10/1/20 (Pre-Refunded to 10/1/19 @ 100) | 5,180 | 6,078 | ||
Maricopa County School District #28 Kyrene Elementary Series 2010 B: | ||||
1% 7/1/19 (a) | 900 | 955 | ||
1% 7/1/20 (a) | 1,360 | 1,444 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Arizona - continued | ||||
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.: | ||||
Series 2009 A, 5% 7/1/15 | $ 5,835 | $ 5,972 | ||
Series 2009 B, 5% 7/1/16 | 5,090 | 5,432 | ||
Phoenix Indl. Solid Waste Disp. Rev. Bonds (Republic Svc., Inc. Proj.) Series 2013, 0.4%, tender 2/2/15 (d)(e) | 17,350 | 17,350 | ||
Pima County Ctfs. of Prtn. Series 2014: | ||||
5% 12/1/21 | 2,210 | 2,580 | ||
5% 12/1/22 | 2,470 | 2,910 | ||
5% 12/1/23 | 3,425 | 4,071 | ||
Pima County Swr. Sys. Rev.: | ||||
Series 2011 B, 5% 7/1/19 | 3,225 | 3,722 | ||
Series 2012 A: | ||||
5% 7/1/18 | 825 | 934 | ||
5% 7/1/19 | 1,550 | 1,796 | ||
Tucson Gen. Oblig. Series 2005, 5% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,250 | 1,278 | ||
Univ. Med. Ctr. Corp. Hosp. Rev. Series 2011: | ||||
5% 7/1/16 | 3,055 | 3,224 | ||
5% 7/1/17 | 3,315 | 3,595 | ||
5% 7/1/18 | 3,365 | 3,732 | ||
| 100,436 | |||
California - 8.6% | ||||
Alameda Corridor Trans. Auth. Rev.: | ||||
Series 2004 A, 0% 10/1/19 | 3,600 | 3,244 | ||
Series 2013 A, 5% 10/1/22 | 2,190 | 2,633 | ||
Bay Area Toll Auth. San Francisco Bay Toll Bridge Rev. Bonds 1.5%, tender 4/2/18 | 5,200 | 5,242 | ||
California Gen. Oblig.: | ||||
Bonds 3%, tender 12/1/19 (d) | 15,600 | 16,673 | ||
5% 9/1/18 | 7,500 | 8,547 | ||
5% 9/1/19 | 20,000 | 23,301 | ||
5% 9/1/20 | 20,000 | 23,661 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.) Series 2008 H, 5.125% 7/1/22 (Pre-Refunded to 7/1/15 @ 100) | 1,005 | 1,029 | ||
Bonds (Children's Hosp. of Orange County Proj.) Series 2012 A, 1.84%, tender 7/1/17 (d) | 4,000 | 4,060 | ||
California Infra Eco Dev. Bank Rev. Bonds Series 2013 A1: | ||||
0.32%, tender 4/1/16 (d) | 17,000 | 17,000 | ||
0.32%, tender 4/1/16 (d) | 30,000 | 30,000 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Pub. Works Board Lease Rev.: | ||||
(Dept. of Corrections & Rehab. Proj.) Series 2011 C, 5% 10/1/18 | $ 1,750 | $ 1,991 | ||
(Riverside Campus Proj.) Series 2012 H, 5% 4/1/22 | 1,000 | 1,199 | ||
(Univ. Proj.) Series 2011 B: | ||||
5% 10/1/18 | 2,740 | 3,124 | ||
5% 10/1/19 | 1,490 | 1,735 | ||
(Various Cap. Projs.): | ||||
Series 2011 A: | ||||
5% 10/1/18 | 6,475 | 7,366 | ||
5% 10/1/19 | 5,000 | 5,805 | ||
5% 10/1/20 | 2,525 | 2,980 | ||
Series 2012 A, 5% 4/1/21 | 1,000 | 1,189 | ||
Series 2012 G, 5% 11/1/22 | 1,250 | 1,508 | ||
(Various Judicial Council Projects) Series 2011 D, 5% 12/1/19 | 4,100 | 4,776 | ||
Series 2009 J, 5% 11/1/17 | 2,300 | 2,561 | ||
Series 2010 A: | ||||
5% 3/1/16 | 2,000 | 2,109 | ||
5% 3/1/17 | 5,405 | 5,891 | ||
California Statewide Cmntys. Dev. Auth. Rev. Bonds: | ||||
Series 2002 C, 5%, tender 5/1/17 (d) | 4,000 | 4,389 | ||
Series 2009 E2, 5%, tender 5/1/17 (d) | 2,000 | 2,195 | ||
Contra Costa Trans. Auth. Sales Tax Rev. Bonds Series 2012 A, 0.474%, tender 12/12/15 (d) | 12,500 | 12,505 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev. Series 2013 A, 4% 6/1/21 | 3,500 | 3,975 | ||
Los Angeles County Metropolitan Trans. Auth. Sales Tax Rev. Series 2013 A: | ||||
5% 7/1/18 | 9,750 | 11,112 | ||
5% 7/1/19 | 4,400 | 5,130 | ||
Los Angeles County Pub. Works Fing. Auth. Lease Rev. Series 2010 A, 5% 8/1/17 | 5,000 | 5,511 | ||
Los Angeles Gen. Oblig. Series 2011 B, 5% 9/1/18 | 20,960 | 23,984 | ||
Los Angeles Muni. Impt. Corp. Lease Rev. Series 2012 C: | ||||
4.625% 3/1/18 | 1,500 | 1,669 | ||
5% 3/1/19 | 2,935 | 3,375 | ||
Los Angeles Unified School District Ctfs. of Prtn. (Multiple Properties Proj.) Series 2010 A: | ||||
5% 12/1/16 | 2,025 | 2,190 | ||
5% 12/1/17 | 9,790 | 10,931 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Metropolitan Wtr. District of Southern California Wtr. Rev. Bonds Series 2011 A2, 0.19%, tender 5/1/15 (d) | $ 18,000 | $ 18,000 | ||
Monterey County Pub. Impt. Corp. Ctfs. of Prtn. (Refing. Proj.) Series 2009, 5% 8/1/17 (FSA Insured) | 2,130 | 2,349 | ||
Northern California Pwr. Agcy. Rev.: | ||||
(Geothermal #3 Proj.) Series 2009 A, 5% 7/1/15 | 2,170 | 2,221 | ||
(Hydroelectric #1 Proj.) Series 2010 A: | ||||
4% 7/1/15 | 2,000 | 2,037 | ||
5% 7/1/18 | 2,000 | 2,264 | ||
Oakland Unified School District Alameda County Series 2013, 5.5% 8/1/23 | 1,000 | 1,206 | ||
Port of Oakland Rev. Series 2012 P, 5% 5/1/21 (e) | 2,500 | 2,938 | ||
Rancho Cucamonga Redev. Agcy. (Rancho Redev. Proj.): | ||||
5% 9/1/23 (FSA Insured) | 1,350 | 1,631 | ||
5% 9/1/24 (FSA Insured) | 2,300 | 2,788 | ||
Riverside County Asset Leasing Rev. (Riverside Cap. Proj.) Series 2012 A: | ||||
4% 6/1/17 | 1,750 | 1,867 | ||
5% 6/1/17 | 3,700 | 4,034 | ||
5% 6/1/18 | 6,470 | 7,225 | ||
Sacramento Muni. Util. District Elec. Rev. Series 2011 X, 5% 8/15/21 | 4,000 | 4,816 | ||
Sacramento Pwr. Auth. Cogeneration Proj. Rev. Series 2005 A, 5% 7/1/18 (AMBAC Insured) | 2,890 | 2,943 | ||
San Bernardino County Ctfs. of Prtn. (Arrowhead Proj.) Series 2009 A: | ||||
5% 8/1/16 | 5,450 | 5,752 | ||
5% 8/1/18 | 8,000 | 8,902 | ||
San Diego Cmnty. College District Series 2007, 0% 8/1/16 (FSA Insured) | 1,160 | 1,147 | ||
San Diego Pub. Facilities Fing. Auth. Swr. Rev. Series 2009 A, 5% 5/15/15 | 1,845 | 1,877 | ||
San Pablo Calif Redev. Agcy. Series 2014 A, 5% 6/15/24 (FSA Insured) | 1,380 | 1,658 | ||
Stockton Unified School District Gen. Oblig. 5% 7/1/18 (FSA Insured) | 1,035 | 1,159 | ||
| 341,404 | |||
Colorado - 0.2% | ||||
Colorado Health Facilities Auth. Rev. Bonds (Catholic Health Initiatives Proj.) Series 2008 C4, 4%, tender 11/12/15 (d) | 4,200 | 4,334 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Colorado - continued | ||||
Colorado Reg'l. Trans. District Ctfs. of Prtn. Series 2014 A, 5% 6/1/23 | $ 3,860 | $ 4,633 | ||
Univ. of Colorado Enterprise Sys. Rev. Series 2009 A, 5% 6/1/17 | 500 | 551 | ||
| 9,518 | |||
Connecticut - 2.4% | ||||
Connecticut Dev. Auth. Poll. Cont. Rev. Bonds Series 2011 A, 1.55%, tender 4/1/15 (d)(e) | 4,300 | 4,312 | ||
Connecticut Gen. Oblig.: | ||||
(Econ. Recovery Proj.) Series 2009 A: | ||||
5% 1/1/15 | 10,500 | 10,500 | ||
5% 1/1/16 | 2,700 | 2,828 | ||
Series 2012 C, 5% 6/1/21 | 23,420 | 27,870 | ||
Series 2012 D, 0.33% 9/15/15 (d) | 6,000 | 6,011 | ||
Series 2013 A: | ||||
0.18% 3/1/15 (d) | 2,800 | 2,801 | ||
0.27% 3/1/16 (d) | 1,100 | 1,102 | ||
0.38% 3/1/17 (d) | 1,400 | 1,402 | ||
Series 2014 C, 5% 12/15/16 | 16,070 | 17,456 | ||
Series 2014 D, 2% 6/15/16 | 3,400 | 3,477 | ||
Connecticut Health & Edl. Facilities Auth. Rev. Bonds (Ascension Health Cr. Group Proj.) Series 1998 B, 1.55%, tender 2/1/17 (d) | 2,860 | 2,908 | ||
Connecticut Hsg. Fin. Auth. Series 2013 B2, 4% 11/15/32 | 7,700 | 8,341 | ||
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev. Series 2011 A, 5% 12/1/18 | 5,575 | 6,376 | ||
New Haven Gen. Oblig. Series 2013 A, 5% 8/1/15 | 1,000 | 1,025 | ||
| 96,409 | |||
Delaware, New Jersey - 0.1% | ||||
Delaware River & Bay Auth. Rev. Series 2014 C: | ||||
5% 1/1/20 | 2,500 | 2,888 | ||
5% 1/1/21 | 2,000 | 2,339 | ||
| 5,227 | |||
District Of Columbia - 0.4% | ||||
District of Columbia Gen. Oblig. Series 2007 B, 5% 6/1/16 (AMBAC Insured) | 3,555 | 3,782 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
District Of Columbia - continued | ||||
District of Columbia Rev. (Medlantic/Helix Proj.) Series 1998 C, 5% 8/15/15 (FSA Insured) | $ 1,500 | $ 1,543 | ||
District of Columbia Univ. Rev. Bonds (Georgetown Univ. Proj.) Series 2001 B, 4.7%, tender 4/1/18 (d) | 8,500 | 9,308 | ||
| 14,633 | |||
Florida - 9.0% | ||||
Alachua County Health Facilities Auth. Health Facilities Rev. (Shands Teaching Hospitals & Clinics, Inc. Proj.) Series 2010 B, 5% 12/1/15 | 4,395 | 4,555 | ||
Brevard County School Board Ctfs. of Prtn. Series 2014, 5% 7/1/21 | 1,000 | 1,182 | ||
Broward County Arpt. Sys. Rev. Series 2012 Q1, 5% 10/1/21 | 1,000 | 1,193 | ||
Broward County School Board Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 7/1/15 (FSA Insured) | 5,495 | 5,620 | ||
Series 2012 A: | ||||
5% 7/1/19 | 7,000 | 8,085 | ||
5% 7/1/20 | 15,070 | 17,604 | ||
Citizens Property Ins. Corp. Series 2010 A1, 5% 6/1/15 (FSA Insured) | 14,005 | 14,277 | ||
Clay County Infrastructure Sales Surtax Rev. 5% 10/1/15 (Assured Guaranty Corp. Insured) | 7,745 | 8,019 | ||
Clearwater Wtr. and Swr. Rev. Series 2011: | ||||
4% 12/1/16 | 1,265 | 1,348 | ||
5% 12/1/17 | 1,685 | 1,877 | ||
5% 12/1/18 | 685 | 784 | ||
5% 12/1/19 | 1,820 | 2,124 | ||
5% 12/1/20 | 1,000 | 1,178 | ||
Collier County Indl. Dev. Auth. Healthcare Facilities Rev. (NCH Healthcare Sys. Proj.) Series 2011: | ||||
5% 10/1/16 | 1,530 | 1,630 | ||
5% 10/1/17 | 1,455 | 1,586 | ||
Escambia County Solid Waste Disp. Rev. Bonds (Gulf Pwr. Co. Proj.) Series 2009, 1.35%, tender 6/2/15 (d) | 1,900 | 1,907 | ||
Florida Board of Ed. Series 2005 B, 5% 1/1/18 | 21,080 | 21,291 | ||
Florida Board of Ed. Lottery Rev. Series 2011 A, 5% 7/1/20 | 8,600 | 10,081 | ||
Florida Board of Ed. Pub. Ed. Cap. Outlay: | ||||
Series 2009 C: | ||||
5% 6/1/16 | 3,000 | 3,194 | ||
5% 6/1/20 | 3,625 | 4,243 | ||
Series 2012 C, 5% 6/1/16 | 3,585 | 3,816 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Florida Dept. of Envir. Protection Rev. Series 2012 A, 5% 7/1/19 | $ 15,800 | $ 18,287 | ||
Florida Dev. Fin. Corp. Healthcare Facility Rev. (Univ. Health Proj.) Series 2013 A: | ||||
5% 2/1/17 | 700 | 742 | ||
5% 2/1/18 | 1,790 | 1,932 | ||
5% 2/1/19 | 1,450 | 1,586 | ||
5% 2/1/20 | 2,025 | 2,234 | ||
Florida Hurricane Catastrophe Fund Fin. Corp. Rev. Series 2010 A, 5% 7/1/15 (Escrowed to Maturity) | 20,010 | 20,479 | ||
Florida Muni. Pwr. Agcy. Rev. (Stanton II Proj.) Series 2012 A, 5% 10/1/18 | 2,850 | 3,227 | ||
Greater Orlando Aviation Auth. Arpt. Facilities Rev. Series 2011 C: | ||||
5% 10/1/19 | 1,705 | 1,998 | ||
5% 10/1/20 | 1,000 | 1,190 | ||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt, Inc. Prog.) Series 2009 E, 5% 11/15/15 | 2,345 | 2,442 | ||
Indian River County School Board Ctfs. of Prtn. Series 2014: | ||||
5% 7/1/20 | 935 | 1,086 | ||
5% 7/1/22 | 2,000 | 2,357 | ||
5% 7/1/23 | 2,000 | 2,368 | ||
Indian River County Wtr. & Swr. Rev.: | ||||
5% 9/1/15 | 1,000 | 1,027 | ||
5% 9/1/17 | 1,000 | 1,085 | ||
JEA Wtr. & Swr. Sys. Rev. Series 2010 D, 5% 10/1/21 | 1,945 | 2,263 | ||
Kissimmee Util. Auth. Elec. Sys. Rev. Series 2003, 5.25% 10/1/15 | 3,525 | 3,653 | ||
Manatee County Rev. Series 2013: | ||||
5% 10/1/19 | 1,250 | 1,456 | ||
5% 10/1/20 | 2,000 | 2,362 | ||
5% 10/1/21 | 2,000 | 2,394 | ||
5% 10/1/22 | 1,000 | 1,204 | ||
Miami Beach Health Facilities Auth. Hosp. Rev. (Mount Sinai Med. Ctr. of Florida Proj.) Series 2012: | ||||
5% 11/15/21 | 1,000 | 1,173 | ||
5% 11/15/22 | 485 | 572 | ||
Miami-Dade County Expressway Auth.: | ||||
(Waste Mgmt., Inc. of Florida Proj.): | ||||
Series 2013, 5% 7/1/19 | 2,000 | 2,310 | ||
5% 7/1/20 | 1,000 | 1,166 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Miami-Dade County Expressway Auth.: - continued | ||||
(Waste Mgmt., Inc. of Florida Proj.): - continued | ||||
5% 7/1/21 | $ 2,000 | $ 2,358 | ||
5% 7/1/22 | 2,000 | 2,375 | ||
5% 7/1/23 | 2,000 | 2,348 | ||
Series 2014 A, 5% 7/1/24 | 625 | 753 | ||
Series 2014 B: | ||||
5% 7/1/22 | 1,500 | 1,782 | ||
5% 7/1/23 | 3,250 | 3,884 | ||
Miami-Dade County Pub. Facilities Rev. (Jackson Health Sys. Proj.) Series 2005 B, 5% 6/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,875 | 3,942 | ||
Miami-Dade County School Board Ctfs. of Prtn.: | ||||
Series 2014 D: | ||||
5% 11/1/20 | 4,875 | 5,666 | ||
5% 11/1/21 | 6,275 | 7,351 | ||
5% 11/1/22 | 2,915 | 3,436 | ||
5% 11/1/23 | 7,650 | 9,095 | ||
Series 2015 A: | ||||
5% 5/1/19 (c) | 1,000 | 1,148 | ||
5% 5/1/20 (c) | 2,095 | 2,429 | ||
5% 5/1/21 (c) | 4,000 | 4,691 | ||
5% 5/1/22 (c) | 3,720 | 4,379 | ||
5% 5/1/23 (c) | 6,500 | 7,681 | ||
Miami-Dade County Transit Sales Surtax Rev. Series 2012, 5% 7/1/19 | 1,250 | 1,445 | ||
Orange County Health Facilities Auth.: | ||||
(Orlando Health, Inc.) Series 2009: | ||||
5% 10/1/15 | 2,210 | 2,284 | ||
5% 10/1/16 | 1,325 | 1,422 | ||
Series 2009, 5.25% 10/1/19 | 1,245 | 1,428 | ||
Orange County Health Facilities Auth. Rev. (Orlando Reg'l. Healthcare Sys. Proj.) Series 2008 A, 5% 11/1/15 (FSA Insured) | 1,825 | 1,892 | ||
Orlando & Orange County Expressway Auth. Rev.: | ||||
Series 2010 B, 5% 7/1/15 (FSA Insured) | 1,430 | 1,462 | ||
Series 2012, 5% 7/1/19 | 1,000 | 1,152 | ||
Orlando Utils. Commission Util. Sys. Rev.: | ||||
Series 2009 C, 5% 10/1/17 | 1,500 | 1,667 | ||
Series 2010 C, 5% 10/1/17 | 1,895 | 2,106 | ||
Series 2011 B: | ||||
5% 10/1/18 | 2,250 | 2,569 | ||
5% 10/1/19 | 2,325 | 2,711 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Palm Beach County Health Facilities Auth. Hosp. Rev. Series 2014: | ||||
4% 12/1/19 | $ 1,000 | $ 1,099 | ||
5% 12/1/20 | 880 | 1,014 | ||
5% 12/1/21 | 1,100 | 1,264 | ||
Palm Beach County School Board Ctfs. of Prtn.: | ||||
Series 2014 B: | ||||
4% 8/1/19 | 4,000 | 4,433 | ||
4% 8/1/21 | 4,040 | 4,511 | ||
5% 8/1/19 | 3,000 | 3,471 | ||
5% 8/1/21 | 4,000 | 4,762 | ||
Series 2015 B: | ||||
5% 8/1/19 (c) | 2,735 | 3,164 | ||
5% 8/1/20 (c) | 1,750 | 2,054 | ||
Pasco County School District Sales Tax Rev. Series 2013: | ||||
5% 10/1/18 | 1,250 | 1,419 | ||
5% 10/1/19 | 1,100 | 1,268 | ||
5% 10/1/20 | 1,000 | 1,164 | ||
5% 10/1/21 | 1,000 | 1,178 | ||
5% 10/1/22 | 1,000 | 1,190 | ||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev.: | ||||
Series 2011: | ||||
5% 10/1/17 (e) | 4,465 | 4,913 | ||
5% 10/1/19 (e) | 2,025 | 2,323 | ||
5% 10/1/18 (e) | 2,745 | 3,093 | ||
Tampa Bay Wtr. Reg'l. Wtr. Supply Auth. Util. Sys. Rev.: | ||||
Series 2011 B, 5% 10/1/18 | 4,700 | 5,375 | ||
Series 2011, 5% 10/1/19 | 5,590 | 6,531 | ||
Tampa Health Sys. Rev. (Baycare Health Sys. Proj.) Series 2010: | ||||
5% 11/15/16 | 2,500 | 2,704 | ||
5% 11/15/17 | 1,515 | 1,689 | ||
Tampa Solid Waste Sys. Rev. Series 2010: | ||||
5% 10/1/15 (FSA Insured) (e) | 2,920 | 3,019 | ||
5% 10/1/16 (FSA Insured) (e) | 6,000 | 6,435 | ||
5% 10/1/17 (FSA Insured) (e) | 5,000 | 5,494 | ||
Tampa Tax Allocation (H. Lee Moffitt Cancer Ctr. Proj.) Series 2012 A, 5% 9/1/20 | 1,800 | 2,098 | ||
Titusville Wtr. & Swr. Rev. Series 2010, 5% 10/1/17 (Assured Guaranty Corp. Insured) | 1,135 | 1,247 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Volusia County School Board Ctfs. of Prtn. (Master Lease Prog.) Series 2014 B: | ||||
5% 8/1/18 | $ 300 | $ 341 | ||
5% 8/1/19 | 310 | 359 | ||
| 357,255 | |||
Georgia - 3.0% | ||||
Atlanta Arpt. Rev.: | ||||
5% 1/1/22 | 1,000 | 1,192 | ||
5% 1/1/23 | 1,000 | 1,198 | ||
5% 1/1/24 | 1,150 | 1,386 | ||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: | ||||
(Oglethorpe Pwr. Corp. Vogtle Proj.) Series 2013 A, 2.4%, tender 4/1/20 (d) | 12,500 | 12,641 | ||
2.2%, tender 4/2/19 (d) | 9,700 | 9,818 | ||
Fulton County Wtr. & Swr. Rev. Series 2011: | ||||
5% 1/1/19 | 4,000 | 4,573 | ||
5% 1/1/20 | 4,000 | 4,664 | ||
Georgia Gen. Oblig. Series 2014 D, 5% 7/1/16 | 23,900 | 25,531 | ||
Georgia Muni. Elec. Auth. Pwr. Rev.: | ||||
(Combined Cycle Proj.) Series A, 5% 11/1/18 | 2,000 | 2,282 | ||
(Proj. One): | ||||
Series 2008 A, 5.25% 1/1/17 (Berkshire Hathaway Assurance Corp. Insured) | 7,925 | 8,627 | ||
Series 2008 D: | ||||
5.75% 1/1/19 | 14,890 | 17,307 | ||
5.75% 1/1/20 | 3,555 | 4,135 | ||
Series B, 5% 1/1/17 | 2,750 | 2,982 | ||
Series GG: | ||||
5% 1/1/16 | 680 | 711 | ||
5% 1/1/20 | 675 | 787 | ||
5% 1/1/21 | 1,670 | 1,976 | ||
Georgia Muni. Gas Auth. Rev.: | ||||
(Gas Portfolio III Proj.) Series R, 5% 10/1/21 | 5,000 | 5,821 | ||
(Gas Portfolio lll Proj.) Series 2014 U: | ||||
5% 10/1/19 | 1,500 | 1,734 | ||
5% 10/1/22 | 1,000 | 1,191 | ||
5% 10/1/23 | 2,420 | 2,907 | ||
Private Colleges & Univs. Auth. Rev. (The Savannah College of Arts and Design Projs.) Series 2014, 5% 4/1/21 | 2,000 | 2,288 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Georgia - continued | ||||
Richmond County Hosp. Auth. (Univ. Health Svcs., Inc. Proj.) Series 2009: | ||||
5% 1/1/15 | $ 1,040 | $ 1,040 | ||
5% 1/1/16 | 2,415 | 2,525 | ||
5% 1/1/18 | 1,530 | 1,624 | ||
| 118,940 | |||
Hawaii - 0.5% | ||||
Hawaii Arpts. Sys. Rev.: | ||||
Series 2010 B, 5% 7/1/15 (e) | 3,900 | 3,992 | ||
Series 2011, 5% 7/1/19 (e) | 4,000 | 4,607 | ||
Hawaii Gen. Oblig. Series DR, 5% 6/1/16 (Escrowed to Maturity) | 2,895 | 3,078 | ||
State of Hawaii Dept. of Trans. Series 2013: | ||||
5% 8/1/19 (e) | 1,400 | 1,610 | ||
5% 8/1/20 (e) | 3,050 | 3,561 | ||
5% 8/1/21 (e) | 550 | 649 | ||
5% 8/1/22 (e) | 2,075 | 2,461 | ||
5% 8/1/23 (e) | 1,435 | 1,713 | ||
| 21,671 | |||
Illinois - 8.6% | ||||
Chicago Board of Ed.: | ||||
Series 1998 B1, 0% 12/1/21 (FGIC Insured) | 10,000 | 7,727 | ||
Series 2009 D: | ||||
5% 12/1/17 (Assured Guaranty Corp. Insured) | 4,115 | 4,516 | ||
5% 12/1/18 (Assured Guaranty Corp. Insured) | 2,335 | 2,601 | ||
Chicago Gen. Oblig.: | ||||
(City Colleges Proj.) Series 1999: | ||||
0% 1/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,200 | 7,017 | ||
0% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 2,844 | ||
0% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,805 | 8,990 | ||
0% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 14,755 | 12,965 | ||
Series 2009 A, 5% 1/1/22 | 2,500 | 2,703 | ||
Series 2012 B, 5.125% 1/1/15 (Escrowed to Maturity) | 2,060 | 2,060 | ||
Series 2012 C, 5% 1/1/23 | 885 | 953 | ||
Series A, 5% 1/1/17 (FSA Insured) | 3,465 | 3,600 | ||
Series B, 5% 1/1/17 (FSA Insured) | 5,115 | 5,235 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Chicago Gen. Oblig.: - continued | ||||
4.5% 1/1/20 | $ 1,150 | $ 1,205 | ||
5% 1/1/21 | 4,875 | 5,305 | ||
5% 1/1/21 | 1,500 | 1,614 | ||
5% 1/1/23 | 1,000 | 1,086 | ||
Chicago Midway Arpt. Rev.: | ||||
Bonds Series 2010 B, 5%, tender 1/1/15 (d) | 5,000 | 5,000 | ||
Series 2014 B: | ||||
5% 1/1/20 | 625 | 723 | ||
5% 1/1/21 | 400 | 467 | ||
5% 1/1/23 | 2,500 | 2,974 | ||
5% 1/1/22 | 5,000 | 5,881 | ||
5% 1/1/23 | 5,900 | 7,018 | ||
Chicago Motor Fuel Tax Rev. Series 2013: | ||||
5% 1/1/19 | 250 | 280 | ||
5% 1/1/20 | 300 | 339 | ||
5% 1/1/21 | 400 | 454 | ||
5% 1/1/22 | 300 | 344 | ||
5% 1/1/23 | 535 | 615 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 2010 D, 5.25% 1/1/17 (e) | 1,000 | 1,085 | ||
Series 2010 E: | ||||
5% 1/1/15 (e) | 4,000 | 4,001 | ||
5% 1/1/16 (e) | 1,500 | 1,567 | ||
Series 2011 B, 5% 1/1/18 | 6,500 | 7,239 | ||
Series 2012 A, 5% 1/1/21 | 1,400 | 1,648 | ||
Series 2012 B, 5% 1/1/21 (e) | 4,605 | 5,316 | ||
Series 2013 B, 5% 1/1/22 | 4,000 | 4,747 | ||
Series 2013 D, 5% 1/1/22 | 3,220 | 3,822 | ||
Chicago Park District Gen. Oblig. Series 2014 D: | ||||
4% 1/1/17 | 1,050 | 1,113 | ||
4% 1/1/18 | 2,255 | 2,423 | ||
Chicago Sales Tax Rev. Series 1998, 5.5% 1/1/16 (FGIC Insured) (FSA Insured) | 1,710 | 1,790 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
5% 6/1/19 (Assured Guaranty Corp. Insured) | 2,085 | 2,233 | ||
5% 6/1/19 (Pre-Refunded to 12/1/16 @ 100) | 415 | 450 | ||
Chicago Wastewtr. Transmission Rev. Series 2012: | ||||
5% 1/1/19 | 1,310 | 1,486 | ||
5% 1/1/23 | 1,200 | 1,395 | ||
Cook County Gen. Oblig.: | ||||
Series 2009 C, 5% 11/15/21 | 8,575 | 9,646 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Cook County Gen. Oblig.: - continued | ||||
Series 2010 A, 5.25% 11/15/22 | $ 4,960 | $ 5,752 | ||
Series 2011 A, 5.25% 11/15/22 | 1,000 | 1,172 | ||
Series 2012 C: | ||||
5% 11/15/19 | 3,200 | 3,645 | ||
5% 11/15/20 | 7,210 | 8,288 | ||
5% 11/15/21 | 4,970 | 5,745 | ||
5% 11/15/22 | 1,250 | 1,457 | ||
Series 2014 A: | ||||
5% 11/15/20 | 1,000 | 1,150 | ||
5% 11/15/21 | 500 | 578 | ||
5% 11/15/22 | 1,000 | 1,167 | ||
Cook County Thorton Township High School District #205 5.5% 12/1/16 (Assured Guaranty Corp. Insured) | 2,500 | 2,722 | ||
Illinois Fin. Auth. Gas Supply Rev. Bonds (The Peoples Gas Lt. and Coke Co. Proj.) Series 2010 B, 2.625%, tender 8/1/15 (d) | 9,500 | 9,614 | ||
Illinois Fin. Auth. Hosp. Rev. (KishHealth Sys. Proj.) Series 2008, 5.25% 10/1/15 | 2,220 | 2,274 | ||
Illinois Fin. Auth. Rev.: | ||||
(Advocate Health Care Proj.) Series 2010 D, 5% 4/1/15 | 550 | 556 | ||
(Northwest Cmnty. Hosp. Proj.) Series 2008 A, 5% 7/1/15 | 1,000 | 1,018 | ||
(Palos Cmnty. Hosp. Proj.) Series 2010 C: | ||||
5% 5/15/16 | 2,060 | 2,173 | ||
5% 5/15/17 | 3,520 | 3,847 | ||
(Provena Health Proj.) Series 2010 A, 5.75% 5/1/19 | 2,650 | 3,082 | ||
(Rush Univ. Med. Ctr. Proj.) Series 2006 B: | ||||
5% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,075 | 3,177 | ||
5% 11/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,700 | 1,822 | ||
Series 2012 A, 5% 5/15/23 | 1,300 | 1,503 | ||
Series 2012: | ||||
5% 9/1/18 | 1,160 | 1,290 | ||
5% 9/1/19 | 1,115 | 1,258 | ||
5% 9/1/20 | 1,470 | 1,672 | ||
5% 9/1/21 | 1,645 | 1,876 | ||
5% 9/1/22 | 3,530 | 4,041 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Gen. Oblig.: | ||||
Series 2002, 5.5% 8/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,495 | $ 1,537 | ||
Series 2004, 5% 11/1/16 | 11,000 | 11,779 | ||
Series 2005, 5% 4/1/17 (AMBAC Insured) | 8,050 | 8,127 | ||
Series 2007 A, 5.5% 6/1/15 | 1,000 | 1,020 | ||
Series 2007 B, 5% 1/1/17 | 9,835 | 10,548 | ||
Series 2010: | ||||
5% 1/1/15 (FSA Insured) | 20,000 | 20,003 | ||
5% 1/1/21 (FSA Insured) | 1,600 | 1,778 | ||
Series 2012: | ||||
5% 3/1/19 | 5,500 | 6,103 | ||
5% 8/1/19 | 2,660 | 2,967 | ||
5% 8/1/20 | 6,900 | 7,780 | ||
5% 8/1/21 | 1,400 | 1,576 | ||
5% 8/1/22 | 5,800 | 6,509 | ||
Series 2013, 5% 7/1/22 | 1,265 | 1,419 | ||
Series 2014, 5% 2/1/22 | 3,000 | 3,361 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Delnor-Cmnty. Hosp. Proj.) Series 2003 A: | ||||
5% 5/15/15 (FSA Insured) | 2,250 | 2,280 | ||
5% 5/15/16 (FSA Insured) | 2,325 | 2,435 | ||
Series 2003 A, 5% 5/15/17 (FSA Insured) | 2,150 | 2,309 | ||
Illinois Sales Tax Rev.: | ||||
Series 2009 B: | ||||
4.5% 6/15/16 | 5,000 | 5,286 | ||
4.5% 6/15/17 | 6,075 | 6,611 | ||
Series 2010, 5% 6/15/15 | 8,800 | 8,989 | ||
Illinois Toll Hwy. Auth. Toll Hwy. Rev. Series 2006 A2, 5% 1/1/31 (Pre-Refunded to 7/1/16 @ 100) | 2,100 | 2,242 | ||
Lake County Cmnty. Consolidated School District #73 Gen. Oblig.: | ||||
0% 12/1/15 (Escrowed to Maturity) | 580 | 578 | ||
0% 12/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,520 | 1,510 | ||
McHenry County Conservation District Gen. Oblig.: | ||||
Series 2014: | ||||
5% 2/1/19 | 2,285 | 2,612 | ||
5% 2/1/20 | 2,275 | 2,648 | ||
Series 2014. 5% 2/1/23 | 2,225 | 2,667 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Will County Cmnty. Unit School District #365-U: | ||||
0% 11/1/16 (Escrowed to Maturity) | $ 740 | $ 733 | ||
0% 11/1/16 (FSA Insured) | 2,235 | 2,193 | ||
| 342,956 | |||
Indiana - 2.0% | ||||
Indiana Fin. Auth. Econ. Dev. Rev. Bonds (Republic Svcs., Inc. Proj.): | ||||
Series 2012, 0.4%, tender 3/2/15 (d)(e) | 3,250 | 3,250 | ||
Series A, 0.4%, tender 3/2/15 (d)(e) | 1,950 | 1,950 | ||
Indiana Fin. Auth. Hosp. Rev.: | ||||
(Parkview Health Sys. Oblig. Group Proj.) Series 2009 A, 5% 5/1/15 | 6,420 | 6,517 | ||
Series 2013: | ||||
5% 8/15/22 | 700 | 819 | ||
5% 8/15/23 | 1,000 | 1,180 | ||
Indiana Fin. Auth. Rev.: | ||||
(Trinity Health Cr. Group Proj.) Series 2009 A, 5% 12/1/15 | 2,135 | 2,228 | ||
(Wabash Valley Correctional Facilities Proj.) Series 2009 A, 5% 7/1/15 | 8,025 | 8,214 | ||
Series 2010 A, 5% 2/1/17 | 2,800 | 3,042 | ||
Series 2012: | ||||
5% 3/1/20 | 650 | 734 | ||
5% 3/1/21 | 1,225 | 1,400 | ||
Indiana Health & Edl. Facilities Fing. Auth. Rev. Bonds (Ascension Health Sr. Cr. Group Proj.) Series 2006 B1, 4.1%, tender 11/3/16 (d) | 4,000 | 4,264 | ||
Indiana Health Facility Fing. Auth. Rev. Bonds (Ascension Health Cr. Group Proj.) Series 2001 A2, 1.6%, tender 2/1/17 (d) | 2,200 | 2,235 | ||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2011 A: | ||||
5% 1/1/19 | 1,470 | 1,681 | ||
5% 1/1/20 | 1,250 | 1,456 | ||
Indiana State Fin. Auth. Wastewtr. Util. Rev. (CWA Auth. Proj.): | ||||
Series 2012 A: | ||||
5% 10/1/20 | 825 | 975 | ||
5% 10/1/22 | 1,600 | 1,921 | ||
Series 2014 A: | ||||
5% 10/1/20 | 375 | 438 | ||
5% 10/1/21 | 380 | 449 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Indiana State Fin. Auth. Wastewtr. Util. Rev. (CWA Auth. Proj.): - continued | ||||
5% 10/1/22 | $ 675 | $ 811 | ||
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.) Series F, 5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 515 | 527 | ||
Indianapolis Thermal Energy Sys. Series 2010 B: | ||||
5% 10/1/16 | 5,000 | 5,364 | ||
5% 10/1/17 | 5,000 | 5,523 | ||
Lake Central Multi-District School Bldg. Corp. Series 2012 B: | ||||
4% 1/15/19 | 1,000 | 1,098 | ||
4% 1/15/20 | 1,345 | 1,495 | ||
4% 1/15/21 | 1,250 | 1,392 | ||
5% 7/15/19 | 1,680 | 1,938 | ||
5% 7/15/20 | 1,170 | 1,374 | ||
5% 7/15/21 | 1,000 | 1,187 | ||
Purdue Univ. Rev.: | ||||
(Student Facilities Sys. Proj.) Series 2009 B: | ||||
4% 7/1/17 | 500 | 540 | ||
5% 7/1/15 | 315 | 322 | ||
5% 7/1/16 | 500 | 534 | ||
Series Z-1: | ||||
5% 7/1/16 | 1,215 | 1,297 | ||
5% 7/1/17 | 1,000 | 1,106 | ||
5% 7/1/18 | 1,500 | 1,706 | ||
Rockport Poll. Cont. Rev. Bonds (Indiana Michigan Pwr. Co. Proj. Series 2009 B, 1.75%, tender 6/1/18 (d) | 8,500 | 8,534 | ||
Univ. of Southern Indiana Rev. Series J: | ||||
5% 10/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,035 | ||
5% 10/1/16 (Assured Guaranty Corp. Insured) | 1,165 | 1,253 | ||
| 79,789 | |||
Iowa - 0.0% | ||||
Iowa Fin. Auth. Health Facilities Rev. Series 2005 A, 5% 2/15/16 (Assured Guaranty Corp. Insured) | 1,700 | 1,787 | ||
Kansas - 0.6% | ||||
Kansas Dev. Fin. Agcy. (Adventist Health Sys./Sunbelt Obligated Group Proj.) Series 2009 D: | ||||
5% 11/15/15 | 625 | 651 | ||
5% 11/15/16 | 875 | 946 | ||
Overland Park Sales Tax Spl. Oblig. Rev. Series 2012, 4.375% 12/15/23 | 3,100 | 3,141 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Kansas - continued | ||||
Wichita Hosp. Facilities Rev.: | ||||
(Via Christi Health Sys., Inc. Proj.) Series 2009 III A: | ||||
5% 11/15/15 (Escrowed to Maturity) | $ 6,245 | $ 6,501 | ||
5% 11/15/16 (Escrowed to Maturity) | 5,410 | 5,863 | ||
Series 2011 IV A: | ||||
5% 11/15/18 (Escrowed to Maturity) | 2,250 | 2,584 | ||
5% 11/15/20 (Escrowed to Maturity) | 2,745 | 3,282 | ||
| 22,968 | |||
Kentucky - 0.9% | ||||
Ashland Med. Ctr. Rev. (Ashland Hosp. Corp. d/b/a King's Daughters Med. Ctr. Proj.) Series 2010 B, 4% 2/1/15 | 1,495 | 1,499 | ||
Kentucky Econ. Dev. Fin. Auth. Bonds Series 2009 B, 2.7%, tender 11/10/21 (d) | 9,000 | 9,002 | ||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev. (Baptist Healthcare Sys. Proj.) Series A, 5% 8/15/15 | 4,000 | 4,105 | ||
Kentucky State Property & Buildings Commission Rev. (#82 Proj.) 5.25% 10/1/17 (FSA Insured) | 2,450 | 2,743 | ||
Louisville/Jefferson County Metropolitan Govt. Poll. Cont. Rev. Bonds (Louisville Gas and Elec. Co. Proj.): | ||||
Series 2003 A, 1.65%, tender 4/3/17 (d) | 6,000 | 6,086 | ||
Series 2007 B: | ||||
1.15%, tender 6/1/17 (d) | 2,600 | 2,590 | ||
1.6%, tender 6/1/17 (d) | 8,000 | 8,053 | ||
| 34,078 | |||
Louisiana - 1.1% | ||||
Louisiana Gas & Fuel Tax Rev. Bonds Series 2013 B, 0.579%, tender 5/1/17 (d) | 25,000 | 25,156 | ||
Louisiana Pub. Facilities Auth. Rev.: | ||||
(Christus Health Proj.) Series 2009 A, 5% 7/1/16 | 2,000 | 2,129 | ||
(Entergy Gulf States Louisiana LLC Proj.) Series 2010 B, 2.875% 11/1/15 | 3,000 | 3,058 | ||
Louisiana Stadium and Exposition District Series 2013 A: | ||||
5% 7/1/21 | 1,500 | 1,771 | ||
5% 7/1/22 | 1,000 | 1,192 | ||
New Orleans Gen. Oblig. Series 2012, 5% 12/1/20 | 2,800 | 3,195 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Louisiana - continued | ||||
Reg'l. Transit Auth. Louisiana Sales Tax Rev. 4% 12/1/16 (FSA Insured) | $ 1,000 | $ 1,056 | ||
Tobacco Settlement Fing. Corp. Series 2013 A, 5% 5/15/23 | 4,500 | 5,295 | ||
| 42,852 | |||
Maryland - 1.6% | ||||
Maryland Gen. Oblig.: | ||||
Series 2008 2, 5% 7/15/22 (Pre-Refunded to 7/15/18 @ 100) | 5,500 | 6,268 | ||
Series 2012 B, 5% 8/1/16 | 6,400 | 6,859 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev. Bonds: | ||||
(Johns Hopkins Health Sys. Obligated Group Proj.) Series 2008 B, 5%, tender 5/15/15 (d) | 2,225 | 2,264 | ||
Series 2012 D, 0.9339%, tender 11/15/17 (d) | 14,000 | 14,137 | ||
Series 2013 A: | ||||
0.684%, tender 5/15/18 (d) | 4,800 | 4,832 | ||
0.705%, tender 5/15/18 (d) | 7,100 | 7,152 | ||
Montgomery County Gen. Oblig.: | ||||
(Dept. of Liquor Cont. Proj.) Series 2009 A, 5% 4/1/15 | 1,725 | 1,745 | ||
Series 2011 A, 5% 7/1/20 | 16,000 | 18,671 | ||
| 61,928 | |||
Massachusetts - 1.7% | ||||
Braintree Gen. Oblig. Series 2009, 5% 5/15/16 | 4,400 | 4,677 | ||
Massachusetts Bay Trans. Auth. Sales Tax Rev. Series 2006 B, 5.25% 7/1/18 | 2,300 | 2,630 | ||
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev. Series 2010 B, 5% 1/1/15 | 12,400 | 12,402 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
(Boston College Proj.): | ||||
Series Q1: | ||||
4% 7/1/15 | 1,500 | 1,528 | ||
4% 7/1/16 | 1,000 | 1,053 | ||
Series Q2: | ||||
4% 7/1/15 | 1,170 | 1,192 | ||
4% 7/1/16 | 1,000 | 1,053 | ||
5% 7/1/17 | 1,370 | 1,513 | ||
(Tufts Med. Ctr. Proj.) Series I, 5% 1/1/16 | 1,300 | 1,352 | ||
Bonds Series 2013 U-6E, 0.59%, tender 9/30/16 (d) | 5,900 | 5,912 | ||
4.5% 11/15/18 (b) | 5,500 | 5,514 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Massachusetts - continued | ||||
Massachusetts Edl. Fing. Auth. Rev. Series 2013, 5% 7/1/19 (e) | $ 4,725 | $ 5,256 | ||
Massachusetts Gen. Oblig.: | ||||
Series 2004 B, 5.25% 8/1/20 | 12,700 | 15,183 | ||
Series 2006 D, 5% 8/1/22 (Pre-Refunded to 8/1/16 @ 100) | 4,500 | 4,822 | ||
Medford Gen. Oblig. Series 2011 B, 4% 3/1/19 | 3,570 | 3,892 | ||
| 67,979 | |||
Michigan - 3.5% | ||||
Detroit School District Series 2012 A: | ||||
5% 5/1/19 | 2,000 | 2,255 | ||
5% 5/1/20 | 2,000 | 2,286 | ||
5% 5/1/21 | 1,810 | 2,095 | ||
Detroit Swr. Disp. Rev. Series 2006 D, 0.757% 7/1/32 (d) | 4,070 | 3,432 | ||
Grand Blanc Cmnty. Schools Series 2013: | ||||
5% 5/1/19 | 1,225 | 1,396 | ||
5% 5/1/20 | 2,635 | 3,059 | ||
5% 5/1/21 | 2,150 | 2,527 | ||
5% 5/1/22 | 1,850 | 2,178 | ||
Grand Valley Michigan State Univ. Rev. Series 2009, 5% 12/1/16 | 1,320 | 1,428 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. (Spectrum Health Sys. Proj.) Series 2011 A: | ||||
5% 11/15/18 | 1,250 | 1,415 | ||
5% 11/15/19 | 1,000 | 1,147 | ||
Michigan Fin. Auth. Rev.: | ||||
Series 2008 B2, 5% 6/1/15 | 1,090 | 1,107 | ||
Series 2012 A: | ||||
5% 6/1/16 | 2,290 | 2,412 | ||
5% 6/1/17 | 1,410 | 1,532 | ||
5% 6/1/18 | 2,430 | 2,701 | ||
Michigan Hosp. Fin. Auth. Rev. Bonds: | ||||
Series 1999 B3, 0.3%, tender 11/15/33 | 25,000 | 24,997 | ||
Series 2005 A4, 1.625%, tender 11/1/19 (d) | 9,215 | 9,213 | ||
Series 2010 F3, 1.4%, tender 6/29/18 (d) | 1,900 | 1,913 | ||
Series 2010 F4, 1.95%, tender 4/1/20 (d) | 6,545 | 6,577 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Clean Wtr. Pooled Proj.) Series 2010: | ||||
5% 10/1/15 | 1,750 | 1,812 | ||
5% 10/1/15 | 3,250 | 3,366 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Michigan Muni. Bond Auth. Rev.: - continued | ||||
(Local Govt. Ln. Prog.) Series 2009 C: | ||||
5% 5/1/15 | $ 1,845 | $ 1,872 | ||
5% 5/1/16 | 1,865 | 1,958 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev.: | ||||
(William Beaumont Hosp. Oblig. Group Proj.) Series 2009 W, 5% 8/1/15 | 2,070 | 2,126 | ||
Series 2014 D: | ||||
5% 9/1/21 | 1,500 | 1,754 | ||
5% 9/1/23 | 500 | 593 | ||
Spring Lake Pub. Schools: | ||||
Series 2014, 5% 5/1/19 | 2,300 | 2,636 | ||
5% 11/1/19 | 2,775 | 3,209 | ||
5% 5/1/20 | 3,630 | 4,231 | ||
5% 11/1/20 | 1,745 | 2,060 | ||
5% 5/1/21 | 4,110 | 4,846 | ||
Univ. of Michigan Rev. Bonds 0.24%, tender 4/1/15 (d) | 30,870 | 30,872 | ||
West Bloomfield School District 5% 5/1/15 (Assured Guaranty Corp. Insured) | 1,400 | 1,421 | ||
Western Michigan Univ. Rev. 5.25% 11/15/15 (Assured Guaranty Corp. Insured) | 3,275 | 3,414 | ||
| 139,840 | |||
Minnesota - 0.4% | ||||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 2014 A: | ||||
5% 1/1/22 | 1,000 | 1,198 | ||
5% 1/1/23 | 1,000 | 1,210 | ||
Series 2014 B: | ||||
5% 1/1/21 (e) | 2,290 | 2,672 | ||
5% 1/1/22 (e) | 2,000 | 2,354 | ||
5% 1/1/23 (e) | 1,000 | 1,182 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Essentia Health Obligated Group Proj.) Series 2008 C1: | ||||
5% 2/15/15 (Assured Guaranty Corp. Insured) | 1,335 | 1,341 | ||
5% 2/15/16 (Assured Guaranty Corp. Insured) | 565 | 590 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev. Series 2009 A, 5% 1/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,000 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2009 A, 5% 1/1/16 | 1,000 | 1,046 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Minnesota - continued | ||||
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev. Series 2014 A: | ||||
5% 1/1/22 | $ 1,000 | $ 1,200 | ||
5% 1/1/23 | 1,500 | 1,816 | ||
5% 1/1/24 | 1,000 | 1,224 | ||
| 16,833 | |||
Mississippi - 0.5% | ||||
Mississippi Bus. Fin. Corp. Rev. Bonds (Pwr. Co. Proj.) Series 2010, 1.625%, tender 1/12/18 (d) | 12,400 | 12,496 | ||
Mississippi Gen. Oblig. (Cap. Impts. Proj.) Series 2012 D, 0.57% 9/1/17 (d) | 3,295 | 3,312 | ||
Mississippi Hsg. Fin. Corp. Single Family Mtg. Rev. Series 1983, 0% 6/1/15 (Escrowed to Maturity) | 4,000 | 3,996 | ||
| 19,804 | |||
Missouri - 0.0% | ||||
Saint Louis Arpt. Rev. Series 2013, 5% 7/1/18 | 765 | 861 | ||
Nebraska - 0.2% | ||||
Nebraska Pub. Pwr. District Rev.: | ||||
Series 2012 C, 5% 1/1/22 (Pre-Refunded to 1/1/18 @ 100) | 1,100 | 1,233 | ||
Series C: | ||||
4% 1/1/15 | 2,360 | 2,360 | ||
4% 1/1/16 | 2,195 | 2,274 | ||
| 5,867 | |||
Nevada - 2.7% | ||||
Clark County Arpt. Rev.: | ||||
Series 2008 E, 5% 7/1/15 | 3,500 | 3,581 | ||
Series 2013 C1, 2.5% 7/1/15 (e) | 12,400 | 12,529 | ||
Clark County School District: | ||||
Series 2005 A, 5% 6/15/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 21,215 | 21,858 | ||
Series 2012 A, 5% 6/15/19 | 24,610 | 28,355 | ||
Series 2014 A, 5.5% 6/15/16 | 2,700 | 2,895 | ||
Nevada Gen. Oblig.: | ||||
Series 2010 C, 5% 6/1/19 | 12,140 | 14,022 | ||
Series 2012 B, 5% 8/1/20 | 2,230 | 2,635 | ||
Series 2013 D1: | ||||
5% 3/1/22 | 11,250 | 13,538 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nevada - continued | ||||
Nevada Gen. Oblig.: - continued | ||||
5% 3/1/23 | $ 4,500 | $ 5,458 | ||
5% 3/1/24 | 2,700 | 3,228 | ||
| 108,099 | |||
New Hampshire - 0.3% | ||||
New Hampshire Health & Ed. Facilities Auth. Rev. Series 2012: | ||||
4% 7/1/20 | 2,705 | 2,856 | ||
4% 7/1/21 | 1,520 | 1,606 | ||
New Hampshire Tpk. Sys. Rev. Series 2012 B: | ||||
5% 2/1/17 | 3,000 | 3,258 | ||
5% 2/1/18 | 2,500 | 2,786 | ||
| 10,506 | |||
New Jersey - 6.2% | ||||
Camden County Impt. Auth. Health Care Redev. Rev. Series 2014 A: | ||||
5% 2/15/20 | 3,000 | 3,446 | ||
5% 2/15/21 | 2,500 | 2,900 | ||
5% 2/15/22 | 2,500 | 2,917 | ||
5% 2/15/23 | 2,750 | 3,221 | ||
New Jersey Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 6/15/15 | 750 | 765 | ||
Series 2009 A: | ||||
5% 6/15/15 | 11,285 | 11,513 | ||
5% 6/15/16 | 6,500 | 6,894 | ||
New Jersey Econ. Dev. Auth. Rev.: | ||||
Series 2005 K, 5.5% 12/15/19 | 8,030 | 9,301 | ||
Series 2005 O, 5% 3/1/20 (Pre-Refunded to 3/1/15 @ 100) | 6,350 | 6,397 | ||
Series 2008 W, 5% 3/1/15 (Escrowed to Maturity) | 10,400 | 10,477 | ||
Series 2009 BB, 5% 9/1/15 (Escrowed to Maturity) | 3,390 | 3,497 | ||
Series 2011 EE, 5% 9/1/20 | 5,000 | 5,689 | ||
Series 2012 II, 5% 3/1/21 | 6,800 | 7,722 | ||
Series 2012, 5% 6/15/18 | 10,600 | 11,863 | ||
Series 2013 NN, 5% 3/1/19 | 8,165 | 9,143 | ||
Series 2014 PP, 5% 6/15/19 | 17,000 | 19,126 | ||
New Jersey Edl. Facility Series 2014: | ||||
5% 6/15/20 | 11,000 | 12,355 | ||
5% 6/15/21 | 11,000 | 12,431 | ||
New Jersey Gen. Oblig. Series O, 5.25% 8/1/22 | 3,930 | 4,731 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New Jersey - continued | ||||
New Jersey Higher Ed. Student Assistance Auth. Student Ln. Rev.: | ||||
Series 2010 1A, 5% 12/1/15 | $ 4,500 | $ 4,683 | ||
Series 2013: | ||||
5% 12/1/18 (e) | 6,000 | 6,684 | ||
5% 12/1/19 (e) | 3,850 | 4,301 | ||
New Jersey Tpk. Auth. Tpk. Rev.: | ||||
Bonds Series 2013 D, 0.57%, tender 1/1/16 (d) | 5,000 | 5,008 | ||
Series 1991 C, 6.5% 1/1/16 (Escrowed to Maturity) | 1,500 | 1,518 | ||
Series 2013 A, 5% 1/1/24 | 4,345 | 5,144 | ||
Series 2013 C, 0.52% 1/1/17 (d) | 16,000 | 16,072 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series 2003 A, 5.5% 12/15/16 (FSA Insured) | 5,000 | 5,448 | ||
Series 2003 B, 5.25% 12/15/19 | 3,870 | 4,445 | ||
Series 2003 B. 5.25% 12/15/19 | 5,500 | 6,317 | ||
Series 2012 AA, 5% 6/15/19 | 1,500 | 1,692 | ||
Series 2013 A: | ||||
5% 12/15/19 | 6,455 | 7,339 | ||
5% 6/15/20 | 18,000 | 20,462 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series 2014 A: | ||||
5% 9/15/15 | 5,250 | 5,417 | ||
5% 9/15/21 | 4,900 | 5,670 | ||
| 244,588 | |||
New Mexico - 1.2% | ||||
Farmington Poll. Cont. Rev. Bonds (Southern California Edison Co. Four Corners Proj.) Series 2005 B, 2.875%, tender 4/1/15 (d) | 22,325 | 22,448 | ||
New Mexico Edl. Assistance Foundation: | ||||
Series 2009 B, 4% 9/1/16 | 7,000 | 7,391 | ||
Series 2010 A1: | ||||
4% 12/1/15 | 3,700 | 3,823 | ||
4% 12/1/16 | 6,750 | 7,185 | ||
Rio Rancho Wtr. & Wastewtr. Sys. Rev. Series 2009, 5% 5/15/17 (FSA Insured) | 4,480 | 4,868 | ||
| 45,715 | |||
New York - 9.9% | ||||
Dutchess County Local Dev. Corp. Rev. (Health Quest Systems, Inc. Proj.) Series 2010 A: | ||||
5% 7/1/18 (Assured Guaranty Corp. Insured) (FSA Insured) | 1,100 | 1,218 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
Dutchess County Local Dev. Corp. Rev. (Health Quest Systems, Inc. Proj.) Series 2010 A: - continued | ||||
5% 7/1/19 (Assured Guaranty Corp. Insured) (FSA Insured) | $ 640 | $ 717 | ||
Metropolitan Trans. Auth. Svc. Contract Rev. Series 2002 A, 5.5% 7/1/17 | 5,000 | 5,572 | ||
New York City Gen. Oblig.: | ||||
Series 2005 F1, 5% 9/1/15 | 3,560 | 3,673 | ||
Series 2014 J, 3% 8/1/16 | 5,600 | 5,817 | ||
Series 2014 K, 3% 8/1/16 | 3,900 | 4,051 | ||
Series J8, 0.42% 8/1/21 (d) | 7,500 | 7,501 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 B, 5% 2/1/20 | 3,000 | 3,509 | ||
Series 2010 B: | ||||
5% 11/1/17 | 11,740 | 13,087 | ||
5% 11/1/17 (Escrowed to Maturity) | 18,260 | 20,377 | ||
5% 11/1/20 | 5,950 | 6,930 | ||
Series 2010 D: | ||||
5% 11/1/15 (Escrowed to Maturity) | 890 | 925 | ||
5% 11/1/17 | 8,015 | 8,935 | ||
5% 11/1/17 (Escrowed to Maturity) | 2,100 | 2,350 | ||
Series 2012 A: | ||||
5% 11/1/17 | 6,180 | 6,889 | ||
5% 11/1/17 (Escrowed to Maturity) | 820 | 918 | ||
5% 11/1/20 | 4,500 | 5,330 | ||
New York Dorm. Auth. Mental Health Svcs. Facilities Impt. Rev.: | ||||
(State Univ. Proj.) Series 2012 A, 5% 5/15/20 | 4,000 | 4,691 | ||
Series 2012 A, 4% 5/15/20 | 8,000 | 8,973 | ||
New York Dorm. Auth. Personal Income Tax Rev.: | ||||
(Ed. Proj.) Series 2009 A, 5% 3/15/15 | 4,000 | 4,039 | ||
Series 2009 D, 5% 6/15/15 | 16,075 | 16,420 | ||
Series 2012 A, 5% 12/15/20 | 8,500 | 10,095 | ||
Series A: | ||||
5% 2/15/15 | 8,775 | 8,825 | ||
5% 2/15/15 (Escrowed to Maturity) | 5 | 5 | ||
New York Dorm. Auth. Revs.: | ||||
(Mental Health Svcs. Facilities Proj.) Series 2009 A1, 5% 2/15/15 | 9,000 | 9,052 | ||
Series 2008 B, 5% 7/1/15 | 30,000 | 30,702 | ||
Series 2008 D, 5.25% 8/15/17 (FSA Insured) | 7,000 | 7,775 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Dorm. Auth. Revs.: - continued | ||||
Series 2009 A: | ||||
5% 7/1/15 | $ 12,850 | $ 13,145 | ||
5% 7/1/16 | 8,390 | 8,959 | ||
New York Local Govt. Assistance Corp. Series 2003 A, 5% 4/1/18 | 12,400 | 13,980 | ||
New York Metropolitan Trans. Auth. Dedicated Tax Fund Rev. Series B, 5% 11/15/15 | 2,325 | 2,421 | ||
New York Metropolitan Trans. Auth. Rev.: | ||||
Bonds Series 2012 G2, 0.634%, tender 11/1/15 (d) | 13,300 | 13,315 | ||
Series 2003 B, 5.25% 11/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,200 | 6,089 | ||
Series 2008 B2: | ||||
5% 11/15/19 | 6,185 | 7,170 | ||
5% 11/15/20 | 5,500 | 6,478 | ||
5% 11/15/21 | 4,000 | 4,765 | ||
Series 2012 B, 5% 11/15/22 | 2,000 | 2,392 | ||
Series 2012 D, 5% 11/15/18 | 2,515 | 2,872 | ||
Series 2012 E: | ||||
4% 11/15/19 | 4,000 | 4,451 | ||
5% 11/15/21 | 2,435 | 2,901 | ||
Series 2012 F, 5% 11/15/19 | 5,000 | 5,797 | ||
New York Thruway Auth. Gen. Rev. Series 2013 A, 5% 5/1/19 | 20,400 | 23,347 | ||
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund: | ||||
Series 2010 A, 5% 4/1/17 | 1,000 | 1,094 | ||
Series 2011 A1: | ||||
5% 4/1/17 | 1,500 | 1,641 | ||
5% 4/1/18 | 3,500 | 3,936 | ||
New York Urban Dev. Corp. Rev.: | ||||
Series 2009 C, 5% 12/15/16 | 17,000 | 18,476 | ||
Series 2011 A, 5% 3/15/21 | 18,425 | 21,996 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2011, 5% 6/1/16 | 20,000 | 21,294 | ||
Series 2013 B, 5% 6/1/21 | 3,400 | 3,601 | ||
Triborough Bridge & Tunnel Auth. Revs. Series Y, 5.5% 1/1/17 (Escrowed to Maturity) | 3,830 | 4,044 | ||
| 392,540 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
North Carolina - 2.1% | ||||
Dare County Ctfs. of Prtn. Series 2012 B: | ||||
4% 6/1/17 | $ 1,000 | $ 1,073 | ||
4% 6/1/18 | 1,280 | 1,399 | ||
4% 6/1/20 | 1,000 | 1,118 | ||
5% 6/1/19 | 1,305 | 1,500 | ||
Mecklenburg County Pub. Facilities Corp. Series 2009: | ||||
5% 3/1/16 | 5,870 | 6,190 | ||
5% 3/1/18 | 1,500 | 1,683 | ||
Nash Health Care Sys. Health Care Facilities Rev. Series 2003, 5% 11/1/15 (FSA Insured) | 1,600 | 1,642 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev. Series 2010 A: | ||||
5% 1/1/15 | 4,000 | 4,001 | ||
5% 1/1/16 | 6,035 | 6,304 | ||
North Carolina Gen. Oblig. Series 2014 A, 5% 6/1/16 | 8,095 | 8,619 | ||
North Carolina Grant Anticipation Rev. Series 2009, 5% 3/1/15 | 1,250 | 1,260 | ||
North Carolina Med. Care Commission Hosp. Rev. (North Carolina Baptist Hosp. Proj.) Series 2010: | ||||
5% 6/1/15 | 1,500 | 1,528 | ||
5% 6/1/16 | 1,000 | 1,060 | ||
5% 6/1/17 | 3,220 | 3,521 | ||
5% 6/1/18 | 3,820 | 4,274 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | ||||
Series 1998 A, 5.5% 1/1/15 | 3,675 | 3,676 | ||
Series 2008 A, 5.25% 1/1/20 | 2,000 | 2,247 | ||
Series 2012 A, 5% 1/1/18 | 18,705 | 20,860 | ||
Univ. of North Carolina at Chapel Hill Rev. Bonds Series 2012 A, 0.5539%, tender 12/1/15 (d) | 11,500 | 11,507 | ||
| 83,462 | |||
North Dakota - 0.0% | ||||
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.) Series 2005, 5% 12/1/15 (Assured Guaranty Corp. Insured) | 1,825 | 1,887 | ||
Ohio - 3.6% | ||||
American Muni. Pwr., Inc. Rev. Bonds Series B, 5%, tender 8/15/20 (c)(d) | 35,000 | 40,129 | ||
Buckeye Tobacco Settlement Fing. Auth. Series 2007 A1: | ||||
5% 6/1/16 | 3,035 | 3,210 | ||
5% 6/1/17 | 3,500 | 3,817 | ||
Cincinnati City School District 5.25% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,555 | 4,070 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Ohio - continued | ||||
Columbus City School District (School Facilities Construction and Impt. Proj.) Series 2009 B, 4% 12/1/16 | $ 1,000 | $ 1,066 | ||
Fairfield County Hosp. Facilities Rev. (Fairfield Med. Ctr. Proj.) Series 2013: | ||||
5% 6/15/22 | 2,145 | 2,438 | ||
5% 6/15/23 | 1,855 | 2,114 | ||
Hamilton County Convention Facilities Auth. Rev. Series 2014: | ||||
5% 12/1/19 | 1,910 | 2,187 | ||
5% 12/1/20 | 2,205 | 2,554 | ||
5% 12/1/21 | 2,045 | 2,380 | ||
Hamilton County Student Hsg. Rev. (Stratford Heights Proj.) Series 2010: | ||||
5% 6/1/15 (FSA Insured) | 760 | 774 | ||
5% 6/1/16 (FSA Insured) | 1,105 | 1,172 | ||
5% 6/1/17 (FSA Insured) | 1,160 | 1,233 | ||
Ohio Air Quality Dev. Auth. Rev.: | ||||
Bonds (First Energy Nuclear Generation Proj.) Series 2006 A, 3.75%, tender 12/3/18 (d) | 13,300 | 14,052 | ||
Series 2009 C, 5.625% 6/1/18 | 1,395 | 1,553 | ||
Ohio Bldg. Auth.: | ||||
(Administrative Bldg. Fund Proj.): | ||||
Series 2009 B, 5% 10/1/15 | 6,505 | 6,736 | ||
Series 2010 C: | ||||
4% 10/1/15 | 3,200 | 3,290 | ||
5% 10/1/16 | 1,250 | 1,347 | ||
(Adult Correctional Bldg. Fund Proj.): | ||||
Series 2009 B, 5% 10/1/15 | 4,535 | 4,696 | ||
Series 2010 A, 5% 10/1/15 | 1,185 | 1,227 | ||
Ohio Gen. Oblig.: | ||||
(Common Schools Proj.) Series 2010 A, 5% 9/15/17 | 2,600 | 2,889 | ||
(Higher Ed. Proj.) Series 2010 A, 5% 8/1/17 | 3,290 | 3,642 | ||
Series 2011 A, 5% 8/1/17 | 3,070 | 3,398 | ||
Series 2012 C, 5% 9/15/21 | 4,350 | 5,236 | ||
Series 2013 B, 4% 6/15/16 | 2,200 | 2,313 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Cleveland Clinic Foundation Proj.) Series 2008 A, 5% 1/1/15 | 2,000 | 2,000 | ||
(Univ. Hosp. Health Sys. Proj.) Series 2010 A: | ||||
5% 1/15/15 | 500 | 501 | ||
5% 1/15/17 | 1,000 | 1,082 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Ohio - continued | ||||
Ohio Higher Edl. Facility Commission Rev.: - continued | ||||
Series 2013 A2, 0.24% 1/1/15 (d) | $ 1,430 | $ 1,430 | ||
Ohio State Univ. Gen. Receipts Series 2010 A: | ||||
5% 12/1/16 | 4,720 | 5,120 | ||
5% 12/1/16 (Escrowed to Maturity) | 280 | 304 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds: | ||||
(FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (d) | 10,225 | 10,867 | ||
(FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 B, 3.375%, tender 7/1/15 (d) | 5,000 | 5,063 | ||
| 143,890 | |||
Oklahoma - 0.3% | ||||
Oklahoma Dev. Fin. Auth. Rev.: | ||||
(Saint John Health Sys. Proj.) Series 2012, 5% 2/15/23 | 2,600 | 3,036 | ||
Series 2004 A, 2.375% 12/1/21 | 1,350 | 1,374 | ||
Series 2012, 5% 2/15/21 | 1,600 | 1,868 | ||
Tulsa County Indl. Auth. Edl. Facilities Lease Rev. (Jenks Pub. Schools Proj.) Series 2009, 5.5% 9/1/18 | 5,215 | 5,988 | ||
| 12,266 | |||
Oregon - 0.1% | ||||
Oregon Facilities Auth. Rev. (Legacy Health Sys. Proj.) Series 2009 A: | ||||
5% 3/15/15 | 2,500 | 2,523 | ||
5% 3/15/16 | 1,750 | 1,843 | ||
| 4,366 | |||
Pennsylvania - 5.1% | ||||
Allegheny County Arpt. Auth. Rev. Series A: | ||||
5% 1/1/15 (FSA Insured) (e) | 1,000 | 1,000 | ||
5% 1/1/16 (FSA Insured) (e) | 1,000 | 1,045 | ||
Allegheny County Hosp. Dev. Auth. Rev. (Univ. of Pittsburgh Med. Ctr. Proj.) Series 2009 A, 4% 8/15/15 | 1,385 | 1,417 | ||
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.): | ||||
Series 2005 A, 3.375%, tender 7/1/15 (d) | 2,000 | 2,025 | ||
Series 2006 A, 3.5%, tender 6/1/20 (d) | 5,250 | 5,406 | ||
Series 2006 B, 3.5%, tender 6/1/20 (d) | 6,000 | 6,179 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Econ. Dev. Fin. Auth. Unemployment Compensation Rev. Series 2012 B: | ||||
5% 1/1/22 | $ 5,000 | $ 5,512 | ||
5% 7/1/22 | 5,200 | 5,543 | ||
5% 1/1/23 | 3,000 | 3,137 | ||
5% 7/1/23 | 1,650 | 1,689 | ||
Franklin County Indl. Dev. Auth. (The Chambersburg Hosp. Proj.) Series 2010: | ||||
5% 7/1/16 | 1,000 | 1,064 | ||
5% 7/1/17 | 1,255 | 1,376 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series 2009 A, 5% 6/1/17 | 2,200 | 2,401 | ||
Montgomery County Higher Ed. & Health Auth. Rev. Series 2014 A: | ||||
4% 10/1/18 | 1,000 | 1,082 | ||
4% 10/1/19 | 660 | 717 | ||
5% 10/1/20 | 1,260 | 1,431 | ||
Pennsylvania Econ. Dev. Auth. Governmental Lease (Forum Place Proj.) Series 2012: | ||||
5% 3/1/18 | 2,455 | 2,707 | ||
5% 3/1/19 | 2,310 | 2,589 | ||
5% 3/1/20 | 2,140 | 2,434 | ||
Pennsylvania Gen. Oblig.: | ||||
Series 2006 1, 5% 10/1/19 (Pre-Refunded to 10/1/16 @ 100) | 7,000 | 7,554 | ||
Series 2010 A3, 5% 7/15/16 | 3,900 | 4,170 | ||
Series 2011, 5% 7/1/21 | 1,900 | 2,264 | ||
Series 2013 1, 5% 4/1/16 | 2,655 | 2,807 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev. Series 2014: | ||||
5% 12/1/19 | 340 | 396 | ||
5% 12/1/21 | 275 | 327 | ||
5% 12/1/22 | 855 | 1,030 | ||
Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev. (City of Philadelphia Fdg. Prog.) Series 2009, 5% 6/15/15 | 10,600 | 10,828 | ||
Pennsylvania Tpk. Commission Tpk. Rev.: | ||||
Series 2009 B, 5% 12/1/17 | 12,500 | 13,942 | ||
Series 2013 A, 0.64% 12/1/17 (d) | 6,400 | 6,437 | ||
Philadelphia Gas Works Rev.: | ||||
(1998 Gen. Ordinance Proj.) Eighth Series A, 5% 8/1/15 | 2,100 | 2,146 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Philadelphia Gas Works Rev.: - continued | ||||
Eighth Series A, 5% 8/1/16 | $ 1,000 | $ 1,067 | ||
Seventeenth Series: | ||||
5.375% 7/1/15 (FSA Insured) | 2,000 | 2,044 | ||
5.375% 7/1/16 (FSA Insured) | 2,300 | 2,437 | ||
Philadelphia Gen. Oblig.: | ||||
Series 2008 A: | ||||
5% 12/15/15 (FSA Insured) | 5,000 | 5,217 | ||
5% 12/15/16 (FSA Insured) | 7,275 | 7,871 | ||
Series 2011: | ||||
5.25% 8/1/17 | 6,165 | 6,800 | ||
5.25% 8/1/18 | 5,515 | 6,237 | ||
Philadelphia Muni. Auth. Rev. Series 2013 A: | ||||
5% 11/15/17 | 6,635 | 7,339 | ||
5% 11/15/18 | 3,430 | 3,877 | ||
Philadelphia School District Series 2010 C, 5% 9/1/16 | 13,610 | 14,565 | ||
Philadelphia Wtr. & Wastewtr. Rev. Series 2010 A: | ||||
5% 6/15/15 | 15,000 | 15,314 | ||
5% 6/15/16 | 6,000 | 6,390 | ||
Pittsburgh & Allegheny County Sports & Exhibition Auth. Series 2010: | ||||
5% 2/1/15 (FSA Insured) | 4,580 | 4,597 | ||
5% 2/1/16 (FSA Insured) | 5,620 | 5,891 | ||
Pittsburgh School District Series 2010 A: | ||||
4% 9/1/15 | 1,405 | 1,439 | ||
4% 9/1/15 (Escrowed to Maturity) | 45 | 46 | ||
5% 9/1/16 (FSA Insured) | 1,685 | 1,807 | ||
Saint Mary Hosp. Auth. Health Sys. Rev. (Catholic Health East Proj.) Series 2010 B, 5% 11/15/15 | 2,420 | 2,520 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2011: | ||||
5% 6/1/18 | 1,000 | 1,119 | ||
5% 6/1/19 | 200 | 228 | ||
State Pub. School Bldg. Auth. Lease Rev. (Philadelphia School District Proj.) Series 2012: | ||||
5% 4/1/19 | 1,305 | 1,453 | ||
5% 4/1/20 | 1,250 | 1,410 | ||
5% 4/1/21 | 1,000 | 1,140 | ||
Unionville-Chadds Ford School District Gen. Oblig. Series 2009, 5% 6/1/20 | 1,190 | 1,374 | ||
| 202,837 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Rhode Island - 0.3% | ||||
Rhode Island Econ. Dev. Corp. Rev. (Dept. of Trans. Proj.) Series 2009 A: | ||||
5% 6/15/15 (Assured Guaranty Corp. Insured) | $ 2,010 | $ 2,049 | ||
5% 6/15/16 (Assured Guaranty Corp. Insured) | 6,625 | 7,017 | ||
Rhode Island Health & Edl. Bldg. Corp. Higher Ed. Facilities Rev. Series 2013 A: | ||||
5% 5/15/18 | 1,000 | 1,099 | ||
5% 5/15/19 | 1,500 | 1,670 | ||
| 11,835 | |||
South Carolina - 0.6% | ||||
Lexington County Health Svcs. District, Inc. Hosp. Rev. Series 2011, 5% 11/1/19 | 1,190 | 1,358 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2012 B: | ||||
5% 12/1/17 | 2,000 | 2,232 | ||
5% 12/1/20 | 1,000 | 1,177 | ||
Series 2012 C, 5% 12/1/17 | 10,535 | 11,757 | ||
Series 2014 C: | ||||
5% 12/1/22 | 1,100 | 1,318 | ||
5% 12/1/23 | 5,000 | 6,041 | ||
| 23,883 | |||
South Dakota - 0.2% | ||||
South Dakota Health & Edl. Facilities Auth. Rev.: | ||||
(Reg'l. Health Proj.) Series 2010: | ||||
5% 9/1/15 | 680 | 700 | ||
5% 9/1/16 | 500 | 534 | ||
5% 9/1/17 | 490 | 539 | ||
Series 2011: | ||||
5% 9/1/17 | 1,100 | 1,210 | ||
5% 9/1/18 | 1,200 | 1,351 | ||
5% 9/1/19 | 1,255 | 1,436 | ||
Series 2014 B: | ||||
4% 11/1/19 | 400 | 444 | ||
4% 11/1/20 | 625 | 696 | ||
4% 11/1/21 | 500 | 558 | ||
5% 11/1/22 | 375 | 445 | ||
| 7,913 | |||
Tennessee - 0.4% | ||||
Knox County Health Edl. & Hsg. Facilities Series 2012 A: | ||||
5% 1/1/19 | 1,925 | 2,178 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Tennessee - continued | ||||
Knox County Health Edl. & Hsg. Facilities Series 2012 A: - continued | ||||
5% 1/1/20 | $ 2,500 | $ 2,875 | ||
5% 1/1/21 | 2,500 | 2,913 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series 2010 B, 5% 7/1/16 (e) | 1,730 | 1,839 | ||
Metropolitan Nashville Arpt. Auth. Rev. Series 2010 A: | ||||
5% 7/1/16 | 1,815 | 1,936 | ||
5% 7/1/17 | 1,100 | 1,213 | ||
Shelby County Health Edl. & Hsg. Facilities Board Rev. Series 2004 A, 5% 9/1/15 | 3,125 | 3,219 | ||
| 16,173 | |||
Texas - 7.3% | ||||
Austin Cmnty. College District Pub. Facilities Lease Rev. (Round Rock Campus Proj.) Series 2008, 5.25% 8/1/15 | 2,585 | 2,660 | ||
Austin Elec. Util. Sys. Rev.: | ||||
Series A, 5% 11/15/15 | 1,000 | 1,040 | ||
0% 5/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,500 | 4,313 | ||
Austin Independent School District Series 2004, 5% 8/1/17 | 1,450 | 1,607 | ||
Austin Wtr. & Wastewtr. Sys. Rev. Series 2009 A, 5% 11/15/15 | 2,250 | 2,343 | ||
Brownsville Util. Sys. Rev. Series 2008 A, 5% 9/1/15 (FSA Insured) | 2,665 | 2,746 | ||
Carroll Independent School District Series 2009 C, 5.25% 2/15/19 | 1,000 | 1,151 | ||
Dallas Fort Worth Int'l. Arpt. Rev.: | ||||
Series 2009 A, 5% 11/1/15 | 5,000 | 5,194 | ||
Series 2013 F: | ||||
5% 11/1/19 | 2,000 | 2,323 | ||
5% 11/1/20 | 1,500 | 1,770 | ||
5% 11/1/21 | 3,000 | 3,582 | ||
5% 11/1/22 | 5,000 | 6,001 | ||
Dallas Independent School District Series 2014 A, 4% 8/15/16 | 9,280 | 9,806 | ||
Dallas Wtrwks. & Swr. Sys. Rev. Series 2011, 5% 10/1/18 | 1,600 | 1,826 | ||
Fort Worth Independent School District Series 2009, 5% 2/15/16 | 3,690 | 3,883 | ||
Grapevine Gen. Oblig. Series 2009, 5% 2/15/16 | 1,375 | 1,447 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Harris County Cultural Ed. Facilities Fin. Corp. Rev. (Memorial Hermann Health Sys. Proj.) Series 2013 B: | ||||
0.34% 6/1/15 (d) | $ 1,465 | $ 1,465 | ||
0.44% 6/1/16 (d) | 1,590 | 1,592 | ||
Harris County Cultural Ed. Facilities Fin. Corp. Thermal Util. Rev. (TECO Proj.) Series 2009 A, 5% 11/15/16 | 500 | 535 | ||
Harris County Gen. Oblig.: | ||||
Bonds Series 2012 B, 0.63%, tender 8/15/15 (d) | 10,470 | 10,473 | ||
Series 2012 A, 0.47% 8/15/15 (d) | 1,300 | 1,302 | ||
Houston Arpt. Sys. Rev.: | ||||
Series 2011 A, 5% 7/1/17 (e) | 7,380 | 8,090 | ||
Series 2012 A, 5% 7/1/23 (e) | 2,000 | 2,353 | ||
Series A: | ||||
5% 7/1/15 | 2,070 | 2,119 | ||
5% 7/1/16 | 1,080 | 1,154 | ||
Houston Independent School District Series 2005 A, 0% 2/15/16 | 4,500 | 4,482 | ||
Houston Util. Sys. Rev.: | ||||
Bonds Series 2012 C, 0.64%, tender 8/1/16 (d) | 9,200 | 9,230 | ||
5% 5/15/22 | 5,000 | 6,041 | ||
5% 5/15/23 | 7,000 | 8,549 | ||
Klein Independent School District Series 2009 A, 5% 8/1/16 | 2,195 | 2,350 | ||
Lewisville Independent School District Series 2009, 5% 8/15/17 | 1,170 | 1,296 | ||
Lone Star College Sys. Gen. Oblig. Series 2010 A, 5% 8/15/22 | 2,500 | 2,508 | ||
Lower Colorado River Auth. Rev.: | ||||
Series 2010, 5% 5/15/17 | 2,805 | 3,078 | ||
5% 5/15/15 | 2,120 | 2,157 | ||
5% 5/15/15 (Escrowed to Maturity) | 5 | 5 | ||
5% 5/15/16 | 2,355 | 2,500 | ||
5% 5/15/16 (Escrowed to Maturity) | 5 | 5 | ||
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Svcs. Corp. Proj.) Series 2010, 5% 5/15/18 | 3,140 | 3,518 | ||
Lubbock Health Facilities Dev. Corp. Rev. (St. Joseph Health Sys. Proj.) Series 2008 B: | ||||
5% 7/1/17 | 2,800 | 3,076 | ||
5% 7/1/18 | 3,030 | 3,413 | ||
Mansfield Independent School District Series 2009, 4% 2/15/17 | 1,840 | 1,956 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
North Harris County Reg'l. Wtr. Auth. Series 2013, 4% 12/15/22 | $ 1,580 | $ 1,755 | ||
North Texas Tollway Auth. Rev. Bonds Series 2012 C, 1.95%, tender 1/1/19 (d) | 8,500 | 8,621 | ||
Northside Independent School District Bonds: | ||||
Series 2011 A, 2%, tender 6/1/19 (d) | 6,500 | 6,585 | ||
1%, tender 6/1/16 (d) | 20,000 | 20,134 | ||
1.2%, tender 8/1/17 (d) | 29,415 | 29,519 | ||
Sam Rayburn Muni. Pwr. Agcy. Series 2012, 5% 10/1/20 | 1,000 | 1,168 | ||
San Antonio Elec. & Gas Sys. Rev. Series 2006 A, 5% 2/1/25 (Pre-Refunded to 2/1/16 @ 100) | 3,400 | 3,573 | ||
San Antonio Pub. Facilities Corp. and Rfdg. Lease (Convention Ctr. Proj.) Series 2012: | ||||
5% 9/15/20 | 1,000 | 1,164 | ||
5% 9/15/21 | 1,000 | 1,179 | ||
5% 9/15/22 | 3,440 | 4,070 | ||
San Antonio Wtr. Sys. Rev. Series 2012: | ||||
4% 5/15/19 | 1,500 | 1,670 | ||
5% 5/15/20 | 6,000 | 7,067 | ||
5% 5/15/21 | 5,000 | 5,960 | ||
San Jacinto Cmnty. College District Series 2009: | ||||
5% 2/15/15 | 2,220 | 2,233 | ||
5% 2/15/15 (Escrowed to Maturity) | 280 | 281 | ||
5% 2/15/16 | 2,000 | 2,104 | ||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) Series 2009, 5% 10/1/16 | 5,795 | 6,241 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev.: | ||||
(Scott & White Healthcare Proj.) Series 2013 A: | ||||
5% 8/15/21 | 750 | 884 | ||
5% 8/15/23 | 1,000 | 1,187 | ||
Series 2013: | ||||
4% 9/1/18 | 400 | 435 | ||
5% 9/1/19 | 655 | 748 | ||
5% 9/1/20 | 915 | 1,060 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Rev.: | ||||
5.75% 7/1/18 | 2,600 | 2,872 | ||
5.75% 7/1/18 (Pre-Refunded to 7/1/16 @ 100) | 810 | 833 | ||
Texas Gen. Oblig.: | ||||
Series 2006, 5% 4/1/27 (Pre-Refunded to 4/1/16 @ 100) | 3,700 | 3,920 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Texas Gen. Oblig.: - continued | ||||
Series 2009 A, 5% 10/1/16 | $ 3,400 | $ 3,665 | ||
Series 2014, 5% 10/1/16 | 10,645 | 11,474 | ||
Texas Muni. Pwr. Agcy. Rev. Series 2010: | ||||
5% 9/1/15 | 835 | 860 | ||
5% 9/1/16 | 750 | 803 | ||
Texas Pub. Fin. Auth. Rev. Series 2014 B: | ||||
4% 7/1/17 | 2,100 | 2,243 | ||
4% 7/1/18 | 2,200 | 2,277 | ||
Texas Trans. Commission Central Texas Tpk. Sys. Rev. Bonds Series 2012 B, 1.25%, tender 2/15/15 (d) | 6,300 | 6,306 | ||
Texas Trans. Commission State Hwy. Fund Rev. Series 2007, 5% 4/1/25 | 2,200 | 2,394 | ||
Tomball Independent School District 5% 2/15/17 (Assured Guaranty Corp. Insured) | 1,105 | 1,192 | ||
Univ. of Texas Board of Regents Sys. Rev.: | ||||
Series 2006 B, 5% 8/15/24 (Pre-Refunded to 8/15/16 @ 100) | 5,975 | 6,403 | ||
Series 2010 B, 5% 8/15/21 | 1,800 | 2,170 | ||
| 289,989 | |||
Utah - 0.2% | ||||
Utah Associated Muni. Pwr. Sys. Rev. (Payson Pwr. Proj.) 5% 9/1/17 | 1,090 | 1,194 | ||
Utah Gen. Oblig. Series 2009 C, 5% 7/1/16 | 5,555 | 5,931 | ||
| 7,125 | |||
Vermont - 0.1% | ||||
Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Fletcher Allen Health Care Proj.) Series 2004 B, 5% 12/1/15 (FSA Insured) | 2,225 | 2,310 | ||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Series 2009 B, 5% 10/1/15 | 5,000 | 5,144 | ||
Virginia - 0.4% | ||||
Chesapeake Trans. Sys. Toll Road Rev. Series 2012 A: | ||||
4% 7/15/20 | 605 | 669 | ||
5% 7/15/21 | 400 | 458 | ||
Fredericksburg Econ. Dev. Auth. Rev. Series 2014, 5% 6/15/24 | 2,340 | 2,729 | ||
Virginia Commonwealth Trans. Board Rev. (U.S. Route 58 Corridor Dev. Prog.) Series 2014 B, 5% 5/15/16 | 2,100 | 2,231 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Virginia - continued | ||||
Virginia Pub. School Auth.: | ||||
Series ll, 5% 4/15/16 | $ 2,600 | $ 2,754 | ||
Series Xll, 5% 4/15/16 | 3,940 | 4,173 | ||
York County Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. and Pwr. Co. Proj.) Series 2009 A, 1.875%, tender 5/16/19 (d) | 2,500 | 2,544 | ||
| 15,558 | |||
Washington - 2.8% | ||||
Energy Northwest Elec. Rev. Series 2012 A, 5% 7/1/19 | 40,000 | 46,278 | ||
Grant County Pub. Util. District #2 Series 2012 A: | ||||
5% 1/1/20 | 1,375 | 1,608 | ||
5% 1/1/21 | 1,865 | 2,219 | ||
King County Highline School District # 401 Series 2009: | ||||
5% 12/1/16 | 6,350 | 6,880 | ||
5% 12/1/17 | 2,950 | 3,290 | ||
Port of Seattle Passenger Facilities Charge Rev. Series 2010 B, 5% 12/1/16 (e) | 2,500 | 2,699 | ||
Port of Seattle Rev. Series 2010 C: | ||||
5% 2/1/16 (e) | 2,000 | 2,097 | ||
5% 2/1/17 (e) | 2,500 | 2,705 | ||
Seattle Muni. Lt. & Pwr. Rev. Series 2010 B, 5% 2/1/17 | 2,000 | 2,175 | ||
Spokane County Wastewtr. Sys. Rev. Series 2009 A, 5% 12/1/15 | 1,710 | 1,784 | ||
Tacoma Elec. Sys. Rev. Series 2013 A: | ||||
4% 1/1/20 | 5,000 | 5,586 | ||
4% 1/1/21 | 2,000 | 2,251 | ||
5% 1/1/20 | 3,000 | 3,503 | ||
5% 1/1/21 | 1,770 | 2,098 | ||
Washington Gen. Oblig.: | ||||
Series 2012 AR, 5% 7/1/18 | 5,000 | 5,665 | ||
Series 2015 AR, 5% 7/1/18 | 18,720 | 21,210 | ||
| 112,048 | |||
West Virginia - 0.2% | ||||
West Virginia Econ. Dev. Auth. Solid Waste Disp. Facilities Rev. Bonds Series 2011 A, 2.25%, tender 9/1/16 (d)(e) | 7,000 | 7,108 | ||
Wisconsin - 0.7% | ||||
Madison Gen. Oblig. Series 2014 A, 5% 10/1/21 | 3,215 | 3,872 | ||
Milwaukee County Arpt. Rev.: | ||||
Series 2010 B, 5% 12/1/15 (e) | 1,720 | 1,793 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Wisconsin - continued | ||||
Milwaukee County Arpt. Rev.: - continued | ||||
Series 2013 A: | ||||
5% 12/1/20 (e) | $ 1,330 | $ 1,545 | ||
5% 12/1/22 (e) | 1,470 | 1,724 | ||
5.25% 12/1/23 (e) | 1,540 | 1,850 | ||
Wisconsin Gen. Oblig.: | ||||
Series 2005 D, 5% 5/1/19 (Pre-Refunded to 5/1/16 @ 100) | 2,260 | 2,399 | ||
Series 2014 B, 5% 5/1/16 | 2,600 | 2,757 | ||
Wisconsin Health & Edl. Facilities Series 2014: | ||||
4% 5/1/18 | 375 | 402 | ||
4% 5/1/19 | 285 | 306 | ||
5% 5/1/20 | 410 | 460 | ||
5% 5/1/21 | 640 | 719 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Agnesian HealthCare, Inc. Proj.) Series 2010, 5% 7/1/16 | 1,175 | 1,243 | ||
(Aurora Health Care, Inc. Proj.) Series 2010 A, 5% 4/15/17 | 1,500 | 1,625 | ||
(Thedacare, Inc. Proj.) Series 2010: | ||||
5% 12/15/15 | 1,105 | 1,154 | ||
5% 12/15/16 | 1,440 | 1,557 | ||
5% 12/15/17 | 1,540 | 1,712 | ||
Series 2012, 5% 10/1/21 | 1,400 | 1,644 | ||
| 26,762 | |||
TOTAL MUNICIPAL BONDS (Cost $3,621,419) |
|
Municipal Notes - 2.2% | |||
|
|
|
|
Connecticut - 0.4% | |||
Hartford Gen. Oblig. BAN 2% 10/27/15 | 14,200 | 14,383 | |
Louisiana - 1.0% | |||
Saint James Parish Gen. Oblig. (Nucor Steel Louisiana LLC Proj.): | |||
Series 2010 A1, 0.22% 1/7/15, VRDN (d) | 4,300 | 4,300 | |
Series 2010 B1, 0.2% 1/7/15, VRDN (d) | 35,600 | 35,600 | |
| 39,900 | ||
New York - 0.7% | |||
Monroe County Gen. Oblig. BAN Series 2014, 1% 7/1/15 | 17,700 | 17,738 | |
Municipal Notes - continued | |||
Principal Amount (000s) | Value (000s) | ||
New York - continued | |||
Oyster Bay Gen. Oblig. TAN Series 2014, 1% 3/27/15 | $ 8,300 | $ 8,309 | |
Rockland County Gen. Oblig. TAN Series 2014, 2% 3/17/15 | 1,900 | 1,905 | |
| 27,952 | ||
North Carolina - 0.1% | |||
Hertford County Indl. Facilities Poll. Cont. Fing. Auth. (Nucor Corp. Proj.) Series 2000 A, 0.22% 1/7/15, VRDN (d)(e) | 5,900 | 5,900 | |
TOTAL MUNICIPAL NOTES (Cost $88,129) |
| ||
TOTAL INVESTMENT PORTFOLIO - 95.4% (Cost $3,709,548) | 3,791,440 | ||
NET OTHER ASSETS (LIABILITIES) - 4.6% | 184,752 | ||
NET ASSETS - 100% | $ 3,976,192 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
TAN | - | TAX ANTICIPATION NOTE |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
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 exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $5,514,000 or 0.1% of net assets. |
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
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 |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 38.1% |
Electric Utilities | 12.5% |
Transportation | 9.9% |
Special Tax | 9.4% |
Health Care | 8.7% |
Others* (Individually Less Than 5%) | 21.4% |
| 100.0% |
* Includes net other assets
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | December 31, 2014 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $3,709,548) |
| $ 3,791,440 |
Cash |
| 220,509 |
Receivable for fund shares sold | 6,616 | |
Interest receivable | 39,359 | |
Prepaid expenses | 8 | |
Other receivables | 19 | |
Total assets | 4,057,951 | |
|
|
|
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 65,719 | |
Payable for fund shares redeemed | 12,548 | |
Distributions payable | 1,295 | |
Accrued management fee | 1,195 | |
Distribution and service plan fees payable | 142 | |
Other affiliated payables | 809 | |
Other payables and accrued expenses | 51 | |
Total liabilities | 81,759 | |
|
|
|
Net Assets | $ 3,976,192 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,893,079 | |
Undistributed net investment income | 112 | |
Accumulated undistributed net realized gain (loss) on investments | 1,109 | |
Net unrealized appreciation (depreciation) on investments | 81,892 | |
Net Assets | $ 3,976,192 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2014 | |
Calculation of Maximum Offering Price Class A: | $ 10.71 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.71) | $ 11.01 | |
Class T: | $ 10.69 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.69) | $ 10.99 | |
Class B: | $ 10.71 | |
|
|
|
Class C: | $ 10.69 | |
|
|
|
Limited Term Municipal Income: | $ 10.69 | |
|
|
|
Institutional Class: | $ 10.70 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended December 31, 2014 | |
Investment Income |
|
|
Interest |
| $ 85,036 |
Income from Fidelity Central Funds |
| 2 |
Total income |
| 85,038 |
|
|
|
Expenses | ||
Management fee | $ 13,872 | |
Transfer agent fees | 4,054 | |
Distribution and service plan fees | 1,555 | |
Accounting fees and expenses | 611 | |
Custodian fees and expenses | 48 | |
Independent trustees' compensation | 17 | |
Registration fees | 184 | |
Audit | 59 | |
Legal | 9 | |
Miscellaneous | 30 | |
Total expenses before reductions | 20,439 | |
Expense reductions | (60) | 20,379 |
Net investment income (loss) | 64,659 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 4,731 |
Change in net unrealized appreciation (depreciation) on investment securities | 12,153 | |
Net gain (loss) | 16,884 | |
Net increase (decrease) in net assets resulting from operations | $ 81,543 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 64,659 | $ 71,632 |
Net realized gain (loss) | 4,731 | 5,964 |
Change in net unrealized appreciation (depreciation) | 12,153 | (76,421) |
Net increase (decrease) in net assets resulting | 81,543 | 1,175 |
Distributions to shareholders from net investment income | (64,660) | (71,638) |
Distributions to shareholders from net realized gain | (5,775) | (3,714) |
Total distributions | (70,435) | (75,352) |
Share transactions - net increase (decrease) | 176,760 | (480,013) |
Redemption fees | 43 | 46 |
Total increase (decrease) in net assets | 187,911 | (554,144) |
|
|
|
Net Assets | ||
Beginning of period | 3,788,281 | 4,342,425 |
End of period (including undistributed net investment income of $112 and undistributed net investment income of $50, respectively) | $ 3,976,192 | $ 3,788,281 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.68 | $ 10.86 | $ 10.83 | $ 10.62 | $ 10.64 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .153 | .158 | .164 | .198 | .209 |
Net realized and unrealized gain (loss) | .046 | (.170) | .034 | .225 | (.016) |
Total from investment operations | .199 | (.012) | .198 | .423 | .193 |
Distributions from net investment income | (.153) | (.158) | (.156) | (.205) | (.209) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.169) | (.168) | (.168) | (.213) | (.213) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.71 | $ 10.68 | $ 10.86 | $ 10.83 | $ 10.62 |
Total Return A, B | 1.87% | (.11)% | 1.84% | 4.03% | 1.81% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | .79% | .78% | .79% | .77% | .78% |
Expenses net of fee waivers, if any | .79% | .78% | .79% | .77% | .78% |
Expenses net of all reductions | .79% | .78% | .78% | .77% | .77% |
Net investment income (loss) | 1.42% | 1.47% | 1.51% | 1.85% | 1.95% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 397 | $ 318 | $ 394 | $ 336 | $ 200 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 | $ 10.63 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .157 | .162 | .166 | .199 | .211 |
Net realized and unrealized gain (loss) | .046 | (.180) | .044 | .226 | (.026) |
Total from investment operations | .203 | (.018) | .210 | .425 | .185 |
Distributions from net investment income | (.157) | (.162) | (.158) | (.207) | (.211) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.173) | (.172) | (.170) | (.215) | (.215) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.69 | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 |
Total Return A, B | 1.91% | (.17)% | 1.95% | 4.05% | 1.74% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | .76% | .75% | .77% | .76% | .76% |
Expenses net of fee waivers, if any | .76% | .75% | .77% | .76% | .76% |
Expenses net of all reductions | .75% | .75% | .76% | .76% | .75% |
Net investment income (loss) | 1.46% | 1.50% | 1.52% | 1.86% | 1.97% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 25 | $ 24 | $ 25 | $ 26 | $ 24 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 10.67 | $ 10.86 | $ 10.82 | $ 10.61 | $ 10.64 |
Income from Investment Operations |
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Net investment income (loss) C | .086 | .089 | .093 | .128 | .139 |
Net realized and unrealized gain (loss) | .056 | (.180) | .045 | .226 | (.026) |
Total from investment operations | .142 | (.091) | .138 | .354 | .113 |
Distributions from net investment income | (.086) | (.089) | (.086) | (.136) | (.139) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.102) | (.099) | (.098) | (.144) | (.143) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.71 | $ 10.67 | $ 10.86 | $ 10.82 | $ 10.61 |
Total Return A, B | 1.33% | (.84)% | 1.27% | 3.36% | 1.06% |
Ratios to Average Net Assets D, F |
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Expenses before reductions | 1.42% | 1.43% | 1.44% | 1.43% | 1.44% |
Expenses net of fee waivers, if any | 1.42% | 1.43% | 1.44% | 1.42% | 1.43% |
Expenses net of all reductions | 1.42% | 1.43% | 1.43% | 1.42% | 1.42% |
Net investment income (loss) | .80% | .82% | .85% | 1.19% | 1.30% |
Supplemental Data |
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Net assets, end of period (in millions) | $ - | $ 1 | $ 1 | $ 2 | $ 2 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 10.66 | $ 10.84 | $ 10.81 | $ 10.60 | $ 10.63 |
Income from Investment Operations |
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Net investment income (loss) C | .072 | .077 | .082 | .117 | .129 |
Net realized and unrealized gain (loss) | .046 | (.169) | .035 | .226 | (.026) |
Total from investment operations | .118 | (.092) | .117 | .343 | .103 |
Distributions from net investment income | (.072) | (.078) | (.075) | (.125) | (.129) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.088) | (.088) | (.087) | (.133) | (.133) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.69 | $ 10.66 | $ 10.84 | $ 10.81 | $ 10.60 |
Total Return A, B | 1.11% | (.86)% | 1.08% | 3.25% | .96% |
Ratios to Average Net Assets D, F |
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Expenses before reductions | 1.54% | 1.54% | 1.53% | 1.53% | 1.52% |
Expenses net of fee waivers, if any | 1.54% | 1.54% | 1.53% | 1.53% | 1.52% |
Expenses net of all reductions | 1.54% | 1.53% | 1.53% | 1.52% | 1.52% |
Net investment income (loss) | .67% | .72% | .76% | 1.09% | 1.20% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 65 | $ 71 | $ 92 | $ 79 | $ 77 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Limited Term Municipal Income
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
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Net asset value, beginning of period | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 | $ 10.63 |
Income from Investment Operations |
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Net investment income (loss) B | .186 | .191 | .197 | .228 | .240 |
Net realized and unrealized gain (loss) | .046 | (.180) | .045 | .227 | (.026) |
Total from investment operations | .232 | .011 | .242 | .455 | .214 |
Distributions from net investment income | (.186) | (.191) | (.190) | (.237) | (.240) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.202) | (.201) | (.202) | (.245) | (.244) |
Redemption fees added to paid in capital B, F | - | - | - | - | - |
Net asset value, end of period | $ 10.69 | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 |
Total Return A | 2.19% | .10% | 2.25% | 4.34% | 2.02% |
Ratios to Average Net Assets C, E |
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Expenses before reductions | .48% | .48% | .48% | .48% | .48% |
Expenses net of fee waivers, if any | .48% | .48% | .48% | .48% | .48% |
Expenses net of all reductions | .48% | .48% | .47% | .48% | .48% |
Net investment income (loss) | 1.73% | 1.78% | 1.81% | 2.14% | 2.24% |
Supplemental Data |
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Net assets, end of period (in millions) | $ 3,225 | $ 3,168 | $ 3,624 | $ 3,523 | $ 3,456 |
Portfolio turnover rate D | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
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| |
Net asset value, beginning of period | $ 10.67 | $ 10.85 | $ 10.81 | $ 10.61 | $ 10.63 |
Income from Investment Operations |
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Net investment income (loss) B | .179 | .184 | .191 | .224 | .235 |
Net realized and unrealized gain (loss) | .046 | (.169) | .045 | .216 | (.015) |
Total from investment operations | .225 | .015 | .236 | .440 | .220 |
Distributions from net investment income | (.179) | (.185) | (.184) | (.232) | (.236) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.195) | (.195) | (.196) | (.240) | (.240) |
Redemption fees added to paid in capital B, F | - | - | - | - | - |
Net asset value, end of period | $ 10.70 | $ 10.67 | $ 10.85 | $ 10.81 | $ 10.61 |
Total Return A | 2.12% | .14% | 2.19% | 4.19% | 2.07% |
Ratios to Average Net Assets C, E |
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| |
Expenses before reductions | .55% | .54% | .54% | .52% | .53% |
Expenses net of fee waivers, if any | .55% | .54% | .54% | .52% | .53% |
Expenses net of all reductions | .54% | .54% | .53% | .52% | .52% |
Net investment income (loss) | 1.67% | 1.71% | 1.76% | 2.09% | 2.20% |
Supplemental Data |
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| |
Net assets, end of period (in millions) | $ 263 | $ 207 | $ 206 | $ 152 | $ 142 |
Portfolio turnover rate D | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2014
(Amounts in thousands except percentages)
1. Organization.
Fidelity Limited Term 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 C, Limited Term Municipal Income and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, 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.
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Municipal securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Annual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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 may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of December 31, 2014, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and 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 GAAP. 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to wash sales and 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 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 85,896 |
Gross unrealized depreciation | (3,990) |
Net unrealized appreciation (depreciation) on securities | $ 81,906 |
|
|
Tax Cost | $ 3,709,534 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed tax-exempt income | $ 90 |
Undistributed long-term capital gain | $ 1,118 |
Net unrealized appreciation (depreciation) on securities and other investments | $ 81,906 |
The tax character of distributions paid was as follows:
| December 31, 2014 | December 31, 2013 |
Tax-exempt Income | $ 64,660 | $ 71,638 |
Long-term Capital Gains | 5,775 | 3,714 |
Total | $ 70,435 | $ 75,352 |
Annual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in 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. 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $882,192 and $775,695, respectively.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .36% of the Fund's average net assets.
Distribution and Service Plan Fees. 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 the investment adviser, 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, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 824 | $ 7 |
Class T | -% | .25% | 59 | -* |
Class B | .65% | .25% | 4 | 3 |
Class C | .75% | .25% | 668 | 82 |
|
|
| $ 1,555 | $ 92 |
* Amount represents one hundred ninety dollars.
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 3.00% to 1.00% for Class B shares, 1.00% for Class C shares, .75% or .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Annual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained | |||
Class A | $ 19 | |||
Class T | 8 | |||
Class B* | 1 | |||
Class C* | 6 | |||
| $ 34 |
* 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 servicing agent for the Fund's Class A, Class T, Class B, Class C, Limited Term Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, with respect to all classes of the Fund, to perform the transfer agency, dividend disbursing, and shareholder servicing functions. FIIOC receives 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 pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 515 | .16 |
Class T | 28 | .12 |
Class B | 1 | .13 |
Class C | 104 | .16 |
Limited Term Municipal Income | 3,049 | .10 |
Institutional Class | 357 | .16 |
| $ 4,054 |
|
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, under which FSC maintains the Fund's accounting records. The fee is paid to Citibank and is based on the level of average net assets for each month.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, 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 $40 and $20, respectively.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2014 | 2013 |
From net investment income |
|
|
Class A | $ 4,673 | $ 5,745 |
Class T | 347 | 389 |
Class B | 3 | 7 |
Class C | 452 | 585 |
Limited Term Municipal Income | 55,470 | 61,526 |
Institutional Class | 3,715 | 3,386 |
Total | $ 64,660 | $ 71,638 |
From net realized gain |
|
|
Class A | $ 518 | $ 329 |
Class T | 36 | 24 |
Class B | 1 | 1 |
Class C | 101 | 71 |
Limited Term Municipal Income | 4,778 | 3,097 |
Institutional Class | 341 | 192 |
Total | $ 5,775 | $ 3,714 |
Annual Report
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars | ||
Years ended December 31, | 2014 | 2013 | 2014 | 2013 |
Class A |
|
|
|
|
Shares sold | 21,930 | 17,258 | $ 235,729 | $ 186,600 |
Reinvestment of distributions | 419 | 453 | 4,497 | 4,871 |
Shares redeemed | (15,005) | (24,258) | (161,198) | (260,966) |
Net increase (decrease) | 7,344 | (6,547) | $ 79,028 | $ (69,495) |
Class T |
|
|
|
|
Shares sold | 936 | 1,844 | $ 10,041 | $ 19,947 |
Reinvestment of distributions | 34 | 36 | 360 | 384 |
Shares redeemed | (932) | (1,872) | (9,993) | (20,208) |
Net increase (decrease) | 38 | 8 | $ 408 | $ 123 |
Class B |
|
|
|
|
Shares sold | 5 | 16 | $ 58 | $ 168 |
Reinvestment of distributions | -* | 1 | 4 | 6 |
Shares redeemed | (17) | (69) | (183) | (740) |
Net increase (decrease) | (12) | (52) | $ (121) | $ (566) |
Class C |
|
|
|
|
Shares sold | 1,064 | 1,589 | $ 11,413 | $ 17,079 |
Reinvestment of distributions | 42 | 49 | 454 | 522 |
Shares redeemed | (1,668) | (3,466) | (17,881) | (37,229) |
Net increase (decrease) | (562) | (1,828) | $ (6,014) | $ (19,628) |
Limited Term Municipal Income |
|
|
|
|
Shares sold | 76,270 | 84,688 | $ 818,051 | $ 911,728 |
Reinvestment of distributions | 4,133 | 4,446 | 44,337 | 47,763 |
Shares redeemed | (75,997) | (126,146) | (815,047) | (1,354,126) |
Net increase (decrease) | 4,406 | (37,012) | $ 47,341 | $ (394,635) |
Institutional Class |
|
|
|
|
Shares sold | 13,740 | 12,901 | $ 147,453 | $ 138,587 |
Reinvestment of distributions | 270 | 212 | 2,893 | 2,276 |
Shares redeemed | (8,783) | (12,706) | (94,228) | (136,675) |
Net increase (decrease) | 5,227 | 407 | $ 56,118 | $ 4,188 |
* Amount represents three hundred sixty-two shares.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Limited Term Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Limited Term Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Limited Term Municipal Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 19, 2015
Annual Report
Trustees and Officers
The Trustees and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Elizabeth S. Acton, James C. Curvey, and John Engler, each of the Trustees oversees 233 funds. Ms. Acton and Mr. Engler each oversees 215 funds. Mr. Curvey oversees 407 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
James C. Curvey (1935) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), and a Director of FMR Co., Inc. (2007-2014). |
Abigail P. Johnson (1961) | |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees | |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC, President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
Year of Election or Appointment: 2013 Trustee | |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present).] |
John Engler (1948) | |
Year of Election or Appointment: 2014 Trustee | |
| Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association.] |
Albert R. Gamper, Jr. (1942) | |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees | |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
Year of Election or Appointment: 2010 Trustee | |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
Year of Election or Appointment: 2008 Trustee | |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
Year of Election or Appointment: 2009 Trustee | |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees | |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation | |
Elizabeth Paige Baumann (1968) | |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer | |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Robert P. Brown (1963) | |
Year of Election or Appointment: 2012 Vice President of Fidelity's Bond Funds | |
| Mr. Brown also serves as Vice President of other funds. Mr. Brown serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director, Research of Fidelity Management & Research (U.K.) Inc. (2008-present), and is an employee of Fidelity Investments. Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's Money Market Funds (2010-2012). |
Marc Bryant (1966) | |
Year of Election or Appointment: 2013 Assistant Secretary | |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) | |
Year of Election or Appointment: 2013 President and Treasurer | |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) | |
Year of Election or Appointment: 2014 Chief Financial Officer | |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) | |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) | |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Limited (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Chris Maher (1972) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) | |
Year of Election or Appointment: 2014 Vice President | |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) | |
Year of Election or Appointment: 2009 Assistant Treasurer | |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) | |
Year of Election or Appointment: 2008 Chief Compliance Officer | |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (2014-present), FMR (2014-present), Fidelity Investments Money Management, Inc. (2014-present), and is an employee of Fidelity Invest-ments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
Year of Election or Appointment: 2011 Deputy Treasurer | |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of Limited Term Municipal Income Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
| Pay Date | Record Date | Capital Gains |
Institutional Class | 02/09/15 | 02/06/15 | $0.004 |
During fiscal year ended 2014, 100% of the fund's income dividends was free from federal income tax, and 4.93% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2014, $4,486,196, or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Limited Term Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the 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 relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by 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. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2014 meeting, the Board, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. 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 fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and 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. In connection with separate internal corporate reorganizations involving Fidelity Management & Research (U.K.) Inc. (FMR U.K.) and Fidelity Management & Research (Japan) Inc. (FMR Japan), the Board approved certain non-material amendments to the fund's sub-advisory agreements with FMR U.K. and FMR Japan to reflect that, after these reorganizations, FMR Investment Management (UK) Limited and Fidelity Management & Research (Japan) Limited will carry on the business of FMR U.K. and FMR Japan, respectively. The Board noted that no changes to the portfolio managers or to the foreign research or investment advisory services provided to the fund were expected in connection with either reorganization and that the same personnel and resources would continue to be available to the fund at the new entities.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. 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 to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, 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 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 over time 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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
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 a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing a new Fidelity adviser, Fidelity SelectCo, LLC, to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Annual Report
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG %s are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the chart and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Limited Term Municipal Income Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2013.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, 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 that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund. As part of its review, the Board also considered the current and historical total expense ratios 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 expense ratio of the retail class ranked below its competitive median for 2013, the total expense ratio of Class B ranked equal to its competitive median for 2013, and the total expense ratio of each of Class A, Class T, Class C, and Institutional Class ranked above its competitive median for 2013. The Board considered that, in general, various factors can affect total expense ratios. The Board noted that the total expense ratio of Class T was above the competitive median primarily because of higher 12b-1 fees on Class T as compared to most competitor funds. Class T has a higher 12b-1 fee, but a lower front-end sales charge, than traditionally priced front-end sales charge classes. The Board considered that Class T is primarily sold load-waived in the retirement plan market, where its 0.50% 12b-1 fee is comparable to competing no-load, higher 12b-1 fee classes designed specifically for retirement plans. The Board noted the total expense ratio of Class C was above the competitive median primarily because of higher 12b-1 fees compared to most competitor funds with Class C. 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 expense ratios 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.
Annual Report
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients. The Board noted the findings of the 2013 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable, although in some cases 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 servicing the fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. 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 Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board also reviewed Fidelity's non-fund businesses and 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 was satisfied that the profitability was not excessive.
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 as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under FMR's management plus sector fund assets previously under FMR's management and currently managed by Fidelity SelectCo, LLC). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity 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 benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Annual Report
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
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 certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) the methodology with respect to competitive fund data and peer group classifications; (viii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (ix) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
(Fidelity Investment logo)(registered trademark)
ASTMI-UANN-0215 1.796657.111
Fidelity®
Limited Term
Municipal Income Fund
Annual Report
December 31, 2014
(Fidelity Cover Art)
Contents
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
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/proxyvotingresults 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 LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
Annual Report
Semia
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 listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2014 | Past 1 | Past 5 | Past 10 |
Fidelity® Limited Term Municipal Income Fund | 2.19% | 2.17% | 2.84% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Limited Term Municipal Income Fund, a class of the fund, on December 31, 2004. The chart shows how the value of your investment would have changed, and also shows how the Barclays® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds posted a strong result for the 12 months ending December 31, 2014, driven by steady demand, tight supply and improving credit fundamentals. The Barclays® Municipal Bond Index returned 9.05%, significantly outperforming the U.S. investment-grade taxable bond market. Munis were driven, in part, by continued economic growth, declining long-term interest rates, and the relative attractiveness of U.S. markets amid global economic and political uncertainty. More specific to munis, prices rose as investors became more upbeat about the fundamental outlook of many state and local governments. Additionally, a steady stream of municipal bond cash flows - coupon payments, maturities and those due to early bond calls by issuers - fueled reinvestment. Meanwhile, investors took solace that the financial distress experienced by Puerto Rico, Detroit and a few California cities in bankruptcy did not expand to the broader market. Lastly, the tax advantages of munis had particular appeal due to the higher federal tax rates for top earners that took effect in 2013, as well as the new 3.8% Medicare tax on unearned, non-municipal investment income.
Comments from Mark Sommer, Lead Portfolio Manager of Fidelity® Limited Term Municipal Income Fund: For the year, the fund's Retail Class shares returned 2.19%, while the Barclays® 1-6 Year Municipal Bond Index returned 1.78%. I kept the fund's interest rate sensitivity in line with the benchmark, and evaluated bonds based on their yields as well as their potential for price appreciation. The fund's yield-curve positioning was helpful to performance. We owned more bonds with maturities of five to 10 years compared with the index, and had less exposure to two- to three-year bonds. Longer-term bonds outperformed, driven in large measure by investors' appetite for more yield. My decision to overweight the health care sector was rewarded, as investors' appetite for yield helped it outperform higher-quality sectors. We also benefited from an overweighting in investment-grade bonds rated A and below, due to strong demand for their marginally higher yields. There weren't any major disappointments. That said, the fund's underweighting to bonds issued by Citizen's Property Insurance Corporation modestly detracted from results, reflecting the strong performance of these securities due to strong demand.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2014 to December 31, 2014).
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. 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 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. 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.
Annual Report
| Annualized | Beginning | Ending | Expenses Paid |
Class A | .79% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,003.80 | $ 3.99 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.22 | $ 4.02 |
Class T | .75% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,003.90 | $ 3.79 |
Hypothetical A |
| $ 1,000.00 | $ 1,021.42 | $ 3.82 |
Class B | 1.40% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.70 | $ 7.06 |
Hypothetical A |
| $ 1,000.00 | $ 1,018.15 | $ 7.12 |
Class C | 1.53% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.00 | $ 7.71 |
Hypothetical A |
| $ 1,000.00 | $ 1,017.49 | $ 7.78 |
Limited Term Municipal Income | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,004.40 | $ 2.43 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Institutional Class | .54% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,005.00 | $ 2.73 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.48 | $ 2.75 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five States as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
New York | 10.6 | 11.9 |
Florida | 9.0 | 8.0 |
Illinois | 8.6 | 10.2 |
California | 8.6 | 9.3 |
Texas | 7.3 | 7.2 |
Top Five Sectors as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
General Obligations | 38.1 | 35.8 |
Electric Utilities | 12.5 | 12.8 |
Transportation | 9.9 | 10.8 |
Special Tax | 9.4 | 11.3 |
Health Care | 8.7 | 8.4 |
Weighted Average Maturity as of December 31, 2014 | ||
|
| 6 months ago |
Years | 3.3 | 3.2 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2014 | ||
|
| 6 months ago |
Years | 2.7 | 2.7 |
Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | AAA 9.2% |
| ![]() | AAA 8.2% |
| ||
![]() | AA,A 76.0% |
| ![]() | AA,A 77.4% |
| ||
![]() | BBB 6.4% |
| ![]() | BBB 5.9% |
| ||
![]() | BB and Below 0.0% |
| ![]() | BB and Below 0.1% |
| ||
![]() | Not Rated 1.6% |
| ![]() | Not Rated 2.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2014
Showing Percentage of Net Assets
Municipal Bonds - 93.2% | ||||
| Principal Amount (000s) | Value (000s) | ||
Alaska - 0.6% | ||||
Anchorage Gen. Oblig.: | ||||
Series A: | ||||
5% 9/1/20 | $ 1,090 | $ 1,288 | ||
5% 9/1/22 | 1,200 | 1,455 | ||
Series B: | ||||
5% 9/1/18 | 3,685 | 4,198 | ||
5% 9/1/20 | 2,000 | 2,364 | ||
5% 9/1/22 | 1,425 | 1,728 | ||
Series C: | ||||
5% 9/1/18 | 1,000 | 1,139 | ||
5% 9/1/19 | 2,150 | 2,500 | ||
5% 9/1/20 | 1,260 | 1,489 | ||
5% 9/1/22 | 1,000 | 1,213 | ||
Series D: | ||||
5% 9/1/19 | 3,895 | 4,528 | ||
5% 9/1/20 | 2,000 | 2,364 | ||
| 24,266 | |||
Arizona - 2.5% | ||||
Arizona Ctfs. of Prtn. Series 2010 A, 5% 10/1/16 (FSA Insured) | 13,000 | 13,965 | ||
Arizona Health Facilities Auth. Rev. (Scottsdale Lincoln Hospitals Proj.) Series 2014 A: | ||||
5% 12/1/18 | 500 | 565 | ||
5% 12/1/19 | 600 | 689 | ||
5% 12/1/20 | 820 | 952 | ||
5% 12/1/21 | 1,105 | 1,294 | ||
5% 12/1/22 | 800 | 941 | ||
5% 12/1/23 | 1,000 | 1,184 | ||
5% 12/1/24 | 1,500 | 1,787 | ||
Arizona School Facilities Board Ctfs. of Prtn.: | ||||
Series 2005 A2, 5% 9/1/16 (Pre-Refunded to 9/1/15 @ 100) | 11,000 | 11,347 | ||
Series 2008, 5.5% 9/1/16 | 1,385 | 1,495 | ||
Arizona Wtr. Infrastructure Fin. Auth. Rev. Series 2009 A: | ||||
5% 10/1/18 | 1,000 | 1,144 | ||
5% 10/1/20 (Pre-Refunded to 10/1/19 @ 100) | 5,180 | 6,078 | ||
Maricopa County School District #28 Kyrene Elementary Series 2010 B: | ||||
1% 7/1/19 (a) | 900 | 955 | ||
1% 7/1/20 (a) | 1,360 | 1,444 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Arizona - continued | ||||
Phoenix Civic Impt. Corp. Wtr. Sys. Rev.: | ||||
Series 2009 A, 5% 7/1/15 | $ 5,835 | $ 5,972 | ||
Series 2009 B, 5% 7/1/16 | 5,090 | 5,432 | ||
Phoenix Indl. Solid Waste Disp. Rev. Bonds (Republic Svc., Inc. Proj.) Series 2013, 0.4%, tender 2/2/15 (d)(e) | 17,350 | 17,350 | ||
Pima County Ctfs. of Prtn. Series 2014: | ||||
5% 12/1/21 | 2,210 | 2,580 | ||
5% 12/1/22 | 2,470 | 2,910 | ||
5% 12/1/23 | 3,425 | 4,071 | ||
Pima County Swr. Sys. Rev.: | ||||
Series 2011 B, 5% 7/1/19 | 3,225 | 3,722 | ||
Series 2012 A: | ||||
5% 7/1/18 | 825 | 934 | ||
5% 7/1/19 | 1,550 | 1,796 | ||
Tucson Gen. Oblig. Series 2005, 5% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,250 | 1,278 | ||
Univ. Med. Ctr. Corp. Hosp. Rev. Series 2011: | ||||
5% 7/1/16 | 3,055 | 3,224 | ||
5% 7/1/17 | 3,315 | 3,595 | ||
5% 7/1/18 | 3,365 | 3,732 | ||
| 100,436 | |||
California - 8.6% | ||||
Alameda Corridor Trans. Auth. Rev.: | ||||
Series 2004 A, 0% 10/1/19 | 3,600 | 3,244 | ||
Series 2013 A, 5% 10/1/22 | 2,190 | 2,633 | ||
Bay Area Toll Auth. San Francisco Bay Toll Bridge Rev. Bonds 1.5%, tender 4/2/18 | 5,200 | 5,242 | ||
California Gen. Oblig.: | ||||
Bonds 3%, tender 12/1/19 (d) | 15,600 | 16,673 | ||
5% 9/1/18 | 7,500 | 8,547 | ||
5% 9/1/19 | 20,000 | 23,301 | ||
5% 9/1/20 | 20,000 | 23,661 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.) Series 2008 H, 5.125% 7/1/22 (Pre-Refunded to 7/1/15 @ 100) | 1,005 | 1,029 | ||
Bonds (Children's Hosp. of Orange County Proj.) Series 2012 A, 1.84%, tender 7/1/17 (d) | 4,000 | 4,060 | ||
California Infra Eco Dev. Bank Rev. Bonds Series 2013 A1: | ||||
0.32%, tender 4/1/16 (d) | 17,000 | 17,000 | ||
0.32%, tender 4/1/16 (d) | 30,000 | 30,000 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Pub. Works Board Lease Rev.: | ||||
(Dept. of Corrections & Rehab. Proj.) Series 2011 C, 5% 10/1/18 | $ 1,750 | $ 1,991 | ||
(Riverside Campus Proj.) Series 2012 H, 5% 4/1/22 | 1,000 | 1,199 | ||
(Univ. Proj.) Series 2011 B: | ||||
5% 10/1/18 | 2,740 | 3,124 | ||
5% 10/1/19 | 1,490 | 1,735 | ||
(Various Cap. Projs.): | ||||
Series 2011 A: | ||||
5% 10/1/18 | 6,475 | 7,366 | ||
5% 10/1/19 | 5,000 | 5,805 | ||
5% 10/1/20 | 2,525 | 2,980 | ||
Series 2012 A, 5% 4/1/21 | 1,000 | 1,189 | ||
Series 2012 G, 5% 11/1/22 | 1,250 | 1,508 | ||
(Various Judicial Council Projects) Series 2011 D, 5% 12/1/19 | 4,100 | 4,776 | ||
Series 2009 J, 5% 11/1/17 | 2,300 | 2,561 | ||
Series 2010 A: | ||||
5% 3/1/16 | 2,000 | 2,109 | ||
5% 3/1/17 | 5,405 | 5,891 | ||
California Statewide Cmntys. Dev. Auth. Rev. Bonds: | ||||
Series 2002 C, 5%, tender 5/1/17 (d) | 4,000 | 4,389 | ||
Series 2009 E2, 5%, tender 5/1/17 (d) | 2,000 | 2,195 | ||
Contra Costa Trans. Auth. Sales Tax Rev. Bonds Series 2012 A, 0.474%, tender 12/12/15 (d) | 12,500 | 12,505 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev. Series 2013 A, 4% 6/1/21 | 3,500 | 3,975 | ||
Los Angeles County Metropolitan Trans. Auth. Sales Tax Rev. Series 2013 A: | ||||
5% 7/1/18 | 9,750 | 11,112 | ||
5% 7/1/19 | 4,400 | 5,130 | ||
Los Angeles County Pub. Works Fing. Auth. Lease Rev. Series 2010 A, 5% 8/1/17 | 5,000 | 5,511 | ||
Los Angeles Gen. Oblig. Series 2011 B, 5% 9/1/18 | 20,960 | 23,984 | ||
Los Angeles Muni. Impt. Corp. Lease Rev. Series 2012 C: | ||||
4.625% 3/1/18 | 1,500 | 1,669 | ||
5% 3/1/19 | 2,935 | 3,375 | ||
Los Angeles Unified School District Ctfs. of Prtn. (Multiple Properties Proj.) Series 2010 A: | ||||
5% 12/1/16 | 2,025 | 2,190 | ||
5% 12/1/17 | 9,790 | 10,931 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Metropolitan Wtr. District of Southern California Wtr. Rev. Bonds Series 2011 A2, 0.19%, tender 5/1/15 (d) | $ 18,000 | $ 18,000 | ||
Monterey County Pub. Impt. Corp. Ctfs. of Prtn. (Refing. Proj.) Series 2009, 5% 8/1/17 (FSA Insured) | 2,130 | 2,349 | ||
Northern California Pwr. Agcy. Rev.: | ||||
(Geothermal #3 Proj.) Series 2009 A, 5% 7/1/15 | 2,170 | 2,221 | ||
(Hydroelectric #1 Proj.) Series 2010 A: | ||||
4% 7/1/15 | 2,000 | 2,037 | ||
5% 7/1/18 | 2,000 | 2,264 | ||
Oakland Unified School District Alameda County Series 2013, 5.5% 8/1/23 | 1,000 | 1,206 | ||
Port of Oakland Rev. Series 2012 P, 5% 5/1/21 (e) | 2,500 | 2,938 | ||
Rancho Cucamonga Redev. Agcy. (Rancho Redev. Proj.): | ||||
5% 9/1/23 (FSA Insured) | 1,350 | 1,631 | ||
5% 9/1/24 (FSA Insured) | 2,300 | 2,788 | ||
Riverside County Asset Leasing Rev. (Riverside Cap. Proj.) Series 2012 A: | ||||
4% 6/1/17 | 1,750 | 1,867 | ||
5% 6/1/17 | 3,700 | 4,034 | ||
5% 6/1/18 | 6,470 | 7,225 | ||
Sacramento Muni. Util. District Elec. Rev. Series 2011 X, 5% 8/15/21 | 4,000 | 4,816 | ||
Sacramento Pwr. Auth. Cogeneration Proj. Rev. Series 2005 A, 5% 7/1/18 (AMBAC Insured) | 2,890 | 2,943 | ||
San Bernardino County Ctfs. of Prtn. (Arrowhead Proj.) Series 2009 A: | ||||
5% 8/1/16 | 5,450 | 5,752 | ||
5% 8/1/18 | 8,000 | 8,902 | ||
San Diego Cmnty. College District Series 2007, 0% 8/1/16 (FSA Insured) | 1,160 | 1,147 | ||
San Diego Pub. Facilities Fing. Auth. Swr. Rev. Series 2009 A, 5% 5/15/15 | 1,845 | 1,877 | ||
San Pablo Calif Redev. Agcy. Series 2014 A, 5% 6/15/24 (FSA Insured) | 1,380 | 1,658 | ||
Stockton Unified School District Gen. Oblig. 5% 7/1/18 (FSA Insured) | 1,035 | 1,159 | ||
| 341,404 | |||
Colorado - 0.2% | ||||
Colorado Health Facilities Auth. Rev. Bonds (Catholic Health Initiatives Proj.) Series 2008 C4, 4%, tender 11/12/15 (d) | 4,200 | 4,334 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Colorado - continued | ||||
Colorado Reg'l. Trans. District Ctfs. of Prtn. Series 2014 A, 5% 6/1/23 | $ 3,860 | $ 4,633 | ||
Univ. of Colorado Enterprise Sys. Rev. Series 2009 A, 5% 6/1/17 | 500 | 551 | ||
| 9,518 | |||
Connecticut - 2.4% | ||||
Connecticut Dev. Auth. Poll. Cont. Rev. Bonds Series 2011 A, 1.55%, tender 4/1/15 (d)(e) | 4,300 | 4,312 | ||
Connecticut Gen. Oblig.: | ||||
(Econ. Recovery Proj.) Series 2009 A: | ||||
5% 1/1/15 | 10,500 | 10,500 | ||
5% 1/1/16 | 2,700 | 2,828 | ||
Series 2012 C, 5% 6/1/21 | 23,420 | 27,870 | ||
Series 2012 D, 0.33% 9/15/15 (d) | 6,000 | 6,011 | ||
Series 2013 A: | ||||
0.18% 3/1/15 (d) | 2,800 | 2,801 | ||
0.27% 3/1/16 (d) | 1,100 | 1,102 | ||
0.38% 3/1/17 (d) | 1,400 | 1,402 | ||
Series 2014 C, 5% 12/15/16 | 16,070 | 17,456 | ||
Series 2014 D, 2% 6/15/16 | 3,400 | 3,477 | ||
Connecticut Health & Edl. Facilities Auth. Rev. Bonds (Ascension Health Cr. Group Proj.) Series 1998 B, 1.55%, tender 2/1/17 (d) | 2,860 | 2,908 | ||
Connecticut Hsg. Fin. Auth. Series 2013 B2, 4% 11/15/32 | 7,700 | 8,341 | ||
Connecticut Spl. Tax Oblig. Trans. Infrastructure Rev. Series 2011 A, 5% 12/1/18 | 5,575 | 6,376 | ||
New Haven Gen. Oblig. Series 2013 A, 5% 8/1/15 | 1,000 | 1,025 | ||
| 96,409 | |||
Delaware, New Jersey - 0.1% | ||||
Delaware River & Bay Auth. Rev. Series 2014 C: | ||||
5% 1/1/20 | 2,500 | 2,888 | ||
5% 1/1/21 | 2,000 | 2,339 | ||
| 5,227 | |||
District Of Columbia - 0.4% | ||||
District of Columbia Gen. Oblig. Series 2007 B, 5% 6/1/16 (AMBAC Insured) | 3,555 | 3,782 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
District Of Columbia - continued | ||||
District of Columbia Rev. (Medlantic/Helix Proj.) Series 1998 C, 5% 8/15/15 (FSA Insured) | $ 1,500 | $ 1,543 | ||
District of Columbia Univ. Rev. Bonds (Georgetown Univ. Proj.) Series 2001 B, 4.7%, tender 4/1/18 (d) | 8,500 | 9,308 | ||
| 14,633 | |||
Florida - 9.0% | ||||
Alachua County Health Facilities Auth. Health Facilities Rev. (Shands Teaching Hospitals & Clinics, Inc. Proj.) Series 2010 B, 5% 12/1/15 | 4,395 | 4,555 | ||
Brevard County School Board Ctfs. of Prtn. Series 2014, 5% 7/1/21 | 1,000 | 1,182 | ||
Broward County Arpt. Sys. Rev. Series 2012 Q1, 5% 10/1/21 | 1,000 | 1,193 | ||
Broward County School Board Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 7/1/15 (FSA Insured) | 5,495 | 5,620 | ||
Series 2012 A: | ||||
5% 7/1/19 | 7,000 | 8,085 | ||
5% 7/1/20 | 15,070 | 17,604 | ||
Citizens Property Ins. Corp. Series 2010 A1, 5% 6/1/15 (FSA Insured) | 14,005 | 14,277 | ||
Clay County Infrastructure Sales Surtax Rev. 5% 10/1/15 (Assured Guaranty Corp. Insured) | 7,745 | 8,019 | ||
Clearwater Wtr. and Swr. Rev. Series 2011: | ||||
4% 12/1/16 | 1,265 | 1,348 | ||
5% 12/1/17 | 1,685 | 1,877 | ||
5% 12/1/18 | 685 | 784 | ||
5% 12/1/19 | 1,820 | 2,124 | ||
5% 12/1/20 | 1,000 | 1,178 | ||
Collier County Indl. Dev. Auth. Healthcare Facilities Rev. (NCH Healthcare Sys. Proj.) Series 2011: | ||||
5% 10/1/16 | 1,530 | 1,630 | ||
5% 10/1/17 | 1,455 | 1,586 | ||
Escambia County Solid Waste Disp. Rev. Bonds (Gulf Pwr. Co. Proj.) Series 2009, 1.35%, tender 6/2/15 (d) | 1,900 | 1,907 | ||
Florida Board of Ed. Series 2005 B, 5% 1/1/18 | 21,080 | 21,291 | ||
Florida Board of Ed. Lottery Rev. Series 2011 A, 5% 7/1/20 | 8,600 | 10,081 | ||
Florida Board of Ed. Pub. Ed. Cap. Outlay: | ||||
Series 2009 C: | ||||
5% 6/1/16 | 3,000 | 3,194 | ||
5% 6/1/20 | 3,625 | 4,243 | ||
Series 2012 C, 5% 6/1/16 | 3,585 | 3,816 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Florida Dept. of Envir. Protection Rev. Series 2012 A, 5% 7/1/19 | $ 15,800 | $ 18,287 | ||
Florida Dev. Fin. Corp. Healthcare Facility Rev. (Univ. Health Proj.) Series 2013 A: | ||||
5% 2/1/17 | 700 | 742 | ||
5% 2/1/18 | 1,790 | 1,932 | ||
5% 2/1/19 | 1,450 | 1,586 | ||
5% 2/1/20 | 2,025 | 2,234 | ||
Florida Hurricane Catastrophe Fund Fin. Corp. Rev. Series 2010 A, 5% 7/1/15 (Escrowed to Maturity) | 20,010 | 20,479 | ||
Florida Muni. Pwr. Agcy. Rev. (Stanton II Proj.) Series 2012 A, 5% 10/1/18 | 2,850 | 3,227 | ||
Greater Orlando Aviation Auth. Arpt. Facilities Rev. Series 2011 C: | ||||
5% 10/1/19 | 1,705 | 1,998 | ||
5% 10/1/20 | 1,000 | 1,190 | ||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt, Inc. Prog.) Series 2009 E, 5% 11/15/15 | 2,345 | 2,442 | ||
Indian River County School Board Ctfs. of Prtn. Series 2014: | ||||
5% 7/1/20 | 935 | 1,086 | ||
5% 7/1/22 | 2,000 | 2,357 | ||
5% 7/1/23 | 2,000 | 2,368 | ||
Indian River County Wtr. & Swr. Rev.: | ||||
5% 9/1/15 | 1,000 | 1,027 | ||
5% 9/1/17 | 1,000 | 1,085 | ||
JEA Wtr. & Swr. Sys. Rev. Series 2010 D, 5% 10/1/21 | 1,945 | 2,263 | ||
Kissimmee Util. Auth. Elec. Sys. Rev. Series 2003, 5.25% 10/1/15 | 3,525 | 3,653 | ||
Manatee County Rev. Series 2013: | ||||
5% 10/1/19 | 1,250 | 1,456 | ||
5% 10/1/20 | 2,000 | 2,362 | ||
5% 10/1/21 | 2,000 | 2,394 | ||
5% 10/1/22 | 1,000 | 1,204 | ||
Miami Beach Health Facilities Auth. Hosp. Rev. (Mount Sinai Med. Ctr. of Florida Proj.) Series 2012: | ||||
5% 11/15/21 | 1,000 | 1,173 | ||
5% 11/15/22 | 485 | 572 | ||
Miami-Dade County Expressway Auth.: | ||||
(Waste Mgmt., Inc. of Florida Proj.): | ||||
Series 2013, 5% 7/1/19 | 2,000 | 2,310 | ||
5% 7/1/20 | 1,000 | 1,166 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Miami-Dade County Expressway Auth.: - continued | ||||
(Waste Mgmt., Inc. of Florida Proj.): - continued | ||||
5% 7/1/21 | $ 2,000 | $ 2,358 | ||
5% 7/1/22 | 2,000 | 2,375 | ||
5% 7/1/23 | 2,000 | 2,348 | ||
Series 2014 A, 5% 7/1/24 | 625 | 753 | ||
Series 2014 B: | ||||
5% 7/1/22 | 1,500 | 1,782 | ||
5% 7/1/23 | 3,250 | 3,884 | ||
Miami-Dade County Pub. Facilities Rev. (Jackson Health Sys. Proj.) Series 2005 B, 5% 6/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,875 | 3,942 | ||
Miami-Dade County School Board Ctfs. of Prtn.: | ||||
Series 2014 D: | ||||
5% 11/1/20 | 4,875 | 5,666 | ||
5% 11/1/21 | 6,275 | 7,351 | ||
5% 11/1/22 | 2,915 | 3,436 | ||
5% 11/1/23 | 7,650 | 9,095 | ||
Series 2015 A: | ||||
5% 5/1/19 (c) | 1,000 | 1,148 | ||
5% 5/1/20 (c) | 2,095 | 2,429 | ||
5% 5/1/21 (c) | 4,000 | 4,691 | ||
5% 5/1/22 (c) | 3,720 | 4,379 | ||
5% 5/1/23 (c) | 6,500 | 7,681 | ||
Miami-Dade County Transit Sales Surtax Rev. Series 2012, 5% 7/1/19 | 1,250 | 1,445 | ||
Orange County Health Facilities Auth.: | ||||
(Orlando Health, Inc.) Series 2009: | ||||
5% 10/1/15 | 2,210 | 2,284 | ||
5% 10/1/16 | 1,325 | 1,422 | ||
Series 2009, 5.25% 10/1/19 | 1,245 | 1,428 | ||
Orange County Health Facilities Auth. Rev. (Orlando Reg'l. Healthcare Sys. Proj.) Series 2008 A, 5% 11/1/15 (FSA Insured) | 1,825 | 1,892 | ||
Orlando & Orange County Expressway Auth. Rev.: | ||||
Series 2010 B, 5% 7/1/15 (FSA Insured) | 1,430 | 1,462 | ||
Series 2012, 5% 7/1/19 | 1,000 | 1,152 | ||
Orlando Utils. Commission Util. Sys. Rev.: | ||||
Series 2009 C, 5% 10/1/17 | 1,500 | 1,667 | ||
Series 2010 C, 5% 10/1/17 | 1,895 | 2,106 | ||
Series 2011 B: | ||||
5% 10/1/18 | 2,250 | 2,569 | ||
5% 10/1/19 | 2,325 | 2,711 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Palm Beach County Health Facilities Auth. Hosp. Rev. Series 2014: | ||||
4% 12/1/19 | $ 1,000 | $ 1,099 | ||
5% 12/1/20 | 880 | 1,014 | ||
5% 12/1/21 | 1,100 | 1,264 | ||
Palm Beach County School Board Ctfs. of Prtn.: | ||||
Series 2014 B: | ||||
4% 8/1/19 | 4,000 | 4,433 | ||
4% 8/1/21 | 4,040 | 4,511 | ||
5% 8/1/19 | 3,000 | 3,471 | ||
5% 8/1/21 | 4,000 | 4,762 | ||
Series 2015 B: | ||||
5% 8/1/19 (c) | 2,735 | 3,164 | ||
5% 8/1/20 (c) | 1,750 | 2,054 | ||
Pasco County School District Sales Tax Rev. Series 2013: | ||||
5% 10/1/18 | 1,250 | 1,419 | ||
5% 10/1/19 | 1,100 | 1,268 | ||
5% 10/1/20 | 1,000 | 1,164 | ||
5% 10/1/21 | 1,000 | 1,178 | ||
5% 10/1/22 | 1,000 | 1,190 | ||
Pasco County Solid Waste Disp. & Resource Recovery Sys. Rev.: | ||||
Series 2011: | ||||
5% 10/1/17 (e) | 4,465 | 4,913 | ||
5% 10/1/19 (e) | 2,025 | 2,323 | ||
5% 10/1/18 (e) | 2,745 | 3,093 | ||
Tampa Bay Wtr. Reg'l. Wtr. Supply Auth. Util. Sys. Rev.: | ||||
Series 2011 B, 5% 10/1/18 | 4,700 | 5,375 | ||
Series 2011, 5% 10/1/19 | 5,590 | 6,531 | ||
Tampa Health Sys. Rev. (Baycare Health Sys. Proj.) Series 2010: | ||||
5% 11/15/16 | 2,500 | 2,704 | ||
5% 11/15/17 | 1,515 | 1,689 | ||
Tampa Solid Waste Sys. Rev. Series 2010: | ||||
5% 10/1/15 (FSA Insured) (e) | 2,920 | 3,019 | ||
5% 10/1/16 (FSA Insured) (e) | 6,000 | 6,435 | ||
5% 10/1/17 (FSA Insured) (e) | 5,000 | 5,494 | ||
Tampa Tax Allocation (H. Lee Moffitt Cancer Ctr. Proj.) Series 2012 A, 5% 9/1/20 | 1,800 | 2,098 | ||
Titusville Wtr. & Swr. Rev. Series 2010, 5% 10/1/17 (Assured Guaranty Corp. Insured) | 1,135 | 1,247 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Volusia County School Board Ctfs. of Prtn. (Master Lease Prog.) Series 2014 B: | ||||
5% 8/1/18 | $ 300 | $ 341 | ||
5% 8/1/19 | 310 | 359 | ||
| 357,255 | |||
Georgia - 3.0% | ||||
Atlanta Arpt. Rev.: | ||||
5% 1/1/22 | 1,000 | 1,192 | ||
5% 1/1/23 | 1,000 | 1,198 | ||
5% 1/1/24 | 1,150 | 1,386 | ||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: | ||||
(Oglethorpe Pwr. Corp. Vogtle Proj.) Series 2013 A, 2.4%, tender 4/1/20 (d) | 12,500 | 12,641 | ||
2.2%, tender 4/2/19 (d) | 9,700 | 9,818 | ||
Fulton County Wtr. & Swr. Rev. Series 2011: | ||||
5% 1/1/19 | 4,000 | 4,573 | ||
5% 1/1/20 | 4,000 | 4,664 | ||
Georgia Gen. Oblig. Series 2014 D, 5% 7/1/16 | 23,900 | 25,531 | ||
Georgia Muni. Elec. Auth. Pwr. Rev.: | ||||
(Combined Cycle Proj.) Series A, 5% 11/1/18 | 2,000 | 2,282 | ||
(Proj. One): | ||||
Series 2008 A, 5.25% 1/1/17 (Berkshire Hathaway Assurance Corp. Insured) | 7,925 | 8,627 | ||
Series 2008 D: | ||||
5.75% 1/1/19 | 14,890 | 17,307 | ||
5.75% 1/1/20 | 3,555 | 4,135 | ||
Series B, 5% 1/1/17 | 2,750 | 2,982 | ||
Series GG: | ||||
5% 1/1/16 | 680 | 711 | ||
5% 1/1/20 | 675 | 787 | ||
5% 1/1/21 | 1,670 | 1,976 | ||
Georgia Muni. Gas Auth. Rev.: | ||||
(Gas Portfolio III Proj.) Series R, 5% 10/1/21 | 5,000 | 5,821 | ||
(Gas Portfolio lll Proj.) Series 2014 U: | ||||
5% 10/1/19 | 1,500 | 1,734 | ||
5% 10/1/22 | 1,000 | 1,191 | ||
5% 10/1/23 | 2,420 | 2,907 | ||
Private Colleges & Univs. Auth. Rev. (The Savannah College of Arts and Design Projs.) Series 2014, 5% 4/1/21 | 2,000 | 2,288 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Georgia - continued | ||||
Richmond County Hosp. Auth. (Univ. Health Svcs., Inc. Proj.) Series 2009: | ||||
5% 1/1/15 | $ 1,040 | $ 1,040 | ||
5% 1/1/16 | 2,415 | 2,525 | ||
5% 1/1/18 | 1,530 | 1,624 | ||
| 118,940 | |||
Hawaii - 0.5% | ||||
Hawaii Arpts. Sys. Rev.: | ||||
Series 2010 B, 5% 7/1/15 (e) | 3,900 | 3,992 | ||
Series 2011, 5% 7/1/19 (e) | 4,000 | 4,607 | ||
Hawaii Gen. Oblig. Series DR, 5% 6/1/16 (Escrowed to Maturity) | 2,895 | 3,078 | ||
State of Hawaii Dept. of Trans. Series 2013: | ||||
5% 8/1/19 (e) | 1,400 | 1,610 | ||
5% 8/1/20 (e) | 3,050 | 3,561 | ||
5% 8/1/21 (e) | 550 | 649 | ||
5% 8/1/22 (e) | 2,075 | 2,461 | ||
5% 8/1/23 (e) | 1,435 | 1,713 | ||
| 21,671 | |||
Illinois - 8.6% | ||||
Chicago Board of Ed.: | ||||
Series 1998 B1, 0% 12/1/21 (FGIC Insured) | 10,000 | 7,727 | ||
Series 2009 D: | ||||
5% 12/1/17 (Assured Guaranty Corp. Insured) | 4,115 | 4,516 | ||
5% 12/1/18 (Assured Guaranty Corp. Insured) | 2,335 | 2,601 | ||
Chicago Gen. Oblig.: | ||||
(City Colleges Proj.) Series 1999: | ||||
0% 1/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,200 | 7,017 | ||
0% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 2,844 | ||
0% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,805 | 8,990 | ||
0% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 14,755 | 12,965 | ||
Series 2009 A, 5% 1/1/22 | 2,500 | 2,703 | ||
Series 2012 B, 5.125% 1/1/15 (Escrowed to Maturity) | 2,060 | 2,060 | ||
Series 2012 C, 5% 1/1/23 | 885 | 953 | ||
Series A, 5% 1/1/17 (FSA Insured) | 3,465 | 3,600 | ||
Series B, 5% 1/1/17 (FSA Insured) | 5,115 | 5,235 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Chicago Gen. Oblig.: - continued | ||||
4.5% 1/1/20 | $ 1,150 | $ 1,205 | ||
5% 1/1/21 | 4,875 | 5,305 | ||
5% 1/1/21 | 1,500 | 1,614 | ||
5% 1/1/23 | 1,000 | 1,086 | ||
Chicago Midway Arpt. Rev.: | ||||
Bonds Series 2010 B, 5%, tender 1/1/15 (d) | 5,000 | 5,000 | ||
Series 2014 B: | ||||
5% 1/1/20 | 625 | 723 | ||
5% 1/1/21 | 400 | 467 | ||
5% 1/1/23 | 2,500 | 2,974 | ||
5% 1/1/22 | 5,000 | 5,881 | ||
5% 1/1/23 | 5,900 | 7,018 | ||
Chicago Motor Fuel Tax Rev. Series 2013: | ||||
5% 1/1/19 | 250 | 280 | ||
5% 1/1/20 | 300 | 339 | ||
5% 1/1/21 | 400 | 454 | ||
5% 1/1/22 | 300 | 344 | ||
5% 1/1/23 | 535 | 615 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 2010 D, 5.25% 1/1/17 (e) | 1,000 | 1,085 | ||
Series 2010 E: | ||||
5% 1/1/15 (e) | 4,000 | 4,001 | ||
5% 1/1/16 (e) | 1,500 | 1,567 | ||
Series 2011 B, 5% 1/1/18 | 6,500 | 7,239 | ||
Series 2012 A, 5% 1/1/21 | 1,400 | 1,648 | ||
Series 2012 B, 5% 1/1/21 (e) | 4,605 | 5,316 | ||
Series 2013 B, 5% 1/1/22 | 4,000 | 4,747 | ||
Series 2013 D, 5% 1/1/22 | 3,220 | 3,822 | ||
Chicago Park District Gen. Oblig. Series 2014 D: | ||||
4% 1/1/17 | 1,050 | 1,113 | ||
4% 1/1/18 | 2,255 | 2,423 | ||
Chicago Sales Tax Rev. Series 1998, 5.5% 1/1/16 (FGIC Insured) (FSA Insured) | 1,710 | 1,790 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
5% 6/1/19 (Assured Guaranty Corp. Insured) | 2,085 | 2,233 | ||
5% 6/1/19 (Pre-Refunded to 12/1/16 @ 100) | 415 | 450 | ||
Chicago Wastewtr. Transmission Rev. Series 2012: | ||||
5% 1/1/19 | 1,310 | 1,486 | ||
5% 1/1/23 | 1,200 | 1,395 | ||
Cook County Gen. Oblig.: | ||||
Series 2009 C, 5% 11/15/21 | 8,575 | 9,646 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Cook County Gen. Oblig.: - continued | ||||
Series 2010 A, 5.25% 11/15/22 | $ 4,960 | $ 5,752 | ||
Series 2011 A, 5.25% 11/15/22 | 1,000 | 1,172 | ||
Series 2012 C: | ||||
5% 11/15/19 | 3,200 | 3,645 | ||
5% 11/15/20 | 7,210 | 8,288 | ||
5% 11/15/21 | 4,970 | 5,745 | ||
5% 11/15/22 | 1,250 | 1,457 | ||
Series 2014 A: | ||||
5% 11/15/20 | 1,000 | 1,150 | ||
5% 11/15/21 | 500 | 578 | ||
5% 11/15/22 | 1,000 | 1,167 | ||
Cook County Thorton Township High School District #205 5.5% 12/1/16 (Assured Guaranty Corp. Insured) | 2,500 | 2,722 | ||
Illinois Fin. Auth. Gas Supply Rev. Bonds (The Peoples Gas Lt. and Coke Co. Proj.) Series 2010 B, 2.625%, tender 8/1/15 (d) | 9,500 | 9,614 | ||
Illinois Fin. Auth. Hosp. Rev. (KishHealth Sys. Proj.) Series 2008, 5.25% 10/1/15 | 2,220 | 2,274 | ||
Illinois Fin. Auth. Rev.: | ||||
(Advocate Health Care Proj.) Series 2010 D, 5% 4/1/15 | 550 | 556 | ||
(Northwest Cmnty. Hosp. Proj.) Series 2008 A, 5% 7/1/15 | 1,000 | 1,018 | ||
(Palos Cmnty. Hosp. Proj.) Series 2010 C: | ||||
5% 5/15/16 | 2,060 | 2,173 | ||
5% 5/15/17 | 3,520 | 3,847 | ||
(Provena Health Proj.) Series 2010 A, 5.75% 5/1/19 | 2,650 | 3,082 | ||
(Rush Univ. Med. Ctr. Proj.) Series 2006 B: | ||||
5% 11/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,075 | 3,177 | ||
5% 11/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,700 | 1,822 | ||
Series 2012 A, 5% 5/15/23 | 1,300 | 1,503 | ||
Series 2012: | ||||
5% 9/1/18 | 1,160 | 1,290 | ||
5% 9/1/19 | 1,115 | 1,258 | ||
5% 9/1/20 | 1,470 | 1,672 | ||
5% 9/1/21 | 1,645 | 1,876 | ||
5% 9/1/22 | 3,530 | 4,041 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Gen. Oblig.: | ||||
Series 2002, 5.5% 8/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,495 | $ 1,537 | ||
Series 2004, 5% 11/1/16 | 11,000 | 11,779 | ||
Series 2005, 5% 4/1/17 (AMBAC Insured) | 8,050 | 8,127 | ||
Series 2007 A, 5.5% 6/1/15 | 1,000 | 1,020 | ||
Series 2007 B, 5% 1/1/17 | 9,835 | 10,548 | ||
Series 2010: | ||||
5% 1/1/15 (FSA Insured) | 20,000 | 20,003 | ||
5% 1/1/21 (FSA Insured) | 1,600 | 1,778 | ||
Series 2012: | ||||
5% 3/1/19 | 5,500 | 6,103 | ||
5% 8/1/19 | 2,660 | 2,967 | ||
5% 8/1/20 | 6,900 | 7,780 | ||
5% 8/1/21 | 1,400 | 1,576 | ||
5% 8/1/22 | 5,800 | 6,509 | ||
Series 2013, 5% 7/1/22 | 1,265 | 1,419 | ||
Series 2014, 5% 2/1/22 | 3,000 | 3,361 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Delnor-Cmnty. Hosp. Proj.) Series 2003 A: | ||||
5% 5/15/15 (FSA Insured) | 2,250 | 2,280 | ||
5% 5/15/16 (FSA Insured) | 2,325 | 2,435 | ||
Series 2003 A, 5% 5/15/17 (FSA Insured) | 2,150 | 2,309 | ||
Illinois Sales Tax Rev.: | ||||
Series 2009 B: | ||||
4.5% 6/15/16 | 5,000 | 5,286 | ||
4.5% 6/15/17 | 6,075 | 6,611 | ||
Series 2010, 5% 6/15/15 | 8,800 | 8,989 | ||
Illinois Toll Hwy. Auth. Toll Hwy. Rev. Series 2006 A2, 5% 1/1/31 (Pre-Refunded to 7/1/16 @ 100) | 2,100 | 2,242 | ||
Lake County Cmnty. Consolidated School District #73 Gen. Oblig.: | ||||
0% 12/1/15 (Escrowed to Maturity) | 580 | 578 | ||
0% 12/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,520 | 1,510 | ||
McHenry County Conservation District Gen. Oblig.: | ||||
Series 2014: | ||||
5% 2/1/19 | 2,285 | 2,612 | ||
5% 2/1/20 | 2,275 | 2,648 | ||
Series 2014. 5% 2/1/23 | 2,225 | 2,667 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Will County Cmnty. Unit School District #365-U: | ||||
0% 11/1/16 (Escrowed to Maturity) | $ 740 | $ 733 | ||
0% 11/1/16 (FSA Insured) | 2,235 | 2,193 | ||
| 342,956 | |||
Indiana - 2.0% | ||||
Indiana Fin. Auth. Econ. Dev. Rev. Bonds (Republic Svcs., Inc. Proj.): | ||||
Series 2012, 0.4%, tender 3/2/15 (d)(e) | 3,250 | 3,250 | ||
Series A, 0.4%, tender 3/2/15 (d)(e) | 1,950 | 1,950 | ||
Indiana Fin. Auth. Hosp. Rev.: | ||||
(Parkview Health Sys. Oblig. Group Proj.) Series 2009 A, 5% 5/1/15 | 6,420 | 6,517 | ||
Series 2013: | ||||
5% 8/15/22 | 700 | 819 | ||
5% 8/15/23 | 1,000 | 1,180 | ||
Indiana Fin. Auth. Rev.: | ||||
(Trinity Health Cr. Group Proj.) Series 2009 A, 5% 12/1/15 | 2,135 | 2,228 | ||
(Wabash Valley Correctional Facilities Proj.) Series 2009 A, 5% 7/1/15 | 8,025 | 8,214 | ||
Series 2010 A, 5% 2/1/17 | 2,800 | 3,042 | ||
Series 2012: | ||||
5% 3/1/20 | 650 | 734 | ||
5% 3/1/21 | 1,225 | 1,400 | ||
Indiana Health & Edl. Facilities Fing. Auth. Rev. Bonds (Ascension Health Sr. Cr. Group Proj.) Series 2006 B1, 4.1%, tender 11/3/16 (d) | 4,000 | 4,264 | ||
Indiana Health Facility Fing. Auth. Rev. Bonds (Ascension Health Cr. Group Proj.) Series 2001 A2, 1.6%, tender 2/1/17 (d) | 2,200 | 2,235 | ||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2011 A: | ||||
5% 1/1/19 | 1,470 | 1,681 | ||
5% 1/1/20 | 1,250 | 1,456 | ||
Indiana State Fin. Auth. Wastewtr. Util. Rev. (CWA Auth. Proj.): | ||||
Series 2012 A: | ||||
5% 10/1/20 | 825 | 975 | ||
5% 10/1/22 | 1,600 | 1,921 | ||
Series 2014 A: | ||||
5% 10/1/20 | 375 | 438 | ||
5% 10/1/21 | 380 | 449 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Indiana State Fin. Auth. Wastewtr. Util. Rev. (CWA Auth. Proj.): - continued | ||||
5% 10/1/22 | $ 675 | $ 811 | ||
Indianapolis Local Pub. Impt. Bond Bank (Wtrwks. Proj.) Series F, 5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 515 | 527 | ||
Indianapolis Thermal Energy Sys. Series 2010 B: | ||||
5% 10/1/16 | 5,000 | 5,364 | ||
5% 10/1/17 | 5,000 | 5,523 | ||
Lake Central Multi-District School Bldg. Corp. Series 2012 B: | ||||
4% 1/15/19 | 1,000 | 1,098 | ||
4% 1/15/20 | 1,345 | 1,495 | ||
4% 1/15/21 | 1,250 | 1,392 | ||
5% 7/15/19 | 1,680 | 1,938 | ||
5% 7/15/20 | 1,170 | 1,374 | ||
5% 7/15/21 | 1,000 | 1,187 | ||
Purdue Univ. Rev.: | ||||
(Student Facilities Sys. Proj.) Series 2009 B: | ||||
4% 7/1/17 | 500 | 540 | ||
5% 7/1/15 | 315 | 322 | ||
5% 7/1/16 | 500 | 534 | ||
Series Z-1: | ||||
5% 7/1/16 | 1,215 | 1,297 | ||
5% 7/1/17 | 1,000 | 1,106 | ||
5% 7/1/18 | 1,500 | 1,706 | ||
Rockport Poll. Cont. Rev. Bonds (Indiana Michigan Pwr. Co. Proj. Series 2009 B, 1.75%, tender 6/1/18 (d) | 8,500 | 8,534 | ||
Univ. of Southern Indiana Rev. Series J: | ||||
5% 10/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,035 | ||
5% 10/1/16 (Assured Guaranty Corp. Insured) | 1,165 | 1,253 | ||
| 79,789 | |||
Iowa - 0.0% | ||||
Iowa Fin. Auth. Health Facilities Rev. Series 2005 A, 5% 2/15/16 (Assured Guaranty Corp. Insured) | 1,700 | 1,787 | ||
Kansas - 0.6% | ||||
Kansas Dev. Fin. Agcy. (Adventist Health Sys./Sunbelt Obligated Group Proj.) Series 2009 D: | ||||
5% 11/15/15 | 625 | 651 | ||
5% 11/15/16 | 875 | 946 | ||
Overland Park Sales Tax Spl. Oblig. Rev. Series 2012, 4.375% 12/15/23 | 3,100 | 3,141 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Kansas - continued | ||||
Wichita Hosp. Facilities Rev.: | ||||
(Via Christi Health Sys., Inc. Proj.) Series 2009 III A: | ||||
5% 11/15/15 (Escrowed to Maturity) | $ 6,245 | $ 6,501 | ||
5% 11/15/16 (Escrowed to Maturity) | 5,410 | 5,863 | ||
Series 2011 IV A: | ||||
5% 11/15/18 (Escrowed to Maturity) | 2,250 | 2,584 | ||
5% 11/15/20 (Escrowed to Maturity) | 2,745 | 3,282 | ||
| 22,968 | |||
Kentucky - 0.9% | ||||
Ashland Med. Ctr. Rev. (Ashland Hosp. Corp. d/b/a King's Daughters Med. Ctr. Proj.) Series 2010 B, 4% 2/1/15 | 1,495 | 1,499 | ||
Kentucky Econ. Dev. Fin. Auth. Bonds Series 2009 B, 2.7%, tender 11/10/21 (d) | 9,000 | 9,002 | ||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev. (Baptist Healthcare Sys. Proj.) Series A, 5% 8/15/15 | 4,000 | 4,105 | ||
Kentucky State Property & Buildings Commission Rev. (#82 Proj.) 5.25% 10/1/17 (FSA Insured) | 2,450 | 2,743 | ||
Louisville/Jefferson County Metropolitan Govt. Poll. Cont. Rev. Bonds (Louisville Gas and Elec. Co. Proj.): | ||||
Series 2003 A, 1.65%, tender 4/3/17 (d) | 6,000 | 6,086 | ||
Series 2007 B: | ||||
1.15%, tender 6/1/17 (d) | 2,600 | 2,590 | ||
1.6%, tender 6/1/17 (d) | 8,000 | 8,053 | ||
| 34,078 | |||
Louisiana - 1.1% | ||||
Louisiana Gas & Fuel Tax Rev. Bonds Series 2013 B, 0.579%, tender 5/1/17 (d) | 25,000 | 25,156 | ||
Louisiana Pub. Facilities Auth. Rev.: | ||||
(Christus Health Proj.) Series 2009 A, 5% 7/1/16 | 2,000 | 2,129 | ||
(Entergy Gulf States Louisiana LLC Proj.) Series 2010 B, 2.875% 11/1/15 | 3,000 | 3,058 | ||
Louisiana Stadium and Exposition District Series 2013 A: | ||||
5% 7/1/21 | 1,500 | 1,771 | ||
5% 7/1/22 | 1,000 | 1,192 | ||
New Orleans Gen. Oblig. Series 2012, 5% 12/1/20 | 2,800 | 3,195 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Louisiana - continued | ||||
Reg'l. Transit Auth. Louisiana Sales Tax Rev. 4% 12/1/16 (FSA Insured) | $ 1,000 | $ 1,056 | ||
Tobacco Settlement Fing. Corp. Series 2013 A, 5% 5/15/23 | 4,500 | 5,295 | ||
| 42,852 | |||
Maryland - 1.6% | ||||
Maryland Gen. Oblig.: | ||||
Series 2008 2, 5% 7/15/22 (Pre-Refunded to 7/15/18 @ 100) | 5,500 | 6,268 | ||
Series 2012 B, 5% 8/1/16 | 6,400 | 6,859 | ||
Maryland Health & Higher Edl. Facilities Auth. Rev. Bonds: | ||||
(Johns Hopkins Health Sys. Obligated Group Proj.) Series 2008 B, 5%, tender 5/15/15 (d) | 2,225 | 2,264 | ||
Series 2012 D, 0.9339%, tender 11/15/17 (d) | 14,000 | 14,137 | ||
Series 2013 A: | ||||
0.684%, tender 5/15/18 (d) | 4,800 | 4,832 | ||
0.705%, tender 5/15/18 (d) | 7,100 | 7,152 | ||
Montgomery County Gen. Oblig.: | ||||
(Dept. of Liquor Cont. Proj.) Series 2009 A, 5% 4/1/15 | 1,725 | 1,745 | ||
Series 2011 A, 5% 7/1/20 | 16,000 | 18,671 | ||
| 61,928 | |||
Massachusetts - 1.7% | ||||
Braintree Gen. Oblig. Series 2009, 5% 5/15/16 | 4,400 | 4,677 | ||
Massachusetts Bay Trans. Auth. Sales Tax Rev. Series 2006 B, 5.25% 7/1/18 | 2,300 | 2,630 | ||
Massachusetts Dept. of Trans. Metropolitan Hwy. Sys. Rev. Series 2010 B, 5% 1/1/15 | 12,400 | 12,402 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
(Boston College Proj.): | ||||
Series Q1: | ||||
4% 7/1/15 | 1,500 | 1,528 | ||
4% 7/1/16 | 1,000 | 1,053 | ||
Series Q2: | ||||
4% 7/1/15 | 1,170 | 1,192 | ||
4% 7/1/16 | 1,000 | 1,053 | ||
5% 7/1/17 | 1,370 | 1,513 | ||
(Tufts Med. Ctr. Proj.) Series I, 5% 1/1/16 | 1,300 | 1,352 | ||
Bonds Series 2013 U-6E, 0.59%, tender 9/30/16 (d) | 5,900 | 5,912 | ||
4.5% 11/15/18 (b) | 5,500 | 5,514 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Massachusetts - continued | ||||
Massachusetts Edl. Fing. Auth. Rev. Series 2013, 5% 7/1/19 (e) | $ 4,725 | $ 5,256 | ||
Massachusetts Gen. Oblig.: | ||||
Series 2004 B, 5.25% 8/1/20 | 12,700 | 15,183 | ||
Series 2006 D, 5% 8/1/22 (Pre-Refunded to 8/1/16 @ 100) | 4,500 | 4,822 | ||
Medford Gen. Oblig. Series 2011 B, 4% 3/1/19 | 3,570 | 3,892 | ||
| 67,979 | |||
Michigan - 3.5% | ||||
Detroit School District Series 2012 A: | ||||
5% 5/1/19 | 2,000 | 2,255 | ||
5% 5/1/20 | 2,000 | 2,286 | ||
5% 5/1/21 | 1,810 | 2,095 | ||
Detroit Swr. Disp. Rev. Series 2006 D, 0.757% 7/1/32 (d) | 4,070 | 3,432 | ||
Grand Blanc Cmnty. Schools Series 2013: | ||||
5% 5/1/19 | 1,225 | 1,396 | ||
5% 5/1/20 | 2,635 | 3,059 | ||
5% 5/1/21 | 2,150 | 2,527 | ||
5% 5/1/22 | 1,850 | 2,178 | ||
Grand Valley Michigan State Univ. Rev. Series 2009, 5% 12/1/16 | 1,320 | 1,428 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. (Spectrum Health Sys. Proj.) Series 2011 A: | ||||
5% 11/15/18 | 1,250 | 1,415 | ||
5% 11/15/19 | 1,000 | 1,147 | ||
Michigan Fin. Auth. Rev.: | ||||
Series 2008 B2, 5% 6/1/15 | 1,090 | 1,107 | ||
Series 2012 A: | ||||
5% 6/1/16 | 2,290 | 2,412 | ||
5% 6/1/17 | 1,410 | 1,532 | ||
5% 6/1/18 | 2,430 | 2,701 | ||
Michigan Hosp. Fin. Auth. Rev. Bonds: | ||||
Series 1999 B3, 0.3%, tender 11/15/33 | 25,000 | 24,997 | ||
Series 2005 A4, 1.625%, tender 11/1/19 (d) | 9,215 | 9,213 | ||
Series 2010 F3, 1.4%, tender 6/29/18 (d) | 1,900 | 1,913 | ||
Series 2010 F4, 1.95%, tender 4/1/20 (d) | 6,545 | 6,577 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Clean Wtr. Pooled Proj.) Series 2010: | ||||
5% 10/1/15 | 1,750 | 1,812 | ||
5% 10/1/15 | 3,250 | 3,366 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Michigan Muni. Bond Auth. Rev.: - continued | ||||
(Local Govt. Ln. Prog.) Series 2009 C: | ||||
5% 5/1/15 | $ 1,845 | $ 1,872 | ||
5% 5/1/16 | 1,865 | 1,958 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev.: | ||||
(William Beaumont Hosp. Oblig. Group Proj.) Series 2009 W, 5% 8/1/15 | 2,070 | 2,126 | ||
Series 2014 D: | ||||
5% 9/1/21 | 1,500 | 1,754 | ||
5% 9/1/23 | 500 | 593 | ||
Spring Lake Pub. Schools: | ||||
Series 2014, 5% 5/1/19 | 2,300 | 2,636 | ||
5% 11/1/19 | 2,775 | 3,209 | ||
5% 5/1/20 | 3,630 | 4,231 | ||
5% 11/1/20 | 1,745 | 2,060 | ||
5% 5/1/21 | 4,110 | 4,846 | ||
Univ. of Michigan Rev. Bonds 0.24%, tender 4/1/15 (d) | 30,870 | 30,872 | ||
West Bloomfield School District 5% 5/1/15 (Assured Guaranty Corp. Insured) | 1,400 | 1,421 | ||
Western Michigan Univ. Rev. 5.25% 11/15/15 (Assured Guaranty Corp. Insured) | 3,275 | 3,414 | ||
| 139,840 | |||
Minnesota - 0.4% | ||||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 2014 A: | ||||
5% 1/1/22 | 1,000 | 1,198 | ||
5% 1/1/23 | 1,000 | 1,210 | ||
Series 2014 B: | ||||
5% 1/1/21 (e) | 2,290 | 2,672 | ||
5% 1/1/22 (e) | 2,000 | 2,354 | ||
5% 1/1/23 (e) | 1,000 | 1,182 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Essentia Health Obligated Group Proj.) Series 2008 C1: | ||||
5% 2/15/15 (Assured Guaranty Corp. Insured) | 1,335 | 1,341 | ||
5% 2/15/16 (Assured Guaranty Corp. Insured) | 565 | 590 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev. Series 2009 A, 5% 1/1/15 (Assured Guaranty Corp. Insured) | 1,000 | 1,000 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev. Series 2009 A, 5% 1/1/16 | 1,000 | 1,046 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Minnesota - continued | ||||
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev. Series 2014 A: | ||||
5% 1/1/22 | $ 1,000 | $ 1,200 | ||
5% 1/1/23 | 1,500 | 1,816 | ||
5% 1/1/24 | 1,000 | 1,224 | ||
| 16,833 | |||
Mississippi - 0.5% | ||||
Mississippi Bus. Fin. Corp. Rev. Bonds (Pwr. Co. Proj.) Series 2010, 1.625%, tender 1/12/18 (d) | 12,400 | 12,496 | ||
Mississippi Gen. Oblig. (Cap. Impts. Proj.) Series 2012 D, 0.57% 9/1/17 (d) | 3,295 | 3,312 | ||
Mississippi Hsg. Fin. Corp. Single Family Mtg. Rev. Series 1983, 0% 6/1/15 (Escrowed to Maturity) | 4,000 | 3,996 | ||
| 19,804 | |||
Missouri - 0.0% | ||||
Saint Louis Arpt. Rev. Series 2013, 5% 7/1/18 | 765 | 861 | ||
Nebraska - 0.2% | ||||
Nebraska Pub. Pwr. District Rev.: | ||||
Series 2012 C, 5% 1/1/22 (Pre-Refunded to 1/1/18 @ 100) | 1,100 | 1,233 | ||
Series C: | ||||
4% 1/1/15 | 2,360 | 2,360 | ||
4% 1/1/16 | 2,195 | 2,274 | ||
| 5,867 | |||
Nevada - 2.7% | ||||
Clark County Arpt. Rev.: | ||||
Series 2008 E, 5% 7/1/15 | 3,500 | 3,581 | ||
Series 2013 C1, 2.5% 7/1/15 (e) | 12,400 | 12,529 | ||
Clark County School District: | ||||
Series 2005 A, 5% 6/15/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 21,215 | 21,858 | ||
Series 2012 A, 5% 6/15/19 | 24,610 | 28,355 | ||
Series 2014 A, 5.5% 6/15/16 | 2,700 | 2,895 | ||
Nevada Gen. Oblig.: | ||||
Series 2010 C, 5% 6/1/19 | 12,140 | 14,022 | ||
Series 2012 B, 5% 8/1/20 | 2,230 | 2,635 | ||
Series 2013 D1: | ||||
5% 3/1/22 | 11,250 | 13,538 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nevada - continued | ||||
Nevada Gen. Oblig.: - continued | ||||
5% 3/1/23 | $ 4,500 | $ 5,458 | ||
5% 3/1/24 | 2,700 | 3,228 | ||
| 108,099 | |||
New Hampshire - 0.3% | ||||
New Hampshire Health & Ed. Facilities Auth. Rev. Series 2012: | ||||
4% 7/1/20 | 2,705 | 2,856 | ||
4% 7/1/21 | 1,520 | 1,606 | ||
New Hampshire Tpk. Sys. Rev. Series 2012 B: | ||||
5% 2/1/17 | 3,000 | 3,258 | ||
5% 2/1/18 | 2,500 | 2,786 | ||
| 10,506 | |||
New Jersey - 6.2% | ||||
Camden County Impt. Auth. Health Care Redev. Rev. Series 2014 A: | ||||
5% 2/15/20 | 3,000 | 3,446 | ||
5% 2/15/21 | 2,500 | 2,900 | ||
5% 2/15/22 | 2,500 | 2,917 | ||
5% 2/15/23 | 2,750 | 3,221 | ||
New Jersey Ctfs. of Prtn.: | ||||
Series 2008 A, 5% 6/15/15 | 750 | 765 | ||
Series 2009 A: | ||||
5% 6/15/15 | 11,285 | 11,513 | ||
5% 6/15/16 | 6,500 | 6,894 | ||
New Jersey Econ. Dev. Auth. Rev.: | ||||
Series 2005 K, 5.5% 12/15/19 | 8,030 | 9,301 | ||
Series 2005 O, 5% 3/1/20 (Pre-Refunded to 3/1/15 @ 100) | 6,350 | 6,397 | ||
Series 2008 W, 5% 3/1/15 (Escrowed to Maturity) | 10,400 | 10,477 | ||
Series 2009 BB, 5% 9/1/15 (Escrowed to Maturity) | 3,390 | 3,497 | ||
Series 2011 EE, 5% 9/1/20 | 5,000 | 5,689 | ||
Series 2012 II, 5% 3/1/21 | 6,800 | 7,722 | ||
Series 2012, 5% 6/15/18 | 10,600 | 11,863 | ||
Series 2013 NN, 5% 3/1/19 | 8,165 | 9,143 | ||
Series 2014 PP, 5% 6/15/19 | 17,000 | 19,126 | ||
New Jersey Edl. Facility Series 2014: | ||||
5% 6/15/20 | 11,000 | 12,355 | ||
5% 6/15/21 | 11,000 | 12,431 | ||
New Jersey Gen. Oblig. Series O, 5.25% 8/1/22 | 3,930 | 4,731 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New Jersey - continued | ||||
New Jersey Higher Ed. Student Assistance Auth. Student Ln. Rev.: | ||||
Series 2010 1A, 5% 12/1/15 | $ 4,500 | $ 4,683 | ||
Series 2013: | ||||
5% 12/1/18 (e) | 6,000 | 6,684 | ||
5% 12/1/19 (e) | 3,850 | 4,301 | ||
New Jersey Tpk. Auth. Tpk. Rev.: | ||||
Bonds Series 2013 D, 0.57%, tender 1/1/16 (d) | 5,000 | 5,008 | ||
Series 1991 C, 6.5% 1/1/16 (Escrowed to Maturity) | 1,500 | 1,518 | ||
Series 2013 A, 5% 1/1/24 | 4,345 | 5,144 | ||
Series 2013 C, 0.52% 1/1/17 (d) | 16,000 | 16,072 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series 2003 A, 5.5% 12/15/16 (FSA Insured) | 5,000 | 5,448 | ||
Series 2003 B, 5.25% 12/15/19 | 3,870 | 4,445 | ||
Series 2003 B. 5.25% 12/15/19 | 5,500 | 6,317 | ||
Series 2012 AA, 5% 6/15/19 | 1,500 | 1,692 | ||
Series 2013 A: | ||||
5% 12/15/19 | 6,455 | 7,339 | ||
5% 6/15/20 | 18,000 | 20,462 | ||
New Jersey Transit Corp. Ctfs. of Prtn. Series 2014 A: | ||||
5% 9/15/15 | 5,250 | 5,417 | ||
5% 9/15/21 | 4,900 | 5,670 | ||
| 244,588 | |||
New Mexico - 1.2% | ||||
Farmington Poll. Cont. Rev. Bonds (Southern California Edison Co. Four Corners Proj.) Series 2005 B, 2.875%, tender 4/1/15 (d) | 22,325 | 22,448 | ||
New Mexico Edl. Assistance Foundation: | ||||
Series 2009 B, 4% 9/1/16 | 7,000 | 7,391 | ||
Series 2010 A1: | ||||
4% 12/1/15 | 3,700 | 3,823 | ||
4% 12/1/16 | 6,750 | 7,185 | ||
Rio Rancho Wtr. & Wastewtr. Sys. Rev. Series 2009, 5% 5/15/17 (FSA Insured) | 4,480 | 4,868 | ||
| 45,715 | |||
New York - 9.9% | ||||
Dutchess County Local Dev. Corp. Rev. (Health Quest Systems, Inc. Proj.) Series 2010 A: | ||||
5% 7/1/18 (Assured Guaranty Corp. Insured) (FSA Insured) | 1,100 | 1,218 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
Dutchess County Local Dev. Corp. Rev. (Health Quest Systems, Inc. Proj.) Series 2010 A: - continued | ||||
5% 7/1/19 (Assured Guaranty Corp. Insured) (FSA Insured) | $ 640 | $ 717 | ||
Metropolitan Trans. Auth. Svc. Contract Rev. Series 2002 A, 5.5% 7/1/17 | 5,000 | 5,572 | ||
New York City Gen. Oblig.: | ||||
Series 2005 F1, 5% 9/1/15 | 3,560 | 3,673 | ||
Series 2014 J, 3% 8/1/16 | 5,600 | 5,817 | ||
Series 2014 K, 3% 8/1/16 | 3,900 | 4,051 | ||
Series J8, 0.42% 8/1/21 (d) | 7,500 | 7,501 | ||
New York City Transitional Fin. Auth. Rev.: | ||||
Series 2003 B, 5% 2/1/20 | 3,000 | 3,509 | ||
Series 2010 B: | ||||
5% 11/1/17 | 11,740 | 13,087 | ||
5% 11/1/17 (Escrowed to Maturity) | 18,260 | 20,377 | ||
5% 11/1/20 | 5,950 | 6,930 | ||
Series 2010 D: | ||||
5% 11/1/15 (Escrowed to Maturity) | 890 | 925 | ||
5% 11/1/17 | 8,015 | 8,935 | ||
5% 11/1/17 (Escrowed to Maturity) | 2,100 | 2,350 | ||
Series 2012 A: | ||||
5% 11/1/17 | 6,180 | 6,889 | ||
5% 11/1/17 (Escrowed to Maturity) | 820 | 918 | ||
5% 11/1/20 | 4,500 | 5,330 | ||
New York Dorm. Auth. Mental Health Svcs. Facilities Impt. Rev.: | ||||
(State Univ. Proj.) Series 2012 A, 5% 5/15/20 | 4,000 | 4,691 | ||
Series 2012 A, 4% 5/15/20 | 8,000 | 8,973 | ||
New York Dorm. Auth. Personal Income Tax Rev.: | ||||
(Ed. Proj.) Series 2009 A, 5% 3/15/15 | 4,000 | 4,039 | ||
Series 2009 D, 5% 6/15/15 | 16,075 | 16,420 | ||
Series 2012 A, 5% 12/15/20 | 8,500 | 10,095 | ||
Series A: | ||||
5% 2/15/15 | 8,775 | 8,825 | ||
5% 2/15/15 (Escrowed to Maturity) | 5 | 5 | ||
New York Dorm. Auth. Revs.: | ||||
(Mental Health Svcs. Facilities Proj.) Series 2009 A1, 5% 2/15/15 | 9,000 | 9,052 | ||
Series 2008 B, 5% 7/1/15 | 30,000 | 30,702 | ||
Series 2008 D, 5.25% 8/15/17 (FSA Insured) | 7,000 | 7,775 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Dorm. Auth. Revs.: - continued | ||||
Series 2009 A: | ||||
5% 7/1/15 | $ 12,850 | $ 13,145 | ||
5% 7/1/16 | 8,390 | 8,959 | ||
New York Local Govt. Assistance Corp. Series 2003 A, 5% 4/1/18 | 12,400 | 13,980 | ||
New York Metropolitan Trans. Auth. Dedicated Tax Fund Rev. Series B, 5% 11/15/15 | 2,325 | 2,421 | ||
New York Metropolitan Trans. Auth. Rev.: | ||||
Bonds Series 2012 G2, 0.634%, tender 11/1/15 (d) | 13,300 | 13,315 | ||
Series 2003 B, 5.25% 11/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,200 | 6,089 | ||
Series 2008 B2: | ||||
5% 11/15/19 | 6,185 | 7,170 | ||
5% 11/15/20 | 5,500 | 6,478 | ||
5% 11/15/21 | 4,000 | 4,765 | ||
Series 2012 B, 5% 11/15/22 | 2,000 | 2,392 | ||
Series 2012 D, 5% 11/15/18 | 2,515 | 2,872 | ||
Series 2012 E: | ||||
4% 11/15/19 | 4,000 | 4,451 | ||
5% 11/15/21 | 2,435 | 2,901 | ||
Series 2012 F, 5% 11/15/19 | 5,000 | 5,797 | ||
New York Thruway Auth. Gen. Rev. Series 2013 A, 5% 5/1/19 | 20,400 | 23,347 | ||
New York Thruway Auth. Second Gen. Hwy. & Bridge Trust Fund: | ||||
Series 2010 A, 5% 4/1/17 | 1,000 | 1,094 | ||
Series 2011 A1: | ||||
5% 4/1/17 | 1,500 | 1,641 | ||
5% 4/1/18 | 3,500 | 3,936 | ||
New York Urban Dev. Corp. Rev.: | ||||
Series 2009 C, 5% 12/15/16 | 17,000 | 18,476 | ||
Series 2011 A, 5% 3/15/21 | 18,425 | 21,996 | ||
Tobacco Settlement Fing. Corp.: | ||||
Series 2011, 5% 6/1/16 | 20,000 | 21,294 | ||
Series 2013 B, 5% 6/1/21 | 3,400 | 3,601 | ||
Triborough Bridge & Tunnel Auth. Revs. Series Y, 5.5% 1/1/17 (Escrowed to Maturity) | 3,830 | 4,044 | ||
| 392,540 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
North Carolina - 2.1% | ||||
Dare County Ctfs. of Prtn. Series 2012 B: | ||||
4% 6/1/17 | $ 1,000 | $ 1,073 | ||
4% 6/1/18 | 1,280 | 1,399 | ||
4% 6/1/20 | 1,000 | 1,118 | ||
5% 6/1/19 | 1,305 | 1,500 | ||
Mecklenburg County Pub. Facilities Corp. Series 2009: | ||||
5% 3/1/16 | 5,870 | 6,190 | ||
5% 3/1/18 | 1,500 | 1,683 | ||
Nash Health Care Sys. Health Care Facilities Rev. Series 2003, 5% 11/1/15 (FSA Insured) | 1,600 | 1,642 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev. Series 2010 A: | ||||
5% 1/1/15 | 4,000 | 4,001 | ||
5% 1/1/16 | 6,035 | 6,304 | ||
North Carolina Gen. Oblig. Series 2014 A, 5% 6/1/16 | 8,095 | 8,619 | ||
North Carolina Grant Anticipation Rev. Series 2009, 5% 3/1/15 | 1,250 | 1,260 | ||
North Carolina Med. Care Commission Hosp. Rev. (North Carolina Baptist Hosp. Proj.) Series 2010: | ||||
5% 6/1/15 | 1,500 | 1,528 | ||
5% 6/1/16 | 1,000 | 1,060 | ||
5% 6/1/17 | 3,220 | 3,521 | ||
5% 6/1/18 | 3,820 | 4,274 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | ||||
Series 1998 A, 5.5% 1/1/15 | 3,675 | 3,676 | ||
Series 2008 A, 5.25% 1/1/20 | 2,000 | 2,247 | ||
Series 2012 A, 5% 1/1/18 | 18,705 | 20,860 | ||
Univ. of North Carolina at Chapel Hill Rev. Bonds Series 2012 A, 0.5539%, tender 12/1/15 (d) | 11,500 | 11,507 | ||
| 83,462 | |||
North Dakota - 0.0% | ||||
Grand Forks Health Care Sys. Rev. (Altru Health Sys. Proj.) Series 2005, 5% 12/1/15 (Assured Guaranty Corp. Insured) | 1,825 | 1,887 | ||
Ohio - 3.6% | ||||
American Muni. Pwr., Inc. Rev. Bonds Series B, 5%, tender 8/15/20 (c)(d) | 35,000 | 40,129 | ||
Buckeye Tobacco Settlement Fing. Auth. Series 2007 A1: | ||||
5% 6/1/16 | 3,035 | 3,210 | ||
5% 6/1/17 | 3,500 | 3,817 | ||
Cincinnati City School District 5.25% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,555 | 4,070 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Ohio - continued | ||||
Columbus City School District (School Facilities Construction and Impt. Proj.) Series 2009 B, 4% 12/1/16 | $ 1,000 | $ 1,066 | ||
Fairfield County Hosp. Facilities Rev. (Fairfield Med. Ctr. Proj.) Series 2013: | ||||
5% 6/15/22 | 2,145 | 2,438 | ||
5% 6/15/23 | 1,855 | 2,114 | ||
Hamilton County Convention Facilities Auth. Rev. Series 2014: | ||||
5% 12/1/19 | 1,910 | 2,187 | ||
5% 12/1/20 | 2,205 | 2,554 | ||
5% 12/1/21 | 2,045 | 2,380 | ||
Hamilton County Student Hsg. Rev. (Stratford Heights Proj.) Series 2010: | ||||
5% 6/1/15 (FSA Insured) | 760 | 774 | ||
5% 6/1/16 (FSA Insured) | 1,105 | 1,172 | ||
5% 6/1/17 (FSA Insured) | 1,160 | 1,233 | ||
Ohio Air Quality Dev. Auth. Rev.: | ||||
Bonds (First Energy Nuclear Generation Proj.) Series 2006 A, 3.75%, tender 12/3/18 (d) | 13,300 | 14,052 | ||
Series 2009 C, 5.625% 6/1/18 | 1,395 | 1,553 | ||
Ohio Bldg. Auth.: | ||||
(Administrative Bldg. Fund Proj.): | ||||
Series 2009 B, 5% 10/1/15 | 6,505 | 6,736 | ||
Series 2010 C: | ||||
4% 10/1/15 | 3,200 | 3,290 | ||
5% 10/1/16 | 1,250 | 1,347 | ||
(Adult Correctional Bldg. Fund Proj.): | ||||
Series 2009 B, 5% 10/1/15 | 4,535 | 4,696 | ||
Series 2010 A, 5% 10/1/15 | 1,185 | 1,227 | ||
Ohio Gen. Oblig.: | ||||
(Common Schools Proj.) Series 2010 A, 5% 9/15/17 | 2,600 | 2,889 | ||
(Higher Ed. Proj.) Series 2010 A, 5% 8/1/17 | 3,290 | 3,642 | ||
Series 2011 A, 5% 8/1/17 | 3,070 | 3,398 | ||
Series 2012 C, 5% 9/15/21 | 4,350 | 5,236 | ||
Series 2013 B, 4% 6/15/16 | 2,200 | 2,313 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Cleveland Clinic Foundation Proj.) Series 2008 A, 5% 1/1/15 | 2,000 | 2,000 | ||
(Univ. Hosp. Health Sys. Proj.) Series 2010 A: | ||||
5% 1/15/15 | 500 | 501 | ||
5% 1/15/17 | 1,000 | 1,082 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Ohio - continued | ||||
Ohio Higher Edl. Facility Commission Rev.: - continued | ||||
Series 2013 A2, 0.24% 1/1/15 (d) | $ 1,430 | $ 1,430 | ||
Ohio State Univ. Gen. Receipts Series 2010 A: | ||||
5% 12/1/16 | 4,720 | 5,120 | ||
5% 12/1/16 (Escrowed to Maturity) | 280 | 304 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds: | ||||
(FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (d) | 10,225 | 10,867 | ||
(FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 B, 3.375%, tender 7/1/15 (d) | 5,000 | 5,063 | ||
| 143,890 | |||
Oklahoma - 0.3% | ||||
Oklahoma Dev. Fin. Auth. Rev.: | ||||
(Saint John Health Sys. Proj.) Series 2012, 5% 2/15/23 | 2,600 | 3,036 | ||
Series 2004 A, 2.375% 12/1/21 | 1,350 | 1,374 | ||
Series 2012, 5% 2/15/21 | 1,600 | 1,868 | ||
Tulsa County Indl. Auth. Edl. Facilities Lease Rev. (Jenks Pub. Schools Proj.) Series 2009, 5.5% 9/1/18 | 5,215 | 5,988 | ||
| 12,266 | |||
Oregon - 0.1% | ||||
Oregon Facilities Auth. Rev. (Legacy Health Sys. Proj.) Series 2009 A: | ||||
5% 3/15/15 | 2,500 | 2,523 | ||
5% 3/15/16 | 1,750 | 1,843 | ||
| 4,366 | |||
Pennsylvania - 5.1% | ||||
Allegheny County Arpt. Auth. Rev. Series A: | ||||
5% 1/1/15 (FSA Insured) (e) | 1,000 | 1,000 | ||
5% 1/1/16 (FSA Insured) (e) | 1,000 | 1,045 | ||
Allegheny County Hosp. Dev. Auth. Rev. (Univ. of Pittsburgh Med. Ctr. Proj.) Series 2009 A, 4% 8/15/15 | 1,385 | 1,417 | ||
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.): | ||||
Series 2005 A, 3.375%, tender 7/1/15 (d) | 2,000 | 2,025 | ||
Series 2006 A, 3.5%, tender 6/1/20 (d) | 5,250 | 5,406 | ||
Series 2006 B, 3.5%, tender 6/1/20 (d) | 6,000 | 6,179 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Econ. Dev. Fin. Auth. Unemployment Compensation Rev. Series 2012 B: | ||||
5% 1/1/22 | $ 5,000 | $ 5,512 | ||
5% 7/1/22 | 5,200 | 5,543 | ||
5% 1/1/23 | 3,000 | 3,137 | ||
5% 7/1/23 | 1,650 | 1,689 | ||
Franklin County Indl. Dev. Auth. (The Chambersburg Hosp. Proj.) Series 2010: | ||||
5% 7/1/16 | 1,000 | 1,064 | ||
5% 7/1/17 | 1,255 | 1,376 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.) Series 2009 A, 5% 6/1/17 | 2,200 | 2,401 | ||
Montgomery County Higher Ed. & Health Auth. Rev. Series 2014 A: | ||||
4% 10/1/18 | 1,000 | 1,082 | ||
4% 10/1/19 | 660 | 717 | ||
5% 10/1/20 | 1,260 | 1,431 | ||
Pennsylvania Econ. Dev. Auth. Governmental Lease (Forum Place Proj.) Series 2012: | ||||
5% 3/1/18 | 2,455 | 2,707 | ||
5% 3/1/19 | 2,310 | 2,589 | ||
5% 3/1/20 | 2,140 | 2,434 | ||
Pennsylvania Gen. Oblig.: | ||||
Series 2006 1, 5% 10/1/19 (Pre-Refunded to 10/1/16 @ 100) | 7,000 | 7,554 | ||
Series 2010 A3, 5% 7/15/16 | 3,900 | 4,170 | ||
Series 2011, 5% 7/1/21 | 1,900 | 2,264 | ||
Series 2013 1, 5% 4/1/16 | 2,655 | 2,807 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev. Series 2014: | ||||
5% 12/1/19 | 340 | 396 | ||
5% 12/1/21 | 275 | 327 | ||
5% 12/1/22 | 855 | 1,030 | ||
Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev. (City of Philadelphia Fdg. Prog.) Series 2009, 5% 6/15/15 | 10,600 | 10,828 | ||
Pennsylvania Tpk. Commission Tpk. Rev.: | ||||
Series 2009 B, 5% 12/1/17 | 12,500 | 13,942 | ||
Series 2013 A, 0.64% 12/1/17 (d) | 6,400 | 6,437 | ||
Philadelphia Gas Works Rev.: | ||||
(1998 Gen. Ordinance Proj.) Eighth Series A, 5% 8/1/15 | 2,100 | 2,146 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Philadelphia Gas Works Rev.: - continued | ||||
Eighth Series A, 5% 8/1/16 | $ 1,000 | $ 1,067 | ||
Seventeenth Series: | ||||
5.375% 7/1/15 (FSA Insured) | 2,000 | 2,044 | ||
5.375% 7/1/16 (FSA Insured) | 2,300 | 2,437 | ||
Philadelphia Gen. Oblig.: | ||||
Series 2008 A: | ||||
5% 12/15/15 (FSA Insured) | 5,000 | 5,217 | ||
5% 12/15/16 (FSA Insured) | 7,275 | 7,871 | ||
Series 2011: | ||||
5.25% 8/1/17 | 6,165 | 6,800 | ||
5.25% 8/1/18 | 5,515 | 6,237 | ||
Philadelphia Muni. Auth. Rev. Series 2013 A: | ||||
5% 11/15/17 | 6,635 | 7,339 | ||
5% 11/15/18 | 3,430 | 3,877 | ||
Philadelphia School District Series 2010 C, 5% 9/1/16 | 13,610 | 14,565 | ||
Philadelphia Wtr. & Wastewtr. Rev. Series 2010 A: | ||||
5% 6/15/15 | 15,000 | 15,314 | ||
5% 6/15/16 | 6,000 | 6,390 | ||
Pittsburgh & Allegheny County Sports & Exhibition Auth. Series 2010: | ||||
5% 2/1/15 (FSA Insured) | 4,580 | 4,597 | ||
5% 2/1/16 (FSA Insured) | 5,620 | 5,891 | ||
Pittsburgh School District Series 2010 A: | ||||
4% 9/1/15 | 1,405 | 1,439 | ||
4% 9/1/15 (Escrowed to Maturity) | 45 | 46 | ||
5% 9/1/16 (FSA Insured) | 1,685 | 1,807 | ||
Saint Mary Hosp. Auth. Health Sys. Rev. (Catholic Health East Proj.) Series 2010 B, 5% 11/15/15 | 2,420 | 2,520 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2011: | ||||
5% 6/1/18 | 1,000 | 1,119 | ||
5% 6/1/19 | 200 | 228 | ||
State Pub. School Bldg. Auth. Lease Rev. (Philadelphia School District Proj.) Series 2012: | ||||
5% 4/1/19 | 1,305 | 1,453 | ||
5% 4/1/20 | 1,250 | 1,410 | ||
5% 4/1/21 | 1,000 | 1,140 | ||
Unionville-Chadds Ford School District Gen. Oblig. Series 2009, 5% 6/1/20 | 1,190 | 1,374 | ||
| 202,837 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Rhode Island - 0.3% | ||||
Rhode Island Econ. Dev. Corp. Rev. (Dept. of Trans. Proj.) Series 2009 A: | ||||
5% 6/15/15 (Assured Guaranty Corp. Insured) | $ 2,010 | $ 2,049 | ||
5% 6/15/16 (Assured Guaranty Corp. Insured) | 6,625 | 7,017 | ||
Rhode Island Health & Edl. Bldg. Corp. Higher Ed. Facilities Rev. Series 2013 A: | ||||
5% 5/15/18 | 1,000 | 1,099 | ||
5% 5/15/19 | 1,500 | 1,670 | ||
| 11,835 | |||
South Carolina - 0.6% | ||||
Lexington County Health Svcs. District, Inc. Hosp. Rev. Series 2011, 5% 11/1/19 | 1,190 | 1,358 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
Series 2012 B: | ||||
5% 12/1/17 | 2,000 | 2,232 | ||
5% 12/1/20 | 1,000 | 1,177 | ||
Series 2012 C, 5% 12/1/17 | 10,535 | 11,757 | ||
Series 2014 C: | ||||
5% 12/1/22 | 1,100 | 1,318 | ||
5% 12/1/23 | 5,000 | 6,041 | ||
| 23,883 | |||
South Dakota - 0.2% | ||||
South Dakota Health & Edl. Facilities Auth. Rev.: | ||||
(Reg'l. Health Proj.) Series 2010: | ||||
5% 9/1/15 | 680 | 700 | ||
5% 9/1/16 | 500 | 534 | ||
5% 9/1/17 | 490 | 539 | ||
Series 2011: | ||||
5% 9/1/17 | 1,100 | 1,210 | ||
5% 9/1/18 | 1,200 | 1,351 | ||
5% 9/1/19 | 1,255 | 1,436 | ||
Series 2014 B: | ||||
4% 11/1/19 | 400 | 444 | ||
4% 11/1/20 | 625 | 696 | ||
4% 11/1/21 | 500 | 558 | ||
5% 11/1/22 | 375 | 445 | ||
| 7,913 | |||
Tennessee - 0.4% | ||||
Knox County Health Edl. & Hsg. Facilities Series 2012 A: | ||||
5% 1/1/19 | 1,925 | 2,178 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Tennessee - continued | ||||
Knox County Health Edl. & Hsg. Facilities Series 2012 A: - continued | ||||
5% 1/1/20 | $ 2,500 | $ 2,875 | ||
5% 1/1/21 | 2,500 | 2,913 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series 2010 B, 5% 7/1/16 (e) | 1,730 | 1,839 | ||
Metropolitan Nashville Arpt. Auth. Rev. Series 2010 A: | ||||
5% 7/1/16 | 1,815 | 1,936 | ||
5% 7/1/17 | 1,100 | 1,213 | ||
Shelby County Health Edl. & Hsg. Facilities Board Rev. Series 2004 A, 5% 9/1/15 | 3,125 | 3,219 | ||
| 16,173 | |||
Texas - 7.3% | ||||
Austin Cmnty. College District Pub. Facilities Lease Rev. (Round Rock Campus Proj.) Series 2008, 5.25% 8/1/15 | 2,585 | 2,660 | ||
Austin Elec. Util. Sys. Rev.: | ||||
Series A, 5% 11/15/15 | 1,000 | 1,040 | ||
0% 5/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,500 | 4,313 | ||
Austin Independent School District Series 2004, 5% 8/1/17 | 1,450 | 1,607 | ||
Austin Wtr. & Wastewtr. Sys. Rev. Series 2009 A, 5% 11/15/15 | 2,250 | 2,343 | ||
Brownsville Util. Sys. Rev. Series 2008 A, 5% 9/1/15 (FSA Insured) | 2,665 | 2,746 | ||
Carroll Independent School District Series 2009 C, 5.25% 2/15/19 | 1,000 | 1,151 | ||
Dallas Fort Worth Int'l. Arpt. Rev.: | ||||
Series 2009 A, 5% 11/1/15 | 5,000 | 5,194 | ||
Series 2013 F: | ||||
5% 11/1/19 | 2,000 | 2,323 | ||
5% 11/1/20 | 1,500 | 1,770 | ||
5% 11/1/21 | 3,000 | 3,582 | ||
5% 11/1/22 | 5,000 | 6,001 | ||
Dallas Independent School District Series 2014 A, 4% 8/15/16 | 9,280 | 9,806 | ||
Dallas Wtrwks. & Swr. Sys. Rev. Series 2011, 5% 10/1/18 | 1,600 | 1,826 | ||
Fort Worth Independent School District Series 2009, 5% 2/15/16 | 3,690 | 3,883 | ||
Grapevine Gen. Oblig. Series 2009, 5% 2/15/16 | 1,375 | 1,447 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Harris County Cultural Ed. Facilities Fin. Corp. Rev. (Memorial Hermann Health Sys. Proj.) Series 2013 B: | ||||
0.34% 6/1/15 (d) | $ 1,465 | $ 1,465 | ||
0.44% 6/1/16 (d) | 1,590 | 1,592 | ||
Harris County Cultural Ed. Facilities Fin. Corp. Thermal Util. Rev. (TECO Proj.) Series 2009 A, 5% 11/15/16 | 500 | 535 | ||
Harris County Gen. Oblig.: | ||||
Bonds Series 2012 B, 0.63%, tender 8/15/15 (d) | 10,470 | 10,473 | ||
Series 2012 A, 0.47% 8/15/15 (d) | 1,300 | 1,302 | ||
Houston Arpt. Sys. Rev.: | ||||
Series 2011 A, 5% 7/1/17 (e) | 7,380 | 8,090 | ||
Series 2012 A, 5% 7/1/23 (e) | 2,000 | 2,353 | ||
Series A: | ||||
5% 7/1/15 | 2,070 | 2,119 | ||
5% 7/1/16 | 1,080 | 1,154 | ||
Houston Independent School District Series 2005 A, 0% 2/15/16 | 4,500 | 4,482 | ||
Houston Util. Sys. Rev.: | ||||
Bonds Series 2012 C, 0.64%, tender 8/1/16 (d) | 9,200 | 9,230 | ||
5% 5/15/22 | 5,000 | 6,041 | ||
5% 5/15/23 | 7,000 | 8,549 | ||
Klein Independent School District Series 2009 A, 5% 8/1/16 | 2,195 | 2,350 | ||
Lewisville Independent School District Series 2009, 5% 8/15/17 | 1,170 | 1,296 | ||
Lone Star College Sys. Gen. Oblig. Series 2010 A, 5% 8/15/22 | 2,500 | 2,508 | ||
Lower Colorado River Auth. Rev.: | ||||
Series 2010, 5% 5/15/17 | 2,805 | 3,078 | ||
5% 5/15/15 | 2,120 | 2,157 | ||
5% 5/15/15 (Escrowed to Maturity) | 5 | 5 | ||
5% 5/15/16 | 2,355 | 2,500 | ||
5% 5/15/16 (Escrowed to Maturity) | 5 | 5 | ||
Lower Colorado River Auth. Transmission Contract Rev. (LCRA Transmission Svcs. Corp. Proj.) Series 2010, 5% 5/15/18 | 3,140 | 3,518 | ||
Lubbock Health Facilities Dev. Corp. Rev. (St. Joseph Health Sys. Proj.) Series 2008 B: | ||||
5% 7/1/17 | 2,800 | 3,076 | ||
5% 7/1/18 | 3,030 | 3,413 | ||
Mansfield Independent School District Series 2009, 4% 2/15/17 | 1,840 | 1,956 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
North Harris County Reg'l. Wtr. Auth. Series 2013, 4% 12/15/22 | $ 1,580 | $ 1,755 | ||
North Texas Tollway Auth. Rev. Bonds Series 2012 C, 1.95%, tender 1/1/19 (d) | 8,500 | 8,621 | ||
Northside Independent School District Bonds: | ||||
Series 2011 A, 2%, tender 6/1/19 (d) | 6,500 | 6,585 | ||
1%, tender 6/1/16 (d) | 20,000 | 20,134 | ||
1.2%, tender 8/1/17 (d) | 29,415 | 29,519 | ||
Sam Rayburn Muni. Pwr. Agcy. Series 2012, 5% 10/1/20 | 1,000 | 1,168 | ||
San Antonio Elec. & Gas Sys. Rev. Series 2006 A, 5% 2/1/25 (Pre-Refunded to 2/1/16 @ 100) | 3,400 | 3,573 | ||
San Antonio Pub. Facilities Corp. and Rfdg. Lease (Convention Ctr. Proj.) Series 2012: | ||||
5% 9/15/20 | 1,000 | 1,164 | ||
5% 9/15/21 | 1,000 | 1,179 | ||
5% 9/15/22 | 3,440 | 4,070 | ||
San Antonio Wtr. Sys. Rev. Series 2012: | ||||
4% 5/15/19 | 1,500 | 1,670 | ||
5% 5/15/20 | 6,000 | 7,067 | ||
5% 5/15/21 | 5,000 | 5,960 | ||
San Jacinto Cmnty. College District Series 2009: | ||||
5% 2/15/15 | 2,220 | 2,233 | ||
5% 2/15/15 (Escrowed to Maturity) | 280 | 281 | ||
5% 2/15/16 | 2,000 | 2,104 | ||
Southwest Higher Ed. Auth. Rev. (Southern Methodist Univ. Proj.) Series 2009, 5% 10/1/16 | 5,795 | 6,241 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev.: | ||||
(Scott & White Healthcare Proj.) Series 2013 A: | ||||
5% 8/15/21 | 750 | 884 | ||
5% 8/15/23 | 1,000 | 1,187 | ||
Series 2013: | ||||
4% 9/1/18 | 400 | 435 | ||
5% 9/1/19 | 655 | 748 | ||
5% 9/1/20 | 915 | 1,060 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Rev.: | ||||
5.75% 7/1/18 | 2,600 | 2,872 | ||
5.75% 7/1/18 (Pre-Refunded to 7/1/16 @ 100) | 810 | 833 | ||
Texas Gen. Oblig.: | ||||
Series 2006, 5% 4/1/27 (Pre-Refunded to 4/1/16 @ 100) | 3,700 | 3,920 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Texas Gen. Oblig.: - continued | ||||
Series 2009 A, 5% 10/1/16 | $ 3,400 | $ 3,665 | ||
Series 2014, 5% 10/1/16 | 10,645 | 11,474 | ||
Texas Muni. Pwr. Agcy. Rev. Series 2010: | ||||
5% 9/1/15 | 835 | 860 | ||
5% 9/1/16 | 750 | 803 | ||
Texas Pub. Fin. Auth. Rev. Series 2014 B: | ||||
4% 7/1/17 | 2,100 | 2,243 | ||
4% 7/1/18 | 2,200 | 2,277 | ||
Texas Trans. Commission Central Texas Tpk. Sys. Rev. Bonds Series 2012 B, 1.25%, tender 2/15/15 (d) | 6,300 | 6,306 | ||
Texas Trans. Commission State Hwy. Fund Rev. Series 2007, 5% 4/1/25 | 2,200 | 2,394 | ||
Tomball Independent School District 5% 2/15/17 (Assured Guaranty Corp. Insured) | 1,105 | 1,192 | ||
Univ. of Texas Board of Regents Sys. Rev.: | ||||
Series 2006 B, 5% 8/15/24 (Pre-Refunded to 8/15/16 @ 100) | 5,975 | 6,403 | ||
Series 2010 B, 5% 8/15/21 | 1,800 | 2,170 | ||
| 289,989 | |||
Utah - 0.2% | ||||
Utah Associated Muni. Pwr. Sys. Rev. (Payson Pwr. Proj.) 5% 9/1/17 | 1,090 | 1,194 | ||
Utah Gen. Oblig. Series 2009 C, 5% 7/1/16 | 5,555 | 5,931 | ||
| 7,125 | |||
Vermont - 0.1% | ||||
Vermont Edl. & Health Bldg. Fin. Agcy. Rev. (Fletcher Allen Health Care Proj.) Series 2004 B, 5% 12/1/15 (FSA Insured) | 2,225 | 2,310 | ||
Virgin Islands - 0.1% | ||||
Virgin Islands Pub. Fin. Auth. Series 2009 B, 5% 10/1/15 | 5,000 | 5,144 | ||
Virginia - 0.4% | ||||
Chesapeake Trans. Sys. Toll Road Rev. Series 2012 A: | ||||
4% 7/15/20 | 605 | 669 | ||
5% 7/15/21 | 400 | 458 | ||
Fredericksburg Econ. Dev. Auth. Rev. Series 2014, 5% 6/15/24 | 2,340 | 2,729 | ||
Virginia Commonwealth Trans. Board Rev. (U.S. Route 58 Corridor Dev. Prog.) Series 2014 B, 5% 5/15/16 | 2,100 | 2,231 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Virginia - continued | ||||
Virginia Pub. School Auth.: | ||||
Series ll, 5% 4/15/16 | $ 2,600 | $ 2,754 | ||
Series Xll, 5% 4/15/16 | 3,940 | 4,173 | ||
York County Econ. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. and Pwr. Co. Proj.) Series 2009 A, 1.875%, tender 5/16/19 (d) | 2,500 | 2,544 | ||
| 15,558 | |||
Washington - 2.8% | ||||
Energy Northwest Elec. Rev. Series 2012 A, 5% 7/1/19 | 40,000 | 46,278 | ||
Grant County Pub. Util. District #2 Series 2012 A: | ||||
5% 1/1/20 | 1,375 | 1,608 | ||
5% 1/1/21 | 1,865 | 2,219 | ||
King County Highline School District # 401 Series 2009: | ||||
5% 12/1/16 | 6,350 | 6,880 | ||
5% 12/1/17 | 2,950 | 3,290 | ||
Port of Seattle Passenger Facilities Charge Rev. Series 2010 B, 5% 12/1/16 (e) | 2,500 | 2,699 | ||
Port of Seattle Rev. Series 2010 C: | ||||
5% 2/1/16 (e) | 2,000 | 2,097 | ||
5% 2/1/17 (e) | 2,500 | 2,705 | ||
Seattle Muni. Lt. & Pwr. Rev. Series 2010 B, 5% 2/1/17 | 2,000 | 2,175 | ||
Spokane County Wastewtr. Sys. Rev. Series 2009 A, 5% 12/1/15 | 1,710 | 1,784 | ||
Tacoma Elec. Sys. Rev. Series 2013 A: | ||||
4% 1/1/20 | 5,000 | 5,586 | ||
4% 1/1/21 | 2,000 | 2,251 | ||
5% 1/1/20 | 3,000 | 3,503 | ||
5% 1/1/21 | 1,770 | 2,098 | ||
Washington Gen. Oblig.: | ||||
Series 2012 AR, 5% 7/1/18 | 5,000 | 5,665 | ||
Series 2015 AR, 5% 7/1/18 | 18,720 | 21,210 | ||
| 112,048 | |||
West Virginia - 0.2% | ||||
West Virginia Econ. Dev. Auth. Solid Waste Disp. Facilities Rev. Bonds Series 2011 A, 2.25%, tender 9/1/16 (d)(e) | 7,000 | 7,108 | ||
Wisconsin - 0.7% | ||||
Madison Gen. Oblig. Series 2014 A, 5% 10/1/21 | 3,215 | 3,872 | ||
Milwaukee County Arpt. Rev.: | ||||
Series 2010 B, 5% 12/1/15 (e) | 1,720 | 1,793 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Wisconsin - continued | ||||
Milwaukee County Arpt. Rev.: - continued | ||||
Series 2013 A: | ||||
5% 12/1/20 (e) | $ 1,330 | $ 1,545 | ||
5% 12/1/22 (e) | 1,470 | 1,724 | ||
5.25% 12/1/23 (e) | 1,540 | 1,850 | ||
Wisconsin Gen. Oblig.: | ||||
Series 2005 D, 5% 5/1/19 (Pre-Refunded to 5/1/16 @ 100) | 2,260 | 2,399 | ||
Series 2014 B, 5% 5/1/16 | 2,600 | 2,757 | ||
Wisconsin Health & Edl. Facilities Series 2014: | ||||
4% 5/1/18 | 375 | 402 | ||
4% 5/1/19 | 285 | 306 | ||
5% 5/1/20 | 410 | 460 | ||
5% 5/1/21 | 640 | 719 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Agnesian HealthCare, Inc. Proj.) Series 2010, 5% 7/1/16 | 1,175 | 1,243 | ||
(Aurora Health Care, Inc. Proj.) Series 2010 A, 5% 4/15/17 | 1,500 | 1,625 | ||
(Thedacare, Inc. Proj.) Series 2010: | ||||
5% 12/15/15 | 1,105 | 1,154 | ||
5% 12/15/16 | 1,440 | 1,557 | ||
5% 12/15/17 | 1,540 | 1,712 | ||
Series 2012, 5% 10/1/21 | 1,400 | 1,644 | ||
| 26,762 | |||
TOTAL MUNICIPAL BONDS (Cost $3,621,419) |
|
Municipal Notes - 2.2% | |||
|
|
|
|
Connecticut - 0.4% | |||
Hartford Gen. Oblig. BAN 2% 10/27/15 | 14,200 | 14,383 | |
Louisiana - 1.0% | |||
Saint James Parish Gen. Oblig. (Nucor Steel Louisiana LLC Proj.): | |||
Series 2010 A1, 0.22% 1/7/15, VRDN (d) | 4,300 | 4,300 | |
Series 2010 B1, 0.2% 1/7/15, VRDN (d) | 35,600 | 35,600 | |
| 39,900 | ||
New York - 0.7% | |||
Monroe County Gen. Oblig. BAN Series 2014, 1% 7/1/15 | 17,700 | 17,738 | |
Municipal Notes - continued | |||
Principal Amount (000s) | Value (000s) | ||
New York - continued | |||
Oyster Bay Gen. Oblig. TAN Series 2014, 1% 3/27/15 | $ 8,300 | $ 8,309 | |
Rockland County Gen. Oblig. TAN Series 2014, 2% 3/17/15 | 1,900 | 1,905 | |
| 27,952 | ||
North Carolina - 0.1% | |||
Hertford County Indl. Facilities Poll. Cont. Fing. Auth. (Nucor Corp. Proj.) Series 2000 A, 0.22% 1/7/15, VRDN (d)(e) | 5,900 | 5,900 | |
TOTAL MUNICIPAL NOTES (Cost $88,129) |
| ||
TOTAL INVESTMENT PORTFOLIO - 95.4% (Cost $3,709,548) | 3,791,440 | ||
NET OTHER ASSETS (LIABILITIES) - 4.6% | 184,752 | ||
NET ASSETS - 100% | $ 3,976,192 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
TAN | - | TAX ANTICIPATION NOTE |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
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 exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $5,514,000 or 0.1% of net assets. |
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
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 |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 38.1% |
Electric Utilities | 12.5% |
Transportation | 9.9% |
Special Tax | 9.4% |
Health Care | 8.7% |
Others* (Individually Less Than 5%) | 21.4% |
| 100.0% |
* Includes net other assets
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | December 31, 2014 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $3,709,548) |
| $ 3,791,440 |
Cash |
| 220,509 |
Receivable for fund shares sold | 6,616 | |
Interest receivable | 39,359 | |
Prepaid expenses | 8 | |
Other receivables | 19 | |
Total assets | 4,057,951 | |
|
|
|
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 65,719 | |
Payable for fund shares redeemed | 12,548 | |
Distributions payable | 1,295 | |
Accrued management fee | 1,195 | |
Distribution and service plan fees payable | 142 | |
Other affiliated payables | 809 | |
Other payables and accrued expenses | 51 | |
Total liabilities | 81,759 | |
|
|
|
Net Assets | $ 3,976,192 | |
Net Assets consist of: |
| |
Paid in capital | $ 3,893,079 | |
Undistributed net investment income | 112 | |
Accumulated undistributed net realized gain (loss) on investments | 1,109 | |
Net unrealized appreciation (depreciation) on investments | 81,892 | |
Net Assets | $ 3,976,192 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Assets and Liabilities - continued
Amounts in thousands (except per-share amounts) | December 31, 2014 | |
Calculation of Maximum Offering Price Class A: | $ 10.71 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.71) | $ 11.01 | |
Class T: | $ 10.69 | |
|
|
|
Maximum offering price per share (100/97.25 of $10.69) | $ 10.99 | |
Class B: | $ 10.71 | |
|
|
|
Class C: | $ 10.69 | |
|
|
|
Limited Term Municipal Income: | $ 10.69 | |
|
|
|
Institutional Class: | $ 10.70 |
A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended December 31, 2014 | |
Investment Income |
|
|
Interest |
| $ 85,036 |
Income from Fidelity Central Funds |
| 2 |
Total income |
| 85,038 |
|
|
|
Expenses | ||
Management fee | $ 13,872 | |
Transfer agent fees | 4,054 | |
Distribution and service plan fees | 1,555 | |
Accounting fees and expenses | 611 | |
Custodian fees and expenses | 48 | |
Independent trustees' compensation | 17 | |
Registration fees | 184 | |
Audit | 59 | |
Legal | 9 | |
Miscellaneous | 30 | |
Total expenses before reductions | 20,439 | |
Expense reductions | (60) | 20,379 |
Net investment income (loss) | 64,659 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 4,731 |
Change in net unrealized appreciation (depreciation) on investment securities | 12,153 | |
Net gain (loss) | 16,884 | |
Net increase (decrease) in net assets resulting from operations | $ 81,543 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 64,659 | $ 71,632 |
Net realized gain (loss) | 4,731 | 5,964 |
Change in net unrealized appreciation (depreciation) | 12,153 | (76,421) |
Net increase (decrease) in net assets resulting | 81,543 | 1,175 |
Distributions to shareholders from net investment income | (64,660) | (71,638) |
Distributions to shareholders from net realized gain | (5,775) | (3,714) |
Total distributions | (70,435) | (75,352) |
Share transactions - net increase (decrease) | 176,760 | (480,013) |
Redemption fees | 43 | 46 |
Total increase (decrease) in net assets | 187,911 | (554,144) |
|
|
|
Net Assets | ||
Beginning of period | 3,788,281 | 4,342,425 |
End of period (including undistributed net investment income of $112 and undistributed net investment income of $50, respectively) | $ 3,976,192 | $ 3,788,281 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.68 | $ 10.86 | $ 10.83 | $ 10.62 | $ 10.64 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .153 | .158 | .164 | .198 | .209 |
Net realized and unrealized gain (loss) | .046 | (.170) | .034 | .225 | (.016) |
Total from investment operations | .199 | (.012) | .198 | .423 | .193 |
Distributions from net investment income | (.153) | (.158) | (.156) | (.205) | (.209) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.169) | (.168) | (.168) | (.213) | (.213) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.71 | $ 10.68 | $ 10.86 | $ 10.83 | $ 10.62 |
Total Return A, B | 1.87% | (.11)% | 1.84% | 4.03% | 1.81% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | .79% | .78% | .79% | .77% | .78% |
Expenses net of fee waivers, if any | .79% | .78% | .79% | .77% | .78% |
Expenses net of all reductions | .79% | .78% | .78% | .77% | .77% |
Net investment income (loss) | 1.42% | 1.47% | 1.51% | 1.85% | 1.95% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 397 | $ 318 | $ 394 | $ 336 | $ 200 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class T
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 | $ 10.63 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .157 | .162 | .166 | .199 | .211 |
Net realized and unrealized gain (loss) | .046 | (.180) | .044 | .226 | (.026) |
Total from investment operations | .203 | (.018) | .210 | .425 | .185 |
Distributions from net investment income | (.157) | (.162) | (.158) | (.207) | (.211) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.173) | (.172) | (.170) | (.215) | (.215) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.69 | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 |
Total Return A, B | 1.91% | (.17)% | 1.95% | 4.05% | 1.74% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | .76% | .75% | .77% | .76% | .76% |
Expenses net of fee waivers, if any | .76% | .75% | .77% | .76% | .76% |
Expenses net of all reductions | .75% | .75% | .76% | .76% | .75% |
Net investment income (loss) | 1.46% | 1.50% | 1.52% | 1.86% | 1.97% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 25 | $ 24 | $ 25 | $ 26 | $ 24 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the sales charges.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class B
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.67 | $ 10.86 | $ 10.82 | $ 10.61 | $ 10.64 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .086 | .089 | .093 | .128 | .139 |
Net realized and unrealized gain (loss) | .056 | (.180) | .045 | .226 | (.026) |
Total from investment operations | .142 | (.091) | .138 | .354 | .113 |
Distributions from net investment income | (.086) | (.089) | (.086) | (.136) | (.139) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.102) | (.099) | (.098) | (.144) | (.143) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.71 | $ 10.67 | $ 10.86 | $ 10.82 | $ 10.61 |
Total Return A, B | 1.33% | (.84)% | 1.27% | 3.36% | 1.06% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | 1.42% | 1.43% | 1.44% | 1.43% | 1.44% |
Expenses net of fee waivers, if any | 1.42% | 1.43% | 1.44% | 1.42% | 1.43% |
Expenses net of all reductions | 1.42% | 1.43% | 1.43% | 1.42% | 1.42% |
Net investment income (loss) | .80% | .82% | .85% | 1.19% | 1.30% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ - | $ 1 | $ 1 | $ 2 | $ 2 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class C
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.66 | $ 10.84 | $ 10.81 | $ 10.60 | $ 10.63 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) C | .072 | .077 | .082 | .117 | .129 |
Net realized and unrealized gain (loss) | .046 | (.169) | .035 | .226 | (.026) |
Total from investment operations | .118 | (.092) | .117 | .343 | .103 |
Distributions from net investment income | (.072) | (.078) | (.075) | (.125) | (.129) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.088) | (.088) | (.087) | (.133) | (.133) |
Redemption fees added to paid in capital C, G | - | - | - | - | - |
Net asset value, end of period | $ 10.69 | $ 10.66 | $ 10.84 | $ 10.81 | $ 10.60 |
Total Return A, B | 1.11% | (.86)% | 1.08% | 3.25% | .96% |
Ratios to Average Net Assets D, F |
|
|
|
| |
Expenses before reductions | 1.54% | 1.54% | 1.53% | 1.53% | 1.52% |
Expenses net of fee waivers, if any | 1.54% | 1.54% | 1.53% | 1.53% | 1.52% |
Expenses net of all reductions | 1.54% | 1.53% | 1.53% | 1.52% | 1.52% |
Net investment income (loss) | .67% | .72% | .76% | 1.09% | 1.20% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 65 | $ 71 | $ 92 | $ 79 | $ 77 |
Portfolio turnover rate E | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Total returns do not include the effect of the contingent deferred sales charge.
C Calculated based on average shares outstanding during the period.
D Fees and expenses of any 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 Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Limited Term Municipal Income
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 | $ 10.63 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .186 | .191 | .197 | .228 | .240 |
Net realized and unrealized gain (loss) | .046 | (.180) | .045 | .227 | (.026) |
Total from investment operations | .232 | .011 | .242 | .455 | .214 |
Distributions from net investment income | (.186) | (.191) | (.190) | (.237) | (.240) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.202) | (.201) | (.202) | (.245) | (.244) |
Redemption fees added to paid in capital B, F | - | - | - | - | - |
Net asset value, end of period | $ 10.69 | $ 10.66 | $ 10.85 | $ 10.81 | $ 10.60 |
Total Return A | 2.19% | .10% | 2.25% | 4.34% | 2.02% |
Ratios to Average Net Assets C, E |
|
|
|
|
|
Expenses before reductions | .48% | .48% | .48% | .48% | .48% |
Expenses net of fee waivers, if any | .48% | .48% | .48% | .48% | .48% |
Expenses net of all reductions | .48% | .48% | .47% | .48% | .48% |
Net investment income (loss) | 1.73% | 1.78% | 1.81% | 2.14% | 2.24% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 3,225 | $ 3,168 | $ 3,624 | $ 3,523 | $ 3,456 |
Portfolio turnover rate D | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Institutional Class
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
| |
Net asset value, beginning of period | $ 10.67 | $ 10.85 | $ 10.81 | $ 10.61 | $ 10.63 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .179 | .184 | .191 | .224 | .235 |
Net realized and unrealized gain (loss) | .046 | (.169) | .045 | .216 | (.015) |
Total from investment operations | .225 | .015 | .236 | .440 | .220 |
Distributions from net investment income | (.179) | (.185) | (.184) | (.232) | (.236) |
Distributions from net realized gain | (.016) | (.010) | (.012) | (.008) | (.004) |
Total distributions | (.195) | (.195) | (.196) | (.240) | (.240) |
Redemption fees added to paid in capital B, F | - | - | - | - | - |
Net asset value, end of period | $ 10.70 | $ 10.67 | $ 10.85 | $ 10.81 | $ 10.61 |
Total Return A | 2.12% | .14% | 2.19% | 4.19% | 2.07% |
Ratios to Average Net Assets C, E |
|
|
|
| |
Expenses before reductions | .55% | .54% | .54% | .52% | .53% |
Expenses net of fee waivers, if any | .55% | .54% | .54% | .52% | .53% |
Expenses net of all reductions | .54% | .54% | .53% | .52% | .52% |
Net investment income (loss) | 1.67% | 1.71% | 1.76% | 2.09% | 2.20% |
Supplemental Data |
|
|
|
| |
Net assets, end of period (in millions) | $ 263 | $ 207 | $ 206 | $ 152 | $ 142 |
Portfolio turnover rate D | 21% | 20% | 21% | 22% | 15% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2014
(Amounts in thousands except percentages)
1. Organization.
Fidelity Limited Term 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 C, Limited Term Municipal Income and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, 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.
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Municipal securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Annual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily 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 may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of December 31, 2014, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and 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 GAAP. 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to wash sales and 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 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 85,896 |
Gross unrealized depreciation | (3,990) |
Net unrealized appreciation (depreciation) on securities | $ 81,906 |
|
|
Tax Cost | $ 3,709,534 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed tax-exempt income | $ 90 |
Undistributed long-term capital gain | $ 1,118 |
Net unrealized appreciation (depreciation) on securities and other investments | $ 81,906 |
The tax character of distributions paid was as follows:
| December 31, 2014 | December 31, 2013 |
Tax-exempt Income | $ 64,660 | $ 71,638 |
Long-term Capital Gains | 5,775 | 3,714 |
Total | $ 70,435 | $ 75,352 |
Annual Report
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in 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. 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $882,192 and $775,695, respectively.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .36% of the Fund's average net assets.
Distribution and Service Plan Fees. 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 the investment adviser, 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, total fees and amounts retained by FDC were as follows:
| Distribution | Service | Total Fees | Retained |
Class A | -% | .25% | $ 824 | $ 7 |
Class T | -% | .25% | 59 | -* |
Class B | .65% | .25% | 4 | 3 |
Class C | .75% | .25% | 668 | 82 |
|
|
| $ 1,555 | $ 92 |
* Amount represents one hundred ninety dollars.
Sales Load. FDC may receive a front-end sales charge of up to 2.75% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 3.00% to 1.00% for Class B shares, 1.00% for Class C shares, .75% or .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Annual Report
5. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
| Retained | |||
Class A | $ 19 | |||
Class T | 8 | |||
Class B* | 1 | |||
Class C* | 6 | |||
| $ 34 |
* 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 servicing agent for the Fund's Class A, Class T, Class B, Class C, Limited Term Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, with respect to all classes of the Fund, to perform the transfer agency, dividend disbursing, and shareholder servicing functions. FIIOC receives 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 pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:
| Amount | % of |
Class A | $ 515 | .16 |
Class T | 28 | .12 |
Class B | 1 | .13 |
Class C | 104 | .16 |
Limited Term Municipal Income | 3,049 | .10 |
Institutional Class | 357 | .16 |
| $ 4,054 |
|
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, under which FSC maintains the Fund's accounting records. The fee is paid to Citibank and is based on the level of average net assets for each month.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, 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 $40 and $20, respectively.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended December 31, | 2014 | 2013 |
From net investment income |
|
|
Class A | $ 4,673 | $ 5,745 |
Class T | 347 | 389 |
Class B | 3 | 7 |
Class C | 452 | 585 |
Limited Term Municipal Income | 55,470 | 61,526 |
Institutional Class | 3,715 | 3,386 |
Total | $ 64,660 | $ 71,638 |
From net realized gain |
|
|
Class A | $ 518 | $ 329 |
Class T | 36 | 24 |
Class B | 1 | 1 |
Class C | 101 | 71 |
Limited Term Municipal Income | 4,778 | 3,097 |
Institutional Class | 341 | 192 |
Total | $ 5,775 | $ 3,714 |
Annual Report
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between funds:
| Shares | Dollars | ||
Years ended December 31, | 2014 | 2013 | 2014 | 2013 |
Class A |
|
|
|
|
Shares sold | 21,930 | 17,258 | $ 235,729 | $ 186,600 |
Reinvestment of distributions | 419 | 453 | 4,497 | 4,871 |
Shares redeemed | (15,005) | (24,258) | (161,198) | (260,966) |
Net increase (decrease) | 7,344 | (6,547) | $ 79,028 | $ (69,495) |
Class T |
|
|
|
|
Shares sold | 936 | 1,844 | $ 10,041 | $ 19,947 |
Reinvestment of distributions | 34 | 36 | 360 | 384 |
Shares redeemed | (932) | (1,872) | (9,993) | (20,208) |
Net increase (decrease) | 38 | 8 | $ 408 | $ 123 |
Class B |
|
|
|
|
Shares sold | 5 | 16 | $ 58 | $ 168 |
Reinvestment of distributions | -* | 1 | 4 | 6 |
Shares redeemed | (17) | (69) | (183) | (740) |
Net increase (decrease) | (12) | (52) | $ (121) | $ (566) |
Class C |
|
|
|
|
Shares sold | 1,064 | 1,589 | $ 11,413 | $ 17,079 |
Reinvestment of distributions | 42 | 49 | 454 | 522 |
Shares redeemed | (1,668) | (3,466) | (17,881) | (37,229) |
Net increase (decrease) | (562) | (1,828) | $ (6,014) | $ (19,628) |
Limited Term Municipal Income |
|
|
|
|
Shares sold | 76,270 | 84,688 | $ 818,051 | $ 911,728 |
Reinvestment of distributions | 4,133 | 4,446 | 44,337 | 47,763 |
Shares redeemed | (75,997) | (126,146) | (815,047) | (1,354,126) |
Net increase (decrease) | 4,406 | (37,012) | $ 47,341 | $ (394,635) |
Institutional Class |
|
|
|
|
Shares sold | 13,740 | 12,901 | $ 147,453 | $ 138,587 |
Reinvestment of distributions | 270 | 212 | 2,893 | 2,276 |
Shares redeemed | (8,783) | (12,706) | (94,228) | (136,675) |
Net increase (decrease) | 5,227 | 407 | $ 56,118 | $ 4,188 |
* Amount represents three hundred sixty-two shares.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Limited Term Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Limited Term Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Limited Term Municipal Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 19, 2015
Annual Report
Trustees and Officers
The Trustees and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Elizabeth S. Acton, James C. Curvey, and John Engler, each of the Trustees oversees 233 funds. Ms. Acton and Mr. Engler each oversees 215 funds. Mr. Curvey oversees 407 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
James C. Curvey (1935) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), and a Director of FMR Co., Inc. (2007-2014). |
Abigail P. Johnson (1961) | |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees | |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC, President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
Year of Election or Appointment: 2013 Trustee | |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present).] |
John Engler (1948) | |
Year of Election or Appointment: 2014 Trustee | |
| Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association.] |
Albert R. Gamper, Jr. (1942) | |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees | |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
Year of Election or Appointment: 2010 Trustee | |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
Year of Election or Appointment: 2008 Trustee | |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
Year of Election or Appointment: 2009 Trustee | |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees | |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation | |
Elizabeth Paige Baumann (1968) | |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer | |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Robert P. Brown (1963) | |
Year of Election or Appointment: 2012 Vice President of Fidelity's Bond Funds | |
| Mr. Brown also serves as Vice President of other funds. Mr. Brown serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director, Research of Fidelity Management & Research (U.K.) Inc. (2008-present), and is an employee of Fidelity Investments. Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's Money Market Funds (2010-2012). |
Marc Bryant (1966) | |
Year of Election or Appointment: 2013 Assistant Secretary | |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) | |
Year of Election or Appointment: 2013 President and Treasurer | |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) | |
Year of Election or Appointment: 2014 Chief Financial Officer | |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) | |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) | |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assis-tant Secretary of Fidelity Management & Research (Japan) Limited (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Chris Maher (1972) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) | |
Year of Election or Appointment: 2014 Vice President | |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) | |
Year of Election or Appointment: 2009 Assistant Treasurer | |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) | |
Year of Election or Appointment: 2008 Chief Compliance Officer | |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (2014-present), FMR (2014-present), Fidelity Investments Money Management, Inc. (2014-present), and is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
Year of Election or Appointment: 2011 Deputy Treasurer | |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of Limited Term Municipal Income Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
Fund | Pay Date | Record Date | Capital Gains |
Fidelity Limited Term Municipal Income | 02/09/15 | 02/06/15 | $0.004 |
During fiscal year ended 2014, 100% of the fund's income dividends was free from federal income tax, and 4.93% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2014, $4,486,196, or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Limited Term Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the 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 relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by 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. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2014 meeting, the Board, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. 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 fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and 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. In connection with separate internal corporate reorganizations involving Fidelity Management & Research (U.K.) Inc. (FMR U.K.) and Fidelity Management & Research (Japan) Inc. (FMR Japan), the Board approved certain non-material amendments to the fund's sub-advisory agreements with FMR U.K. and FMR Japan to reflect that, after these reorganizations, FMR Investment Management (UK) Limited and Fidelity Management & Research (Japan) Limited will carry on the business of FMR U.K. and FMR Japan, respectively. The Board noted that no changes to the portfolio managers or to the foreign research or investment advisory services provided to the fund were expected in connection with either reorganization and that the same personnel and resources would continue to be available to the fund at the new entities.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. 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 to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, 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 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 over time 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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
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 a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing a new Fidelity adviser, Fidelity SelectCo, LLC, to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Annual Report
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG %s are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the chart and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Limited Term Municipal Income Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2013.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each class's total expense ratio, 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 that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund. As part of its review, the Board also considered the current and historical total expense ratios 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 expense ratio of the retail class ranked below its competitive median for 2013, the total expense ratio of Class B ranked equal to its competitive median for 2013, and the total expense ratio of each of Class A, Class T, Class C, and Institutional Class ranked above its competitive median for 2013. The Board considered that, in general, various factors can affect total expense ratios. The Board noted that the total expense ratio of Class T was above the competitive median primarily because of higher 12b-1 fees on Class T as compared to most competitor funds. Class T has a higher 12b-1 fee, but a lower front-end sales charge, than traditionally priced front-end sales charge classes. The Board considered that Class T is primarily sold load-waived in the retirement plan market, where its 0.50% 12b-1 fee is comparable to competing no-load, higher 12b-1 fee classes designed specifically for retirement plans. The Board noted the total expense ratio of Class C was above the competitive median primarily because of higher 12b-1 fees compared to most competitor funds with Class C. 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 expense ratios 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.
Annual Report
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients. The Board noted the findings of the 2013 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of the fund was reasonable, although in some cases 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 servicing the fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. 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 Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board also reviewed Fidelity's non-fund businesses and 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 was satisfied that the profitability was not excessive.
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 as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under FMR's management plus sector fund assets previously under FMR's management and currently managed by Fidelity SelectCo, LLC). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity 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 benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Annual Report
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
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 certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) the methodology with respect to competitive fund data and peer group classifications; (viii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (ix) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
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®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
STM-UANN-0215 1.787742.111
Fidelity®
Michigan Municipal
Income Fund
and
Fidelity
Michigan Municipal Money Market Fund
Annual Report
December 31, 2014
(Fidelity Cover Art)
Contents
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
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. | |
Investments | A complete list of the fund's investments. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the Financial Statements | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
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/proxyvotingresults 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 LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Fidelity® Michigan Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2014 | Past 1 | Past 5 | Past 10 |
Fidelity Michigan Municipal Income Fund | 9.23% | 4.74% | 4.35% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Michigan Municipal Income Fund on December 31, 2004. The chart shows how the value of your investment would have changed, and also shows how the Barclays® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds posted a strong result for the 12 months ending December 31, 2014, driven by steady demand, tight supply and improving credit fundamentals. The Barclays® Municipal Bond Index returned 9.05%, significantly outperforming the U.S. investment-grade taxable bond market. Munis were driven, in part, by continued economic growth, declining long-term interest rates, and the relative attractiveness of U.S. markets amid global economic and political uncertainty. More specific to munis, prices rose as investors became more upbeat about the fundamental outlook of many state and local governments. Additionally, a steady stream of municipal bond cash flows - coupon payments, maturities and those due to early bond calls by issuers - fueled reinvestment. Meanwhile, investors took solace that the financial distress experienced by Puerto Rico, Detroit and a few California cities in bankruptcy did not expand to the broader market. Lastly, the tax advantages of munis had particular appeal due to the higher federal tax rates for top earners that took effect in 2013, as well as the new 3.8% Medicare tax on unearned, non-municipal investment income.
Comments from Jamie Pagliocco, Portfolio Manager of Fidelity® Michigan Municipal Income Fund: For year, the fund returned 9.23%, while the Barclays Michigan Enhanced Modified Municipal Bond Index returned 9.59%. I sought to generate attractive tax-exempt income for the fund and protect shareholder capital. Given this investment approach and the muni bond market environment, the fund performed in line with my expectations by generating gains, before expenses, that were in line with the Barclays index. An overweighted exposure to health care bonds bolstered our result. These typically higher-yielding securities drew strong demand from investors given the lower-interest-rate environment and were some of the best-performing securities in the lower-rated investment-grade credit tiers. The fund's underweighted exposure to Detroit water and sewer bonds proved detrimental because they fared quite well. They began to rebound after the city said it wouldn't lower the interest rate on the bonds as part of its bankruptcy plan and continued to surge once Detroit emerged from bankruptcy. An underweighted position in munis subject to the alternative minimum tax (AMT) also hurt the fund's return. They performed well due to strong demand for higher-yielding investments.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Income Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2014 to December 31, 2014).
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.
Annual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Fidelity Michigan Municipal Income Fund | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,034.50 | $ 2.46 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Fidelity Michigan Municipal Money Market Fund | .06% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ .30 |
HypotheticalA |
| $ 1,000.00 | $ 1,024.90 | $ .31 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Fidelity Michigan Municipal Income Fund
Investment Changes (Unaudited)
Top Five Sectors as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
General Obligations | 35.7 | 37.0 |
Health Care | 23.6 | 22.3 |
Water & Sewer | 10.4 | 15.9 |
Education | 7.4 | 5.6 |
Escrowed/Pre-Refunded | 6.2 | 2.4 |
Weighted Average Maturity as of December 31, 2014 | ||
|
| 6 months ago |
Years | 4.9 | 5.7 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2014 | ||
|
| 6 months ago |
Years | 5.5 | 5.7 |
Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | AAA 2.8% |
| ![]() | AAA 2.7% |
| ||
![]() | AA,A 90.5% |
| ![]() | AA,A 88.1% |
| ||
![]() | BBB 4.3% |
| ![]() | BBB 4.3% |
| ||
![]() | BB and Below 0.2% |
| ![]() | BB and Below 0.2% |
| ||
![]() | Not Rated 0.5% |
| ![]() | Not Rated 0.5% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Fidelity Michigan Municipal Income Fund
Investments December 31, 2014
Showing Percentage of Net Assets
Municipal Bonds - 98.3% | ||||
| Principal Amount | Value | ||
Guam - 1.0% | ||||
Guam Ed. Fing. Foundation Ctfs. of Prtn.: | ||||
(Guam Pub. School Facilities Proj.) Series 2006 A, 5% 10/1/16 | $ 1,045,000 | $ 1,093,812 | ||
Series 2006 A, 5% 10/1/23 | 1,000,000 | 1,025,170 | ||
Guam Int'l. Arpt. Auth. Rev. Series 2013 C: | ||||
5% 10/1/16 (c) | 950,000 | 1,009,451 | ||
6.25% 10/1/34 (c) | 1,000,000 | 1,208,740 | ||
Guam Pwr. Auth. Rev. Series 2012 A, 5% 10/1/23 (FSA Insured) | 1,175,000 | 1,408,755 | ||
| 5,745,928 | |||
Michigan - 96.8% | ||||
Algonac Cmnty. Schools Series 2008, 5.25% 5/1/28 (FSA Insured) | 1,575,000 | 1,764,977 | ||
Allegan Pub. School District Series 2008, 5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,545,000 | 1,633,559 | ||
Ann Arbor Bldg. Auth. Series 2005 A: | ||||
5% 3/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,405,000 | 1,415,200 | ||
5% 3/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,440,000 | 1,450,397 | ||
Ann Arbor Econ. Dev. Corp. Ltd. Oblig. Rev. (Glacier Hills, Inc. Proj.) 8.375% 1/15/19 (Escrowed to Maturity) | 1,594,000 | 1,846,394 | ||
Bay City Gen. Oblig. Series 1991, 0% 6/1/15 (AMBAC Insured) | 1,725,000 | 1,717,876 | ||
Bay City School District Rev.: | ||||
5% 11/1/25 | 1,000,000 | 1,179,320 | ||
5% 11/1/26 | 1,000,000 | 1,173,950 | ||
5% 11/1/27 | 700,000 | 818,020 | ||
5% 11/1/28 | 250,000 | 290,158 | ||
Carman-Ainsworth Cmnty. School District Series 2005: | ||||
5% 5/1/16 (FSA Insured) | 1,000,000 | 1,014,210 | ||
5% 5/1/17 (FSA Insured) | 2,065,000 | 2,094,261 | ||
Carrier Creek Drainage District #326 Series 2005: | ||||
5% 6/1/16 (Pre-Refunded to 6/1/15 @ 100) | 1,620,000 | 1,651,493 | ||
5% 6/1/25 (Pre-Refunded to 6/1/15 @ 100) | 1,775,000 | 1,809,506 | ||
Charles Stewart Mott Cmnty. College Series 2005, 5% 5/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,675,000 | 1,700,494 | ||
Charter Township of Commerce Gen. Oblig. Series 2009 B, 5.125% 12/1/38 | 970,000 | 1,082,084 | ||
Chelsea School District Series 2008: | ||||
5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,720,000 | 1,746,299 | ||
5% 5/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,675,000 | 1,862,382 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Clarkston Cmnty. Schools Series 2008, 5% 5/1/16 (FSA Insured) | $ 1,855,000 | $ 1,961,329 | ||
Comstock Park Pub. Schools Series 2005, 5% 5/1/16 (FSA Insured) | 1,000,000 | 1,014,210 | ||
Detroit City School District Series 2005 A, 5.25% 5/1/30 (FSA Insured) | 5,000,000 | 6,097,200 | ||
Detroit School District Series 2012 A, 5% 5/1/24 | 5,000,000 | 5,617,650 | ||
Detroit Swr. Disp. Rev.: | ||||
Series 1998, 5.5% 7/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,050,000 | 3,351,340 | ||
Series 2001 E, 5.75% 7/1/31 (Berkshire Hathaway Assurance Corp. Insured) (FGIC Insured) | 1,400,000 | 1,552,978 | ||
Series 2006 B, 5% 7/1/36 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,800,000 | 7,920,432 | ||
Series 2006, 5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,085,000 | 1,109,163 | ||
Detroit Wtr. Supply Sys. Rev.: | ||||
Series 1993, 6.5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,310,000 | 3,399,536 | ||
Series 2004 A, 5.25% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,060,090 | ||
Series 2004, 5.25% 7/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000,000 | 2,111,640 | ||
Series 2006 B, 7% 7/1/36 (FSA Insured) | 2,700,000 | 3,057,183 | ||
Series 2006, 5% 7/1/33 (FSA Insured) | 5,000,000 | 5,096,750 | ||
Detroit/Wayne Co. Stadium Auth. Series 2012: | ||||
5% 10/1/21 (FSA Insured) | 1,000,000 | 1,115,950 | ||
5% 10/1/22 (FSA Insured) | 1,000,000 | 1,113,740 | ||
DeWitt Pub. Schools Gen. Oblig. Series 2008, 5% 5/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,550,000 | 1,688,415 | ||
Dexter Cmnty. Schools (School Bldg. and Site Proj.) Series 1998, 5.1% 5/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,109,940 | ||
Durand Area Schools Gen. Oblig. Series 2006: | ||||
5% 5/1/27 (FSA Insured) | 1,225,000 | 1,291,211 | ||
5% 5/1/28 (FSA Insured) | 1,250,000 | 1,317,400 | ||
5% 5/1/29 (FSA Insured) | 1,275,000 | 1,343,570 | ||
East Lansing School District Gen. Oblig. Series 2005, 5% 5/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,530,000 | 3,579,455 | ||
Farmington Pub. School District Gen. Oblig. Series 2005, 5% 5/1/18 (FSA Insured) | 4,500,000 | 4,567,590 | ||
Forest Hills Pub. Schools: | ||||
5% 5/1/18 (a) | 1,650,000 | 1,845,773 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Forest Hills Pub. Schools: - continued | ||||
5% 5/1/19 (a) | $ 1,375,000 | $ 1,568,256 | ||
5% 5/1/20 (a) | 1,575,000 | 1,834,418 | ||
5% 5/1/21 (a) | 1,575,000 | 1,853,822 | ||
Fraser Pub. School District Series 2005: | ||||
5% 5/1/16 (Pre-Refunded to 5/1/15 @ 100) | 1,055,000 | 1,071,363 | ||
5% 5/1/17 (Pre-Refunded to 5/1/15 @ 100) | 1,615,000 | 1,640,049 | ||
Garden City School District: | ||||
Series 2005, 5% 5/1/17 (FSA Insured) | 1,390,000 | 1,406,944 | ||
Series 2006, 5% 5/1/19 (FSA Insured) | 1,205,000 | 1,259,876 | ||
Genesee County Gen. Oblig. Series 2005: | ||||
5% 5/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,355,000 | 1,374,200 | ||
5% 5/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,505,000 | 1,526,281 | ||
Gibraltar School District Series 2005: | ||||
5% 5/1/16 (FSA Insured) | 1,230,000 | 1,247,478 | ||
5% 5/1/17 (FSA Insured) | 1,230,000 | 1,247,515 | ||
Grand Blanc Cmnty. Schools Series 2013, 4% 5/1/24 | 4,925,000 | 5,354,312 | ||
Grand Ledge Pub. Schools District (School Bldg. & Site Proj.) Series 2007: | ||||
5% 5/1/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,175,000 | 1,273,994 | ||
5% 5/1/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,300,000 | 1,409,525 | ||
5% 5/1/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,500,000 | 2,704,050 | ||
Grand Rapids Cmnty. College Series 2008: | ||||
5% 5/1/17 (FSA Insured) | 1,315,000 | 1,436,559 | ||
5% 5/1/19 (FSA Insured) | 1,315,000 | 1,476,193 | ||
Grand Rapids San. Swr. Sys. Rev.: | ||||
Series 2005: | ||||
5% 1/1/34 (Pre-Refunded to 7/1/15 @ 100) | 3,000,000 | 3,070,380 | ||
5.125% 1/1/25 (Pre-Refunded to 7/1/15 @ 100) | 2,000,000 | 2,048,140 | ||
Series 2008, 5% 1/1/38 | 3,320,000 | 3,604,292 | ||
Series 2012, 5% 1/1/37 | 1,250,000 | 1,441,700 | ||
Series 2014: | ||||
5% 1/1/27 | 1,300,000 | 1,581,125 | ||
5% 1/1/29 | 800,000 | 962,216 | ||
5% 1/1/30 | 2,000,000 | 2,396,620 | ||
Grand Rapids Wtr. Supply Sys. Series 2005, 5% 1/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000,000 | 5,199,800 | ||
Grand Traverse County Hosp.: | ||||
Series 2011 A, 5.375% 7/1/35 | 2,000,000 | 2,252,960 | ||
Series 2014 A, 5% 7/1/47 | 1,400,000 | 1,558,704 | ||
Grand Valley Michigan State Univ. Rev.: | ||||
Series 2007, 5% 12/1/19 (AMBAC Insured) | 500,000 | 554,340 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Grand Valley Michigan State Univ. Rev.: - continued | ||||
Series 2008, 5% 12/1/33 (FSA Insured) | $ 5,000,000 | $ 5,451,300 | ||
Series 2009, 5.625% 12/1/29 (Pre-Refunded to 12/1/16 @ 100) | 2,400,000 | 2,631,192 | ||
Series 2014 B: | ||||
5% 12/1/25 | 500,000 | 603,195 | ||
5% 12/1/26 | 1,900,000 | 2,268,353 | ||
5% 12/1/28 | 1,800,000 | 2,119,914 | ||
Grosse Ile Township School District Unltd. Tax Gen. Oblig. Series 2006: | ||||
5% 5/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,950,000 | 2,054,871 | ||
5% 5/1/32 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,950,000 | 2,054,072 | ||
Harper Creek Cmnty. School District (School Bldg. & Site Proj.) Series 2008: | ||||
4.75% 5/1/27 (FSA Insured) | 500,000 | 550,025 | ||
5.25% 5/1/21 (FSA Insured) | 2,000,000 | 2,239,860 | ||
5.25% 5/1/24 (FSA Insured) | 2,100,000 | 2,345,343 | ||
Haslett Pub. Schools Series 2005, 5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,100,000 | 1,115,631 | ||
Hudsonville Pub. Schools: | ||||
Series 2005, 5% 5/1/16 (Pre-Refunded to 5/1/15 @ 100) | 1,000,000 | 1,015,510 | ||
4% 5/1/24 | 1,220,000 | 1,328,885 | ||
4% 5/1/25 | 500,000 | 543,465 | ||
5% 5/1/20 | 1,000,000 | 1,151,190 | ||
5% 5/1/22 | 600,000 | 703,686 | ||
5.25% 5/1/41 | 1,750,000 | 1,927,398 | ||
Ingham, Eaton and Clinton Counties Lansing School District 5% 5/1/22 | 1,730,000 | 2,011,315 | ||
Jackson County Hosp. Fin. Auth. Hosp. Rev. (Allegiance Health Proj.) Series 2010 A, 5% 6/1/37 (FSA Insured) | 2,250,000 | 2,403,338 | ||
Kalamazoo Pub. Schools Series 2006: | ||||
5% 5/1/17 (FSA Insured) | 3,165,000 | 3,348,570 | ||
5.25% 5/1/16 (FSA Insured) | 1,500,000 | 1,593,360 | ||
Kent Hosp. Fin. Auth. Hosp. Facilities Rev.: | ||||
(Metropolitan Hosp. Proj.) Series 2005 A: | ||||
6% 7/1/35 | 1,175,000 | 1,199,464 | ||
6.25% 7/1/40 | 165,000 | 168,246 | ||
(Spectrum Health Sys. Proj.) Series 2011 A, 5.5% 11/15/25 | 5,000,000 | 5,939,850 | ||
Kentwood Pub. Schools Series 2012: | ||||
4% 5/1/21 | 1,000,000 | 1,117,520 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Kentwood Pub. Schools Series 2012: - continued | ||||
4% 5/1/22 | $ 1,000,000 | $ 1,121,050 | ||
L'Anse Creuse Pub. Schools: | ||||
Series 2005, 5% 5/1/24 (Pre-Refunded to 5/1/15 @ 100) | 1,350,000 | 1,370,939 | ||
Series 2012: | ||||
5% 5/1/22 | 1,500,000 | 1,771,710 | ||
5% 5/1/23 | 1,500,000 | 1,762,935 | ||
Lansing Board of Wtr. & Lt. Util. Rev. 5.5% 7/1/41 | 5,000,000 | 5,925,850 | ||
Lansing Cmnty. College: | ||||
5% 5/1/23 | 1,135,000 | 1,347,892 | ||
5% 5/1/25 | 1,540,000 | 1,820,865 | ||
Lapeer Cmnty. Schools Series 2007: | ||||
5% 5/1/19 (FSA Insured) | 1,350,000 | 1,512,203 | ||
5% 5/1/20 (FSA Insured) | 1,425,000 | 1,595,729 | ||
5% 5/1/22 (FSA Insured) | 1,395,000 | 1,555,857 | ||
Lenawee Co. Hosp. Fin. Auth. Hosp. Rev. (ProMedica Heathcare Oblig. Group Proj.) Series 2011 B, 6% 11/15/35 | 3,030,000 | 3,633,182 | ||
Michigan Bldg. Auth. Rev.: | ||||
(Facilities Prog.) Series 2008 I, 6% 10/15/38 | 5,000,000 | 5,709,850 | ||
Series 2009 I, 5.25% 10/15/25 (Assured Guaranty Corp. Insured) | 2,000,000 | 2,277,920 | ||
Series IA: | ||||
5.375% 10/15/41 | 3,000,000 | 3,429,780 | ||
5.5% 10/15/45 | 10,000,000 | 11,325,300 | ||
Michigan Fin. Auth. Rev.: | ||||
(Holland Cmnty. Hosp. Proj.) Series 2013 A: | ||||
5% 1/1/33 | 1,250,000 | 1,361,463 | ||
5% 1/1/40 | 3,000,000 | 3,205,470 | ||
(Trinity Health Sys. Proj.) Series 2010 A, 5% 12/1/27 | 1,100,000 | 1,268,938 | ||
Series 2012 A: | ||||
4.125% 6/1/32 | 3,000,000 | 2,965,020 | ||
5% 6/1/27 | 125,000 | 135,014 | ||
5% 6/1/39 | 12,290,000 | 12,806,292 | ||
Series 2012 B, 5% 7/1/22 | 2,600,000 | 2,771,808 | ||
Series 2012: | ||||
5% 11/15/24 | 660,000 | 770,378 | ||
5% 11/15/25 | 1,000,000 | 1,160,310 | ||
5% 11/1/26 | 6,425,000 | 7,411,238 | ||
5% 11/15/26 | 800,000 | 922,128 | ||
5% 11/15/36 | 6,200,000 | 6,793,712 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Michigan Fin. Auth. Rev.: - continued | ||||
Series 2012: | ||||
5% 11/1/42 | $ 2,000,000 | $ 2,173,620 | ||
5% 11/15/42 | 4,500,000 | 4,885,965 | ||
Series 2013: | ||||
5% 10/1/25 | 1,255,000 | 1,514,584 | ||
5% 8/15/30 | 4,105,000 | 4,720,298 | ||
5% 8/15/31 | 2,310,000 | 2,646,821 | ||
Series 2014 H1: | ||||
5% 10/1/22 | 1,000,000 | 1,177,800 | ||
5% 10/1/25 | 2,250,000 | 2,679,750 | ||
5% 10/1/39 | 8,600,000 | 9,739,586 | ||
Series 2014: | ||||
5% 6/1/25 | 1,000,000 | 1,178,020 | ||
5% 6/1/26 | 700,000 | 820,204 | ||
5% 6/1/27 | 700,000 | 817,068 | ||
Michigan Gen. Oblig. Series 2007, 5.25% 9/15/21 (FSA Insured) | 5,000,000 | 5,548,750 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
(Henry Ford Health Sys. Proj.): | ||||
Series 2006 A, 5% 11/15/17 | 1,000,000 | 1,068,270 | ||
Series 2009, 5.25% 11/15/24 | 3,000,000 | 3,434,220 | ||
(McLaren Health Care Corp. Proj.): | ||||
Series 2008 A, 5.75% 5/15/38 | 6,890,000 | 7,734,507 | ||
Series 2012 A, 5% 6/1/24 | 2,765,000 | 3,253,963 | ||
(MidMichigan Obligated Group Proj.) Series 2009 A, 6.125% 6/1/39 (Pre-Refunded to 6/1/19 @ 100) | 3,740,000 | 4,515,040 | ||
(Oakwood Hosp. Proj.) Series 2007, 5% 7/15/17 | 1,000,000 | 1,093,710 | ||
(Sparrow Hosp. Obligated Group Proj.) Series 2007: | ||||
5% 11/15/17 | 535,000 | 588,612 | ||
5% 11/15/18 | 1,725,000 | 1,894,292 | ||
5% 11/15/19 | 1,000,000 | 1,095,780 | ||
5% 11/15/20 | 2,000,000 | 2,192,160 | ||
5% 11/15/31 | 5,000,000 | 5,414,600 | ||
(Trinity Health Sys. Proj.): | ||||
Series 2008 A, 6.5% 12/1/33 | 5,000,000 | 5,863,150 | ||
5% 12/1/26 | 3,725,000 | 4,031,642 | ||
Bonds: | ||||
Series 2010 F3, 1.4%, tender 6/29/18 (b) | 6,200,000 | 6,242,160 | ||
Series 2010 F4, 1.95%, tender 4/1/20 (b) | 5,500,000 | 5,527,280 | ||
Michigan Muni. Bond Auth. Rev.: | ||||
(Local Govt. Ln. Prog.): | ||||
Series 2007, 5% 12/1/21 (AMBAC Insured) | 1,155,000 | 1,200,773 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Michigan Muni. Bond Auth. Rev.: - continued | ||||
(Local Govt. Ln. Prog.): | ||||
Series G, 0% 5/1/19 (AMBAC Insured) | $ 1,865,000 | $ 1,602,706 | ||
(State Clean Wtr. Revolving Fund Proj.) Series 2006, 5% 10/1/27 | 4,225,000 | 4,531,820 | ||
Series 2005, 5% 10/1/23 | 385,000 | 447,332 | ||
Series C, 0% 6/15/15 (FSA Insured) | 3,000,000 | 2,980,140 | ||
Michigan Strategic Fund Ltd. Oblig. Rev.: | ||||
(Cadillac Place Office Bldg. Proj.) Series 2011, 5.25% 10/15/26 | 3,585,000 | 4,227,611 | ||
(Detroit Edison Co. Proj.) Series BB, 7% 5/1/21 (AMBAC Insured) | 8,520,000 | 10,753,603 | ||
Michigan Technological Univ. Series 2008, 5.25% 10/1/17 (Escrowed to Maturity) | 1,875,000 | 2,105,231 | ||
Michigan Trunk Line Fund Rev.: | ||||
Series 1998 A, 5.5% 11/1/16 | 3,000,000 | 3,271,320 | ||
Series 2011, 5% 11/15/36 | 2,000,000 | 2,279,460 | ||
Monroe County Hosp. Fin. Auth. Series 2006, 5.375% 6/1/26 | 3,200,000 | 3,367,776 | ||
North Kent Swr. Auth. Wtr. & Swr. Rev. Series 2006: | ||||
5% 11/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 420,000 | 453,306 | ||
5% 11/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 490,000 | 528,578 | ||
5% 11/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,645,000 | 1,771,714 | ||
5% 11/1/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,290,000 | 1,388,388 | ||
Northview Pub. Schools District Series 2008, 5% 5/1/21 (FSA Insured) | 1,070,000 | 1,189,701 | ||
Northville Pub. Schools Series 2005: | ||||
5% 5/1/15 (FSA Insured) | 1,525,000 | 1,548,317 | ||
5% 5/1/16 (FSA Insured) | 1,475,000 | 1,496,683 | ||
Oakland Univ. Rev.: | ||||
Series 2012: | ||||
5% 3/1/24 | 1,170,000 | 1,360,453 | ||
5% 3/1/25 | 1,225,000 | 1,414,863 | ||
5% 3/1/26 | 1,290,000 | 1,479,965 | ||
5% 3/1/37 | 4,000,000 | 4,446,080 | ||
Series 2013 A: | ||||
5% 3/1/25 | 995,000 | 1,168,588 | ||
5% 3/1/26 | 1,620,000 | 1,887,106 | ||
5% 3/1/27 | 815,000 | 946,150 | ||
5% 3/1/38 | 2,900,000 | 3,249,769 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Oakland Univ. Rev.: - continued | ||||
Series 2014: | ||||
5% 3/1/28 | $ 335,000 | $ 391,186 | ||
5% 3/1/29 | 525,000 | 611,672 | ||
5% 3/1/39 | 3,000,000 | 3,384,780 | ||
Olivet Cmnty. School District (School Bldg. & Site Proj.) Series 2008: | ||||
5.25% 5/1/23 (FSA Insured) | 1,010,000 | 1,144,118 | ||
5.25% 5/1/27 (FSA Insured) | 1,135,000 | 1,260,599 | ||
Petoskey Pub. School District Series 2005, 5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,175,000 | 1,192,273 | ||
Plainwell Cmnty. School District: | ||||
(School Bldg. & Site Proj.) Series 2008: | ||||
5% 5/1/23 (Assured Guaranty Corp. Insured) | 1,885,000 | 2,091,992 | ||
5% 5/1/28 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,100,260 | ||
Series 2005: | ||||
5% 5/1/15 (FSA Insured) | 1,030,000 | 1,045,409 | ||
5% 5/1/16 (FSA Insured) | 1,025,000 | 1,039,565 | ||
Plymouth-Canton Cmnty. School District Series 2008, 5% 5/1/20 (FSA Insured) | 5,000,000 | 5,611,200 | ||
Portage Pub. Schools Series 2008, 5% 5/1/22 (FSA Insured) | 4,300,000 | 4,804,734 | ||
Ravenna Pub. Schools Gen. Oblig. (2008 School Bldg. and Site Proj.) Series 2008: | ||||
5% 5/1/31 (FSA Insured) | 2,080,000 | 2,270,965 | ||
5% 5/1/38 (FSA Insured) | 1,000,000 | 1,068,580 | ||
Rochester Cmnty. School District: | ||||
4% 5/1/19 | 1,375,000 | 1,515,800 | ||
5% 5/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,475,000 | 1,687,444 | ||
Rockford Pub. Schools Gen. Oblig. (2008 School Bldg. and Site Proj.) 5% 5/1/30 (FSA Insured) | 3,975,000 | 4,421,035 | ||
Roseville Cmnty. Schools Series 2014: | ||||
5% 5/1/24 | 575,000 | 686,964 | ||
5% 5/1/25 | 1,000,000 | 1,202,910 | ||
5% 5/1/26 | 1,385,000 | 1,655,020 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev.: | ||||
(William Beaumont Hosp. Proj.) Series 2009 V: | ||||
8% 9/1/29 (Pre-Refunded to 9/1/18 @ 100) | 1,945,000 | 2,431,328 | ||
8.25% 9/1/39 (Pre-Refunded to 9/1/18 @ 100) | 3,425,000 | 4,312,007 | ||
Series 2014 D: | ||||
5% 9/1/26 | 1,000,000 | 1,164,220 | ||
5% 9/1/27 | 1,000,000 | 1,161,610 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Royal Oak Hosp. Fin. Auth. Hosp. Rev.: - continued | ||||
Series 2014 D: | ||||
5% 9/1/28 | $ 1,500,000 | $ 1,737,195 | ||
Saginaw Hosp. Fin. Auth. Hosp. Rev. (Covenant Med. Ctr., Inc.) Series 2010 H, 5% 7/1/30 | 5,000,000 | 5,465,300 | ||
Saint Clair County Gen. Oblig. 5% 4/1/26 | 1,495,000 | 1,734,499 | ||
Shepherd Pub. Schools Series 2008, 5% 5/1/17 (FSA Insured) | 1,025,000 | 1,111,110 | ||
South Haven Gen. Oblig. Series 2009, 5.125% 12/1/33 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,145,230 | ||
South Redford School District Series 2005, 5% 5/1/16 (Pre-Refunded to 5/1/15 @ 100) | 1,125,000 | 1,142,449 | ||
Three Rivers Cmnty. Schools Series 2008, 5% 5/1/16 (FSA Insured) | 1,750,000 | 1,852,708 | ||
Troy School District Series 2006: | ||||
5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,015,420 | ||
5% 5/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,059,240 | ||
Utica Cmnty. Schools Series 2007, 5% 5/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,015,350 | ||
Wayne Charter County Gen. Oblig. Series 2001 A, 5.5% 12/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,002,730 | ||
Wayne County Arpt. Auth. Rev.: | ||||
(Detroit Metropolitan Wayne County Arpt. Proj.) Series 2012 A: | ||||
5% 12/1/24 | 2,875,000 | 3,327,180 | ||
5% 12/1/25 | 5,120,000 | 6,012,570 | ||
Series 2011 A, 5% 12/1/21 (c) | 5,000,000 | 5,740,050 | ||
Series 2012 A: | ||||
5% 12/1/22 | 2,220,000 | 2,581,127 | ||
5% 12/1/23 | 2,300,000 | 2,672,370 | ||
Series 2014 C: | ||||
5% 12/1/29 (c) | 720,000 | 820,699 | ||
5% 12/1/31 (c) | 860,000 | 967,147 | ||
5% 12/1/34 (c) | 1,655,000 | 1,829,089 | ||
West Ottawa Pub. School District: | ||||
Series 2012 A: | ||||
5% 5/1/25 | 4,310,000 | 5,029,296 | ||
5% 5/1/26 | 2,000,000 | 2,332,500 | ||
Series 2014 1: | ||||
5% 5/1/30 | 725,000 | 840,819 | ||
5% 5/1/32 | 500,000 | 575,490 | ||
5% 5/1/34 | 900,000 | 1,028,052 | ||
5% 5/1/35 | 250,000 | 284,923 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Michigan - continued | ||||
Western Michigan Univ. Rev.: | ||||
Series 2008, 5% 11/15/20 (FSA Insured) | $ 5,280,000 | $ 5,929,123 | ||
Series 2014: | ||||
5% 11/15/25 | 320,000 | 382,096 | ||
5% 11/15/26 | 400,000 | 475,340 | ||
5% 11/15/28 | 650,000 | 766,292 | ||
5% 11/15/29 | 750,000 | 880,665 | ||
5% 11/15/30 | 855,000 | 999,974 | ||
5% 11/15/31 | 700,000 | 816,739 | ||
Western Townships Utils. Auth. Swr. Disp. Sys. Rev. Series 2012, 5% 1/1/23 | 1,000,000 | 1,183,940 | ||
Williamston Cmnty. Schools Gen. Oblig. Series 2005, 5% 5/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,014,170 | ||
Willow Run Cmnty. Schools County of Washtenaw Series 2005, 5% 5/1/17 (FSA Insured) | 1,875,000 | 1,903,238 | ||
Wyoming Sewage Disp. Sys. Rev. Series 2005, 5% 6/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,725,000 | 3,782,700 | ||
Zeeland Pub. Schools Series 2005: | ||||
5% 5/1/16 (Pre-Refunded to 5/1/15 @ 100) | 2,035,000 | 2,066,563 | ||
5% 5/1/17 (Pre-Refunded to 5/1/15 @ 100) | 170,000 | 172,637 | ||
| 551,447,599 | |||
Virgin Islands - 0.5% | ||||
Virgin Islands Pub. Fin. Auth.: | ||||
(Cruzan Proj.) Series 2009 A, 6% 10/1/39 | 1,500,000 | 1,676,835 | ||
Series 2009 B, 5% 10/1/25 | 1,200,000 | 1,321,884 | ||
| 2,998,719 |
TOTAL INVESTMENT PORTFOLIO - 98.3% (Cost $528,095,756) | 560,192,246 | ||
NET OTHER ASSETS (LIABILITIES) - 1.7% | 9,603,615 | ||
NET ASSETS - 100% | $ 569,795,861 |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 35.7% |
Health Care | 23.6% |
Water & Sewer | 10.4% |
Education | 7.4% |
Escrowed/Pre-Refunded | 6.2% |
Transportation | 5.7% |
Special Tax | 5.2% |
Others* (Individually Less Than 5%) | 5.8% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2014 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $528,095,756) |
| $ 560,192,246 |
Cash |
| 12,187,114 |
Receivable for fund shares sold | 249,283 | |
Interest receivable | 5,437,055 | |
Prepaid expenses | 1,139 | |
Other receivables | 1,332 | |
Total assets | 578,068,169 | |
|
|
|
Liabilities | ||
Payable for investments purchased - delayed delivery | $ 7,102,606 | |
Payable for fund shares redeemed | 278,676 | |
Distributions payable | 578,866 | |
Accrued management fee | 169,932 | |
Other affiliated payables | 98,660 | |
Other payables and accrued expenses | 43,568 | |
Total liabilities | 8,272,308 | |
|
|
|
Net Assets | $ 569,795,861 | |
Net Assets consist of: |
| |
Paid in capital | $ 538,364,489 | |
Undistributed net investment income | 139,453 | |
Accumulated undistributed net realized gain (loss) on investments | (804,571) | |
Net unrealized appreciation (depreciation) on investments | 32,096,490 | |
Net Assets, for 46,215,352 shares outstanding | $ 569,795,861 | |
Net Asset Value, offering price and redemption price per share ($569,795,861 ÷ 46,215,352 shares) | $ 12.33 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Income Fund
Financial Statements - continued
Statement of Operations
| Year ended December 31, 2014 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 21,708,946 |
|
|
|
Expenses | ||
Management fee | $ 1,974,856 | |
Transfer agent fees | 437,258 | |
Accounting fees and expenses | 136,781 | |
Custodian fees and expenses | 9,181 | |
Independent trustees' compensation | 2,457 | |
Registration fees | 20,195 | |
Audit | 54,582 | |
Legal | 6,916 | |
Miscellaneous | 4,643 | |
Total expenses before reductions | 2,646,869 | |
Expense reductions | (7,275) | 2,639,594 |
Net investment income (loss) | 19,069,352 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| (784,852) |
Change in net unrealized appreciation (depreciation) on investment securities | 29,876,877 | |
Net gain (loss) | 29,092,025 | |
Net increase (decrease) in net assets resulting from operations | $ 48,161,377 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 19,069,352 | $ 22,660,240 |
Net realized gain (loss) | (784,852) | 3,599,552 |
Change in net unrealized appreciation (depreciation) | 29,876,877 | (46,628,546) |
Net increase (decrease) in net assets resulting | 48,161,377 | (20,368,754) |
Distributions to shareholders from net investment income | (19,039,526) | (22,640,771) |
Distributions to shareholders from net realized gain | (579,735) | (2,990,760) |
Total distributions | (19,619,261) | (25,631,531) |
Share transactions | 62,013,114 | 83,580,460 |
Reinvestment of distributions | 12,624,695 | 16,076,286 |
Cost of shares redeemed | (61,673,896) | (219,065,996) |
Net increase (decrease) in net assets resulting from share transactions | 12,963,913 | (119,409,250) |
Redemption fees | 681 | 16,984 |
Total increase (decrease) in net assets | 41,506,710 | (165,392,551) |
|
|
|
Net Assets | ||
Beginning of period | 528,289,151 | 693,681,702 |
End of period (including undistributed net investment income of $139,453 and undistributed net investment income of $161,981, respectively) | $ 569,795,861 | $ 528,289,151 |
Other Information Shares | ||
Sold | 5,115,885 | 6,787,792 |
Issued in reinvestment of distributions | 1,042,579 | 1,331,508 |
Redeemed | (5,113,438) | (18,255,790) |
Net increase (decrease) | 1,045,026 | (10,136,490) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 11.70 | $ 12.54 | $ 12.24 | $ 11.66 | $ 11.85 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .422 | .437 | .445 | .463 | .462 |
Net realized and unrealized gain (loss) | .642 | (.777) | .303 | .586 | (.184) |
Total from investment operations | 1.064 | (.340) | .748 | 1.049 | .278 |
Distributions from net investment income | (.421) | (.436) | (.444) | (.462) | (.461) |
Distributions from net realized gain | (.013) | (.064) | (.004) | (.007) | (.007) |
Total distributions | (.434) | (.500) | (.448) | (.469) | (.468) |
Redemption fees added to paid in capital B, D | - | - | - | - | - |
Net asset value, end of period | $ 12.33 | $ 11.70 | $ 12.54 | $ 12.24 | $ 11.66 |
Total ReturnA | 9.23% | (2.75)% | 6.19% | 9.20% | 2.32% |
Ratios to Average Net Assets C |
|
|
|
|
|
Expenses before reductions | .48% | .48% | .49% | .49% | .49% |
Expenses net of fee waivers, if any | .48% | .48% | .49% | .49% | .49% |
Expenses net of all reductions | .48% | .48% | .48% | .49% | .49% |
Net investment income (loss) | 3.49% | 3.59% | 3.57% | 3.90% | 3.86% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 569,796 | $ 528,289 | $ 693,682 | $ 621,994 | $ 626,752 |
Portfolio turnover rate | 12% | 8% | 10% | 9% | 7% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Investment Changes/Performance (Unaudited)
Effective Maturity Diversification | |||
Days | % of fund's investments 12/31/14 | % of fund's investments 6/30/14 | % of fund's investments 12/31/13 |
1 - 7 | 63.1 | 72.6 | 74.1 |
8 - 30 | 5.7 | 4.5 | 4.3 |
31 - 60 | 14.2 | 12.8 | 11.8 |
61 - 90 | 3.3 | 2.8 | 0.9 |
91 - 180 | 1.7 | 2.1 | 1.4 |
> 180 | 12.0 | 5.2 | 7.5 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940. |
Weighted Average Maturity | |||
| 12/31/14 | 6/30/14 | 12/31/13 |
Fidelity Michigan Municipal Money Market Fund | 37 Days | 26 Days | 27 Days |
All Tax-Free Money Market Funds Average* | 37 Days | 35 Days | 36 Days |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
* Source: iMoneyNet, Inc. |
Weighted Average Life | |||
| 12/31/14 | 6/30/14 | 12/31/13 |
Fidelity Michigan Municipal Money Market Fund | 37 Days | 26 Days | 27 Days |
Weighted Average Life (WAL) is the weighted average of the life of the securities held in a fund or portfolio and can be used as a measure of sensitivity to changes in liquidity and/or credit risk. Generally, the higher the value, the greater the sensitivity. WAL is based on the dollar-weighted average length of time until principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. The difference between WAM and WAL is that WAM takes into account interest rate resets and WAL does not. WAL for money market funds is not the same as WAL of a mortgage- or asset-backed security. |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | Variable Rate |
| ![]() | Variable Rate |
| ||
![]() | Other Municipal |
| ![]() | Other Municipal |
| ||
![]() | Investment |
| ![]() | Investment |
| ||
![]() | Net Other Assets |
| ![]() | Net Other Assets |
|
Current and Historical Seven-Day Yields |
| 12/31/14 | 9/30/14 | 6/30/14 | 3/31/14 | 12/31/13 |
Fidelity Michigan Municipal Money Market Fund | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it's possible to lose money investing in the fund. A portion of the Fund's expenses was reimbursed and/or waived. Absent such reimbursements and/ or waivers the yield for the period ending December 31, 2014, the most recent period shown in the table, would have been -0.46%.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Investments December 31, 2014
Showing Percentage of Net Assets
Variable Rate Demand Note - 45.5% | |||
Principal Amount | Value | ||
Alabama - 0.0% | |||
Decatur Indl. Dev. Board Exempt Facilities Rev. (Nucor Steel Decatur LLC Proj.) Series 2003 A, 0.24% 1/7/15, VRDN (a)(d) | $ 600,000 | $ 600,000 | |
Delaware - 0.5% | |||
Delaware Econ. Dev. Auth. Rev. (Delmarva Pwr. & Lt. Co. Proj.): | |||
Series 1987, 0.1% 1/2/15, VRDN (a)(d) | 2,300,000 | 2,300,000 | |
Series 1988, 0.1% 1/2/15, VRDN (a)(d) | 500,000 | 500,000 | |
Series 1994, 0.1% 1/2/15, VRDN (a)(d) | 1,900,000 | 1,900,000 | |
Series 1999 A, 0.18% 1/7/15, VRDN (a) | 400,000 | 400,000 | |
| 5,100,000 | ||
Louisiana - 0.0% | |||
Saint James Parish Gen. Oblig. (Nucor Steel Louisiana LLC Proj.) Series 2010 A1, 0.22% 1/7/15, VRDN (a) | 300,000 | 300,000 | |
Michigan - 43.7% | |||
Central Michigan Univ. Rev. Series 2008 A, 0.06% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | 12,410,000 | 12,410,000 | |
Grand Traverse County Hosp. Series 2011 B, 0.07% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | 19,825,000 | 19,825,000 | |
Grand Valley Michigan State Univ. Rev. Series 2008 B, 0.04% 1/7/15, LOC U.S. Bank NA, Cincinnati, VRDN (a) | 27,940,000 | 27,940,000 | |
Huron Co. Econ. Dev. Corp. Ltd. Oblig. Rev. (Scheurer Hosp. Proj.) Series 2001, 0.24% 1/7/15, LOC RBS Citizens NA, VRDN (a) | 670,000 | 670,000 | |
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. (Metropolitan Hosp. Proj.) Series 2012, 0.04% 1/7/15, LOC Bank of America NA, VRDN (a) | 18,150,000 | 18,150,000 | |
Livonia Econ. Dev. Corp. (Madonna Univ. Proj.) Series 2009, 0.04% 1/7/15, LOC Fed. Home Ln. Bank Chicago, VRDN (a) | 21,885,000 | 21,885,000 | |
Michigan Bldg. Auth. Rev.: | |||
Participating VRDN Series EGL 14 0028, 0.05% 1/7/15 (Liquidity Facility Citibank NA) (a)(e) | 20,000,000 | 20,000,000 | |
Series 2007 1, 0.05% 1/7/15, LOC Citibank NA, VRDN (a) | 5,415,000 | 5,415,000 | |
Series 2011 B, 0.05% 1/7/15, LOC Citibank NA, VRDN (a) | 6,800,000 | 6,800,000 | |
Michigan Fin. Auth. Rev.: | |||
Participating VRDN Series Putters 4286, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 2,000,000 | 2,000,000 | |
Series 22 A, 0.06% 1/7/15, LOC State Street Bank & Trust Co., Boston, VRDN (a)(d) | 63,800,000 | 63,800,000 | |
Michigan Higher Ed. Rev. (Univ. of Detroit Mercy Proj.) Series 2007, 0.06% 1/2/15, LOC Comerica Bank, VRDN (a) | 5,360,000 | 5,360,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Hosp. Fin. Auth. Rev.: | |||
(McLaren Health Care Corp. Proj.): | |||
Series 2008 B1, 0.04% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | $ 100,000 | $ 100,000 | |
Series 2008 B3, 0.04% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | 8,000,000 | 8,000,000 | |
(Trinity Health Sys. Proj.) Series 2005 F, 0.03% 1/7/15, VRDN (a) | 5,030,000 | 5,030,000 | |
Michigan Hsg. Dev. Auth. Ltd.: | |||
(Sand Creek Apts., Phase I Proj.) Series 2007 A, 0.07% 1/7/15, LOC Citibank NA, VRDN (a)(d) | 3,635,000 | 3,635,000 | |
(Sand Creek II Apts. Proj.) Series 2007 A, 0.07% 1/7/15, LOC Citibank NA, VRDN (a)(d) | 5,400,000 | 5,400,000 | |
(Teal Run I Apts. Proj.) Series 2007 A, 0.07% 1/7/15, LOC Citibank NA, VRDN (a)(d) | 6,245,000 | 6,245,000 | |
Michigan Hsg. Dev. Auth. Multi-family Hsg. Rev.: | |||
(Canton Club East Apts. Proj.) Series 1998 A, 0.07% 1/7/15, LOC Fannie Mae, VRDN (a)(d) | 6,300,000 | 6,300,000 | |
(Hunt Club Apts. Proj.) 0.06% 1/7/15, LOC Fannie Mae, VRDN (a)(d) | 6,090,000 | 6,090,000 | |
Michigan Hsg. Dev. Ltd. Oblig. Rev. (JAS Non-Profit Hsg. Corp. VI Proj.) Series 2000, 0.06% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | 5,700,000 | 5,700,000 | |
Michigan State Univ. Revs. Series 2000 A, 0.02% 1/7/15 (Liquidity Facility Northern Trust Co.), VRDN (a) | 28,035,000 | 28,035,000 | |
Michigan Strategic Fund Indl. Dev. Rev. (Lapeer Industries, Inc. Proj.) Series 2007, 0.13% 1/7/15, LOC Bank of America NA, VRDN (a)(d) | 780,000 | 780,000 | |
Michigan Strategic Fund Ltd. Oblig. Rev.: | |||
(Air Products and Chemicals, Inc. Proj.) Series 2007 V1, 0.02% 1/2/15, VRDN (a) | 45,930,000 | 45,930,000 | |
(BC & C Proj.) 0.14% 1/7/15, LOC Comerica Bank, VRDN (a)(d) | 165,000 | 165,000 | |
(Consumers Energy Co. Proj.): | |||
0.02% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a)(d) | 1,900,000 | 1,900,000 | |
0.04% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | 24,500,000 | 24,500,000 | |
(Greenpath, Inc. Proj.) Series 2011, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (a) | 5,330,000 | 5,330,000 | |
(Henry Ford Museum & Greenfield Village Proj.) Series 2002, 0.03% 1/2/15, LOC Comerica Bank, VRDN (a) | 10,550,000 | 10,550,000 | |
(The Kroger Co. Recovery Zone Facilities Bond Proj.) Series 2010, 0.04% 1/7/15, LOC Bank of Tokyo-Mitsubishi UFJ Ltd., VRDN (a) | 19,000,000 | 19,000,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Strategic Fund Ltd. Oblig. Rev.: - continued | |||
(The YMCA of Greater Grand Rapids Proj.) Series 2010, 0.05% 1/7/15, LOC Comerica Bank, VRDN (a) | $ 9,485,000 | $ 9,485,000 | |
Oakland County Econ. Dev. Corp. Ltd. Oblig. Rev. (Osmic, Inc. Proj.) Series 2001 A, 0.11% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a)(d) | 3,300,000 | 3,300,000 | |
Univ. of Michigan Rev.: | |||
Series 2012 A, 0.04% 1/7/15, VRDN (a) | 3,130,000 | 3,130,000 | |
Series 2012 D1, 0.01% 1/2/15, VRDN (a) | 1,200,000 | 1,200,000 | |
Series 2012 D2, 0.03% 1/7/15, VRDN (a) | 52,415,000 | 52,415,000 | |
| 456,475,000 | ||
Nebraska - 0.1% | |||
Stanton County Indl. Dev. Rev. (Nucor Corp. Proj.) Series 1996, 0.24% 1/7/15, VRDN (a)(d) | 600,000 | 600,000 | |
Nevada - 0.6% | |||
Clark County Arpt. Rev.: | |||
Series 2008 C2, 0.04% 1/7/15, LOC Landesbank Baden-Wurttemberg, VRDN (a)(d) | 700,000 | 700,000 | |
Series 2008 C3, 0.04% 1/7/15, LOC Landesbank Baden-Wurttemberg, VRDN (a)(d) | 5,300,000 | 5,300,000 | |
| 6,000,000 | ||
New Jersey - 0.2% | |||
Salem County Poll. Cont. Fin. Auth. Rev. (Pub. Svc. Elec. and Gas Co. Proj.): | |||
Series 2003 B1, 0.17% 1/7/15, VRDN (a) | 1,400,000 | 1,400,000 | |
Series 2012 A, 0.18% 1/7/15, VRDN (a)(d) | 500,000 | 500,000 | |
| 1,900,000 | ||
New York - 0.0% | |||
Dutchess County Indl. Dev. Agcy. Civic Facility Rev. (Lutheran Ctr. at Poughkeepsie, Inc. Proj.) 0.11% 1/7/15, LOC KeyBank NA, VRDN (a) | 100,000 | 100,000 | |
Texas - 0.1% | |||
Port Arthur Navigation District Envir. Facilities Rev. (Motiva Enterprises LLC Proj.): | |||
Series 2001 A, 0.2% 1/2/15, VRDN (a) | 600,000 | 600,000 | |
Series 2004, 0.16% 1/7/15, VRDN (a)(d) | 400,000 | 400,000 | |
Series 2010 C, 0.2% 1/2/15, VRDN (a) | 300,000 | 300,000 | |
| 1,300,000 | ||
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Virginia - 0.2% | |||
Newport News Indl. Dev. Auth. (CNU Warwick LLC Student Apts. Proj.) 0.11% 1/7/15, LOC Bank of America NA, VRDN (a) | $ 1,810,000 | $ 1,810,000 | |
Wyoming - 0.1% | |||
Lincoln County Envir. (PacifiCorp Proj.) Series 1995, 0.21% 1/7/15, VRDN (a)(d) | 600,000 | 600,000 | |
TOTAL VARIABLE RATE DEMAND NOTE (Cost $474,785,000) |
| ||
Other Municipal Debt - 34.0% | |||
|
|
|
|
Kentucky - 0.0% | |||
Jefferson County Poll. Cont. Rev. Bonds (Louisville Gas & Elec. Co. Proj.) Series 2001 A, 0.23% tender 1/8/15, CP mode | 300,000 | 300,000 | |
Massachusetts - 0.2% | |||
Massachusetts Indl. Fin. Agcy. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1992: | |||
0.25% tender 1/22/15, CP mode | 450,000 | 450,000 | |
0.25% tender 1/26/15, CP mode | 1,300,000 | 1,300,000 | |
| 1,750,000 | ||
Michigan - 33.4% | |||
Ann Arbor Bldg. Auth. Bonds Series 2005 A, 5% 3/1/15 | 1,130,000 | 1,139,006 | |
Kent Hosp. Fin. Auth. Hosp. Facilities Rev. Bonds: | |||
(Spectrum Health Sys. Proj.) Series 2008 A, 5.5%, tender 1/15/15 (a) | 21,395,000 | 21,438,560 | |
Series 2011 A, 5% 11/15/15 | 750,000 | 780,718 | |
Michigan Bldg. Auth. Rev.: | |||
Bonds (Facilities Prog.) Series 1 A, 5% 10/15/15 | 3,250,000 | 3,372,069 | |
Series 6: | |||
0.07% 2/19/15, LOC State Street Bank & Trust Co., Boston, LOC U.S. Bank NA, Cincinnati, CP | 10,000,000 | 10,000,000 | |
0.07% 2/19/15, LOC State Street Bank & Trust Co., Boston, LOC U.S. Bank NA, Cincinnati, CP | 3,500,000 | 3,500,000 | |
Michigan Fin. Auth. Rev. Bonds: | |||
Series 2012 A: | |||
3% 1/1/15 | 1,215,000 | 1,215,000 | |
4% 1/1/15 | 1,000,000 | 1,000,000 | |
5% 1/1/15 | 1,350,000 | 1,350,000 | |
5% 7/1/15 | 44,000,000 | 45,067,142 | |
Series 2013 M1, 0.08%, tender 3/2/15 (a) | 9,800,000 | 9,800,000 | |
Other Municipal Debt - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Michigan Gen. Oblig. Bonds: | |||
(Envir. Prog.) Series 2005 B, 5% 11/1/15 | $ 1,000,000 | $ 1,039,927 | |
Series 2001, 5.5% 12/1/15 | 1,800,000 | 1,887,405 | |
Michigan Hosp. Fin. Auth. Rev. Bonds: | |||
(Ascension Health Cr. Group Proj.) Series 1999 B4, 0.9%, tender 3/16/15 (a) | 10,350,000 | 10,365,640 | |
(Ascension Health Sr. Cr. Group Proj.) Series 2010 F: | |||
0.1%, tender 7/29/15 (a) | 7,610,000 | 7,610,000 | |
0.1%, tender 7/29/15 (a) | 7,900,000 | 7,900,000 | |
0.1%, tender 7/29/15 (a) | 14,200,000 | 14,200,000 | |
(Trinity Health Sys. Proj.): | |||
Seeries 2008 C, 0.06% tender 1/27/15, CP mode | 10,000,000 | 10,000,000 | |
Series 2008 C: | |||
0.06% tender 1/26/15, CP mode | 10,000,000 | 10,000,000 | |
0.06% tender 2/2/15, CP mode | 10,000,000 | 10,000,000 | |
0.06% tender 2/17/15, CP mode | 5,000,000 | 5,000,000 | |
0.07% tender 2/3/15, CP mode | 9,800,000 | 9,800,000 | |
0.07% tender 2/4/15, CP mode | 9,800,000 | 9,800,000 | |
0.07% tender 2/5/15, CP mode | 9,800,000 | 9,800,000 | |
0.07% tender 2/18/15, CP mode | 9,800,000 | 9,800,000 | |
Michigan State Univ. Revs. Bonds: | |||
Series 2007 A, 5% 2/15/15 | 720,000 | 724,270 | |
Series 2010 C, 5% 2/15/15 | 1,500,000 | 1,508,923 | |
Series WF 11 33 C, 0.15%, tender 7/9/15 (Liquidity Facility Wells Fargo Bank NA) (a)(e)(f) | 7,610,000 | 7,610,000 | |
Michigan Strategic Fund Ltd. Oblig. Rev. Bonds (Facility for Rare Isotope Beams Proj.) Series 2014, 2% 3/1/15 | 1,940,000 | 1,945,705 | |
Michigan Trunk Line Fund Rev. Bonds: | |||
Series 2012, 5% 11/15/15 | 2,000,000 | 2,084,119 | |
Series 2014, 2% 11/15/15 | 14,800,000 | 15,037,774 | |
Series B, 5% 9/1/15 | 4,990,000 | 5,150,238 | |
Univ. of Michigan Rev.: | |||
Bonds: | |||
Series 2009 A: | |||
3% 4/1/15 | 3,500,000 | 3,525,200 | |
5% 4/1/15 | 3,535,000 | 3,577,307 | |
Series 2009 B: | |||
0.06% tender 1/15/15, CP mode | 5,200,000 | 5,200,000 | |
0.06% tender 2/6/15, CP mode | 10,000,000 | 10,000,000 | |
0.06% tender 2/10/15, CP mode | 10,000,000 | 10,000,000 | |
0.07% tender 2/17/15, CP mode | 10,000,000 | 10,000,000 | |
Series 2012 C, 4% 4/1/15 | 1,000,000 | 1,009,664 | |
Other Municipal Debt - continued | |||
Principal Amount | Value | ||
Michigan - continued | |||
Univ. of Michigan Rev.: - continued | |||
Bonds: | |||
Series 2014 A, 3% 4/1/15 | $ 100,000 | $ 100,676 | |
Series J1: | |||
0.06% 3/5/15, CP | 10,000,000 | 10,000,000 | |
0.07% 2/5/15, CP | 14,300,000 | 14,300,000 | |
0.07% 2/9/15, CP | 14,445,000 | 14,445,000 | |
0.08% 1/5/15, CP | 9,365,000 | 9,365,000 | |
Wayne-Westland Cmnty. Schools Bonds Series 2014, 3% 5/1/15 (Michigan Gen. Oblig. Guaranteed) | 7,465,000 | 7,532,483 | |
| 348,981,826 | ||
New Hampshire - 0.3% | |||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1990 A2: | |||
0.32% tender 1/22/15, CP mode (d) | 500,000 | 500,000 | |
0.32% tender 1/26/15, CP mode (d) | 1,300,000 | 1,300,000 | |
0.32% tender 1/28/15, CP mode (d) | 1,470,000 | 1,470,000 | |
| 3,270,000 | ||
Virginia - 0.1% | |||
Halifax County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 1992, 0.45% tender 1/15/15, CP mode (d) | 600,000 | 600,000 | |
West Virginia - 0.0% | |||
Grant County Cmnty. Solid Waste Disp. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 1996, 0.32% tender 1/22/15, CP mode (d) | 300,000 | 300,000 | |
TOTAL OTHER MUNICIPAL DEBT (Cost $355,201,826) |
| ||
Investment Company - 9.3% | |||
Principal Amount | Value | ||
Fidelity Municipal Cash Central Fund, 0.04% (b)(c) (Cost $97,270,000) | $ 97,270,000 | $ 97,270,000 | |
TOTAL INVESTMENT PORTFOLIO - 88.8% (Cost $927,256,826) | 927,256,826 | ||
NET OTHER ASSETS (LIABILITIES) - 11.2% | 116,968,886 | ||
NET ASSETS - 100% | $ 1,044,225,712 |
Security Type Abbreviations | ||
CP | - | COMMERCIAL PAPER |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
Legend |
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(b) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(c) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Provides evidence of ownership in one or more underlying municipal bonds. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,610,000 or 0.7% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Cost |
Michigan State Univ. Revs. Bonds Series WF 11 33 C, 0.15%, tender 7/9/15 (Liquidity Facility Wells Fargo Bank NA) | 9/24/14 | $ 7,610,000 |
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 | $ 54,752 |
Other Information |
The date shown for securities represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2014 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $829,986,826) | $ 829,986,826 |
|
Fidelity Central Funds (cost $97,270,000) | 97,270,000 |
|
Total Investments (cost $927,256,826) |
| $ 927,256,826 |
Cash |
| 111,479,173 |
Receivable for fund shares sold | 14,817,336 | |
Interest receivable | 2,288,257 | |
Distributions receivable from Fidelity Central Funds | 3,507 | |
Prepaid expenses | 2,328 | |
Other receivables | 4,053 | |
Total assets | 1,055,851,480 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | 11,428,251 | |
Distributions payable | 403 | |
Accrued management fee | 27,996 | |
Other affiliated payables | 136,081 | |
Other payables and accrued expenses | 33,037 | |
Total liabilities | 11,625,768 | |
|
|
|
Net Assets | $ 1,044,225,712 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,044,228,172 | |
Distributions in excess of net investment income | (1,868) | |
Accumulated undistributed net realized gain (loss) on investments | (592) | |
Net Assets, for 1,043,088,713 shares outstanding | $ 1,044,225,712 | |
Net Asset Value, offering price and redemption price per share ($1,044,225,712 ÷ 1,043,088,713 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Michigan Municipal Money Market Fund
Financial Statements - continued
Statement of Operations
| Year ended December 31, 2014 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 714,997 |
Income from Fidelity Central Funds |
| 54,752 |
Total income |
| 769,749 |
|
|
|
Expenses | ||
Management fee | $ 3,671,408 | |
Transfer agent fees | 1,460,978 | |
Accounting fees and expenses | 118,254 | |
Custodian fees and expenses | 12,354 | |
Independent trustees' compensation | 4,456 | |
Registration fees | 34,315 | |
Audit | 37,974 | |
Legal | 8,451 | |
Miscellaneous | 6,037 | |
Total expenses before reductions | 5,354,227 | |
Expense reductions | (4,684,070) | 670,157 |
Net investment income (loss) | 99,592 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| (552) |
Net increase in net assets resulting from operations | $ 99,040 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 99,592 | $ 100,382 |
Net realized gain (loss) | (552) | 251,597 |
Net increase in net assets resulting | 99,040 | 351,979 |
Distributions to shareholders from net investment income | (101,460) | (98,444) |
Distributions to shareholders from net realized gain | - | (71,663) |
Total distributions | (101,460) | (170,107) |
Share transactions at net asset value of $1.00 per share | 2,312,251,944 | 2,416,611,488 |
Reinvestment of distributions | 96,902 | 163,051 |
Cost of shares redeemed | (2,345,811,798) | (2,324,865,090) |
Net increase (decrease) in net assets and shares resulting from share transactions | (33,462,952) | 91,909,449 |
Total increase (decrease) in net assets | (33,465,372) | 92,091,321 |
|
|
|
Net Assets | ||
Beginning of period | 1,077,691,084 | 985,599,763 |
End of period (including distributions in excess of net investment income of $1,868 and $0, respectively) | $ 1,044,225,712 | $ 1,077,691,084 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | - | - | - | - | - |
Net realized and unrealized gain (loss) D | - | - | - | - | - |
Total from investment operation D | - | - | - | - | - |
Distributions from net investment income D | - | - | - | - | - |
Distributions from net realized gain | - | - D | - | - | - |
Total distributions D | - | - | - | - | - |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total ReturnA | .01% | .02% | .01% | .01% | .01% |
Ratios to Average Net AssetsB, C |
|
|
|
|
|
Expenses before reductions | .53% | .54% | .55% | .55% | .55% |
Expenses net of fee waivers, if any | .07% | .11% | .19% | .22% | .30% |
Expenses net of all reductions | .07% | .11% | .19% | .22% | .30% |
Net investment income (loss) | .01% | .01% | .01% | .01% | .01% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,044,226 | $ 1,077,691 | $ 985,600 | $ 875,636 | $ 890,255 |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed or waived or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements, waivers or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2014
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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between funds. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Annual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Income Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Income Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
For the Income Fund, debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Municipal securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
For the Money Market Fund, as permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates fair value. The amortized cost of an instrument is determined by valuing it at its original
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.
For the Income Fund, changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of December 31, 2014, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards 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 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized | Gross unrealized | Net unrealized |
Fidelity Michigan Municipal Income Fund | $ 527,963,522 | $ 32,428,256 | $ (199,532) | $ 32,228,724 |
Fidelity Michigan Municipal Money Market Fund | 927,256,826 | - | - | - |
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed tax-exempt | Capital loss | Net unrealized |
Fidelity Michigan Municipal Income Fund | $ 7,865 | $ (804,571) | $ 32,228,724 |
Fidelity Michigan Municipal Money Market Fund | - | (592) | - |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| No expiration |
| |
|
Short-term |
Long-term | Total capital loss carryfoward |
Fidelity Michigan Municipal Income Fund | $ (719,374) | $ (85,197) | $ (804,571) |
Fidelity Michigan Municipal Money Market Fund | - | (592) | (592) |
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, 2014 |
|
| |
| Tax-Exempt | Long-term | Total |
Fidelity Michigan Municipal Income Fund | $ 19,039,526 | $ 579,735 | $19,619,261 |
Fidelity Michigan Municipal Money Market Fund | 101,460 | - | 101,460 |
December 31, 2013 |
|
|
|
| Tax-Exempt | Long-term | Total |
Fidelity Michigan Municipal Income Fund | $ 22,640,771 | $ 2,990,760 | $ 25,631,531 |
Fidelity Michigan Municipal Money Market Fund | 98,444 | 71,663 | 170,107 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Income Fund less than 30 days may be subject to a redemption fee equal to .50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Funds transacted in 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. The securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's Schedule of Investments. The 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.
Restricted Securities. The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable Fund's Schedule of Investments.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Funds' financial statements and related disclosures.
New Rule Issuance. In July 2014, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-9616, Money Market Fund Reform; Amendments to Form PF, which amends the rules governing money market funds. The final amendments impose different implementation dates for the changes that certain money market funds will need to make. Management is currently evaluating the implication of these amendments and their impact of the Final Rule to the Money Market Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $75,052,663 and $63,947,991, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized 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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets was as follows.
Fund Name | Individual Rate | Group Rate | Total |
Fidelity Michigan Municipal Income Fund | .25% | .11% | .36% |
Fidelity Michigan Municipal Money Market Fund | .25% | .11% | .36% |
Annual Report
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, under which FIIOC performs the activities associated with the Funds' transfer agency, dividend disbursing and shareholder servicing functions. The Funds pay Citibank account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Michigan Municipal Income Fund | .08% |
Fidelity Michigan Municipal Money Market Fund | .14% |
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, under which FSC maintains each Fund's accounting records. The fee is paid to Citibank and is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Income Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Fidelity Michigan Municipal Income Fund | $ 876 |
During the period, the Income Fund did not borrow on this line of credit.
7. Expense Reductions.
The investment adviser or its affiliates voluntarily agreed to waive certain fees for the Money Market Fund in order to maintain a minimum annualized yield of .01%. Such arrangements may be discontinued by the investment adviser at any time. For the period, the amount of the waiver was $4,676,300.
Annual Report
Notes to Financial Statements - continued
7. Expense Reductions - continued
In addition, through arrangements with each applicable Fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
| Custody | Transfer |
Fidelity Michigan Municipal Income Fund | $ 4,642 | $ 2,633 |
Fidelity Michigan Municipal Money Market Fund | 4,543 | 3,227 |
8. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Fidelity Michigan Municipal Income Fund and Fidelity Michigan Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Michigan Municipal Income Fund (a fund of Fidelity Municipal Trust) and Fidelity Michigan Municipal Money Market Fund (a fund of Fidelity Municipal Trust II) at December 31, 2014 the results of each of their operations for the year then ended the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Michigan Municipal Income Fund's and Fidelity Michigan Municipal Money Market Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 17, 2015
Annual Report
Trustees and Officers
The Trustees and officers of the trusts and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for Elizabeth S. Acton, James C. Curvey, and John Engler, each of the Trustees oversees 233 funds. Ms. Acton and Mr. Engler each oversees 215 funds. Mr. Curvey oversees 407 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. The Operations Committee also worked and continues to work with FMR to enhance the stress tests required under SEC regulations for money market funds. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
Annual Report
Trustees and Officers - continued
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
James C. Curvey (1935) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), and a Director of FMR Co., Inc. (2007-2014). |
Abigail P. Johnson (1961) | |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees | |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC, President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trusts or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
Year of Election or Appointment: 2013 Trustee | |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
John Engler (1948) | |
Year of Election or Appointment: 2014 Trustee | |
| Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association. |
Albert R. Gamper, Jr. (1942) | |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees | |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
Year of Election or Appointment: 2010 Trustee | |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
Year of Election or Appointment: 2008 Trustee | |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
Year of Election or Appointment: 2009 Trustee | |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees | |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation | |
Elizabeth Paige Baumann (1968) | |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer | |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Robert P. Brown (1963) | |
Year of Election or Appointment: 2012 Vice President of Fidelity's Bond Funds | |
| Mr. Brown also serves as Vice President of other funds. Mr. Brown serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director, Research of Fidelity Management & Research (U.K.) Inc. (2008-present), and is an employee of Fidelity Investments. Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's Money Market Funds (2010-2012). |
Marc Bryant (1966) | |
Year of Election or Appointment: 2013 Assistant Secretary | |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) | |
Year of Election or Appointment: 2013 President and Treasurer | |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) | |
Year of Election or Appointment: 2014 Chief Financial Officer | |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) | |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) | |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Limited (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Chris Maher (1972) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) | |
Year of Election or Appointment: 2014 Vice President | |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) | |
Year of Election or Appointment: 2009 Assistant Treasurer | |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) | |
Year of Election or Appointment: 2008 Chief Compliance Officer | |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (2014-present), FMR (2014-present), Fidelity Investments Money Management, Inc. (2014-present), and is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
Year of Election or Appointment: 2011 Deputy Treasurer | |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
Distributions (Unaudited)
During fiscal year ended 2014, 100% of Fidelity Michigan Municipal Income Fund and Fidelity Michigan Municipal Money Market Fund's income dividends were free from federal income tax, and 1.27% of Fidelity Michigan Municipal Income Fund and 17.04% of Fidelity Michigan Municipal Money Market Fund's income dividends were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Michigan Municipal Income Fund / Fidelity Michigan Municipal Money Market Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the 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 relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by 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. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2014 meeting, the Board, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. 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 each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale exist and 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. In connection with separate internal corporate reorganizations involving Fidelity Management & Research (U.K.) Inc. (FMR U.K.) and Fidelity Management & Research (Japan) Inc. (FMR Japan), the Board approved certain non-material amendments to the funds' sub-advisory agreements with FMR U.K. and FMR Japan to reflect that, after these reorganizations, FMR Investment Management (UK) Limited and Fidelity Management & Research (Japan) Limited will carry on the business of FMR U.K. and FMR Japan, respectively. The Board noted that no changes to the portfolio managers or to the foreign research or investment advisory services provided to the funds were expected in connection with either reorganization and that the same personnel and resources would continue to be available to the funds at the new entities.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that each fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the funds, including the backgrounds of investment personnel of Fidelity, and also considered the funds' investment objectives, strategies, and related investment philosophies. 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 to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, 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 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 over time 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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
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 a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing a new Fidelity adviser, Fidelity SelectCo, LLC, to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance (for Fidelity Michigan Municipal Income Fund). The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.
Investment Performance (for Fidelity Michigan Municipal Money Market Fund). The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
Annual Report
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate peer groups, over appropriate time periods that may include full market cycles, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the fund's market value NAV over time and its resilience under various stressed conditions; and fund cash flows and other factors.
The Board recognizes that in interest rate environments where many competitors waive fees to maintain a minimum yield, relative money market fund performance on a net basis (after fees and expenses) may not be particularly meaningful due to miniscule performance differences among competitor funds. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate peer group for the most recent one-, three-, and five-year periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Management Fee. 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds' actual TMG %s are in the charts below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the charts and considered by the Board.
Annual Report
Fidelity Michigan Municipal Income Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2013.
Fidelity Michigan Municipal Money Market Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and above the median of its ASPG for 2013.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each fund's total expense ratio, 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 that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the funds. As part of its review, the Board also considered the current and historical total expense ratios 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 expense ratio ranked below its competitive median for 2013. The Board considered that Fidelity has been voluntarily waiving part or all of the transfer agent fees and/or management fees to maintain a minimum yield for Fidelity Michigan Municipal Money Market Fund, and also noted that Fidelity retains the ability to be repaid in certain circumstances.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients. The Board noted the findings of the 2013 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was 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 servicing each fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with each fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
Annual Report
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 Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and 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 was satisfied that the profitability was not excessive.
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 as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under FMR's management plus sector fund assets previously under FMR's management and currently managed by Fidelity SelectCo, LLC). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity 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 benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
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 certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) the methodology with respect to competitive fund data and peer group classifications; (viii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (ix) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
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
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for the deaf and hearing impaired
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(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
MIR-UANN-0215 1.787737.111
Fidelity®
Minnesota Municipal Income
Fund
Annual Report
December 31, 2014
(Fidelity Cover Art)
Contents
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
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/proxyvotingresults 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 LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2014 | Past 1 | Past 5 | Past 10 |
Fidelity® Minnesota Municipal Income Fund | 6.85% | 4.20% | 4.03% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Minnesota Municipal Income Fund on December 31, 2004. The chart shows how the value of your investment would have changed, and also shows how the Barclays® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds posted a strong result for the 12 months ending December 31, 2014, driven by steady demand, tight supply and improving credit fundamentals. The Barclays® Municipal Bond Index returned 9.05%, significantly outperforming the U.S. investment-grade taxable bond market. Munis were driven, in part, by continued economic growth, declining long-term interest rates, and the relative attractiveness of U.S. markets amid global economic and political uncertainty. More specific to munis, prices rose as investors became more upbeat about the fundamental outlook of many state and local governments. Additionally, a steady stream of municipal bond cash flows - coupon payments, maturities and those due to early bond calls by issuers - fueled reinvestment. Meanwhile, investors took solace that the financial distress experienced by Puerto Rico, Detroit and a few California cities in bankruptcy did not expand to the broader market. Lastly, the tax advantages of munis had particular appeal due to the higher federal tax rates for top earners that took effect in 2013, as well as the new 3.8% Medicare tax on unearned, non-municipal investment income.
Comments from Kevin Ramundo, Portfolio Manager of Fidelity® Minnesota Municipal Income Fund: For year, the fund returned 6.85%, while the Barclays® Minnesota Enhanced Modified 2% Tobacco Municipal Bond Index returned 6.55%. The fund performed as I expected, given my investment approach and the market environment, with a return that exceeded the benchmark. I kept the fund's interest rate sensitivity in line with the benchmark and evaluated bonds based on their yields, as well as their potential for price appreciation. Helping the fund outpace its benchmark was the fund's overweighting in health care bonds. The fund also benefited from overweighting holdings rated BBB. Both health care and BBB-rated securities performed quite well and outpaced many higher-quality bonds. Their outperformance stemmed mostly from their higher yields, which contributed to their total returns and drew demand from yield-hungry investors searching for higher returns. The fund's relative performance also was bolstered by its overweighting in state-appropriated securities and underweighted exposure to state general oblation bonds. State-appropriated bonds, too, benefited from strong demand for higher-yielding securities as investors looked to the bonds as alternatives to somewhat lower-yielding general obligation bonds issued by the state. Our relative underweighting in the long end of the yield curve - bonds with maturities of 20 years or more - hurt our results, as those bonds rose in price the most as long-term muni yields declined.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2014 to December 31, 2014).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Actual | .48% | $ 1,000.00 | $ 1,024.90 | $ 2.45 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five Sectors as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
General Obligations | 40.6 | 43.3 |
Health Care | 22.4 | 21.6 |
Electric Utilities | 13.4 | 14.7 |
Education | 8.9 | 9.4 |
Transportation | 8.1 | 6.3 |
Weighted Average Maturity as of December 31, 2014 | ||
|
| 6 months ago |
Years | 5.3 | 5.1 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2014 | ||
|
| 6 months ago |
Years | 5.5 | 5.8 |
Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | AAA 3.3% |
| ![]() | AAA 4.9% |
| ||
![]() | AA,A 85.7% |
| ![]() | AA,A 84.5% |
| ||
![]() | BBB 7.2% |
| ![]() | BBB 7.5% |
| ||
![]() | BB and Below 0.4% |
| ![]() | BB and Below 0.5% |
| ||
![]() | Not Rated 1.4% |
| ![]() | Not Rated 2.4% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's ratings are not available, we have used S&P ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2014
Showing Percentage of Net Assets
Municipal Bonds - 98.0% | ||||
| Principal Amount | Value | ||
Guam - 0.9% | ||||
Guam Ed. Fing. Foundation Ctfs. of Prtn. Series 2006 A, 5% 10/1/23 | $ 1,500,000 | $ 1,537,755 | ||
Guam Int'l. Arpt. Auth. Rev. Series 2013 C: | ||||
5% 10/1/17 (b) | 800,000 | 871,616 | ||
6.25% 10/1/34 (b) | 850,000 | 1,027,429 | ||
Guam Pwr. Auth. Rev. Series 2012 A, 5% 10/1/21 (FSA Insured) | 1,100,000 | 1,295,580 | ||
| 4,732,380 | |||
Minnesota - 96.9% | ||||
Alexandria Independent School District #206 Gen. Oblig. (Minnesota School District Cr. Enhancement Prog.) Series 2008 A, 5% 2/1/17 (FSA Insured) | 1,000,000 | 1,086,240 | ||
Anoka-Hennepin Independent School District 11 Series 2014 A: | ||||
5% 2/1/23 | 805,000 | 953,812 | ||
5% 2/1/24 | 1,110,000 | 1,323,986 | ||
5% 2/1/25 | 1,015,000 | 1,201,669 | ||
5% 2/1/26 | 1,220,000 | 1,434,708 | ||
5% 2/1/27 | 1,285,000 | 1,504,414 | ||
5% 2/1/28 | 1,345,000 | 1,564,141 | ||
5% 2/1/29 | 1,415,000 | 1,639,447 | ||
5% 2/1/34 | 1,800,000 | 2,047,194 | ||
Breckenridge Gen. Oblig. (Catholic Health Initiatives Proj.) Series 2004 A, 5% 5/1/30 | 4,575,000 | 4,586,346 | ||
Burnsville-Eagan-Savage Independent School District #191 Gen. Oblig. (Minnesota School District Cr. Enhancement Prog.) Series 2007 A, 5% 2/1/17 (FSA Insured) | 525,000 | 567,788 | ||
Chaska Independent School District #112 Gen. Oblig.: | ||||
(Cr. Enhancement Prog.): | ||||
Series 2012 A: | ||||
5% 2/1/19 | 4,090,000 | 4,680,882 | ||
5% 2/1/22 | 4,975,000 | 5,936,220 | ||
Series 2013 A, 4% 2/1/19 | 4,550,000 | 5,027,750 | ||
(School Bldg. Proj.) Series 2007 A, 5% 2/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 750,000 | 815,003 | ||
Series 2009 A, 5% 2/1/17 | 1,000,000 | 1,086,670 | ||
Ctr. City Health Care Facilities (Hazelden Betty Ford Foundation Proj.) Series 2014: | ||||
5% 11/1/23 | 775,000 | 927,474 | ||
5% 11/1/25 | 250,000 | 298,345 | ||
5% 11/1/26 | 500,000 | 593,850 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Ctr. City Health Care Facilities (Hazelden Betty Ford Foundation Proj.) Series 2014: - continued | ||||
5% 11/1/27 | $ 400,000 | $ 473,192 | ||
Duluth Independent School District #709 Ctfs. of Prtn. Series 2009 B: | ||||
4% 3/1/16 | 1,445,000 | 1,472,585 | ||
4% 3/1/17 | 1,495,000 | 1,552,528 | ||
4% 3/1/18 | 1,235,000 | 1,296,935 | ||
5% 3/1/30 | 2,535,000 | 2,608,490 | ||
Elk River Independent School District #728 Series 2006 A, 5% 2/1/19 (FSA Insured) | 3,500,000 | 3,670,485 | ||
Hennepin County Gen. Oblig. Series 2010 E, 5% 12/15/20 | 4,945,000 | 5,851,765 | ||
Hennepin County Sales Tax Rev. (Ballpark Proj.) Series 2007 A, 5% 12/15/24 | 1,000,000 | 1,123,730 | ||
Jordan Ind. School District Series 2014 A: | ||||
5% 2/1/28 | 1,000,000 | 1,184,050 | ||
5% 2/1/29 | 1,000,000 | 1,180,050 | ||
5% 2/1/30 | 1,245,000 | 1,463,199 | ||
Lakeville Independent School District #194 Series 2012 D: | ||||
5% 2/1/18 | 5,185,000 | 5,818,711 | ||
5% 2/1/20 | 1,570,000 | 1,841,453 | ||
Maple Grove Health Care Sys. Rev. (Maple Grove Hosp. Corp. Proj.) Series 2007: | ||||
5% 5/1/16 | 1,000,000 | 1,050,390 | ||
5.25% 5/1/24 | 1,500,000 | 1,621,275 | ||
5.25% 5/1/25 | 2,000,000 | 2,158,860 | ||
5.25% 5/1/28 | 3,720,000 | 3,994,313 | ||
Minneapolis & Saint Paul Hsg. & Redev. Auth. Health Care Sys. Rev.: | ||||
(Children's Health Care Proj.): | ||||
Series 1995 B, 5% 8/15/25 (FSA Insured) | 3,000,000 | 3,430,650 | ||
Series 2010 A, 5.25% 8/15/25 | 1,000,000 | 1,162,360 | ||
(Children's Hospitals and Clinics Proj.) Series 2004 A1, 5% 8/15/34 (FSA Insured) | 500,000 | 545,585 | ||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: | ||||
Series 2007 A, 5% 1/1/21 | 5,000,000 | 5,430,600 | ||
Series 2007 B, 5% 1/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000,000 | 2,161,880 | ||
Series 2010 D, 5% 1/1/17 (b) | 4,155,000 | 4,496,458 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Minneapolis & Saint Paul Metropolitan Arpts. Commission Arpt. Rev.: - continued | ||||
Series 2012 B: | ||||
5% 1/1/26 | $ 1,250,000 | $ 1,486,188 | ||
5% 1/1/27 | 1,500,000 | 1,773,795 | ||
Series 2014 A: | ||||
5% 1/1/26 | 3,000,000 | 3,560,430 | ||
5% 1/1/28 | 4,000,000 | 4,698,320 | ||
5% 1/1/29 | 2,150,000 | 2,516,038 | ||
5% 1/1/30 | 2,000,000 | 2,331,860 | ||
5% 1/1/31 | 6,020,000 | 6,993,073 | ||
Series B, 5% 1/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,830,000 | 3,060,815 | ||
Minneapolis Gen. Oblig. Series 2009: | ||||
4% 12/1/20 | 2,800,000 | 2,987,544 | ||
4% 12/1/21 | 2,330,000 | 2,484,246 | ||
Minneapolis Health Care Sys. Rev. (Fairview Health Svcs. Proj.): | ||||
Series 2005 D, 5% 11/15/34 (AMBAC Insured) | 5,120,000 | 5,266,842 | ||
Series 2008 B, 6.5% 11/15/38 (Assured Guaranty Corp. Insured) | 3,500,000 | 4,060,700 | ||
Minnesota 911 Rev.: | ||||
(Pub. Safety Radio Communications Sys. Proj.) Series 2009, 5% 6/1/21 (Assured Guaranty Corp. Insured) | 2,220,000 | 2,563,145 | ||
5% 6/1/21 | 2,000,000 | 2,315,640 | ||
Minnesota Agric. & Econ. Dev. Board Rev. (Essentia Health Obligated Group Proj.): | ||||
Series 2008 C1: | ||||
5% 2/15/16 (Assured Guaranty Corp. Insured) | 415,000 | 433,530 | ||
5% 2/15/17 (Assured Guaranty Corp. Insured) | 1,975,000 | 2,126,897 | ||
5% 2/15/30 (Assured Guaranty Corp. Insured) | 3,750,000 | 4,132,538 | ||
5.25% 2/15/23 (Assured Guaranty Corp. Insured) | 1,660,000 | 1,887,835 | ||
5.5% 2/15/25 (Assured Guaranty Corp. Insured) | 2,500,000 | 2,870,425 | ||
Minnesota Gen. Oblig.: | ||||
Series 2008 A, 5% 6/1/21 | 3,300,000 | 3,736,953 | ||
Series 2010 A, 5% 8/1/27 | 5,000,000 | 5,905,250 | ||
Series 2010 D: | ||||
5% 8/1/21 | 1,000,000 | 1,185,150 | ||
5% 8/1/22 | 5,000,000 | 5,873,200 | ||
5% 8/1/23 | 10,000,000 | 11,752,200 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Minnesota Gen. Oblig.: - continued | ||||
Series 2011 B: | ||||
5% 10/1/24 | $ 2,500,000 | $ 2,991,275 | ||
5% 10/1/30 | 3,000,000 | 3,549,930 | ||
Series 2013 A, 5% 8/1/25 | 3,780,000 | 4,628,912 | ||
Series 2013 D, 5% 10/1/23 | 3,000,000 | 3,718,020 | ||
5% 6/1/21 (Pre-Refunded to 6/1/16 @ 100) | 1,415,000 | 1,505,546 | ||
5% 8/1/22 | 2,545,000 | 2,814,236 | ||
5% 8/1/22 (Pre-Refunded to 8/1/17 @ 100) | 55,000 | 60,922 | ||
5% 8/1/24 | 4,780,000 | 5,763,963 | ||
5% 8/1/24 (Pre-Refunded to 8/1/22 @ 100) | 220,000 | 269,258 | ||
5% 11/1/26 (Pre-Refunded to 11/1/16 @ 100) | 790,000 | 855,507 | ||
Minnesota Higher Ed. Facilities Auth. Rev.: | ||||
(College of St. Scholastica, Inc. Proj.) Series Seven-H, 5.25% 12/1/35 | 1,000,000 | 1,089,940 | ||
(Gustovus Adolphus College Proj.) Series Seven-B: | ||||
5% 10/1/22 | 2,250,000 | 2,549,138 | ||
5% 10/1/23 | 1,000,000 | 1,131,020 | ||
(Hamline Univ. Proj.) Series Seven-E: | ||||
5% 10/1/17 | 1,565,000 | 1,676,381 | ||
5% 10/1/19 | 1,000,000 | 1,105,320 | ||
(Macalester College Proj.) Series Six-P: | ||||
5% 3/1/21 | 2,315,000 | 2,516,891 | ||
5% 3/1/22 | 2,535,000 | 2,756,077 | ||
(St. Olaf College Proj.) Series Six-O, 5% 10/1/15 | 1,000,000 | 1,034,530 | ||
(Univ. of St. Thomas Proj.): | ||||
Series Seven-A, 5% 10/1/39 | 1,650,000 | 1,843,265 | ||
Series Six-I, 5% 4/1/23 | 1,000,000 | 1,051,550 | ||
Series Six-X, 5.25% 4/1/39 | 1,500,000 | 1,614,600 | ||
Series Seven-Q: | ||||
5% 10/1/17 | 495,000 | 540,703 | ||
5% 10/1/18 | 400,000 | 445,884 | ||
5% 10/1/19 | 780,000 | 887,866 | ||
5% 10/1/20 | 1,140,000 | 1,305,802 | ||
Minnesota Muni. Pwr. Agcy. Elec. Rev.: | ||||
Series 2005, 5.25% 10/1/21 (Pre-Refunded to 10/1/15 @ 100) | 5,000,000 | 5,186,750 | ||
Series 2007, 5.25% 10/1/22 | 1,000,000 | 1,111,540 | ||
Series 2014 A: | ||||
5% 10/1/25 | 200,000 | 240,282 | ||
5% 10/1/26 | 830,000 | 990,099 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Minnesota Muni. Pwr. Agcy. Elec. Rev.: - continued | ||||
Series 2014: | ||||
5% 10/1/26 | $ 620,000 | $ 739,003 | ||
5% 10/1/27 | 750,000 | 889,725 | ||
5% 10/1/30 | 1,000,000 | 1,171,420 | ||
Minnesota State Colleges & Univs. Board of Trustees Rev.: | ||||
Series 2005 A, 5% 10/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,465,000 | 1,514,810 | ||
Series 2009 A: | ||||
4% 10/1/17 | 1,445,000 | 1,567,016 | ||
4% 10/1/18 | 1,490,000 | 1,642,531 | ||
4% 10/1/19 | 1,550,000 | 1,729,506 | ||
4% 10/1/20 | 1,580,000 | 1,759,140 | ||
Series 2011 A, 5% 10/1/30 | 1,495,000 | 1,726,336 | ||
Series 2013 A: | ||||
4% 10/1/18 | 2,210,000 | 2,436,238 | ||
4% 10/1/19 | 2,300,000 | 2,566,363 | ||
4% 10/1/20 | 2,385,000 | 2,682,147 | ||
Minnesota State Gen. Fdg. Rev.: | ||||
Series 2012 B: | ||||
5% 3/1/27 | 12,840,000 | 15,132,570 | ||
5% 3/1/28 | 4,275,000 | 5,010,599 | ||
5% 3/1/29 | 2,250,000 | 2,629,103 | ||
5% 6/1/27 | 5,000,000 | 6,004,900 | ||
5% 6/1/38 | 5,000,000 | 5,689,950 | ||
North Saint Paul-Maplewood-Oakdale Independent School District 622 Series 2006 B: | ||||
5% 2/1/17 (FSA Insured) | 1,525,000 | 1,658,499 | ||
5% 8/1/17 (FSA Insured) | 1,575,000 | 1,714,230 | ||
Northern Muni. Pwr. Agcy. Elec. Sys. Rev.: | ||||
Series 2010 A1: | ||||
5% 1/1/19 | 3,010,000 | 3,421,136 | ||
5% 1/1/20 | 2,100,000 | 2,416,932 | ||
Series 2013 A: | ||||
5% 1/1/23 | 850,000 | 995,588 | ||
5% 1/1/24 | 650,000 | 760,825 | ||
5% 1/1/25 | 975,000 | 1,137,416 | ||
5% 1/1/31 | 1,740,000 | 1,972,290 | ||
Series A, 5% 1/1/18 (Assured Guaranty Corp. Insured) | 3,180,000 | 3,535,397 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Northfield Hosp. Rev. Series 2006: | ||||
5.375% 11/1/26 | $ 1,000,000 | $ 1,067,780 | ||
5.5% 11/1/16 | 1,025,000 | 1,084,973 | ||
Owatonna Pub. Utils. Commission Pub. Utils. Rev. Series 2003, 5% 1/1/15 (AMBAC Insured) | 370,000 | 370,044 | ||
Ramsey County Gen. Oblig. Series 2012 B: | ||||
5% 2/1/19 | 1,585,000 | 1,825,555 | ||
5% 2/1/20 | 1,635,000 | 1,922,057 | ||
5% 2/1/21 | 1,350,000 | 1,614,465 | ||
Rochester Elec. Util. Rev.: | ||||
Series 2007 C, 5% 12/1/30 | 2,000,000 | 2,148,820 | ||
Series 2013 B: | ||||
5% 12/1/26 | 570,000 | 685,613 | ||
5% 12/1/27 | 275,000 | 329,805 | ||
5% 12/1/28 | 275,000 | 328,837 | ||
5% 12/1/43 | 1,000,000 | 1,150,160 | ||
Rochester Gen. Oblig. Series 2012 A, 5% 2/1/23 | 4,400,000 | 5,314,452 | ||
Rochester Health Care Facilities Rev.: | ||||
(Mayo Clinic Proj.) Series 2008 E, 5% 11/15/38 | 4,000,000 | 4,477,160 | ||
(Mayo Foundation Proj.) Series 2006, 5% 11/15/36 | 2,000,000 | 2,092,900 | ||
(Olmsted Med. Ctr. Proj.) Series 2013: | ||||
5% 7/1/17 | 650,000 | 710,990 | ||
5% 7/1/18 | 685,000 | 766,385 | ||
5% 7/1/21 | 790,000 | 916,289 | ||
5% 7/1/22 | 350,000 | 406,550 | ||
5% 7/1/24 | 300,000 | 346,602 | ||
5% 7/1/27 | 245,000 | 281,074 | ||
5% 7/1/28 | 225,000 | 257,225 | ||
5% 7/1/33 | 1,225,000 | 1,379,007 | ||
Bonds: | ||||
(Mayo Clinic Proj.): | ||||
Series 2011, 4%, tender 11/15/18 (a) | 2,475,000 | 2,737,474 | ||
Series B, 4%, tender 11/15/18 (a) | 3,000,000 | 3,318,150 | ||
(Mayo Foundation Proj.) Series C, 4.5%, tender 11/15/21 (a) | 1,100,000 | 1,276,924 | ||
Saint Cloud Health Care Rev.: | ||||
(CentraCare Health Sys. Proj.) Series 2010 A, 5.125% 5/1/30 | 5,000,000 | 5,641,800 | ||
Series 2014 B, 5% 5/1/22 | 1,950,000 | 2,312,856 | ||
Saint Paul Port Auth. Series 2007-2, 5% 3/1/37 | 1,500,000 | 1,613,100 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Saint Paul Port Auth. Lease Rev.: | ||||
(HealthEast Midway Campus Proj.) Series 2003 A, 5.75% 5/1/25 | $ 2,000,000 | $ 2,027,580 | ||
(Regions Hosp. Package Proj.) Series 2007-1: | ||||
5% 8/1/15 | 480,000 | 485,510 | ||
5% 8/1/16 | 500,000 | 513,125 | ||
Series 2013, 5% 12/1/21 | 4,900,000 | 5,843,299 | ||
Saint Paul Sales Tax Rev. Series 2014 G: | ||||
5% 11/1/26 | 1,000,000 | 1,185,810 | ||
5% 11/1/28 | 1,000,000 | 1,179,230 | ||
Shakopee Health Care Facilities Rev. Series 2014: | ||||
5% 9/1/23 | 1,895,000 | 2,271,290 | ||
5% 9/1/24 | 1,000,000 | 1,207,480 | ||
5% 9/1/25 | 1,345,000 | 1,602,500 | ||
5% 9/1/26 | 575,000 | 679,196 | ||
5% 9/1/28 | 1,000,000 | 1,174,750 | ||
5% 9/1/34 | 1,000,000 | 1,140,400 | ||
Shakopee Independent School District #720: | ||||
Series 2012, 5% 2/1/21 | 1,000,000 | 1,186,360 | ||
Series 2013 A: | ||||
5% 2/1/19 | 2,940,000 | 3,373,562 | ||
5% 2/1/22 | 1,700,000 | 2,039,592 | ||
Southern Minnesota Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.: | ||||
(Cap. Appreciation) Series 1994 A: | ||||
0% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,210,000 | 5,839,325 | ||
0% 1/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 14,670,000 | 12,884,368 | ||
0% 1/1/26 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,165,000 | 2,254,904 | ||
Series 2009 A: | ||||
5.25% 1/1/30 | 2,000,000 | 2,240,500 | ||
5.5% 1/1/24 | 500,000 | 575,220 | ||
0% 1/1/18 (AMBAC Insured) | 125,000 | 120,578 | ||
Spring Lake Park Independent School District #16 Series 2006 A, 5% 2/1/29 (Pre-Refunded to 2/1/16 @ 100) | 4,000,000 | 4,174,560 | ||
St. Louis Park Health Care Facilities Rev. (Park Nicollet Health Svcs. Proj.): | ||||
Series 2008 C: | ||||
5.5% 7/1/17 | 535,000 | 590,902 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
St. Louis Park Health Care Facilities Rev. (Park Nicollet Health Svcs. Proj.): - continued | ||||
Series 2008 C: - continued | ||||
5.75% 7/1/30 | $ 3,715,000 | $ 4,184,539 | ||
Series 2009, 5.75% 7/1/39 | 9,000,000 | 10,221,660 | ||
St. Paul Hsg. & Redev. Auth. Health Care Facilities Rev.: | ||||
(Allina Health Sys. Proj.): | ||||
Series 2007 A: | ||||
5% 11/15/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 240,000 | 249,874 | ||
5% 11/15/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,100,000 | 2,321,655 | ||
Series 2009 A1, 5.25% 11/15/29 | 3,000,000 | 3,474,810 | ||
(Gillette Children's Speciality Healthcare Proj.) 5% 2/1/16 | 1,460,000 | 1,462,774 | ||
(HealthPartners Oblig. Group Proj.) Series 2006: | ||||
5% 5/15/15 | 250,000 | 254,195 | ||
5% 5/15/16 | 345,000 | 365,358 | ||
5.25% 5/15/17 | 590,000 | 637,985 | ||
5.25% 5/15/26 | 1,000,000 | 1,072,080 | ||
5.25% 5/15/36 | 1,000,000 | 1,061,800 | ||
Series 2007 A, 5% 11/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,725,000 | 1,921,529 | ||
Series 2009 A2, 5.5% 11/15/24 | 2,000,000 | 2,373,960 | ||
Univ. of Minnesota Gen. Oblig.: | ||||
Series 2009 A: | ||||
5% 4/1/23 | 200,000 | 229,776 | ||
5.125% 4/1/34 | 1,000,000 | 1,128,030 | ||
5.25% 4/1/29 | 1,000,000 | 1,156,900 | ||
Series 2009 C, 5% 12/1/21 | 1,000,000 | 1,154,570 | ||
Series 2011 D: | ||||
5% 12/1/23 | 1,180,000 | 1,411,363 | ||
5% 12/1/26 | 1,020,000 | 1,209,853 | ||
5% 12/1/36 | 1,000,000 | 1,145,970 | ||
Univ. of Minnesota Spl. Purp. Rev.: | ||||
(Biomedical Science Research Facilities Fdg. Prog.) Series 2013 C, 5% 8/1/38 | 5,275,000 | 6,066,883 | ||
(State Supported Biomedical Science Research Facilities Fdg. Prog.) Series 2011 B, 5% 8/1/25 | 2,095,000 | 2,468,790 | ||
(State Supported Stadium Proj.) Series 2006: | ||||
5% 8/1/20 | 6,625,000 | 7,108,890 | ||
5% 8/1/29 | 4,000,000 | 4,265,360 | ||
Series 2010 A, 5% 8/1/25 | 1,800,000 | 2,134,332 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Minnesota - continued | ||||
Virginia Hsg. & Redev. Auth. Health Care Facility Lease Rev. Series 2005, 5.25% 10/1/25 | $ 440,000 | $ 452,980 | ||
West Saint Paul Independent School District #197 Series 2012 A, 4% 2/1/24 | 3,530,000 | 3,938,951 | ||
Western Minnesota Muni. Pwr. Agcy. Pwr. Supply Rev.: | ||||
Series 1977 A, 6.375% 1/1/16 (Escrowed to Maturity) | 330,000 | 339,398 | ||
Series 2012 A: | ||||
5% 1/1/26 | 5,000,000 | 5,947,650 | ||
5% 1/1/27 | 2,150,000 | 2,540,333 | ||
5% 1/1/30 | 1,000,000 | 1,174,430 | ||
Series 2014 A: | ||||
5% 1/1/31 | 1,750,000 | 2,069,253 | ||
5% 1/1/40 | 1,500,000 | 1,725,840 | ||
5% 1/1/46 | 5,000,000 | 5,727,450 | ||
| 490,573,283 | |||
Virgin Islands - 0.2% | ||||
Virgin Islands Pub. Fin. Auth. Series 2009 B, 5% 10/1/25 | 1,000,000 | 1,101,570 |
TOTAL INVESTMENT PORTFOLIO - 98.0% (Cost $471,617,391) | 496,407,233 | ||
NET OTHER ASSETS (LIABILITIES) - 2.0% | 9,906,803 | ||
NET ASSETS - 100% | $ 506,314,036 |
Security Type Abbreviations |
Legend |
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 40.6% |
Health Care | 22.4% |
Electric Utilities | 13.4% |
Education | 8.9% |
Transportation | 8.1% |
Others* (Individually Less Than 5%) | 6.6% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
| December 31, 2014 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $471,617,391) |
| $ 496,407,233 |
Cash |
| 4,212,009 |
Receivable for fund shares sold | 177,201 | |
Interest receivable | 6,618,386 | |
Prepaid expenses | 1,091 | |
Other receivables | 574 | |
Total assets | 507,416,494 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 472,117 | |
Distributions payable | 340,998 | |
Accrued management fee | 152,017 | |
Transfer agent fee payable | 71,770 | |
Other affiliated payables | 22,063 | |
Other payables and accrued expenses | 43,493 | |
Total liabilities | 1,102,458 | |
|
|
|
Net Assets | $ 506,314,036 | |
Net Assets consist of: |
| |
Paid in capital | $ 481,271,031 | |
Undistributed net investment income | 122,198 | |
Accumulated undistributed net realized gain (loss) on investments | 130,965 | |
Net unrealized appreciation (depreciation) on investments | 24,789,842 | |
Net Assets, for 43,013,648 shares outstanding | $ 506,314,036 | |
Net Asset Value, offering price and redemption price per share ($506,314,036 ÷ 43,013,648 shares) | $ 11.77 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended December 31, 2014 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 16,378,409 |
|
|
|
Expenses | ||
Management fee | $ 1,787,210 | |
Transfer agent fees | 426,735 | |
Accounting fees and expenses | 128,029 | |
Custodian fees and expenses | 8,755 | |
Independent trustees' compensation | 2,187 | |
Registration fees | 31,974 | |
Audit | 54,511 | |
Legal | 1,319 | |
Miscellaneous | 4,000 | |
Total expenses before reductions | 2,444,720 | |
Expense reductions | (1,959) | 2,442,761 |
Net investment income (loss) | 13,935,648 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 2,299,174 |
Change in net unrealized appreciation (depreciation) on investment securities | 16,265,355 | |
Net gain (loss) | 18,564,529 | |
Net increase (decrease) in net assets resulting from operations | $ 32,500,177 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 13,935,648 | $ 15,041,200 |
Net realized gain (loss) | 2,299,174 | 1,691,982 |
Change in net unrealized appreciation (depreciation) | 16,265,355 | (27,436,082) |
Net increase (decrease) in net assets resulting | 32,500,177 | (10,702,900) |
Distributions to shareholders from net investment income | (13,933,894) | (15,041,107) |
Distributions to shareholders from net realized gain | (2,683,454) | (1,845,080) |
Total distributions | (16,617,348) | (16,886,187) |
Share transactions | 55,468,388 | 71,595,442 |
Reinvestment of distributions | 11,837,627 | 11,952,693 |
Cost of shares redeemed | (57,891,076) | (133,302,094) |
Net increase (decrease) in net assets resulting from share transactions | 9,414,939 | (49,753,959) |
Redemption fees | 2,975 | 3,464 |
Total increase (decrease) in net assets | 25,300,743 | (77,339,582) |
|
|
|
Net Assets | ||
Beginning of period | 481,013,293 | 558,352,875 |
End of period (including undistributed net investment income of $122,198 and undistributed net investment income of $109,763, respectively) | $ 506,314,036 | $ 481,013,293 |
Other Information Shares | ||
Sold | 4,752,611 | 6,118,888 |
Issued in reinvestment of distributions | 1,013,005 | 1,024,864 |
Redeemed | (4,965,687) | (11,493,631) |
Net increase (decrease) | 799,929 | (4,349,879) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 11.39 | $ 11.99 | $ 11.80 | $ 11.25 | $ 11.38 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .329 | .333 | .371 | .403 | .393 |
Net realized and unrealized gain (loss) | .443 | (.559) | .204 | .601 | (.115) |
Total from investment operations | .772 | (.226) | .575 | 1.004 | .278 |
Distributions from net investment income | (.329) | (.333) | (.370) | (.403) | (.394) |
Distributions from net realized gain | (.063) | (.041) | (.015) | (.051) | (.014) |
Total distributions | (.392) | (.374) | (.385) | (.454) | (.408) |
Redemption fees added to paid in Capital B, D | - | - | - | - | - |
Net asset value, end of period | $ 11.77 | $ 11.39 | $ 11.99 | $ 11.80 | $ 11.25 |
Total ReturnA | 6.85% | (1.91)% | 4.91% | 9.09% | 2.42% |
Ratios to Average Net AssetsC |
|
|
|
|
|
Expenses before reductions | .49% | .50% | .49% | .49% | .50% |
Expenses net of fee waivers, if any | .49% | .50% | .49% | .49% | .50% |
Expenses net of all reductions | .49% | .49% | .49% | .49% | .49% |
Net investment income (loss) | 2.82% | 2.85% | 3.09% | 3.50% | 3.41% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 506,314 | $ 481,013 | $ 558,353 | $ 519,092 | $ 497,673 |
Portfolio turnover rate | 15% | 14% | 15% | 9% | 13% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2014
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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between funds. 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 (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Investment Valuation - continued
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Municipal securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and 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 and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of December 31, 2014, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed.
Annual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to futures contracts.
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 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 25,138,134 |
Gross unrealized depreciation | (342,422) |
Net unrealized appreciation (depreciation) on securities | $ 24,795,712 |
|
|
Tax Cost | $ 471,611,521 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed tax-exempt income | $ 116,699 |
Undistributed long-term capital gain | $ 146,799 |
Net unrealized appreciation (depreciation) on securities and other investments | $ 24,795,712 |
Annual Report
Notes to Financial Statements - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
At period end, the Fund was required to defer approximately $15,834 of losses on futures contracts.
The tax character of distributions paid was as follows:
| December 31, 2014 | December 31, 2013 |
Tax-exempt Income | $ 13,933,894 | $ 15,041,107 |
Ordinary Income | - | 233,296 |
Long-term Capital Gains | 2,683,454 | 1,611,784 |
Total | $ 16,617,348 | $ 16,886,187 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $82,063,662 and $74,795,181, respectively.
4. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .36% of the Fund's average net assets.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Fund. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, under which FIIOC performs the activities associated with the Fund's transfer agency, dividend disbursing and shareholder servicing functions. The Fund pays Citibank account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to an annual rate of .09% of average net assets.
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, under which FSC maintains the Fund's accounting records. The fee is paid to Citibank and is based on the level of average net assets for each month.
5. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 $795 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
6. Expense Reductions.
Through arrangements with the Fund's custodian, 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 expenses by $1,959.
Annual Report
Notes to Financial Statements - continued
7. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Minnesota Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Minnesota Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Minnesota Municipal Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2014 by correspondence with the custodian provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 12, 2015
Annual Report
Trustees and Officers
The Trustees and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Elizabeth S. Acton, James C. Curvey, and John Engler each of the Trustees oversees 233 funds. Ms. Acton and Mr. Engler each oversees 215 funds. Mr. Curvey oversees 407 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
James C. Curvey (1935) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), and a Director of FMR Co., Inc. (2007-2014). |
Abigail P. Johnson (1961) | |
Year of Election or Appointment: 2009 Chairman of the Board of Trustees | |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC, President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above include each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
Year of Election or Appointment: 2013 Trustee | |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
John Engler (1948) | |
Year of Election or Appointment: 2014 Trustee | |
| Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association. |
Albert R. Gamper, Jr. (1942) | |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees | |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
Year of Election or Appointment: 2010 Trustee | |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
Year of Election or Appointment: 2008 Trustee | |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
Year of Election or Appointment: 2009 Trustee | |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees | |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation | |
Elizabeth Paige Baumann (1968) | |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer | |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Robert P. Brown (1963) | |
Year of Election or Appointment: 2012 Vice President of Fidelity's Bond Funds | |
| Mr. Brown also serves as Vice President of other funds. Mr. Brown serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director, Research of Fidelity Management & Research (U.K.) Inc. (2008-present), and is an employee of Fidelity Investments. Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's Money Market Funds (2010-2012). |
Marc Bryant (1966) | |
Year of Election or Appointment: 2013 Assistant Secretary | |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) | |
Year of Election or Appointment: 2013 President and Treasurer | |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) | |
Year of Election or Appointment: 2014 Chief Financial Officer | |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) | |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) | |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Limited (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Chris Maher (1972) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) | |
Year of Election or Appointment: 2014 Vice President | |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) | |
Year of Election or Appointment: 2009 Assistant Treasurer | |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) | |
Year of Election or Appointment: 2008 Chief Compliance Officer | |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (2014-present), FMR (2014-present), Fidelity Investments Money Management, Inc. (2014-present), and is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
Year of Election or Appointment: 2011 Deputy Treasurer | |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of Fidelity Minnesota Municipal Income Fund voted to pay on February 9, 2015, to shareholders of record at the opening of business on February 6, 2015, a distribution of $0.005 per share derived from capital gains realized from sales of portfolio securities.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2014, $2,255,950 or, if subsequently determined to be different, the net capital gain of such year.
During fiscal year ended 2014, 100% of the fund's income dividends was free from federal income tax, and 0.84% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Minnesota Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the 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 relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by 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. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2014 meeting, the Board, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. 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 fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and 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. In connection with separate internal corporate reorganizations involving Fidelity Management & Research (U.K.) Inc. (FMR U.K.) and Fidelity Management & Research (Japan) Inc. (FMR Japan), the Board approved certain non-material amendments to the fund's sub-advisory agreements with FMR U.K. and FMR Japan to reflect that, after these reorganizations, FMR Investment Management (UK) Limited and Fidelity Management & Research (Japan) Limited will carry on the business of FMR U.K. and FMR Japan, respectively. The Board noted that no changes to the portfolio managers or to the foreign research or investment advisory services provided to the fund were expected in connection with either reorganization and that the same personnel and resources would continue to be available to the fund at the new entities.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. 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 to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, 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 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 over time 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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
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 a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing a new Fidelity adviser, Fidelity SelectCo, LLC, to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Annual Report
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG %s are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the chart and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Minnesota Municipal Income Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2013.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of the fund's total expense ratio, 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 that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund. As part of its review, the Board also considered the current and historical total expense ratios 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 expense ratio ranked below its competitive median for 2013.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients. The Board noted the findings of the 2013 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Annual Report
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the fund's total expense ratio was 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 servicing the fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. 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 Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and 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 was satisfied that the profitability was not excessive.
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 as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under FMR's management plus sector fund assets previously under FMR's management and currently managed by Fidelity SelectCo, LLC). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity 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 benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
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 certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) the methodology with respect to competitive fund data and peer group classifications; (viii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (ix) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Annual Report
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Japan) Limited
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
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®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
MNF-UANN-0215 1.787738.111
Fidelity®
Municipal Income
Fund
Annual Report
December 31, 2014
(Fidelity Cover Art)
Contents
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
Shareholder Expense Example | An example of shareholder expenses. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | |
Notes | Notes to the financial statements. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
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/proxyvotingresults 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 LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2014 | Past 1 | Past 5 | Past 10 |
Fidelity® Municipal Income Fund | 10.59% | 5.63% | 4.74% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Municipal Income Fund on December 31, 2004. The chart shows how the value of your investment would have changed, and also shows how the Barclays® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds posted a strong result for the 12 months ending December 31, 2014, driven by steady demand, tight supply and improving credit fundamentals. The Barclays® Municipal Bond Index returned 9.05%, significantly outperforming the U.S. investment-grade taxable bond market. Munis were driven, in part, by continued economic growth, declining long-term interest rates, and the relative attractiveness of U.S. markets amid global economic and political uncertainty. More specific to munis, prices rose as investors became more upbeat about the fundamental outlook of many state and local governments. Additionally, a steady stream of municipal bond cash flows - coupon payments, maturities and those due to early bond calls by issuers - fueled reinvestment. Meanwhile, investors took solace that the financial distress experienced by Puerto Rico, Detroit and a few California cities in bankruptcy did not expand to the broader market. Lastly, the tax advantages of munis had particular appeal due to the higher federal tax rates for top earners that took effect in 2013, as well as the new 3.8% Medicare tax on unearned, non-municipal investment income.
Comments from Jamie Pagliocco, Lead Portfolio Manager of Fidelity® Municipal Income Fund: For year, the fund returned 10.59%, while the Barclays 3+ Year Municipal Bond Index returned 10.15%. We sought to generate attractive tax-exempt income for the fund and protect shareholder capital. The fund's barbell positioning - with overweightings in longer- and shorter-maturity bonds - bolstered our result as the yield curve flattened as we expected. An oveweighted position in health care bonds also helped because they were some of the best-performing bonds in the marketplace. The fund's overweighting to California bonds was another plus. They outperformed bonds from virtually all other states as California's economic and fiscal outlook significantly improved during the past year and yield-seeking investors flocked to the debt issued in the state. In contrast, the fund's underweighting to corporate-backed municipal bonds hindered our performance relative to the index. These securities, which are issued by municipalities for projects deemed in the public good but depend on corporations for their stream of payments to holders, performed quite well. Their success owed to their higher yields, which both bolstered their total returns and attracted investors, as well as rising corporate revenues, which further buoyed investor sentiment.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2014 to December 31, 2014).
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.
Annual Report
Shareholder Expense Example - continued
| Annualized | Beginning | Ending | Expenses Paid |
Actual | .47% | $ 1,000.00 | $ 1,034.60 | $ 2.41 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.84 | $ 2.40 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Investment Changes (Unaudited)
Top Five States as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
California | 17.8 | 18.0 |
Illinois | 17.1 | 17.9 |
Texas | 9.9 | 9.4 |
Florida | 9.8 | 9.3 |
New York | 7.5 | 8.1 |
Top Five Sectors as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
General Obligations | 33.5 | 35.0 |
Health Care | 21.0 | 21.7 |
Transportation | 12.1 | 10.7 |
Special Tax | 8.2 | 8.2 |
Electric Utilities | 7.1 | 7.4 |
Weighted Average Maturity as of December 31, 2014 | ||
|
| 6 months ago |
Years | 5.8 | 6.1 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2014 | ||
|
| 6 months ago |
Years | 6.7 | 7.3 |
Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | AAA 4.9% |
| ![]() | AAA 5.4% |
| ||
![]() | AA,A 80.4% |
| ![]() | AA,A 81.4% |
| ||
![]() | BBB 9.5% |
| ![]() | BBB 9.2% |
| ||
![]() | BB and Below 0.5% |
| ![]() | BB and Below 0.8% |
| ||
![]() | Not Rated 2.4% |
| ![]() | Not Rated 2.1% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Investments December 31, 2014
Showing Percentage of Net Assets
Municipal Bonds - 97.5% | ||||
| Principal Amount (000s) | Value (000s) | ||
Alabama - 0.2% | ||||
Birmingham Gen. Oblig. Series 2013 A, 0% 3/1/32 (a) | $ 3,500 | $ 3,548 | ||
Jefferson County Ltd. Oblig. School Warrants Series 2004 A, 5.5% 1/1/22 | 5,600 | 5,687 | ||
Univ. of Alabama at Birmingham Hosp. Rev. | 3,000 | 3,446 | ||
| 12,681 | |||
Arizona - 1.9% | ||||
Arizona Ctfs. of Prtn. Series 2010 A: | ||||
5% 10/1/18 (FSA Insured) | 2,670 | 3,030 | ||
5.25% 10/1/20 (FSA Insured) | 8,000 | 9,189 | ||
5.25% 10/1/26 (FSA Insured) | 2,570 | 2,923 | ||
5.25% 10/1/28 (FSA Insured) | 8,345 | 9,439 | ||
Arizona Health Facilities Auth. Rev. (Banner Health Sys. Proj.): | ||||
Series 2007 A, 5% 1/1/21 | 2,000 | 2,161 | ||
Series 2007 B, 0.967% 1/1/37 (d) | 3,000 | 2,701 | ||
Series 2008 D: | ||||
5.5% 1/1/38 | 12,000 | 13,182 | ||
6% 1/1/27 | 2,600 | 2,945 | ||
Arizona State Lottery Rev. Series 2010 A, 5% 7/1/21 (FSA Insured) | 5,800 | 6,693 | ||
Goodyear McDowell Road Commercial Corridor Impt. District 5.25% 1/1/18 (AMBAC Insured) | 1,660 | 1,794 | ||
Marana Muni. Property Corp. Facilities Rev. Series 2008 A, 5% 7/1/21 | 1,580 | 1,780 | ||
Maricopa County Indl. Dev. Auth. Hosp. Facilities Rev. (Samaritan Health Svcs. Proj.) Series 1990 A, 7% 12/1/16 (Escrowed to Maturity) | 1,165 | 1,243 | ||
Maricopa County Poll. Cont. Rev. (Southern California Edison Co. Proj.) Series 2000 A, 5% 6/1/35 | 3,600 | 3,996 | ||
McAllister Academic Village LLC Rev. (Arizona State Univ. Hassayampa Academic Village Proj.) Series 2008, 5.25% 7/1/39 | 4,800 | 5,301 | ||
Phoenix Civic Impt. Corp. District Rev. (Plaza Expansion Proj.) Series 2005 B, 5.5% 7/1/38 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 12,000 | 15,822 | ||
Phoenix Civic Impt. Corp. Excise Tax Rev. Series 2011 C: | ||||
5% 7/1/22 | 1,000 | 1,187 | ||
5% 7/1/23 | 2,000 | 2,358 | ||
Pima County Swr. Sys. Rev.: | ||||
Series 2011 B, 5% 7/1/22 | 1,500 | 1,772 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Arizona - continued | ||||
Pima County Swr. Sys. Rev.: - continued | ||||
Series 2012 A: | ||||
5% 7/1/24 | $ 1,140 | $ 1,362 | ||
5% 7/1/26 | 1,000 | 1,185 | ||
Salt Verde Finl. Corp. Sr. Gas Rev. Series 2007: | ||||
5.25% 12/1/21 | 3,500 | 4,138 | ||
5.5% 12/1/29 | 7,900 | 9,568 | ||
Scottsdale Indl. Dev. Auth. Hosp. Rev. (Scottsdale Healthcare Proj.) Series 2006 C, 5% 9/1/35 (FSA Insured) | 845 | 946 | ||
Univ. Med. Ctr. Corp. Hosp. Rev. Series 2011, 6% 7/1/39 | 3,000 | 3,548 | ||
| 108,263 | |||
California - 17.8% | ||||
ABAG Fin. Auth. for Nonprofit Corps. Rev. (Sharp HealthCare Proj.) Series 2009 B, 6.25% 8/1/39 | 2,800 | 3,292 | ||
ABC Unified School District Series 1997 C, 0% 8/1/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,925 | 2,477 | ||
Bay Area Toll Auth. San Francisco Bay Toll Bridge Rev. Series 2009 F1, 5.625% 4/1/44 (Pre-Refunded to 4/1/19 @ 100) | 6,350 | 7,536 | ||
Cabrillo Unified School District Series A, 0% 8/1/20 (AMBAC Insured) | 4,275 | 3,572 | ||
California Econ. Recovery Series 2009 A, 5% 7/1/22 | 7,500 | 7,998 | ||
California Edl. Facilities Auth. Rev. (Loyola Marymount Univ. Proj.) Series 2001 A: | ||||
0% 10/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,140 | 2,104 | ||
0% 10/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,050 | 1,975 | ||
0% 10/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,675 | 1,575 | ||
0% 10/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 4,008 | ||
California Gen. Oblig.: | ||||
Bonds 3%, tender 12/1/19 (d) | 22,700 | 24,261 | ||
Series 2007, 5.625% 5/1/20 | 120 | 121 | ||
5% 3/1/19 | 1,800 | 2,048 | ||
5% 8/1/19 | 8,310 | 9,051 | ||
5% 8/1/20 | 5,355 | 5,830 | ||
5% 10/1/22 | 2,300 | 2,685 | ||
5% 11/1/22 | 3,100 | 3,467 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Gen. Oblig.: - continued | ||||
5% 12/1/22 | $ 6,800 | $ 7,629 | ||
5% 11/1/24 | 1,600 | 1,787 | ||
5% 3/1/26 | 5,100 | 5,358 | ||
5% 9/1/27 | 10,500 | 11,259 | ||
5% 9/1/31 | 22,500 | 24,033 | ||
5% 9/1/32 | 24,995 | 26,672 | ||
5% 9/1/33 | 19,115 | 20,364 | ||
5% 9/1/35 | 4,050 | 4,309 | ||
5.25% 9/1/23 | 24,300 | 29,483 | ||
5.25% 12/1/33 | 160 | 161 | ||
5.25% 4/1/35 | 12,000 | 14,033 | ||
5.25% 3/1/38 | 9,000 | 9,789 | ||
5.25% 11/1/40 | 3,200 | 3,689 | ||
5.5% 8/1/27 | 14,700 | 16,979 | ||
5.5% 4/1/28 | 10 | 10 | ||
5.5% 8/1/29 | 9,850 | 11,254 | ||
5.5% 4/1/30 | 5 | 5 | ||
5.5% 3/1/40 | 5,900 | 6,781 | ||
5.6% 3/1/36 | 2,550 | 3,007 | ||
5.75% 4/1/31 | 5,020 | 5,898 | ||
6% 3/1/33 | 23,800 | 29,451 | ||
6% 4/1/38 | 19,600 | 23,265 | ||
6% 11/1/39 | 10,020 | 12,116 | ||
6.5% 4/1/33 | 7,900 | 9,649 | ||
California Health Facilities Fing. Auth. Rev.: | ||||
(Catholic Healthcare West Proj.): | ||||
Series 2008 H, 5.125% 7/1/22 (Pre-Refunded to 7/1/15 @ 100) | 1,115 | 1,142 | ||
Series 2008 L, 5.125% 7/1/22 (Pre-Refunded to 7/1/15 @ 100) | 2,555 | 2,617 | ||
Series 2009 E, 5.625% 7/1/25 | 10,000 | 11,637 | ||
(St. Joseph Health Sys. Proj.) Series 2009 A, 5.75% 7/1/39 | 6,800 | 7,892 | ||
(Stanford Hosp. & Clinics Proj.) Series 2010 B, 5.75% 11/15/31 | 12,500 | 15,033 | ||
California Pub. Works Board Lease Rev.: | ||||
(Coalinga State Hosp. Proj.) Series 2013 E: | ||||
5% 6/1/27 | 6,730 | 7,909 | ||
5% 6/1/28 | 6,175 | 7,201 | ||
(Dept. of Health Svcs. Proj.) Series 2005 K, 5% 11/1/23 | 4,575 | 4,745 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
California Pub. Works Board Lease Rev.: - continued | ||||
(Madera County, Valley State Prison for Women Proj.) Series 2005 H, 5% 6/1/16 | $ 6,000 | $ 6,112 | ||
(Monterey Bay Campus Library Proj.) Series 2009 D, 6.25% 4/1/34 | 7,280 | 8,635 | ||
(Office of Emergency Svcs. Proj.) Series 2007 A: | ||||
5% 3/1/21 | 3,515 | 3,841 | ||
5% 3/1/22 | 1,695 | 1,850 | ||
(Porterville Developmental Ctr. Hsg. Expansion and Recreation Complex Proj.) Series 2009 C, 6.25% 4/1/34 | 2,825 | 3,371 | ||
(Univ. Proj.) Series 2011 B, 5.25% 10/1/26 | 2,515 | 3,010 | ||
(Various Cap. Projs.): | ||||
Series 2011 A: | ||||
5% 10/1/27 | 10,000 | 11,710 | ||
5.25% 10/1/26 | 5,000 | 5,984 | ||
Series 2012 A: | ||||
5% 4/1/25 | 4,700 | 5,524 | ||
5% 4/1/26 | 13,495 | 15,686 | ||
Series 2012 G, 5% 11/1/25 | 4,000 | 4,691 | ||
(Various Judicial Council Projects) Series 2011 D: | ||||
5% 12/1/22 | 4,100 | 4,814 | ||
5% 12/1/23 | 7,355 | 8,575 | ||
Series 2005 B: | ||||
5.25% 11/1/24 (XL Cap. Assurance, Inc. Insured) | 1,575 | 1,636 | ||
5.25% 11/1/26 (XL Cap. Assurance, Inc. Insured) | 2,860 | 2,970 | ||
Series 2005 H: | ||||
5% 6/1/17 | 5,000 | 5,098 | ||
5% 6/1/18 | 10,300 | 10,499 | ||
Series 2005 J, 5% 1/1/17 (Pre-Refunded to 1/1/16 @ 100) | 6,105 | 6,395 | ||
Series 2009 G1, 5.75% 10/1/30 | 2,500 | 2,949 | ||
Series 2009 I: | ||||
6.125% 11/1/29 | 1,600 | 1,962 | ||
6.375% 11/1/34 | 4,600 | 5,640 | ||
Series 2010 A, 5.75% 3/1/30 | 4,900 | 5,790 | ||
California State Univ. Rev. Series 2009 A, 6% 11/1/40 | 5,000 | 5,860 | ||
California Statewide Cmntys. Dev. Auth. Rev.: | ||||
(St. Joseph Health Sys. Proj.) Series 2007 C, 5.75% 7/1/47 (FGIC Insured) | 5,000 | 5,561 | ||
(Sutter Health Proj.) Series 2011 A, 6% 8/15/42 | 11,700 | 14,081 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Clovis Pub. Fing. Auth. Wastewtr. Rev. Series 2005, 5% 8/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 9,380 | $ 9,438 | ||
Encinitas Union School District Series 1996: | ||||
0% 8/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,500 | 3,110 | ||
0% 8/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,810 | 2,404 | ||
Fontana Unified School District Gen. Oblig. 5% 5/1/19 (Assured Guaranty Corp. Insured) | 1,300 | 1,507 | ||
Golden State Tobacco Securitization Corp. Tobacco Settlement Rev.: | ||||
Series 2005 A: | ||||
5% 6/1/45 | 22,145 | 22,522 | ||
5% 6/1/45 | 5,305 | 5,395 | ||
5% 6/1/45 (FSA Insured) | 445 | 453 | ||
Long Beach Unified School District Series A: | ||||
5.5% 8/1/28 | 3,810 | 4,422 | ||
5.5% 8/1/29 | 2,000 | 2,315 | ||
Los Angeles Cmnty. College District Series 2008 A, 6% 8/1/33 (Pre-Refunded to 8/1/19 @ 100) | 7,000 | 8,483 | ||
Los Angeles Cmnty. Redev. Agcy. Lease Rev. (Vermont Manchester Social Svcs. Proj.) Series 2005: | ||||
5% 9/1/18 (AMBAC Insured) | 1,000 | 1,025 | ||
5% 9/1/19 (AMBAC Insured) | 2,545 | 2,608 | ||
Los Angeles Muni. Impt. Corp. Lease Rev. Series 2012 C: | ||||
5% 3/1/23 | 5,335 | 6,311 | ||
5% 3/1/27 | 2,000 | 2,293 | ||
Los Angeles Wastewtr. Sys. Rev. Series 2009 A, 5.75% 6/1/34 | 9,715 | 11,368 | ||
Madera County Ctfs. of Prtn. (Children's Hosp. Central California Proj.) Series 2010, 5.375% 3/15/36 | 3,000 | 3,345 | ||
Monrovia Unified School District Series B, 0% 8/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,525 | 2,611 | ||
Monterey County Pub. Impt. Corp. Ctfs. of Prtn. Series 2007, 5% 8/1/19 (AMBAC Insured) | 2,320 | 2,575 | ||
North City West School Facilities Fing. Auth. Spl. Tax Series C, 5% 9/1/19 (AMBAC Insured) | 3,015 | 3,374 | ||
Oakland Gen. Oblig.: | ||||
Series 2009 B, 6% 1/15/34 | 2,500 | 2,888 | ||
Series 2012: | ||||
5% 1/15/26 | 4,535 | 5,201 | ||
5% 1/15/28 | 4,345 | 4,952 | ||
5% 1/15/29 | 5,370 | 6,094 | ||
Oakland Unified School District Alameda County Series 2009 A, 6.5% 8/1/22 | 2,320 | 2,734 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Oakland-Alameda County Coliseum Auth. (Oakland Coliseum Proj.) Series 2012 A: | ||||
5% 2/1/19 | $ 4,190 | $ 4,779 | ||
5% 2/1/24 | 8,200 | 9,440 | ||
Port of Oakland Rev.: | ||||
Series 2007 B, 5% 11/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,000 | 7,778 | ||
Series 2012 P: | ||||
5% 5/1/23 (g) | 6,455 | 7,538 | ||
5% 5/1/24 (g) | 9,900 | 11,488 | ||
Series C, 5% 11/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,650 | 7,403 | ||
Poway Unified School District: | ||||
(District #2007-1 School Facilities Proj.) Series 2008 A, 0% 8/1/32 | 4,900 | 2,499 | ||
Series B: | ||||
0% 8/1/37 | 7,800 | 3,059 | ||
0% 8/1/38 | 10,200 | 3,803 | ||
0% 8/1/39 | 20,100 | 7,135 | ||
0% 8/1/40 | 3,000 | 988 | ||
0% 8/1/41 | 13,610 | 4,216 | ||
Sacramento City Fing. Auth. Rev. Series A, 0% 12/1/26 (FGIC Insured) | 4,200 | 2,677 | ||
Sacramento Muni. Util. District Elec. Rev. Series 2012 Y, 5% 8/15/26 | 10,000 | 11,813 | ||
San Bernardino County Ctfs. of Prtn. (Arrowhead Proj.) Series 2009 A, 5.25% 8/1/26 | 2,800 | 3,118 | ||
San Diego Convention Ctr. Expansion Series 2012 A, 5% 4/15/25 | 10,425 | 12,096 | ||
San Diego Unified School District: | ||||
Series 2008 C: | ||||
0% 7/1/34 | 3,600 | 1,664 | ||
0% 7/1/39 | 9,650 | 3,504 | ||
0% 7/1/41 | 21,370 | 6,961 | ||
Series 2008 E: | ||||
0% 7/1/47 (a) | 7,400 | 3,727 | ||
0% 7/1/49 | 25,500 | 5,646 | ||
San Francisco City & County Arpts. Commission Int'l. Arpt. Rev. Series 2014 A, 5% 5/1/44 (g) | 12,800 | 14,207 | ||
San Joaquin County Ctfs. of Prtn. (County Administration Bldg. Proj.) Series 2007, 5% 11/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,495 | 3,885 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
San Jose Fing. Auth. Lease Rev. (Civic Ctr. Proj.) Series 2013 A: | ||||
5% 6/1/27 | $ 4,610 | $ 5,494 | ||
5% 6/1/30 | 16,190 | 19,092 | ||
5% 6/1/31 | 11,785 | 13,849 | ||
San Leandro Unified School District Series 2006 B, 6.25% 8/1/33 (FSA Insured) | 6,375 | 7,416 | ||
San Marcos Unified School District: | ||||
Series 2010 A, 5% 8/1/38 | 5,150 | 5,724 | ||
Series 2010 B, 0% 8/1/47 | 18,400 | 4,444 | ||
San Mateo County Cmnty. College District Series A, 0% 9/1/26 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,430 | 3,834 | ||
Santa Clara County Fing. Auth. Rev. (El Camino Hosp. Proj.) Series 2007 C, 5.75% 2/1/41 (AMBAC Insured) | 10,000 | 10,964 | ||
Santa Monica-Malibu Unified School District Series 1999, 0% 8/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,815 | 2,532 | ||
Sonoma County Jr. College District Rev. Series 2002, 5% 8/1/28 (FSA Insured) | 490 | 503 | ||
Sweetwater Union High School District Series 2008 A, 5.625% 8/1/47 (FSA Insured) | 45,225 | 49,956 | ||
Union Elementary School District: | ||||
Series A, 0% 9/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,750 | 1,611 | ||
Series B, 0% 9/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,500 | 1,231 | ||
Univ. of California Regents Med. Ctr. Pool Rev. Series 2013 J, 5% 5/15/48 | 4,000 | 4,450 | ||
Univ. of California Revs.: | ||||
(UCLA Med. Ctr. Proj.) Series B: | ||||
5.5% 5/15/15 (AMBAC Insured) | 1,890 | 1,895 | ||
5.5% 5/15/17 (AMBAC Insured) | 2,545 | 2,551 | ||
Series 2009 O: | ||||
5.25% 5/15/39 | 2,400 | 2,719 | ||
5.75% 5/15/30 | 12,000 | 14,138 | ||
Val Verde Unified School District Ctfs. of Prtn. Series B, 5% 1/1/30 (FGIC Insured) | 1,495 | 1,499 | ||
Ventura County Cmnty. College District Series C, 5.5% 8/1/33 | 5,100 | 5,845 | ||
Washington Township Health Care District Gen. Oblig. Series 2013 A, 5.5% 8/1/38 | 4,500 | 5,327 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
California - continued | ||||
Washington Township Health Care District Rev.: | ||||
Series 2007 A: | ||||
5% 7/1/18 | $ 1,185 | $ 1,286 | ||
5% 7/1/27 | 1,840 | 1,977 | ||
Series 2009 A, 5.75% 7/1/24 | 1,750 | 2,009 | ||
Series 2010 A, 5.5% 7/1/38 | 3,815 | 4,090 | ||
West Contra Costa Unified School District: | ||||
(Election of 2005 Proj.) Series B, 5.625% 8/1/35 (Berkshire Hathaway Assurance Corp. Insured) | 3,850 | 4,333 | ||
Series 2012: | ||||
5% 8/1/24 | 3,625 | 4,354 | ||
5% 8/1/25 | 10,000 | 11,935 | ||
| 1,021,311 | |||
Colorado - 0.8% | ||||
Colorado Health Facilities Auth. Retirement Hsg. Rev. (Liberty Heights Proj.): | ||||
Series B, 0% 7/15/20 (Escrowed to Maturity) | 5,800 | 5,268 | ||
0% 7/15/22 (Escrowed to Maturity) | 15,700 | 13,248 | ||
Colorado Health Facilities Auth. Rev. (Parkview Episcopal Med. Ctr. Proj.) Series B: | ||||
5% 9/1/19 | 1,115 | 1,210 | ||
5% 9/1/22 | 1,500 | 1,632 | ||
Denver City & County Arpt. Rev.: | ||||
Series 2007 E, 5% 11/15/32 (AMBAC Insured) | 2,500 | 2,751 | ||
Series 2011 A, 5% 11/15/15 (g) | 3,000 | 3,122 | ||
E-470 Pub. Hwy. Auth. Rev.: | ||||
Series 1997 B, 0% 9/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,500 | 3,480 | ||
Series 2000 B, 0% 9/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 12,075 | 10,469 | ||
Series 2010 A, 0% 9/1/41 | 9,600 | 3,002 | ||
Series 2010 C, 5.375% 9/1/26 | 1,000 | 1,156 | ||
| 45,338 | |||
District Of Columbia - 1.4% | ||||
District of Columbia Hosp. Rev. (Sibley Memorial Hosp. Proj.) Series 2009, 6.375% 10/1/39 | 8,140 | 9,612 | ||
District of Columbia Rev.: | ||||
(Medlantic/Helix Proj.) Series 1998 C, 5% 8/15/17 (FSA Insured) | 1,700 | 1,868 | ||
Series B, 4.75% 6/1/32 | 2,200 | 2,374 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
District Of Columbia - continued | ||||
District of Columbia Wtr. & Swr. Auth. Pub. Util. Rev. Series 2007 A, 5.5% 10/1/41 (Pre-Refunded to 10/1/17 @ 100) | $ 23,535 | $ 26,584 | ||
Metropolitan Washington Arpts. Auth. Dulles Toll Road Rev. Series 2009 B: | ||||
0% 10/1/33 (Assured Guaranty Corp. Insured) | 15,000 | 6,772 | ||
0% 10/1/34 (Assured Guaranty Corp. Insured) | 15,000 | 6,428 | ||
0% 10/1/35 (Assured Guaranty Corp. Insured) | 33,975 | 13,807 | ||
0% 10/1/39 (Assured Guaranty Corp. Insured) | 5,030 | 1,649 | ||
Washington D.C. Metropolitan Transit Auth. Rev. Series 2009 A: | ||||
5.125% 7/1/32 | 1,000 | 1,131 | ||
5.25% 7/1/27 | 4,390 | 5,064 | ||
5.25% 7/1/28 | 3,000 | 3,453 | ||
| 78,742 | |||
Florida - 9.8% | ||||
Alachua County Health Facilities Auth. Health Facilities Rev. (Avmed/Santa Fe Health Care Sys. Proj.) Series 1993, 6.05% 11/15/16 (Escrowed to Maturity) | 2,045 | 2,138 | ||
Boynton Beach Util. Sys. Rev. Series 2002, 5.5% 11/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,300 | 3,742 | ||
Brevard County School Board Ctfs. of Prtn. | ||||
5% 7/1/24 (AMBAC Insured) | 1,365 | 1,487 | ||
5% 7/1/25 (AMBAC Insured) | 3,540 | 3,853 | ||
Broward County Arpt. Sys. Rev. Series 2012 Q1, 5% 10/1/25 | 5,215 | 6,111 | ||
Broward County School Board Ctfs. of Prtn.: | ||||
Series 2007 A: | ||||
5% 7/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,660 | 4,024 | ||
5% 7/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,700 | 4,026 | ||
Series 2012 A: | ||||
5% 7/1/23 | 21,020 | 24,697 | ||
5% 7/1/27 | 5,695 | 6,482 | ||
Broward County Wtr. & Swr. Util. Rev. Series 2009 A, 5.25% 10/1/34 | 8,500 | 9,571 | ||
Citizens Property Ins. Corp.: | ||||
Series 2010 A1, 5% 6/1/16 (FSA Insured) | 7,500 | 7,961 | ||
Series 2011 A1: | ||||
5% 6/1/19 | 1,715 | 1,970 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Citizens Property Ins. Corp.: - continued | ||||
Series 2011 A1: - continued | ||||
5% 6/1/20 | $ 3,000 | $ 3,480 | ||
Series 2012 A1, 5% 6/1/21 | 8,400 | 9,863 | ||
Collier County Indl. Dev. Auth. Healthcare Facilities Rev. (NCH Healthcare Sys. Proj.) Series 2011, 6.25% 10/1/39 | 24,450 | 28,785 | ||
Emerald Coast Utils. Auth. Rev.: | ||||
5.25% 1/1/26 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000 | 1,040 | ||
5.25% 1/1/36 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,310 | 1,355 | ||
Escambia County Utils. Auth. Util. Sys. Rev. Series 1992 B, 6.25% 1/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,985 | 1,985 | ||
Florida Board of Ed. Lottery Rev. Series 2011 A, 5% 7/1/20 | 12,400 | 14,535 | ||
Florida Board of Ed. Pub. Ed. Cap. Outlay: | ||||
Series 2006 C, 5% 6/1/29 | 4,500 | 4,937 | ||
Series 2011 E, 5% 6/1/24 | 6,600 | 7,789 | ||
Series 2011 F, 5% 6/1/23 | 6,070 | 7,199 | ||
Series A, 5.5% 6/1/38 | 2,000 | 2,270 | ||
Florida Dept. of Children and Family Svcs. Ctfs. of Prtn. (South Florida Evaluation Treatment Ctr. Proj.): | ||||
5% 10/1/16 | 2,025 | 2,092 | ||
5% 10/1/17 | 2,130 | 2,201 | ||
Florida Dept. of Trans. Rev. Series 2005 A: | ||||
5% 7/1/17 | 3,360 | 3,437 | ||
5% 7/1/18 | 3,320 | 3,396 | ||
Florida Dev. Fin. Corp. Healthcare Facility Rev. 6% 2/1/33 | 5,700 | 6,471 | ||
Florida Gen. Oblig.: | ||||
Series 2008 A, 5.25% 7/1/37 | 3,000 | 3,299 | ||
Series 2011 B, 5% 7/1/23 | 10,175 | 12,187 | ||
Florida Muni. Pwr. Agcy. Rev.: | ||||
(St. Lucie Proj.) Series 2012 A, 5% 10/1/26 | 3,100 | 3,581 | ||
Series 2009 A, 6.25% 10/1/31 | 3,000 | 3,532 | ||
Florida Wtr. Poll. Cont. Fing. Corp. Rev. Series 2003, 5.25% 1/15/20 | 1,950 | 1,957 | ||
Gulf Breeze Util. Sys. Rev. Series 2004, 5% 10/1/16 (AMBAC Insured) | 1,010 | 1,013 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Highlands County Health Facilities Auth. Rev. (Adventist Health Sys./Sunbelt, Inc. Prog.): | ||||
Series 2005 A: | ||||
5% 11/15/15 (Escrowed to Maturity) | $ 1,000 | $ 1,041 | ||
5% 11/15/17 (Pre-Refunded to 11/15/15 @ 100) | 1,200 | 1,250 | ||
5% 11/15/22 (Pre-Refunded to 11/15/15 @ 100) | 1,000 | 1,042 | ||
Series 2005 B: | ||||
5% 11/15/15 (Escrowed to Maturity) | 125 | 130 | ||
5% 11/15/15 (Escrowed to Maturity) | 875 | 911 | ||
5% 11/15/16 (Pre-Refunded to 11/15/15 @ 100) | 150 | 156 | ||
5% 11/15/16 (Pre-Refunded to 11/16/15 @ 100) | 1,040 | 1,083 | ||
5% 11/15/30 (Pre-Refunded to 11/15/15 @ 100) | 485 | 505 | ||
Series 2006 G: | ||||
5% 11/15/15 | 965 | 1,005 | ||
5% 11/15/15 (Escrowed to Maturity) | 35 | 36 | ||
5% 11/15/16 | 1,020 | 1,103 | ||
5.125% 11/15/17 | 2,750 | 2,974 | ||
5.125% 11/15/17 (Pre-Refunded to 11/15/16 @ 100) | 95 | 103 | ||
5.125% 11/15/18 | 965 | 1,043 | ||
5.125% 11/15/19 | 1,930 | 2,088 | ||
5.125% 11/15/19 (Pre-Refunded to 11/15/16 @ 100) | 70 | 76 | ||
Series 2008 B, 6% 11/15/37 | 11,000 | 12,932 | ||
Hillsborough County Indl. Dev.: | ||||
(H Lee Moffitt Cancer Ctr. Proj.) Series A: | ||||
5% 7/1/17 | 1,930 | 2,102 | ||
5% 7/1/18 | 2,125 | 2,308 | ||
(Tampa Gen. Hosp. Proj.) Series 2006, 5.25% 10/1/41 | 8,525 | 8,992 | ||
Hillsborough County Indl. Dev. Auth. Indl. Dev. Rev. (Health Facilities/Univ. Cmnty. Hosp. Proj.) Series 2008 B, 8% 8/15/32 (Pre-Refunded to 8/15/19 @ 101) | 4,900 | 6,379 | ||
Jacksonville Sales Tax Rev. Series 2012, 5% 10/1/24 | 5,500 | 6,521 | ||
Lake County School Board Ctfs. of Prtn. Series 2014 A: | ||||
5% 6/1/27 (FSA Insured) | 1,000 | 1,171 | ||
5% 6/1/28 (FSA Insured) | 1,000 | 1,165 | ||
5% 6/1/30 (FSA Insured) | 1,650 | 1,904 | ||
Lee County Arpt. Rev. Series 2011 A, 5.375% 10/1/32 (g) | 5,260 | 5,883 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Miami Beach Health Facilities Auth. Hosp. Rev. (Mount Sinai Med. Ctr. of Florida Proj.) Series 2012, 5% 11/15/23 | $ 2,000 | $ 2,350 | ||
Miami Beach Wtr. & Swr. Rev. 5.5% 9/1/27 (AMBAC Insured) | 6,000 | 6,020 | ||
Miami-Dade County Aviation Rev.: | ||||
Series 2010 A: | ||||
5.375% 10/1/41 | 5,800 | 6,462 | ||
5.5% 10/1/30 | 3,000 | 3,506 | ||
Series 2012 A: | ||||
5% 10/1/23 (g) | 7,500 | 8,765 | ||
5% 10/1/24 (g) | 9,050 | 10,542 | ||
5% 10/1/30 (g) | 6,095 | 6,886 | ||
5% 10/1/31 (g) | 2,500 | 2,801 | ||
Series 2014 A: | ||||
5% 10/1/28 (g) | 4,000 | 4,631 | ||
5% 10/1/36 (g) | 12,000 | 13,527 | ||
Miami-Dade County Cap. Asset Acquisition Series 2012 A, 5% 10/1/26 | 3,750 | 4,380 | ||
Miami-Dade County Expressway Auth.: | ||||
Series 2014 A, 5% 7/1/44 | 1,900 | 2,125 | ||
Series 2014 B: | ||||
5% 7/1/26 | 2,500 | 2,976 | ||
5% 7/1/27 | 1,750 | 2,072 | ||
Miami-Dade County School Board Ctfs. of Prtn.: | ||||
Series 2008 A: | ||||
5% 8/1/17 (AMBAC Insured) | 3,500 | 3,855 | ||
5% 8/1/18 (AMBAC Insured) | 4,000 | 4,495 | ||
5% 8/1/20 (AMBAC Insured) | 2,500 | 2,787 | ||
5% 8/1/21 (AMBAC Insured) | 5,095 | 5,684 | ||
5% 8/1/22 (AMBAC Insured) | 3,325 | 3,699 | ||
Series 2011 B, 5.625% 5/1/31 | 6,600 | 7,549 | ||
Series 2015 A: | ||||
5% 5/1/26 (c) | 5,500 | 6,470 | ||
5% 5/1/28 (c) | 17,710 | 20,611 | ||
Miami-Dade County Transit Sales Surtax Rev. Series 2012: | ||||
5% 7/1/24 | 2,255 | 2,668 | ||
5% 7/1/42 | 1,900 | 2,110 | ||
Ocala Util. Sys. Rev. Series B, 5.25% 10/1/22 (Pre-Refunded to 10/1/15 @ 100) | 1,000 | 1,037 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Orange County Edl. Facilities Auth. Ed. Rev. (Rollins College Proj.): | ||||
5.25% 12/1/32 (AMBAC Insured) | $ 1,350 | $ 1,476 | ||
5.25% 12/1/37 (AMBAC Insured) | 1,365 | 1,487 | ||
Orange County Health Facilities Auth.: | ||||
(Orlando Health, Inc.) Series 2009, 5.125% 10/1/26 | 5,030 | 5,686 | ||
Series 2012 A, 5% 10/1/42 | 14,700 | 15,903 | ||
Series 2012 B, 5% 10/1/42 | 5,900 | 6,383 | ||
Orange County Health Facilities Auth. Rev. (Orlando Reg'l. Health Care Sys. Proj.) Series 1996 A, 6.25% 10/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,500 | 5,190 | ||
Orange County School Board Ctfs. of Prtn.: | ||||
Series 2015 C, 5% 8/1/30 (c) | 8,500 | 10,055 | ||
Series A, 5% 8/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,940 | 3,016 | ||
Orlando & Orange County Expressway Auth. Rev. Series 2012, 5% 7/1/22 | 2,500 | 2,979 | ||
Orlando Utils. Commission Util. Sys. Rev.: | ||||
Series 2009 B, 5% 10/1/33 | 3,700 | 4,134 | ||
Series 2012 A: | ||||
5% 10/1/23 | 2,300 | 2,822 | ||
5% 10/1/25 | 1,100 | 1,380 | ||
Series 2013 A, 5% 10/1/25 | 4,800 | 6,021 | ||
Palm Beach County Health Facilities Auth. Hosp. Rev. Series 2014: | ||||
5% 12/1/22 | 670 | 769 | ||
5% 12/1/23 | 1,000 | 1,150 | ||
5% 12/1/24 | 750 | 867 | ||
5% 12/1/25 | 500 | 574 | ||
Palm Beach County School Board Ctfs. of Prtn. Series 2014 B: | ||||
4% 8/1/20 | 5,000 | 5,575 | ||
5% 8/1/20 | 6,010 | 7,053 | ||
5% 8/1/24 | 3,500 | 4,274 | ||
Palm Beach County Solid Waste Auth. Rev. Series 2011, 5% 10/1/24 | 11,100 | 13,127 | ||
Peace River/Manasota Reg'l. Wtr. Supply Auth. Rev.: | ||||
5% 10/1/30 (Pre-Refunded to 10/1/15 @ 100) | 900 | 932 | ||
5% 10/1/30 (Pre-Refunded to 10/1/15 @ 100) | 2,205 | 2,283 | ||
Plant City Util. Sys. Rev. 6% 10/1/15 (Escrowed to Maturity) | 495 | 516 | ||
Polk County Pub. Facilities Rev. 5% 12/1/33 (Pre-Refunded to 12/1/15 @ 100) | 2,000 | 2,086 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Florida - continued | ||||
Port Orange Gen. Oblig. 5% 4/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 2,015 | $ 2,109 | ||
Seminole County School Board Ctfs. of Prtn. | ||||
5% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,645 | 1,682 | ||
5% 7/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,745 | 1,782 | ||
South Lake County Hosp. District (South Lake Hosp., Inc.): | ||||
Series 2009 A, 6.25% 4/1/39 | 3,300 | 3,723 | ||
Series 2010: | ||||
5% 10/1/25 | 4,140 | 4,628 | ||
5.25% 10/1/34 | 3,500 | 3,822 | ||
St. Johns County School Board 5.25% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,400 | 1,496 | ||
St. Petersburg Pub. Util. Rev. Series 2009 A, 5.5% 10/1/37 | 7,000 | 8,064 | ||
Sumter County School District Rev. (Multi-District Ln. Prog.) 7.15% 11/1/15 (Escrowed to Maturity) | 985 | 1,040 | ||
Tampa Health Sys. Rev. (Baycare Health Sys. Proj.) Series 2010, 5% 11/15/23 | 8,080 | 9,284 | ||
Tampa Tax Allocation (H. Lee Moffitt Cancer Ctr. Proj.) Series 2012 A, 5% 9/1/22 | 2,300 | 2,723 | ||
USF Fing. Corp. Ctfs. of Prtn. (Master Lease Prog.) | ||||
5.25% 7/1/15 (AMBAC Insured) | 2,690 | 2,755 | ||
5.25% 7/1/16 (AMBAC Insured) | 2,830 | 2,894 | ||
Volusia County School Board Ctfs. of Prtn. (Master Lease Prog.) Series 2014 B, 5% 8/1/25 | 1,775 | 2,122 | ||
Walton County School Board Ctfs. of Prtn. 5.25% 7/1/18 (FSA Insured) | 1,865 | 2,048 | ||
| 560,287 | |||
Georgia - 3.3% | ||||
Atlanta Wtr. & Wastewtr. Rev. Series 2009 A: | ||||
6% 11/1/25 | 9,785 | 11,739 | ||
6.25% 11/1/39 | 10,800 | 12,871 | ||
Burke County Indl. Dev. Auth. Poll. Cont. Rev. Bonds: | ||||
(Oglethorpe Pwr. Corp. Vogtle Proj.) Series 2013 A, 2.4%, tender 4/1/20 (d) | 8,100 | 8,192 | ||
2.2%, tender 4/2/19 (d) | 3,000 | 3,036 | ||
2.2%, tender 4/2/19 (d) | 300 | 304 | ||
2.2%, tender 4/2/19 (d) | 6,500 | 6,579 | ||
2.2%, tender 4/2/19 (d) | 4,100 | 4,150 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Georgia - continued | ||||
Colquitt County Dev. Auth. Rev. Series C, 0% 12/1/21 (Escrowed to Maturity) | $ 10,200 | $ 9,007 | ||
DeKalb County Hosp. Auth. Rev. (DeKalb Med. Ctr., Inc. Proj.) Series 2010: | ||||
6% 9/1/30 | 7,745 | 8,667 | ||
6.125% 9/1/40 | 9,310 | 10,237 | ||
DeKalb County Wtr. & Swr. Rev. Series 2011 A: | ||||
5.25% 10/1/36 | 3,000 | 3,454 | ||
5.25% 10/1/41 | 5,600 | 6,396 | ||
Fulton County Wtr. & Swr. Rev. Series 2011: | ||||
5% 1/1/23 | 1,500 | 1,771 | ||
5% 1/1/24 | 6,500 | 7,655 | ||
Georgia Gen. Oblig. Series 2007 E, 5% 8/1/22 | 575 | 638 | ||
Georgia Muni. Elec. Auth. Pwr. Rev.: | ||||
Series C, 5% 1/1/22 | 7,700 | 9,116 | ||
Series GG, 5% 1/1/22 | 4,000 | 4,773 | ||
Georgia Muni. Gas Auth. Rev. (Gas Portfolio III Proj.) Series S: | ||||
5% 10/1/22 | 3,425 | 4,008 | ||
5% 10/1/23 | 4,000 | 4,669 | ||
Main Street Natural Gas, Inc. Georgia Gas Proj. Rev. Series A, 5.25% 9/15/19 | 1,915 | 2,211 | ||
Metropolitan Atlanta Rapid Transit Auth. Sales Tax Rev. Third Series 2009 A, 5.25% 7/1/36 | 8,500 | 9,802 | ||
Private Colleges & Univs. Auth. Rev. (The Savannah College of Arts and Design Projs.) Series 2014: | ||||
5% 4/1/25 | 3,500 | 4,015 | ||
5% 4/1/30 | 1,200 | 1,346 | ||
Richmond County Dev. Auth. Rev. (Southern Care Corp. Facility Proj.): | ||||
Series A, 0% 12/1/21 (Escrowed to Maturity) | 5,615 | 4,958 | ||
Series C, 0% 12/1/21 (Escrowed to Maturity) | 19,400 | 17,131 | ||
Richmond County Hosp. Auth. (Univ. Health Svcs., Inc. Proj.) Series 2009, 5.5% 1/1/36 | 13,550 | 15,078 | ||
Savannah Econ. Dev. Auth. Rev. (Southern Care Corp. Proj.) Series C, 0% 12/1/21 (Escrowed to Maturity) | 18,045 | 15,935 | ||
Valdosta & Lowndes County Hosp. (South Georgia Med. Ctr. Proj.) 5% 10/1/20 | 1,570 | 1,712 | ||
| 189,450 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Hawaii - 0.2% | ||||
Honolulu City & County Board of Wtr. Supply Wtr. Sys. Rev. Series B: | ||||
5% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (g) | $ 1,430 | $ 1,461 | ||
5.25% 7/1/18 (Pre-Refunded to 7/1/16 @ 100) (g) | 3,205 | 3,424 | ||
State of Hawaii Dept. of Trans. Series 2013: | ||||
5.25% 8/1/24 (g) | 2,000 | 2,400 | ||
5.25% 8/1/25 (g) | 2,500 | 2,985 | ||
| 10,270 | |||
Idaho - 0.2% | ||||
Idaho Health Facilities Auth. Rev.: | ||||
(St. Luke's Health Sys. Proj.) Series 2008 A: | ||||
6.5% 11/1/28 | 4,355 | 5,088 | ||
6.75% 11/1/37 | 4,300 | 5,006 | ||
(Trinity Health Group Proj.) 2008 B, 6.25% 12/1/33 | 2,190 | 2,548 | ||
| 12,642 | |||
Illinois - 17.1% | ||||
Boone & Winnebago County Cmnty. Unit School District 200: | ||||
0% 1/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,810 | 1,506 | ||
0% 1/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,950 | 1,548 | ||
Chicago Board of Ed.: | ||||
Series 1999 A, 0% 12/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,200 | 3,134 | ||
Series 2011 A, 5.5% 12/1/39 | 7,900 | 8,475 | ||
Chicago Gen. Oblig.: | ||||
(Cap. Impt. Proj.) Series 1999: | ||||
0% 1/1/27 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,700 | 2,770 | ||
0% 1/1/39 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 15,200 | 4,542 | ||
(Neighborhoods Alive 21 Prog.) Series 2003, 5% 1/1/33 (AMBAC Insured) | 2,100 | 2,102 | ||
Series 2003 C, 5% 1/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,445 | 1,446 | ||
Series 2004 A, 5.25% 1/1/29 (FSA Insured) | 435 | 437 | ||
Series 2007 C, 5% 1/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 12,950 | 13,605 | ||
Series 2008 C, 5% 1/1/34 | 1,500 | 1,536 | ||
Series 2009 A: | ||||
5% 1/1/22 | 3,400 | 3,677 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Chicago Gen. Oblig.: - continued | ||||
Series 2009 A: - continued | ||||
5% 1/1/27 (FSA Insured) | $ 5,200 | $ 5,593 | ||
Series 2011 A, 5% 1/1/40 | 11,260 | 11,547 | ||
Series 2012 A: | ||||
5% 1/1/33 | 15,200 | 15,855 | ||
5% 1/1/34 | 2,440 | 2,538 | ||
Series 2012 C, 5% 1/1/23 | 1,200 | 1,292 | ||
Series A, 5% 1/1/42 (AMBAC Insured) | 40 | 40 | ||
5% 1/1/34 | 3,000 | 3,148 | ||
5% 1/1/35 | 15,000 | 15,628 | ||
5% 1/1/36 | 11,555 | 12,004 | ||
Chicago Midway Arpt. Rev. Series 2014 A: | ||||
5% 1/1/27 (g) | 10,330 | 11,850 | ||
5% 1/1/28 (g) | 14,950 | 17,037 | ||
Chicago O'Hare Int'l. Arpt. Rev.: | ||||
Series 2008 A, 5% 1/1/16 (FSA Insured) | 6,800 | 7,109 | ||
Series 2011 C, 6.5% 1/1/41 | 19,600 | 23,970 | ||
Series 2013 B, 5% 1/1/27 | 11,275 | 13,074 | ||
Series 2013 D, 5% 1/1/27 | 1,000 | 1,160 | ||
Chicago Park District Gen. Oblig.: | ||||
Series 2010 C, 5.25% 1/1/40 | 7,700 | 8,392 | ||
Series 2013 A: | ||||
5.5% 1/1/33 | 2,500 | 2,923 | ||
5.75% 1/1/38 | 5,600 | 6,574 | ||
Series 2014 B: | ||||
5% 1/1/26 | 1,500 | 1,750 | ||
5% 1/1/27 | 3,210 | 3,729 | ||
5% 1/1/28 | 2,500 | 2,891 | ||
Series 2014 C, 5% 1/1/26 | 1,865 | 2,176 | ||
Chicago Transit Auth. Series 2014, 5.25% 12/1/49 | 13,000 | 14,948 | ||
Chicago Transit Auth. Cap. Grant Receipts Rev.: | ||||
(Fed. Transit Administration Section 5307 Proj.): | ||||
Series 2006 A, 5% 6/1/21 | 2,600 | 2,767 | ||
Series 2008 A: | ||||
5.25% 6/1/23 (Assured Guaranty Corp. Insured) | 2,425 | 2,654 | ||
5.25% 6/1/25 (Assured Guaranty Corp. Insured) | 3,495 | 3,817 | ||
5% 6/1/20 (AMBAC Insured) | 5,610 | 5,988 | ||
5% 6/1/20 (Pre-Refunded to 12/1/16 @ 100) | 1,390 | 1,507 | ||
Chicago Wtr. Rev. Series 2000, 0% 11/1/16 (AMBAC Insured) | 7,555 | 7,398 | ||
Cook County Forest Preservation District: | ||||
(Ltd. Tax Proj.) Series 2012 B, 5% 12/15/37 | 2,500 | 2,739 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Cook County Forest Preservation District: - continued | ||||
Series 2012 A, 5% 11/15/22 | $ 2,000 | $ 2,361 | ||
Series 2012 C, 5% 12/15/37 | 1,000 | 1,095 | ||
Cook County Gen. Oblig.: | ||||
Series 2010 A, 5.25% 11/15/33 | 19,775 | 21,659 | ||
Series 2010 G, 5% 11/15/25 | 3,400 | 3,868 | ||
Series 2012 C: | ||||
5% 11/15/24 | 9,400 | 10,892 | ||
5% 11/15/25 | 15,070 | 17,371 | ||
Series B, 5% 11/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,600 | 2,858 | ||
DuPage County Forest Preserve District Rev. Series 2000, 0% 11/1/17 | 6,665 | 6,397 | ||
Grundy, Kendall & Will County Cmnty. High School District #111 Gen. Oblig. Series 2006 A: | ||||
5.25% 5/1/25 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 5,293 | ||
5.5% 5/1/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 3,190 | ||
Illinois Dedicated Tax Rev. Series B, 0% 12/15/18 (AMBAC Insured) | 4,500 | 3,957 | ||
Illinois Dev. Fin. Auth. Retirement Hsg. Regency Park Rev. 0% 7/15/23 (Escrowed to Maturity) | 29,680 | 24,547 | ||
Illinois Fin. Auth. Gas Supply Rev. Bonds (Peoples Gas Lt. and Coke Co. Proj.) Series 2005 A, 4.3%, tender 6/1/16 (AMBAC Insured) (d) | 3,860 | 4,053 | ||
Illinois Fin. Auth. Rev.: | ||||
(Advocate Health Care Proj.): | ||||
Series 2008 D, 6.5% 11/1/38 (Pre-Refunded to 11/1/18 @ 100) | 4,300 | 5,173 | ||
Series 2010 A, 5.5% 4/1/44 | 3,000 | 3,392 | ||
(Central DuPage Health Proj.) Series 2009 B, 5.375% 11/1/39 | 6,500 | 7,274 | ||
(Children's Memorial Hosp. Proj.) Series 2008 A: | ||||
5.25% 8/15/33 (Assured Guaranty Corp. Insured) | 7,800 | 8,569 | ||
5.25% 8/15/47 (Assured Guaranty Corp. Insured) | 2,000 | 2,149 | ||
(Edward Hosp. Obligated Group Proj.) Series 2008 A: | ||||
5.5% 2/1/40 (AMBAC Insured) | 3,165 | 3,454 | ||
6% 2/1/28 (AMBAC Insured) | 2,855 | 3,206 | ||
(Newman Foundation Proj.): | ||||
5% 2/1/32 (Radian Asset Assurance, Inc. Insured) | 1,300 | 1,326 | ||
5% 2/1/37 (Radian Asset Assurance, Inc. Insured) | 10,000 | 10,123 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Fin. Auth. Rev.: - continued | ||||
(Northwest Cmnty. Hosp. Proj.) Series 2008 A, 5.5% 7/1/38 | $ 12,615 | $ 13,933 | ||
(Northwestern Memorial Hosp. Proj.) Series 2009 A, 6% 8/15/39 | 4,020 | 4,719 | ||
(Palos Cmnty. Hosp. Proj.) Series 2010 C: | ||||
5.375% 5/15/25 | 25,230 | 28,914 | ||
5.375% 5/15/30 | 6,100 | 6,883 | ||
(Provena Health Proj.) Series 2010 A, 6% 5/1/28 | 13,500 | 15,427 | ||
(Rush Univ. Med. Ctr. Proj.): | ||||
Series 2009 C, 6.625% 11/1/39 | 8,200 | 9,565 | ||
Series 2009 D, 6.625% 11/1/39 | 8,000 | 9,332 | ||
(Sherman Health Systems Proj.) Series 2007 A, 5.5% 8/1/37 (Pre-Refunded to 8/1/17 @ 100) | 19,325 | 21,651 | ||
(Silver Cross Hosp. and Med. Ctr. Proj.) Series 2008 A, 5.5% 8/15/30 | 1,645 | 1,808 | ||
(Southern Illinois Healthcare Enterprises, Inc. Proj.) Series 2005, 5.25% 3/1/30 | 5,900 | 6,574 | ||
(The Carle Foundation Proj.) Series 2009 A, 5.5% 2/15/16 (Assured Guaranty Corp. Insured) | 5,385 | 5,674 | ||
(The Univ. of Chicago Med. Ctr. Proj.) Series 2009 B, 5% 8/15/23 | 5,550 | 6,391 | ||
Series 2008 A: | ||||
5.625% 1/1/37 | 27,960 | 30,258 | ||
6% 2/1/24 | 300 | 338 | ||
6.25% 2/1/33 (AMBAC Insured) | 300 | 336 | ||
Series 2009 A, 7.25% 11/1/38 | 7,605 | 9,001 | ||
Series 2009: | ||||
6.875% 8/15/38 | 430 | 502 | ||
7% 8/15/44 | 15,955 | 18,690 | ||
Series 2010 A: | ||||
5.5% 8/15/24 | 2,860 | 3,248 | ||
5.75% 8/15/29 | 2,320 | 2,615 | ||
Series 2010: | ||||
5.25% 5/1/25 | 7,000 | 8,185 | ||
5.25% 8/15/36 | 695 | 745 | ||
Series 2012 A, 5% 5/15/22 | 2,120 | 2,468 | ||
Series 2012: | ||||
4% 9/1/32 | 7,460 | 6,991 | ||
5% 9/1/38 | 23,950 | 25,192 | ||
5% 11/15/43 | 4,395 | 4,769 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Illinois Fin. Auth. Rev.: - continued | ||||
Series 2013: | ||||
5% 11/15/28 | $ 2,875 | $ 3,270 | ||
5% 11/15/29 | 1,400 | 1,584 | ||
5% 5/15/43 | 10,000 | 10,553 | ||
Illinois Gen. Oblig.: | ||||
Series 2006: | ||||
5% 1/1/19 | 4,200 | 4,652 | ||
5.5% 1/1/31 | 3,000 | 3,497 | ||
Series 2010: | ||||
5% 1/1/21 (FSA Insured) | 2,600 | 2,890 | ||
5% 1/1/23 (FSA Insured) | 6,600 | 7,249 | ||
Series 2012 A, 5% 1/1/33 | 4,700 | 5,008 | ||
Series 2012: | ||||
5% 8/1/19 | 2,500 | 2,789 | ||
5% 8/1/21 | 2,000 | 2,251 | ||
5% 3/1/23 | 4,000 | 4,438 | ||
5% 8/1/23 | 3,900 | 4,394 | ||
5% 3/1/35 | 2,000 | 2,126 | ||
5% 3/1/37 | 1,000 | 1,060 | ||
Series 2014: | ||||
5% 2/1/23 | 4,400 | 4,943 | ||
5.25% 2/1/30 | 9,000 | 10,103 | ||
Illinois Health Facilities Auth. Rev.: | ||||
(Delnor-Cmnty. Hosp. Proj.) Series 2002 D, 5.25% 5/15/32 (FSA Insured) | 3,000 | 3,305 | ||
(Lutheran Gen. Health Care Sys. Proj.) Series C, 6% 4/1/18 | 3,000 | 3,213 | ||
Illinois Reg'l. Trans. Auth. Series A, 8% 6/1/17 (AMBAC Insured) | 4,500 | 5,039 | ||
Illinois Sales Tax Rev. Series 2010, 5% 6/15/17 | 13,500 | 14,854 | ||
Illinois Unemployment Ins. Fund Bldg. Receipts Series 2012 A: | ||||
5% 6/15/19 | 2,900 | 2,960 | ||
5% 12/15/19 | 1,000 | 1,021 | ||
Kane & DeKalb Counties Cmnty. Unit School District #302 5.5% 2/1/25 (FSA Insured) | 3,000 | 3,149 | ||
Kane, McHenry, Cook & DeKalb Counties Unit School District #300: | ||||
0% 12/1/17 (AMBAC Insured) | 3,350 | 3,201 | ||
0% 12/1/17 (Escrowed to Maturity) | 350 | 340 | ||
0% 12/1/21 (AMBAC Insured) | 3,095 | 2,548 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Kane, McHenry, Cook & DeKalb Counties Unit School District #300: - continued | ||||
0% 12/1/21 (Escrowed to Maturity) | $ 1,905 | $ 1,676 | ||
6.5% 1/1/20 (AMBAC Insured) | 2,755 | 3,351 | ||
6.5% 1/1/20 (Escrowed to Maturity) | 4,645 | 5,795 | ||
6.5% 1/1/20 (Escrowed to Maturity) | 465 | 580 | ||
Lake County Cmnty. Consolidated School District #73 Gen. Oblig.: | ||||
0% 12/1/16 (Escrowed to Maturity) | 585 | 578 | ||
0% 12/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,905 | 1,868 | ||
Lake County Cmnty. High School District #117, Antioch Series B, 0% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,240 | 6,563 | ||
McHenry & Kane Counties Cmnty. Consolidated School District #158: | ||||
Series 2004, 0% 1/1/24 (FSA Insured) | 4,300 | 3,143 | ||
0% 1/1/19 | 2,955 | 2,696 | ||
0% 1/1/19 (Escrowed to Maturity) | 45 | 43 | ||
Metropolitan Pier & Exposition: | ||||
(McCormick Place Expansion Proj.): | ||||
Series 1992 A, 0% 6/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,610 | 3,152 | ||
Series 1994 A, 0% 6/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,935 | 2,657 | ||
Series 1996 A, 0% 6/15/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,300 | 4,064 | ||
Series 2002 A: | ||||
0% 12/15/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 32,600 | 16,727 | ||
0% 6/15/36 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,445 | 1,687 | ||
Series 2002 B, 5.5% 6/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000 | 2,192 | ||
Series 2010 B1: | ||||
0% 6/15/43 (FSA Insured) | 45,400 | 11,879 | ||
0% 6/15/44 (FSA Insured) | 53,800 | 13,390 | ||
0% 6/15/45 (FSA Insured) | 27,900 | 6,604 | ||
0% 6/15/46 (FSA Insured) | 6,250 | 1,407 | ||
0% 6/15/47 (FSA Insured) | 16,540 | 3,539 | ||
Series 2012 B: | ||||
0% 12/15/41 | 17,400 | 5,164 | ||
0% 12/15/51 | 16,200 | 2,749 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Illinois - continued | ||||
Metropolitan Pier & Exposition: - continued | ||||
Series 2012 B: - continued | ||||
5% 6/15/52 | $ 17,900 | $ 19,305 | ||
Series A, 0% 6/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,345 | 3,045 | ||
Series 1996 A, 0% 6/15/24 | 3,060 | 2,226 | ||
Series A, 0% 12/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,155 | 1,922 | ||
0% 6/15/15 | 7,915 | 7,888 | ||
0% 6/15/15 (Escrowed to Maturity) | 1,730 | 1,728 | ||
0% 6/15/15 (Escrowed to Maturity) | 5,355 | 5,350 | ||
Quincy Hosp. Rev. Series 2007: | ||||
5% 11/15/16 | 1,200 | 1,285 | ||
5% 11/15/18 | 1,000 | 1,096 | ||
Univ. of Illinois Board of Trustees Ctfs. of Prtn. Series 2009 A: | ||||
5% 10/1/17 | 1,300 | 1,439 | ||
5% 10/1/18 | 1,435 | 1,586 | ||
5% 10/1/20 | 1,290 | 1,423 | ||
Univ. of Illinois Rev.: | ||||
(Auxiliary Facilities Sys. Proj.): | ||||
Series 1991: | ||||
0% 4/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 16,270 | 15,781 | ||
0% 4/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 8,000 | 7,075 | ||
Series 1999 A, 0% 4/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,965 | 4,226 | ||
Series 2009 A, 5.75% 4/1/38 | 7,805 | 8,978 | ||
Series 2010 A: | ||||
5% 4/1/25 | 5,125 | 5,866 | ||
5.25% 4/1/30 | 3,200 | 3,682 | ||
Series 2013: | ||||
6% 10/1/42 | 4,600 | 5,432 | ||
6.25% 10/1/38 | 4,530 | 5,289 | ||
Will County Cmnty. Unit School District #365-U: | ||||
0% 11/1/16 (Escrowed to Maturity) | 1,615 | 1,600 | ||
0% 11/1/16 (FSA Insured) | 4,885 | 4,794 | ||
0% 11/1/17 (FSA Insured) | 3,200 | 3,077 | ||
0% 11/1/19 (Escrowed to Maturity) | 675 | 631 | ||
0% 11/1/19 (FSA Insured) | 4,325 | 3,933 | ||
| 983,890 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - 3.1% | ||||
Crown Point Multi-School Bldg. Corp. 0% 1/15/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 7,480 | $ 6,525 | ||
Delaware County Ind. Hosp. Auth. Series 2006, 5.125% 8/1/29 (Pre-Refunded to 8/1/16 @ 100) | 2,510 | 2,692 | ||
Franklin Township Independent School Bldg. Corp., Marion County: | ||||
5% 7/15/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 895 | 916 | ||
5% 7/15/24 (Pre-Refunded to 7/15/15 @ 100) | 470 | 482 | ||
5.25% 7/15/17 (Pre-Refunded to 7/15/15 @ 100) | 1,885 | 1,935 | ||
GCS School Bldg. Corp. One 5% 7/15/22 (Pre-Refunded to 7/15/15 @ 100) | 1,545 | 1,584 | ||
Hobart Bldg. Corp. Series 2006, 6.5% 1/15/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 25,900 | 32,174 | ||
Indiana Dev. Fin. Auth. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2001, 4.7%, tender 10/1/15 (d)(g) | 3,500 | 3,611 | ||
Indiana Fin. Auth. Health Sys. Rev. (Sisters of Saint Francis Health Svcs., Inc. Obligated Group Proj.): | ||||
Series 2008 C, 5.375% 11/1/32 | 7,815 | 8,756 | ||
Series 2009 A, 5.25% 11/1/39 | 5,300 | 5,889 | ||
Indiana Fin. Auth. Rev.: | ||||
(Trinity Health Cr. Group Proj.) Series 2009 A, 5.25% 12/1/38 | 8,000 | 8,904 | ||
Series 2012: | ||||
5% 3/1/30 | 3,900 | 4,301 | ||
5% 3/1/41 | 7,070 | 7,624 | ||
Indiana Health & Edl. Facilities Fing. Auth. Hosp. Rev. Series B, 5% 2/15/15 | 1,500 | 1,509 | ||
Indiana Health & Edl. Facilities Fing. Auth. Rev. Bonds (Ascension Health Sr. Cr. Group Proj.) Series 2006 B1, 4.1%, tender 11/3/16 (d) | 11,200 | 11,940 | ||
Indiana Health Facilities Fing. Auth. Hosp. Rev. (Columbus Reg'l. Hosp. Proj.) Series 1993, 7% 8/15/15 (FSA Insured) | 435 | 438 | ||
Indiana Health Facility Fing. Auth. Rev. Bonds (Ascension Health Cr. Group Proj.) Series 2001 A2, 1.6%, tender 2/1/17 (d) | 7,700 | 7,823 | ||
Indiana Muni. Pwr. Agcy. Pwr. Supply Sys. Rev.: | ||||
Series 2011 A: | ||||
5% 1/1/22 | 2,000 | 2,361 | ||
5% 1/1/23 | 1,800 | 2,095 | ||
Series A, 5% 1/1/32 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,500 | 2,500 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Indiana - continued | ||||
Indiana State Fin. Auth. Wastewtr. Util. Rev.: | ||||
(CWA Auth. Proj.) Series 2012 A, 5% 10/1/26 | $ 2,545 | $ 2,994 | ||
Series 2011 A, 5.25% 10/1/25 | 1,750 | 2,063 | ||
Indiana Trans. Fin. Auth. Hwy. Rev. Series 1993 A: | ||||
0% 6/1/16 (AMBAC Insured) | 6,470 | 6,369 | ||
0% 6/1/18 (AMBAC Insured) | 1,700 | 1,608 | ||
Indianapolis Local Pub. Impt. Bond Bank (Indianapolis Arpt. Auth. Proj.) Series 2006 F: | ||||
5% 1/1/16 (AMBAC Insured) (g) | 1,525 | 1,594 | ||
5% 1/1/17 (AMBAC Insured) (g) | 1,700 | 1,804 | ||
Jasper County Indl. Poll. Ctl. Rev. (Northern Indiana Pub. Svc. Co. Proj.) Series 1988 C, 5.6% 11/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,000 | 4,320 | ||
Lake Central Multi-District School Bldg. Corp. Series 2012 B: | ||||
4% 7/15/18 | 400 | 438 | ||
5% 1/15/30 | 24,540 | 28,339 | ||
Purdue Univ. Rev. (Student Facilities Sys. Proj.) Series 2009 B: | ||||
5% 7/1/24 | 1,150 | 1,317 | ||
5% 7/1/25 | 1,000 | 1,145 | ||
5% 7/1/26 | 1,325 | 1,516 | ||
5% 7/1/29 | 670 | 766 | ||
Wayne Township Marion County School Bldg. Corp. Series 2007, 5.5% 1/15/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,560 | 6,022 | ||
Westfield Washington Multi-School Bldg. Corp.: | ||||
Series 2005 A, 5% 7/15/18 | 890 | 891 | ||
5% 7/15/18 | 610 | 611 | ||
Zionsville Cmnty. Schools Bldg. Series 2005, 5% 7/15/20 (FSA Insured) | 1,945 | 2,287 | ||
| 178,143 | |||
Iowa - 0.1% | ||||
Iowa Fin. Auth. Health Facilities Rev. Series 2008 A, 5.625% 8/15/37 (Assured Guaranty Corp. Insured) | 4,800 | 5,480 | ||
Kansas - 0.6% | ||||
Kansas Dev. Fin. Agcy. (Adventist Health Sys./Sunbelt Obligated Group Proj.) Series 2009 C, 5.75% 11/15/38 | 10,600 | 12,287 | ||
Leavenworth County Unified School District #453 Gen. Oblig. Series 2009 A, 5.25% 9/1/24 (Pre-Refunded to 9/1/19 @ 100) | 1,575 | 1,857 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Kansas - continued | ||||
Overland Park Sales Tax Spl. Oblig. Rev. Series 2012, 4.375% 12/15/23 | $ 4,700 | $ 4,763 | ||
Topeka Combined Util. Impt. Rev. Series 2005 A: | ||||
6% 8/1/20 (Pre-Refunded to 8/1/15 @ 101) | 1,200 | 1,252 | ||
6% 8/1/25 (Pre-Refunded to 8/1/15 @ 101) | 1,100 | 1,147 | ||
6% 8/1/27 (Pre-Refunded to 8/1/15 @ 101) | 1,235 | 1,288 | ||
Wichita Hosp. Facilities Rev. (Via Christi Health Sys., Inc. Proj.) Series 2009 X: | ||||
4% 11/15/18 (Escrowed to Maturity) | 1,300 | 1,444 | ||
5% 11/15/17 (Escrowed to Maturity) | 2,500 | 2,799 | ||
Wyandotte County/Kansas City Unified Govt. Util. Sys. Rev. Series 2012 A: | ||||
5% 9/1/23 | 1,860 | 2,160 | ||
5% 9/1/25 | 4,000 | 4,614 | ||
| 33,611 | |||
Kentucky - 0.7% | ||||
Ashland Med. Ctr. Rev. (Ashland Hosp. Corp. d/b/a/ King's Daughters Med. Ctr. Proj.) Series 2010 B, 5% 2/1/22 | 1,355 | 1,494 | ||
Kentucky Econ. Dev. Fin. Auth. Hosp. Rev.: | ||||
(Baptist Healthcare Sys. Proj.) Series A: | ||||
5% 8/15/16 | 9,410 | 10,003 | ||
5% 8/15/17 | 3,650 | 3,990 | ||
(St. Elizabeth Med. Ctr., Inc. Proj.) Series 2009 A, 5.5% 5/1/39 | 4,000 | 4,546 | ||
Kentucky Econ. Dev. Fin. Auth. Rev. (Ashland Hosp. Corp. d/b/a King's Daughters Med. Ctr. Proj.) Series 2010 A, 5% 2/1/30 | 5,000 | 5,348 | ||
Louisville & Jefferson County Series 2013 A: | ||||
5.5% 10/1/33 | 2,900 | 3,369 | ||
5.75% 10/1/38 | 7,410 | 8,661 | ||
Pikeville Hosp. Rev. (Pikeville Med. Ctr., Inc. Proj.) Series 2011, 6.5% 3/1/41 | 3,000 | 3,545 | ||
| 40,956 | |||
Louisiana - 1.0% | ||||
Louisiana Pub. Facilities Auth. Hosp. Rev. (Franciscan Missionaries of Our Lady Health Sys. Proj.) Series 2009, 6.75% 7/1/39 | 2,100 | 2,474 | ||
Louisiana Pub. Facilities Auth. Rev. (Nineteenth Judicial District Court Proj.) Series 2007: | ||||
5.375% 6/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000 | 1,097 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Louisiana - continued | ||||
Louisiana Pub. Facilities Auth. Rev. (Nineteenth Judicial District Court Proj.) Series 2007: - continued | ||||
5.375% 6/1/32 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 1,900 | $ 2,051 | ||
5.5% 6/1/41 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 15,500 | 16,759 | ||
New Orleans Aviation Board Rev.: | ||||
Series 2007 A, 5% 1/1/17 (FSA Insured) (g) | 1,420 | 1,529 | ||
Series 2007 B2, 5% 1/1/16 (FSA Insured) (g) | 1,000 | 1,045 | ||
New Orleans Gen. Oblig.: | ||||
Series 2005: | ||||
5% 12/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,690 | 4,839 | ||
5.25% 12/1/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,450 | 3,581 | ||
Series 2012: | ||||
5% 12/1/22 | 8,645 | 9,679 | ||
5% 12/1/30 | 2,000 | 2,210 | ||
5% 12/1/31 | 1,000 | 1,101 | ||
5% 12/1/32 | 1,500 | 1,647 | ||
Tobacco Settlement Fing. Corp. Series 2013 A: | ||||
5% 5/15/22 | 5,000 | 5,887 | ||
5% 5/15/23 | 1,300 | 1,530 | ||
| 55,429 | |||
Maine - 0.2% | ||||
Maine Tpk. Auth. Tpk. Rev.: | ||||
Series 2007, 5.25% 7/1/37 (AMBAC Insured) | 9,060 | 9,784 | ||
Series 2009, 6% 7/1/38 | 2,700 | 3,142 | ||
| 12,926 | |||
Maryland - 0.6% | ||||
Baltimore Convention Ctr. Hotel Rev. Series A, 5.25% 9/1/39 (XL Cap. Assurance, Inc. Insured) | 4,710 | 4,887 | ||
Baltimore Proj. Rev. (Wtr. Proj.) Series 2009 A, 5.75% 7/1/39 (Pre-Refunded to 7/1/19 @ 100) | 1,250 | 1,493 | ||
Maryland Econ. Dev. Corp. Student Hsg. Rev. (Univ. of Maryland, Baltimore County Student Hsg. Proj.) Series 2006: | ||||
5% 6/1/16 (CIFG North America Insured) | 1,000 | 1,054 | ||
5% 6/1/19 (CIFG North America Insured) | 1,500 | 1,587 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Maryland - continued | ||||
Maryland Health & Higher Edl. Facilities Auth. Rev.: | ||||
(Anne Arundel Health Sys. Proj.) Series 2010, 5% 7/1/40 | $ 2,000 | $ 2,156 | ||
(Doctors Cmnty. Hosp. Proj.) Series 2010, 5.75% 7/1/38 | 5,090 | 5,452 | ||
(Univ. of Maryland Med. Sys. Proj.) Series 2010, 5.125% 7/1/39 | 4,400 | 4,746 | ||
(Upper Chesapeake Hosp. Proj.) Series 2008 C, 6% 1/1/38 | 3,000 | 3,327 | ||
(Washington County Health Sys. Proj.) Series 2008: | ||||
6% 1/1/28 | 5,000 | 5,516 | ||
6% 1/1/43 | 1,500 | 1,632 | ||
Series 2010, 5.625% 7/1/30 | 2,865 | 3,103 | ||
| 34,953 | |||
Massachusetts - 0.8% | ||||
Massachusetts Bay Trans. Auth. Series 1992 B, 6.2% 3/1/16 | 1,375 | 1,413 | ||
Massachusetts Dev. Fin. Agcy. Rev.: | ||||
(Boston Univ. Proj.) Series U4, 5.7% 10/1/40 | 7,500 | 8,744 | ||
Series 2011 I, 6.75% 1/1/36 | 3,000 | 3,581 | ||
Series 2013 B1, 4.75% 11/15/20 (b) | 6,660 | 6,672 | ||
5.5% 7/1/44 | 6,300 | 6,848 | ||
Massachusetts Gen. Oblig. Series 2007 C, 5.25% 8/1/24 (Pre-Refunded to 8/1/17 @ 100) | 9,000 | 10,039 | ||
Massachusetts Health & Edl. Facilities Auth. Rev.: | ||||
(Blood Research Institute Proj.) Series A, 6.5% 2/1/22 (h) | 2,400 | 2,410 | ||
(South Shore Hosp. Proj.) Series F, 5.75% 7/1/29 | 4,455 | 4,462 | ||
Massachusetts School Bldg. Auth. Dedicated Sales Tax Rev. Series 2007 A, 5% 8/15/22 (AMBAC Insured) | 2,900 | 3,211 | ||
| 47,380 | |||
Michigan - 1.8% | ||||
Detroit School District Series 2012 A, 5% 5/1/23 | 4,000 | 4,533 | ||
Detroit Swr. Disp. Rev.: | ||||
Series 2001 E, 5.75% 7/1/31 (Berkshire Hathaway Assurance Corp. Insured) (FGIC Insured) | 4,000 | 4,437 | ||
Series 2006 B, 5% 7/1/36 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 20,700 | 21,020 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Michigan - continued | ||||
Detroit Wtr. Supply Sys. Rev.: | ||||
Series 2004 A: | ||||
5.25% 7/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 2,380 | $ 2,436 | ||
5.25% 7/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,685 | 1,786 | ||
Series 2006 B, 7% 7/1/36 (FSA Insured) | 4,900 | 5,548 | ||
DeWitt Pub. Schools Gen. Oblig. 5% 5/1/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,650 | 1,834 | ||
Lansing Board of Wtr. & Lt. Util. Rev. 5.5% 7/1/41 | 2,500 | 2,963 | ||
Lapeer Cmnty. Schools Series 2007, 5% 5/1/33 (FSA Insured) | 2,600 | 2,829 | ||
Michigan Fin. Auth. Rev.: | ||||
Series 2012 A: | ||||
4.125% 6/1/32 | 6,325 | 6,251 | ||
5% 6/1/20 | 2,050 | 2,332 | ||
5% 6/1/27 | 3,000 | 3,240 | ||
5% 6/1/39 | 6,350 | 6,617 | ||
Series 2012, 5% 11/15/42 | 11,825 | 12,839 | ||
Michigan Hosp. Fin. Auth. Rev.: | ||||
(McLaren Health Care Corp. Proj.) Series 2008 A, 5.75% 5/15/38 | 3,000 | 3,368 | ||
(Trinity Health Sys. Proj.): | ||||
Series 2008 A, 6.5% 12/1/33 | 4,000 | 4,691 | ||
5% 12/1/26 | 1,115 | 1,207 | ||
Series 2012 A: | ||||
5% 6/1/23 | 2,395 | 2,842 | ||
5% 6/1/26 | 2,000 | 2,318 | ||
Portage Pub. Schools 5% 5/1/21 (FSA Insured) | 6,300 | 7,048 | ||
Royal Oak Hosp. Fin. Auth. Hosp. Rev. (William Beaumont Hosp. Proj.) Series 2009 V, 8.25% 9/1/39 (Pre-Refunded to 9/1/18 @ 100) | 3,400 | 4,281 | ||
Three Rivers Cmnty. Schools 5% 5/1/21 (FSA Insured) | 1,710 | 1,901 | ||
| 106,321 | |||
Minnesota - 0.8% | ||||
Maple Grove Health Care Sys. Rev.: | ||||
(Maple Grove Hosp. Corp. Proj.) Series 2007, 5.25% 5/1/28 | 3,500 | 3,758 | ||
5% 5/1/20 | 1,000 | 1,078 | ||
Minnesota 911 Rev. (Pub. Safety Radio Communications Sys. Proj.) Series 2009, 5% 6/1/20 (Assured Guaranty Corp. Insured) | 3,835 | 4,446 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Minnesota - continued | ||||
Minnesota Agric. & Econ. Dev. Board Rev. (Health Care Sys. Proj.) Series 2000 A, 6.375% 11/15/29 | $ 210 | $ 211 | ||
St. Louis Park Health Care Facilities Rev. (Park Nicollet Health Svcs. Proj.): | ||||
Series 2008 C, 5.5% 7/1/18 | 5,600 | 6,346 | ||
Series 2009, 5.75% 7/1/39 | 20,700 | 23,510 | ||
St. Paul Hsg. & Redev. Auth. Health Care Facilities Rev. (HealthPartners Oblig. Group Proj.): | ||||
Series 2006: | ||||
5.25% 5/15/18 | 1,650 | 1,783 | ||
5.25% 5/15/23 | 2,000 | 2,161 | ||
5.25% 5/15/36 | 4,250 | 4,513 | ||
| 47,806 | |||
Missouri - 0.2% | ||||
Kansas City Spl. Oblig.: | ||||
5% 9/1/26 | 1,185 | 1,340 | ||
5% 9/1/27 | 490 | 553 | ||
5% 9/1/28 | 1,000 | 1,124 | ||
5% 9/1/29 | 1,000 | 1,119 | ||
5% 9/1/30 | 1,390 | 1,549 | ||
Metropolitan St. Louis Swr. District Wastewtr. Sys. Rev. Series 2008 A, 5.75% 5/1/38 | 1,000 | 1,107 | ||
Missouri Dev. Fin. Board Infrastructure Facilities Rev. (City of Branson-Branson Landing Proj.) Series 2005 A, 6% 6/1/20 | 1,960 | 2,185 | ||
| 8,977 | |||
Nebraska - 0.4% | ||||
Central Plains Energy Proj. Rev. (Nebraska Gas Proj.) Series 2007 B, 0.6498% 12/1/17 (d) | 7,900 | 7,711 | ||
Douglas County Hosp. Auth. #2 Health Facilities Rev.: | ||||
6% 8/15/23 | 1,210 | 1,348 | ||
6% 8/15/23 (Pre-Refunded to 8/15/17 @ 100) | 920 | 1,044 | ||
6% 8/15/28 | 1,980 | 2,204 | ||
6% 8/15/28 (Pre-Refunded to 8/15/17 @ 100) | 1,520 | 1,725 | ||
6.125% 8/15/31 | 1,275 | 1,416 | ||
6.125% 8/15/31 (Pre-Refunded to 8/15/17 @ 100) | 975 | 1,110 | ||
Nebraska Pub. Pwr. District Rev. Series 2012 C: | ||||
5% 1/1/23 (Pre-Refunded to 1/1/18 @ 100) | 2,250 | 2,522 | ||
5% 1/1/24 | 1,000 | 1,111 | ||
| 20,191 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Nevada - 0.2% | ||||
Clark County Wtr. Reclamation District Series 2009 A, 5.25% 7/1/29 (Berkshire Hathaway Assurance Corp. Insured) | $ 4,300 | $ 4,943 | ||
Las Vegas Valley Wtr. District Wtr. Impt. Gen. Oblig. Series 2011 C, 5% 6/1/24 | 5,415 | 6,337 | ||
| 11,280 | |||
New Hampshire - 0.6% | ||||
New Hampshire Bus. Fin. Auth. Rev. Series 2009 A, 6.125% 10/1/39 | 9,300 | 10,508 | ||
New Hampshire Health & Ed. Facilities Auth. Rev.: | ||||
(Dartmouth College Proj.) Series 2009, 5.25% 6/1/39 | 4,000 | 4,531 | ||
Series 2007 A, 5% 10/1/37 | 6,100 | 6,522 | ||
Series 2012: | ||||
4% 7/1/32 | 2,370 | 2,341 | ||
5% 7/1/24 | 1,000 | 1,116 | ||
5% 7/1/25 | 1,185 | 1,318 | ||
New Hampshire Tpk. Sys. Rev. Series 2012 B: | ||||
5% 10/1/18 | 4,315 | 4,889 | ||
5% 2/1/19 | 2,000 | 2,271 | ||
5% 2/1/24 | 1,775 | 2,075 | ||
| 35,571 | |||
New Jersey - 3.2% | ||||
New Jersey Econ. Dev. Auth. Rev.: | ||||
Series 2009 AA, 5.5% 12/15/29 | 4,000 | 4,480 | ||
Series 2012, 5% 6/15/21 | 4,600 | 5,283 | ||
Series 2013 NN, 5% 3/1/27 | 69,700 | 77,938 | ||
Series 2013: | ||||
5% 3/1/23 | 12,200 | 13,867 | ||
5% 3/1/24 | 17,000 | 19,271 | ||
5% 3/1/25 | 1,900 | 2,144 | ||
New Jersey Health Care Facilities Fing. Auth. Rev. Series 2008, 6.625% 7/1/38 | 9,930 | 11,162 | ||
New Jersey Trans. Trust Fund Auth.: | ||||
Series 2001 A, 6% 6/15/35 | 3,900 | 4,726 | ||
Series 2005 B, 5.5% 12/15/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 5,908 | ||
Series 2014 AA: | ||||
5% 6/15/23 | 20,645 | 23,621 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New Jersey - continued | ||||
New Jersey Trans. Trust Fund Auth.: - continued | ||||
Series 2014 AA: - continued | ||||
5% 6/15/24 | $ 10,000 | $ 11,509 | ||
Union County Impt. Auth. (Juvenile Detention Ctr. Facility Proj.) Series 2005, 5.5% 5/1/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,560 | 5,622 | ||
| 185,531 | |||
New Mexico - 0.1% | ||||
New Mexico Edl. Assistance Foundation Series 2010 A1: | ||||
4% 12/1/17 | 5,000 | 5,430 | ||
5% 12/1/18 | 2,000 | 2,272 | ||
| 7,702 | |||
New York - 7.5% | ||||
Albany Indl. Dev. Agcy. Civic Facility Rev. (St. Peters Hosp. Proj.) Series 2008 A: | ||||
5.25% 11/15/16 | 1,955 | 2,094 | ||
5.25% 11/15/17 (St. Peters Hosp. NY Insured) | 1,500 | 1,645 | ||
Hudson Yards Infrastructure Corp. New York Rev. Series 2012 A, 5.75% 2/15/47 | 14,600 | 16,869 | ||
Long Island Pwr. Auth. Elec. Sys. Rev. Series 2012 A, 5% 9/1/42 | 13,000 | 14,299 | ||
New York City Gen. Oblig.: | ||||
Series 2003 A, 5.5% 8/1/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5 | 5 | ||
Series 2008 A1, 5.25% 8/15/27 | 9,940 | 11,304 | ||
Series 2008 D1, 5.125% 12/1/22 | 5,000 | 5,602 | ||
Series 2009 I1, 5.625% 4/1/29 | 3,600 | 4,225 | ||
Series 2012 A1, 5% 8/1/24 | 7,400 | 8,760 | ||
Series 2012 G1, 5% 4/1/25 | 13,700 | 16,172 | ||
New York City Indl. Dev. Agcy. Civic Facility Rev. (Polytechnic Univ. NY Proj.) 5.25% 11/1/27 (ACA Finl. Guaranty Corp. Insured) | 3,100 | 3,435 | ||
New York City Indl. Dev. Agcy. Rev.: | ||||
(Queens Baseball Stadium Proj.) 5% 1/1/19 (AMBAC Insured) | 3,735 | 4,035 | ||
(Yankee Stadium Proj.) Series 2006, 5% 3/1/31 | 4,725 | 4,869 | ||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.: | ||||
Series 2009 A, 5.75% 6/15/40 | 1,500 | 1,710 | ||
Series 2009 EE, 5.25% 6/15/40 | 11,600 | 13,147 | ||
Series 2009 FF 2, 5.5% 6/15/40 | 17,800 | 20,459 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.: - continued | ||||
Series 2011 EE, 5.375% 6/15/43 | $ 42,080 | $ 49,100 | ||
Series 2012 EE, 5.25% 6/15/30 | 17,200 | 20,406 | ||
Series 2013 BB, 5% 6/15/47 | 8,985 | 10,044 | ||
New York City Transitional Fin. Auth. Bldg. Aid Rev.: | ||||
Series 2009 S1: | ||||
5.5% 7/15/31 | 4,000 | 4,521 | ||
5.5% 7/15/38 | 1,600 | 1,802 | ||
5.625% 7/15/38 | 2,825 | 3,195 | ||
Series 2009 S3: | ||||
5.25% 1/15/34 | 21,000 | 23,463 | ||
5.25% 1/15/39 | 3,400 | 3,788 | ||
5.375% 1/15/34 | 2,750 | 3,098 | ||
Series 2009 S4: | ||||
5.5% 1/15/39 | 8,800 | 9,905 | ||
5.75% 1/15/39 | 4,100 | 4,663 | ||
New York Dorm. Auth. Mental Health Svcs. Facilities Impt. Rev.: | ||||
(State Univ. Proj.) Series 2012 A: | ||||
5% 5/15/21 | 10,710 | 12,725 | ||
5% 5/15/22 | 4,300 | 5,159 | ||
Series 2012 A: | ||||
4% 5/15/21 | 3,500 | 3,949 | ||
5% 5/15/23 | 5,600 | 6,698 | ||
New York Dorm. Auth. Personal Income Tax Rev.: | ||||
(Ed. Proj.) Series 2008 B, 5.75% 3/15/36 | 3,400 | 3,920 | ||
Series 2014 A: | ||||
5% 2/15/39 | 3,995 | 4,412 | ||
5% 2/15/39 (Pre-Refunded to 2/15/19 @ 100) | 5 | 6 | ||
New York Dorm. Auth. Revs.: | ||||
(New York Univ. Hosp. Ctr. Proj.) Series 2007 B, 5.25% 7/1/24 (Pre-Refunded to 7/1/17 @ 100) | 1,800 | 1,961 | ||
(State Univ. Edl. Facilities Proj.) Series A, 5.875% 5/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,865 | 7,478 | ||
Series 2010 A, 5% 7/1/26 | 4,000 | 4,596 | ||
New York Metropolitan Trans. Auth. Dedicated Tax Fund Rev. Series 2009 B, 5% 11/15/34 | 11,800 | 13,437 | ||
New York Metropolitan Trans. Auth. Rev.: | ||||
Series 2008 A, 5.25% 11/15/36 | 26,700 | 29,506 | ||
Series 2010 D, 5.25% 11/15/40 | 6,600 | 7,396 | ||
Series 2012 D, 5% 11/15/25 | 25,900 | 30,737 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
New York - continued | ||||
New York Metropolitan Trans. Auth. Rev.: - continued | ||||
Series 2012 F, 5% 11/15/24 | $ 12,400 | $ 14,794 | ||
New York Thruway Auth. Personal Income Tax Rev. Series 2007 A, 5.25% 3/15/25 | 3,500 | 3,889 | ||
Niagara Falls City Niagara County Pub. Impt. 7.5% 3/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 460 | 522 | ||
Rockland County Gen. Oblig. Series 2014 A, 4% 3/1/24 (FSA Insured) | 1,375 | 1,498 | ||
Tobacco Settlement Fing. Corp. Series 2013 B: | ||||
5% 6/1/20 | 11,000 | 11,648 | ||
5% 6/1/21 | 4,600 | 4,872 | ||
| 431,818 | |||
North Carolina - 0.8% | ||||
Charlotte Int'l. Arpt. Rev. (Charlotte Douglas Int'l. Arpt. Proj.) Series 2010 B, 5.5% 7/1/23 (g) | 1,200 | 1,409 | ||
Charlotte-Mecklenburg Hosp. Auth. Health Care Sys. Rev. Series A, 5% 1/15/20 (FSA Insured) | 960 | 1,038 | ||
Nash Health Care Sys. Health Care Facilities Rev. Series 2012, 5% 11/1/41 | 4,625 | 5,041 | ||
North Carolina Eastern Muni. Pwr. Agcy. Pwr. Sys. Rev. Series 2009 B, 5% 1/1/26 | 11,600 | 13,093 | ||
North Carolina Med. Care Cmnty. Health: | ||||
(Memorial Mission Hosp. Proj.) 5% 10/1/21 | 5,690 | 6,308 | ||
Series 2012 A, 5% 11/15/26 | 1,295 | 1,501 | ||
North Carolina Med. Care Commission Health Care Facilities Rev. (Rex Healthcare Proj.) Series 2010 A, 5% 7/1/30 | 7,830 | 8,633 | ||
North Carolina Muni. Pwr. Agcy. #1 Catawba Elec. Rev.: | ||||
Series 2009 A, 5% 1/1/30 | 2,300 | 2,596 | ||
Series 2010 B, 5% 1/1/20 | 6,700 | 7,767 | ||
| 47,386 | |||
North Dakota - 0.2% | ||||
Cass County Health Care Facilities Rev. (Essentia Health Obligated Group Proj.) Series 2008, 5.125% 2/15/37 (Assured Guaranty Corp. Insured) | 4,600 | 4,974 | ||
Fargo Health Sys. Rev. (Sanford Proj.) Series 2011, 6% 11/1/28 | 1,500 | 1,806 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
North Dakota - continued | ||||
Ward County Health Care Facility Rev. (Trinity Med. Ctr. Proj.): | ||||
5.125% 7/1/19 | $ 2,765 | $ 2,864 | ||
5.25% 7/1/15 | 1,300 | 1,326 | ||
| 10,970 | |||
Ohio - 1.7% | ||||
American Muni. Pwr., Inc. Rev.: | ||||
(Freemont Energy Ctr. Proj.) Series 2012 B, 5% 2/15/42 | 2,500 | 2,747 | ||
(Prairie State Energy Campus Proj.) Series 2015, 5% 2/15/28 (c) | 12,100 | 13,922 | ||
Buckeye Tobacco Settlement Fing. Auth. Series 2007 A1: | ||||
5% 6/1/16 | 4,400 | 4,654 | ||
5% 6/1/17 | 5,045 | 5,501 | ||
Cleveland Parking Facilities Rev.: | ||||
5.25% 9/15/18 (Escrowed to Maturity) | 640 | 737 | ||
5.25% 9/15/18 (FSA Insured) | 1,360 | 1,522 | ||
Franklin County Hosp. Rev. (Nationwide Children's Hosp. Proj.) Series 2009, 5.25% 11/1/40 | 1,500 | 1,676 | ||
Hamilton County Convention Facilities Auth. Rev. Series 2014, 5% 12/1/25 | 3,595 | 4,156 | ||
Lake County Hosp. Facilities Rev. (Lake Hosp. Sys., Inc. Proj.) Series 2008 C, 6% 8/15/43 | 5,000 | 5,639 | ||
Lucas County Hosp. Rev. (ProMedica Healthcare Oblig. Group Proj.) Series 2011 A, 6.5% 11/15/37 | 6,000 | 7,385 | ||
Muskingum County Hosp. Facilities (Genesis Healthcare Sys. Obligated Group Proj.) Series 2013, 5% 2/15/48 | 11,600 | 11,855 | ||
Ohio Air Quality Dev. Auth. Rev.: | ||||
Bonds (First Energy Nuclear Generation Proj.) Series 2006 A, 3.75%, tender 12/3/18 (d) | 18,800 | 19,864 | ||
Series 2009 C, 5.625% 6/1/18 | 2,000 | 2,227 | ||
Ohio Higher Edl. Facility Commission Rev. (Cleveland Clinic Foundation Proj.) Series 2008 A, 5.5% 1/1/43 | 1,500 | 1,649 | ||
Ohio Tpk. Commission Tpk. Rev. (Infastructure Proj.) Series 2005 A, 0% 2/15/43 | 15,000 | 4,247 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds (FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (d) | 8,500 | 9,034 | ||
| 96,815 | |||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Oklahoma - 0.6% | ||||
Oklahoma City Pub. Property Auth. Hotel Tax Rev.: | ||||
5.5% 10/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 2,845 | $ 2,949 | ||
5.5% 10/1/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,005 | 3,114 | ||
5.5% 10/1/24 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,175 | 3,290 | ||
Oklahoma Dev. Fin. Auth. Health Sys. Rev. (Integris Baptist Med. Ctr. Proj.) Series C, 5.5% 8/15/20 | 5,000 | 5,711 | ||
Oklahoma Dev. Fin. Auth. Rev.: | ||||
(Saint John Health Sys. Proj.) Series 2012, 5% 2/15/42 | 9,640 | 10,619 | ||
Series 2012: | ||||
5% 2/15/21 | 2,200 | 2,568 | ||
5% 2/15/24 | 4,190 | 4,859 | ||
Tulsa County Indl. Auth. Health Care Rev. 5% 12/15/19 | 1,680 | 1,813 | ||
| 34,923 | |||
Oregon - 0.4% | ||||
Clackamas County School District #7J: | ||||
5.25% 6/1/23 | 2,000 | 2,479 | ||
5.25% 6/1/24 (FSA Insured) | 2,605 | 3,276 | ||
Multnomah County Hosp. Facilities Auth. Rev. (Adventist Health Sys./West Proj.) Series 2009 A, 5.125% 9/1/40 | 2,500 | 2,706 | ||
Oregon Facilities Auth. Rev. (Legacy Health Sys. Proj.) Series 2009 A, 5% 3/15/30 | 1,000 | 1,093 | ||
Oregon State Dept. of Administrative Svcs. Lottery Rev. Series 2011 A, 5.25% 4/1/31 | 5,600 | 6,526 | ||
Port Morrow Poll. Cont. Rev. (Portland Gen. Elec. Co. Proj.) Series 1998 A, 5% 5/1/33 | 5,000 | 5,501 | ||
Washington County School District #15: | ||||
5.5% 6/15/20 (FSA Insured) | 1,770 | 2,128 | ||
5.5% 6/15/21 (FSA Insured) | 1,060 | 1,300 | ||
| 25,009 | |||
Pennsylvania - 1.9% | ||||
Allegheny County Arpt. Auth. Rev. (Pittsburgh Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (g) | 3,000 | 3,132 | ||
Allegheny County Hosp. Dev. Auth. Rev. (Univ. of Pittsburgh Med. Ctr. Proj.): | ||||
Series 2008 B, 5% 6/15/16 | 1,365 | 1,453 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Allegheny County Hosp. Dev. Auth. Rev. (Univ. of Pittsburgh Med. Ctr. Proj.): - continued | ||||
Series 2009 A, 5.625% 8/15/39 | $ 6,225 | $ 7,064 | ||
Annville-Cleona School District: | ||||
5.5% 3/1/24 | 390 | 393 | ||
5.5% 3/1/24 (Pre-Refunded to 3/1/15 @ 100) | 960 | 968 | ||
5.5% 3/1/25 | 405 | 408 | ||
5.5% 3/1/25 (Pre-Refunded to 3/1/15 @ 100) | 995 | 1,003 | ||
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2005 A, 3.375%, tender 7/1/15 (d) | 7,800 | 7,899 | ||
Centre County Hosp. Auth. Rev. (Mount Nittany Med. Ctr. Proj.) Series 2011, 7% 11/15/46 | 2,600 | 3,115 | ||
Econ. Dev. Fin. Auth. Unemployment Compensation Rev. Series 2012 B: | ||||
5% 7/1/21 | 5,300 | 5,917 | ||
5% 1/1/23 | 2,000 | 2,091 | ||
Mifflin County School District Series 2007, 7.75% 9/1/30 (XL Cap. Assurance, Inc. Insured) | 3,400 | 3,918 | ||
Monroeville Fin. Auth. UPMC Rev. Series 2012, 5% 2/15/25 | 4,680 | 5,663 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.): | ||||
Series 1993 A, 6% 6/1/22 (AMBAC Insured) | 2,000 | 2,409 | ||
Series 2012 A, 5% 6/1/27 | 4,105 | 4,632 | ||
Montgomery County Higher Ed. & Health Auth. Rev. Series 2014 A: | ||||
5% 10/1/21 | 1,320 | 1,498 | ||
5% 10/1/22 | 1,380 | 1,564 | ||
5% 10/1/24 | 1,165 | 1,322 | ||
Pennsylvania Convention Ctr. Auth. Rev. Series A, 6.7% 9/1/16 (Escrowed to Maturity) | 600 | 640 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev. (Univ. of Pennsylvania Health Sys. Proj.): | ||||
Series 2009 A, 5.25% 8/15/21 | 2,900 | 3,363 | ||
Series A, 5% 8/15/16 | 3,600 | 3,701 | ||
Pennsylvania Tpk. Commission Tpk. Rev. Series 2009 D, 5.5% 12/1/41 | 12,600 | 14,123 | ||
Philadelphia Gas Works Rev.: | ||||
(1975 Gen. Ordinance Proj.) Seventeenth Series, 5.375% 7/1/20 (FSA Insured) | 4,000 | 4,011 | ||
(1998 Gen. Ordinance Proj.): | ||||
Fifth Series A1, 5% 9/1/33 (FSA Insured) | 1,095 | 1,097 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Pennsylvania - continued | ||||
Philadelphia Gas Works Rev.: - continued | ||||
(1998 Gen. Ordinance Proj.): - continued | ||||
Ninth Series, 5.25% 8/1/40 | $ 3,750 | $ 4,248 | ||
Seventh Series, 5% 10/1/37 (AMBAC Insured) | 8,900 | 9,639 | ||
Philadelphia Gen. Oblig.: | ||||
Series 2008 A, 5.25% 12/15/32 (FSA Insured) | 2,500 | 2,810 | ||
Series 2008 B, 7.125% 7/15/38 (Pre-Refunded to 7/15/16 @ 100) | 3,200 | 3,526 | ||
Philadelphia Redev. Auth. Rev. (Philadelphia Neighborhood Transformation Initiative Proj.) Series 2005 C, 5% 4/15/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 3,022 | ||
Philadelphia School District: | ||||
Series 2005 A, 5% 8/1/22 | 1,600 | 1,635 | ||
5% 8/1/22 (Pre-Refunded to 8/1/15 @ 100) | 75 | 77 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2011: | ||||
5% 6/1/22 | 1,000 | 1,162 | ||
5% 6/1/23 | 2,500 | 2,888 | ||
| 110,391 | |||
South Carolina - 2.0% | ||||
Greenwood Fifty School Facilities Installment: | ||||
5% 12/1/18 (Assured Guaranty Corp. Insured) | 3,930 | 4,401 | ||
5% 12/1/19 (Assured Guaranty Corp. Insured) | 2,375 | 2,659 | ||
Lexington County Health Svcs. District, Inc. Hosp. Rev.: | ||||
5% 11/1/18 | 1,090 | 1,219 | ||
5% 11/1/19 | 1,000 | 1,118 | ||
Lexington One School Facilities Corp. Rev. (Lexington County School District No. 1 Proj.) 5.25% 12/1/18 (Pre-Refunded to 12/1/15 @ 100) | 1,540 | 1,610 | ||
Richland County Hosp. Facilities Rev. (Cmnty. Provider Pooled Ln. Prog.) Series A, 7.125% 7/1/17 (Escrowed to Maturity) | 385 | 409 | ||
South Carolina Jobs-Econ. Dev. Auth. Econ. Dev. Rev. Series 2013, 5% 11/1/27 | 7,700 | 8,824 | ||
South Carolina Jobs-Econ. Dev. Auth. Health Facilities Rev. (Bishop Gadsden Proj.): | ||||
5% 4/1/15 | 1,000 | 1,007 | ||
5% 4/1/24 | 4,000 | 4,140 | ||
South Carolina Pub. Svc. Auth. Rev.: | ||||
(Santee Cooper Proj.) Series 2009 B: | ||||
5.25% 1/1/34 | 6,000 | 6,739 | ||
5.25% 1/1/39 | 2,800 | 3,120 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
South Carolina - continued | ||||
South Carolina Pub. Svc. Auth. Rev.: - continued | ||||
Series 2005 B, 5% 1/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | $ 2,500 | $ 2,614 | ||
Series 2012 B, 5% 12/1/20 | 1,500 | 1,766 | ||
Series 2013 E, 5.5% 12/1/53 | 34,335 | 39,434 | ||
Series 2014 A: | ||||
5% 12/1/49 | 6,500 | 7,270 | ||
5.5% 12/1/54 | 12,690 | 14,511 | ||
Series A, 5% 1/1/36 (Pre-Refunded to 1/1/16 @ 100) | 5,000 | 5,234 | ||
Univ. of South Carolina Athletic Facilities Rev. Series 2008 A, 5.5% 5/1/38 | 6,900 | 7,824 | ||
| 113,899 | |||
South Dakota - 0.1% | ||||
South Dakota Health & Edl. Facilities Auth. Rev. (Reg'l. Health Proj.) Series 2010: | ||||
4.625% 9/1/27 | 1,000 | 1,052 | ||
5% 9/1/28 | 3,000 | 3,368 | ||
| 4,420 | |||
Tennessee - 0.4% | ||||
Jackson Hosp. Rev. (Jackson-Madison County Gen. Hosp. Proj.) Series 2008, 5.75% 4/1/41 | 6,600 | 7,330 | ||
Knox County Health Edl. & Hsg. Facilities Board Rev. (Univ. Health Sys. Proj.) 5% 4/1/15 | 5,245 | 5,292 | ||
Memphis-Shelby County Arpt. Auth. Arpt. Rev. Series 2010 B: | ||||
5.75% 7/1/23 (g) | 5,820 | 6,846 | ||
5.75% 7/1/24 (g) | 2,400 | 2,822 | ||
Sullivan County Health, Ed. and Hsg. Board (Wellmont Health Sys. Proj.) Series 2006 C, 5.25% 9/1/36 | 2,180 | 2,288 | ||
| 24,578 | |||
Texas - 9.9% | ||||
Aledo Independent School District (School Bldg. Proj.) Series 2006 A, 5% 2/15/43 | 6,800 | 7,339 | ||
Argyle Independent School District 5.25% 8/15/40 (FSA Insured) | 125 | 125 | ||
Austin Arpt. Sys. Rev. Series 2014: | ||||
5% 11/15/26 (c)(g) | 1,000 | 1,186 | ||
5% 11/15/27 (c)(g) | 1,250 | 1,474 | ||
5% 11/15/28 (c)(g) | 1,000 | 1,172 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Austin Arpt. Sys. Rev. Series 2014: - continued | ||||
5% 11/15/44 (c)(g) | $ 6,900 | $ 7,683 | ||
Austin Cmnty. College District Pub. Facilities Lease Rev. (Round Rock Campus Proj.) Series 2008, 5.25% 8/1/33 | 5,000 | 5,577 | ||
Austin Cmnty. College District Rev. (Convention Ctr. Proj.) Series 2002, 0% 2/1/22 (AMBAC Insured) | 2,900 | 2,429 | ||
Austin Elec. Util. Sys. Rev.: | ||||
0% 5/15/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 9,200 | 8,986 | ||
0% 5/15/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 4,792 | ||
Austin Wtr. & Wastewtr. Sys. Rev. Series 2005 A, 5% 5/15/31 | 220 | 223 | ||
Bastrop Independent School District Series 2007: | ||||
5.25% 2/15/37 | 2,700 | 2,903 | ||
5.25% 2/15/42 | 5,000 | 5,366 | ||
Canyon Reg'l. Wtr. Auth. Contract Rev. (Wells Ranch Proj.): | ||||
5% 8/1/19 (AMBAC Insured) | 1,695 | 1,858 | ||
5% 8/1/20 (AMBAC Insured) | 1,780 | 1,951 | ||
Coppell Independent School District 0% 8/15/20 | 2,000 | 1,830 | ||
Corpus Christi Util. Sys. Rev.: | ||||
5% 7/15/21 | 4,500 | 5,316 | ||
5% 7/15/22 | 2,500 | 2,983 | ||
5% 7/15/24 | 2,255 | 2,611 | ||
5.25% 7/15/18 (FSA Insured) | 3,305 | 3,649 | ||
5.25% 7/15/19 (FSA Insured) | 4,000 | 4,411 | ||
Cypress-Fairbanks Independent School District Series A, 0% 2/15/16 | 9,700 | 9,671 | ||
Dallas Area Rapid Transit Sales Tax Rev. Series 2008, 5.25% 12/1/38 | 21,000 | 23,659 | ||
Dallas Fort Worth Int'l. Arpt. Rev.: | ||||
Series 2009 A, 5% 11/1/23 | 1,250 | 1,347 | ||
Series 2010 A, 5% 11/1/42 | 14,800 | 16,353 | ||
Dallas Independent School District Series 2008, 6.375% 2/15/34 (Pre-Refunded to 2/15/18 @ 100) | 1,800 | 2,102 | ||
DeSoto Independent School District 0% 8/15/20 | 3,335 | 3,026 | ||
Freer Independent School District: | ||||
5.25% 8/15/37 | 2,230 | 2,499 | ||
5.25% 8/15/37 (Pre-Refunded to 8/15/17 @ 100) | 1,985 | 2,215 | ||
Gainesville Independent School District: | ||||
5.25% 2/15/36 (Pre-Refunded to 2/15/16 @ 100) | 1,555 | 1,642 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Gainesville Independent School District: - continued | ||||
5.25% 2/15/36 (Pre-Refunded to 2/15/16 @ 100) | $ 345 | $ 364 | ||
Grand Parkway Trans. Corp. Series 2013 B: | ||||
5% 4/1/53 | 1,290 | 1,427 | ||
5.25% 10/1/51 | 52,500 | 59,277 | ||
5.5% 4/1/53 | 5,440 | 5,998 | ||
Grand Prairie Independent School District 0% 2/15/16 | 3,775 | 3,764 | ||
Harris County Cultural Ed. Facilities Fin. Corp. Med. Facilities Rev. (Baylor College of Medicine Proj.) Series 2012 A, 5% 11/15/37 | 14,050 | 15,335 | ||
Harris County Gen. Oblig.: | ||||
(Road Proj.) Series 2008 B, 5.25% 8/15/47 | 25,440 | 27,830 | ||
Series 2002: | ||||
0% 8/15/25 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000 | 2,269 | ||
0% 8/15/28 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000 | 3,411 | ||
Houston Arpt. Sys. Rev. Series 2011 A: | ||||
5% 7/1/23 (g) | 3,000 | 3,472 | ||
5% 7/1/25 (g) | 1,500 | 1,722 | ||
Houston Independent School District Series 2005 A, 0% 2/15/16 | 5,500 | 5,478 | ||
Humble Independent School District: | ||||
Series 2000, 0% 2/15/16 | 3,000 | 2,996 | ||
Series 2005 B, 5.25% 2/15/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,995 | 2,005 | ||
Keller Independent School District Series 1996 A, 0% 8/15/17 | 2,000 | 1,957 | ||
Kermit Independent School District 5.25% 2/15/37 (Pre-Refunded to 2/15/17 @ 100) | 4,130 | 4,537 | ||
Kingsville Independent School District 5.25% 2/15/37 (Pre-Refunded to 2/15/17 @ 100) | 3,650 | 4,010 | ||
Liberty Hill Independent School District (School Bldg. Proj.) Series 2006, 5.25% 8/1/35 (Pre-Refunded to 2/1/16 @ 100) | 8,615 | 9,080 | ||
Lower Colorado River Auth. Rev.: | ||||
5.25% 5/15/18 (AMBAC Insured) | 40 | 40 | ||
5.75% 5/15/37 | 470 | 478 | ||
5.75% 5/15/37 (Pre-Refunded to 5/15/15 @ 100) | 130 | 133 | ||
5.75% 5/15/37 (Pre-Refunded to 5/15/15 @ 100) | 70 | 71 | ||
Mansfield Independent School District 5.5% 2/15/18 | 40 | 40 | ||
Midway Independent School District Series 2000, 0% 8/15/19 | 3,600 | 3,357 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
New Caney Independent School District Series 2007 A, 5.25% 2/15/37 | $ 2,680 | $ 2,911 | ||
North Forest Independent School District Series B, 5% 8/15/18 (FSA Insured) | 1,470 | 1,572 | ||
North Texas Muni. Wtr. District Wtr. Sys. Rev. Series 2006, 5% 9/1/35 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,000 | 4,268 | ||
North Texas Tollway Auth. Rev.: | ||||
Bonds Series 2008 E3, 5.75%, tender 1/1/16 (d) | 4,000 | 4,217 | ||
Series 2008 I, 0% 1/1/42 (Assured Guaranty Corp. Insured) (a) | 7,200 | 8,856 | ||
Series 2009 A, 6.25% 1/1/39 | 10,200 | 11,794 | ||
Series 2011 A: | ||||
5.5% 9/1/41 | 14,250 | 16,712 | ||
6% 9/1/41 | 6,200 | 7,560 | ||
Series 2011 D, 5% 9/1/28 | 13,000 | 15,153 | ||
Series 2014 A, 5% 1/1/25 | 5,000 | 5,965 | ||
6% 1/1/23 | 590 | 664 | ||
6% 1/1/23 (Pre-Refunded to 1/1/18 @ 100) | 4,210 | 4,836 | ||
6% 1/1/24 | 230 | 259 | ||
6% 1/1/24 (Pre-Refunded to 1/1/18 @ 100) | 1,770 | 2,033 | ||
Prosper Independent School District Series 2007, 5.375% 8/15/37 | 15,255 | 16,873 | ||
Rockdale Independent School District: | ||||
Series 2007 A, 5.25% 2/15/37 (Pre-Refunded to 2/15/16 @ 100) | 1,395 | 1,473 | ||
5.25% 2/15/37 | 3,705 | 3,879 | ||
San Antonio Arpt. Sys. Rev.: | ||||
5% 7/1/15 (FSA Insured) (g) | 2,510 | 2,564 | ||
5% 7/1/17 (FSA Insured) (g) | 2,765 | 3,032 | ||
5% 7/1/17 (FSA Insured) (g) | 2,385 | 2,608 | ||
5.25% 7/1/19 (FSA Insured) (g) | 2,635 | 2,877 | ||
5.25% 7/1/20 (FSA Insured) (g) | 3,215 | 3,516 | ||
5.25% 7/1/20 (FSA Insured) (g) | 2,775 | 3,035 | ||
San Antonio Elec. & Gas Sys. Rev.: | ||||
Series 2008, 5% 2/1/24 | 2,590 | 2,868 | ||
Series 2012, 5.25% 2/1/25 | 4,200 | 5,356 | ||
San Antonio Wtr. Sys. Rev. Series 2012, 5% 5/15/25 | 10,000 | 11,818 | ||
San Jacinto Cmnty. College District Series 2009, 5% 2/15/39 | 1,920 | 2,128 | ||
Snyder Independent School District: | ||||
5.25% 2/15/21 (Pre-Refunded to 2/15/15 @ 100) | 1,035 | 1,041 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Snyder Independent School District: - continued | ||||
5.25% 2/15/22 (Pre-Refunded to 2/15/15 @ 100) | $ 1,090 | $ 1,096 | ||
5.25% 2/15/30 (Pre-Refunded to 2/15/15 @ 100) | 1,800 | 1,810 | ||
Spring Branch Independent School District Series 2008, 5.25% 2/1/38 | 2,000 | 2,155 | ||
Tarrant County Cultural Ed. Facilities Fin. Corp. Hosp. Rev.: | ||||
(Baylor Health Care Sys. Proj.) Series 2009, 5.75% 11/15/24 | 6,900 | 8,021 | ||
(Hendrick Med. Ctr. Proj.) Series 2009 B: | ||||
5.25% 9/1/26 (Assured Guaranty Corp. Insured) | 1,785 | 2,014 | ||
5.25% 9/1/27 (Assured Guaranty Corp. Insured) | 2,375 | 2,676 | ||
(Scott & White Healthcare Proj.) Series 2013 A: | ||||
4% 8/15/43 | 2,900 | 2,961 | ||
5% 8/15/43 | 4,000 | 4,458 | ||
Texas Gen. Oblig.: | ||||
Series 2006 A, 5% 4/1/29 (Pre-Refunded to 4/1/17 @ 100) | 2,820 | 3,099 | ||
4.75% 4/1/35 (Pre-Refunded to 4/1/15 @ 100) | 190 | 192 | ||
5% 4/1/25 | 3,915 | 4,398 | ||
5% 4/1/25 (Pre-Refunded to 4/1/18 @ 100) | 385 | 435 | ||
5.75% 8/1/26 | 890 | 893 | ||
Texas Muni. Pwr. Agcy. Rev. 0% 9/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 18,715 | 18,503 | ||
Texas Private Activity Bond Surface Trans. Corp.: | ||||
(LBJ Infrastructure Group LLC IH-635 Managed Lanes Proj.) Series 2010, 7% 6/30/40 | 5,200 | 6,259 | ||
(NTE Mobility Partners LLC North Tarrant Express Managed Lanes Proj.) Series 2009, 6.875% 12/31/39 | 11,200 | 13,242 | ||
Series 2013, 6.75% 6/30/43 (g) | 12,600 | 15,339 | ||
Texas Trans. Commission Central Texas Tpk. Sys. Rev. Bonds Series 2012 B, 1.25%, tender 2/15/15 (d) | 3,200 | 3,203 | ||
Texas Trans. Commission State Hwy. Fund Rev. Series 2007: | ||||
5% 4/1/23 | 2,320 | 2,528 | ||
5% 4/1/25 | 3,400 | 3,699 | ||
5% 4/1/26 | 4,350 | 4,731 | ||
Trinity River Auth. Rev. (Tarrant County Wtr. Proj.) 5% 2/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 4,930 | 5,065 | ||
Univ. of Texas Board of Regents Sys. Rev.: | ||||
Series 2007 F, 4.75% 8/15/27 (Pre-Refunded to 2/15/17 @ 100) | 2,295 | 2,492 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Texas - continued | ||||
Univ. of Texas Board of Regents Sys. Rev.: - continued | ||||
4.75% 8/15/27 | $ 3,305 | $ 3,533 | ||
Waller Independent School District 5.5% 2/15/37 | 4,920 | 5,468 | ||
Weatherford Independent School District 0% 2/15/33 | 6,985 | 3,931 | ||
Wylie Independent School District 0% 8/15/20 | 20 | 15 | ||
| 567,513 | |||
Utah - 0.4% | ||||
Intermountain Pwr. Agcy. Pwr. Supply Rev. Series A, 6% 7/1/16 (Escrowed to Maturity) | 4,655 | 4,672 | ||
Salt Lake City Hosp. Rev. (Intermountain Health Care Hosp., Inc. Proj.) Series A, 8.125% 5/15/15 (Escrowed to Maturity) | 315 | 324 | ||
Utah Associated Muni. Pwr. Sys. Rev. (Payson Pwr. Proj.) 5% 9/1/22 | 3,180 | 3,731 | ||
Utah State Board of Regents Rev. Series 2011 B: | ||||
5% 8/1/24 | 2,670 | 3,115 | ||
5% 8/1/25 | 2,175 | 2,523 | ||
Utah Transit Auth. Sales Tax Rev. Series 2008 A, 5.25% 6/15/38 | 9,070 | 10,106 | ||
| 24,471 | |||
Virginia - 0.3% | ||||
Fredericksburg Econ. Dev. Auth. Rev. Series 2014, 5% 6/15/25 | 4,665 | 5,390 | ||
Virginia Small Bus. Fing. Auth. (95 Express Lane LLC Proj.) Series 2012: | ||||
5% 7/1/34 (g) | 6,000 | 6,336 | ||
5% 1/1/40 (g) | 4,200 | 4,381 | ||
| 16,107 | |||
Washington - 3.1% | ||||
Chelan County Pub. Util. District #1 Columbia River-Rock Island Hydro-Elec. Sys. Rev. Series 1997 A, 0% 6/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 7,200 | 7,028 | ||
Chelan County Pub. Util. District #1 Rev. Bonds Series 2005 A, 5.125%, tender 7/1/15 (FGIC Insured) (d)(g) | 2,430 | 2,474 | ||
Clark County School District #37, Vancouver Series 2001 C, 0% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,030 | 1,852 | ||
Grant County Pub. Util. District #2 Wanapum Hydro Elec. Rev. Series B: | ||||
5.25% 1/1/18 (g) | 1,590 | 1,590 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Washington - continued | ||||
Grant County Pub. Util. District #2 Wanapum Hydro Elec. Rev. Series B: - continued | ||||
5.25% 1/1/20 (g) | $ 1,760 | $ 1,760 | ||
5.25% 1/1/23 (g) | 2,055 | 2,055 | ||
Kent Spl. Events Ctr. Pub. Facilities District Rev.: | ||||
5.25% 12/1/25 (FSA Insured) | 2,575 | 2,880 | ||
5.25% 12/1/36 (FSA Insured) | 9,180 | 10,087 | ||
King County Swr. Rev.: | ||||
Series 2008, 5.75% 1/1/43 | 22,700 | 25,471 | ||
Series 2009, 5.25% 1/1/42 | 2,600 | 2,901 | ||
Pierce County School District #10 Tacoma Series A, 5% 12/1/18 (FSA Insured) | 4,000 | 4,170 | ||
Port of Seattle Spl. Facility Rev. Series 2013: | ||||
5% 6/1/21 (g) | 1,340 | 1,539 | ||
5% 6/1/22 (g) | 1,000 | 1,157 | ||
5% 6/1/24 (g) | 1,000 | 1,155 | ||
Snohomish County School District #4, Lake Stevens 5.125% 12/1/19 (Pre-Refunded to 12/1/15 @ 100) | 1,875 | 1,958 | ||
Spokane Pub. Facilities District Hotel/Motel Tax & Sales/Use Tax Rev. Series 2013 B: | ||||
5% 12/1/25 | 5,600 | 6,609 | ||
5% 12/1/27 | 2,625 | 3,074 | ||
Tobacco Settlement Auth. Rev. Series 2013, 5% 6/1/21 | 6,250 | 7,261 | ||
Washington Gen. Oblig.: | ||||
Series 2008 D, 5% 1/1/24 (Pre-Refunded to 1/1/18 @ 100) | 2,975 | 3,335 | ||
Series B, 5% 7/1/28 (Pre-Refunded to 7/1/15 @ 100) | 395 | 404 | ||
Series R 97A: | ||||
0% 7/1/17 (Escrowed to Maturity) | 7,045 | 6,896 | ||
0% 7/1/19 (Escrowed to Maturity) | 9,100 | 8,540 | ||
Washington Health Care Facilities Auth. Rev.: | ||||
(Catholic Health Initiatives Proj.) Series 2008 D, 6.375% 10/1/36 | 5,000 | 5,856 | ||
(Childrens Hosp. Reg'l. Med. Ctr. Proj.) Series 2008 C, 5.5% 10/1/35 | 10,000 | 11,254 | ||
(MultiCare Health Sys. Proj.) Series 2010 A: | ||||
5.25% 8/15/19 | 3,850 | 4,450 | ||
5.25% 8/15/20 | 2,000 | 2,293 | ||
(Overlake Hosp. Med. Ctr.) Series 2010, 5.7% 7/1/38 | 11,300 | 12,772 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Washington - continued | ||||
Washington Health Care Facilities Auth. Rev.: - continued | ||||
(Providence Health Systems Proj.): | ||||
Series 2006 D, 5.25% 10/1/33 | $ 1,500 | $ 1,675 | ||
Series 2012 A: | ||||
5% 10/1/25 | 5,130 | 6,019 | ||
5% 10/1/26 | 13,395 | 15,624 | ||
(Seattle Children's Hosp. Proj.) Series 2009, 5.625% 10/1/38 | 7,550 | 8,659 | ||
Series 2009, 7% 7/1/39 | 3,000 | 3,480 | ||
| 176,278 | |||
West Virginia - 0.2% | ||||
West Virginia Hosp. Fin. Auth. Hosp. Rev.: | ||||
(West Virginia United Health Sys. Proj.) Series 2008 E, 5.625% 6/1/35 | 700 | 788 | ||
(West Virginia Univ. Hospitals, Inc. Proj.) Series 2003 D, 5.5% 6/1/33 (FSA Insured) | 2,600 | 2,812 | ||
West Virginia Univ. Revs. (West Virginia Univ. Projs.) Series 2014 A, 5% 10/1/44 | 6,500 | 7,408 | ||
| 11,008 | |||
Wisconsin - 0.7% | ||||
Wisconsin Gen. Oblig. Series 2008 D, 5.5% 5/1/26 (Pre-Refunded to 5/1/18 @ 100) | 1,245 | 1,428 | ||
Wisconsin Health & Edl. Facilities Series 2014, 4% 5/1/33 | 3,015 | 2,966 | ||
Wisconsin Health & Edl. Facilities Auth. Rev.: | ||||
(Agnesian HealthCare, Inc. Proj.): | ||||
Series 2010: | ||||
5.5% 7/1/40 | 2,375 | 2,640 | ||
5.75% 7/1/30 | 2,655 | 3,073 | ||
Series 2013 B: | ||||
5% 7/1/27 | 1,205 | 1,373 | ||
5% 7/1/36 | 5,000 | 5,474 | ||
(Children's Hosp. of Wisconsin Proj.): | ||||
Series 2008 A, 5.25% 8/15/22 | 2,000 | 2,256 | ||
Series 2008 B, 5.375% 8/15/37 | 8,045 | 8,988 | ||
(Marshfield Clinic Proj.) Series A, 5.375% 2/15/34 | 3,250 | 3,375 | ||
Series 2012: | ||||
4% 10/1/23 | 2,500 | 2,755 | ||
Municipal Bonds - continued | ||||
| Principal Amount (000s) | Value (000s) | ||
Wisconsin - continued | ||||
Wisconsin Health & Edl. Facilities Auth. Rev.: - continued | ||||
Series 2012: - continued | ||||
5% 6/1/27 | $ 1,925 | $ 2,190 | ||
5% 6/1/39 | 2,775 | 3,042 | ||
| 39,560 | |||
Wyoming - 0.2% | ||||
Campbell County Solid Waste Facilities Rev. (Basin Elec. Pwr. Coop. - Dry Fork Station Facilities Proj.) Series 2009 A, 5.75% 7/15/39 | 8,600 | 9,888 | ||
TOTAL MUNICIPAL BONDS (Cost $5,152,391) |
|
Municipal Notes - 0.5% | |||
|
|
|
|
Kentucky - 0.2% | |||
Kentucky Pub. Trans. BAN Series 2013 A, 5% 7/1/17 | 8,600 | 9,427 | |
Louisiana - 0.2% | |||
Saint James Parish Gen. Oblig. (Nucor Steel Louisiana LLC Proj.): | |||
Series 2010 A1, 0.22% 1/7/15, VRDN (d) | 6,100 | 6,100 | |
Series 2010 B1, 0.2% 1/7/15, VRDN (d) | 5,200 | 5,200 | |
| 11,300 | ||
North Carolina - 0.1% | |||
Hertford County Indl. Facilities Poll. Cont. Fing. Auth. (Nucor Corp. Proj.) Series 2000 A, 0.22% 1/7/15, VRDN (d)(g) | 8,500 | 8,500 | |
TOTAL MUNICIPAL NOTES (Cost $28,998) |
| ||
Money Market Funds - 0.0% | |||
Shares | Value (000s) | ||
Fidelity Municipal Cash Central Fund, 0.04% (e)(f) | 100,000 | $ 100 | |
TOTAL INVESTMENT PORTFOLIO - 98.0% (Cost $5,181,489) | 5,629,492 | ||
NET OTHER ASSETS (LIABILITIES) - 2.0% | 115,522 | ||
NET ASSETS - 100% | $ 5,745,014 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
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 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 $6,672,000 or 0.1% of net assets. |
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(e) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(f) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(g) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(h) 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 $2,410,000 or 0.0% of net assets. |
Additional information on each restricted 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 | $ 2,263 |
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 | $ 0* |
* Amount represents forty-nine dollars.
Other Information |
The following is a summary of the inputs used, as of December 31, 2014, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Municipal Securities | $ 5,629,392 | $ - | $ 5,629,392 | $ - |
Money Market Funds | 100 | 100 | - | - |
Total Investments in Securities: | $ 5,629,492 | $ 100 | $ 5,629,392 | $ - |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 33.5% |
Health Care | 21.0% |
Transportation | 12.1% |
Special Tax | 8.2% |
Electric Utilities | 7.1% |
Water & Sewer | 5.8% |
Escrowed/Pre-Refunded | 5.4% |
Others* (Individually Less Than 5%) | 6.9% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | December 31, 2014 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $5,181,389) | $ 5,629,392 |
|
Fidelity Central Funds (cost $100) | 100 |
|
Total Investments (cost $5,181,489) |
| $ 5,629,492 |
Cash |
| 116,911 |
Receivable for fund shares sold | 3,817 | |
Interest receivable | 68,523 | |
Prepaid expenses | 12 | |
Other receivables | 12 | |
Total assets | 5,818,767 | |
|
|
|
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | 62,343 | |
Payable for fund shares redeemed | 3,150 | |
Distributions payable | 5,497 | |
Accrued management fee | 1,718 | |
Other affiliated payables | 977 | |
Other payables and accrued expenses | 68 | |
Total liabilities | 73,753 | |
|
|
|
Net Assets | $ 5,745,014 | |
Net Assets consist of: |
| |
Paid in capital | $ 5,299,588 | |
Undistributed net investment income | 963 | |
Accumulated undistributed net realized gain (loss) on investments | (3,540) | |
Net unrealized appreciation (depreciation) on investments | 448,003 | |
Net Assets, for 424,587 shares outstanding | $ 5,745,014 | |
Net Asset Value, offering price and redemption price per share ($5,745,014 ÷ 424,587 shares) | $ 13.53 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Amounts in thousands | Year ended December 31, 2014 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 224,944 |
Income from Fidelity Central Funds |
| - |
Total income |
| 224,944 |
|
|
|
Expenses | ||
Management fee | $ 20,042 | |
Transfer agent fees | 5,013 | |
Accounting fees and expenses | 681 | |
Custodian fees and expenses | 66 | |
Independent trustees' compensation | 25 | |
Registration fees | 97 | |
Audit | 76 | |
Legal | 13 | |
Miscellaneous | 44 | |
Total expenses before reductions | 26,057 | |
Expense reductions | (34) | 26,023 |
Net investment income (loss) | 198,921 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers | (2,660) | |
Change in net unrealized appreciation (depreciation) on investment securities | 361,039 | |
Net gain (loss) | 358,379 | |
Net increase (decrease) in net assets resulting from operations | $ 557,300 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands | Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 198,921 | $ 222,012 |
Net realized gain (loss) | (2,660) | 21,387 |
Change in net unrealized appreciation (depreciation) | 361,039 | (445,997) |
Net increase (decrease) in net assets resulting | 557,300 | (202,598) |
Distributions to shareholders from net investment income | (199,449) | (221,457) |
Distributions to shareholders from net realized gain | - | (7,586) |
Total distributions | (199,449) | (229,043) |
Share transactions | 735,870 | 915,968 |
Reinvestment of distributions | 132,068 | 142,730 |
Cost of shares redeemed | (818,143) | (2,081,807) |
Net increase (decrease) in net assets resulting from share transactions | 49,795 | (1,023,109) |
Redemption fees | 88 | 55 |
Total increase (decrease) in net assets | 407,734 | (1,454,695) |
|
|
|
Net Assets | ||
Beginning of period | 5,337,280 | 6,791,975 |
End of period (including undistributed net investment income of $963 and undistributed net investment income of $1,438, respectively) | $ 5,745,014 | $ 5,337,280 |
Other Information Shares | ||
Sold | 55,474 | 69,839 |
Issued in reinvestment of distributions | 9,943 | 10,939 |
Redeemed | (61,843) | (160,384) |
Net increase (decrease) | 3,574 | (79,606) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 12.68 | $ 13.57 | $ 13.03 | $ 12.27 | $ 12.46 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .475 | .479 | .483 | .513 | .516 |
Net realized and unrealized gain (loss) | .851 | (.873) | .537 | .764 | (.189) |
Total from investment operations | 1.326 | (.394) | 1.020 | 1.277 | .327 |
Distributions from net investment income | (.476) | (.478) | (.479) | (.515) | (.516) |
Distributions from net realized gain | - | (.018) | (.001) | (.002) | (.001) |
Total distributions | (.476) | (.496) | (.480) | (.517) | (.517) |
Redemption fees added to paid in capital B, F | - | - | - | - | - |
Net asset value, end of period | $ 13.53 | $ 12.68 | $ 13.57 | $ 13.03 | $ 12.27 |
Total ReturnA | 10.59% | (2.94)% | 7.92% | 10.64% | 2.58% |
Ratios to Average Net AssetsC,E |
|
|
|
|
|
Expenses before reductions | .47% | .46% | .46% | .46% | .46% |
Expenses net of fee waivers, if any | .47% | .46% | .46% | .46% | .46% |
Expenses net of all reductions | .47% | .46% | .46% | .46% | .46% |
Net investment income (loss) | 3.58% | 3.65% | 3.60% | 4.08% | 4.08% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (in millions) | $ 5,745 | $ 5,337 | $ 6,792 | $ 5,917 | $ 5,655 |
Portfolio turnover rateD | 9% | 10% | 10% | 11% | 10% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2014
(Amounts in thousands except percentages)
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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between funds. 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 invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, 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.
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When
Annual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Municipal securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2014, is included at the end of the Fund's Schedule of Investments.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of December 31, 2014, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to futures contracts and excise tax regulations.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
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 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows:
Gross unrealized appreciation | $ 455,514 |
Gross unrealized depreciation | (6,341) |
Net unrealized appreciation (depreciation) on securities | $ 449,173 |
|
|
Tax Cost | $ 5,180,319 |
The tax-based components of distributable earnings as of period end were as follows:
Capital loss carryforward | $ (3,454) |
Net unrealized appreciation (depreciation) on securities and other investments | $ 449,173 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration |
|
Short-term | $ (466) |
Long-term | (2,988) |
Total no expiration | $ (3,454) |
The tax character of distributions paid was as follows:
| December 31, 2014 | December 31, 2013 |
Tax-exempt Income | $ 199,449 | $ 221,457 |
Long-term Capital Gains | - | 7,586 |
Total | $ 199,449 | $ 229,043 |
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 30 days may have been subject to a redemption fee equal to .50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in 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. 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Fund's financial statements and related disclosures.
Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $547,176 and $489,263, respectively.
Annual Report
4. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .36% of the Fund's average net assets.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Fund. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, under which FIIOC performs the activities associated with the Fund's transfer agency, dividend disbursing and shareholder servicing functions. The Fund pays Citibank account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees were equivalent to an annual rate of .09% of average net assets.
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, under which FSC maintains the Fund's accounting records. The fee is paid to Citibank and is based on the level of average net assets for each month.
5. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 $9 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
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 $31 and $3, respectively.
7. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and the Shareholders of Fidelity Municipal Income Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Municipal Income Fund (a fund of Fidelity Municipal Trust) at December 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Municipal Income Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 13, 2015
Annual Report
Trustees and Officers
The Trustees and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Elizabeth S. Acton, James C. Curvey, and John Engler, each of the Trustees oversees 233 funds. Ms. Acton and Mr. Engler each oversees 215 funds. Mr. Curvey oversees 407 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
James C. Curvey (1935) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), and a Director of FMR Co., Inc. (2007-2014). |
Abigail P. Johnson (1961) | |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees | |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC, President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
Year of Election or Appointment: 2013 Trustee | |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
John Engler (1948) | |
Year of Election or Appointment: 2014 Trustee | |
| Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association. |
Albert R. Gamper, Jr. (1942) | |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees | |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
Year of Election or Appointment: 2010 Trustee | |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
Year of Election or Appointment: 2008 Trustee | |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
Year of Election or Appointment: 2009 Trustee | |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees | |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation | |
Elizabeth Paige Baumann (1968) | |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer | |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Robert P. Brown (1963) | |
Year of Election or Appointment: 2012 Vice President of Fidelity's Bond Funds | |
| Mr. Brown also serves as Vice President of other funds. Mr. Brown serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director, Research of Fidelity Management & Research (U.K.) Inc. (2008-present), and is an employee of Fidelity Investments. Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's Money Market Funds (2010-2012). |
Marc Bryant (1966) | |
Year of Election or Appointment: 2013 Assistant Secretary | |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) | |
Year of Election or Appointment: 2013 President and Treasurer | |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) | |
Year of Election or Appointment: 2014 Chief Financial Officer | |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) | |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) | |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Limited (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Chris Maher (1972) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) | |
Year of Election or Appointment: 2014 Vice President | |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) | |
Year of Election or Appointment: 2009 Assistant Treasurer | |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) | |
Year of Election or Appointment: 2008 Chief Compliance Officer | |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (2014-present), FMR (2014-present), Fidelity Investments Money Management, Inc. (2014-present), and is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
Year of Election or Appointment: 2011 Deputy Treasurer | |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
Distributions (Unaudited)
During fiscal year ended 2014, 100% of the fund's income dividends was free from federal income tax, and 3.12% of the fund's income dividends was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the 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 relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by 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. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of the fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2014 meeting, the Board, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. 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 fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and 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. In connection with separate internal corporate reorganizations involving Fidelity Management & Research (U.K.) Inc. (FMR U.K.) and Fidelity Management & Research (Japan) Inc. (FMR Japan), the Board approved certain non-material amendments to the fund's sub-advisory agreements with FMR U.K. and FMR Japan to reflect that, after these reorganizations, FMR Investment Management (UK) Limited and Fidelity Management & Research (Japan) Limited will carry on the business of FMR U.K. and FMR Japan, respectively. The Board noted that no changes to the portfolio managers or to the foreign research or investment advisory services provided to the fund were expected in connection with either reorganization and that the same personnel and resources would continue to be available to the fund at the new entities.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. 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 to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, 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 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 over time 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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
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 a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing a new Fidelity adviser, Fidelity SelectCo, LLC, to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should benefit the fund's shareholders.
Annual Report
Competitiveness of Management Fee and Total Expense Ratio. The Board considered the fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Management Fee. 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than the fund. The fund's actual TMG %s are in the chart below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the chart and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity Municipal Income Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2013.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of the fund's total expense ratio, 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 that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund. As part of its review, the Board also considered the current and historical total expense ratios 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 expense ratio ranked below its competitive median for 2013.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients. The Board noted the findings of the 2013 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Annual Report
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the fund's total expense ratio was 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 servicing the fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. 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 Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and 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 was satisfied that the profitability was not excessive.
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 as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under FMR's management plus sector fund assets previously under FMR's management and currently managed by Fidelity SelectCo, LLC). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity 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 benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
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 certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) the methodology with respect to competitive fund data and peer group classifications; (viii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (ix) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Annual Report
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
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(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
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and Account Assistance 1-800-544-6666
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www.fidelity.com
HIY-UANN-0215 1.787741.111
Fidelity®
Ohio Municipal Income Fund
and
Fidelity
Ohio Municipal Money Market
Fund
Annual Report
December 31, 2014
(Fidelity Cover Art)
Contents
Performance | How the fund has done over time. | |
Management's Discussion of Fund Performance | The Portfolio Manager's review of fund performance and strategy. | |
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 | 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. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
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/proxyvotingresults 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.
Annual Report
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
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 listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Fidelity® Ohio Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2014 | Past 1 | Past 5 | Past 10 |
Fidelity Ohio Municipal Income Fund | 10.26% | 5.04% | 4.52% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Ohio Municipal Income Fund on December 31, 2004. The chart shows how the value of your investment would have changed, and also shows how the Barclays® Municipal Bond Index performed over the same period.
Annual Report
Management's Discussion of Fund Performance
Market Recap: Municipal bonds posted a strong result for the 12 months ending December 31, 2014, driven by steady demand, tight supply and improving credit fundamentals. The Barclays® Municipal Bond Index returned 9.05%, significantly outperforming the U.S. investment-grade taxable bond market. Munis were driven, in part, by continued economic growth, declining long-term interest rates, and the relative attractiveness of U.S. markets amid global economic and political uncertainty. More specific to munis, prices rose as investors became more upbeat about the fundamental outlook of many state and local governments. Additionally, a steady stream of municipal bond cash flows - coupon payments, maturities and those due to early bond calls by issuers - fueled reinvestment. Meanwhile, investors took solace that the financial distress experienced by Puerto Rico, Detroit and a few California cities in bankruptcy did not expand to the broader market. Lastly, the tax advantages of munis had particular appeal due to the higher federal tax rates for top earners that took effect in 2013, as well as the new 3.8% Medicare tax on unearned, non-municipal investment income.
Comments from Jamie Pagliocco, Portfolio Manager of Fidelity® Ohio Municipal Income Fund: For year, the fund returned 10.26%, while the Barclays Ohio 4+ Year Enhanced Modified Municipal Bond Index returned 10.63%. I sought to generate attractive tax-exempt income for the fund and protect shareholder capital. Given this investment approach and the muni bond market environment, the fund performed in line with my expectations by generating gains, before expenses, that were roughly in line the Barclays index. An overweighted position in general obligation bonds issued by the state bolstered our result. These securities typically outpaced the Ohio municipal market as a whole. The fund's overweighting in lower-rated, investment-grade premium bonds also contributed to its outperformance. These typically higher-yielding securities drew strong demand from investors given the low-interest rate environment. The fund's underweighted exposure to investor-owned utility bonds proved detrimental for the period because they outpaced the index. Like most lower-quality municipal bonds, investor-owned utility securities performed well due to strong demand for higher-yielding investments. The fact that the bonds are backed by corporations, which generally enjoyed improved profitability during the past year, also bolstered investors' enthusiasm for the securities.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Income Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2014 to December 31, 2014).
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.
Annual Report
| Annualized | Beginning | Ending | Expenses Paid |
Fidelity Ohio Municipal Income Fund | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,034.50 | $ 2.46 |
HypotheticalA |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Fidelity Ohio Municipal Money Market Fund | .06% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ .30 |
HypotheticalA |
| $ 1,000.00 | $ 1,024.90 | $ .31 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Fidelity Ohio Municipal Income Fund
Investment Changes (Unaudited)
Top Five Sectors as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
General Obligations | 36.7 | 34.3 |
Health Care | 19.9 | 20.5 |
Education | 18.7 | 19.6 |
Special Tax | 6.8 | 5.4 |
Electric Utilities | 5.7 | 4.7 |
Weighted Average Maturity as of December 31, 2014 | ||
|
| 6 months ago |
Years | 6.4 | 6.4 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2014 | ||
|
| 6 months ago |
Years | 7.2 | 7.5 |
Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | AAA 8.0% |
| ![]() | AAA 6.4% |
| ||
![]() | AA,A 87.2% |
| ![]() | AA,A 86.5% |
| ||
![]() | BBB 3.7% |
| ![]() | BBB 4.7% |
| ||
![]() | BB and Below 0.3% |
| ![]() | BB and Below 0.3% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Fidelity Ohio Municipal Income Fund
Investments December 31, 2014
Showing Percentage of Net Assets
Municipal Bonds - 99.2% | ||||
| Principal Amount | Value | ||
Guam - 0.8% | ||||
Guam Ed. Fing. Foundation Ctfs. of Prtn. Series 2006 A, 5% 10/1/23 | $ 1,600,000 | $ 1,640,272 | ||
Guam Int'l. Arpt. Auth. Rev. Series 2013 C: | ||||
5% 10/1/18 (c) | 950,000 | 1,052,800 | ||
6.25% 10/1/34 (c) | 900,000 | 1,087,866 | ||
Guam Pwr. Auth. Rev. Series 2012 A, 5% 10/1/23 (FSA Insured) | 1,000,000 | 1,198,940 | ||
| 4,979,878 | |||
Ohio - 97.8% | ||||
Akron Bath Copley Hosp. District Rev.: | ||||
(Akron Gen. Health Systems Proj.) Series A, 5% 1/1/15 | 1,275,000 | 1,275,102 | ||
(Children's Hosp. Med. Ctr. Proj.): | ||||
Series 2012 5% 11/15/22 | 1,000,000 | 1,159,040 | ||
Series 2012, 5% 11/15/23 | 3,245,000 | 3,761,085 | ||
Allen County Hosp. Facilities Rev. (Catholic Healthcare Partners Proj.) Series 2010 B, 5.25% 9/1/27 | 5,000,000 | 5,743,200 | ||
American Muni. Pwr., Inc. Rev.: | ||||
(Amp Freemont Energy Ctr. Proj.) Series 2012: | ||||
5% 2/15/25 | 4,000,000 | 4,613,680 | ||
5.25% 2/15/28 | 8,040,000 | 9,323,908 | ||
(Prairie State Energy Campus Proj.): | ||||
Series 2008 A, 5% 2/15/38 | 4,075,000 | 4,413,347 | ||
Series 2009 A, 5.75% 2/15/39 (Pre-Refunded to 2/15/19 @ 100) | 3,000,000 | 3,552,180 | ||
Series 2015: | ||||
5% 2/15/28 (a) | 3,995,000 | 4,596,607 | ||
5% 2/15/42 (a) | 3,000,000 | 3,321,120 | ||
Avon Gen. Oblig. Series 2009 B: | ||||
5% 12/1/36 | 1,040,000 | 1,153,256 | ||
5% 12/1/37 | 1,095,000 | 1,212,504 | ||
Beavercreek City School District Series 2009, 5% 12/1/36 | 2,250,000 | 2,493,000 | ||
Bowling Green City School District 5% 12/1/34 (FSA Insured) | 2,000,000 | 2,153,720 | ||
Buckeye Tobacco Settlement Fing. Auth. Series 2007 A1: | ||||
5% 6/1/16 | 2,800,000 | 2,961,672 | ||
5% 6/1/17 | 3,240,000 | 3,533,123 | ||
Buckeye Valley Local School District Delaware County Series A, 6.85% 12/1/15 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 325,000 | 333,028 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Butler County Hosp. Facilities Rev.: | ||||
(Kettering Health Network Obligated Group Proj.) Series 2011, 6.375% 4/1/36 | $ 5,030,000 | $ 5,941,637 | ||
(UC Health Proj.) Series 2010, 5.5% 11/1/40 | 3,025,000 | 3,381,406 | ||
Butler County Sales Tax (Govt. Svcs. Ctr. Proj.) Series A, 5% 12/15/16 (AMBAC Insured) | 2,455,000 | 2,503,560 | ||
Butler County Trans. Impt. District Series 2007, 5% 12/1/18 (XL Cap. Assurance, Inc. Insured) | 1,015,000 | 1,114,003 | ||
Cincinnati City School District Ctfs. of Prtn.: | ||||
(Cincinnati City School District School Impt. Proj.) 5% 12/15/26 | 4,000,000 | 4,702,040 | ||
(School Impt. Proj.): | ||||
5% 12/15/28 (FSA Insured) | 265,000 | 285,490 | ||
5% 12/15/28 (Pre-Refunded to 12/15/16 @ 100) | 735,000 | 798,379 | ||
Cincinnati Gen. Oblig.: | ||||
Series 2009 A: | ||||
4.5% 12/1/29 | 500,000 | 539,055 | ||
5% 12/1/20 | 1,240,000 | 1,403,283 | ||
Series 2012 F: | ||||
5% 12/1/20 | 3,045,000 | 3,575,256 | ||
5% 12/1/21 | 2,765,000 | 3,275,751 | ||
Cincinnati Wtr. Sys. Rev.: | ||||
Series A, 5% 12/1/36 | 1,700,000 | 1,967,886 | ||
Series B, 5% 12/1/32 | 6,500,000 | 7,167,160 | ||
Cleveland Arpt. Sys. Rev. Series 2000 C, 5% 1/1/20 (FSA Insured) | 3,500,000 | 3,763,130 | ||
Cleveland Gen. Oblig.: | ||||
Series 2005, 5.5% 10/1/20 (AMBAC Insured) | 7,350,000 | 8,680,497 | ||
Series 2012, 5% 12/1/25 | 2,350,000 | 2,725,037 | ||
Series 2007 C: | ||||
5.25% 11/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,100,000 | 1,288,045 | ||
5.25% 11/15/21 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,145,000 | 1,353,367 | ||
5.25% 11/15/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,210,000 | 1,444,123 | ||
5.25% 11/15/23 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,885,000 | 2,266,336 | ||
Cleveland Heights & Univ. Heights County School District Series 2014, 4.5% 12/1/47 | 3,000,000 | 3,191,940 | ||
Cleveland Muni. School District Series 2013: | ||||
5% 12/1/24 | 1,255,000 | 1,458,185 | ||
5% 12/1/26 | 4,060,000 | 4,673,669 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Cleveland Parking Facilities Rev. 5.25% 9/15/17 (FSA Insured) | $ 3,040,000 | $ 3,334,485 | ||
Cleveland State Univ. Gen. Receipts Series 2012: | ||||
5% 6/1/24 | 1,920,000 | 2,227,834 | ||
5% 6/1/25 | 2,500,000 | 2,887,075 | ||
5% 6/1/26 | 3,075,000 | 3,536,404 | ||
Cleveland Wtr. Rev. Series 2012 X, 5% 1/1/42 | 5,465,000 | 6,178,674 | ||
Cleveland Wtrwks. Rev. Series 2007 O, 5% 1/1/37 | 3,200,000 | 3,396,320 | ||
Cleveland-Cuyahoga County Port Auth. Dev. Lease Rev. (Administrative Headquarters Proj.) Series 2013, 5% 7/1/37 | 3,000,000 | 3,728,610 | ||
Columbus City School District (School Facilities Construction and Impt. Proj.) Series 2009 B, 5% 12/1/29 (Pre-Refunded to 12/1/19 @ 100) | 1,000,000 | 1,169,470 | ||
Columbus Gen. Oblig.: | ||||
Series 2012 A, 4% 2/15/27 | 10,000,000 | 11,033,200 | ||
Series 2014 A, 4% 2/15/28 | 5,000,000 | 5,547,250 | ||
Columbus Metropolitan Library Facility 5% 12/1/23 | 1,000,000 | 1,151,790 | ||
Columbus Swr. Sys. Rev. Series 2008 A, 5% 6/1/24 (Pre-Refunded to 12/1/17 @ 100) | 1,515,000 | 1,696,270 | ||
Cuyahoga Cmnty. College District Gen. Oblig. Series 2009 C: | ||||
5% 8/1/25 | 1,140,000 | 1,294,071 | ||
5% 8/1/27 | 1,200,000 | 1,354,176 | ||
Cuyahoga County Gen. Oblig. Series 2012 A: | ||||
4% 12/1/27 | 1,575,000 | 1,694,905 | ||
5% 12/1/25 | 765,000 | 888,930 | ||
Dayton Gen. Oblig.: | ||||
4% 12/1/22 | 750,000 | 816,960 | ||
4% 12/1/25 | 1,540,000 | 1,651,142 | ||
Dayton School District Series 2013, 5% 11/1/22 | 5,775,000 | 6,898,584 | ||
Fairfield County Hosp. Facilities Rev. (Fairfield Med. Ctr. Proj.) Series 2013, 5.25% 6/15/43 | 5,000,000 | 5,336,800 | ||
Fairview Park Gen. Oblig. Series 2012: | ||||
4% 12/1/22 | 1,225,000 | 1,363,437 | ||
4% 12/1/23 | 1,395,000 | 1,539,968 | ||
4% 12/1/24 | 1,490,000 | 1,629,211 | ||
Franklin County Convention Facilities Auth. Tax & Lease Rev. Series 2014: | ||||
5% 12/1/25 | 1,250,000 | 1,514,050 | ||
5% 12/1/26 | 3,045,000 | 3,664,597 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Franklin County Hosp. Rev. (Nationwide Children's Hosp. Proj.): | ||||
Series 2009, 5.25% 11/1/40 | $ 5,000,000 | $ 5,586,750 | ||
Series 2008 A: | ||||
5% 11/1/15 | 260,000 | 270,278 | ||
5% 11/1/16 | 265,000 | 286,015 | ||
Greater Cleveland Reg'l. Transit Auth. Series 2012: | ||||
5% 12/1/23 | 1,000,000 | 1,175,590 | ||
5% 12/1/24 | 1,800,000 | 2,104,776 | ||
5% 12/1/25 | 1,170,000 | 1,360,804 | ||
Hamilton County Convention Facilities Auth. Rev.: | ||||
Series 2014: | ||||
5% 12/1/26 | 1,000,000 | 1,150,160 | ||
5% 12/1/27 | 3,825,000 | 4,380,122 | ||
5% 12/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,985,000 | 1,985,000 | ||
5% 12/1/18 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,075,000 | 1,075,000 | ||
5% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,190,000 | 2,190,000 | ||
5% 12/1/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,130,000 | 1,130,000 | ||
Hamilton County Econ. Dev. Rev. (King Highland Cmnty. Urban Redev. Corp. Proj.) Series A, 5% 6/1/17 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,070,000 | 1,130,851 | ||
Hamilton County Health Care Facilities Rev.: | ||||
(Christ Hosp. Proj.) Series 2012, 5.25% 6/1/24 | 3,000,000 | 3,468,720 | ||
(The Christ Hosp. Proj.) Series 2012, 5.25% 6/1/27 | 3,000,000 | 3,477,390 | ||
Hamilton County Hosp. Facilities Rev. (Children's Hosp. Med. Ctr. Proj.) Series 2014 S, 5% 5/15/26 | 5,000,000 | 6,009,400 | ||
Hamilton County Sales Tax Rev. Series 2011 A, 5% 12/1/24 | 4,870,000 | 5,617,350 | ||
Hamilton County Student Hsg. Rev. (Stratford Heights Proj.) Series 2010, 5% 6/1/30 (FSA Insured) | 2,500,000 | 2,717,700 | ||
Hamilton Wtrwks. Rev. 5% 10/15/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,003,160 | ||
Hancock County Hosp. Facilities Rev.: | ||||
(Blanchard Valley Reg'l. Health Ctr. Proj.) | ||||
6.25% 12/1/34 | 4,100,000 | 4,862,969 | ||
5% 12/1/21 | 1,500,000 | 1,681,890 | ||
Hilliard Gen. Oblig. 5% 12/1/18 | 235,000 | 244,687 | ||
Huber Heights City School District Unltd. Tax School Impt. Gen. Oblig. Series 2009, 5% 12/1/36 | 1,500,000 | 1,652,325 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Kent State Univ. Revs.: | ||||
Series 2009 B: | ||||
5% 5/1/26 (Assured Guaranty Corp. Insured) | $ 4,100,000 | $ 4,688,678 | ||
5% 5/1/28 (Assured Guaranty Corp. Insured) | 5,000,000 | 5,690,950 | ||
5% 5/1/29 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,126,620 | ||
5% 5/1/30 (Assured Guaranty Corp. Insured) | 1,115,000 | 1,251,253 | ||
Series 2012 A: | ||||
5% 5/1/24 | 1,385,000 | 1,609,204 | ||
5% 5/1/25 | 1,500,000 | 1,734,150 | ||
5% 5/1/26 | 1,600,000 | 1,842,864 | ||
Lake County Hosp. Facilities Rev. (Lake Hosp. Sys., Inc. Proj.) Series 2008 C: | ||||
5% 8/15/16 | 1,260,000 | 1,336,230 | ||
5% 8/15/17 | 1,000,000 | 1,088,650 | ||
Lakewood City School District Series 2014 C: | ||||
5% 12/1/25 | 1,300,000 | 1,577,147 | ||
5% 12/1/27 | 3,215,000 | 3,853,692 | ||
Lancaster Ohio City School District Series 2012: | ||||
5% 10/1/37 | 2,000,000 | 2,250,720 | ||
5% 10/1/49 | 3,000,000 | 3,300,390 | ||
Lucas County Hosp. Rev.: | ||||
(ProMedica Healthcare Oblig. Group Proj.): | ||||
Series 2008 D, 5% 11/15/38 | 1,090,000 | 1,183,326 | ||
Series 2011 A, 6.5% 11/15/37 | 2,800,000 | 3,446,184 | ||
Series 2011 D: | ||||
5% 11/15/22 | 1,000,000 | 1,177,320 | ||
5% 11/15/25 | 5,000,000 | 5,783,200 | ||
Lucas-Plaza Hsg. Dev. Corp. Mtg. Rev. (The Plaza Section 8 Assisted Proj.) Series 1991 A, 0% 6/1/24 (Escrowed to Maturity) | 9,000,000 | 7,306,020 | ||
Marysville Village School District 5% 12/1/29 (FSA Insured) | 4,000,000 | 4,131,600 | ||
Miami Univ. Gen. Receipts Series 2012, 4% 9/1/28 | 2,195,000 | 2,372,093 | ||
Miamisburg City School District: | ||||
Series 2008, 5% 12/1/33 | 2,390,000 | 2,681,747 | ||
Series 2009, 5% 12/1/23 (Assured Guaranty Corp. Insured) | 1,405,000 | 1,607,952 | ||
Middleburg Heights Hosp. Rev.: | ||||
Series 2011, 5.25% 8/1/41 | 3,000,000 | 3,316,770 | ||
Series 2012 A, 5% 8/1/47 | 10,725,000 | 11,332,357 | ||
Milford Exempt Village School District 5.25% 12/1/33 | 5,000,000 | 5,563,300 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Montgomery County Rev. (Catholic Health Initiatives Proj.) Series 2008 D, 6.25% 10/1/33 | $ 2,500,000 | $ 2,919,900 | ||
Muskingum County Hosp. Facilities (Genesis Healthcare Sys. Obligated Group Proj.) Series 2013, 5% 2/15/48 | 2,000,000 | 2,044,020 | ||
North Olmsted Gen. Oblig. Series D, 5.25% 12/1/20 (AMBAC Insured) | 2,075,000 | 2,245,295 | ||
Northmont City School District Series 2012 A, 5% 11/1/49 | 5,000,000 | 5,457,600 | ||
Ohio Air Quality Dev. Auth. Rev.: | ||||
Bonds (FirstEnergy Nuclear Generation Proj.) Series 2008 C, 3.95%, tender 5/1/20 (b)(c) | 2,000,000 | 2,102,760 | ||
Series 2009 C, 5.625% 6/1/18 | 2,600,000 | 2,894,866 | ||
Ohio Bldg. Auth. (Adult Correctional Bldg. Fund Proj.): | ||||
Series 2009 B, 5% 10/1/24 | 1,790,000 | 2,055,027 | ||
Series 2010 A, 5% 10/1/24 | 6,030,000 | 6,907,003 | ||
Ohio Gen. Oblig.: | ||||
(Adult Correctional Bldg. Fund Proj.) Series 2013 A: | ||||
5% 10/1/21 | 845,000 | 1,003,404 | ||
5% 10/1/22 | 1,090,000 | 1,312,861 | ||
(Infrastructure Impt. Proj.) Series A, 5% 3/1/26 | 1,850,000 | 1,947,995 | ||
(Mental Health Facilities Impt. Fund Proj.) Series 2013 A, 5% 2/1/21 | 2,085,000 | 2,448,624 | ||
Series 2008 A: | ||||
5.375% 9/1/23 | 1,170,000 | 1,324,943 | ||
5.375% 9/1/28 | 7,210,000 | 8,148,021 | ||
Series 2011, 5.25% 9/1/23 | 2,000,000 | 2,383,460 | ||
Series 2012 A: | ||||
5% 2/1/26 | 1,000,000 | 1,183,810 | ||
5% 2/1/27 | 5,000,000 | 5,929,200 | ||
Series 2012 B: | ||||
5% 9/1/21 | 1,390,000 | 1,671,545 | ||
5% 3/15/25 | 7,500,000 | 8,933,550 | ||
Series 2012 C, 5% 9/1/23 | 1,000,000 | 1,228,330 | ||
Series 2013 A, 5% 9/15/22 | 10,000,000 | 12,144,493 | ||
Series Q, 5% 4/1/25 | 1,845,000 | 2,199,830 | ||
Ohio Higher Edl. Facility Commission Rev.: | ||||
(Case Western Reserve Univ. Proj.) Series 1990 B, 6.5% 10/1/20 | 2,335,000 | 2,664,469 | ||
(Cleveland Clinic Foundation Proj.) Series 2008 A: | ||||
5.25% 1/1/33 | 1,635,000 | 1,806,315 | ||
5.5% 1/1/43 | 3,500,000 | 3,848,005 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Ohio Higher Edl. Facility Commission Rev.: - continued | ||||
(John Carroll Univ. Proj.) 5% 4/1/17 | $ 1,000,000 | $ 1,040,050 | ||
(Kenyon College Proj.) Series 2010, 5.25% 7/1/44 | 2,750,000 | 3,015,623 | ||
(Univ. Hosp. Health Sys. Proj.) Series 2010 A, 5.25% 1/15/23 | 2,500,000 | 2,830,325 | ||
(Univ. of Dayton Proj.): | ||||
Series 2009, 5.5% 12/1/36 | 5,000,000 | 5,629,700 | ||
Series 2013: | ||||
5% 12/1/23 | 540,000 | 639,657 | ||
5% 12/1/24 | 585,000 | 691,113 | ||
5% 12/1/25 | 1,000,000 | 1,179,030 | ||
5% 12/1/26 | 1,195,000 | 1,402,392 | ||
5% 12/1/27 | 2,300,000 | 2,688,401 | ||
Ohio Hosp. Facilities Rev.: | ||||
(Cleveland Clinic Proj.) Series 2009 A, 5.5% 1/1/39 | 7,000,000 | 7,888,370 | ||
Series 2011 A, 5% 1/1/32 | 3,500,000 | 4,002,495 | ||
Ohio Hosp. Rev. Series 2013 A, 5% 1/15/27 | 5,000,000 | 5,781,800 | ||
Ohio Infrastructure Impt. Series 2014 C, 4% 3/1/25 | 7,650,000 | 8,581,388 | ||
Ohio State Univ. Gen. Receipts: | ||||
Series 2009 A, 5% 12/1/26 | 2,000,000 | 2,255,440 | ||
Series 2012 A: | ||||
4% 6/1/27 | 1,270,000 | 1,438,707 | ||
5% 6/1/24 | 1,690,000 | 2,093,166 | ||
Series 2013 A: | ||||
5% 6/1/28 | 2,000,000 | 2,366,800 | ||
5% 6/1/38 | 3,500,000 | 3,996,860 | ||
Ohio Tpk. Commission Tpk. Rev.: | ||||
(Infastructure Proj.) Series 2005 A, 0% 2/15/43 | 10,000,000 | 2,831,300 | ||
Series 1998 A, 5.5% 2/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000,000 | 3,552,240 | ||
Series 2010 A, 5% 2/15/31 | 5,475,000 | 6,177,881 | ||
Ohio Univ. Gen. Receipts Athens: | ||||
Series 2013: | ||||
5% 12/1/23 | 1,000,000 | 1,188,500 | ||
5% 12/1/24 | 5,075,000 | 6,015,601 | ||
Series A, 5% 12/1/33 (FSA Insured) | 1,190,000 | 1,293,744 | ||
Series B, 5% 12/1/31 (FSA Insured) | 3,540,000 | 3,770,135 | ||
Ohio Wtr. Dev. Auth. Poll. Cont. Facilities Rev. Bonds (FirstEnergy Corp. Proj.) Series 2009 A, 5.875%, tender 6/1/16 (b) | 1,020,000 | 1,084,056 | ||
Ohio Wtr. Dev. Auth. Rev.: | ||||
(Fresh Wtr. Impt. Proj.) Series 2009 B, 5% 12/1/24 | 1,025,000 | 1,280,143 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Ohio Wtr. Dev. Auth. Rev.: - continued | ||||
(Fresh Wtr. Proj.) Series 2009 B, 5% 12/1/25 | $ 1,950,000 | $ 2,457,273 | ||
(Pure Wtr. Proj.) Series I, 6% 12/1/16 (Escrowed to Maturity) | 400,000 | 420,332 | ||
Ohio Wtr. Dev. Auth. Wtr. Poll. Cont. Rev. (Wtr. Quality Proj.) Series 2010 A: | ||||
5% 12/1/29 | 2,000,000 | 2,328,640 | ||
5% 6/1/30 | 1,000,000 | 1,161,750 | ||
Olentangy Local School District 5% 12/1/36 | 2,700,000 | 2,957,661 | ||
Princeton City School District Series 2014: | ||||
0% 12/1/40 | 4,000,000 | 1,489,600 | ||
0% 12/1/41 | 4,000,000 | 1,422,560 | ||
5% 12/1/39 | 2,750,000 | 3,192,530 | ||
Reynoldsburg City School District (School Facilities Construction & Impt. Proj.): | ||||
0% 12/1/17 | 1,250,000 | 1,198,663 | ||
5% 12/1/32 | 1,500,000 | 1,651,455 | ||
Ross County Hosp. Facilities Rev. (Adena Health Sys. Proj.) Series 2008, 5.75% 12/1/35 | 2,600,000 | 2,942,290 | ||
South-Western City School District Franklin & Pickway County Series 2012 B, 5% 12/1/36 | 2,000,000 | 2,270,820 | ||
Springboro Cmnty. City School District 5.25% 12/1/20 (FSA Insured) | 2,780,000 | 3,251,933 | ||
St. Marys City School District: | ||||
5% 12/1/27 (Pre-Refunded to 6/1/18 @ 100) | 470,000 | 532,566 | ||
5% 12/1/35 | 2,190,000 | 2,398,992 | ||
5% 12/1/35 (Pre-Refunded to 6/1/18 @ 100) | 310,000 | 351,267 | ||
Strongsville Gen. Oblig. (Street Impt. Proj.) Series 2009, 5% 12/1/27 | 1,680,000 | 1,969,934 | ||
Sylvania City School District Series 2009, 5.25% 12/1/36 (Assured Guaranty Corp. Insured) | 7,055,000 | 7,664,764 | ||
Toledo City School District (School Facilities Impt. Proj.) Series 2009, 5.375% 12/1/35 | 1,000,000 | 1,131,710 | ||
Toledo Gen. Oblig. Series 2012 A, 5% 12/1/20 | 1,635,000 | 1,855,104 | ||
Univ. of Akron Gen. Receipts Series A, 5.25% 1/1/30 (FSA Insured) | 3,000,000 | 3,339,420 | ||
Univ. of Cincinnati Gen. Receipts: | ||||
Series 2008 C: | ||||
5% 6/1/22 (FSA Insured) | 1,000,000 | 1,113,560 | ||
5% 6/1/23 (FSA Insured) | 2,000,000 | 2,222,900 | ||
5% 6/1/24 (FSA Insured) | 2,000,000 | 2,216,580 | ||
Series 2010 F, 5% 6/1/32 | 2,000,000 | 2,270,420 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Ohio - continued | ||||
Univ. of Cincinnati Gen. Receipts: - continued | ||||
Series 2012 A: | ||||
5% 6/1/22 | $ 2,000,000 | $ 2,394,180 | ||
5% 6/1/23 | 2,000,000 | 2,392,660 | ||
Series 2012 C: | ||||
4% 6/1/28 | 2,000,000 | 2,158,740 | ||
5% 6/1/24 | 1,230,000 | 1,477,562 | ||
Series 2013 A: | ||||
5% 6/1/33 | 4,085,000 | 4,713,967 | ||
5% 6/1/34 | 5,130,000 | 5,895,140 | ||
Wood County Hosp. Facilities Rev. (Hosp. Proj.) Series 2012, 5% 12/1/27 | 3,500,000 | 3,816,715 | ||
Wright State Univ. Gen. Receipts Series 2011 A, 5% 5/1/23 | 2,665,000 | 3,032,104 | ||
| 585,660,409 | |||
Virgin Islands - 0.6% | ||||
Virgin Islands Pub. Fin. Auth.: | ||||
(Cruzan Proj.) Series 2009 A, 6% 10/1/39 | 1,000,000 | 1,117,890 | ||
Series 2009 A, 6.75% 10/1/37 | 1,000,000 | 1,151,480 | ||
Series 2009 B, 5% 10/1/25 | 1,000,000 | 1,101,570 | ||
| 3,370,940 | |||
TOTAL INVESTMENT PORTFOLIO - 99.2% (Cost $558,200,513) | 594,011,227 |
NET OTHER ASSETS (LIABILITIES) - 0.8% | 4,682,620 | ||
NET ASSETS - 100% | $ 598,693,847 |
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
Other Information |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 36.7% |
Health Care | 19.9% |
Education | 18.7% |
Special Tax | 6.8% |
Electric Utilities | 5.7% |
Others* (Individually Less Than 5%) | 12.2% |
| 100.0% |
*Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2014 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $558,200,513) |
| $ 594,011,227 |
Cash |
| 7,649,292 |
Receivable for fund shares sold | 770,174 | |
Interest receivable | 5,364,937 | |
Prepaid expenses | 1,244 | |
Other receivables | 698 | |
Total assets | 607,797,572 | |
|
|
|
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 7,877,338 | |
Payable for fund shares redeemed | 233,056 | |
Distributions payable | 666,776 | |
Accrued management fee | 178,462 | |
Other affiliated payables | 104,474 | |
Other payables and accrued expenses | 43,619 | |
Total liabilities | 9,103,725 | |
|
|
|
Net Assets | $ 598,693,847 | |
Net Assets consist of: |
| |
Paid in capital | $ 562,564,577 | |
Undistributed net investment income | 108,838 | |
Accumulated undistributed net realized gain (loss) on investments | 209,718 | |
Net unrealized appreciation (depreciation) on investments | 35,810,714 | |
Net Assets, for 48,823,798 shares outstanding | $ 598,693,847 | |
Net Asset Value, offering price and redemption price per share ($598,693,847 ÷ 48,823,798 shares) | $ 12.26 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Income Fund
Financial Statements - continued
Statement of Operations
| Year ended December 31, 2014 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 20,898,407 |
|
|
|
Expenses | ||
Management fee | $ 2,045,891 | |
Transfer agent fees | 464,707 | |
Accounting fees and expenses | 139,851 | |
Custodian fees and expenses | 9,512 | |
Independent trustees' compensation | 2,520 | |
Registration fees | 18,438 | |
Audit | 54,607 | |
Legal | 6,676 | |
Miscellaneous | 4,592 | |
Total expenses before reductions | 2,746,794 | |
Expense reductions | (2,013) | 2,744,781 |
Net investment income (loss) | 18,153,626 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 348,994 |
Change in net unrealized appreciation (depreciation) on investment securities | 36,395,153 | |
Net gain (loss) | 36,744,147 | |
Net increase (decrease) in net assets resulting from operations | $ 54,897,773 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 18,153,626 | $ 19,807,873 |
Net realized gain (loss) | 348,994 | 6,754,186 |
Change in net unrealized appreciation (depreciation) | 36,395,153 | (48,075,074) |
Net increase (decrease) in net assets resulting | 54,897,773 | (21,513,015) |
Distributions to shareholders from net investment income | (18,150,443) | (19,811,349) |
Distributions to shareholders from net realized gain | - | (6,253,185) |
Total distributions | (18,150,443) | (26,064,534) |
Share transactions | 78,804,565 | 105,568,878 |
Reinvestment of distributions | 10,430,750 | 15,594,749 |
Cost of shares redeemed | (62,637,078) | (185,567,406) |
Net increase (decrease) in net assets resulting from share transactions | 26,598,237 | (64,403,779) |
Redemption fees | 886 | 4,719 |
Total increase (decrease) in net assets | 63,346,453 | (111,976,609) |
|
|
|
Net Assets | ||
Beginning of period | 535,347,394 | 647,324,003 |
End of period (including undistributed net investment income of $108,839 and undistributed net investment income of $79,669, respectively) | $ 598,693,847 | $ 535,347,394 |
Other Information Shares | ||
Sold | 6,573,215 | 8,821,191 |
Issued in reinvestment of distributions | 867,797 | 1,318,073 |
Redeemed | (5,248,709) | (15,740,658) |
Net increase (decrease) | 2,192,303 | (5,601,394) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 11.48 | $ 12.39 | $ 12.01 | $ 11.38 | $ 11.60 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .384 | .392 | .421 | .443 | .447 |
Net realized and unrealized gain (loss) | .780 | (.779) | .426 | .630 | (.216) |
Total from investment operations | 1.164 | (.387) | .847 | 1.073 | .231 |
Distributions from net investment income | (.384) | (.392) | (.420) | (.443) | (.447) |
Distributions from net realized gain | - | (.131) | (.047) | - | (.004) |
Total distributions | (.384) | (.523) | (.467) | (.443) | (.451) |
Redemption fees added to paid in capital B, D | - | - | - | - | - |
Net asset value, end of period | $ 12.26 | $ 11.48 | $ 12.39 | $ 12.01 | $ 11.38 |
Total ReturnA | 10.26% | (3.16)% | 7.14% | 9.62% | 1.95% |
Ratios to Average Net Assets C |
|
|
|
|
|
Expenses before reductions | .48% | .48% | .49% | .49% | .49% |
Expenses net of fee waivers, if any | .48% | .48% | .49% | .49% | .49% |
Expenses net of all reductions | .48% | .48% | .49% | .49% | .48% |
Net investment income (loss) | 3.20% | 3.28% | 3.42% | 3.81% | 3.82% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 598,694 | $ 535,347 | $ 647,324 | $ 554,942 | $ 533,024 |
Portfolio turnover rate | 7% | 17% | 14% | 8% | 7% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Investment Changes/Performance (Unaudited)
Effective Maturity Diversification | |||
Days | % of fund's investments 12/31/14 | % of fund's investments 6/30/14 | % of fund's |
1 - 7 | 74.9 | 76.5 | 75.9 |
8 - 30 | 1.0 | 0.1 | 2.4 |
31 - 60 | 2.7 | 2.7 | 3.1 |
61 - 90 | 2.9 | 4.7 | 1.7 |
91 - 180 | 13.0 | 7.4 | 10.0 |
> 180 | 5.5 | 8.6 | 6.9 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940. |
Weighted Average Maturity | |||
| 12/31/14 | 6/30/14 | 12/31/13 |
Fidelity Ohio Municipal Money Market Fund | 37 Days | 42 Days | 38 Days |
Ohio Tax-Free Money Market Funds Average* | 36 Days | 42 Days | 39 Days |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Weighted Average Life | |||
| 12/31/14 | 6/30/14 | 12/31/13 |
Fidelity Ohio Municipal Money Market Fund | 38 Days | 42 Days | 38 Days |
Weighted Average Life (WAL) is the weighted average of the life of the securities held in a fund or portfolio and can be used as a measure of sensitivity to changes in liquidity and/or credit risk. Generally, the higher the value, the greater the sensitivity. WAL is based on the dollar-weighted average length of time until principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. The difference between WAM and WAL is that WAM takes into account interest rate resets and WAL does not. WAL for money market funds is not the same as WAL of a mortgage- or asset-backed security. |
* Source: iMoneyNet, Inc. |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | Variable Rate |
| ![]() | Variable Rate |
| ||
![]() | Other Municipal |
| ![]() | Other Municipal |
| ||
![]() | Investment |
| ![]() | Investment |
| ||
![]() | Net Other Assets (Liabilities) 5.4% |
| ![]() | Net Other Assets (Liabilities) 1.9% |
|
Current and Historical Seven-Day Yields
| 12/31/14 | 9/30/14 | 6/30/14 | 3/31/14 | 12/31/13 |
Fidelity Ohio Municipal Money Market Fund | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it's possible to lose money investing in the Fund. A portion of the Fund's expenses was reimbursed and/or waived. Absent such reimbursements and/or waivers the yield for the period ending December 31, 2014, the most recent period shown in the table, would have been -0.44%.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Investments December 31, 2014
Showing Percentage of Net Assets
Variable Rate Demand Note - 61.7% | |||
Principal Amount | Value | ||
Alabama - 0.0% | |||
Decatur Indl. Dev. Board Exempt Facilities Rev. (Nucor Steel Decatur LLC Proj.) Series 2003 A, 0.24% 1/7/15, VRDN (a)(d) | $ 700,000 | $ 700,000 | |
Delaware - 0.0% | |||
Delaware Econ. Dev. Auth. Rev. (Delmarva Pwr. & Lt. Co. Proj.) Series 1994, 0.1% 1/2/15, VRDN (a)(d) | 700,000 | 700,000 | |
Louisiana - 0.3% | |||
Saint James Parish Gen. Oblig. (Nucor Steel Louisiana LLC Proj.): | |||
Series 2010 A1, 0.22% 1/7/15, VRDN (a) | 600,000 | 600,000 | |
Series 2010 B1, 0.2% 1/7/15, VRDN (a) | 2,900,000 | 2,900,000 | |
| 3,500,000 | ||
Montana - 0.1% | |||
Forsyth Poll. Cont. Rev. Series 2008 A, 0.21% 1/7/15, VRDN (a)(d) | 750,000 | 750,000 | |
Nebraska - 0.1% | |||
Stanton County Indl. Dev. Rev. (Nucor Corp. Proj.) Series 1996, 0.24% 1/7/15, VRDN (a)(d) | 700,000 | 700,000 | |
Nevada - 0.0% | |||
Clark County Arpt. Rev. Series 2008 C3, 0.04% 1/7/15, LOC Landesbank Baden-Wurttemberg, VRDN (a)(d) | 500,000 | 500,000 | |
New Jersey - 0.1% | |||
Salem County Poll. Cont. Fin. Auth. Rev. (Pub. Svc. Elec. and Gas Co. Proj.): | |||
Series 2003 B1, 0.17% 1/7/15, VRDN (a) | 400,000 | 400,000 | |
Series 2012 A, 0.18% 1/7/15, VRDN (a)(d) | 700,000 | 700,000 | |
| 1,100,000 | ||
New York - 0.0% | |||
Dutchess County Indl. Dev. Agcy. Civic Facility Rev. (Lutheran Ctr. at Poughkeepsie, Inc. Proj.) 0.11% 1/7/15, LOC KeyBank NA, VRDN (a) | 100,000 | 100,000 | |
Ohio - 61.0% | |||
Allen County Hosp. Facilities Rev.: | |||
(Catholic Healthcare Partners Proj.): | |||
Series 2008 A, 0.03% 1/2/15, LOC Bank of America NA, VRDN (a) | 35,415,000 | 35,415,000 | |
Series 2010 C, 0.04% 1/2/15, LOC MUFG Union Bank NA, VRDN (a) | 18,700,000 | 18,700,000 | |
Series 2012 B, 0.04% 1/7/15, VRDN (a) | 99,800,000 | 99,800,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Alliance Hosp. Rev. (Alliance Obligated Group Proj.) Series 2003, 0.01% 1/2/15, LOC JPMorgan Chase Bank, VRDN (a) | $ 24,395,000 | $ 24,395,000 | |
Athens County Port Auth. Hsg. 0.04% 1/7/15, LOC Barclays Bank PLC, VRDN (a) | 13,550,000 | 13,550,000 | |
Cincinnati Wtr. Sys. Rev. Participating VRDN Series MS 3280, 0.05% 1/7/15 (Liquidity Facility Morgan Stanley Bank, West Valley City Utah) (a)(e) | 3,330,000 | 3,330,000 | |
Cleveland Arpt. Sys. Rev.: | |||
Series 2008 D, 0.06% 1/7/15, LOC Bank of America NA, VRDN (a) | 2,985,000 | 2,985,000 | |
Series 2009 D, 0.06% 1/7/15, LOC Bank of America NA, VRDN (a) | 14,200,000 | 14,200,000 | |
Cleveland Wtrwks. Rev. Series 2008 Q, 0.04% 1/7/15, LOC Bank of New York, New York, VRDN (a) | 9,800,000 | 9,800,000 | |
Cleveland-Cuyahoga County Port Auth. Edl. Facility Rev. (Laurel School Proj.) Series 2008, 0.03% 1/2/15, LOC JPMorgan Chase Bank, VRDN (a) | 2,700,000 | 2,700,000 | |
Columbus Gen. Oblig.: | |||
(San. Swr. Proj.) Series 2006 1, 0.04% 1/7/15, VRDN (a) | 14,175,000 | 14,175,000 | |
Participating VRDN Series Clipper 08 2, 0.04% 1/7/15 (Liquidity Facility State Street Bank & Trust Co., Boston) (a)(e) | 4,000,000 | 4,000,000 | |
Columbus Swr. Sys. Rev. Participating VRDN: | |||
Series BBT 08 13, 0.04% 1/7/15 (Liquidity Facility Branch Banking & Trust Co.) (a)(e) | 6,400,000 | 6,400,000 | |
Series Putters 2456, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 8,405,000 | 8,405,000 | |
Cuyahoga County Hosp. Facilities Rev. (Sisters of Charity of Saint Augustine Health Sys. Proj.) Series 2000, 0.03% 1/7/15, LOC PNC Bank NA, VRDN (a) | 3,200,000 | 3,200,000 | |
Franklin County Hosp. Rev.: | |||
(OhioHealth Corp. Proj.) Series D, 0.04% 1/7/15, LOC Northern Trust Co., VRDN (a) | 10,455,000 | 10,455,000 | |
(U.S. Health Corp. of Columbus Proj.): | |||
Series 1996 A, 0.04% 1/7/15, LOC Northern Trust Co., VRDN (a) | 12,940,000 | 12,940,000 | |
Series 1996 B, 0.04% 1/7/15, LOC Northern Trust Co., VRDN (a) | 11,950,000 | 11,950,000 | |
Participating VRDN Series BC 11 21B, 0.06% 1/7/15 (Liquidity Facility Barclays Bank PLC) (a)(e) | 2,145,000 | 2,145,000 | |
Series 1998, 0.04% 1/7/15, LOC Northern Trust Co., VRDN (a) | 1,525,000 | 1,525,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Franklin County Hosp. Rev.: - continued | |||
Series 2009 A, 0.02% 1/7/15 (Liquidity Facility Barclays Bank PLC), VRDN (a) | $ 5,700,000 | $ 5,700,000 | |
Series 2009 B, 0.02% 1/7/15 (Liquidity Facility Barclays Bank PLC), VRDN (a) | 7,600,000 | 7,600,000 | |
Hamilton County Health Care Facilities Rev. (The Children's Home of Cincinnati Proj.) Series 2009, 0.04% 1/7/15, LOC U.S. Bank NA, Cincinnati, VRDN (a) | 3,080,000 | 3,080,000 | |
Hamilton County Hosp. Facilities Rev.: | |||
(Children's Hosp. Med. Ctr. Proj.): | |||
Series 1997 A, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (a) | 10,585,000 | 10,585,000 | |
Series 2000, 0.04% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | 12,435,000 | 12,435,000 | |
Series 2002 I, 0.04% 1/7/15, LOC U.S. Bank NA, Cincinnati, VRDN (a) | 18,835,000 | 18,835,000 | |
Series 2007 M, 0.06% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | 10,015,000 | 10,015,000 | |
(Elizabeth Gamble Deaconess Home Assoc. Proj.) Series 2002 B, 0.03% 1/7/15, LOC PNC Bank NA, VRDN (a) | 15,300,000 | 15,300,000 | |
Hamilton County Student Hsg. Rev. (Block 3 Proj.) Series 2004, 0.21% 1/7/15, LOC Bank of New York, New York, LOC Citizens Bank of Pennsylvania, VRDN (a) | 12,015,000 | 12,015,000 | |
Lake County Indl. Dev. Rev. (Norshar Co. Proj.) 0.26% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a)(d) | 1,645,000 | 1,645,000 | |
Lorain County Port Auth. Edl. Facilities Rev. (St. Ignatius High School Proj.) 0.05% 1/7/15, LOC U.S. Bank NA, Cincinnati, VRDN (a) | 1,230,000 | 1,230,000 | |
Lucas County Hosp. Rev. Participating VRDN Series BC 11 31B, 0.06% 1/7/15 (Liquidity Facility Barclays Bank PLC) (a)(e) | 8,475,000 | 8,475,000 | |
Middletown Dev. Rev. (Bishop Fenwick High School Proj.) 0.1% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | 8,925,000 | 8,925,000 | |
Middletown Hosp. Facilities Rev.: | |||
Series 2008 A, 0.02% 1/7/15, LOC PNC Bank NA, VRDN (a) | 16,400,000 | 16,400,000 | |
Series 2008 B, 0.02% 1/7/15, LOC PNC Bank NA, VRDN (a) | 7,625,000 | 7,625,000 | |
Ohio Air Quality Dev. Auth. Rev.: | |||
(Dayton Pwr. & Lt. Co. Proj.): | |||
Series 2008 A, 0.05% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a)(d) | 29,600,000 | 29,600,000 | |
Series 2008 B, 0.04% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a)(d) | 22,400,000 | 22,400,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Air Quality Dev. Auth. Rev.: - continued | |||
(Ohio Valley Elec. Corp. Proj.): | |||
Series 2009 B, 0.04% 1/7/15, LOC Bank of Nova Scotia, VRDN (a) | $ 11,000,000 | $ 11,000,000 | |
Series 2009 C, 0.05% 1/7/15, LOC Bank of Tokyo-Mitsubishi UFJ Ltd., VRDN (a) | 11,150,000 | 11,150,000 | |
Series 2009 D, 0.04% 1/7/15, LOC Bank of Tokyo-Mitsubishi UFJ Ltd., VRDN (a) | 24,400,000 | 24,400,000 | |
(TimkenSteel Proj.): | |||
Series 2001, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (a) | 6,500,000 | 6,500,000 | |
Series 2003, 0.04% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a) | 8,500,000 | 8,500,000 | |
Ohio Gen. Oblig.: | |||
(Common Schools Proj.): | |||
Series 2005 A, 0.02% 1/7/15, VRDN (a) | 5,115,000 | 5,115,000 | |
Series 2005 B, 0.02% 1/7/15, VRDN (a) | 5,770,000 | 5,770,000 | |
Series 2006 C, 0.03% 1/7/15, VRDN (a) | 4,090,000 | 4,090,000 | |
(Infrastructure Impt. Proj.): | |||
Series 2003 B, 0.04% 1/7/15, VRDN (a) | 2,255,000 | 2,255,000 | |
Series 2003 D, 0.04% 1/7/15, VRDN (a) | 1,595,000 | 1,595,000 | |
Ohio Higher Edl. Facility Commission Rev.: | |||
(Case Western Reserve Univ. Proj.) Series 2008 A, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (a) | 41,900,000 | 41,900,000 | |
(Xavier Univ. Proj.) Series 2008 A, 0.04% 1/7/15, LOC U.S. Bank NA, Cincinnati, VRDN (a) | 12,000,000 | 12,000,000 | |
Ohio Hosp. Facilities Rev. Participating VRDN Series Putters 3558, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (a)(e) | 2,700,000 | 2,700,000 | |
Ohio Hsg. Fin. Agcy. Mtg. Rev.: | |||
(Mtg.-Backed Securities Prog.) Series F, 0.05% 1/7/15 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(d) | 12,360,000 | 12,360,000 | |
Participating VRDN Series Merlots 06 A2, 0.09% 1/7/15 (Liquidity Facility Wells Fargo Bank NA) (a)(d)(e) | 440,000 | 440,000 | |
Series 2004 D, 0.05% 1/7/15 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(d) | 7,000,000 | 7,000,000 | |
Ohio Hsg. Fin. Agcy. Multi-family Hsg. Rev.: | |||
(Pedcor Invts. Willow Lake Apts. Proj.) Series B, 0.185% 1/7/15, LOC Fed. Home Ln. Bank, Indianapolis, VRDN (a)(d) | 405,000 | 405,000 | |
(Wingate at Belle Meadows Proj.) 0.08% 1/7/15, LOC Fed. Home Ln. Bank, Cincinnati, VRDN (a)(d) | 8,555,000 | 8,555,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Hsg. Fin. Agcy. Residential Mtg. Rev.: | |||
(Mtg.-Backed Securities Prog.) Series 2008 D, 0.02% 1/7/15 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(d) | $ 14,100,000 | $ 14,100,000 | |
Series 2008 B, 0.03% 1/7/15 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(d) | 12,290,000 | 12,290,000 | |
Series 2008 H, 0.05% 1/7/15 (Liquidity Facility Fed. Home Ln. Bank, Cincinnati), VRDN (a)(d) | 4,100,000 | 4,100,000 | |
Ohio St Wtr. Dev. Auth. Re (TimkenSteel Proj.) Series 2001, 0.04% 1/7/15, LOC Northern Trust Co., VRDN (a) | 3,200,000 | 3,200,000 | |
Ohio State Univ. Gen. Receipts: | |||
Series 1997, 0.04% 1/7/15, VRDN (a) | 2,060,000 | 2,060,000 | |
Series 2001, 0.03% 1/7/15, VRDN (a) | 17,880,000 | 17,880,000 | |
Series 2005 B, 0.02% 1/7/15, VRDN (a) | 8,300,000 | 8,300,000 | |
Series 2008 B, 0.02% 1/7/15, VRDN (a) | 7,320,000 | 7,320,000 | |
Series 2010 E, 0.02% 1/7/15, VRDN (a) | 50,200,000 | 50,200,000 | |
Series 2014 B1, 0.02% 1/7/15, VRDN (a) | 8,500,000 | 8,500,000 | |
Series 2014 B2, 0.02% 1/7/15, VRDN (a) | 12,500,000 | 12,500,000 | |
Ohio Wtr. Dev. Auth. (Waste Mgmt., Inc. Proj.) Series B, 0.05% 1/7/15, LOC Bank of America NA, VRDN (a)(d) | 12,100,000 | 12,100,000 | |
Village of Indian Hill Econ. Dev. Rev. (Cincinnati Country Day School Proj.) Series 1999, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (a) | 4,345,000 | 4,345,000 | |
Wood County Indl. Dev. Rev. (CMC Group Proj.) Series 2001, 0.18% 1/7/15, LOC PNC Bank NA, VRDN (a)(d) | 455,000 | 455,000 | |
Zanesville-Muskingum Port Auth. Indl. Dev. Rev. (Almana II LLC Proj.) Series 2000, 0.3% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a)(d) | 350,000 | 350,000 | |
| 815,370,000 | ||
Texas - 0.1% | |||
Gulf Coast Waste Disp. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A, 0.08% 1/7/15, LOC JPMorgan Chase Bank, VRDN (a)(d) | 600,000 | 600,000 | |
Port Arthur Navigation District Envir. Facilities Rev. (Motiva Enterprises LLC Proj.): | |||
Series 2001 A, 0.2% 1/2/15, VRDN (a) | 300,000 | 300,000 | |
Series 2004, 0.16% 1/7/15, VRDN (a)(d) | 900,000 | 900,000 | |
| 1,800,000 | ||
TOTAL VARIABLE RATE DEMAND NOTE (Cost $825,220,000) | 825,220,000 | ||
Other Municipal Debt - 24.2% | |||
Principal Amount | Value | ||
Kentucky - 0.0% | |||
Jefferson County Poll. Cont. Rev. Bonds (Louisville Gas & Elec. Co. Proj.) Series 2001 A, 0.23% tender 1/8/15, CP mode | $ 400,000 | $ 400,000 | |
Massachusetts - 0.4% | |||
Massachusetts Indl. Fin. Agcy. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1992, 0.25% tender 1/26/15, CP mode | 2,900,000 | 2,900,000 | |
Massachusetts State Dev. Fin. Agcy. Elec. Util. Rev. Bonds (Nantucket Elec. Co. Proj.) Series 2007, 0.32% tender 1/21/15, CP mode (d) | 1,700,000 | 1,700,000 | |
| 4,600,000 | ||
New Hampshire - 0.1% | |||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1990 A2, 0.32% tender 1/26/15, CP mode (d) | 1,700,000 | 1,700,000 | |
Ohio - 23.6% | |||
American Muni. Pwr. Bonds (Omega Joint Venture 6 Proj.) 0.24%, tender 2/15/15 (a)(f) | 975,000 | 975,000 | |
Avon Gen. Oblig. BAN Series 2014, 1% 9/9/15 | 3,000,000 | 3,015,432 | |
Beachwood Gen. Oblig. BAN Series 2014, 1% 8/5/15 | 5,200,000 | 5,226,095 | |
Berea BAN 0.75% 3/25/15 | 4,127,500 | 4,132,779 | |
Cleveland Wtr. Rev. Bonds Series 2011 W, 5% 1/1/15 | 1,200,000 | 1,200,000 | |
Columbus Gen. Oblig.: | |||
BAN Series 2014, 1% 8/28/15 | 9,000,000 | 9,050,563 | |
Bonds: | |||
Series 2005 B, 5% 6/15/15 | 1,000,000 | 1,022,136 | |
Series 2010 A, 5% 6/1/15 | 1,380,000 | 1,407,340 | |
Series 2011 A, 5% 7/1/15 | 1,500,000 | 1,536,217 | |
Series 2012 4, 5% 8/15/15 | 1,000,000 | 1,030,162 | |
Series 2013 B, 4% 8/15/15 | 4,575,000 | 4,684,831 | |
3% 2/15/15 | 14,520,000 | 14,571,502 | |
Delaware Gen. Oblig. BAN 1% 4/22/15 | 13,200,000 | 13,233,639 | |
Franklin County Hosp. Rev. Bonds Series 2011 C, 0.07%, tender 6/3/15 (a) | 14,100,000 | 14,100,000 | |
Franklin County Rev. Bonds Series 2013 OH, 0.11%, tender 7/29/15 (a) | 12,500,000 | 12,500,000 | |
Hilliard Gen. Oblig. BAN Series B, 1% 4/28/15 | 3,285,000 | 3,293,592 | |
Lakewood Gen. Oblig. BAN Series 2014, 1% 4/10/15 | 4,150,000 | 4,158,844 | |
Lebanon Gen. Oblig. BAN 1% 4/21/15 | 3,465,000 | 3,473,615 | |
Lima Gen. Oblig. BAN 1.25% 3/17/15 | 3,415,000 | 3,421,853 | |
Mason City School District BAN 1.25% 1/28/15 | 4,800,000 | 4,803,646 | |
Mason Gen. Oblig. BAN: | |||
Series 2014, 1.25% 12/15/15 | 3,000,000 | 3,029,370 | |
Other Municipal Debt - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Mason Gen. Oblig. BAN: - continued | |||
1% 6/25/15 | $ 2,500,000 | $ 2,509,327 | |
Ohio Bldg. Auth. Bonds Series 2011 B, 5% 10/1/15 | 3,000,000 | 3,108,600 | |
Ohio Cap. Facilities Lease Bonds: | |||
(Adult Correctional Bldg. Funds Proj.) Series 2014 A, 2% 4/1/15 | 1,455,000 | 1,461,436 | |
(Pub. Safety Bldg. Funds Proj.) Series 2014 A, 2% 4/1/15 | 740,000 | 743,273 | |
Ohio Dept. of Administrative Svcs. Ctfs. of Prtn. Bonds: | |||
(Enterprise Data Ctr. Solutions Proj.) Series 2014, 5% 9/1/15 | 1,360,000 | 1,402,873 | |
(Multi-Agcy. Radio Communications Sys. Proj.) Series 2014, 5% 9/1/15 | 455,000 | 469,344 | |
Ohio Gen. Oblig. Bonds: | |||
(Higher Ed. Proj.) Series 2010 A, 5% 8/1/15 | 2,000,000 | 2,056,781 | |
Series 2002 A, 5.375% 2/1/15 | 5,495,000 | 5,519,246 | |
Series 2009 A, 5% 11/1/15 | 1,900,000 | 1,975,889 | |
Series 2009 B, 5% 8/1/15 | 5,990,000 | 6,158,701 | |
Series 2009 C, 5% 8/1/15 | 1,000,000 | 1,028,203 | |
Series 2012 B, 4% 3/15/15 | 4,440,000 | 4,474,945 | |
Series 2013 A, 2% 5/1/15 | 3,200,000 | 3,220,097 | |
Series 2014 R, 4% 5/1/15 | 12,500,000 | 12,659,074 | |
Ohio Higher Edl. Facility Commission Rev. Bonds: | |||
(Cleveland Clinic Foundation Proj.) Series 2008 A, 5% 1/1/15 | 1,000,000 | 1,000,000 | |
(The Cleveland Clinic Foundation Proj.): | |||
Series 2008 B5: | |||
0.1% tender 2/4/15, CP mode | 12,500,000 | 12,500,000 | |
0.1% tender 3/5/15, CP mode | 12,000,000 | 12,000,000 | |
0.1% tender 5/6/15, CP mode | 12,500,000 | 12,500,000 | |
0.1% tender 5/20/15, CP mode | 12,800,000 | 12,800,000 | |
0.1% tender 6/3/15, CP mode | 12,800,000 | 12,800,000 | |
Series 2008 B6: | |||
0.1% tender 3/5/15, CP mode | 12,600,000 | 12,600,000 | |
0.1% tender 4/6/15, CP mode | 12,500,000 | 12,500,000 | |
0.1% tender 5/6/15, CP mode | 12,900,000 | 12,900,000 | |
0.1% tender 5/20/15, CP mode | 12,800,000 | 12,800,000 | |
Series 2013 A2, 0.34% 1/1/16 (a) | 1,615,000 | 1,618,707 | |
Ohio Hosp. Facilities Rev. Bonds Series 2011 A, 3% 1/1/15 | 2,000,000 | 2,000,000 | |
Ohio State Univ. Gen. Receipts Bonds: | |||
Series 2005 A, 4.75% 6/1/15 | 1,000,000 | 1,018,971 | |
Series 2010 A, 5% 12/1/15 | 2,235,000 | 2,332,961 | |
Other Municipal Debt - continued | |||
Principal Amount | Value | ||
Ohio - continued | |||
Ohio Wtr. Dev. Auth. Wtr. Poll. Cont. Rev. Bonds: | |||
Series 2011 A, 5% 6/1/15 | $ 1,850,000 | $ 1,887,489 | |
Series 2014 B, 1% 6/1/15 | 1,065,000 | 1,069,005 | |
Stow Gen. Oblig. BAN 1% 5/1/15 | 4,125,000 | 4,135,822 | |
Strongsville Gen. Oblig. BAN: | |||
1% 10/15/15 | 2,300,000 | 2,314,435 | |
1.5% 10/15/15 | 650,000 | 656,627 | |
Univ. of Cincinnati Gen. Receipts BAN Series 2014 A, 1% 5/8/15 | 12,800,000 | 12,837,782 | |
Westerville Gen. Oblig. BAN 1.25% 12/1/15 | 8,000,000 | 8,078,916 | |
Willoughby BAN Series 2014, 1% 6/23/15 | 5,700,000 | 5,722,648 | |
| 314,727,768 | ||
West Virginia - 0.1% | |||
Grant County Cmnty. Solid Waste Disp. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 1996, 0.32% tender 1/22/15, CP mode (d) | 400,000 | 400,000 | |
Grant County Poll. Cont. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 1986, 0.45% tender 1/15/15, CP mode (d) | 800,000 | 800,000 | |
| 1,200,000 | ||
TOTAL OTHER MUNICIPAL DEBT (Cost $322,627,768) | 322,627,768 | ||
Investment Company - 8.7% | |||
Shares |
| ||
Fidelity Municipal Cash Central Fund, 0.04% (b)(c) (Cost $116,484,000) | 116,484,000 | 116,484,000 | |
TOTAL INVESTMENT PORTFOLIO - 94.6% (Cost $1,264,331,768) | 1,264,331,768 | ||
NET OTHER ASSETS (LIABILITIES) - 5.4% | 72,603,870 | ||
NET ASSETS - 100% | $ 1,336,935,638 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
CP | - | COMMERCIAL PAPER |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
Legend |
(a) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(b) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(c) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(e) Provides evidence of ownership in one or more underlying municipal bonds. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $975,000 or 0.1% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
American Muni. Pwr. (Omega Joint Venture 6 Proj.) 0.24%, tender 2/15/15 | 7/30/04 | $ 975,000 |
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 | $ 76,970 |
Other Information |
The date shown for securities represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2014 | |
|
|
|
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $1,147,847,768) | $ 1,147,847,768 |
|
Fidelity Central Funds (cost $116,484,000) | 116,484,000 |
|
Total Investments (cost $1,264,331,768) |
| $ 1,264,331,768 |
Cash |
| 57,139,659 |
Receivable for investments sold | 167 | |
Receivable for fund shares sold | 19,279,763 | |
Interest receivable | 1,533,981 | |
Distributions receivable from Fidelity Central Funds | 3,956 | |
Prepaid expenses | 2,938 | |
Other receivables | 4,727 | |
Total assets | 1,342,296,959 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 5,108,756 | |
Distributions payable | 741 | |
Accrued management fee | 43,895 | |
Other affiliated payables | 165,648 | |
Other payables and accrued expenses | 42,281 | |
Total liabilities | 5,361,321 | |
|
|
|
Net Assets | $ 1,336,935,638 | |
Net Assets consist of: |
| |
Paid in capital | $ 1,336,943,810 | |
Distribution in excess of net investment income | (8,172) | |
Net Assets, for 1,336,445,521 shares outstanding | $ 1,336,935,638 | |
Net Asset Value, offering price and redemption price per share ($1,336,935,638 ÷ 1,336,445,521 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Ohio Municipal Money Market Fund
Financial Statements - continued
Statement of Operations
| Year ended December 31, 2014 | |
|
|
|
Investment Income |
|
|
Interest |
| $ 1,002,658 |
Income from Fidelity Central Funds |
| 76,970 |
Total income |
| 1,079,628 |
|
|
|
Expenses | ||
Management fee | $ 4,618,420 | |
Transfer agent fees | 1,705,253 | |
Accounting fees and expenses | 138,692 | |
Custodian fees and expenses | 15,659 | |
Independent trustees' compensation | 5,590 | |
Registration fees | 46,602 | |
Audit | 38,336 | |
Legal | 8,954 | |
Miscellaneous | 7,648 | |
Total expenses before reductions | 6,585,154 | |
Expense reductions | (5,624,720) | 960,434 |
Net investment income (loss) | 119,194 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 86,075 |
Net increase in net assets resulting from operations | $ 205,269 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 119,194 | $ 126,765 |
Net realized gain (loss) | 86,075 | 176 |
Net increase in net assets resulting | 205,269 | 126,941 |
Distributions to shareholders from net investment income | (127,774) | (126,267) |
Distributions to shareholders from net realized gain | (76,622) | - |
Total distributions | (204,396) | (126,267) |
Share transactions at net asset value of $1.00 per share | 3,063,824,579 | 3,090,215,840 |
Reinvestment of distributions | 191,337 | 119,686 |
Cost of shares redeemed | (3,059,401,718) | (3,100,402,579) |
Net increase (decrease) in net assets and shares resulting from share transactions | 4,614,198 | (10,067,053) |
Total increase (decrease) in net assets | 4,615,071 | (10,066,379) |
|
|
|
Net Assets | ||
Beginning of period | 1,332,320,567 | 1,342,386,946 |
End of period (including distributions in excess of net investment income of $8,172, and $0, respectively) | $ 1,336,935,638 | $ 1,332,320,567 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | - | - | - | - | - |
Net realized and unrealized gain (loss) | - D | - | - | - | - |
Total from investment operations D | - | - | - | - | - |
Distributions from net investment income D | - | - | - | - | - |
Distributions from net realized gain | - D | - | - | - | - |
Total distributions D | - | - | - | - | - |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total ReturnA | .02% | .01% | .01% | .01% | .01% |
Ratios to Average Net AssetsB, C |
|
|
|
|
|
Expenses before reductions | .51% | .52% | .52% | .52% | .52% |
Expenses net of fee waivers, if any | .08% | .12% | .19% | .24% | .37% |
Expenses net of all reductions | .08% | .12% | .19% | .24% | .37% |
Net investment income (loss) | .01% | .01% | .01% | .01% | .01% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 1,336,936 | $ 1,332,321 | $ 1,342,387 | $ 1,106,601 | $ 1,010,974 |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed or waived or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements, waivers or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2014
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. Share transactions on the Statement of Changes in Net Assets may contain exchanges between funds. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Annual Report
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Income Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Income Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
For the Income Fund, debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Municipal securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices.
When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Investment Valuation - continued
For the Money Market Fund, as permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates fair value. The amortized cost of an instrument is determined by valuing it at its original cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.
For the Income Fund, changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of December 31, 2014, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. 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. Capital accounts are not adjusted for temporary book-tax differences which 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 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized | Gross unrealized | Net unrealized |
Fidelity Ohio Municipal Income Fund | $ 558,177,846 | $ 36,331,690 | $ (498,309) | $ 35,833,381 |
Fidelity Ohio Municipal Money Market Fund | 1,264,331,768 | - | - | - |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed | Undistributed | Undistributed | Net unrealized |
Fidelity Ohio Municipal Income Fund | $ 86,717 | $ 1 | $ 300,718 | $ 35,833,381 |
Fidelity Ohio Municipal Money Market Fund | - | - | - | - |
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax character of distributions paid was as follows:
December 31, 2014 |
|
|
|
|
| Tax-Exempt | Ordinary | Long-term | Total |
Fidelity Ohio Municipal Income Fund | $ 18,150,443 | $ - | $ - | $ 18,150,443 |
Fidelity Ohio Municipal Money Market Fund | 127,774 | - | 76,622 | 204,396 |
December 31, 2013 |
|
|
|
| Tax-Exempt | Long-term | Total |
Fidelity Ohio Municipal Income Fund | $ 19,811,349 | $ 6,253,185 | $ 26,064,534 |
Fidelity Ohio Municipal Money Market Fund | 126,267 | - | 126,267 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Income Fund less than 30 days may be subject to a redemption fee equal to .50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Funds transacted in 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. The securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's Schedule of Investments. The 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.
Restricted Securities. The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable Fund's Schedule of Investments.
Annual Report
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $63,188,202 and $38,469,607, respectively.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Funds' financial statements and related disclosures.
New Rule Issuance. In July 2014, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-9616, Money Market Fund Reform; Amendments to Form PF, which amends the rules governing money market funds. The final amendments impose different implementation dates for the changes that certain money market funds will need to make. Management is currently evaluating the implication of these amendments and their impact of the Final Rule to the Money Market Fund's financial statements and related disclosures.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized 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 the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, each Fund's annual management fee rate expressed as a percentage of each Fund's average net assets was as follows.
Fund Name | Individual Rate | Group Rate | Total |
Fidelity Ohio Municipal Income Fund | .25% | .11% | .36% |
Fidelity Ohio Municipal Money Market Fund | .25% | .11% | .36% |
Annual Report
Notes to Financial Statements - continued
5. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, under which FIIOC performs the activities associated with the Funds transfer agency, dividend disbursing and shareholder servicing functions. The Funds pay Citibank account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Ohio Municipal Income Fund | .08% |
Fidelity Ohio Municipal Money Market Fund | .13% |
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, under which FSC maintains each Fund's accounting records. The fee is paid to Citibank and is based on the level of average net assets for each month.
6. Committed Line of Credit.
The Income Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Fidelity Ohio Municipal Income Fund | $ 899 |
During the period, the Income Fund did not borrow on this line of credit.
7. Expense Reductions.
The investment adviser or its affiliates voluntarily agreed to waive certain fees for the Money Market Fund in order to maintain a minimum annualized yield of .01%. Such arrangements may be discontinued by the investment adviser at any time. For the period, the amount of the waiver was $5,615,437.
Annual Report
7. Expense Reductions - continued
In addition, through arrangements with each applicable Fund's custodian, 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 agent | Accounting |
Fidelity Ohio Municipal Income Fund | $ 1,988 | $ 25 | $ - |
Fidelity Ohio Municipal Money Market Fund | 5,743 | 3,533 | 7 |
8. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Fidelity Ohio Municipal Income Fund and Fidelity Ohio Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Ohio Municipal Income Fund (a fund of Fidelity Municipal Trust) and Fidelity Ohio Municipal Money Market Fund (a fund of Fidelity Municipal Trust II) at December 31, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Ohio Municipal Income Fund's and Fidelity Ohio Municipal Money Market Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2014 by correspondence with the custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 12, 2015
Annual Report
Trustees and Officers
The Trustees and officers of the trusts and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for Elizabeth S. Acton, James C. Curvey, and John Engler, each of the Trustees oversees 233 funds. Ms. Acton and Mr. Engler each oversees 215 funds. Mr. Curvey oversees 407 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. The Operations Committee also worked and continues to work with FMR to enhance the stress tests required under SEC regulations for money market funds. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
Annual Report
Trustees and Officers - continued
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
James C. Curvey (1935) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), and a Director of FMR Co., Inc. (2007-2014). |
Abigail P. Johnson (1961) | |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees | |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC, President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trusts or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
Year of Election or Appointment: 2013 Trustee | |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
John Engler (1948) | |
Year of Election or Appointment: 2014 Trustee | |
| Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association. |
Albert R. Gamper, Jr. (1942) | |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees | |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
Year of Election or Appointment: 2010 Trustee | |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
Year of Election or Appointment: 2008 Trustee | |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
Year of Election or Appointment: 2009 Trustee | |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees | |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation | |
Elizabeth Paige Baumann (1968) | |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer | |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Robert P. Brown (1963) | |
Year of Election or Appointment: 2012 Vice President of Fidelity's Bond Funds | |
| Mr. Brown also serves as Vice President of other funds. Mr. Brown serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director, Research of Fidelity Management & Research (U.K.) Inc. (2008-present), and is an employee of Fidelity Investments. Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's Money Market Funds (2010-2012). |
Marc Bryant (1966) | |
Year of Election or Appointment: 2013 Assistant Secretary | |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) | |
Year of Election or Appointment: 2013 President and Treasurer | |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) | |
Year of Election or Appointment: 2014 Chief Financial Officer | |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) | |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) | |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Limited (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Chris Maher (1972) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) | |
Year of Election or Appointment: 2014 Vice President | |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) | |
Year of Election or Appointment: 2009 Assistant Treasurer | |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) | |
Year of Election or Appointment: 2008 Chief Compliance Officer | |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (2014-present), FMR (2014-present), Fidelity Investments Money Management, Inc. (2014-present), and is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
Year of Election or Appointment: 2011 Deputy Treasurer | |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Fund | Pay Date | Record Date | Dividends | Capital Gains |
Fidelity Ohio Municipal | 2/09/15 | 2/06/15 | $0.000 | $0.008 |
Fidelity Ohio Municipal | 2/09/15 | 2/06/15 | $0.000 | $0.000 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended December 31, 2014, or, if subsequently determined to be different, the net capital gain of such year.
Fund | |
Fidelity Ohio Municipal Income Fund | $ 304,066 |
Fidelity Ohio Municipal Money Market Fund | $ 86,075 |
During fiscal year ended 2014, 100% of each fund's income dividends were free from federal income tax, and 0.12% and 15.38% of Fidelity Ohio Municipal Income Fund and Fidelity Ohio Municipal Money Market Fund 's income dividends, respectively, were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Ohio Municipal Income Fund / Fidelity Ohio Municipal Money Market Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the 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 relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by 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. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2014 meeting, the Board, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. 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 each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale exist and 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. In connection with separate internal corporate reorganizations involving Fidelity Management & Research (U.K.) Inc. (FMR U.K.) and Fidelity Management & Research (Japan) Inc. (FMR Japan), the Board approved certain non-material amendments to the funds' sub-advisory agreements with FMR U.K. and FMR Japan to reflect that, after these reorganizations, FMR Investment Management (UK) Limited and Fidelity Management & Research (Japan) Limited will carry on the business of FMR U.K. and FMR Japan, respectively. The Board noted that no changes to the portfolio managers or to the foreign research or investment advisory services provided to the funds were expected in connection with either reorganization and that the same personnel and resources would continue to be available to the funds at the new entities.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that each fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the funds, including the backgrounds of investment personnel of Fidelity, and also considered the funds' investment objectives, strategies, and related investment philosophies. 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 to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, 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 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 over time 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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
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 a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing a new Fidelity adviser, Fidelity SelectCo, LLC, to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance (for Fidelity Ohio Municipal Income Fund). The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.
Investment Performance (for Fidelity Ohio Municipal Money Market Fund). The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
Annual Report
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate peer groups, over appropriate time periods that may include full market cycles, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the fund's market value NAV over time and its resilience under various stressed conditions; and fund cash flows and other factors.
The Board recognizes that in interest rate environments where many competitors waive fees to maintain a minimum yield, relative money market fund performance on a net basis (after fees and expenses) may not be particularly meaningful due to miniscule performance differences among competitor funds. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate peer group for the most recent one-, three-, and five-year periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Management Fee. 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds' actual TMG %s are in the charts below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the charts and considered by the Board.
Annual Report
Fidelity Ohio Municipal Income Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2013.
Fidelity Ohio Municipal Money Market Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and above the median of its ASPG for 2013.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of each fund's total expense ratio, 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 that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the funds. As part of its review, the Board also considered the current and historical total expense ratios 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 expense ratio ranked below its competitive median for 2013. The Board considered that Fidelity has been voluntarily waiving part or all of the transfer agent fees and/or management fees to maintain a minimum yield for Fidelity Ohio Municipal Money Market Fund, and also noted that Fidelity retains the ability to be repaid in certain circumstances.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients. The Board noted the findings of the 2013 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was 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 servicing each fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with each fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
Annual Report
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 Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and 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 was satisfied that the profitability was not excessive.
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 as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that each fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under FMR's management plus sector fund assets previously under FMR's management and currently managed by Fidelity SelectCo, LLC). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity 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 benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
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 certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) the methodology with respect to competitive fund data and peer group classifications; (viii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (ix) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Limited
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(U.K.) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
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
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and Account Assistance 1-800-544-6666
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OFF-UANN-0215 1.787739.111
Fidelity®
Pennsylvania Municipal
Income Fund
and
Fidelity
Pennsylvania Municipal
Money Market Fund
Annual Report
December 31, 2014
(Fidelity Cover Art)
Contents
Shareholder Expense Example | An example of shareholder expenses. | |
Fidelity® Pennsylvania Municipal Income Fund | ||
Performance | How the fund has done over time. | |
Management's | The Portfolio Manager's review of fund performance and strategy. | |
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 | 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. | |
Report of Independent Registered Public Accounting Firm |
| |
Trustees and Officers |
| |
Distributions |
| |
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/proxyvotingresults 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.
Annual Report
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 LLC or an affiliated company. © 2015 FMR LLC. All rights reserved.
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 listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2014 to December 31, 2014).
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.
Annual Report
| Annualized | Beginning | Ending | Expenses Paid |
Fidelity Pennsylvania Municipal Income Fund | .48% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,032.30 | $ 2.46 |
Hypothetical A |
| $ 1,000.00 | $ 1,022.79 | $ 2.45 |
Fidelity Pennsylvania Municipal Money Market Fund | .06% |
|
|
|
Actual |
| $ 1,000.00 | $ 1,000.10 | $ .30 |
Hypothetical A |
| $ 1,000.00 | $ 1,024.90 | $ .31 |
A 5% return per year before expenses
B Annualized expense ratio reflects expenses net of applicable fee waivers.
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Annual Report
Fidelity® Pennsylvania Municipal Income Fund
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended December 31, 2014 | Past 1 | Past 5 | Past 10 |
Fidelity Pennsylvania Municipal Income Fund | 9.30% | 5.04% | 4.45% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Pennsylvania Municipal Income Fund on December 31, 2004. The chart shows how the value of your investment would have changed, and also shows how the Barclays® Municipal Bond Index performed over the same period.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Management's Discussion of Fund Performance
Market Recap: Municipal bonds posted a strong result for the 12 months ending December 31, 2014, driven by steady demand, tight supply and improving credit fundamentals. The Barclays® Municipal Bond Index returned 9.05%, significantly outperforming the U.S. investment-grade taxable bond market. Munis were driven, in part, by continued economic growth, declining long-term interest rates, and the relative attractiveness of U.S. markets amid global economic and political uncertainty. More specific to munis, prices rose as investors became more upbeat about the fundamental outlook of many state and local governments. Additionally, a steady stream of municipal bond cash flows - coupon payments, maturities and those due to early bond calls by issuers - fueled reinvestment. Meanwhile, investors took solace that the financial distress experienced by Puerto Rico, Detroit and a few California cities in bankruptcy did not expand to the broader market. Lastly, the tax advantages of munis had particular appeal due to the higher federal tax rates for top earners that took effect in 2013, as well as the new 3.8% Medicare tax on unearned, non-municipal investment income.
Comments from Mark Sommer, Portfolio Manager of Fidelity® Pennsylvania Municipal Income Fund: For year, the fund returned 9.30%, while the Barclays Pennsylvania Enhanced Municipal Bond Index returned 9.07%. I kept the fund's interest rate sensitivity in line with the benchmark, and evaluated bonds based on their yields, as well as their potential for price appreciation. Given that investment approach, the fund outpaced its benchmark. My decision to overweight the health care sector was rewarded, as the sector was one of the best-performing groups for the period. While there were no material improvements in the sector's fundamental credit outlook, valuations generally rose relative to other higher-quality sectors, because investors had a robust appetite for higher-yielding bonds. Having more exposure than the index to bonds that were advance refunded during the period was another plus. The process raises a bond's credit rating by backing it with U.S. government securities, and also shortens its maturity, resulting in a higher valuation. The fund's underweighting in state-backed bonds also bolstered its performance versus the index. They generally lagged the benchmark. The fund's modest holdings in Puerto Rico bonds, which I significantly reduced by period end, detracted from the relative result.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Investment Changes (Unaudited)
Top Five Sectors as of December 31, 2014 | ||
| % of fund's | % of fund's net assets |
General Obligations | 25.0 | 22.9 |
Health Care | 21.3 | 22.8 |
Education | 14.7 | 14.9 |
Transportation | 10.4 | 10.7 |
Electric Utilities | 9.5 | 9.9 |
Weighted Average Maturity as of December 31, 2014 | ||
|
| 6 months ago |
Years | 5.5 | 5.4 |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Duration as of December 31, 2014 | ||
|
| 6 months ago |
Years | 6.1 | 6.6 |
Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. |
Quality Diversification (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | AAA 0.6% |
| ![]() | AAA 0.7% |
| ||
![]() | AA,A 83.7% |
| ![]() | AA,A 83.8% |
| ||
![]() | BBB 9.2% |
| ![]() | BBB 12.9% |
| ||
![]() | BB and Below 0.7% |
| ![]() | BB and Below 0.7% |
| ||
![]() | Not Rated 1.7% |
| ![]() | Not Rated 0.0% |
| ||
![]() | Short-Term |
| ![]() | Short-Term |
|
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Investments December 31, 2014
Showing Percentage of Net Assets
Municipal Bonds - 95.9% | ||||
| Principal Amount | Value | ||
Guam - 0.6% | ||||
Guam Int'l. Arpt. Auth. Rev. Series 2013 C: | ||||
5% 10/1/17 (c) | $ 600,000 | $ 653,712 | ||
6.25% 10/1/34 (c) | 700,000 | 846,118 | ||
Guam Pwr. Auth. Rev. Series 2012 A, 5% 10/1/24 (FSA Insured) | 900,000 | 1,071,981 | ||
| 2,571,811 | |||
Pennsylvania - 93.7% | ||||
Adams County Indl. Dev. Auth. Rev. (Gettysburg College Proj.) Series 2010, 5% 8/15/24 | 1,000,000 | 1,118,380 | ||
Allegheny County Series C: | ||||
5% 12/1/28 | 1,000,000 | 1,177,730 | ||
5% 12/1/30 | 1,365,000 | 1,594,798 | ||
Allegheny County Arpt. Auth. Rev.: | ||||
(Pittsburgh Int'l. Arpt. Proj.) Series B, 5% 1/1/16 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (c) | 2,545,000 | 2,657,005 | ||
Series 2006 B: | ||||
5% 1/1/21 (FGIC Insured) (c) | 3,190,000 | 3,665,246 | ||
5% 1/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) (c) | 1,650,000 | 1,914,050 | ||
Allegheny County Port Auth. Spl. Rev. 5% 3/1/17 | 2,000,000 | 2,161,460 | ||
Allegheny County Sanitation Auth. Swr. Rev.: | ||||
Series 2010, 5% 6/1/40 (FSA Insured) | 6,690,000 | 7,446,974 | ||
Series A, 5% 12/1/30 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,725,000 | 1,784,133 | ||
Annville-Cleona School District: | ||||
6% 3/1/28 | 80,000 | 80,573 | ||
6% 3/1/28 (Pre-Refunded to 3/1/15 @ 100) | 190,000 | 191,701 | ||
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. Bonds (FirstEnergy Nuclear Generation Corp. Proj.) Series 2008 A, 2.7%, tender 4/2/18 (b) | 4,000,000 | 4,058,360 | ||
Berks County Muni. Auth. Rev. Series 2012 A, 5% 11/1/40 | 3,590,000 | 3,976,428 | ||
Bethlehem Wtr. Auth. Rev. Series 2014: | ||||
5% 11/15/19 (Build America Mutual Assurance Insured) | 1,000,000 | 1,135,230 | ||
5% 11/15/20 (Build America Mutual Assurance Insured) | 1,000,000 | 1,145,980 | ||
Bucks County Cmnty. College Auth. College Bldg. Rev. 5% 6/15/28 | 250,000 | 279,598 | ||
Butler County Hosp. Auth. Hosp. Rev. (Butler Health Sys. Proj.) Series 2009 B, 7.125% 7/1/29 | 1,035,000 | 1,232,582 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Central Bradford Prog. Auth. Rev. Series 2011, 5.375% 12/1/41 | $ 2,000,000 | $ 2,255,560 | ||
Centre County Hosp. Auth. Rev. (Mount Nittany Med. Ctr. Proj.) Series 2011, 7% 11/15/46 | 2,000,000 | 2,396,440 | ||
Chambersburg Area School District: | ||||
Series 2007, 5.25% 3/1/26 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,000,000 | 2,059,140 | ||
5.25% 3/1/27 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,485,000 | 1,528,614 | ||
Commonwealth Fing. Auth. Rev. Series 2013 A2: | ||||
5% 6/1/24 | 800,000 | 925,600 | ||
5% 6/1/25 | 1,175,000 | 1,352,660 | ||
5% 6/1/26 | 1,250,000 | 1,433,575 | ||
5% 6/1/42 | 12,000,000 | 13,131,832 | ||
Cumberland County Muni. Auth. Rev. (Dickinson College Proj.) Series 2012: | ||||
5% 11/1/37 | 1,520,000 | 1,684,586 | ||
5% 11/1/42 | 3,000,000 | 3,296,760 | ||
Dauphin County Gen. Auth.: | ||||
(Pinnacle Health Sys. Proj.) Series 2009 A, 5.25% 6/1/17 | 3,000,000 | 3,195,150 | ||
5% 6/1/42 | 2,170,000 | 2,342,385 | ||
Delaware County Auth. College Rev. (Haverford College Proj.) Series 2010 A, 5% 11/15/31 | 4,090,000 | 4,579,941 | ||
Delaware County Auth. Univ. Rev.: | ||||
Series 2010, 5.25% 12/1/31 | 2,450,000 | 2,786,900 | ||
Series 2012: | ||||
5% 8/1/21 | 350,000 | 415,282 | ||
5% 8/1/22 | 300,000 | 358,965 | ||
Series 2014: | ||||
5% 8/1/23 | 1,050,000 | 1,272,075 | ||
5% 8/1/24 | 1,100,000 | 1,347,434 | ||
Doylestown Hosp. Auth. Hosp. Rev. Series 2013 A, 5% 7/1/27 | 2,500,000 | 2,700,800 | ||
East Stroudsburg Area School District: | ||||
Series 2007 A, 7.5% 9/1/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,169,440 | ||
Series 2014 A: | ||||
7.75% 9/1/27 | 225,000 | 263,297 | ||
7.75% 9/1/27 (Pre-Refunded to 9/1/17 @ 100) | 4,040,000 | 4,780,168 | ||
Series A, 7.75% 9/1/27 (Pre-Refunded to 9/1/17 @ 100) | 3,935,000 | 4,661,676 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Econ. Dev. Fin. Auth. Unemployment Compensation Rev. Series 2012 B, 5% 7/1/23 | $ 2,600,000 | $ 2,660,736 | ||
Erie County Hosp. Auth. Rev. (Saint Vincent Health Ctr. Proj.) Series 2010 A, 7% 7/1/27 | 2,750,000 | 2,984,988 | ||
Fox Chapel Area School District Series 2013: | ||||
4% 8/1/22 | 500,000 | 561,690 | ||
5% 8/1/31 | 3,080,000 | 3,575,972 | ||
5% 8/1/34 | 1,000,000 | 1,149,330 | ||
Franklin County Indl. Dev. Auth. (The Chambersburg Hosp. Proj.) Series 2010: | ||||
5.3% 7/1/30 | 1,770,000 | 1,991,657 | ||
5.375% 7/1/42 | 2,130,000 | 2,363,661 | ||
Geisinger Auth. Health Sys. Rev. Series 2014 A, 4% 6/1/41 | 2,000,000 | 2,019,960 | ||
Indiana County Hosp. Auth. Series 2014 A, 6% 6/1/39 | 1,625,000 | 1,840,053 | ||
Lancaster County Hosp. Auth. Health Ctr. Rev. (Masonic Homes Proj.) Series 2006, 5% 11/1/20 | 1,065,000 | 1,130,838 | ||
Lower Paxton Township Series 2014: | ||||
5% 4/1/40 | 3,420,000 | 3,885,291 | ||
5% 4/1/44 | 1,295,000 | 1,462,379 | ||
Luzerne County Indl. Dev. Auth. Wtr. Facilities Rev. (Pennsylvania-American Wtr. Co. Proj.) Series 2009, 5.5% 12/1/39 | 2,500,000 | 2,757,725 | ||
Lycoming County Auth. Health Sys. Rev. (Susquehanna Health Sys.) Series 2009 A, 5.5% 7/1/21 | 3,500,000 | 3,990,805 | ||
Mifflin County School District Series 2007: | ||||
7.5% 9/1/26 (XL Cap. Assurance, Inc. Insured) | 1,125,000 | 1,296,686 | ||
7.75% 9/1/30 (XL Cap. Assurance, Inc. Insured) | 1,175,000 | 1,353,941 | ||
Monroe County Hosp. Auth. Rev. (Pocono Med. Ctr. Proj.) Series 2012 A: | ||||
5% 1/1/32 | 1,400,000 | 1,541,904 | ||
5% 1/1/41 | 1,750,000 | 1,887,795 | ||
Monroeville Fin. Auth. UPMC Rev. Series 2012: | ||||
5% 2/15/26 | 1,500,000 | 1,822,725 | ||
5% 2/15/27 | 3,625,000 | 4,409,958 | ||
Montgomery County Higher Ed. & Health Auth. Hosp. Rev. (Abington Memorial Hosp. Proj.): | ||||
Series 2009 A, 5% 6/1/17 | 2,000,000 | 2,182,940 | ||
Series 2012 A: | ||||
5% 6/1/23 | 3,850,000 | 4,454,450 | ||
5% 6/1/24 | 1,500,000 | 1,721,370 | ||
Series A, 6% 6/1/16 (AMBAC Insured) | 1,000,000 | 1,074,290 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Montgomery County Higher Ed. & Health Auth. Rev.: | ||||
(Dickinson College Proj.) Series 2006 FF1, 5% 5/1/28 (CDC IXIS Finl. Guaranty Insured) | $ 900,000 | $ 934,002 | ||
Series 2014 A: | ||||
5% 10/1/26 | 1,000,000 | 1,112,330 | ||
5% 10/1/27 | 1,000,000 | 1,101,980 | ||
Mount Lebanon School District Series 2009 A, 5% 2/15/15 | 500,000 | 502,880 | ||
Northampton County Gen. Oblig. Series 2012 B: | ||||
5% 10/1/23 | 1,000,000 | 1,202,880 | ||
5% 10/1/25 | 2,500,000 | 2,981,650 | ||
Northampton County Gen. Purp. Auth. Hosp. Rev.: | ||||
(St. Luke's Hosp. Proj.) Series 2010 A, 5.25% 8/15/16 | 1,245,000 | 1,324,655 | ||
(St. Luke's Hosp. Proj.) Series 2010 A, 5.25% 8/15/18 | 1,450,000 | 1,629,931 | ||
Pennsylvania Econ. Dev. Auth. Governmental Lease (Forum Place Proj.) Series 2012: | ||||
5% 3/1/24 | 1,745,000 | 1,991,010 | ||
5% 3/1/25 | 3,255,000 | 3,695,825 | ||
Pennsylvania Econ. Dev. Fing. Auth. Health Sys. Rev. (Albert Einstein Med. Ctr. Proj.) Series 2009 A, 5.25% 10/15/15 | 2,000,000 | 2,056,420 | ||
Pennsylvania Econ. Dev. Fing. Auth. Solid Waste Disp. Rev. Bonds (Waste Mgmt., Inc. Proj.) Series 2009, 1.75%, tender 12/1/15 (b) | 4,000,000 | 4,046,040 | ||
Pennsylvania Gen. Oblig.: | ||||
First Series 2008, 5% 5/15/27 | 805,000 | 902,832 | ||
Second Series 2007 A, 5% 8/1/25 | 2,500,000 | 2,741,650 | ||
Second Series 2009, 5% 4/15/25 | 500,000 | 569,965 | ||
Series 2012, 5% 6/1/25 | 10,000,000 | 11,798,200 | ||
Series 2013, 5% 10/15/27 | 2,255,000 | 2,686,855 | ||
Pennsylvania Higher Edl. Facilities Auth. Rev.: | ||||
(Slippery Rock Univ. Proj.) Series 2007 A, 5% 7/1/39 (XL Cap. Assurance, Inc. Insured) | 2,500,000 | 2,514,475 | ||
(Thomas Jefferson Univ. Proj.) Series 2012: | ||||
5% 3/1/18 | 250,000 | 276,760 | ||
5% 3/1/20 | 300,000 | 345,756 | ||
5% 3/1/22 | 275,000 | 324,302 | ||
5% 3/1/23 | 585,000 | 683,169 | ||
5% 3/1/42 | 3,950,000 | 4,361,353 | ||
(Univ. of Pennsylvania Health Sys. Proj.): | ||||
Series 2005 A, 5% 8/15/17 (AMBAC Insured) | 3,000,000 | 3,083,550 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Pennsylvania Higher Edl. Facilities Auth. Rev.: - continued | ||||
(Univ. of Pennsylvania Health Sys. Proj.): - continued | ||||
Series 2009 A, 5.25% 8/15/22 | $ 2,655,000 | $ 3,078,685 | ||
Series 2011 A, 5.75% 8/15/41 | 4,980,000 | 5,837,606 | ||
First Series 2012: | ||||
5% 4/1/20 | 750,000 | 868,583 | ||
5% 4/1/21 | 500,000 | 585,920 | ||
5% 4/1/22 | 600,000 | 711,354 | ||
5% 4/1/23 | 800,000 | 942,032 | ||
5% 4/1/24 | 1,100,000 | 1,288,100 | ||
Series 2010 E, 5% 5/15/31 | 2,500,000 | 2,803,550 | ||
Series 2010: | ||||
5% 9/1/30 | 1,150,000 | 1,339,520 | ||
5% 9/1/31 | 1,025,000 | 1,190,937 | ||
Series 2011 A, 5% 9/1/41 | 2,000,000 | 2,241,020 | ||
Pennsylvania Pub. School Bldg. Auth. School Rev. (The School District of Harrisburg Proj.) Series 2014 B2: | ||||
5% 12/1/24 (Build America Mutual Assurance Insured) | 1,250,000 | 1,485,175 | ||
5% 12/1/25 (Build America Mutual Assurance Insured) | 1,250,000 | 1,475,700 | ||
5% 12/1/26 (Build America Mutual Assurance Insured) | 1,250,000 | 1,468,638 | ||
5% 12/1/27 (Build America Mutual Assurance Insured) | 1,010,000 | 1,184,760 | ||
Pennsylvania State Univ.: | ||||
Series 2005, 5% 9/1/29 | 1,550,000 | 1,591,556 | ||
Series 2008 A, 5% 8/15/29 | 3,945,000 | 4,331,176 | ||
Series 2010, 5% 3/1/40 | 4,385,000 | 4,973,029 | ||
Pennsylvania Tpk. Commission Oil Franchise Tax Rev. Series 2003 C, 5% 12/1/29 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 3,000,000 | 3,383,160 | ||
Pennsylvania Tpk. Commission Tpk. Rev.: | ||||
Series 2006 A: | ||||
5% 12/1/23 (AMBAC Insured) | 7,695,000 | 8,146,004 | ||
5% 12/1/25 (AMBAC Insured) | 4,345,000 | 4,593,360 | ||
5% 12/1/26 (AMBAC Insured) | 3,500,000 | 3,696,525 | ||
Series 2008 B1, 5.5% 6/1/33 | 4,000,000 | 4,433,160 | ||
Series 2008 C4, 6.25% 6/1/38 (Assured Guaranty Corp. Insured) | 2,000,000 | 2,278,940 | ||
Series 2013 A2, 0% 12/1/38 (a) | 2,500,000 | 2,391,875 | ||
Series 2014 A, 5% 12/1/31 | 865,000 | 1,005,796 | ||
Series 2014 A2, 0% 12/1/40 (a) | 5,500,000 | 3,822,170 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Philadelphia Gas Works Rev.: | ||||
(1975 Gen. Ordinance Proj.): | ||||
Eighteenth Series: | ||||
5.25% 8/1/17 (Assured Guaranty Corp. Insured) | $ 1,500,000 | $ 1,504,335 | ||
5.25% 8/1/19 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,002,790 | ||
5.25% 8/1/20 (Assured Guaranty Corp. Insured) | 1,000,000 | 1,002,780 | ||
Seventeenth Series, 5.375% 7/1/20 (FSA Insured) | 2,700,000 | 2,707,722 | ||
(1998 Gen. Ordinance Proj.): | ||||
Fifth Series A1: | ||||
5% 9/1/33 (FSA Insured) | 2,800,000 | 2,805,712 | ||
5.25% 9/1/17 (Assured Guaranty Corp. Insured) | 3,665,000 | 3,675,592 | ||
5.25% 9/1/18 (Assured Guaranty Corp. Insured) | 3,340,000 | 3,349,452 | ||
Ninth Series, 5.25% 8/1/40 | 8,665,000 | 9,814,672 | ||
Seventh Series, 5% 10/1/37 (AMBAC Insured) | 5,245,000 | 5,680,755 | ||
Series 1998 A, 5.25% 8/1/17 | 3,555,000 | 3,941,144 | ||
Philadelphia Gen. Oblig. Series 2008 A, 5.25% 12/15/32 (FSA Insured) | 6,000,000 | 6,742,800 | ||
Philadelphia Hospitals & Higher Ed. Facilities Auth. Health Systems Rev. (Jefferson Health Sys. Proj.) Series 2010 B, 5.25% 5/15/30 (Pre-Refunded to 5/15/20 @ 100) | 4,000,000 | 4,758,080 | ||
Philadelphia Hospitals & Higher Ed. Facilities Auth. Hosp. Rev. (Children's Hosp. of Philadelphia Proj.) Series 2011 D, 5% 7/1/32 | 2,500,000 | 2,838,425 | ||
Philadelphia Redev. Auth. Rev.: | ||||
(Philadelphia Neighborhood Transformation Initiative Proj.) Series 2005 C, 5% 4/15/31 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,000,000 | 1,007,360 | ||
Series 2012: | ||||
5% 4/15/21 | 1,000,000 | 1,136,850 | ||
5% 4/15/25 | 2,230,000 | 2,497,801 | ||
Philadelphia School District: | ||||
Series 2005 A, 5% 8/1/22 | 2,775,000 | 2,836,411 | ||
Series 2005 D, 5.5% 6/1/16 (FSA Insured) | 2,030,000 | 2,167,248 | ||
Series 2010 C, 5% 9/1/21 | 4,000,000 | 4,533,000 | ||
5% 8/1/22 (Pre-Refunded to 8/1/15 @ 100) | 125,000 | 128,399 | ||
Philadelphia Wtr. & Wastewtr. Rev.: | ||||
Series 2010 C, 5% 8/1/40 (FSA Insured) | 4,000,000 | 4,418,240 | ||
Series 2011 A, 5% 1/1/41 | 2,715,000 | 2,982,400 | ||
Pittsburgh & Allegheny County Sports & Exhibition Auth. Series 2012, 5% 2/1/25 (FSA Insured) | 2,250,000 | 2,562,458 | ||
Pittsburgh Gen. Oblig.: | ||||
Series 2012 A, 5% 9/1/22 | 2,000,000 | 2,366,100 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
Pittsburgh Gen. Oblig.: - continued | ||||
Series 2014: | ||||
5% 9/1/23 (Build America Mutual Assurance Insured) | $ 575,000 | $ 686,211 | ||
5% 9/1/24 (Build America Mutual Assurance Insured) | 1,000,000 | 1,204,630 | ||
5% 9/1/28 (Build America Mutual Assurance Insured) | 1,300,000 | 1,534,364 | ||
5% 9/1/29 (Build America Mutual Assurance Insured) | 1,015,000 | 1,193,305 | ||
5% 9/1/31 (Build America Mutual Assurance Insured) | 1,165,000 | 1,358,973 | ||
5% 9/1/32 (Build America Mutual Assurance Insured) | 1,000,000 | 1,161,950 | ||
Pittsburgh School District: | ||||
Series 2012 A, 5% 9/1/21 (FSA Insured) | 4,000,000 | 4,662,600 | ||
Series 2014 A, 5% 9/1/23 | 1,000,000 | 1,179,220 | ||
South Fork Muni. Auth. Hosp. Rev. (Conemaugh Health Sys. Proj.) Series 2010, 5.25% 7/1/23 (Pre-Refunded to 7/1/20 @ 100) | 1,000,000 | 1,196,780 | ||
Southcentral Pennsylvania Gen. Auth. Rev.: | ||||
6% 6/1/25 | 1,080,000 | 1,234,818 | ||
6% 6/1/25 (Pre-Refunded to 6/1/18 @ 100) | 1,420,000 | 1,653,817 | ||
Southeastern Pennsylvania Trans. Auth. Rev. Series 2010, 5% 3/1/16 | 1,500,000 | 1,579,275 | ||
State Pub. School Bldg. Auth. College Rev.: | ||||
(Delaware County Cmnty. College Proj.) Series 2008, 5% 10/1/20 (FSA Insured) | 1,000,000 | 1,114,160 | ||
(Montgomery County Cmnty. College Proj.) Series 2008: | ||||
5% 5/1/27 (FSA Insured) | 1,775,000 | 1,952,962 | ||
5% 5/1/28 (FSA Insured) | 1,000,000 | 1,098,230 | ||
Univ. of Pittsburgh Commonwealth Sys. of Higher Ed. (Univ. Cap. Proj.): | ||||
Series 2000 B, 5.25% 9/15/34 | 2,000,000 | 2,293,520 | ||
Series 2000 C, 5% 9/15/35 | 2,000,000 | 2,253,020 | ||
Series 2007 B, 5.25% 9/15/28 | 2,500,000 | 2,903,425 | ||
Series 2009 B: | ||||
5% 9/15/28 | 2,000,000 | 2,286,820 | ||
5.5% 9/15/24 | 5,250,000 | 6,174,788 | ||
West Shore Area Auth. Hosp. Rev.: | ||||
(Holy Spirit Hosp. Charity Proj.) Series 2011 B, 6% 1/1/28 | 7,375,000 | 8,714,226 | ||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Pennsylvania - continued | ||||
West Shore Area Auth. Hosp. Rev.: - continued | ||||
Series 2011 B, 5.75% 1/1/41 | $ 1,500,000 | $ 1,698,630 | ||
Westmoreland County Indl. Dev. Auth. Rev. (Excela Health Proj.) Series 2010 A: | ||||
5% 7/1/19 | 1,000,000 | 1,096,120 | ||
5% 7/1/25 | 4,465,000 | 5,014,418 | ||
5.25% 7/1/20 | 1,000,000 | 1,112,500 | ||
Westmoreland County Muni. Auth. Muni. Svc. Rev. Series 2001 A: | ||||
0% 8/15/19 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 5,000,000 | 4,518,350 | ||
0% 8/15/20 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 2,500,000 | 2,164,025 | ||
0% 8/15/22 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 6,550,000 | 5,214,324 | ||
Wilson School District Series 2007, 5.25% 6/1/25 (XL Cap. Assurance, Inc. Insured) | 5,740,000 | 5,960,244 | ||
| 424,372,684 | |||
Pennsylvania, New Jersey - 1.6% | ||||
Delaware River Joint Toll Bridge Commission Pennsylvania-New Jersey Bridge Rev.: | ||||
Series 2012 A: | ||||
5% 7/1/22 | 500,000 | 594,245 | ||
5% 7/1/23 | 1,000,000 | 1,180,940 | ||
Series A, 5% 7/1/27 (Nat'l. Pub. Fin. Guarantee Corp. Insured) | 1,425,000 | 1,548,092 | ||
Delaware River Port Auth. Pennsylvania & New Jersey Rev. Series 2010 D, 5% 1/1/30 | 3,500,000 | 3,876,635 | ||
| 7,199,912 | |||
Municipal Bonds - continued | ||||
| Principal Amount | Value | ||
Puerto Rico - 0.0% | ||||
Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev. Series 2011 C, 0% 8/1/41 | $ 1,200,000 | $ 162,852 |
TOTAL INVESTMENT PORTFOLIO - 95.9% (Cost $408,231,639) | 434,307,259 | ||
NET OTHER ASSETS (LIABILITIES) - 4.1% | 18,538,117 | ||
NET ASSETS - 100% | $ 452,845,376 |
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) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(c) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
Other Information |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
The distribution of municipal securities by revenue source, as a percentage of total net assets, is as follows (Unaudited): |
General Obligations | 25.0% |
Health Care | 21.3% |
Education | 14.7% |
Transportation | 10.4% |
Electric Utilities | 9.5% |
Water & Sewer | 6.4% |
Others* (Individually Less Than 5%) | 12.7% |
| 100.0% |
* Includes net other assets |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2014 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $408,231,639) |
| $ 434,307,259 |
Cash |
| 13,779,484 |
Receivable for fund shares sold | 313,721 | |
Interest receivable | 5,332,341 | |
Prepaid expenses | 978 | |
Other receivables | 1,145 | |
Total assets | 453,734,928 | |
|
|
|
Liabilities | ||
Payable for fund shares redeemed | $ 184,437 | |
Distributions payable | 446,621 | |
Accrued management fee | 135,716 | |
Transfer agent fee payable | 59,721 | |
Other affiliated payables | 19,682 | |
Other payables and accrued expenses | 43,375 | |
Total liabilities | 889,552 | |
|
|
|
Net Assets | $ 452,845,376 | |
Net Assets consist of: |
| |
Paid in capital | $ 426,176,918 | |
Undistributed net investment income | 79,034 | |
Accumulated undistributed net realized gain (loss) on investments | 513,804 | |
Net unrealized appreciation (depreciation) on investments | 26,075,620 | |
Net Assets, for 39,926,277 shares outstanding | $ 452,845,376 | |
Net Asset Value, offering price and redemption price per share ($452,845,376 ÷ 39,926,277 shares) | $ 11.34 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended December 31, 2014 | |
Investment Income |
|
|
Interest |
| $ 16,472,523 |
|
|
|
Expenses | ||
Management fee | $ 1,551,240 | |
Transfer agent fees | 347,561 | |
Accounting fees and expenses | 111,219 | |
Custodian fees and expenses | 7,779 | |
Independent trustees' compensation | 1,898 | |
Registration fees | 20,566 | |
Audit | 54,418 | |
Legal | 1,132 | |
Miscellaneous | 2,922 | |
Total expenses before reductions | 2,098,735 | |
Expense reductions | (2,908) | 2,095,827 |
Net investment income (loss) | 14,376,696 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 1,057,971 |
Change in net unrealized appreciation (depreciation) on investment securities | 22,459,211 | |
Net gain (loss) | 23,517,182 | |
Net increase (decrease) in net assets resulting from operations | $ 37,893,878 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 14,376,696 | $ 15,124,716 |
Net realized gain (loss) | 1,057,971 | 3,170,536 |
Change in net unrealized appreciation (depreciation) | 22,459,211 | (30,930,637) |
Net increase (decrease) in net assets resulting | 37,893,878 | (12,635,385) |
Distributions to shareholders from net investment income | (14,353,300) | (15,129,379) |
Distributions to shareholders from net realized gain | (1,709,135) | (1,764,369) |
Total distributions | (16,062,435) | (16,893,748) |
Share transactions | 66,661,279 | 85,032,725 |
Reinvestment of distributions | 10,533,633 | 11,170,075 |
Cost of shares redeemed | (50,675,621) | (149,805,023) |
Net increase (decrease) in net assets resulting from share transactions | 26,519,291 | (53,602,223) |
Redemption fees | 1,247 | 2,282 |
Total increase (decrease) in net assets | 48,351,981 | (83,129,074) |
|
|
|
Net Assets | ||
Beginning of period | 404,493,395 | 487,622,469 |
End of period (including undistributed net investment income of $79,034 and undistributed net investment income of $49,121, respectively) | $ 452,845,376 | $ 404,493,395 |
Other Information Shares | ||
Sold | 5,969,587 | 7,665,675 |
Issued in reinvestment of distributions | 943,284 | 1,011,043 |
Redeemed | (4,552,031) | (13,625,413) |
Net increase (decrease) | 2,360,840 | (4,948,695) |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 10.77 | $ 11.47 | $ 11.10 | $ 10.51 | $ 10.78 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) B | .373 | .370 | .387 | .415 | .418 |
Net realized and unrealized gain (loss) | .615 | (.654) | .395 | .590 | (.197) |
Total from investment operations | .988 | (.284) | .782 | 1.005 | .221 |
Distributions from net investment income | (.373) | (.370) | (.386) | (.415) | (.418) |
Distributions from net realized gain | (.045) | (.046) | (.026) | - | (.073) |
Total distributions | (.418) | (.416) | (.412) | (.415) | (.491) |
Redemption fees added to paid in capital B, D | - | - | - | - | - |
Net asset value, end of period | $ 11.34 | $ 10.77 | $ 11.47 | $ 11.10 | $ 10.51 |
Total Return A | 9.30% | (2.50)% | 7.13% | 9.76% | 2.02% |
Ratios to Average Net Assets C |
|
|
|
|
|
Expenses before reductions | .49% | .49% | .49% | .50% | .50% |
Expenses net of fee waivers, if any | .49% | .49% | .49% | .50% | .50% |
Expenses net of all reductions | .49% | .49% | .48% | .50% | .50% |
Net investment income (loss) | 3.35% | 3.33% | 3.40% | 3.87% | 3.85% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 452,845 | $ 404,493 | $ 487,622 | $ 424,693 | $ 430,961 |
Portfolio turnover rate | 12% | 9% | 16% | 12% | 19% |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Investment Changes/Performance (Unaudited)
Effective Maturity Diversification | |||
Days | % of fund's | % of fund's | % of fund's |
1 - 7 | 78.7 | 86.1 | 88.7 |
8 - 30 | 0.6 | 2.8 | 0.5 |
31 - 60 | 2.7 | 1.8 | 2.9 |
61 - 90 | 0.0 | 3.5 | 0.0 |
91 - 180 | 5.7 | 1.4 | 1.3 |
> 180 | 12.3 | 4.4 | 6.6 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940. |
Weighted Average Maturity | |||
| 12/31/14 | 6/30/14 | 12/31/13 |
Fidelity Pennsylvania Municipal Money Market Fund | 38 Days | 26 Days | 22 Days |
Pennsylvania Tax-Free Money | 32 Days | 33 Days | 22 Days |
This is a weighted average of all the maturities of the securities held in a fund. Weighted Average Maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM. |
Weighted Average Life | |||
| 12/31/14 | 6/30/14 | 12/31/13 |
Fidelity Pennsylvania Municipal Money Market Fund | 38 Days | 26 Days | 22 Days |
Weighted Average Life (WAL) is the weighted average of the life of the securities held in a fund or portfolio and can be used as a measure of sensitivity to changes in liquidity and/or credit risk. Generally, the higher the value, the greater the sensitivity. WAL is based on the dollar-weighted average length of time until principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. The difference between WAM and WAL is that WAM takes into account interest rate resets and WAL does not. WAL for money market funds is not the same as WAL of a mortgage- or asset-backed security. |
* Source: iMoneyNet, Inc. |
Asset Allocation (% of fund's net assets) | |||||||
As of December 31, 2014 | As of June 30, 2014 | ||||||
![]() | Variable Rate |
| ![]() | Variable Rate |
| ||
![]() | Other |
| ![]() | Other |
| ||
![]() | Investment |
| ![]() | Investment |
| ||
![]() | Net Other Assets (Liabilities) 2.5% |
| ![]() | Net Other Assets (Liabilities) 0.1% |
|
Current and Historical Seven-Day Yields
| 12/31/14 | 9/30/14 | 6/30/14 | 3/31/14 | 12/31/13 |
Fidelity Pennsylvania | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it's possible to lose money investing in the Fund. A portion of the Fund's expenses was reimbursed and/or waived. Absent such reimbursements and/or waivers the yield for the period ending December 31, 2014, the most recent period shown in the table, would have been -0.43%.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Investments December 31, 2014
Showing Percentage of Net Assets
Variable Rate Demand Note - 67.5% | |||
Principal Amount | Value | ||
Alabama - 0.1% | |||
Decatur Indl. Dev. Board Exempt Facilities Rev. (Nucor Steel Decatur LLC Proj.) Series 2003 A, 0.24% 1/7/15, VRDN (b)(e) | $ 400,000 | $ 400,000 | |
District Of Columbia - 0.1% | |||
District of Columbia Rev. (American Psychological Assoc. Proj.) Series 2003, 0.1% 1/7/15, LOC Bank of America NA, VRDN (b) | 800,000 | 800,000 | |
Florida - 0.4% | |||
Collier County Hsg. Fin. Auth. Multi-family Rev. (George Washington Carver Apts. Proj.) Series 2005, 0.12% 1/7/15, LOC PNC Bank NA, VRDN (b)(e) | 3,230,000 | 3,230,000 | |
Georgia - 0.1% | |||
Coweta County Dev. Auth. Rev. (W. Y. Industries, Inc. Proj.) Series 2007, 0.19% 1/7/15, LOC Wells Fargo Bank NA, VRDN (b)(e) | 655,000 | 655,000 | |
Iowa - 0.4% | |||
Iowa Fin. Auth. Poll. Cont. Facility Rev. (MidAmerican Energy Proj.) Series 2008 B, 0.08% 1/7/15, VRDN (b) | 3,200,000 | 3,200,000 | |
Louisiana - 0.1% | |||
Saint James Parish Gen. Oblig. (Nucor Steel Louisiana LLC Proj.): | |||
Series 2010 A1, 0.22% 1/7/15, VRDN (b) | 300,000 | 300,000 | |
Series 2010 B1, 0.2% 1/7/15, VRDN (b) | 780,000 | 780,000 | |
| 1,080,000 | ||
Nebraska - 0.1% | |||
Stanton County Indl. Dev. Rev. (Nucor Corp. Proj.) Series 1996, 0.24% 1/7/15, VRDN (b)(e) | 400,000 | 400,000 | |
New Jersey - 0.4% | |||
JPMorgan Chase NA Letter of Credit Participating VRDN: | |||
Series Putters 4459, 0.04% 1/2/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 1,600,000 | 1,600,000 | |
Series Putters 4462, 0.04% 1/2/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 1,200,000 | 1,200,000 | |
Salem County Poll. Cont. Fin. Auth. Rev. (Pub. Svc. Elec. and Gas Co. Proj.) Series 2012 A, 0.18% 1/7/15, VRDN (b)(e) | 300,000 | 300,000 | |
| 3,100,000 | ||
Pennsylvania, New Jersey - 1.0% | |||
Delaware River Port Auth. Pennsylvania & New Jersey Rev. Series 2010 B, 0.03% 1/7/15, LOC Barclays Bank PLC, VRDN (b) | 7,700,000 | 7,700,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
New York - 0.0% | |||
Dutchess County Indl. Dev. Agcy. Civic Facility Rev. (Lutheran Ctr. at Poughkeepsie, Inc. Proj.) 0.11% 1/7/15, LOC KeyBank NA, VRDN (b) | $ 100,000 | $ 100,000 | |
North Carolina - 0.3% | |||
Parson County Indl. Facilities and Poll. Cont. Fing. Auth. (CertainTeed Gypsum NC, Inc. Proj.) Series 2010, 0.06% 1/7/15, LOC Cr. Industriel et Commercial, VRDN (b) | 2,200,000 | 2,200,000 | |
Pennsylvania - 64.3% | |||
Allegheny County Hosp. Dev. Auth. Rev.: | |||
(Children's Institute Pittsburgh Proj.) Series 2005 A, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 3,165,000 | 3,165,000 | |
(Jefferson Reg'l. Med. Ctr.) Series 2010 A, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 8,305,000 | 8,305,000 | |
(South Hills Health Sys. Proj.) Series 2000 A, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 4,200,000 | 4,200,000 | |
Allegheny County Indl. Dev. Auth. Health Care Rev. (Vincentian Collaborative Sys. Proj.) Series 2008 A, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 2,600,000 | 2,600,000 | |
Allegheny County Indl. Dev. Auth. Rev.: | |||
(The Watson Institute Friendship Academy Proj.) Series 2010, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 3,530,000 | 3,530,000 | |
(Union Elec. Steel Co. Proj.) Series 1996 A, 0.09% 1/7/15, LOC PNC Bank NA, VRDN (b)(e) | 3,120,000 | 3,120,000 | |
(United Jewish Federation Proj.) Series 1996 A, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 4,175,000 | 4,175,000 | |
BB&T Muni. Trust Participating VRDN Series BBT 08 1, 0.05% 1/7/15 (Liquidity Facility Branch Banking & Trust Co.) (b)(f) | 2,000,000 | 2,000,000 | |
Beaver County Indl. Dev. Auth. Poll. Cont. Rev. (FirstEnergy Nuclear Generation Corp. Proj.): | |||
Series 2008 B, 0.04% 1/2/15, LOC Bank of Nova Scotia, VRDN (b) | 2,200,000 | 2,200,000 | |
Seris 2008 C, 0.03% 1/2/15, LOC Bank of Nova Scotia, VRDN (b)(e) | 9,200,000 | 9,200,000 | |
Bucks County Indl. Dev. Auth. Hosp. Rev. (Grand View Hosp. Proj.) Series 2008 A, 0.03% 1/7/15, LOC TD Banknorth, NA, VRDN (b) | 7,680,000 | 7,680,000 | |
Bucks County Indl. Dev. Auth. Rev.: | |||
(Lutheran Cmnty. at Telford Healthcare Ctr., Inc. Proj.) Series 2007 B, 0.24% 1/7/15, LOC Citizens Bank of Pennsylvania, VRDN (b) | 3,500,000 | 3,500,000 | |
(Snowball Real Estate LP Proj.) 0.24% 1/7/15, LOC Wells Fargo Bank NA, VRDN (b)(e) | 1,110,000 | 1,110,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Cambria County Indl. Dev. Auth. Rev. (American Nat'l. Red Cross Proj.) Series 2008, 0.04% 1/7/15, LOC JPMorgan Chase Bank, VRDN (b) | $ 400,000 | $ 400,000 | |
Cap. Region Wtr. Swr. Rev. Series 2014 B, 0.04% 1/7/15, LOC Manufacturers & Traders Trust Co., VRDN (b) | 14,600,000 | 14,600,000 | |
Chester County Health & Ed. Auth. Rev. 0.04% 1/7/15, LOC Manufacturers & Traders Trust Co., VRDN (b) | 7,600,000 | 7,600,000 | |
Chester County Intermediate Unit Rev. Series 2003, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 2,045,000 | 2,045,000 | |
Crawford County Indl. Dev. Auth. College Rev. (Allegheny College Proj.) Series 2009 B, 0.05% 1/7/15, LOC PNC Bank NA, VRDN (b) | 2,000,000 | 2,000,000 | |
Cumberland County Muni. Auth. Rev.: | |||
(Diakon Lutheran Social Ministries Proj.) Series 2014 B, 0.04% 1/7/15, LOC Manufacturers & Traders Trust Co., VRDN (b) | 7,455,000 | 7,455,000 | |
(Presbyterian Homes Proj.) Series 2008 B, 0.03% 1/7/15, LOC Bank of America NA, VRDN (b) | 9,300,000 | 9,300,000 | |
Delaware County Indl. Dev. Auth. Rev.: | |||
(Covanta Energy Proj.) Series 2014 A, 0.06% 1/7/15, LOC Bank of America NA, VRDN (a)(b) | 2,960,000 | 2,960,000 | |
(The Agnes Irwin School Proj.) Series 2003, 0.35% 1/7/15, LOC Citizens Bank of Pennsylvania, VRDN (b) | 8,120,000 | 8,120,000 | |
Series 2013 A, 0.06% 1/7/15, LOC Bank of America NA, VRDN (b) | 7,235,000 | 7,235,000 | |
Econ. Dev. Fin. Auth. Unemployment Compensation Rev. Series 2012 C, 0.03% 1/7/15, LOC PNC Bank NA, VRDN (b) | 2,000,000 | 2,000,000 | |
Erie County Hosp. Auth. Rev. (Saint Vincent Health Ctr. Proj.) Series 2010 B, 0.06% 1/7/15, LOC Manufacturers & Traders Trust Co., VRDN (b) | 12,900,000 | 12,900,000 | |
Geisinger Auth. Health Sys. Rev. Participating VRDN: | |||
Series Putters 3446, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 6,600,000 | 6,600,000 | |
Series Putters 3915 Z, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 6,285,000 | 6,285,000 | |
Series Putters 4463Z, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 2,785,000 | 2,785,000 | |
Haverford Township School District Series 2009, 0.04% 1/7/15, LOC TD Banknorth, NA, VRDN (b) | 9,250,000 | 9,250,000 | |
Lower Merion School District Series 2009 B, 0.04% 1/7/15, LOC U.S. Bank NA, Cincinnati, VRDN (b) | 9,855,000 | 9,855,000 | |
Luzerne County Convention Ctr. Series 2012, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 2,205,000 | 2,205,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Montgomery County Redev. Auth. Multi-family Hsg. Rev. (Kingswood Apts. Proj.) Series 2001 A, 0.04% 1/7/15, LOC Fannie Mae, VRDN (b) | $ 12,675,000 | $ 12,675,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Exempt Facilities Rev. (Shippingport Proj.) Series 2002 A, 0.06% 1/2/15, LOC Bank of Nova Scotia, VRDN (b)(e) | 750,000 | 750,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Indl. Dev. Rev.: | |||
(Leidy's, Inc. Proj.) Series 1995 D7, 0.12% 1/7/15, LOC PNC Bank NA, VRDN (b)(e) | 600,000 | 600,000 | |
Series 2002 B5, 0.09% 1/7/15, LOC PNC Bank NA, VRDN (b)(e) | 4,300,000 | 4,300,000 | |
Series 2004 B, 0.05% 1/7/15, LOC PNC Bank NA, VRDN (b) | 1,300,000 | 1,300,000 | |
Pennsylvania Econ. Dev. Fing. Auth. Manufacturing Facility Rev. (Dodge Realty Partners Proj.) Series 2007, 0.09% 1/7/15, LOC Citibank NA, VRDN (b)(e) | 5,400,000 | 5,400,000 | |
Pennsylvania Gen. Oblig. Participating VRDN: | |||
Series MS 3382, 0.05% 1/7/15 (Liquidity Facility Morgan Stanley Bank, West Valley City Utah) (b)(f) | 5,000,000 | 5,000,000 | |
Series Putters 3352Z, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 4,215,000 | 4,215,000 | |
Series Putters 4014, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 3,000,000 | 3,000,000 | |
Series ROC II R 11505, 0.04% 1/7/15 (Liquidity Facility Citibank NA) (b)(f) | 11,000,000 | 11,000,000 | |
Series ROC II R 14070, 0.05% 1/7/15 (Liquidity Facility Citibank NA) (b)(f) | 8,000,000 | 8,000,000 | |
Pennsylvania Higher Edl. Facilities Auth. College & Univ. Revs. (St. Josephs Univ. Proj.) Series 2008 A, 0.02% 1/7/15, LOC TD Banknorth, NA, VRDN (b) | 11,800,000 | 11,800,000 | |
Pennsylvania Higher Edl. Facilities Auth. Rev.: | |||
(Drexel Univ. Proj.): | |||
Second Series, 0.03% 1/7/15, LOC JPMorgan Chase Bank, VRDN (b) | 13,415,000 | 13,415,000 | |
Series B, 0.03% 1/7/15, LOC JPMorgan Chase Bank, VRDN (b) | 2,755,000 | 2,755,000 | |
(Point Park College Proj.) 0.06% 1/7/15, LOC PNC Bank NA, VRDN (b) | 800,000 | 800,000 | |
(Univ. of Pennsylvania Health Sys. Proj.) Series 2008 A, 0.02% 1/7/15, LOC Bank of America NA, VRDN (b) | 19,655,000 | 19,655,000 | |
Participating VRDN: | |||
ROC II R 11721, 0.05% 1/7/15 (Liquidity Facility Citibank NA) (b)(f) | 7,500,000 | 7,500,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Pennsylvania Higher Edl. Facilities Auth. Rev.: - continued | |||
Participating VRDN: - continued | |||
Series MS 3252, 0.05% 1/7/15 (Liquidity Facility Morgan Stanley Bank, West Valley City Utah) (b)(f) | $ 5,840,000 | $ 5,840,000 | |
Pennsylvania Intergovernmental Coop. Auth. Spl. Tax Rev. Participating VRDN Series Putters 3481, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 5,035,000 | 5,035,000 | |
Pennsylvania State Pub. School Participating VRDN Series Solar 06 161, 0.04% 1/7/15 (Liquidity Facility U.S. Bank NA, Cincinnati) (b)(f) | 3,760,000 | 3,760,000 | |
Philadelphia Arpt. Rev.: | |||
Series 2005 C1, 0.04% 1/7/15, LOC TD Banknorth, NA, VRDN (b)(e) | 28,005,000 | 28,005,000 | |
Series 2005 C2, 0.04% 1/7/15, LOC Royal Bank of Canada, VRDN (b)(e) | 13,900,000 | 13,900,000 | |
Philadelphia Auth. For Indl. Dev. Participating VRDN Series Putters 4472, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 5,000,000 | 5,000,000 | |
Philadelphia Auth. for Indl. Dev. Rev.: | |||
(Spl. People in Northeast, Inc. Proj.) Series 2006, 0.4% 1/7/15, LOC Citizens Bank of Pennsylvania, VRDN (b) | 1,600,000 | 1,600,000 | |
(The Franklin Institute Proj.) Series 2006, 0.05% 1/7/15, LOC Bank of America NA, VRDN (b) | 8,700,000 | 8,700,000 | |
Philadelphia Auth. Indl. Dev. Lease Rev.: | |||
Series 2007 B2, 0.03% 1/7/15, LOC TD Banknorth, NA, VRDN (b) | 16,000,000 | 16,000,000 | |
Series 2007 B3, 0.03% 1/7/15, LOC PNC Bank NA, VRDN (b) | 13,975,000 | 13,975,000 | |
Philadelphia Gas Works Rev. (1998 Gen. Ordinance Proj.): | |||
Eighth Series B, 0.04% 1/7/15, LOC Wells Fargo Bank NA, VRDN (b) | 21,350,000 | 21,350,000 | |
Eighth Series C, 0.04% 1/7/15, LOC Barclays Bank PLC, VRDN (b) | 10,000,000 | 10,000,000 | |
Eighth Series D, 0.03% 1/7/15, LOC Royal Bank of Canada, VRDN (b) | 18,900,000 | 18,900,000 | |
Fifth Series A2, 0.06% 1/7/15, LOC JPMorgan Chase Bank, VRDN (b) | 9,450,000 | 9,450,000 | |
Philadelphia Gen. Oblig. Series 2009 B, 0.03% 1/7/15, LOC Bank of New York, New York, VRDN (b) | 3,450,000 | 3,450,000 | |
Philadelphia Hospitals & Higher Ed. Facilities Auth. Hosp. Rev. Participating VRDN Series Putters 3975, 0.05% 1/7/15 (Liquidity Facility JPMorgan Chase Bank) (b)(f) | 3,665,000 | 3,665,000 | |
Philadelphia Wtr. & Wastewtr. Rev. Series 1997 B, 0.03% 1/7/15, LOC TD Banknorth, NA, VRDN (b) | 7,900,000 | 7,900,000 | |
Variable Rate Demand Note - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Pittsburgh Wtr. & Swr. Auth. Wtr. & Swr. Sys. Rev. Series 2008 B1, 0.04% 1/7/15, LOC Bank of America NA, VRDN (b) | $ 12,300,000 | $ 12,300,000 | |
Ridley School District Series 2009, 0.04% 1/7/15, LOC TD Banknorth, NA, VRDN (b) | 4,240,000 | 4,240,000 | |
Washington County Auth. Rev. 0.04% 1/7/15, VRDN (b) | 7,280,000 | 7,280,000 | |
Washington County Hosp. Auth. Rev. (Monongahela Valley Hosp. Proj.) Series 2011 A, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 1,380,000 | 1,380,000 | |
Westmoreland County Indl. Dev. Auth. Rev. (Excela Health Proj.) Series 2010 B, 0.04% 1/7/15, LOC PNC Bank NA, VRDN (b) | 7,040,000 | 7,040,000 | |
| 489,315,000 | ||
Texas - 0.2% | |||
Gulf Coast Waste Disp. Auth. Solid Waste Disp. Rev. (Waste Mgmt., Inc. Proj.) Series A, 0.08% 1/7/15, LOC JPMorgan Chase Bank, VRDN (b)(e) | 300,000 | 300,000 | |
Port Arthur Navigation District Envir. Facilities Rev. (Motiva Enterprises LLC Proj.): | |||
Series 2001 A, 0.2% 1/2/15, VRDN (b) | 950,000 | 950,000 | |
Series 2004, 0.16% 1/7/15, VRDN (b)(e) | 200,000 | 200,000 | |
| 1,450,000 | ||
TOTAL VARIABLE RATE DEMAND NOTE (Cost $513,630,000) |
| ||
Other Municipal Debt - 21.7% | |||
|
|
|
|
Kentucky - 0.0% | |||
Jefferson County Poll. Cont. Rev. Bonds (Louisville Gas & Elec. Co. Proj.) Series 2001 A, 0.23% tender 1/8/15, CP mode | 200,000 | 200,000 | |
Massachusetts - 0.4% | |||
Massachusetts Dev. Fin. Agcy. Electrical Utils. Rev. Bonds (Nantucket Elec. Co. Proj.) 0.32% tender 1/26/15 (Massachusetts Elec. Co. Guaranteed), CP mode (e) | 1,000,000 | 1,000,000 | |
Massachusetts Indl. Fin. Agcy. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1992, 0.25% tender 1/26/15, CP mode | 1,800,000 | 1,800,000 | |
| 2,800,000 | ||
New Hampshire - 0.1% | |||
New Hampshire Bus. Fin. Auth. Poll. Cont. Rev. Bonds (New England Pwr. Co. Proj.) Series 1990 A2, 0.32% tender 1/28/15, CP mode (e) | 860,000 | 860,000 | |
Other Municipal Debt - continued | |||
Principal Amount | Value | ||
Pennsylvania - 21.1% | |||
Allegheny County Hosp. Dev. Auth. Rev. Bonds: | |||
(Pittsburgh Med. Ctr. Proj.) Series B, 5% 6/15/15 | $ 2,000,000 | $ 2,043,784 | |
Series 2003 B, 5.25% 6/15/15 | 1,620,000 | 1,657,640 | |
Series 2008 A, 5% 9/1/15 | 600,000 | 619,053 | |
Econ. Dev. Fin. Auth. Unemployment Compensation Rev. Bonds Series 2012 A: | |||
3% 1/1/15 | 4,740,000 | 4,740,000 | |
4% 7/1/15 | 14,820,000 | 15,105,746 | |
5% 7/1/15 | 10,555,000 | 10,809,742 | |
Pennsylvania Gen. Oblig. Bonds: | |||
Series 2002, 5.5% 2/1/15 | 3,000,000 | 3,013,630 | |
Series 2005 1, 5% 7/1/15 | 3,025,000 | 3,098,348 | |
Series 2005 2, 5% 1/1/16 (Pre-Refunded to 1/1/16 @ 100) | 4,000,000 | 4,188,359 | |
Series 2009 2, 5% 7/1/15 | 17,800,000 | 18,231,787 | |
Series 2010 3A, 5% 7/15/15 | 3,900,000 | 4,002,060 | |
Series 2010 A: | |||
5% 2/15/15 | 1,150,000 | 1,156,820 | |
5% 5/1/15 | 475,000 | 482,566 | |
Series 2012: | |||
5% 6/1/15 | 14,450,000 | 14,742,401 | |
5% 7/1/15 | 8,300,000 | 8,501,317 | |
Series 2014 1, 5% 6/15/15 | 7,200,000 | 7,358,448 | |
Series 2014, 5% 7/1/15 | 5,500,000 | 5,632,804 | |
5% 5/15/15 | 1,320,000 | 1,343,780 | |
5% 10/1/15 | 1,355,000 | 1,404,281 | |
Pennsylvania Higher Edl. Facilities Auth. Rev. Bonds Series WF 11 26C, 0.14%, tender 7/9/15 (Liquidity Facility Wells Fargo Bank NA) (b)(f)(h) | 5,000,000 | 5,000,000 | |
Philadelphia Arpt. Rev. Bonds Series 2010 D, 5% 6/15/15 (e) | 5,545,000 | 5,664,150 | |
Philadelphia Gen. Oblig. TRAN Series A, 1% 6/30/15 | 7,300,000 | 7,331,427 | |
Southcentral Pennsylvania Gen. Auth. Rev. Bonds Series 2014 A, 3% 6/1/15 | 2,340,000 | 2,367,954 | |
Univ. of Pittsburgh Commonwealth Sys. of Higher Ed.: | |||
BAN Series 2014, 2% 7/22/15 | 7,000,000 | 7,072,757 | |
Bonds: | |||
(Univ. Cap. Proj.) Series 2005 C: | |||
0.08% tender 2/5/15, CP mode | 7,300,000 | 7,300,000 | |
0.09% tender 1/6/15, CP mode | 2,000,000 | 2,000,000 | |
Series 2014 B1, 0.08% tender 2/17/15, CP mode | 3,650,000 | 3,650,000 | |
Other Municipal Debt - continued | |||
Principal Amount | Value | ||
Pennsylvania - continued | |||
Univ. of Pittsburgh Commonwealth Sys. of Higher Ed.: - continued | |||
Bonds: - continued | |||
Series 2014 B2, 0.08% tender 2/17/15, CP mode | $ 5,000,000 | $ 5,000,000 | |
York County Gen. Oblig. TRAN Series 2015, 1% 4/30/15 (g) | 6,645,000 | 6,664,136 | |
| 160,182,990 | ||
West Virginia - 0.1% | |||
Grant County Cmnty. Solid Waste Disp. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 1996, 0.32% tender 1/22/15, CP mode (e) | 200,000 | 200,000 | |
Grant County Poll. Cont. Rev. Bonds (Virginia Elec. & Pwr. Co. Proj.) Series 1986, 0.45% tender 1/15/15, CP mode (e) | 400,000 | 400,000 | |
| 600,000 | ||
TOTAL OTHER MUNICIPAL DEBT (Cost $164,642,990) |
| ||
Investment Company - 8.3% | |||
Shares |
| ||
Fidelity Municipal Cash Central Fund, 0.04% (c)(d) (Cost $63,042,800) | 63,042,800 |
| |
TOTAL INVESTMENT PORTFOLIO - 97.5% (Cost $741,315,790) | 741,315,790 | ||
NET OTHER ASSETS (LIABILITIES) - 2.5% | 19,151,666 | ||
NET ASSETS - 100% | $ 760,467,456 |
Security Type Abbreviations | ||
BAN | - | BOND ANTICIPATION NOTE |
CP | - | COMMERCIAL PAPER |
TRAN | - | TAX AND REVENUE ANTICIPATION NOTE |
VRDN | - | VARIABLE RATE DEMAND NOTE (A debt instrument that is payable upon demand, either daily, weekly or monthly) |
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 $2,960,000 or 0.4% of net assets. |
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
(c) Information in this report regarding holdings by state and security types does not reflect the holdings of the Fidelity Municipal Cash Central Fund. |
(d) 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. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
(e) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. |
(f) Provides evidence of ownership in one or more underlying municipal bonds. |
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(h) 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 $5,000,000 or 0.7% of net assets. |
Additional information on each restricted holding is as follows: |
Security | Acquisition Date | Cost |
Pennsylvania Higher Edl. Facilities Auth. Rev. Bonds Series WF 11 26C, 0.14%, tender 7/9/15 (Liquidity Facility Wells Fargo Bank NA) | 5/30/13 | $ 5,000,000 |
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 | $ 41,020 |
Other Information |
The date shown for securities represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets. |
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements
Statement of Assets and Liabilities
| December 31, 2014 | |
Assets | ||
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $678,272,990) | $ 678,272,990 |
|
Fidelity Central Funds (cost $63,042,800) | 63,042,800 |
|
Total Investments (cost $741,315,790) |
| $ 741,315,790 |
Cash |
| 22,053,351 |
Receivable for fund shares sold | 10,453,788 | |
Interest receivable | 2,073,971 | |
Distributions receivable from Fidelity Central Funds | 2,138 | |
Receivable from investment adviser for expense reductions | 3,094 | |
Other receivables | 1,413 | |
Total assets | 775,903,545 | |
|
|
|
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 6,664,357 | |
Payable for fund shares redeemed | 8,739,875 | |
Distributions payable | 366 | |
Accrued management fee | 31,260 | |
Other affiliated payables | 231 | |
Total liabilities | 15,436,089 | |
|
|
|
Net Assets | $ 760,467,456 | |
Net Assets consist of: |
| |
Paid in capital | $ 760,458,701 | |
Accumulated undistributed net realized gain (loss) on investments | 8,755 | |
Net Assets, for 760,247,924 shares outstanding | $ 760,467,456 | |
Net Asset Value, offering price and redemption price per share ($760,467,456 ÷ 760,247,924 shares) | $ 1.00 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Operations
| Year ended December 31, 2014 | |
Investment Income |
|
|
Interest |
| $ 520,881 |
Income from Fidelity Central Funds |
| 41,020 |
Total income |
| 561,901 |
|
|
|
Expenses | ||
Management fee | $ 3,705,229 | |
Independent trustees' compensation | 3,247 | |
Tax expense | 3,094 | |
Total expenses before reductions | 3,711,570 | |
Expense reductions | (3,223,934) | 487,636 |
Net investment income (loss) | 74,265 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities: |
|
|
Unaffiliated issuers |
| 40,805 |
Net increase in net assets resulting from operations | $ 115,070 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity Pennsylvania Municipal Money Market Fund
Financial Statements - continued
Statement of Changes in Net Assets
| Year ended | Year ended |
Increase (Decrease) in Net Assets |
|
|
Operations |
|
|
Net investment income (loss) | $ 74,265 | $ 77,919 |
Net realized gain (loss) | 40,805 | 14,650 |
Net increase in net assets resulting from operations | 115,070 | 92,569 |
Distributions to shareholders from net investment income | (74,125) | (78,107) |
Share transactions at net asset value of $1.00 per share | 1,863,275,499 | 1,970,739,620 |
Reinvestment of distributions | 70,651 | 75,597 |
Cost of shares redeemed | (1,892,615,443) | (1,969,619,379) |
Net increase (decrease) in net assets and shares resulting from share transactions | (29,269,293) | 1,195,838 |
Total increase (decrease) in net assets | (29,228,348) | 1,210,300 |
|
|
|
Net Assets | ||
Beginning of period | 789,695,804 | 788,485,504 |
End of period | $ 760,467,456 | $ 789,695,804 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended December 31, | 2014 | 2013 | 2012 | 2011 | 2010 |
Selected Per-Share Data |
|
|
|
|
|
Net asset value, beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Income from Investment Operations |
|
|
|
|
|
Net investment income (loss) D | - | - | - | - | - |
Distributions from net investment income D | - | - | - | - | - |
Net asset value, end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return A | .01% | .01% | .01% | .01% | .01% |
Ratios to Average Net Assets B, C |
|
|
|
|
|
Expenses before reductions | .50% | .50% | .50% | .50% | .50% |
Expenses net of fee waivers, if any | .07% | .11% | .18% | .22% | .30% |
Expenses net of all reductions | .07% | .11% | .18% | .22% | .30% |
Net investment income (loss) | .01% | .01% | .01% | .01% | .01% |
Supplemental Data |
|
|
|
|
|
Net assets, end of period (000 omitted) | $ 760,467 | $ 789,696 | $ 788,486 | $ 686,162 | $ 670,790 |
A Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
B Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed or waived or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements, waivers or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
D Amount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended December 31, 2014
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. Each Fund is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between funds. 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 generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds' Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but do not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
the financial statements. The following summarizes the significant accounting policies of the Funds:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Income Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Income Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
For the Income Fund, debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Municipal securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
For the Money Market Fund, as permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates fair value. The amortized cost of an instrument is determined by valuing it at its original
Annual Report
3. Significant Accounting Policies - continued
Investment Valuation - continued
cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.
For the Income Fund, changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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 per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and 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. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. During the period, the Money Market Fund incurred a corporate tax liability on undistributed long-term capital gain which is included in Tax expense on the Statement of Operations. As of December 31, 2014, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. 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. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, deferred trustees compensation and losses deferred due to 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 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 investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized | Gross unrealized | Net unrealized |
Fidelity Pennsylvania | $ 408,174,563 | $ 26,452,506 | $ (319,810) | $ 26,132,696 |
Fidelity Pennsylvania | 741,315,790 | - | - | - |
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| Undistributed | Undistributed long-term capital gain | Net unrealized |
Fidelity Pennsylvania Municipal | $ 22,292 | $ 513,804 | $ 26,132,696 |
Fidelity Pennsylvania Municipal | 3,498 | 5,483 | - |
The tax character of distributions paid was as follows:
December 31, 2014 | |||||
| Tax-Exempt | Ordinary Income | Long-term | Total | |
Fidelity Pennsylvania | $ 14,353,300 | $ 119,611 | $ 1,589,524 | $ 16,062,435 | |
Fidelity Pennsylvania | 74,125 | - | - | 74,125 | |
December 31, 2013 | |||||
| Tax-Exempt | Ordinary Income | Long-term | Total | |
Fidelity Pennsylvania | $ 15,129,379 | $ - | $ 1,764,369 | $ 16,893,748 | |
Fidelity Pennsylvania | 78,107 | - | - | 78,107 |
Short-Term Trading (Redemption) Fees. Shares held by investors in the Income Fund less than 30 days may be subject to a redemption fee equal to .50% of the NAV of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Funds transacted in 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. The securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable Fund's
Annual Report
Notes to Financial Statements - continued
3. Significant Accounting Policies - continued
Delayed Delivery Transactions and When-Issued Securities - continued
Schedule of Investments. The 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.
Restricted Securities. The 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.
New Accounting Pronouncement. In June 2014, the Financial Accounting Standards Board issued Accounting Standard Update No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The Update amends the accounting for certain repurchase agreements and expands disclosure requirements for reverse repurchase agreements, securities lending and other similar transactions. The disclosure requirements are effective for annual and interim reporting periods beginning after December 15, 2014. Management is currently evaluating the impact of the Update on the Funds' financial statements and related disclosures.
New Rule Issuance. In July 2014, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-9616, Money Market Fund Reform; Amendments to Form PF, which amends the rules governing money market funds. The final amendments impose different implementation dates for the changes that certain money market funds will need to make. Management is currently evaluating the implication of these amendments and their impact of the Final Rule to the Money Market Fund's financial statements and related disclosures.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, for the Income Fund aggregated $62,679,246 and $49,434,583, respectively.
Annual Report
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) 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 an annualized group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .36% of the Fund's average net assets.
Fidelity Management & Research Company (the investment adviser) and its affiliates provide 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. Under the management contract, the investment adviser pays all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee 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 servicing agent for the Funds. Citibank has entered into a sub-arrangement with Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, under which FIIOC performs the activities associated with the Funds' transfer agency, dividend disbursing and shareholder servicing functions. Under the terms of the management fee contract, the investment adviser pays transfer agent fees on behalf of the Money Market Fund. The Income Fund pays Citibank account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the Income Fund's transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity Pennsylvania Municipal Income Fund | .08% |
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, under which FSC maintains each Fund's accounting records. The fee is paid to Citibank and is based on the level of average net assets for each month.
Annual Report
Notes to Financial Statements - continued
6. Committed Line of Credit.
The Income Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 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 are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Fidelity Pennsylvania Municipal Income Fund | $ 679 |
During the period, the Income Fund did not borrow on this line of credit.
7. Expense Reductions.
The investment adviser or its affiliates voluntarily agreed to waive certain fees for the Money Market Fund in order to maintain a minimum annualized yield of .01%. Such arrangements may be discontinued by the investment adviser at any time. For the period, the amount of the waiver was $3,220,985.
Through arrangements with the Income Fund's custodian, 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 |
Fidelity Pennsylvania Municipal Income Fund | $ 2,426 | $ 482 |
In addition, through an arrangement with the Money Market Fund's custodian, $2,949 of credits realized as a result of uninvested cash balances were used to reduce the Fund's management fee.
8. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Municipal Trust and Fidelity Municipal Trust II and the Shareholders of Fidelity Pennsylvania Municipal Income Fund and Fidelity Pennsylvania Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Pennsylvania Municipal Income Fund (a fund of Fidelity Municipal Trust) and Fidelity Pennsylvania Municipal Money Market Fund (a fund of Fidelity Municipal Trust II) at December 31, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Pennsylvania Municipal Income Fund's and Fidelity Pennsylvania Municipal Money Market Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 13, 2015
Annual Report
Trustees and Officers
The Trustees and officers of the trusts and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for Elizabeth S. Acton, James C. Curvey, and John Engler, each of the Trustees oversees 233 funds. Ms. Acton and Mr. Engler each oversees 215 funds. Mr. Curvey oversees 407 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds (Independent Trustee), shall retire not later than the last day of the month in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Funds' Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Annual Report
Board Structure and Oversight Function. Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's investment-grade bond, money market, and asset allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. The Operations Committee also worked and continues to work with FMR to enhance the stress tests required under SEC regulations for money market funds. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Funds' Trustees."
Annual Report
Trustees and Officers - continued
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
James C. Curvey (1935) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Curvey also serves as Trustee of other Fidelity funds. Mr. Curvey is a Director of Fidelity Research & Analysis Co. (2009-present), and Vice Chairman (2007-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the board of Artis-Naples, Naples, Florida, and as a Trustee for Brewster Academy, Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Investments Money Management, Inc. (2009-2014), a Director of FMR (2007-2014), and a Director of FMR Co., Inc. (2007-2014). |
Abigail P. Johnson (1961) | |
Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees | |
| Ms. Johnson also serves as Trustee of other Fidelity funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC, President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc., and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related. |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trusts or various entities under common control with FMR.
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Annual Report
Trustees and Officers - continued
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ | |
Elizabeth S. Acton (1951) | |
Year of Election or Appointment: 2013 Trustee | |
| Ms. Acton also serves as Trustee or Member of the Advisory Board of other Fidelity funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). |
John Engler (1948) | |
Year of Election or Appointment: 2014 Trustee | |
| Mr. Engler also serves as Trustee or Member of the Advisory Board of other Fidelity funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors/trustees for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present), K12 Inc. (technology-based education company, 2012-present), and the Annie E. Casey Foundation (2004-present). Previously, Mr. Engler served as a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011) and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association. |
Albert R. Gamper, Jr. (1942) | |
Year of Election or Appointment: 2006 Trustee Chairman of the Independent Trustees | |
| Mr. Gamper also serves as Trustee of other Fidelity funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of certain Fidelity funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007). |
Robert F. Gartland (1951) | |
Year of Election or Appointment: 2010 Trustee | |
| Mr. Gartland also serves as Trustee of other Fidelity funds. Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007). |
Arthur E. Johnson (1947) | |
Year of Election or Appointment: 2008 Trustee | |
| Mr. Johnson also serves as Trustee of other Fidelity funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson. |
Michael E. Kenneally (1954) | |
Year of Election or Appointment: 2009 Trustee | |
| Mr. Kenneally also serves as Trustee of other Fidelity funds. Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity funds before joining the Board of Trustees (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991. |
James H. Keyes (1940) | |
Year of Election or Appointment: 2007 Trustee | |
| Mr. Keyes also serves as Trustee of other Fidelity funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008). |
Marie L. Knowles (1946) | |
Year of Election or Appointment: 2001 Trustee Vice Chairman of the Independent Trustees | |
| Ms. Knowles also serves as Trustee of other Fidelity funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). |
+ The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for each fund.
Officers:
Correspondence intended for each officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation | |
Elizabeth Paige Baumann (1968) | |
Year of Election or Appointment: 2012 Anti-Money Laundering (AML) Officer | |
| Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer of FMR LLC (2012-present) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy Anti-Money Laundering Officer (2007-2012). |
Robert P. Brown (1963) | |
Year of Election or Appointment: 2012 Vice President of Fidelity's Bond Funds | |
| Mr. Brown also serves as Vice President of other funds. Mr. Brown serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director, Research of Fidelity Management & Research (U.K.) Inc. (2008-present), and is an employee of Fidelity Investments. Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's Money Market Funds (2010-2012). |
Marc Bryant (1966) | |
Year of Election or Appointment: 2013 Assistant Secretary | |
| Mr. Bryant also serves as an officer of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC. Previously, Mr. Bryant served as Secretary and Chief Legal Officer of Fidelity Rutland Square Trust II (2010-2014). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
Jonathan Davis (1968) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (2003-2010). |
Adrien E. Deberghes (1967) | |
Year of Election or Appointment: 2010 Assistant Treasurer | |
| Mr. Deberghes also serves as an officer of other funds. He is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). |
Stephanie J. Dorsey (1969) | |
Year of Election or Appointment: 2013 President and Treasurer | |
| Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) | |
Year of Election or Appointment: 2014 Chief Financial Officer | |
| Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) | |
Year of Election or Appointment: 2008 Secretary and Chief Legal Officer (CLO) | |
| Mr. Goebel serves as Secretary and CLO of other funds. Mr. Goebel also serves as Secretary of Fidelity SelectCo, LLC (2013-present), Fidelity Investments Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present); General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present); and Assistant Secretary of Fidelity Management & Research (Japan) Limited (2008-present) and Fidelity Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Secretary and CLO of other Fidelity funds (2008-2013), Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). Mr. Goebel has been employed by FMR LLC or an affiliate since 2001. |
Chris Maher (1972) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of FMR's Program Management Group (2010-2013), and Vice President of Valuation Oversight (2008-2010). |
Nancy D. Prior (1967) | |
Year of Election or Appointment: 2014 Vice President | |
| Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of Fidelity Investments Money Management, Inc. (FIMM) (2014-present), President, Fixed Income (2014-present), Vice Chairman of Pyramis Global Advisors, LLC (2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond of FMR (2013-2014), President, Money Market Group of FMR (2011-2014), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of other Fidelity funds (2008-2009). |
Kenneth B. Robins (1969) | |
Year of Election or Appointment: 2009 Assistant Treasurer | |
| Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (2013-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served in other fund officer roles. |
Stephen Sadoski (1971) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Mr. Sadoski also serves as Deputy Treasurer of other funds. He is an employee of Fidelity Investments (2012-present) and has served in another fund officer role. Prior to joining Fidelity Investments, Mr. Sadoski served as an assistant chief accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and as a senior manager at Deloitte & Touche LLP (1997-2009). |
Stacie M. Smith (1974) | |
Year of Election or Appointment: 2013 Assistant Treasurer | |
| Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). |
Renee Stagnone (1975) | |
Year of Election or Appointment: 2013 Deputy Treasurer | |
| Ms. Stagnone also serves as Deputy Treasurer of other funds. Ms. Stagnone is an employee of Fidelity Investments. |
Michael H. Whitaker (1967) | |
Year of Election or Appointment: 2008 Chief Compliance Officer | |
| Mr. Whitaker also serves as Chief Compliance Officer of other funds. Mr. Whitaker also serves as Compliance Officer of FMR Co., Inc. (2014-present), FMR (2014-present), Fidelity Investments Money Management, Inc. (2014-present), and is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer (2004-2006), and Assistant General Counsel. |
Joseph F. Zambello (1957) | |
Year of Election or Appointment: 2011 Deputy Treasurer | |
| Mr. Zambello also serves as Deputy Treasurer of other funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent Oversight Group (2005-2009). |
Annual Report
Distributions (Unaudited)
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Fund | Pay Date | Record Date | Dividends | Capital Gains |
Fidelity Pennsylvania Municipal Income Fund | 02/06/15 | 02/09/15 | $0.000 | $0.017 |
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended December 31, 2014, or, if subsequently determined to be different, the net capital gain of such year.
Fund |
|
Fidelity Pennsylvania Municipal Income Fund | $1,051,453 |
Fidelity Pennsylvania Municipal Money Market Fund | $40,798 |
During fiscal year ended 2014, 100% of each fund's income dividends were free from federal income tax, and 1.62% of Fidelity Pennsylvania Municipal Income Fund and 14.87% of Fidelity Pennsylvania Municipal Money Market's income dividends were subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2015 of amounts for use in preparing 2014 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Pennsylvania Municipal Income Fund / Fidelity Pennsylvania Municipal Money Market Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the 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 relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board has established four standing committees (Committees) - Operations, Audit, Fair Valuation, and Governance and Nominating - each composed of and chaired by 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. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of each fund's Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint committees to discuss certain matters relevant to the Fidelity funds.
At its September 2014 meeting, the Board, including the Independent Trustees, unanimously determined to renew each fund's Advisory Contracts. 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 each fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with each fund; (iv) the extent to which economies of scale exist and 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. In connection with separate internal corporate reorganizations involving Fidelity Management & Research (U.K.) Inc. (FMR U.K.) and Fidelity Management & Research (Japan) Inc. (FMR Japan), the Board approved certain non-material amendments to the funds' sub-advisory agreements with FMR U.K. and FMR Japan to reflect that, after these reorganizations, FMR Investment Management (UK) Limited and Fidelity Management & Research (Japan) Limited will carry on the business of FMR U.K. and FMR Japan, respectively. The Board noted that no changes to the portfolio managers or to the foreign research or investment advisory services provided to the funds were expected in connection with either reorganization and that the same personnel and resources would continue to be available to the funds at the new entities.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
In considering whether to renew the Advisory Contracts for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that each fund's shareholders, who have 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, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the funds, including the backgrounds of investment personnel of Fidelity, and also considered the funds' investment objectives, strategies, and related investment philosophies. 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 to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board believes that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, and compliance capabilities and resources, which are integral parts of the investment management process.
Annual Report
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by FMR, the sub-advisers (together with FMR, 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 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 over time 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 telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
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 a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and to the support of the senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs for income-oriented solutions; (iv) reducing fund expenses for certain index funds; (v) continuing to launch dedicated lower cost underlying funds to meet portfolio construction needs related to expanding underlying fund options for Fidelity funds of funds, specifically for the Freedom Fund product lines; (vi) rationalizing product lines and gaining increased efficiencies through fund mergers; (vii) launching sector-based exchange-traded funds and establishing a new Fidelity adviser, Fidelity SelectCo, LLC, to manage sector-based funds and products; (viii) continuing to develop, acquire, and implement systems and technology to improve security and services to the funds and to increase efficiency; (ix) modifying the eligibility criteria for certain share classes to increase their marketability to a portion of the defined contribution plan market; (x) waiving redemption fees for certain qualified fund-of-fund and wrap programs and certain retirement plan transactions; and (xi) launching new Institutional Class shares of certain money market funds to attract and retain assets and to fill a gap in money market fund offerings.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Investment Performance (for Pennsylvania Municipal Income Fund). The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses) compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the potential for incremental return versus the fund's benchmark index weighed against the risks involved in obtaining that incremental return, including the risk of diminished or negative total returns; and fund cash flows and other factors. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods.
Investment Performance (for Fidelity Pennsylvania Municipal Money Market Fund). The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.
Annual Report
The Board took into account discussions with the Investment Advisers about fund investment performance that occur at Board meetings throughout the year. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board periodically considers annualized return information for the fund for different time periods, measured against a peer group of funds with similar objectives ("peer group"). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and the Investment Advisers' explanations for such underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses but after transaction costs) compared to appropriate peer groups, over appropriate time periods that may include full market cycles, taking into account relevant factors including the following: general market conditions; expectations for interest rate levels and credit conditions; issuer-specific information including credit quality; tactical opportunities for investment; the fund's market value NAV over time and its resilience under various stressed conditions; and fund cash flows and other factors.
The Board recognizes that in interest rate environments where many competitors waive fees to maintain a minimum yield, relative money market fund performance on a net basis (after fees and expenses) may not be particularly meaningful due to miniscule performance differences among competitor funds. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its peer group for certain periods.
The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for the fund and an appropriate peer group for the most recent one-, three-, and five-year periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should benefit each fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund's management fee and total expense ratio compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board's management fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Management Fee. 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 in terms of gross management fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). "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 hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds' actual TMG %s are in the charts below. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund's management fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, 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 rate ranked, is also included in the charts and considered by the Board. Because the vast majority of competitor funds' management fees do not cover non-management expenses, 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 fees paid to non-affiliated custodians) from the fund's all-inclusive fee. In this regard, the Board considered that net management fees can vary from year to year because of differences in non-management expenses.
Annual Report
Fidelity Pennsylvania Municipal Income Fund
The Board noted that the fund's management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2013.
Fidelity Pennsylvania Municipal Money Market Fund
The Board noted that the fund's hypothetical net management fee rate ranked below the median of its Total Mapped Group and below the median of its ASPG for 2013.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.
Total Expense Ratio. In its review of Fidelity Pennsylvania Municipal Income Fund's total expense ratio, 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 that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund.
In its review of Fidelity Pennsylvania Municipal Money Market Fund's total expense ratio, 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 that Fidelity may agree to waive fees and expenses from time to time, and the extent to which, if any, it has done so for the fund.
As part of its review, the Board also considered the current and historical total expense ratios 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 expense ratio ranked below its competitive median for 2013. The Board considered that Fidelity has been voluntarily waiving part or all of the management fees to maintain a minimum yield for Fidelity Pennsylvania Municipal Money Market Fund, and also noted that Fidelity retains the ability to be repaid in certain circumstances.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients. The Board noted the findings of the 2013 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was 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 servicing each fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
Annual Report
On an annual basis, Fidelity presents to the Board information about the profitability of its relationship with each fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. 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 Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of fund profitability and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and 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 was satisfied that the profitability was not excessive.
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 as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board also noted that in 2013, it and the boards of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
Annual 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 group assets increase, and for higher group fee rates as total group assets decrease (with "group assets" defined to include fund assets under FMR's management plus sector fund assets previously under FMR's management and currently managed by Fidelity SelectCo, LLC). FMR calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity 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 benefit from lower management fees as group assets increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
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 certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure and definition of group assets, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) the methodology with respect to competitive fund data and peer group classifications; (viii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes, and the impact of the increased use of omnibus accounts; and (ix) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain funds and classes or to achieve further economies of scale.
Annual Report
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
Fidelity Management & Research
(U.K.) Inc.
Fidelity Investments Money
Management, Inc.
Fidelity Management & Research
(Japan) Limited
Fidelity Management & Research
(Hong Kong) Limited
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
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®)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer St., Boston, MA 02210
www.fidelity.com
PFR-UANN-0215 1.787740.111
Item 2. Code of Ethics
As of the end of the period, December 31, 2014, Fidelity Municipal Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that James H. Keyes is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Keyes is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by PricewaterhouseCoopers LLP ("PwC") in each of the last two fiscal years for services rendered to Fidelity Conservative Income Municipal Bond Fund, Fidelity Limited Term Municipal Income Fund, Fidelity Michigan Municipal Income Fund, Fidelity Minnesota Municipal Income Fund, Fidelity Municipal Income Fund, Fidelity Ohio Municipal Income Fund and Fidelity Pennsylvania Municipal Income Fund (the "Funds"):
Services Billed by PwC
December 31, 2014 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Conservative Income Municipal Bond Fund | $40,000 | $- | $2,400 | $1,700 |
Fidelity Limited Term Municipal Income Fund | $49,000 | $- | $2,400 | $3,000 |
Fidelity Michigan Municipal Income Fund | $47,000 | $- | $2,400 | $1,900 |
Fidelity Minnesota Municipal Income Fund | $46,000 | $- | $2,400 | $1,900 |
Fidelity Municipal Income Fund | $65,000 | $- | $2,400 | $3,600 |
Fidelity Ohio Municipal Income Fund | $47,000 | $- | $2,400 | $1,900 |
Fidelity Pennsylvania Municipal Income Fund | $46,000 | $- | $2,400 | $1,800 |
December 31, 2013 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Conservative Income Municipal Bond Fund | $33,000 | $- | $2,300 | $200 |
Fidelity Limited Term Municipal Income Fund | $50,000 | $- | $2,300 | $3,000 |
Fidelity Michigan Municipal Income Fund | $47,000 | $- | $2,300 | $1,700 |
Fidelity Minnesota Municipal Income Fund | $47,000 | $- | $2,300 | $1,700 |
Fidelity Municipal Income Fund | $67,000 | $- | $2,300 | $3,800 |
Fidelity Ohio Municipal Income Fund | $47,000 | $- | $2,300 | $1,700 |
Fidelity Pennsylvania Municipal Income Fund | $47,000 | $- | $2,300 | $1,600 |
A Amounts may reflect rounding.
B Fidelity Conservative Income Municipal Bond Fund commenced operations on October 15, 2013.
The following table presents fees billed by PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds ("Fund Service Providers"):
Services Billed by PwC
| December 31, 2014A | December 31, 2013A,B |
Audit-Related Fees | $5,950,000 | $4,920,000 |
Tax Fees | $- | $- |
All Other Fees | $- | $50,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Conservative Income Municipal Bond Fund's commencement of operations.
"Audit-Related Fees" represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
"Tax Fees" represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
"All Other Fees" represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | December 31, 2014 A | December 31, 2013 A,B |
PwC | $8,135,000 | $5,550,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Conservative Income Municipal Bond Fund's commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the Funds, taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMR's review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust's Audit Committee must pre-approve all audit and non-audit services provided by a fund's independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund ("Covered Service") are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X ("De Minimis Exception")
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds' last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Municipal Trust
By: | /s/Stephanie J. Dorsey |
| Stephanie J. Dorsey |
| President and Treasurer |
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Date: | February 26, 2015 |
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/Stephanie J. Dorsey |
| Stephanie J. Dorsey |
| President and Treasurer |
|
|
Date: | February 26, 2015 |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
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Date: | February 26, 2015 |